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16 December 2024
Resident of China Sentenced to 24 Months in Prison for Conspiring to Send Leading Electric Vehicle Company’s Trade SecretsRead the Press Release
Klaus Pflugbeil, 59, of Ningbo, China, was sentenced today to 24 months in prison for conspiring to send trade secrets that belong to a leading U.S.-based electric vehicle company (Victim Company-1). Pflugbeil, a resident of the People’s Republic of China (the PRC or China) and a Canadian and German national, and his co-defendant, Yilong Shao, who remains at large, are owners of a PRC-based business (Business-1) that sold technology used to make batteries, including batteries used in electric vehicles. Pflugbeil and Shao, former employees of a company that was purchased by Victim Company-1, took trade secrets from their employer, and later used the trade secrets to build a business that they marketed as a replacement for Victim Company-1’s products.
“In stealing trade secrets from an American electric vehicle manufacturer to use in his own China-based company, Pflugbeil’s actions stood to benefit the PRC in a critical industry with national security implications,” said Assistant Attorney General for National Security Matthew G. Olsen. “The Justice Department will mobilize every available resource to prevent our adversaries from advancing their global ambitions at the expense of U.S. national security.”
“The defendant built a business in China to sell sensitive technology that belongs to a U.S. company. His actions were bold — he even advertised that he was selling the victim’s products — because he thought, incorrectly, that he was outside the reach of U.S. prosecutors,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s sentencing sends a clear message to would-be offenders: my Office will do everything it can to protect American innovation and national security no matter where you try to hide.”
Victim Company-1 is a U.S.-based leading manufacturer of battery-powered electric vehicles and battery energy systems. In 2019, Victim Company-1 acquired a Canada-based manufacturer of automated, precision dispensing pumps and battery assembly. Prior to its purchase by Victim Company-1, the Canadian manufacturer sold battery assembly lines to customers who manufactured alkaline and lithium‑ion batteries for consumer use. The battery assembly lines contained or utilized a proprietary technology now owned by Victim Company-1: continuous motion battery assembly. The proprietary technology provided a substantial competitive advantage to Victim Company-1 in the lithium-ion battery manufacturing process.
Both Pflugbeil and his co-defendant Shao are former employees of the Canadian manufacturer, and Shao also worked for Victim Company-1. As detailed in court documents, by no later than 2019, Pflugbeil and Shao planned to use Victim Company-1’s trade secrets for their own business activities. Pflugbeil told Shao that he had “a lot of original documents” related to the technology and sought out more “original drawings” of the trade secrets. Shao confirmed, among other things, that, “we have all of original assembly drawings by PDF.”
The conspirators took measures to obfuscate that they had stolen trade secrets. For example, Pflugbeil wrote to Shao about a document he created based on one that Shao had stolen from Victim Company-1, “[its] in a different format, so it looks very original and not like a copy.”
In or about July 2020, Pflugbeil joined Business-1, a company previously established by Shao, which has since expanded to locations in China, Canada, Germany, and Brazil. Business‑1 makes the same precision dispensing pumps and battery assembly lines that the Canadian manufacturer developed. The battery assembly technology is related to the development of electric vehicles that can compete with U.S.-made vehicles. The potential for Chinese automakers to swamp the U.S. and global market with vehicles like those that can be built using this stolen technology presents a potential national security risk.
Business-1 was marketed by Pflugbeil as an alternative source for the sale of products that relied upon Victim Company-1’s trade secrets, publishing online advertisements on Google, YouTube, and LinkedIn. Pflugbeil repeatedly sent LinkedIn messages that named Victim Company-1 and said Business-1 was not infringing on any intellectual property:
Hello [name], I hope to get some of your busy time. As I like to introduce our company to you. We already have supplied companies such [a]s [list of U.S. Fortune 500 Companies by name] . . . We engineer and manufacture all of our products in-house, and we warrant that none of our products infringe any patents, copyrights, or other intellectual property rights of any third party.
The above reflects a blatant lie, told over and over—that Business-1’s products did not infringe on intellectual property rights of a third party. Pflugbeil also advertised products based on stolen trade secrets on Google. These ads were shown tens of thousands of times per week.
On or about September 11, 2023, undercover agents attended a trade show for the packaging and processing industries in Las Vegas, Nevada. The undercover agents posed as businesspeople who were interested in purchasing a battery assembly line from Business-1 to manufacture batteries at a facility in Long Island, New York. The undercover agents were introduced to Shao at the trade show and later to Pflugbeil via email.
Subsequently, on or about November 17, 2023, Pflugbeil sent, via email, a detailed 66-page technical documentation proposal to an undercover agent (UC-1). The proposal notes, “this technical documentation package contains [Business-1] proprietary information which must be kept confidential.” In reality, the proposal contained battery assembly trade secret information belonging to Victim Company-1: at least half a dozen drawings Pflugbeil used in the proposal and sent to UC-1 were, in fact, Victim Company-1’s information related to the battery assembly trade secret. The business proposal quoted the battery assembly line at over $15 million.
Assistant U.S. Attorneys Ellen H. Sise and Samantha Alessi for the Eastern District of New York and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
The investigation and prosecution were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.
Rensselaer Man Arrested and Charged with Sexual Exploitation of a ChildRead the Press Release
ALBANY, NEW YORK – Mark Tremblay, age 34, of Rensselaer, New York, was arrested today and charged with the sexual exploitation of a child. United States Attorney Carla B. Freedman and Erin Keegan, Special Agent in Charge of the Homeland Security Investigations (HSI), Buffalo Field Office, made the announcement.
According to a criminal complaint, on or about November 13, 2024, Tremblay used a child, born in 2023, to engage in sexually explicit conduct for the purpose of creating child pornography. Tremblay then distributed the produced images to another person with whom he was corresponding over the Internet. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Tremblay made an initial appearance today before United States Magistrate Judge Christian F. Hummel and was ordered detained. He faces at least 15 years and up to 30 years in prison, a fine of up to $250,000, and a supervised release term of at least 5 years and up to life. Tremblay may also be ordered to pay restitution to the victim of his offense and forfeit the device used in the offense. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Tremblay would also have to register as a sex offender upon his release from prison.
HSI is investigating this case with assistance from the New York State Police (NYSP) and the NYSP Internet Crimes Against Children Task Force. Assistant United States Attorney Allen J. Vickey is prosecuting this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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.
Raytown Man Pleads Guilty to Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Raytown, Mo., man pleaded guilty in federal court today to using a minor victim to produce child pornography.
Cecil L. Pulluaim, 54, pleaded guilty before U.S. District Judge Howard F. Sachs to two counts of producing child pornography and one count of possessing child pornography.
