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Monday 4 November 2024
Romance Scammer Who Took U.S. Citizens Hostage in the Dominican Republic Sentenced to 25 Years in PrisonRead the Press Release
WASHINGTON - Deivy Jose Rodriguez Delgado, 30, a Venezuelan national, was sentenced today in U.S. District Court for the District of Columbia to 25 years in federal prison for the 2022 armed hostage takings of three U.S. citizens in the Dominican Republic, announced U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge Jeffrey B. Veltri of the Miami Field Office.
On December 11, 2023, after a nearly two week trial, a jury convicted Delgado of one count of conspiracy to commit hostage taking and three counts of hostage taking. In addition to the prison sentence, U.S. District Court Chief Judge James E. Boasberg ordered Delgado to serve five years of supervised release. Following his release from prison, Delgado will be subject to deportation proceedings.
According to the government’s evidence, Delgado, also known as “Sebastian,” kidnapped three men in separate instances between July 5 and July 30, 2022. In each of the three hostage-takings, Delgado lured his victim online with the promise of a friendly “date” and picked the victim up in his car. After driving a short distance, Delgado suddenly stopped to let an accomplice into the backseat, at which point Delgado and his accomplice held the victim at knifepoint, physically restrained the victim, and demanded ransom for his release. Delgado ordered that the ransoms be paid to online banking accounts, including the same CashApp account.
Each of the three victims was forced at knifepoint to call his friends and family and ask for money to secure his release. The victims were held in captivity by Delgado and his accomplice(s) for up to an hour and were only released after Delgado believed a ransom payment had been made by the victims’ friends and family. In all three hostage takings, the victims were also robbed of their personal belongings before being released on the streets of the Dominican Republic.
Following multiple victim reports, Dominican authorities began an investigation in August 2022. Local law enforcement in the Dominican Republic traced a vehicle used in one of the hostage takings to Delgado and arrested him on Sept. 14, 2022. During a search of the vehicle, Dominican authorities found two serrated knifes like those used in the hostage takings.
This case was investigated by the FBI’s Miami Field Office with valuable assistance provided by the Justice Department’s Office of International Affairs and the Dominican Republic’s Division Especial de Investigacion de Crimen Organizado Internacional (DECROI). The case was prosecuted by Assistant U.S. Attorneys John Korba and Jolie Zimmerman of the U.S. Attorney’s Office for the District of Columbia with assistance from paralegal Michael Watts.
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Deivy Jose Rodriguez Delgado, 30, a Venezuelan national, used this image of himself to meet his victims on a social media dating application.
During a search of the vehicle linked to Delgado, Dominican authorities found two serrated knifes like those used in the hostage takings.
An image Delgado used on his social media app to lure victims.
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22cr0304
Rocky Hill Pharmacy and Its Owners Indicted for Conspiring to Submit False Pharmacy Claims, Making False Statements, and Aggravated Identity TheftRead the Press Release
KNOXVILLE, Tenn. - A federal grand jury in Knoxville returned an eight (8) count indictment on October 16, 2024, against Rocky Hill Pharmacy, LLC, and its co-owners, Anne Warren (“Warren”), 44, and Tiffany Haney (“Haney”), 41, both of Knoxville, Tennessee, for Conspiracy to Commit Healthcare Fraud, False Statements in Connection with Health Care Matters, and Aggravated Identity Theft. Warren and Haney appeared in court on November 1, 2024, before U.S. Magistrate Judge Jill E. McCook for an initial appearance. They were released pending trial, on a date to be set, in United States District Court, in Knoxville, Tennessee.
The indictment alleges that Warren and Haney altered or forged prescriptions in support of claims for reimbursement to various drug plans. The indictment also alleges that Warren and Haney made false statements and used the names and National Provider Identification (NPI) numbers of another person without lawful authority.
If convicted of Conspiracy to Commit Health Care Fraud (Count 1), Warren and Haney face a term of ten (10) years in prison, a fine of up to $250,000, and supervised release of up to three (3) years. If convicted of False Statements Relating to Health Care Matters (Counts 2 – 4), Warren and Haney face a term of five (5) years in prison, a fine of up to $250,000, and supervised release of up to one (1) year, and if convicted of Aggravated Identity Theft (Counts 5 – 8), Warren and Haney face a term of two (2) years in prison, a fine of up to $250,000, and supervised release of up to one year.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
This indictment is the result of an investigation by the Federal Bureau of Investigation, Health and Human Services – Office of Inspector General, the Department of Labor – Office of Inspector General, and the Tennessee Bureau of Investigation – Medicaid Fraud Control Division.
Assistant U.S. Attorney Jeremy S. Dykes will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Riverview Woman Pleads Guilty to Sending Threatening Messages to Palestinian AmericansRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that Andrea Rubiano (49, Riverview) pleaded guilty to transmitting a threat in interstate commerce and making false statements to a federal agent. Rubiano faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in October 2023, Rubiano sent threatening text messages to 12 Palestinian Americans residing in the Middle District of Florida. By way of example, one of the victims received the following messages from Rubiano:
Palestinians in Tampa must die!!
You Family [the victim’s surname] are fucking shit
They are trash they should die first
The [victim’s surname] family is shit in Tampa
In the mosque we are going to behead them and drag them alive
like rats fucking Palestinians with their wives and children
We took you out of your land like rats, now we are going to get
you out of here you fucking bastards, [the victim’s surname]
brothers.
Rubiano also sent the victim the Israeli flag, two images of what appears to be a public demonstration, 12 Palestinian flag emojis, 23 skull-and-crossbones flag emojis, 10 Star of David emojis, seven lit cannonball emojis, and five rat emojis.
A few days after Rubiano sent the threatening messages, a Special Agent with the Federal Bureau of Investigation interviewed Rubiano. At the time, Rubiano denied sending the threatening messages and affirmatively stated that she would never threaten [the Victim’s] family. Several months later, Rubiano admitted that she had willfully and knowingly lied to the Special Agent during the first interview. More specifically, Rubiano admitted that, on October 13 and 14, 2023, she had sent threatening messages to several Palestinian Americans and that she had not been truthful when she told the Special Agent otherwise.
As part of the plea agreement, Rubiano also agreed to a special finding that she intentionally selected Palestinian Americans and/or Arabic individuals as the objects of her threats based on their actual or perceived race, religion, national origin, or ethnicity.
This case was investigated by the Federal Bureau of Investigations’ Joint Terrorism Task Force. It is being prosecuted by Assistant United States Attorney Lindsey Schmidt.
Repeat Sex Offender Found Guilty of Possession of Child Pornography by a Federal JuryRead the Press Release
SALT LAKE CITY, Utah – A federal jury in Salt Lake City returned a guilty verdict against a repeat sex offender for the possession of child sexual abuse material.
Daniel David Egli, 50, of South Jordan, Utah, was indicted for possession of child pornography by a federal grand jury in June 2022.
According to court documents and evidence presented at trial, Egli’s was first convicted of possession of child sexual abuse material in 2004 and then again in 2010. In addition, he has had several violations of the conditions of his supervised release. Most recently, in the spring of 2021, while Egli was serving another term of federal supervision, he again violated his conditions of release. During a routine check by his probation officer, law enforcement found Egli possessed an unauthorized laptop and smart phone. These unauthorized devices were seized, along with other unauthorized electronic devices.
Subsequently, in May 2021 a warrant was issued for Egli’s arrest, and he was taken into custody. A search of his residence at that time revealed additional unauthorized electronic devices. Further investigation by the Federal Bureau of Investigation and the Intermountain West Regional Computer Forensic Lab of the electronic evidence demonstrated that Egli had accessed, viewed, and possessed nearly 500 images of child sexual abuse material, which led to the June 2022 federal charge.
Egli’s sentencing is scheduled for February 27, 2025, at 1:00 p.m. at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
The United States Attorney Trina A. Higgins of the District of Utah made the announcement.
The case is being investigated by the FBI Salt Lake City Field Office.
The United States Attorney’s Office for the District of Utah is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Registered Sex Offender from West Gardiner Sentenced to 50 Years for Child Sexual Abuse Material OffensesRead the Press Release
BANGOR, Maine: A West Gardiner man was sentenced today in U.S. District Court in Bangor for transporting, receiving, distributing and possessing child sexual abuse material, as well as failing to register as a sex offender.
Chief U.S. District Judge Lance E. Walker sentenced Jon A. Hall (aka L.J. (Little Jon) Hall), 30, to a total of 600 months in prison to be followed by a lifetime of supervised release. He was also ordered to pay $8,000 in restitution. Hall pleaded guilty on April 26, 2024.
According to court records, on August 29, 2022, Maine State Police investigators executed a search warrant in West Gardiner on Hall’s person. In the search, they seized an iPhone belonging to Hall, and child sexual abuse material was recovered from that phone. Some of the images and video files depicted Hall sexually abusing a young child while earlier living in another state. The phone also included messages with a person in Maine while Hall was out of state. In many of those messages, Hall inquired about obtaining nude images of underage children and sent the user child sexual abuse material. There was also evidence of Hall receiving payments for the images via Cash App. The images were of victims under the age of 12 and included images Hall had solicited and received from boys he knew or met online.
In April 2015, Hall pleaded guilty to and was convicted of two counts of possessing sexually explicit material depicting a child under 12 and was notified of the requirement as a Tier III lifetime registrant of the sex offender registry to maintain current registration information.
“Mr. Hall has a lengthy and troubling history that makes it clear that children are in danger as long as he is free,” said U.S. Attorney Darcie N. McElwee. “Any sentence, no matter how lengthy, can only go so far in providing justice for such heinous acts inflicted upon children, but I hope it provides comfort to all he victimized. My office will continue to prioritize child exploitation prosecutions to protect Maine children from predators like Mr. Hall.”
“Hall was a repeat offender who not only possessed and traded in child sexual abuse material, but directly abused and exploited children. His previous conviction shows he is clearly a danger to the community and today’s significant sentence will keep him away from children for a very long time,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “With the conclusion of this case, we hope those he victimized can find some amount of closure and peace as they move forward.”
Homeland Security Investigations and the Maine State Police investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org or 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.
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Rapid City Woman Sentenced to Eight Years in Federal Prison for Facilitating Live Broadcast of Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier sentenced a Rapid City, South Dakota, woman convicted of Aiding and Abetting the Distribution of Child Pornography. The sentencing took place on October 31, 2024.
Krystal Kay Bulin, 30, was sentenced to eight years in federal prison, followed by five years of supervised release. She was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $3,000 in restitution to her victim. Bulin will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
A federal grand jury indicted Bulin in November of 2023 for Sexual Exploitation of a Minor by a Parent or Guardian and Aiding and Abetting Distribution of Child Pornography. She pleaded guilty on August 2, 2024.
The investigation began when a concerned citizen alerted law enforcement after observing a 16-year-old minor engaging in sexually explicit conduct while broadcasting on the online streaming platform “BuzzCast.” The South Dakota Internet Crimes Against Children Task Force determined the minor lived in Rapid City, and that the defendant was facilitating the livestream in order to make money for a speeding ticket she received. The defendant, the victim’s temporary guardian, repeatedly typed messages to viewers and moderated the chat room in which viewers were watching and commenting on the minor’s exploitation in real time. One of the viewers sent the defendant $100 via CashApp as payment for the child pornography he watched of the victim.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the South Dakota Internet Crimes Against Children Taskforce, the Rapid City Police Department, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Heather Knox prosecuted the case.
Bulin was immediately remanded to the custody of the U.S. Marshals Service.
Quincy, Illinois, Man Sentenced to 108 Months for Possessing a Firearm as a Felon and Violating His Supervised ReleaseRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois, man, Donte Clausell, 36, was sentenced on October 31, 2024, by U.S. District Judge Colleen R. Lawless, to 96 months in prison for possessing a firearm as a convicted felon. Judge Lawless also sentenced Clausell to 12 months in prison, to be served consecutively to his other sentence, for violating his supervised release. At the time he unlawfully possessed the firearm, Clausell was serving a sentence of supervised release for a drug distribution conviction in the Eastern District of Missouri.
On September 26, 2020, Clausell knowingly possessed a firearm containing an extended ammunition clip that was loaded with 31 rounds of ammunition. Clausell was indicted in November 2020 and plead guilty in February 2023.
The statutory penalties for possessing a firearm as a convicted felon are up to 15 years of imprisonment, up to a $250,000 fine, and up to a three-year term of supervised release.
This case was investigated by the Quincy Police Department and the Illinois State Police. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Clausell 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.
Poteau Resident Sentenced for Drug DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Shauna Raye Henderson, age 46, of Poteau, Oklahoma, was sentenced to 24 months each for one count of distribution of fentanyl and one count of distribution of methamphetamine. The terms are set to be served concurrently.
The charges arose from an investigation by the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics, the Oklahoma Bureau of Investigation, and the District 16 Drug Task Force.
On March 12, 2024, Henderson pleaded guilty to the charges. According to investigators, on March 9, 2023, Henderson sold pills containing approximately 5 grams of fentanyl, a Schedule II controlled substance. On June 22, 2023, Henderson sold approximately 55 grams of methamphetamine, a Schedule II controlled substance.
The Honorable John C. Coughenour, Senior U.S. District Judge in the United States District Court for the Western District of Washington, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Henderson will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jordan Howanitz represented the United States.
Port St. Lucie Firearms Dealer Charged with Failing to Keep Proper Records of SalesRead the Press Release
MIAMI – On Nov. 1, Michael John Pellicione, 76, the owner of a Port St. Lucie gun shop who operated out of his residence, was arraigned on a federal indictment charging him with selling several firearms “off the books” in violation of 18 U.S.C. § 922(b)(5), which penalizes the failure of a firearms dealer to keep a proper record of sales.
According to allegations contained in court documents filed in this matter, Pellicione, a federal firearms licensee (FFL), failed to enter the sale of five firearms into his acquisition and disposition (A&D) record. Federal law requires an FFL to record, in the A&D book, all of the firearms that the FFL receives or makes, and then indicate where each of those firearms are – whether they are still in the FFL’s inventory or where they went if they were sold or transferred. Additionally, the A&D book must include the type of firearm, the make, model, caliber, and serial number, the date and from whom the firearm was received and that person's address, as well as the name, date, and address of the person to whom the firearm was sold or transferred.
If convicted of the charged offense, Pellicione faces up to five years’ imprisonment.
Markenzy Lapointe, U. S. Attorney for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, made the announcement.
HSI Fort Pierce and ATF Fort Pierce investigated this case. Managing Assistant U.S. Attorney Carmen Lineberger is prosecuting this matter.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 24-cr-14055.
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Pittsburgh Man Pleads Guilty to Possession of Controlled Substances in PrisonRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court on October 30, 2024, to charges of possession of contraband in prison, United States Attorney Eric G. Olshan announced today.
Lafon Ellis, 30, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the Court was advised that Ellis, while a federal inmate housed at the Allegheny County Jail, possessed various controlled substances on May 3, 2023, and again on December 10, 2023.
Judge Bissoon scheduled sentencing for February 20, 2025. The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The U.S. Marshals Service, with the assistance of the Allegheny County Police, conducted the investigation that led to the prosecution of Ellis.
Owner and Senior Executive of New York Contracting Company Plead Guilty to Paying Kickbacks to Obtain Construction Contracts from A Fortune 500 CompanyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that TROY CARUSO, the owner and chief executive officer of a commercial construction and contracting company headquartered in New York, New York (the “Contracting Company”), and JOHN NOLAN, a senior executive at the Contracting Company, pled guilty Friday, November 1, 2024, to conspiring to commit honest services wire fraud in connection with their scheme to pay kickbacks to a senior project manager at a Fortune 500 real estate services firm in order to obtain contracting work. CARUSO and NOLAN pled guilty before U.S. District Judge Lewis J. Liman, who is scheduled to sentence CARUSO on February 12, 2025, and NOLAN on February 13, 2025.
U.S. Attorney Damian Williams said: “Corruption has no place in our business landscape. Troy Caruso and John Nolan sought to exploit the system for their own benefit, but today’s outcome shows that integrity will prevail. This Office is dedicated to ensuring that the integrity of our contracting processes is upheld, and we will relentlessly pursue those who engage in such dishonest schemes.”
According to the documents filed in this case, including the Indictment and the plea agreements of CARUSO and NOLAN, and statements made in Court:
From at least in or about February 2021, up to and including in or about September 2023, CARUSO and NOLAN agreed to pay, and did pay, kickbacks to an employee of a global and publicly traded commercial real estate services company (the “Real Estate Firm”) in exchange for assistance and preferential treatment so that the Contracting Company would be awarded projects managed by the Real Estate Firm (the “Kickback Scheme”).
In or about March 2021, CARUSO and NOLAN were introduced by an individual (“CC-1”) to a senior project manager at the Real Estate Firm (“CC-2”). CC-2 managed the process by which contracting companies bid for, and were awarded, contracts to work on construction projects for various of the Real Estate Firm’s clients. Beginning in or about March 2021, because of the Kickback Scheme, CC-2 took a series of actions CC-2 otherwise would not have taken to ensure that the Contracting Company was awarded a pre-construction contract and a construction contract relating to a certain project (“Project-1”), which was managed by the Real Estate Firm on behalf of its client, a health services business that provides hospital, medical, and other health services to patients. For example, CC-2 ensured that the Contracting Company was on the Real Estate Firm’s “bid list” so that it could submit bids relating to Project-1 that it otherwise could not have submitted. CC-2 also provided non-public information to CARUSO and NOLAN about the bidding process, and recommended the Contracting Company for both the pre-construction contract and the construction contract relating to Project-1. As a result of the Kickback Scheme and CC-2’s actions, the Contracting Company was awarded the pre-construction and construction contracts for Project-1, the latter of which was valued at approximately $3.55 million (to be paid to the Contracting Company).
In exchange for CC-2’s assistance and preferential treatment, CARUSO and NOLAN agreed to pay kickbacks to CC-2 in the amount of approximately one percent of the construction value of any project managed by the Real Estate Firm that resulted in a contract award to the Contracting Company. Accordingly, CARUSO and NOLAN agreed to pay CC-2 approximately $35,500 for Project-1, and ultimately paid CC-2 approximately $33,000 in kickbacks for CC-2’s assistance on Project-1. Most of these payments were made in cash at locations around New York City. CARUSO and NOLAN also paid CC-1 approximately $15,000 for CC-1’s assistance in the Kickback Scheme, which included connecting CC-2 with CARUSO and NOLAN.
CARUSO and NOLAN attempted to obtain additional contracts from the Real Estate Firm, with CC-2’s assistance as part of the Kickback Scheme. Between in or about 2022 and in or about 2023, in exchange for CARUSO and NOLAN’s promise of payment for any contract awarded to the Contracting Company, CC-2 provided CARUSO and NOLAN with assistance relating to two additional construction projects managed by the Real Estate Firm that did not result in contract awards to the Contracting Company.
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CARUSO, 57, of Smithtown, New York, and Ludlow, Vermont, and NOLAN, 43, of Brooklyn, New York, each pled guilty to one count of honest services wire fraud conspiracy, which carries a maximum sentence of 20 years in prison.
The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as the defendants’ sentences will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Special Agents and the Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams also thanked the Federal Bureau of Investigation for their assistance in the investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Jane Kim is in charge of the prosecution.
Orlando, Florida Man Convicted of Wire Fraud ConspiracyRead the Press Release
Rutland, Vermont – The United States Attorney for the District of Vermont announced that on Friday, November 1, 2024, Nasir Hussain, also known as “Sonu”, 31, of Orlando, Florida was convicted in U.S. District Court in Rutland of wire fraud conspiracy after a four-day jury trial. U.S. District Judge Joseph N. Laplante ordered that Hussain remain in jail pending sentencing, which has not been scheduled. Hussain has been held without bail since his arrest in July 2023.
According to court records and evidence presented at trial, Hussain recruited a number of people to open bank accounts using false information. Those bank accounts were used to funnel proceeds from defrauded victims who lived in Vermont, California, and elsewhere in the United States. Under the fraud scheme, the victim would receive calls, emails or both – purportedly from well-known retail establishments about charges to the victim’s account. The victim was asked to call a certain number and eventually download software to enable the caller to view the screen of the victim’s computer to “refund” the charge if the victim desired.
In reality, however, that software enabled the caller to access the victim’s computer remotely – not just view the screen. The caller then pretended to cancel the requested service at the victim’s request and provide the requested refund. The caller made it look like they had provided too large of a refund, often by moving around money from the victim’s own accounts. When the victim went to return what they thought was the over-refund, they were actually giving away their own money. The callers told their victims to send their money to the bank accounts that Hussain and his conspirators had opened. From there, Hussain and his conspirators funneled the victims’ funds to various individuals in India.
Based on the jury’s verdict, Hussain faces a maximum of 20 years in prison. In a separate case still pending, Hussain faces charges of knowingly making false statements in connection with his application for permanent residence status. Hussain faces a maximum of 10 years in prison on that charge. The actual sentence will be determined with reference to Federal Sentencing Guidelines and the statutory sentencing factors.
“Fraud schemes like the one perpetrated by Hussain are complex and tend to prey on vulnerable victims,” said United States Attorney Nikolas P. Kerest. “These fraud schemes are also far too common and require vigilance by community members and law enforcement alike. This case demonstrates that the U.S. Attorney’s Office and our partners hold perpetrators of cybercrime accountable. Moving forward, we will continue to investigate and prosecute these fraud schemes and also provide education to the community on how to avoid becoming a victim.”
“Mr. Hussain is a scam artist involved in a sophisticated criminal network that targeted innocent victims and robbed them of their hard-earned money,” said Craig Tremaroli, Special Agent in Charge of the Federal Bureau of Investigation’s Albany Field Office. “The FBI will continue to work with our partners at the United States Attorney’s Office to identify and disrupt any individual or criminal organization looking to use technology to scam our citizens.”
United States Attorney Nikolas P. Kerest also commended the investigative work of the Federal Bureau of Investigation and thanked the U.S. Marshals Service for their assistance during trial.
At trial, Assistant U.S. Attorneys Eugenia P. Cowles and Colin Owyang represented the government. Kevin Henry, Esq. of Primmer, Piper, Eggleston & Cramer, PC represented Hussain.
Orlando Woman Sentenced for Role in Construction-Related Wire Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Wendy Cudemo (48, Orlando) to 27 months in federal prison for conspiracy to commit wire fraud. The Court also entered an order of forfeiture in the amount of $787,911.00, the proceeds of the wire fraud conspiracy and ordered the forfeiture to the United States of real property located in Palmetto, Florida. Cudemo pled guilty on July 16, 2024.
According to court documents, Cudemo owned and managed a construction company which purported to supply construction services and labor for construction contractors and subcontractors. In order to comply with Florida law, Cudemo’s company was required to secure and maintain adequate worker’s compensation insurance coverage. Her company had agreements with contractors and subcontractors to use workers purported to be Cudemo’s employees at construction sites and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Cudemo or others would then regularly receive “payroll checks” from contractors that were cashed at various financial institutions to pay Cudemo’s purported “employees” and other related expenses.
During the period charged, Cudemo falsely and fraudulently represented in insurance applications that her company had a very limited payroll and a very limited number of employees who worked on construction jobsites. Cudemo also falsely and fraudulently sent wire communications to numerous contractors representing that her company’s employees had full worker’s compensation coverage. In reality, Cudemo’s company received and cashed more than $7,800,000 in checks from various construction contractors for these purported Cudemo “employees.” These payroll figures far exceeded the very limited payroll figures that Cudemo had reported to her worker’s compensation insurance company. As a result, these employees, in reality the employees of other entities, performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were thus being manipulated to cover.
As a result of these misrepresentations, Cudemo’s company also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. The contractors who actually paid these workers’ wages and used their services were thus also able to avoid responsibility for those duties as well.
This case was investigated by Homeland Security Investigations and the State of Florida Department of Financial Services. It is part of a lengthy investigation by those agencies into the use of shell companies and “ghost” employees in the construction industry. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Omaha Man Sentenced for Possession of Cocaine as Repeat OffenderRead the Press Release
United States Attorney Susan Lehr announced that Ricardo Muro, age 42, of Omaha, Nebraska, was sentenced November 4, 2024, in federal court in Omaha for possession with intent to distribute 500 grams or more of cocaine. United States District Judge Brian C. Buescher sentenced Muro to 225 months’ imprisonment. There is no parole in the federal system. After Muro’s release from prison, he will begin an 8-year term of supervised release.
On January 17, 2023, agents with a DEA task force intercepted a package of marijuana addressed to Muro's business in Omaha. A controlled delivery of the package and search of the business pursuant to a search warrant uncovered more marijuana and THC gummies. Muro's house in Omaha was also searched pursuant to a warrant. Inside, agents found approximately one kilogram of cocaine, marijuana, THC cartridges, and $9,380 cash.
Muro has two prior federal drug trafficking convictions, which enhanced his statutory minimum sentence and his advisory guideline sentence. The $9,380 will be ordered forfeited to the United States as proceeds of illegal drug trafficking.
This case was investigated by the Drug Enforcement Administration and the Nebraska State Patrol.
Ohio Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Terric Zaire Williams, 25, of Akron, Ohio, pleaded guilty today to possession with intent to distribute 50 grams or more of a substance containing methamphetamine.