By pleading guilty today, Pulluaim admitted that he used a minor victim to produce videos of child pornography on two occasions in April 2023. Pulluaim also admitted that he was in possession of additional child pornography on June 16, 2023. Pulluaim admitted that he used his cell phone to produce the child pornography.
On June 16, 2023, Raytown police officers searched Pulluaim’s residence and seized his iPhone. A forensic analysis of the phone found five sexually explicit videos of the child victim, taken on two different days. In addition to these five videos of child pornography, which Pulluaim specifically pleaded guilty to producing, investigators found a dozen additional videos and photos of child pornography that Pulluaim admitted he also produced of the child victim.
Under federal statutes, Pulluaim is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 70 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Raytown, Mo., Police Department and the U.S. Secret Service.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Rantoul Man Convicted of Bank RobberyRead the Press Release
Urbana, Ill. – A federal jury returned a guilty verdict on December 11, 2024, against Troy Burke, 40, of Rantoul, Illinois, for bank robbery. Sentencing for Burke has been scheduled for May 2, 2025, at 2:30 p.m. at the U.S. Courthouse in Urbana, Illinois
During the two-day trial, the government presented evidence that on June 20, 2024, Burke walked into the Community Plus Federal Credit Union in Rantoul, Illinois indicating to the teller that he had a gun. He proceeded to remove the plastic partition separating the teller from the customer and threatened to hit her with it. Burke left the bank with more than $9,000 in cash and a GPS device the teller had secured in the stack of currency. Burke was stopped by Rantoul police a few blocks from the Credit Union and was found to be in possession of more than $9,000 cash and the GPS device from the bank.
Burke was arrested on June 20, 2024, and remains in the custody of the U.S. Marshals Service pending sentencing.
Statutory penalties for bank robbery are up to twenty years imprisonment, up to 3 years of supervised release, and a fine of up to $250,000.The case investigation was conducted by the Rantoul Police Department and the Federal Bureau of Investigation, Springfield Field Office. Timothy Sullivan and Bryan Freres represented the government at trial.
Rancho Cucamonga Man Sentenced to More Than 3 Years in Prison for Operating ‘Birth Tourism’ Scheme for Affluent Chinese ClientsRead the Press Release
LOS ANGELES – A San Bernardino County man was sentenced today to 41 months in federal prison for operating a “birth tourism” scheme that charged Chinese clients tens of thousands of dollars to help them give birth in the United States to obtain birthright U.S. citizenship for their children.
Michael Wei Yueh Liu (刘维岳), 59, of Rancho Cucamonga, was sentenced by United States District Judge R. Gary Klausner.
At the conclusion of a four-day trial, a jury on September 13 found Liu and Jing Dong, (董晶), 47, of Rancho Cucamonga, guilty of one count of conspiracy and 10 counts of international money laundering. Dong is expected to be sentenced in the coming weeks.
From at least January 2012 to March 2015, Liu and Dong ran a maternity house in Rancho Cucamonga. Liu and Dong rented apartments in Southern California to provide short-term housing and provided other services to pregnant women from China who traveled to the United States to give birth so their children would acquire U.S. citizenship. Typically, within one or two months after giving birth, the women returned to China.
Among the services Liu and Dong provided were assistance on how to obtain visas to enter the United States, customs entry guidance, housing, and transportation in the United States, as well as assistance applying for U.S. legal documents for the children of their customers.
Liu and Dong advised their customers on how to hide their pregnancies from the immigration authorities. Liu and Dong also knew – or deliberately avoided learning – that their customers lied on their visa applications submitted to immigration authorities to enter the U.S.
Generally, their customers’ visa applications falsely stated that the purpose of the trip to the United States was for tourism, when it was to give birth, and the length of the stay was days or weeks, when it was in fact months. The visas also misstated the location where the customers intended to stay, which was defendants’ maternity hotel.
Liu and Dong or their agents also advised their customers to fly to ports of entry with perceived less customs scrutiny, such as Hawaii, before flying to Los Angeles, to wear loose fitting clothing, to favor certain lines at customs that they perceived to be less strict, and on how to answer the customs officials’ questions.
Liu and Dong received money from overseas and used that money to promote their scheme.
Homeland Security Investigations, IRS Criminal Investigation, and the FBI investigated this matter. The Irvine Police Department and the San Bernardino County Sheriff’s Department provided substantial assistance.
Assistant United States Attorneys Gregory W. Staples and Kevin Y. Fu of the Orange County Office prosecuted this case.
Prominent Leader of Black Axe Extradited to United States for Conspiring to Engage in Internet Scams and Money LaunderingRead the Press Release
TRENTON, N.J. – A leader of the Cape Town Zone of the Neo Black Movement of Africa, also known as “Black Axe,” who was extradited from South Africa to the United States on wire fraud and money laundering charges, had his initial appearance today in Trenton federal court, U.S. Attorney Philip R. Sellinger announced today.
Enorense Izevbigie, aka “Richy Izevbigie,” aka “Lord Samuel S Nujoma,” 49, originally from Nigeria, is charged in a superseding indictment with two counts of wire fraud, wire fraud conspiracy, and money laundering conspiracy, spanning from 2011 to 2021. He had his initial appearance today, before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and was detained pending trial.
According to documents filed in this case and statements made in court:
Izevbigie was a leader of the Neo Black Movement of Africa, also known as “Black Axe,” an organization headquartered in Benin City, Nigeria that operates in various countries. Black Axe is organized into regional chapters known as “zones,” and Izevbigie was a leader within the Cape Town, South Africa, Zone.
From at least 2011 through 2021, Izevbigie and other conspirators worked together from Cape Town to engage in widespread internet fraud involving romance scams and advance fee schemes. Many of these fraudulent narratives involved claims that an individual was traveling to South Africa for work and needed money or other items of value following a series of unfortunate and unforeseen events, often involving a construction site or problems with a crane. The conspirators used social media websites, online dating websites, and voice over internet protocol phone numbers to find and talk with victims in the United States, while using a number of aliases.
The conspirators’ romance scam victims believed they were in romantic relationships with the person using the alias and, when requested, the victims sent money and items of value overseas, including to South Africa. Sometimes, when victims expressed hesitation in sending money, the conspirators used manipulative tactics to coerce the payments, including by threatening to distribute personally sensitive photographs of the victim.
The conspirators used the bank accounts of victims and individuals with United States-based financial accounts to transfer the money to South Africa. On certain occasions, the conspirators convinced victims to open financial accounts in the United States that the conspirators would then be permitted to use themselves. In addition to laundering money derived from romance scams and advance fee schemes, the conspirators also worked to launder money from business email compromises. In addition to their aliases, the conspirators used business entities to conceal and disguise the illegal nature of the funds.
The wire fraud conspiracy and wire fraud charges each carry a maximum term of 20 years in prison and a maximum fine of $250,000. The money laundering conspiracy charge carries a maximum term of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction, whichever is greatest.