According to court documents and statements made in court, on March 29, 2023, law enforcement officers executed a search warrant at a Charleston apartment where Williams was staying. Officers seized three-quarters of a pound of methamphetamine from a dining room trash can and a living room closet during the search. Williams admitted to possessing the seized methamphetamine and intending to distribute it.
Williams is scheduled to be sentenced on February 27, 2025, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department.
United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Lesley C. Shamblin is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-67.
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Northern Minnesota Man Indicted for “Cryptojacking” SchemeRead the Press Release
MINNEAPOLIS – A northern Minnesota man has been indicted for an illegal “cryptojacking” scheme that caused significant financial losses, announced U.S. Attorney Andrew M. Luger.
According to court documents, in February 2020, Joshua Paul Armbrust, 44, of Orr, Minnesota, resigned from his employment at Digital River, a Minnetonka-based global e-commerce and payment processing company. After leaving his job, between December 2020 and May 2021, Armbrust engaged in a cryptojacking scheme using accounts belonging to his former employer. Cryptojacking is a form of cybercrime where an unauthorized party uses someone else's computing resources to mine cryptocurrency, such as Bitcoin or Ethereum, by leveraging the victim's hardware, which can lead to reduced system performance, increased energy consumption, and higher operating costs.
As part of the scheme, Armbrust remotely accessed the company’s Amazon Web Services (AWS) account on multiple occasions without authorization and utilized AWS computers to mine Ethereum cryptocurrency. This unauthorized access resulted in substantial costs for the company, totaling over $45,000. The mined Ethereum was directed into a digital wallet and subsequently transferred to two Coinbase accounts registered solely in Armbrust’s name. Armbrust then liquidated the mined Ethereum, totaling over $7,000, and transferred the proceeds to his Wells Fargo banking account.
The indictment charges Armbrust with one count of computer fraud. Armbrust made his initial appearance on November 1, 2024, in U.S. District Court before Magistrate Judge John F. Docherty.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Bradley M. Endicott is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
North Texas Medical Center Pays $14.2 Million to Resolve Potential False Claims Act Liability for Self-Reported Violations of Medicare Regs, Stark LawRead the Press Release
A local medical center has paid $14.2 million to settle potential violations of Medicare regulations and the physician self-referral law (commonly known as the Stark Law) related to four outpatient surgery centers located in Dallas County, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. The United States contends that these potential violations resulted in liability under the False Claims Act.
Horizon Medical Center of Denton, which is owned by Corinth Investor Holdings, L.L.C. and operates a long-term acute care hospital with multiple Dallas County outpatient surgery centers, voluntarily self-disclosed its conduct to the Department of Justice. Specifically, Horizon self-disclosed that when submitting claims for payment to Medicare, it failed to include a “PN” modifier and location to identify services that were provided at its non-excepted off-campus outpatient facilities in Dallas, Richardson, and Coppell. As part of its disclosure, Horizon provided an analysis from an independent third-party expert regarding the financial impact of omitting the “PN” modifier. It also disclosed the existence of Hospital Department Management Agreements at each facility by which Horizon contracted with certain third-party management companies that were affiliated with physicians performing surgery at the outpatient facilities, as well as Operating Lease Agreements by which Horizon contracted for the lease of certain equipment from companies directly or indirectly owned by a physician performing procedures at the surgery centers. These agreements created financial relationships between Horizon and the physician-owners.
“This office will continue to make sure that companies follow the rules of the road when submitting claims to federal healthcare programs,” said U.S. Attorney Leigha Simonton. “And while we will never condone unlawful conduct, we will continue to credit companies that voluntarily self-disclose misconduct prior to the government initiating an investigation.”
The Horizon settlement is the latest in a string of three civil settlements announced by the U.S. Attorney’s Office for the Northern District of Texas over the last year in which the settling party received credit for making a self-disclosure under the Department of Justice’s Guidelines for Taking Disclosure, Cooperation, and Remediation into Account in False Claims Act Matters.
In another case, Oliver Street Dermatology Management (d/b/a U.S. Dermatology Partners) paid the United States $8.9 million after self-disclosing that credible evidence suggested that former senior managers had offered to increase the purchase price of 11 dermatology practices acquired by the company in return for an agreement by the practices’ providers to refer services to Oliver Street affiliated entities, in possible violation of the Stark Law and the Anti-Kickback Statute.
And in a third case, Consolidated Nuclear Security, L.L.C., which operates the Pantex Nuclear Weapons Plant in Amarillo, paid $18.4 million after self-disclosing that certain production technicians at the plant fraudulently recorded on their timesheets hours they did not work.
In all three cases noted above, the self-reported conduct was unknown to the United States at the time of the self-disclosure and was specific as to the nature of the potentially problematic transactions, the personnel involved, and the potential financial impact on the government. All three settlements credited the companies for their self-disclosure and collaboration with government investigators. The claims resolved by the settlement agreements are allegations only, and there has been no determination of liability.
These civil settlements come as the U.S. Attorney’s Office for the Northern District of Texas announced its implementation of the recent USAO-wide voluntary self-disclosure (VSD) policy, which aims to provide transparency and predictability to companies and the defense bar concerning the benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate, and timely and appropriately remediate. The goal of the policy is to standardize how voluntary self-disclosures are defined and credited by U.S. Attorney’s Offices nationwide. It is also intended to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in investigations.
The Horizon resolution is the result of a coordinated effort between the U.S. Attorney’s Office for the Northern District of Texas and the U.S. Department of Health & Human Services’ Office of Inspector General. This matter was handled by Assistant U.S. Attorneys Ken Coffin and Brian Stoltz.
New Orleans Man Guilty of Possession with Intent to Distribute Tapentadol, Marijuana and Drug Trafficking Related Firearm PossessionRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that KENDRICK WILLIAMS (“WILLIAMS”), age 20, pled guilty before U.S. District Judge Jay C. Zainey on October 22, 2024 to possession with intent to distribute tapentadol and, possession with intent to distribute tapentadol and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); and possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, WILLIAMS advertised the sale of tapentadol and marijuana on social media. Law enforcement officers executed two search warrants at WILLIAMS’s residence and recovered over 800 tapentadol pills, one pound of marijuana, two Glock Model handguns with extended magazines, and over $9,000 in cash.
As to each of his drug trafficking convictions, WILLIAMS faces up to 20 years in prison, up to a $1,000,000 fine, and at least three years of supervised release. As to his conviction for possessing a firearm in furtherance of a drug trafficking crime, he faces a mandatory minimum sentence of five years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. Each individual count also carries a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.
New Orleans Man Guilty of Federal Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA –MERVYN LUCAS (“LUCAS”), age 33, pled guilty on October 31, 2024 before U.S. District Judge Eldon E. Fallon, to possession with intent to distribute marijuana, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(D); possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i); and possession of a car stolen from the Norfolk Southern Railyard, in violation of 18 U.S.C. § 659.
According to court documents, law enforcement tracked a brand-new Ford F-150 Raptor, stolen from the Norfolk Southern Railyard, to LUCAS’s residence. The vehicle had a fraudulent temporary license plate and, inside the residence in an envelope addressed to LUCAS, was a second fraudulent plate. Additionally, law enforcement found over 10 pounds of vacuum-sealed marijuana for distribution in LUCAS’s residence as well as a Romarm/Cugir Model Micro Draco firearm loaded with over 40 rounds of ammunition. LUCAS possessed the firearm and ammunition in furtherance of that drug trafficking crime.
As to his conviction for possession with intent to distribute marijuana, LUCAS faces up to five years in prison and a minimum of two years of supervised release. As to his conviction for possessing a firearm in furtherance of that drug trafficking crime, he faces a mandatory minimum sentence of five years up to life in prison, which must run consecutively to any other sentence, and up to three years of supervised release. As to his conviction for possession of the stolen F-150 Raptor, he faces up to 10 years in prison and three years of supervised release. Each count also carries up to a $250,000 fine and a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by Homeland Security Investigations and the Louisiana State Police. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Jersey Man Admits Aiding Conspiracy to Defraud the ElderlyRead the Press Release
ST. LOUIS – A man from New Jersey pleaded guilty Monday and admitted picking up cash and gold bars from elderly victims of a fraud conspiracy.
Andy R. Miqui-Castillo, 35, of Newark, pleaded guilty in U.S. District Court in St. Louis to one felony count of conspiracy to commit mail fraud and wire fraud. He admitted being recruited in October of 2023 to act as a courier for a conspiracy that targeted the elderly.
The conspirators contacted victims falsely claiming to be from various financial institutions or government agencies. They told them that their accounts had been compromised and were being used for illegal activity and induced victims to give them cash or valuables to stop that illegal activity. Miqui-Castillo was provided with the victims’ addresses, picked up cash or other valuables and then delivered or shipped it to co-conspirators in exchange for money.
Miqui-Castillo retrieved or attempted to retrieve cash and gold bars totaling more than $550,000 from four victims in October and November of 2023. He was paid $4,500. He picked up a total of $50,000 in cash and two 100-gram gold bars from two victims in New York and five 1-kilogram gold bars from a North Carolina victim. Miqui-Castillo was arrested by law enforcement on Nov. 17, 2023, while attempting to pick up three 1-kilogram gold bars worth $196,000 from a St. Louis area victim.
Miqui-Castillo is scheduled to be sentenced Feb. 11, 2025. The conspiracy charge carries a potential penalty of up to 20 years in prison, a $250,000 fine, or both prison and a fine.
The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
New England Doctor Pleads Guilty to Drug Distribution ConspiracyRead the Press Release
Burlington, Vermont – A New England doctor pleaded guilty today to conspiring to illegally distribute controlled substances. This is the first joint prosecution of a doctor by the Justice Department’s New England Strike Force and U.S. Attorney’s Office for the District of Vermont.
“The defendant, a medical doctor based in New England, prescribed drugs to vulnerable patients in exchange for cash, knowing the patients were diverting the drugs,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The cases brought by the New England Strike Force, including today’s conviction, demonstrate the Criminal Division’s commitment to holding accountable medical professionals who endanger local communities by putting profits above their patients’ wellbeing.”
“When we announced the creation of the New England Strike Force, we said we would be focusing on medical professionals who put profits over their patients,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “Khan is an example of that — a bad apple in a profession that takes an oath to uphold ethical standards and treat patients as you would want to be treated. Putting profits over patients is a severe violation of that oath, and, in this case, a violation of federal criminal law. Today’s guilty plea is another step in holding Khan liable for his illegal conduct.”
According to court documents, Adnan S. Khan, M.D., 48, of Grantham, New Hampshire, conspired with others to illegally distribute controlled substances through his business, New England Medicine and Counseling Associates (NEMCA), which operated a network of clinics in New England that purportedly provided clinical treatment services for persons suffering from substance use disorder. Khan and a co-conspirator prescribed controlled substances to NEMCA patients despite knowing that their patients were diverting the prescriptions. Khan admitted that he and others required cash for purported office visits to received controlled substance prescriptions and falsified medical records to justify his illegal prescribing practices.
During the conspiracy, Khan emailed a co-conspirator a Justice Department press release announcing the creation of the New England Strike Force, a law enforcement partnership whose purpose is to identify and prosecute health care fraud and other criminal schemes impacting the New England region. In response, the co-conspirator stated that it is “clear that [references in the release to] ‘making profit off of patients’ is geared towards folks like us. Curious where this will lead.” Khan then emailed NEMCA staff and stated that “there is a new task force…[for the New England states] on the lookout for medical professionals who are prescribing scheduled meds irresponsib[ly], etc.” Khan warned his staff that “[i]t is not a matter of if someone from such a task force will visit NEMCA but rather a matter of time.” Khan then ordered his staff “NOT to engage or discuss anything [with the New England Strike Force] about NEMCA, what we do, what we offer, fees, etc.”
“Rather than providing responsible addiction treatment to his patients, Khan ran his medical practice with the corruption and recklessness of a common drug dealer,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “His actions put patients and the community at risk. Today’s guilty plea is the result of a coordinated effort with our law enforcement partners as we continue our fight against addiction and the opioid epidemic.”
“Khan and his co-conspirator exploited vulnerable patients and cashed in on the very dependencies he was entrusted to treat,” said Special Agent in Charge Craig Tremaroli of the FBI Albany Field Office. “Today’s plea proves he is no better than a street level drug dealer motivated by pure greed as opposed to the oath he took to ‘first, do no harm’ to his patients. The FBI will continue to work with our partners on the New England Strike Force and U.S. Attorney’s Office to identify and bring to justice any practitioner looking to line their pockets in complete disregard for patient welfare and viability of our healthcare framework.”
“Our communities deserve honest and trustworthy medical practitioners,” said Acting Diversion Program Manager George J. Lutz Jr. of the Drug Enforcement Administration (DEA)’s New England Field Division. “Individuals betraying this trust through the illegal prescribing of controlled substances will be fully investigated by the DEA. Today’s guilty plea reinforces the value of the coordinated efforts with our law enforcement partners working alongside prosecutors to hold corrupt and reckless practitioners accountable for their actions.”
“So many Vermonters have been impacted by the opioid epidemic, which is why we must hold bad actors accountable, particularly physicians who use their prescribing power and their positions of authority to profit from their patients’ pain and suffering,” said Vermont Attorney General Charity R. Clark on behalf of the office’s Medicaid Fraud & Residential Abuse Unit. “I am proud to partner with the U.S. Attorney’s Office and Department of Justice in this effort.”
Khan and a co-conspirator required patients — many of whom were economically disadvantaged — to pay $250 cash in exchange for drug prescriptions, despite many of these patients’ having health care benefit coverage. If a patient could not afford the full cash payment, Khan would lower the dosage of that patient’s prescription. Khan then used funds that he earned from these patients to, among other things, purchase an airplane and multiple properties in New England. Khan would also personally deposit the cash that he received from patients, including deposits in excess of $10,000, at his bank.
Khan also admitted that he and a co-conspirator discussed their concern that, because pharmacies were no longer willing to fill the prescriptions, NEMCA might lose “dishonest” patients who were “selling their meds.” Khan said that their “honest patients” were “the smaller part of [NEMCA’s] clientele” and advised a co-conspirator that “it’s the diverters [of the drugs that] we need to try to figure out a way to retain.” A co-conspirator emailed Khan, suggesting that they give $100 “scholarships” to patients who owed them money. Khan responded he was “[s]tuck on ‘who’ should get them. S[******] patients owe me so much that $100 won’t even put a dent on their account and they probably won’t appreciate it. Maybe the borderline ones who are just over the $250 threshold? They would probably get on their knees in gratitude.”
Khan pleaded guilty to one count of conspiring to illegally distribute controlled substances. A sentencing hearing will be scheduled on a later date. Khan 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.
As a condition of Khan’s release, he is prohibited from writing prescriptions for controlled substances.
The HHS-OIG, FBI, DEA, and Vermont Attorney General’s Office’s Medicaid Fraud and Residential Abuse Unit investigated the case.
The Fraud Section partners with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout the country to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit.
The Vermont Attorney General’s Office Medicaid Fraud and Residential Abuse Unit receives 75% of its funding from HHS-OIG under a grant award totaling $1,229,616 for federal fiscal year 2024. The remaining 25%, totaling $409,870 for federal fiscal year 2024, is funded by the State of Vermont.
Anyone needing access to opioid treatment services can contact HHS-OIG’s Substance Abuse and Mental Health Services Administration 24/7 National Helpline for referrals to treatment services at 1-800-662-4359.
New England Doctor Pleads Guilty to Drug Distribution ConspiracyRead the Press Release
A New England doctor pleaded guilty today to conspiring to illegally distribute controlled substances. This is the first joint prosecution of a doctor by the Justice Department’s New England Strike Force and U.S. Attorney’s Office for the District of Vermont.
“The defendant, a medical doctor based in New England, prescribed drugs to vulnerable patients in exchange for cash, knowing the patients were diverting the drugs,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The cases brought by the New England Strike Force, including today’s conviction, demonstrate the Criminal Division’s commitment to holding accountable medical professionals who endanger local communities by putting profits above their patients’ wellbeing.”
“When we announced the creation of the New England Strike Force, we said we would be focusing on medical professionals who put profits over their patients,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “Khan is an example of that — a bad apple in a profession that takes an oath to uphold ethical standards and treat patients as you would want to be treated. Putting profits over patients is a severe violation of that oath, and, in this case, a violation of federal criminal law. Today’s guilty plea is another step in holding Khan liable for his illegal conduct.”
According to court documents, Adnan S. Khan, M.D., 48, of Grantham, New Hampshire, conspired with others to illegally distribute controlled substances through his business, New England Medicine and Counseling Associates (NEMCA), which operated a network of clinics in New England that purportedly provided clinical treatment services for persons suffering from substance use disorder. Khan and a co-conspirator prescribed controlled substances to NEMCA patients despite knowing that their patients were diverting the prescriptions. Khan admitted that he and others required cash for purported office visits to received controlled substance prescriptions and falsified medical records to justify his illegal prescribing practices.
During the conspiracy, Khan emailed a co-conspirator a Justice Department press release announcing the creation of the New England Strike Force, a law enforcement partnership whose purpose is to identify and prosecute health care fraud and other criminal schemes impacting the New England region. In response, the co-conspirator stated that it is “clear that [references in the release to] ‘making profit off of patients’ is geared towards folks like us. Curious where this will lead.” Khan then emailed NEMCA staff and stated that “there is a new task force…[for the New England states] on the lookout for medical professionals who are prescribing scheduled meds irresponsib[ly], etc.” Khan warned his staff that “[i]t is not a matter of if someone from such a task force will visit NEMCA but rather a matter of time.” Khan then ordered his staff “NOT to engage or discuss anything [with the New England Strike Force] about NEMCA, what we do, what we offer, fees, etc.”
“Rather than providing responsible addiction treatment to his patients, Khan ran his medical practice with the corruption and recklessness of a common drug dealer,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “His actions put patients and the community at risk. Today’s guilty plea is the result of a coordinated effort with our law enforcement partners as we continue our fight against addiction and the opioid epidemic.”
“Khan and his co-conspirator exploited vulnerable patients and cashed in on the very dependencies he was entrusted to treat,” said Special Agent in Charge Craig Tremaroli of the FBI Albany Field Office. “Today’s plea proves he is no better than a street level drug dealer motivated by pure greed as opposed to the oath he took to ‘first, do no harm’ to his patients. The FBI will continue to work with our partners on the New England Strike Force and U.S. Attorney’s Office to identify and bring to justice any practitioner looking to line their pockets in complete disregard for patient welfare and viability of our healthcare framework.”
“Our communities deserve honest and trustworthy medical practitioners,” said Acting Diversion Program Manager George J. Lutz Jr. of the Drug Enforcement Administration (DEA)’s New England Field Division. “Individuals betraying this trust through the illegal prescribing of controlled substances will be fully investigated by the DEA. Today’s guilty plea reinforces the value of the coordinated efforts with our law enforcement partners working alongside prosecutors to hold corrupt and reckless practitioners accountable for their actions.”
“So many Vermonters have been impacted by the opioid epidemic, which is why we must hold bad actors accountable, particularly physicians who use their prescribing power and their positions of authority to profit from their patients’ pain and suffering,” said Vermont Attorney General Charity R. Clark on behalf of the office’s Medicaid Fraud & Residential Abuse Unit. “I am proud to partner with the U.S. Attorney’s Office and Department of Justice in this effort.”
Khan and a co-conspirator required patients — many of whom were economically disadvantaged — to pay $250 cash in exchange for drug prescriptions, despite many of these patients’ having health care benefit coverage. If a patient could not afford the full cash payment, Khan would lower the dosage of that patient’s prescription. Khan then used funds that he earned from these patients to, among other things, purchase an airplane and multiple properties in New England. Khan would also personally deposit the cash that he received from patients, including deposits in excess of $10,000, at his bank.
Khan also admitted that he and a co-conspirator discussed their concern that, because pharmacies were no longer willing to fill the prescriptions, NEMCA might lose “dishonest” patients who were “selling their meds.” Khan said that their “honest patients” were “the smaller part of [NEMCA’s] clientele” and advised a co-conspirator that “it’s the diverters [of the drugs that] we need to try to figure out a way to retain.” A co-conspirator emailed Khan, suggesting that they give $100 “scholarships” to patients who owed them money. Khan responded he was “[s]tuck on ‘who’ should get them. S[******] patients owe me so much that $100 won’t even put a dent on their account and they probably won’t appreciate it. Maybe the borderline ones who are just over the $250 threshold? They would probably get on their knees in gratitude.”
Khan pleaded guilty to one count of conspiring to illegally distribute controlled substances. A sentencing hearing will be scheduled on a later date. Khan 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.
As a condition of Khan’s release, he is prohibited from writing prescriptions for controlled substances.
The HHS-OIG, FBI, DEA, and Vermont Attorney General’s Office’s Medicaid Fraud and Residential Abuse Unit investigated the case.
Trial Attorneys Thomas D. Campbell and Danielle H. Sakowski of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Gilman for the District of Vermont are prosecuting the case.
The Fraud Section partners with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout the country to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit.
The Vermont Attorney General’s Office Medicaid Fraud and Residential Abuse Unit receives 75% of its funding from HHS-OIG under a grant award totaling $1,229,616 for federal fiscal year 2024. The remaining 25%, totaling $409,870 for federal fiscal year 2024, is funded by the State of Vermont.
Anyone needing access to opioid treatment services can contact HHS-OIG’s Substance Abuse and Mental Health Services Administration 24/7 National Helpline for referrals to treatment services at 1-800-662-4359.
Narcotics and Loaded Glock .40 Used in Shooting Get Wilmington Career Offender 16 Years in Federal PrisonRead the Press Release
WILMINGTON, N.C. – Desmond Antonio Hines, also known as “Head,” has been sentenced to 196 months after the 35-year-old was found guilty by a federal jury for illegal possession of a firearm, which ballistics showed was used in a shooting two months earlier. Hines was sentenced for gun and drug charges and considered a career offender based on prior convictions for drug trafficking and assault, including a prior federal drug conviction.
“Neighbors called 911 when they saw Hines ditch his loaded Glock .40 in a patch of the azaleas as he tried to dodge police. Ballistics traced the gun to a recent shootout that left a popular area rapper dead,” said U.S. Attorney Michael F. Easley, Jr. “A celebration of life for the rapper was shot up weeks later, leaving two men, a teen, and a 6-year-old boy shot. Hines was just a small part the escalating patterns of crime and violence claiming far too many lives. But neighbors have had enough. And when neighbors start talking, the shooting starts stopping.”
According to court records and evidence presented in court, on November 7, 2020, Wilmington Police stopped Hines for traffic violations. Upon approaching the car, the officer noticed an odor of marijuana and asked Hines to step out of the vehicle to conduct a search. A blunt and marijuana were found in the car and, during the search of Hines, the officer felt what he believed to be a metal object between the defendant’s legs. While the officer attempted to secure Hines in handcuffs, he tried to flee but was tackled by the officer. A subsequent search of Hines conducted at the police station uncovered a bag containing ten oxycodone pills and about 17 grams of crack cocaine.
On March 31, 2022, detectives attempted to arrest Hines on federal charges related to the November 7 incident. Officers surveilled him driving a new Chrysler minivan. During surveillance, officers lost sight of Hines after he made a series of evasive maneuvers. After officers located Hines and placed him into custody, 911 dispatch reported a call from area residents who saw a man matching Hines’ description and driving a minivan stop the vehicle, walk to a patch of azalea bushes, and toss something into the bushes before driving off. Upon pulling back the bushes, witnesses saw a firearm. When police responded to the scene, which was approximately half a mile from where Hines was arrested, they recovered a semi-automatic Glock 27 Gen 4 .40 caliber handgun with an extended magazine containing 20 live rounds of ammunition. Ten of those rounds were a distinctive, red-tipped round known as Hornady Critical Defense. When executing a search warrant at the defendant’s residence, detectives found a box of the same ammunition, with ten rounds missing. Later, testing of the firearm confirmed that Hines’ DNA was present. Ballistics traced the gun to the scene of a shootout two months earlier that left a man dead.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and U.S. Attorney Michael Easley and Assistant U.S. Attorney Erin Blondel prosecuted the case.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP), a collaborative effort of local, state, and federal law enforcement agencies working with the community to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, interagency coordination, and intelligence-led policing.
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.7:22-cr-36-M.Mississippi Man Guilty of Methamphetamine Distribution and Felon in Possession of FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that on October 29, 2024, JARVIS WILSON (“WILSON”), age 39, a resident of Jackson, Mississippi, pled guilty to Counts Two and Four of the indictment pending against him. Count 2 charged WILSON with distribution of 500 grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(A). Count 4 charged WILSON with being a felon in possession of firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, on or about April 8, 2024, WILSON, sold five hundred (500) grams or more of methamphetamine, to an undercover special agent. On April 8, 2024, agents searched WILSON’s residence due to his drug trafficking. During the search, agents recovered ammunition, a Ruger Model LCR, .22 caliber revolver, and a Smith & Wesson Model 1000 Super, 12-gauge shotgun.
At sentencing, as to Count 2, WILSON faces a mandatory minimum sentence of 10 years, up to life imprisonment, up to a $10,000,000 fine, and at least 5 years of supervised release. As to Count 4, he faces up to 15 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. WILSON also faces payment of a $100 mandatory special assessment fee for each individual count.
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.
U.S. Attorney Evans praised the work of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crime Unit.