Izevbigie, along with six named co-defendants, were arrested in South Africa in 2021. The six named co-defendants are awaiting extradition to the United States.
Anyone who believes they may be a victim may visit https://www.justice.gov/usao-nj/blackaxe for information about the case, including a questionnaire for victims to fill out and submit.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; and the FBI Legal Attaché Office at the United States Embassy in Pretoria, South Africa, under the direction of Legal Attaché John Connell; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Aaron Hatley in Newark, Resident Agent in Charge Todd Bratz in the Pretoria Resident Office, and Special Agent in Charge William Mancino of the Criminal Investigative Division, with the investigation leading to the charges.
U.S. Attorney Sellinger also thanked officials in South Africa for their assistance including the South African Directorate of Priority Crime Investigations (HAWKS), the South African Police Service, the South African National Prosecuting Authority & Asset Forfeiture Unit, the Department of Justice and Constitutional Development for the Republic of South Africa, and INTERPOL for their assistance in this case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Izevbigie to the United States.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Priority Transnational Organized Crime (PTOC) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Richard G. Shephard of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
osagiede.indictment.pdfPreviously Convicted Man Pleads Guilty to 2022 Murder of Woman in Broad DaylightRead the Press Release
WASHINGTON – Johnwann Elliott, 31, of Washington, D.C., pleaded guilty today to charges of second-degree murder while armed and attempted assault with a dangerous weapon for the 2022 murder of Nikia Young, 37, in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
The guilty plea, which is contingent upon the Court’s approval, calls for an agreed upon 21-year prison sentence, to be followed by five years of supervised release. The Honorable Maribeth Raffinan of the D.C. Superior Court scheduled sentencing for March 14, 2025.
According to the government’s evidence, at approximately 11:59 a.m., on March 15, 2022, the defendant exited a Metro bus at Minnesota Avenue and White Place Southeast and walked southwest toward the intersection of Minnesota Avenue and 23rd Street Southeast. At the same time, Nikia Young and another individual were walking northeast on Minnesota Avenue toward the same intersection. As Ms. Young and the other person crossed 23rd Street, the defendant walked up to them in the crosswalk and, in broad daylight, used a 380-caliber handgun to shoot Ms. Young from a close distance. The defendant fired seven times and struck Ms. Young five times—once in her face, three times in the chest, and once in the right hip. The defendant then fled the scene on foot, running and catching the same Metro bus that he had exited approximately two minutes earlier.
The defendant was arrested on May 19, 2022, inside of a hotel in Northeast Washington, D.C. and has been in custody ever since. At the time the defendant committed these offenses, he was on release pending trial in D.C. Superior Court for the unauthorized use of a vehicle and was on supervised release after serving a prison sentence for a robbery conviction in the same court.
This case was investigated by the Homicide Branch of the Metropolitan Police Department. Former Assistant U.S. Attorney Lisa Lindhorst investigated and indicted the case. It is being prosecuted by Assistant U.S. Attorney Charles R. Jones.
Pasadena Doctor Agrees to Plead Guilty to Conspiring with Attorney to Bilk More Than $3 Million from California’s Workers’ Compensation FundRead the Press Release
SANTA ANA, California – A physician who worked for an Inland Empire medical company has agreed to plead guilty to conspiring to defraud California’s workers’ compensation fund of millions of dollars by continuing to work on workers’ compensation matters after being suspended due to a prior health care fraud conviction, the Justice Department announced today.
Dr. Kevin Tien Do, 59, of Pasadena, agreed to plead guilty to one count of conspiracy to commit mail fraud and one count of subscribing to a false tax return. He is expected to make his initial appearance this afternoon in United States District Court in Santa Ana.
In his plea agreement, Do admitted that, from October 2018 to February 2023, he conspired to defraud the state of California of millions of dollars of health care funds by defrauding California’s Subsequent Injuries Benefits Trust Fund (SIBTF). The California SIBTF is a special fund administered by California’s workers’ compensation program to provide additional compensation to injured workers who already had a disability or impairment at the time of a subsequent injury.
Beginning in 2016, Do began to work for Liberty Medical Group Inc., a Rancho Cucamonga-based medical company, for which he would draft SIBTF-related medical reports that Liberty would then bill to the California SIBTF program. In October 2018, California suspended Do from participating in California’s workers’ compensation program, which included the SIBTF, because he had previously been convicted of federal health care fraud in 2003. Despite his suspension, Do continued to work for Liberty on SIBTF-related workers’ compensation matters.
Do continued to perform similar actions for Liberty that he had been doing before his October 2018 suspension, including compiling and editing reports related to the SIBTF program. To conceal that Do was unlawfully continuing to participate in the workers’ compensation SIBTF program after his suspension, Liberty’s owner came up with a plan. That plan was that Do would continue to author the SIBTF-related reports, which Liberty would then continue to mail to the California SIBTF for payment. Rather than listing Do’s name on the billing forms and the attached medical reports mailed to the California SIBTF, like they had had done before Do’s suspension, Liberty instead fraudulently listed other doctors’ names on the billing forms and attached medical reports, even though Do had drafted and compiled the reports. Do admitted that Liberty was paid more than $3 million by California SIBTF for such reports that Liberty mailed to the California SIBTF for payment after Do’s October 2018 suspension.
Do’s plea agreement also details that Liberty’s owner edited Do’s medical reports, even though that co-conspirator was not a doctor or other licensed medical professional.
Under California law, shareholders/owners of a medical corporation must be licensed in the practice of medicine or other related medical fields, such as a psychologist, registered nurse, or licensed physician assistant.
In his plea agreement, Do admitted that real owner of Liberty and Do’s co-conspirator was another person who was not a doctor or other medical professional, but rather, was a California attorney then employed as a prosecutor for the Orange County District Attorney’s Office, and who later became an Orange County Superior Court judge during the conspiracy. That true owner who was Do’s co-conspirator not only was a signatory on Liberty’s bank account, but also issued and signed Liberty’s checks to Do and others. The plea agreement specifies that much of the more than $3 million that the SIBTF paid Liberty during the years following Do’s suspension then flowed to another company controlled by Liberty’s owner and his wife, which totaled to more than $1.5 million.
Do also admitted that he failed to accurately report to the IRS all the money he had been paid by Liberty. Do admitted that on his 2021 tax return, he failed to report approximately $66,227 of the income that Liberty paid him.
Once Do enters his guilty plea, he will face a statutory maximum sentence of 20 years in federal prison for the mail fraud count and up to three years in federal prison for the tax fraud count.
The FBI, IRS Criminal Investigation, and the California Department of Insurance are investigating this matter.
Assistant United States Attorneys Charles E. Pell of the Orange County Office and Ryan J. Waters of the Asset Forfeiture and Recovery Section are prosecuting the case.