Minnesota and South Dakota Men Sentenced to Federal Prison for Conspiracy to Distribute Methamphetamine Throughout the Sioux Falls AreaRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Worthington, Minnesota, man and a Brandon, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance.
Keophothone Rounoubon, age 31, was sentenced on April 16, 2024, to 11 years and three months in federal prison, followed by five years of supervised release.
Tremaine Vang Sihavong, age 35, was sentenced on October 28, 2024, to five years and 10 months in federal prison, followed by five years of supervised release.
Rounoubon and Sihavong were indicted by a federal grand jury in August of 2023. Rounoubon pleaded guilty on January 26, 2024, and Sihavong pleaded guilty on August 16, 2024.
Starting in approximately 2020 and ending in approximately 2023, these two defendants agreed together and with others to sell methamphetamine throughout the Sioux Falls area. The conspiracy involved tens of pounds of methamphetamine and thousands of dollars in drug proceeds.
This case was investigated by the FBI. Assistant U.S. Attorney Elizabeth A. Ebert-Webb prosecuted the case.
Rounoubon and Sihavong were remanded to the custody of the U.S. Marshals Service to continue serving their sentences.
Mexican National Pleads Guilty to Aggravated Identity TheftRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that Antonino Resendiz Badillo (39, Mexico) today pleaded guilty to aggravated identity theft. Badillo faces a penalty of two years in federal prison, consecutive to any other term of imprisonment. A sentencing date has not yet been set.
According to the plea agreement, E-Verify is a web-based system through which employers electronically confirm the employment eligibility of their employees. E-Verify is administered by the Social Security Administration (SSA) and U.S. Citizenship and Immigration Services (USCIS). The SSA and USCIS check the submitted information against the records of actual persons who are authorized to work in the United States. E-Verify is a voluntary program for employers and requires documents such as a Social Security number and photo identification of a prospective employee.
From at least 2022 through May 2024, Badillo used another person’s means of identification to defeat the E-Verify system and to commit the felony offenses of Misuse of a Social Security Number and False Claim of United States Citizenship for Employment Purposes.
This case was investigated by Homeland Security Investigations, the Department of Transportation–Office of Inspector General, the Social Security Administration–Office of Inspector General, the United States Border Patrol, the Department of Labor–Office of Inspector General, the Florida Department of Law Enforcement, and the Pinellas County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
McKeesport Felon Sentenced to Prison for Possession of Firearm and AmmunitionRead the Press Release
PITTSBURGH, Pa. - A resident of McKeesport, Pennsylvania, was sentenced on October 31, 2024, to 33 months in prison for violating federal firearm laws and conditions of his federal supervised release, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Jared Abraham Ogrosky, 26, also ordering Ogrosky to serve three years of supervised release following his prison term.
Ogrosky previously pleaded guilty in this case to possessing a firearm and ammunition as a convicted felon on March 12, 2024. Federal law prohibits possession of a firearm or ammunition by a convicted felon. Additionally, Ogrosky admitted to violating several conditions of his supervised release following his earlier convictions for trafficking in heroin and fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Assistant United States Attorney V. Joseph Sonson prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms and Explosives; Allegheny County District Attorney Narcotics Enforcement Team; and U.S. Marshals Service for the investigation leading to the successful prosecution of Ogrosky.
Mason City Woman Sentenced to over Three Years in Federal Prison for Being a Drug User in Possession of FirearmsRead the Press Release
A drug user who possessed firearms was sentenced November 1, 2024, to 37 months in federal prison.
Brittany Graham, age 37, of Mason City, Iowa, received the sentence after a June 3, 2024, guilty plea to one count of being a prohibited person in possession of firearms. At the plea hearing, Graham admitted that, in August 2022, she possessed four handguns while she was an unlawful user of marijuana. The evidence at sentencing showed that Graham had possessed seven handguns since 2018. Other prohibited persons later possessed some of these guns, including a .357 magnum revolver that was seized from a felon in Chicago less than seven months after Graham purchased it.
Graham was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Graham was sentenced to 37 months’ imprisonment. She must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mason City Police Department, the Cerro Gordo County Sheriff’s Office, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 23-3014.
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Man Arrested and Charged with Attempting to Use a Weapon of Mass Destruction and to Destroy an Energy Facility in NashvilleRead the Press Release
WASHINGTON – Skyler Philippi, 24, of Columbia, Tennessee, was arrested by federal agents and charged with attempting to use a weapon of mass destruction and attempting to destroy an energy facility.
“As charged, Skyler Philippi believed he was moments away from launching an attack on a Nashville energy facility to further his violent white supremacist ideology -- but the FBI had already compromised his plot,” said Attorney General Merrick B. Garland. “This case serves as yet another warning to those seeking to sow violence and chaos in the name of hatred by attacking our country’s critical infrastructure: the Justice Department will find you, we will disrupt your plot, and we will hold you accountable. I am grateful to the public servants of the FBI for their extraordinary work on this case and for the work they do every day to keep our country safe.”
“Those fueled by hate and inspired to violence by racial or ethnic bias pose a grave threat to our national security,” said Deputy Attorney General Lisa Monaco. “As alleged in today’s charges, Skyler Philippi, a man dedicated to white supremacist ideology and the destruction of our critical infrastructure, planned to attack Nashville’s power grid using a drone carrying an explosive device. Thanks to brave work by the FBI, his scheme was thwarted. We will continue to work with our law enforcement partners to identify, disrupt, and hold accountable those who seek to wage such hate-fueled violence, which has no place in America or anywhere else.”
“Driven by a racially motivated extremist ideology, the defendant allegedly planned to attack the power grid with a drone and explosives, leaving thousands of Americans and critical infrastructure like hospitals without power,” said FBI Director Christopher Wray. “The FBI’s swift work led to the detection and disruption of the defendant’s plot before he could cause any damage. We are committed to hold accountable anyone who threatens or plans harm to critical infrastructure or seeks to hurt American communities through domestic violent extremism.”
“Dangerous threats to our critical infrastructure threaten every member of this community and will not be tolerated” said Acting U.S. Attorney Thomas J. Jaworski for the Middle District of Tennessee. “We will always work with our law enforcement partners to identify and stop any and all efforts to wreak this kind of havoc and will not hesitate in prosecuting those involved to the fullest extent of the law.”
“As alleged, the defendant in this case conducted extensive research into explosive devices and potential targets to launch an attack against critical infrastructure,” said Special Agent in Charge Joe Carrico of the FBI Nashville Field Office. “The FBI is committed to doing everything in our ability to detect, disrupt, and deter attacks by domestic violent extremists, and will continue to pursue those who look to commit acts of violence in furtherance of their ideological beliefs.”
Beginning in June 2024, Philippi told a confidential human source (CHS) about his desire to commit a mass shooting at a YMCA facility located in or around Columbia, Tennessee. In July 2024, Philippi told another CHS about the impact of attacking large interstate substations and said that attacking several substations would “shock the system,” causing other substations to malfunction. Philippi researched previous attacks on electric substations and concluded that attacking with firearms would not be sufficient. Philippi, therefore, planned to use a drone with explosives attached to it and to fly the drone into the substation.
In September 2024, Philippi drove with undercover employees (UCEs) of the FBI to an electric substation previously researched and targeted by Philippi, and Philippi conducted reconnaissance of the substation. While driving, Philippi ordered a plastic explosive composition known as C-4 and other explosives from the UCEs. Philippi later purchased black powder to be used in pipe bombs, which Philippi intended to use during the attack on the substation. Philippi texted the CHS: “if you want to do the most damage as an accelerationist, attack high economic, high tax, political zones in every major metropolis.” Referring to the substation, Philippi stated, “Holy sh**. This will go up like a fu**in fourth of July firework.” Philippi talked about operational security, including the need for disguises, the use of leather gloves (because latex and nitrile gloves can transfer fingerprints), wearing shoes that are too big, the need to burn their clothes after the attack, and not bringing smartphones on the night of the attack.
On Nov. 2, 2024, Philippi participated in a Nordic ritual, which included reciting a Nordic prayer and discussing the Norse god Odin. Philippi told the UCEs that “this is where the New Age begins” and that it was “time to do something big” that would be remembered “in the annals of history.” Philippi and the UCEs drove to the operation site. The UCEs moved to their assigned positions as lookouts for Philippi. Law-enforcement agents arrested Philippi. When he was taken into custody, Philippi was at the rear of the vehicle, with the drone powered up, and the explosive device was armed and located next to the drone.
Philippi is charged with attempted use of a weapon of mass destruction and attempted destruction of an energy facility. If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Nashville Field Office is investigating the case.
Assistant U.S. Attorney Josh Kurtzman of the Middle District of Tennessee and Trial Attorneys Justin Sher and James Donnelly of the National Security Division’s Counterterrorism Section are prosecuting the case.
A complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Arrested and Charged with Attempting to Use a Weapon of Mass Destruction and to Destroy an Energy Facility in NashvilleRead the Press Release
View the complaint here.
Skyler Philippi, 24, of Columbia, Tennessee, was arrested by federal agents and charged with attempting to use a weapon of mass destruction and attempting to destroy an energy facility.
“As charged, Skyler Philippi believed he was moments away from launching an attack on a Nashville energy facility to further his violent white supremacist ideology – but the FBI had already compromised his plot,” said Attorney General Merrick B. Garland. “This case serves as yet another warning to those seeking to sow violence and chaos in the name of hatred by attacking our country’s critical infrastructure: the Justice Department will find you, we will disrupt your plot, and we will hold you accountable. I am grateful to the public servants of the FBI for their extraordinary work on this case and for the work they do every day to keep our country safe.”
“Those fueled by hate and inspired to violence by racial or ethnic bias pose a grave threat to our national security,” said Deputy Attorney General Lisa Monaco. “As alleged in today’s charges, Skyler Philippi, a man dedicated to white supremacist ideology and the destruction of our critical infrastructure, planned to attack Nashville’s power grid using a drone carrying an explosive device. Thanks to brave work by the FBI, his scheme was thwarted. We will continue to work with our law enforcement partners to identify, disrupt, and hold accountable those who seek to wage such hate-fueled violence, which has no place in America or anywhere else.”
“Driven by a racially motivated violent extremist ideology, the defendant allegedly planned to attack the power grid with a drone and explosives, leaving thousands of Americans and critical infrastructure like hospitals without power,” said FBI Director Christopher Wray. “The FBI’s swift work led to the detection and disruption of the defendant’s plot before he could cause any damage. We are committed to holding accountable anyone who threatens the security of our critical infrastructure or seeks to harm American communities through domestic violent extremism.”
“Dangerous threats to our critical infrastructure threaten every member of this community and will not be tolerated,” said Acting U.S. Attorney Thomas J. Jaworski for the Middle District of Tennessee. “We will always work with our law enforcement partners to identify and stop any and all efforts to wreak this kind of havoc and will not hesitate in prosecuting those involved to the fullest extent of the law.”
“As alleged, the defendant in this case conducted extensive research into explosive devices and potential targets to launch an attack against critical infrastructure,” said Special Agent in Charge Joe Carrico of the FBI Nashville Field Office. “The FBI is committed to doing everything in our ability to detect, disrupt, and deter attacks by domestic violent extremists, and will continue to pursue those who look to commit acts of violence in furtherance of their ideological beliefs.”
Beginning in June 2024, Philippi told a confidential human source (CHS) about his desire to commit a mass shooting at a YMCA facility located in or around Columbia, Tennessee. In July 2024, Philippi told another CHS about the impact of attacking large interstate substations and said that attacking several substations would “shock the system,” causing other substations to malfunction. Philippi researched previous attacks on electric substations and concluded that attacking with firearms would not be sufficient. Philippi, therefore, planned to use a drone with explosives attached to it and to fly the drone into the substation.
In September 2024, Philippi drove with undercover employees (UCEs) of the FBI to an electric substation previously researched and targeted by Philippi, and Philippi conducted reconnaissance of the substation. While driving, Philippi ordered a plastic explosive composition known as C-4 and other explosives from the UCEs. Philippi later purchased black powder to be used in pipe bombs, which Philippi intended to use during the attack on the substation. Philippi texted the CHS: “if you want to do the most damage as an accelerationist, attack high economic, high tax, political zones in every major metropolis.” Referring to the substation, Philippi stated, “Holy sh**. This will go up like a fu**in fourth of July firework.” Philippi talked about operational security, including the need for disguises, the use of leather gloves (because latex and nitrile gloves can transfer fingerprints), wearing shoes that are too big, the need to burn their clothes after the attack, and not bringing smartphones on the night of the attack.
On Nov. 2, 2024, Philippi participated in a Nordic ritual, which included reciting a Nordic prayer and discussing the Norse god Odin. Philippi told the UCEs that “this is where the New Age begins” and that it was “time to do something big” that would be remembered “in the annals of history.” Philippi and the UCEs drove to the operation site. The UCEs moved to their assigned positions as lookouts for Philippi. Law-enforcement agents arrested Philippi. When he was taken into custody, Philippi was at the rear of the vehicle, with the drone powered up, and the explosive device was armed and located next to the drone.
Philippi is charged with attempted use of a weapon of mass destruction and attempted destruction of an energy facility. If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Nashville Field Office is investigating the case.
Assistant U.S. Attorney Josh Kurtzman of the Middle District of Tennessee and Trial Attorneys Justin Sher and James Donnelly of the National Security Division’s Counterterrorism Section are prosecuting the case.
A complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Macomb County Doctor and Pharmacist Agree to Pay $700,948 to Settle False Claims Act AllegationsRead the Press Release
DETROIT - United States Attorney Dawn N. Ison announced today that GMAJOS, LLC, Dr. Stephen Swetech, and Yasser Maisari have agreed to pay a total of $700,948.42 to the United States and the State of Michigan to resolve allegations that they violated the False Claims Act. Dr. Swetech has also agreed to rescind his DEA registration and never again prescribe, administer, or dispense controlled substances.
Dr. Swetech operated a medical practice in Clinton Township, Michigan. The practice was located in an office complex owned by his wife’s company, GMAJOS. The complex included separate office spaces for the medical practice, a physical therapy center, and a pharmacy. During all relevant times, Heartland Drugs, which was owned by Yasser Maisari and operated by Med Express Inc., occupied the pharmacy space. GMAJOS also had a lease with a medical laboratory to rent a room within Dr. Swetech’s medical practice.
The settlement announced today resolves two sets of allegations. First, from January 1, 2018, through January 1, 2020, Biolab indirectly paid above fair market value rent to Dr. Swetech for a room rented from GMAJOS in order to induce Dr. Swetech’s referrals to Biolab. These referrals are alleged to have violated the False Claims Act as improper inducements and/or self-referrals. Second, from January 1, 2016, through January 1, 2018, Dr. Swetech prescribed medically unnecessary opioid and attention-deficit/hyperactivity disorder medications, and Yasser Maisari’s Heartland Drugs filled those prescriptions, in violation of the False Claims Act.
“The False Claims Act is an important tool to deter and hold accountable those who submit fraudulent medical claims to the government,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Healthcare providers whose services are tainted by improper financial relationships or who are charging the government for unnecessary medical services will be vigorously investigated by our office.”
“The payment of kickbacks in exchange for patient referrals can corrupt legitimate medical decision-making and lead to the delivery of fraudulent and unnecessary medical services,” said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Chicago Region. “Working together with our partners, HHS-OIG will continue our efforts to identify and investigate those who seek to unlawfully benefit from such arrangements.”
The civil settlement includes the resolution of claims brought under a qui tam or whistleblower lawsuit under the False Claims Act: United States and the State of Michigan ex rel. Doe v. Med Express Inc., et al., Case No. 17-13162 (E.D. Mich.). Under the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery.
The resolution obtained in this matter was the result of a coordinated effort among the United States Attorney’s Office for the Eastern District of Michigan, the Michigan Attorney General’s Health Care Fraud Division, the U.S. Drug Enforcement Agency, and the U.S. Department of Health and Human Services - Office of the Inspector General. The matter was handled by Assistant United States Attorney John Postulka from the U.S. Attorney’s Office for the Eastern District of Michigan.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Lexington Man Sentenced for Conspiracy to Distribute Methamphetamine and FentanylRead the Press Release
LEXINGTON, Ky. – A Lexington man, Bryan Darnel Ragsdale, 37, was sentenced to 170 months in prison on Friday, by Chief U.S. District Judge Danny Reeves, for conspiracy to distribute 50 grams or more of methamphetamine and 40 grams or more of fentanyl.
According to his plea agreement, between August 6, 2023, and August 30, 2023, Ragsdale agreed with at least one other person, his co-defendant Myrtle Craig, to distribute methamphetamine and fentanyl. Beginning on August 6, 2023, law enforcement arranged for a confidential informant to purchase methamphetamine and fentanyl from Ragsdale, on four different occasions. During the conspiracy, Ragsdale admitted to distributing 49.72 grams of actual methamphetamine, 157.395 grams of a mixture or substance containing methamphetamine, and 41.88 grams of a mixture or substance containing fentanyl. Separate from this conspiracy, Ragsdale also admitted to distributing 78 grams of methamphetamine and 54.6 grams of fentanyl.
Craig was previously sentenced to 74 months for her role in the conspiracy.
Under federal law, Ragsdale 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 five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Division; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentencing.
The investigation was conducted by DEA, FBI, and KSP. Assistant U.S. Attorney Brittany Baker is prosecuting the case on behalf of the United States.
— END —
Leader of Area Drug Trafficking Organization Sentenced to 260 Months in Federal Prison for Drug and Gun ChargesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge John W. deGravelles sentenced Corey Terrell Gardner, age 33, of Baton Rouge, Louisiana, to 260 months in federal prison following his convictions for conspiracy to distribute and possession with the intent to distribute methamphetamine and fentanyl and possession of firearms in furtherance of a drug trafficking crime. The Court further sentenced Gardner to serve five years of supervised release following his term of imprisonment and ordered that the proceeds from his drug trafficking crimes, as well as firearms and ammunition seized by law enforcement, be forfeited. As part of the sentence, the Court found that Gardner operated a stash house and was an organizer, leader, manager, or supervisor.
This case was the result of an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a drug trafficking network based and operating in East Baton Rouge Parish and surrounding areas.
According to admissions made as part of his guilty pleas, from March through September 2019, Gardner operated a drug distribution organization in the Baton Rouge area where he and others distributed methamphetamine, fentanyl, and heroin. When law enforcement raided his home and other locations associated with him, over 27 ounces of methamphetamine, 2.7 ounces of heroin and 1.6 ounces of fentanyl was seized, as well as four firearms and 130 rounds of ammunition from Gardner that he illegally possessed to protect himself, his drugs, and his cash proceeds from drug sales.
Gardner was a convicted felon and prohibited from possessing the firearms and ammunition. In January 2018, prior to possessing the four firearms and ammunition, he was convicted in the U.S. Middle District Court of possession with intent to distribute methamphetamine and was sentenced to over twelve months in prison.
This matter was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms & Explosives, East Baton Rouge Sheriff’s Office, Livingston Parish Sheriff’s Office, and Baton Rouge City Police Department, and was prosecuted by Assistant United States Attorneys Lyman E. Thornton, III and Jessica Jarreau, who also serves as Deputy Chief of the Organized and Violent Crime Unit of the U.S. Attorney’s Office.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Leader of International Stock Manipulation Ring Pleads GuiltyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that RONALD BAUER pled guilty to conspiring to commit securities fraud in connection with his role in a long-running “pump-and-dump” stock manipulation scheme. BAUER pled guilty before U.S. District Judge Paul A. Engelmayer and is scheduled to be sentenced on May 20, 2025.
U.S. Attorney Damian Williams said: “For years, Ronald Bauer orchestrated a sprawling ‘pump-and-dump’ scheme involving the shares of numerous U.S.-based issuers that preyed on ordinary, retail investors. While Bauer and his co-conspirators lived outside of the United States, they took advantage of the U.S. markets to perpetrate their fraud and reaped millions upon millions in profits at the expense of the victims. Today’s guilty plea should send a clear message that this Office is committed to holding market manipulators accountable no matter how hard they try to conceal their crimes.”
According to allegations in the Indictment, public filings, and statements made in court:
BAUER, a/k/a “Patek,” a citizen of Canada and the United Kingdom who resided in the United Kingdom, orchestrated numerous “pump-and-dump” schemes, controlling various aspects of the plans. The Securities and Exchange Commission (“SEC”) had previously filed securities fraud claims against BAUER in 2005 for engaging in an alleged market manipulation scheme that was alleged to have issued false and misleading press releases while secretly dumping tens of millions of shares into the inflated market that BAUER and his associates had created. In 2006, without admitting or denying the allegations, BAUER consented to the entry of a judgment against him providing for injunctive relief, barring BAUER from serving as an officer or director of a public company or participating in an offering of penny stock for a period of five years, and payment of disgorgement of $840,000.
As he admitted in connection with his guilty plea, BAUER and his co-conspirators participated in a conspiracy to commit securities fraud with respect to seven issuers: Cantabio Pharmaceuticals Inc. (CTBO) (previously Lion Consulting Group (LIOC)); Virtus Oil and Gas Corp. (VOIL) (previously Curry Gold Corp. (CURGD)); Steampunk Wizards (SPWZ) (previously Freedom Petroleum (FPET)); Black Stallion Oil and Gas Inc. (BLKG) (previously Secure IT Corp.); PetroTerra Corp. (previously Loran Connection Corp (LRNC)); Black River Petroleum (BRPC) (previously American Copper Corp. (AMCU)); and Cyberfort Software Inc. (CYBF) (previously Patriot Berry Farms (PBFI)) (collectively, the “Issuers”).
To perpetrate the “pump-and-dump” scheme, BAUER and his co-conspirators obtained ownership and control of all or the vast majority of the unrestricted (i.e., free trading) stock of the Issuers. BAUER and his co-conspirators sought to conceal their beneficial ownership of these controlling interests in the shares of the Issuers by causing their shares to be distributed to and divided amongst nominee entities that had been established by a Swiss corporation called Blacklight, S.A. These entities were nominally owned by unrelated third parties but were, in fact, controlled by BAUER or his co-conspirators. Thereafter, BAUER and his co-conspirators retained trading authority over the blocks of shares of the Issuers held by the Blacklight nominee entities and BAUER regularly provided trading instructions with respect to these shares to executives or employees at Blacklight. In addition, BAUER and his co-conspirators effectively controlled or otherwise maintained significant influence over the management of the Issuers during the “pump-and-dump” scheme.
At times, BAUER and his co-conspirators caused nominees to engage in “match trades”—i.e., place both buy and sell orders in the same stock on the same day—for no legitimate economic purpose. Furthermore, BAUER and his co-conspirators financed and coordinated promotional campaigns touting the Issuers to stoke trading interest in the Issuers’ stock, though without publicly disclosing their relationship to the promotional campaigns, their controlling interest, or their intent to sell a significant percentage of their holdings into the buying interest that they intended the promotional campaigns would generate. BAUER and his co-conspirators took steps to conceal the fact that the nominee entities they controlled were the true funding source for the promotional campaigns.
During or shortly after the promotional campaigns, BAUER and his co-conspirators caused the Blacklight nominee entities to engage in trading activity in the Issuers’ stock, including selling a large percentage of their holdings of the Issuers’ stock, then caused the Blacklight nominee entities they controlled to remit to them the proceeds of the stock sales.
* * *
BAUER, 49, of London, United Kingdom, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison. As part of his guilty plea, a money judgment in the amount of $4,377,228.74 was entered against BAUER.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. He further thanked the Justice Department’s Office of International Affairs of the Department’s Criminal Division, as well as authorities in the United Kingdom, in particular the Crown Prosecution Service’s National Extradition Unit. Finally, Mr. Williams also thanked the Securities and Exchange Commission, which separately initiated civil proceedings against BAUER.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jason Richman, Matthew R. Shahabian, Noah Solowiejczyk, and Vladislav Vainberg are in charge of the prosecution.
Law Enforcement Officers Join Students for A Day of LearningRead the Press Release
BLAST
(Building Lasting Relationships Between Police and Community)
The BLAST Program Brings Law Enforcement and Communities Together
TALLAHASSEE, FLORIDA – The United States Attorney’s Office, the Tallahassee Police Department, and Leon High School will present a BLAST event at Leon High School on Thursday, November 7. The BLAST event offers students an opportunity to meet and ask questions of prosecutors and law enforcement officers. The program is based on the belief that young people and law enforcement officers can benefit from spending time together discussing challenges and perspectives on law enforcement to reach a better understanding of each other. This productive interaction enhances relationships and replaces doubt with familiarity and trust.During the three-hour program, law enforcement officers share the challenges in responding to dangerous or uncertain circumstances and the actions officers and civilians can take to de-escalate situations.
Agencies participating in the program include the ATF, DEA, FBI, United States Marshals Service, and the Tallahassee Police Department.
Members of the media are welcome to attend and photograph/video most segments of the BLAST (Building Lasting Relationships Between Police and Community) program.
Event: BLAST
(Building Lasting Relationships Between Law Enforcement and Community)
Location: Leon High School
550 East Tennessee Street
Tallahassee, FL 32308Date: Thursday, November 7, 2024
Time: 8:00 a.m. – 11:15 a.m. EST
Media: Please RSVP to [email protected] if you plan to attend.