Osage Beach Nurse Pleads Guilty to Illegally Obtaining Fentanyl from HospitalRead the Press Release
KANSAS CITY, Mo. – An Osage Beach, Mo., nurse pleaded guilty in federal court today to illegally obtaining fentanyl from a hospital for his own use.
Charles Welch Jr., 65, waived his right to a grand jury and pleaded guilty before U.S. District Judge Roseann A. Ketchmark to a federal information that charges him with one count of obtaining a controlled substance by misrepresentation.
Welch, a certified registered nurse anesthetist at Lake Ozark Anesthesia, primarily provided anesthesia services at Lake Regional Hospital in Osage Beach. Welch was responsible for preparing various medications for use in daily medical procedures.
By pleading guilty today, Welch admitted that he stole fentanyl from the automated dispensing cabinets located in the hospital’s operating rooms from approximately July 1 through Aug. 21, 2023. Welch specifically pleaded guilty to fraudulently obtaining a vial of fentanyl which was for use in a medical procedure, by scanning the fentanyl to generate a label that Welch affixed to a syringe he had previously filled with saline, thus concealing the true contents of the syringe and enabling Welch to divert the fentanyl for his personal use.
On Aug. 16, 2023, during a routine restock of an automated dispensing cabinet, a pharmacy technician discovered a vial of midazolam and a syringe filled with a liquid and a “hydromorphone” label affixed to the syringe in a drawer used to temporarily store medications for procedures. The pharmacy technician alerted the hospital’s director of pharmacy that the drugs had been left in the drawer.
The director of pharmacy reviewed footage from surveillance cameras and witnessed Welch remove a vial of fentanyl and place the vial in his pocket. Welch then placed a fentanyl label on a syringe that he had previously filled with saline. During the same transaction, surveillance footage also captured Welch remove a carpuject of hydromorphone, place it in his shirt pocket, and affix a “hydromorphone” label onto a syringe which Welch had previously filled with saline.
The director of pharmacy then reviewed all the hospital’s available security footage, which went back 14 days, and identified other transactions where Welch exhibited similar conduct.
Welch admitted he diverted either fentanyl or hydromorphone on an almost daily basis until he was confronted in August 2023. Welch admitted that after diverting the controlled substances, he would put the drugs in his backpack and self-administer the drugs when he got home.
In addition to fraudulently labeling syringes, Welch also admitted to pulling more of a controlled substance than what was needed for a procedure. In some instances where only one vial of fentanyl was needed for a procedure, Welch would pull two fentanyl vials. Welch would use one vial for the procedure and divert the second vial for his personal use.
Welch also admitted to fraudulently documenting that patients received a particular dosage of medication on patient charts when he was aware the patient did not receive that dose. Welch made false statements on patient charts so that the medication he pulled for a procedure would reconcile with what the patient received.
Under federal statutes, Welch is subject to a sentence of up to four years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Bradley Cooper It was investigated by the Drug Enforcement Administration and the Food and Drug Administration, Office of Criminal Investigations.
Orleans Parish Woman Sentenced for Embezzling Money from Her EmployerRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that SHAVONDA CHAMBERS, age 44, of New Orleans, was sentenced on December 10, 2024 by U.S. District Judge Susie Morgan, for embezzling money from her employer.
According to court documents, SHAVONDA CHAMBERS was employed as a bookkeeper for a local business and was apprehended submitting false electronic payroll authorizations to an out-of-state payroll processing company. As a result of her false submissions, SHAVONDA CHAMBERS was able to steal and fraudulently divert more than $2.5 million dollars from her employer to financial accounts she controlled.
SHAVONDA CHAMBERS was sentenced to thirty-six (36) months of imprisonment, followed by three (3) years of supervised release. The defendant was also ordered to pay over 2.5 million dollars in restitution, and a mandatory special assessment fee of one hundred dollars.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Richard R. Pickens, II of the Financial Crimes Unit is in charge of the prosecution.
Norfolk man sentenced to more than 10 years in prison for trafficking guns and drugsRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced on Dec. 13 to 10 years and 11 months in prison for distribution of Para-fluorofentanyl and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on Dec. 28, 2023, Tramaine Waldell Riddick, 42, sold 4.4 grams of heroin and an AK47 rifle with a 30-round magazine and ammunition at his residence in a controlled purchase conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Chesapeake Police Department (CPD).
In multiple subsequent controlled purchases in January and February, Riddick sold 57.35 grams of suspected heroin, six firearms, and ammunition. One of the firearms Riddick sold was stolen, and during one of the controlled purchases Riddick sold a machinegun conversion device. The substances Riddick sold tested positive for heroin, para-fluorofentanyl, fentanyl, and xylazine. Riddick is attributed with possessing with intent to distribute or distributing 79 grams of fentanyl and 179 grams of cocaine.
On April 9, 2024, law enforcement conducted a search of Riddick’s residence and recovered four additional firearms and ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Mark G. Solesky, Chief of Chesapeake Police; and Ramin Fatehi, Norfolk Commonwealth’s Attorney, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney Jr.
Special Assistant U.S. Attorney Graham M. Stolle, an Assistant Commonwealth’s Attorney with the Norfolk Commonwealth’s Attorney Office prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:24-cr-74.
New Mexico man sentenced to prison for stealing Montana Historical Society documents; letters by wife of Western artist Charlie “C.M.” RussellRead the Press Release
HELENA — A New Mexico man who admitted stealing 100-year-old items, including letters by the wife of Western artist Charlie “C.M.” Russell, from the Montana Historical Society and selling them on eBay for profit was sentenced today to six months in prison, to be followed by one year of supervised release, and fined $4,000, U.S. Attorney Jesse Laslovich said.
The defendant, Brian Anthony D’Ambrosio, 50, of Sante Fe, New Mexico, pleaded guilty in July to theft of major artwork.
Chief U.S. District Judge Brian M. Morris presided. The court also ordered $22,508 restitution. The court allowed D’Ambrosio to self-report to prison.
“D’Ambrosio’s actions were intentional and calculated—designed to steal Montana’s cultural treasures so he could profit. The Montana Historical Society, and all Montanans, were victims of D’Ambrosio’s greed because these documents were deeply rooted in Montana history. Today, D’Ambrosio faced the consequences, and we hope this case serves as a deterrent to anyone considering similar criminal conduct,” U.S. Attorney Laslovich said.
The government in court documents said that D’Ambrosio’s actions targeted artifacts that would reap large profits, including a document tied to world-famous Western artist Charles M. Russell, and included a statement from the Montana Historical Society Staff about the scope of the damage D’Ambrosio caused:
“The items stolen by you (D’Ambrosio) from the collections belong to the people of Montana, not to you for your selfish, greedy purposes. Your actions forced us to implement stricter rules regarding access and use of historical documents, which impacts all future researchers…. The emotional and financial impacts will be felt for generations.”