The BLAST program schedule includes the following discussion sessions, during which students have a chance to participate in role-play with law enforcement officers. (Students with media permissions will be identified)
• Federal Crimes Scenario: Students evaluate video scenarios and learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing. This session is open to the media, and videography and photography are permitted.
• Domestic Response / K-9 Demonstration: Students participate in a scenario in which law enforcement officers respond to a domestic disturbance. The discussion includes the challenges officers face, the rights of witnesses and suspects, and the benefits of providing information to law enforcement. Officers explain the role and capabilities of police K9s. This session is open to the media, and videography and photography are permitted.
• Traffic Stop Simulation: Students and officers alternate playing the roles of civilians and officers in a traffic stop. The discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop. This session is open to the media, and videography and photography are permitted.
• Use of Force: Facilitators and students discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation. This session is closed to the media. Reporters may try the simulator equipment after the event ends.
• The Way Forward - Returning from Prison: A formerly incarcerated individual shares his journey from prison to a productive citizen.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Justice Department to Monitor Compliance in Wake County, North CarolinaRead the Press Release
United States Attorney Michael F. Easley, Jr., announced today that the Justice Department will monitor compliance with federal voting rights laws in Wake County for the Nov. 5 general election.
The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country.
The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include Justice Department personnel, who will contact state and local election officials as needed throughout Election Day.
The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931. The U.S. Attorney’s Office for the Eastern District of North Carolina will also be available to receive complaints on Election Day at 919-856-4808 or [email protected].
Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.
Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.
More information about voting and elections, including guidance documents and other resources, is available 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 the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
Justice Department Awards over $3 Million to the Louisiana Commission on Law EnforcementRead the Press Release
U.S. Attorney Ronald C. Gathe, Jr. announced that the Department of Justice’s Office of Justice Programs, Bureau of Justice Assistance, has awarded $3,364,666 to the Louisiana Commission on Law Enforcement (“LCLE”) to provide resources to help Louisiana agencies fight the drug epidemic and violent crime throughout the state of Louisiana.
The project activities include providing state and local units of government funding to enforce drug control laws and to improve the functioning of the criminal justice system, with an emphasis on violent crime and serious offenders. Expected outcomes for this program include continuing programs to improve drug control via enforcement of the laws against violent and non-violent crime; addressing recidivism by strengthening the areas of the criminal justice system that focus on prevention of crime and on drug abuse intervention; and responding to the need for specialized law enforcement and prosecution training. Subrecipient activities will be determined by data gathered from district planning meetings, as well as information collected by the Louisiana Law Enforcement Commission staff and policy board. These activities along with other statutory program areas will include promoting law enforcement, prosecution and adjudication efforts necessary to provide for a safe and drug-free society.
LCLE is a foundation located in Baton Rouge dedicated to improving the operations of the criminal justice and juvenile justice systems and to promoting public safety by providing progressive leadership and coordination within the criminal justice community.
For more information about this award, please contact the OJP Office of Communications at 202-307-0703 or [email protected].
Jefferson Parish Man Sentenced for Heroin, Tapentadol and Marijuana Distribution Conspiracy and PossessionRead the Press Release
NEW ORLEANS, LOUISIANA – RODNEY COOPER (“COOPER”), age 33, a resident of Metairie, Louisiana was sentenced on October 30, 2024, by U.S. District Judge Jane T. Milazzo, to time served in prison, 3 years of supervised release, and a $200 mandatory special assessment fee. COOPER previously pled guilty to conspiracy to distribute, and possess with intent to distribute, heroin, tapentadol, and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), 841(b)(1)(D), and 846; and possession with intent to distribute those substances, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D).
According to court documents, on January 6, 2022, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Jefferson Parish Sheriff’s Office (JPSO), conducted surveillance in the 500 block of N. Elm Street in Metairie, Louisiana. COOPER was observed selling drugs, both individually, and with his co-conspirators, to customers who arrived in the area. When JPSO detectives approached COOPER, he fled and discarded a backpack containing heroin, tapentadol, and marijuana.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Jefferson Parish Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Jamestown man going to prison for selling methRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Mark R. Maio, 40, of Jamestown, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of methamphetamine, was sentenced to serve 121 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that in January 2019, investigators executed a search warrant at the residence of Maio and co-defendant Brittany Dellahoy. During the search, law enforcement recovered quantities of methamphetamine, marijuana, crack cocaine, heroin, drug paraphernalia, and $2,036 in cash. Brittany Dellahoy was previously convicted and sentenced.
The sentencing is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarantino, New York Field Division.
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Jacksonville Medical Records Technician Sentenced to 35 Years for Sexually Exploiting Numerous Children OnlineRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced Arin Caleb Ellis (27, Jacksonville) to 35 years in federal prison for producing and distributing videos depicting children being sexually abused. Ellis was also ordered to serve a lifetime term of supervised release and to register as a sex offender. Ellis was arrested on August 29, 2022, and has been in federal custody since that date. On February 28, 2024, Ellis pleaded guilty to persuading and coercing a child to engage in producing visual depictions of sexually explicit conduct and to distributing a video depicting a child being sexually abused.
According to court documents, from January 2018 through August 29, 2022, Ellis was an active member of several online groups on social media applications (apps) dedicated to the sexual exploitation of children and the sharing of child sexual abuse materials. Ellis and other members of these groups conspired and worked together to locate and sexually exploit minors across a variety of online social media platforms. During online text conversations, Ellis and other members discussed and strategized on how to pressure and coerce targeted children into producing sexually explicit photos and videos and engaging in sexually explicit conduct live on social media apps. Ellis and the other members also exchanged information about the identity of children who had an online presence, such as the minors’ names, ages, locations, and online user identifiers. Ellis told other group members that he preferred targeting female children who were 8 to 11 years old. Posing as minor children, Ellis and the other members persuaded and coerced the targeted children to engage in sexually explicit conduct and to live-stream the conduct that Ellis and his co-conspirators would covertly record. When Ellis and the other members obtained the sexually explicit recordings, they shared these materials through online group chats and other cloud-based file storage apps and websites.
Ellis developed and used certain recording tools to capture live-streaming content over the internet that depicted the targeted children engaging in sexual acts. These tools allowed Ellis to simultaneously record multiple streaming video feeds from different children, and he shared these tools with other members for their use. Ellis used a variety of social media apps to communicate with the targeted minors across the United States and portrayed himself as a 10 or 11-year-old female child named “nova” from Florida. Ellis initially sent the targeted child sexually explicit photos and videos depicting an actual minor female that he was pretending to be and asked the child to be his “girlfriend.” After gaining some measure of trust, he then asked the child to send him sexually explicit photos and videos and recorded the child as she live-streamed sexually explicit conduct at his direction. Ellis also threatened some of the targeted children who refused to provide him with sexually explicit materials.
Ellis and the other group members also collaborated to hack into baby monitors, “nanny” cameras, and other internet-enabled cameras within private residences. The co-conspirators periodically provided Ellis with internal protocol addresses, which he developed his own computer code to remotely hack into these devices, allowing him to capture streaming video from compromised baby monitors.
During this investigation, the FBI executed multiple search warrants and seized the contents of the accounts used by Ellis and other group members. That content, combined with the evidence recovered from Ellis’ electronic devices, revealed that Ellis potentially targeted thousands of minor children for online sexual exploitation.
On August 29, 2022, law enforcement executed a federal search warrant at Ellis’ residence and seized his computers and electronic devices, several of which were encrypted. Forensic examination of one of Ellis’ cellphones revealed that he used a particular online app to send two videos of child sexual abuse to a co-conspirator just hours before FBI agents arrived at his residence. In total, the FBI recovered at least 1,700 photos and 700 videos depicting children engaging in sexually explicit conduct that Ellis maintained on his electronic devices and in his online social media accounts. Many of these materials depict young children, some as young as 6 years old.
Roger B. Handberg, United States Attorney for the Middle District of Florida, Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, Assistant Director B. Chad Yarbrough of the FBI’s Criminal Investigative Division, and Special Agent in Charge Kristin Rehler of the FBI Jacksonville Field Office, made this announcement.
This case was investigated by the FBI Child Exploitation Operational Unit in Linthicum, Maryland, and the FBI Jacksonville Field Office, with assistance from the Jacksonville Sheriff’s Office. Assistant United States Attorney D. Rodney Brown for the Middle District of Florida, and Trial Attorneys Kaylynn Foulon and McKenzie Hightower of the DOJ Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Hazelwood Man Sentenced to 24 Years in Prison for Producing Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Monday sentenced a man to 24 years in prison for producing child pornography involving two victims.
Antjuan Potts, 27, of Hazelwood, Missouri, pleaded guilty in U.S. District Court in St. Louis in August to two counts of sexually exploiting a child and admitted his crimes spanned from 2019 to 2022.
The first victim told a St. Louis County Police Department detective in 2023 that she was 14 when she met Potts and engaged in sexual contact with him. Potts recorded that sexual contact and used Snapchat to send those videos to the victim on two occasions. The victim also said Potts was in a relationship with another juvenile. Police interviewed Potts, who admitted having sex with both juveniles and recording both with his phone.
A sentencing memo says that Potts had sexual intercourse with two other minors, part of a pattern of behavior involving the sexual exploitation of minors. A 15-year-old told police Potts sexually assaulted her in 2020. He said it was consensual. He had sexual intercourse with a 14-year-old in 2021. She told police that she was drugged and sexually assaulted.
“You have caused a tremendous amount of harm,” Judge Ross told Potts, referring to the four victims.
The St. Louis County Police Department investigated the case. Assistant U.S. Attorney Nathan Chapman is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Guatemalan National Pleads Guilty to Heroin and Methamphetamine Delivery to FresnoRead the Press Release
FRESNO, Calif. — Donis Ariel Maldonado, 28, a Guatemalan national residing in El Monte, pleaded guilty today to conspiring to distribute and possess with intent to distribute heroin and methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Maldonado agreed with other members of the conspiracy to distribute 22 pounds of heroin and over 80 pounds of methamphetamine sourced from Mexico. On June 24, 2019, Maldonado delivered the drugs to an informant in Fresno.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Fresno County Sheriff’s Office, and the High Impact Investigation Team (HIIT), a High Intensity Drug Trafficking Area Initiative (HIDTA), which consists of personnel from the California Department of Justice, Fresno Police Department, Fresno County Sheriff’s Office, Fresno County District Attorney’s Office, California Highway Patrol, Madera County Sheriff’s Office, Tulare County Sheriff’s Office, Kings County Sheriff’s Office, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Maldonado is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Feb. 18, 2025. Maldonado faces a maximum statutory penalty of 20 years in prison and a $2 million fine. The actual sentence, however, will 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 case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Georgia Poll Worker Arrested for Making Bomb Threat to Election WorkersRead the Press Release
MACON – A Georgia poll worker was arrested today for mailing a letter to the Jones County Elections Superintendent threatening poll workers.
According to the criminal complaint, Nicholas Wimbish, 25, of Milledgeville, Georgia, was serving as a poll worker at the Jones County Elections Office on Oct. 16 when he allegedly had a verbal altercation with a voter. Later that evening, Wimbish conducted online research to determine what information about himself would be publicly available. The following day, Wimbish mailed a letter addressed to the Jones County Elections Superintendent, purportedly from a “Jones County Voter.”
The letter was allegedly drafted to make it appear as if it came from the voter, such as by stating that Wimbish had “give[n] me hell” and that Wimbish was “conspiring votes” and “distracting voters from concentrating.” The letter threatened that Wimbish and others “should look over their shoulder,” that “I know where they go,” that “I know where they all live because I found home voting addresses for all them,” and that the “young men will get beatdown if they fight me” and “will get the treason punishment by firing squad if they fight back.” Further, the letter threatened to “rage rape” the “ladies” and warned them to “watch every move they make and look over their shoulder.” The letter concluded with a handwritten note, “PS boom toy in early vote place, cigar burning, be safe.”
Wimbish is charged with mailing a bomb threat, conveying false information about a bomb threat, mailing a threatening letter, and making false statements to the FBI. If convicted, he faces a maximum penalty of 25 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Peter D. Leary for the Middle District of Georgia made the announcement.
The FBI Atlanta Field Office is investigating the case.
Trial Attorney Jacob R. Steiner of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Will R. Keyes for the Middle District of Georgia are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by PIN and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Georgia Poll Worker Arrested for Making Bomb Threat to Election WorkersRead the Press Release
A Georgia poll worker was arrested today for mailing a letter to the Jones County Elections Superintendent threatening poll workers.
According to the criminal complaint, Nicholas Wimbish, 25, of Milledgeville, Georgia, was serving as a poll worker at the Jones County Elections Office on Oct. 16 when he allegedly had a verbal altercation with a voter. Later that evening, Wimbish conducted online research to determine what information about himself would be publicly available. The following day, Wimbish mailed a letter addressed to the Jones County Elections Superintendent, purportedly from a “Jones County Voter.”