The government alleged in court documents that D’Ambrosio, while claiming to conduct research at the Montana Historical Society, a museum located in Helena, stole items from the archives from about April 2022 to September 2023. The stolen items included letters written by Nancy Russell, the wife of renowned Western artist Charlie “C.M.” Russell. The stolen items were more than 100 years old, were of cultural heritage and exceeded $5,000 in value. D’Ambrosio then sold and attempted to sell the stolen items for profit on eBay. An undercover FBI agent posed as a would-be purchaser to confirm D’Ambrosio was the individual stealing the items from the Montana Historical Society and selling or attempting to sell the items on eBay for a profit, none of which was authorized.
The U.S. Attorney’s Office prosecuted the case. The FBI Art Crime Team and Helena Police Department conducted the investigation.
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New Jersey Man Admits to Wire Fraud Involving West Virginia PropertyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Chukwuemeka Okorocha, age 34, of Jersey City, New Jersey, has admitted to wire fraud.
According to court documents and statements made in court, Okorocha, also known as “Mecca,” was involved in a scheme concerning a real estate transaction in Hampshire County. As part of the scheme, Okorocha coordinated with a third party to impersonate a realtor to send an email to the closing agent with a payoff statement directing payment to an account controlled by Okorocha. Based on this fraudulent email, the closing agent transferred $332,904.37 to the account. Before the fraud was detected, Okorocha and another person spent $29,440.58 of the funds.
As a part of the plea agreement, Okorocha agreed to pay $29,440.58 in restitution.
Assistant U.S. Attorney Jarod Douglas is prosecuting the case on behalf of the government.
The case was investigated by the Federal Bureau of Investigation.
U.S. Magistrate Judge Robert W. Trumble presided.
Nebraska and Iowa Men Sentenced for Firearms ChargesRead the Press Release
COUNCIL BLUFFS, Iowa – Two Nebraska men and two Iowa men were sentenced for conspiracy to provide false statements during the purchase of firearms.
According to public court documents, in late October 2022 through May 2023, Alfredo Rios, Jr., 28, a Nebraska resident, Christian Javier Rios Magana, 23, a Nebraska resident, Martin Velazquez Trujillo, 49, an Iowa resident, and Victor Alfonso Magana-Ahumada, 38, an Iowa resident, conspired to make false statements to federally licensed firearm dealers to fraudulently obtain firearms. As part of the conspiracy, the firearms purchasers falsely stated they were the actual transferee or buyer of the firearm. The fraudulently acquired firearms were illegally shipped to Mexico.
On Thursday, December 12, 2024, Magana-Ahumada was sentenced to 30 months in federal prison. After completing his term of imprisonment, Magana-Ahumada will be required to serve a three-year term of supervised release.
On June 5, 2024, co-conspirators Alfredo Rios, Jr., Rios Magana, and Velazquez Trujillo each received five months’ terms of probation.
“The purchase of a firearm intended for someone else, is straw purchasing and it is illegal,” said Bernard G. Hansen, ATF Special Agent in Charge, Kansas City Field Division. “Doing so circumvents background checks and record keeping requirements that are intended to keep the public safe and impede access to firearms by prohibited and often violent criminals. Firearms trafficking is not a victimless crime; it is illegal and puts firearms in the hands of said prohibited and violent criminals. These investigations are a priority for ATF in our mission of reducing violent gun crime.”
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations, and the United States Postal Inspection Service.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
National Guard soldier appears in court on murder chargeRead the Press Release
AUGUSTA, GA: An Army National Guard soldier has been charged with murder after a weekend shooting in a Fort Eisenhower residence.
Natravien Landry, 25, of Abbeville, Louisiana, is charged via complaint with one count of murder, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. Landry was in court Monday for an initial appearance hearing before U.S. Magistrate Judge Brian K. Epps. A detention hearing is scheduled for Wednesday.
As described in court documents and testimony, Landry is an Army National Guard soldier assigned to the 1148th Transportation Company at Fort Eisenhower. He is alleged to have visited the residence in post housing at Fort Eisenhower early Saturday morning, Dec. 14, of a woman with whom Landry shares a child. Landry is accused of assaulting and shooting a man who was with the woman in her residence, and then leaving Fort Eisenhower. Landry was arrested about three hours later south of Atlanta on Interstate 85 during a traffic stop by the Meriwether County, Georgia, Sheriff’s Office, and deputies recovered a 9 mm pistol during the stop.
The U.S. Marshals Service took Landry into custody and transported him to the Lincoln County Jail, where he awaits further court proceedings.
Criminal complaints contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the Department of the Army Criminal Investigation Division, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Henry W. Syms Jr., Patricia G. Rhodes and Kelsey L. Scanlon, and Special Assistant U.S. Attorney Capt. Jacqueline M. Stryker.
Nahant Woman and Winthrop Man Sentenced for Fraud and Tax EvasionRead the Press Release
BOSTON – A Nahant woman and Winthrop man were sentenced in federal court in Boston for conspiring to commit wire fraud and tax evasion.
Gary P. DeCicco, 65, was sentenced by U.S. District Court Judge Richard G. Stearns to 15 months in prison, which he has already served, to be followed by three years of supervised release. Pamela M. Avedisian, 61, was sentenced by U.S. District Court Judge Richard G. Stearns to one year of supervised release, with the first four months to be served in home confinement. DeCicco and Avedisian were ordered to pay $425,754 in restitution and to forfeit $650,000. In June 2024, DeCicco and Avedisian pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the United States. DeCicco and Avedisian were indicted by a federal grand jury in January 2018.
Between April 2012 and February 2013, DeCicco repeatedly told the IRS that he did not have the ability to pay his over $340,000 tax liability and that he had very little cash, no vehicles or real property and no ownership interest in any asset with a positive value. However, DeCicco had ownership interests in several businesses, vehicles and real properties titled in his name and the names of Avedisian and others, in order to conceal those assets from the IRS during that time period. In addition, beginning in March 2013, after the IRS accepted DeCicco’s proposed monthly payment plan (based on the false information DeCicco provided about his assets and income) and instead of making the agreed-upon monthly payments, DeCicco bought and sold numerous real properties, boats and high-end cars and concealed those assets and his income from the IRS, often with Avedisian’s assistance.
In addition, Avedisian owned a property in Nahant that was subject to a mortgage in excess of $1 million. In October 2015, DeCicco and Avedisian conspired to defraud the mortgage holder by proposing the sale of the property for significantly less than the outstanding mortgage, in what is commonly referred to as a “short sale.” By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated and act independently, allowing sellers to cede their ownership of the property in exchange for the short-selling bank’s agreement to release them from their unpaid mortgage debt. In order to get approval for the sale, DeCicco and Avedisian concealed their long-term romantic and business relationship from the loan servicing company and falsely represented that Avedisian could no longer make payments towards the mortgage on the property. In fact, just two months before the “short sale” closed, Avedisian purportedly received $3.5 million from the sale of another asset to DeCicco.
United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Jonathan Wlodyka, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and Neil J. Gallagher, Jr. of the Public Corruption & Special Prosecutions Unit prosecuted the case.
Muskogee Resident Sentenced for Attempted RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jacob Matthew Staton, age 29, of Muskogee, Oklahoma, was sentenced to 105 months in prison for one count of Attempted Robbery in Indian Country.
The charge arose from an investigation by the Federal Bureau of Investigation and the Muskogee Police Department.
On July 11, 2024, Staton pleaded guilty to the charge. According to investigators, on January 4, 2020, Staton attempted to rob a shopper at gunpoint in a Muskogee parking lot. When Staton’s target refused, Staton pistol whipped the shopper, then fired off two rounds in the shopper’s direction as the shopper fled. The crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Staton will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Jordan Howanitz represented the United States.
Michigan Man Admits to Drug TraffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael Robinson-Brown, 26, of Detroit, Michigan, admitted today to the distribution of methamphetamine.
According to court documents and statements made in court, Robinson-Brown was one of the leaders of a drug trafficking organization operating in Monongalia County. Robinson-Brown would supply the methamphetamine to others to sell.
Robinson-Brown faces up to 20 years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Zelda Wesley is prosecuting the case on behalf of the government.
The Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mexican National Sentenced to Prison for Drug Conspiracy Involving More Than 240 Pounds of Fentanyl and Nearly 100 Pounds of CocaineRead the Press Release
CLEVELAND – Ronald Rendon-Luna, 37, a Mexican national residing in Painesville, Ohio, has been sentenced to 151 months in prison by U.S. District Chief Judge Sara Lioi, after he pled guilty to engaging in a drug-trafficking conspiracy and possession with intent to distribute controlled substances and being an alien in possession of firearms. He was also ordered to serve three years of supervised release.
According to court documents, the Cartel, Gangs, Narcotics and Laundering Task Force of the FBI-Cleveland Division conducted a long-term drug-trafficking investigation that led to the arrest and successful prosecution of Rendon-Luna and three other co-conspirators, including two individuals with direct connections to the Sinaloa Cartel based in Culiacán, Mexico.
During the investigation, law enforcement officials discovered that, from about June 2022 through January 2023, the leader of the conspiracy, Nefer Ojeda-Elenes, 32, of Upland, California, conspired with Rendon-Luna to use residences in Cleveland and Painesville, and two storage units in Cleveland and Middleburg Heights, to store illegal drugs and proceeds from the sales of the illegal substances. Rendon-Luna, on behalf of Ojeda-Elenes, traveled to area hotels to meet a third co-conspirator, Cameron Harris, 29, of Dayton, who further distributed the drugs in the Dayton, Ohio area. A fourth individual, Trino Alexander Briceno-Matheus, 31, of Miami Beach, Florida, also participated in the conspiracy and is known to have met with Rendon-Luna at an area hotel to pick up approximately $149,640 in proceeds earned from illegal drug activities.
This organization was responsible for distributing approximately 111 kilograms of fentanyl, and approximately 42 kilograms of cocaine during the course of the conspiracy.
“These criminals used their Mexican Cartel connections to bring millions of doses of fentanyl—each one potentially fatal—into our communities and distribute those poisons across our state,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “Every day, dangerous drugs like the fentanyl and cocaine that these defendants imported and peddled on our streets destroy lives. Those who seek to expand their illegal drug trade to our District should know that we will use all tools available to stop them from endangering our residents’ lives and the safety of our neighborhoods.”
During a federal search warrant executed at the related residences and storage units, law enforcement officials found illegal drugs in a storage unit, and confiscated several weapons, including an AK-47 and an AR-15 from Rendon-Luna’s Painesville home.
Rendon Luna’s co-conspirators were previously sentenced.
Ojeda-Elenes was sentenced Sept. 17, 2024, to 228 months in prison after pleading guilty to conspiracy and possession with intent to distribute a controlled substance. He was also ordered to serve five years of supervised release.
Harris was sentenced Aug. 20, 2024, to 151 months in prison after pleading guilty to conspiracy and possession with intent to distribute a controlled substance. He was also ordered to serve five years of supervised release.
Briceno-Matheus was sentenced July 23, 2024, to 30 months in prison and three years of supervised release after pleading guilty to conspiracy and possession with intent to distribute controlled substances, and interstate transportation in aid of racketeering.
This case was investigated by the FBI-Cleveland Division, with assistance from the Cleveland Division of Police, U.S. Border Patrol (USBP), U.S. Coast Guard Investigative Services, Moreland Hills Police Department, Ohio Bureau of Criminal Investigation & Identification, Ohio State Highway Patrol, Bedford Police Department, Internal Revenue Service, Parma Police Department, Solon Police Department, Ohio Adult Parole, Ottawa County Drug Task Force, Shaker Heights Police Department, Cuyahoga County Sheriff’s Office, Brooklyn Police Department, North Royalton Police Department, Greater Cleveland Regional Transit Authority Police Department, Lake County Sheriff’s Office, Painesville Police Department, Ohio Narcotics Intelligence Center, Ohio HIDTA, U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The specific mission of the OCDETF Cleveland Strike Force is to disrupt and dismantle major criminal organizations and subsidiary organizations, including criminal gangs, transnational drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security and are related to the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Northern District of Ohio. The OCDETF Cleveland Strike Force is composed of agents and officers from the FBI, DEA, ATF, Homeland Security Investigations, USMS, U.S. Postal Inspection Service, Internal Revenue Service, and USBP, along with task force officers from numerous local law enforcement agencies, including the Cleveland Division of Police. Prosecutions are led by the Office of the United States Attorney for the Northern District of Ohio.
The case was prosecuted by Assistant U.S. Attorney Marc Bullard for the Northern District of Ohio.
Marshall County Man Admits to Child Pornography ChargeRead the Press Release
WHEELING, WEST VIRGINIA – Ryan Bobby Schnettler, 34, of Benwood, West Virginia, admitted today to possessing child pornography.
According to court documents and statements made in court, Schnettler was under supervision because of a prior sex offense conviction. At a home visit, officers found undocumented phones and seized them. Schnettler admitted to going into chat rooms where he pretended to be a 17-year-old male to talk to minors. After Schnettler’s phones were seized, law enforcement obtained a search warrant and searched the phones, locating hundreds of images of child sexual abuse material. The phone also had screenshots of chats with minor females.