The letter was allegedly drafted to make it appear as if it came from the voter, such as by stating that Wimbish had “give[n] me hell” and that Wimbish was “conspiring votes” and “distracting voters from concentrating.” The letter threatened that Wimbish and others “should look over their shoulder,” that “I know where they go,” that “I know where they all live because I found home voting addresses for all them,” and that the “young men will get beatdown if they fight me” and “will get the treason punishment by firing squad if they fight back.” Further, the letter threatened to “rage rape” the “ladies” and warned them to “watch every move they make and look over their shoulder.” The letter concluded with a handwritten note, “PS boom toy in early vote place, cigar burning, be safe.”
Wimbish is charged with mailing a bomb threat, conveying false information about a bomb threat, mailing a threatening letter, and making false statements to the FBI. If convicted, he faces a maximum penalty of 25 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Peter D. Leary for the Middle District of Georgia made the announcement.
The FBI Atlanta Field Office is investigating the case.
Trial Attorney Jacob R. Steiner of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Will R. Keyes for the Middle District of Georgia are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by PIN and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Georgia Man Indicted for Traveling to Meet A Minor for SexRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the arrest of Troy Lyn Everett (62, Smyrna, Georgia) on an indictment charging him with attempted production of child sex abuse material and attempted online enticement of a minor. If convicted of both offenses, Everett faces a minimum sentence of 25 years, up to life, in federal prison.
According to court records, from August 22 to October 25, 2024, an undercover detective from the Nassau County Sheriff’s Office posed as a 14-year-old girl on an online messaging application. During the first few minutes, Everett asked about the child’s age, and when he found out she was 14, he asked multiple times for sexually explicit photos of the child. In addition to asking for the photos, he set up a time and place for them to meet for sex. Everett then purchased a bus ticket and traveled from Atlanta to Jacksonville under the belief that he would be meeting the child once in Jacksonville. Upon arrival at the bus station, Everett was arrested by law enforcement. He is currently being held without bail awaiting trial.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by Homeland Security Investigations, Nassau County Sheriff’s Office, and the Northeast Florida INTERCEPT Task Force. This case is being prosecuted by Assistant United States Attorney John Cannizzaro.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fresno Woman Who Managed Her Husband’s Orthodontics Practice Pleads Guilty to Tax Charges and Agrees to Forfeit Her Mansion and BMWRead the Press Release
FRESNO, Calif. — Pilar Rose, 51, formerly of Fresno, pleaded guilty today to tax evasion and obstructing an IRS audit, U.S. Attorney Phillip A. Talbert announced. Rose also agreed to forfeit her interest in more than $2.5 million of proceeds from the sale of her and her husband’s mansion and BMW that authorities previously seized.
According to court records, from 2012 through 2015, Rose prepared false financial statements for her husband’s orthodontics practice that significantly underreported the practice’s profits. As a result, Rose evaded more than $870,000 that she and her husband owed in federal taxes.
Then, in early 2016, Rose obstructed an IRS audit of her and her husband’s taxes. She altered hundreds of checks that were for the couple’s nondeductible personal expenses, such as their mortgage, utilities, landscaping, pool cleaning, cars, credit cards, and children’s college tuition, to make it appear as though the checks were for deductible business expenses. She also created false financial statements for her husband’s orthodontics practice to match the altered checks. She provided the altered checks and false financial statements to the IRS auditors to try to avoid paying the federal taxes that she and her husband actually owed.
In June 2015, Rose had sought a $1.5 million home mortgage refinance loan on the couple’s mansion located on Van Ness Boulevard in Fresno. To assure the bank of their creditworthiness and induce the bank to make the loan, Rose submitted copies of her and her husband’s federal tax returns that showed significantly greater income than was reported on the actual returns they filed with the IRS. The bank declined the loan after discovering the discrepancies.
Then, in July 2015, Rose applied to a second bank for a $1,475,000 home mortgage refinance loan on the Van Ness Boulevard residence. In the application, she represented that their bank accounts had a combined balance of more than $250,000 when they actually had less than $3,000. She also submitted copies of her and her husband’s federal tax returns, and a profit and loss statement, that significantly exaggerated the profitability of her husband’s orthodontics practice. As a result, the second bank approved the loan, and Rose and her husband received $1,475,000 to which they were not entitled. Authorities later seized the residence.
Moreover, in September 2017, Rose purchased a new BMW sedan for approximately $90,000. She made a $25,000 down payment and financed the remaining $65,000 through a loan she obtained from a third bank. In the loan application, Rose represented that she was an attorney who made more than $600,000 per year when she actually was not an attorney. She also used the Social Security number belonging to her husband’s former dental school classmate because she knew that using her real SSN would result in her having a low credit score, which may have disqualified her from receiving the loan. As a result, the loan was approved, and Rose received more than $65,000 to which she was not entitled. Authorities later seized the BMW.
This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Joseph Barton, Michael Tierney, Alyson Berg, and Kevin Khasigian are prosecuting the case.
Rose is scheduled to be sentenced on March 17, 2025. She faces a maximum statutory penalty of five years in prison and $100,000 fine for the tax evasion charge and an additional three years in prison and a $5,000 fine for the obstruction charge. The actual sentence, however, will 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.
Fresno Man Sentenced to 21 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
FRESNO, Calif. — Todd Eric Mumma, 61, of Fresno, was sentenced today by U.S. District Judge Jennifer L. Thurston to 21 years in prison for sexual exploitation of a minor, to be followed by 10 years of supervised release during which time his access to minors, computers, and the internet will be restricted, U.S. Attorney Phillip A. Talbert announced.
Mumma was also ordered to register as a sex offender and pay a forfeiture money judgment, representing the proceeds of property subject to forfeiture totaling $160,000. The court also ordered that Mumma pay $71,200 in restitution to a victim and $55,100 in special assessments.
In March 2024, a federal jury found Mumma guilty of actual and attempted sexual exploitation of a minor. According to court documents and evidence introduced at trial, Mumma used hidden digital video recording devices in a residence to create sexually explicit images of a minor. He edited recordings on a computer and then transferred the most sexually explicit images onto a cellphone where the images were stored in a password‑protected application and viewed numerous times.
This case was the product of an investigation by the Central Valley Internet Crimes Against Children (ICAC) Task Force, specifically, Homeland Security Investigations and the Fresno County Sheriff’s Office. Assistant U.S. Attorney David L. Gappa prosecuted the case along with Trial Attorney McKenzie Hightower of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Fresno County Farmer and Owner of Fruit Packing Company Convicted of Crop Insurance FraudRead the Press Release
FRESNO, Calif. — Jatinderjeet “Jyoti” Sihota, 37, of Selma, pleaded guilty today to conspiring to commit crop insurance fraud, U.S. Attorney Phillip A. Talbert announced.
According to court records, for many years, Sihota’s family’s farming operation produced table grapes and other crops in Fresno and Tulare Counties, and it sold many of those crops through a fruit packing company where Ralph Hackett was a member and manager. The farming operation also entered into financial agreements with the fruit packing company where various costs that the farming operation incurred selling its crops were advanced and covered by the company. The farming operation then had to pay the fruit packing company back by a certain date.
Beginning in 2012, Sihota became involved with her family’s farming operation. Thereafter, from 2012 through 2016, she and Hackett carried out a fraud scheme to obtain more than $650,000 in crop insurance payments to which they were not entitled. They caused false information that underreported the amount of crops the farming operation sold through the fruit packing company to be provided to the insurance company to make it appear as though the farming operation had suffered significant crop losses when that was not true.
Hackett, 69, of Clovis, was separately charged and has pleaded guilty for his role in the fraud scheme. He agreed to certain sentencing enhancements because he directed lower-level employees at the fruit packing company to participate in the scheme and hid his misconduct from other principals at the company. Hackett also agreed to pay criminal restitution of $650,000 and a separate civil settlement of $605,000.
This case is the product of an investigation by the U.S. Department of Agriculture Office of Inspector General and Risk Management Agency Special Investigations Staff. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
“The USDA OIG is committed to combatting crop insurance fraud through criminal investigations and civil enforcement. Fraudulent activity within the crop insurance program undermines its intent and misdirects taxpayer dollars from where they were intended. We thank the U.S. Attorney’s Office for the Eastern District of California for pursuing justice until these conspirators were held accountable,” said USDA OIG Special Agent-in-Charge Shawn Dionida.
Sihota is scheduled to be sentenced on March 3, 2025, and Hackett is scheduled to be sentenced on Jan. 27, 2025. They each face a maximum statutory penalty of 20 years in federal prison and a fine of up to $250,000. The actual sentences, however, will 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.
Fraudulent Tax Preparer Sentenced to Ten Years on Federal ChargesRead the Press Release
ROANOKE, Va. – A Roanoke woman who prepared and filed false tax returns for others, committed wire fraud, distributed fentanyl, and illegally sold firearms, was sentenced last week to 120 months in federal prison.
Alisha Warrick, 40, pled guilty in November 2023 to filing a false and fictitious claim against the United States, wire fraud, aggravated identity theft, distribution of fentanyl, possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm by a prohibited person.
According to court documents, beginning in 2015 and continuing at least through 2019, Warrick prepared and filed tax returns for other individuals, and she deliberately included false and fraudulent information in the tax returns. As part of this scheme, Warrick would "boost" the tax returns she filed on behalf of other individuals by including false employment and wage information or false information about the named filer's dependents, or both. Warrick knew the information was false when she submitted the tax returns.
Warrick also filed tax returns for certain individuals without their knowledge, and used those individuals' names and personal identifying information to file the tax returns.
While on bond pending trial, Warrick arranged with a confidential informant to sell the informant heroin (which later testing showed to contain fentanyl), and two firearms, one of which was connected to a prior fatal shooting in the Roanoke area.
United States Attorney Christopher R. Kavanagh and Kareem Carter, Special Agent in Charge of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office made the announcement today.
The Internal Revenue Service-Criminal Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorneys Jonathan Jones and Kelly McGann prosecuted the case.
Former U.S. Capitol Police Officer Sentenced for Violating a Citizen’s Civil Rights in 2020Read the Press Release
WASHINGTON – Thomas Smith, 47, a former United States Capitol Police (USCP) officer, was sentenced today in U.S. District Court to 21 months in prison for violating an individual’s civil rights by recklessly engaging in a dangerous pursuit that resulted in a vehicular crash involving a motorist.
The sentence was announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
Smith pleaded guilty on October 18, 2023, to deprivation of rights under color of law. In addition to the prison term, U.S. District Court Judge Carl J. Nichols ordered 24 months of supervised release, 40 hours of community service, and restitution of $4,455.
“Thomas Smith abused his position of trust by engaging in a dangerous pursuit that could have been deadly – and made matters worse by obstructing the investigation into the collision he caused,” said U.S. Attorney Graves. “Most police officers uphold the oath they took upon becoming officers, but when police officers break that oath and violate the public trust they must be held accountable.”
"Smith's actions violated his oath to protect and serve our communities and uphold the Constitution," said David Sundberg, Assistant Director in Charge of the FBI Washington Field Office. "Today's sentence demonstrates the FBI's commitment to hold accountable those who misuse their power and deny the public their civil liberties."
“This defendant recklessly pursued two motorcyclists, struck one of them with his car, left the victim unconscious on the asphalt, fled the scene and then switched out his cruiser and filed no report in an attempt to cover up his violent misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Endangering community members in this manner and disregarding the law violates the victims’ civil rights and erodes trust by those the police are sworn to protect and serve. The Justice Department will aggressively prosecute officials who engage in abuses of their authority, including federal law enforcement officers.”
According to court documents, on the evening of June 20, 2020, Smith was on duty conducting security checks at the homes of members of Congress in Georgetown when he began pursuing two individuals riding motorized cycles. Though USCP policies prohibit vehicular pursuits outside of the Capitol grounds, except in emergencies and upon supervisory approval, Smith conducted the pursuit without seeking such approval.
While following the motorcyclists closely, but without his emergency lights on, Smith’s USCP cruiser struck one of the motorcyclists at the intersection of Wisconsin Avenue and M Street, Northwest. The crash knocked the cyclist into the air before he hit the asphalt roadway. As the victim lay in the intersection unconscious, Smith drove his cruiser around the victim and left the scene of the collision. Contrary to USCP policies, Smith did not notify anyone of the incident, take any action to seek medical assistance for the victim or ensure that no further harm came to the victim as he lay on the road. Hours after the collision, Smith falsified several USCP records in an attempt to cover up the events related to the incident.
The FBI Washington Field Office investigated the case. This matter was prosecuted by Assistant U.S. Attorney Timothy Visser and Trial Attorneys Sanjay Patel and Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section. Valuable assistance from former Assistant U.S. Attorney Kendra Briggs.
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