Schnettler faces up to 20 years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Jennifer Conklin is prosecuting the case on behalf of the government.
The Federal Bureau of Investigation and the U.S. Probation Office investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Lowell Man Charged with Sex Trafficking and Transporting Victim Through Four StatesRead the Press Release
BOSTON – A Lowell, Mass. man was arrested on Friday and charged with sex trafficking a victim in Massachusetts, Nevada, Rhode Island and New York.
Melando Streety, a/k/a “Prez,” 41, was charged with sex trafficking by force, fraud, or coercion, and five counts of transporting a person to engage in prostitution. Streety was arrested in Michigan and will make an initial appearance in federal court in Detroit.
According to the indictment, beginning in September 2023, and continuing to December 2023, Streety caused a victim to engage in commercial sex through the use of various means, including force, threats of force, fraud and coercion. During that period, he also transported the victim from Nevada to Massachusetts, and then to Rhode Island and New York, all to cause to the victim to engage in prostitution.
The charge of sex trafficking by force, fraud, or coercion carries a mandatory minimum sentence of 15 years in prison, with a maximum sentence of life in prison, at least five years of supervised release and a fine of up to $250,000. Each count of transporting a person to engage in prostitution provides a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Members of the public who have information regarding this case should call 888-221-6023, option 5.
United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by the Cambridge Police Department and the Lowell Police Department. Assistant U.S. Attorney Brian A. Fogerty of the Human Trafficking & Civil Rights Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
LeFlore County Resident Sentenced for Fentanyl DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jada Marie Ray, age 33, of Poteau, Oklahoma, was sentenced to 6 months in prison for one count of Distribution of Fentanyl.
The charge arose from an investigation by the Oklahoma Bureau of Narcotics, the District 16 Drug Task Force, and the Drug Enforcement Administration.
On July 23, 2024, Ray pleaded guilty to the charge. According to investigators, on January 5, 2023, Ray distributed twenty pills containing fentanyl, a Schedule II controlled substance.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Ray will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Jordan Howanitz represented the United States.
Kanawha County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Eddie Wayne Chapman Jr., 39, of St. Albans, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on July 18, 2024, Chapman possessed a backpack that was seized by law enforcement. Chapman admitted that the seized backpack contained a loaded Smith & Wesson SD9 VE 9mm pistol and two ammunition magazines. Chapman further admitted that the backpack contained approximately 65 grams of controlled substances containing fentanyl.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Chapman knew he was prohibited from possessing a firearm because of his prior felony convictions for being a felon in possession of a firearm and possession with intent to distribute methamphetamine in United States District Court for the Southern District of West Virginia on October 23, 2017, and for conspiracy to operate a clandestine drug laboratory in Kanawha County Circuit Court on September 30, 2010.
Chapman is scheduled to be sentenced on March 10, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Kanawha County Sheriff’s Office.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney JC MacCallum is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-193.
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Justice Department Finds Arizona’s Department of Child Safety Discriminates Against Parents and Children with DisabilitiesRead the Press Release
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The Justice Department today announced its findings that the State of Arizona’s Department of Child Safety (DCS) violates Title II of the Americans with Disabilities Act (ADA) by discriminating against parents, including foster parents and other caregivers, and children with disabilities.Following a comprehensive investigation, the department found DCS failed to communicate effectively with parents and children with hearing disabilities, including by not providing interpreters. DCS also failed to reasonably accommodate the needs of parents with disabilities by, for example, not providing information in a simplified form. Finally, DCS denies parents with disabilities an equal chance to participate in and benefit from DCS programs and services.
“Under the ADA, parents and children with disabilities are entitled to fair and equal treatment by child welfare agencies,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Over four million parents with disabilities live in the United States, and discriminatory actions by child welfare agencies can have devastating and permanent consequences for parents and children. The Civil Rights Division is committed to ensuring that unlawful discrimination does not interfere with a parent’s opportunity to stay with or be reunited with their child and that separations are not prolonged because a child welfare agency does not give parents the effective communication and reasonable accommodations that the ADA guarantees.”
“Parents and children with disabilities deserve to be treated with dignity,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “Our office will continue to work with the Civil Rights Division to guarantee that parents and children with disabilities are protected under the law, and to ensure that the Department of Child Safety more meaningfully accommodates disabilities in the pursuit of better outcomes for families.”
The department provided written findings in a letter to Arizona and DCS detailing the minimum steps DCS must take to fix the identified violations. The department’s letter explains DCS violates the ADA by denying effective communication and auxiliary aids and services to parents, caregivers and children with hearing disabilities. For example, DCS did not get American Sign Language (ASL) interpreters for deaf and hard of hearing parents, caregivers and children, including during important meetings and when children were removed from their homes. And DCS did not communicate with parents with vision disabilities and other disabilities that affect communication in ways those parents could understand. As a result, parents, caregivers and children with disabilities could not understand what was happening at times during their DCS cases and interactions with DCS.
The letter also documents DCS’s failure to make reasonable accommodations that parents with disabilities need, even though those accommodations could help parents address DCS’ concerns. For instance, DCS had safety concerns when parents with intellectual and developmental disabilities, one of whom also has a vision disability, had trouble making bottles and testing bath water temperature. But DCS did not consider whether simple accommodations could help the parents safely do those tasks, like a bottle with large-print measurements or a digital thermometer that uses colored lights or beeps to alert parents if bathwater is too hot or cold.
Finally, the department found that DCS also does not give parents with disabilities the chance to equally participate in DCS programs and services. For example, DCS relies on stereotypes and unfounded assumptions about parents with disabilities. In one instance, DCS delayed reunification based only on generalized concerns about whether a mother with autism and attention deficit hyperactivity disorder (ADHD) could safely care for her young child because of her disabilities. But those concerns were based on stereotypes and speculation, not specific things the mother did.
If you or someone you know has a complaint about disability discrimination by DCS, please call 1-888-394-3540 (for TTY, dial 711 first) or file a complaint here. You can find more information about the rights of parents with disabilities here and in joint technical assistance from the Justice Department and Department of Health and Human Services. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Announces Significant Progress in Policing Reforms by the Baltimore Police Department and the City of BaltimoreRead the Press Release
The Justice Department and City of Baltimore filed a joint motion on Friday seeking court approval to declare the city and the Baltimore Police Department (BPD) in full and effective compliance with key consent decree requirements related to First Amendment-protected activities, community oversight and coordination with Baltimore City school police.
The joint motion is based on BPD’s consistent progress towards achieving the goals of the consent decree. The independent monitor’s reports on these topics found BPD in full and effective compliance with all three sections. If the court grants the motion, BPD must maintain compliance with the provisions for one year before the court can terminate these sections of the consent decree.
“The First Amendment’s protections are fundamental to a free society, and the Baltimore Police Department has successfully implemented reforms proven to protect people’s rights during protests and demonstrations,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The 2020 racial justice demonstrations and protests posed serious challenges to law enforcement nationwide. Because of the hard work done under the consent decree to prepare officers for encounters with the community during demonstrations, the Baltimore Police Department has been able to successfully navigate these moments, while supporting the right to protest and keeping the peace. The Justice Department remains committed to collaboratively working with the Baltimore Police Department and the community to ensure constitutional and fair policing — the people of Baltimore deserve nothing less.”
The Justice Department opened a comprehensive investigation of BPD practices in 2015 after considering requests from city officials and community members in the wake of the death of Freddie Gray. The city agreed to, and the court approved, a consent decree in 2017 to resolve the violations identified by the investigation and their root causes.
Since approval of the consent decree, BPD has revised policies and training to ensure officers respect First Amendment protected activity, including the right to peacefully record police officers performing their duties in public. According to the monitor’s reports, key accomplishments include:
- No evidence that BPD obstructs individuals’ ability to observe or record police activity.
- Almost no incidents in which BPD officers violated the First Amendment between Jan. 1, 2020, and June 30, 2022, though BPD officers have had thousands of interactions with the public during that period.
- BPD demonstrated compliance with the consent decree’s requirements related to protest activity during the 2020 racial justice protests, protests related to a speech by the Vice President of the United States in 2020 and a separate protest in November 2023.
The consent decree also required the city to work with community leaders to better understand challenges to civilian oversight in Baltimore and how to improve accountability when working with the Baltimore City school police. The monitor’s reports show that BPD has achieved those objectives, including implementing certain recommendations from the Community Oversight Task Force and improving transparency and coordination regarding its interactions with the Baltimore City school police.
In addition to these reforms, BPD continues to make significant progress in other key areas of the consent decree. For example:
Stops, Searches and Arrests
- BPD implemented new policies and training on how to make lawful arrests and the independent monitor has determined that BPD makes significantly fewer arrests without probable cause.
- Notably, cases in which people who are arrested by BPD are released without being charged by prosecutors, which can indicate an unlawful arrest, decreased 91% between 2020 and 2022 — from an average of 43 per month to four per month.
Transportation of People in Custody
- BPD successfully implemented reforms to ensure the safe transportation of people in custody and officer assistance and support. If the court grants the parties’ joint motion and finds these additional sections of the decree are in full and effective compliance, nearly 30% of the substantive sections of the consent decree will be in full and effective compliance. If BPD maintains compliance with these sections for one year, the requirements could be successfully terminated.
Responding to and Interacting with People with Behavior Health Issues
- BPD officers now use force less frequently and are improving compliance with constitutional requirements and BPD policy.
- BPD and the city also have worked to divert behavioral health calls that do not require a law enforcement response.
- When BPD does respond to behavioral health calls, BPD has improved its response and more often resolves incidents without use of force or arrest.
Since January 2021, the Justice Department has opened 12 investigations into law enforcement agencies pursuant to 34 U.S.C. § 12601 and has been actively monitoring over a dozen agreements with law enforcement agencies that were secured prior to that period. Since 2021, the department has successfully concluded agreements and portions of consent decrees with the Yonkers, New York Police Department; the Albuquerque, New Mexico, Police Department; the Suffolk County, New York, Police Department; the Portland, Oregon, Police Bureau; and the Seattle Police Department.
The department has issued findings reports concerning several agencies including: Louisville, Kentucky, Metro Police Department; the Minneapolis, Minnesota, Police Department; the Phoenix, Arizona, Police Department; the Lexington, Mississippi, Police Department; the Trenton, New Jersey, Police Department; the Memphis, Tennessee, Police Department; the Worcester, Massachusetts, Police Department, and the Mt. Vernon, New York, Police Department.
In Louisville, the department entered into a court enforceable agreement with Louisville Metro Government to resolve its findings.
Investigations are ongoing regarding the Louisiana State Police; the New York City Police Department’s Special Victims Division; the Oklahoma City, Oklahoma, Police Department; and the Rankin County, Mississippi, Sheriff’s Department.
Irish brothers sentenced to 18 months in prison for defrauding elderly homeowners across the countryRead the Press Release
Seattle – Two brothers from Ireland were sentenced today in U.S. District Court in Seattle to 18 months in prison for conspiracy to commit wire fraud for their theft of more than $400,000 from a Shoreline, Washington, homeowner, and other victims across the country, announced U.S. Attorney Tessa M. Gorman. Patrick McDonagh, 35, and Matthew McDonagh, 34, were arrested by U.S. Customs and Border Protection in mid-June and were charged federally in mid-July. They pleaded guilty in September 2024. At the sentencing hearings U.S. District Judge John H. Chun called their actions, “terrible and serious criminal conduct.”
“The defendants in this case preyed on our elderly neighbors – coming into their homes and peddling lies about repairs that seemed urgent so that the homeowner would write whatever checks were needed to preserve their homes,” said U.S. Attorney Gorman. “In Washington State last year our elderly were defrauded of some $88 million. Our elder fraud prosecutors are doing all they can to hold fraudsters accountable.”
According to records filed in the case, the brothers were part of a group that traveled the country scamming homeowners – especially the elderly – by falsely representing a home needed urgent repairs. One older homeowner in the Shoreline neighborhood north of Seattle, lost about $435,000 to the scheme.
The men first approached the victim in January 2024, claimed they were working in the neighborhood and had noticed that the victim had a hole in his roof. The men offered to fix the hole and remove the moss from the roof. Over the course of a few days, they pressured the victim to write them checks for their “services” of $15,000, $20,000, and $26,000. They also claimed that the victim’s foundation was cracked, and they said they would repair that with a “titanium tie rod system.”
The roof had no hole, and the foundation was not failing. However, the men dug trenches and poured some concrete to make it appear work was done, and each day they pressured the victim to write more checks. They even demanded an extra $20,000 for “taxes.” Ultimately, they demanded the victim wire $200,000 to a third party for building supplies – again far in excess of any work they claimed to have done. In all the brothers stole $435,000 from the victim. Quick work by a Shoreline Detective and the King County Prosecutor’s Office resulted in the recovery of the wired funds.
The FBI investigation connected the brothers to contractor fraud complaints in Oregon and Illinois. In Oregon, Patrick McDonagh represented to three different victims that he was affiliated with a local legitimate construction firm, when in fact he was not. Those homeowners paid as much as $29,000 for foundation work that was never completed as promised. In Illinois, Matthew McDonagh claimed he would repave a victim’s driveway and rebuild a retaining wall for $99,000. After the victim paid $75,000, the work was poorly done and damaged the victim’s house. The value of any work done was significantly less than what was paid.
The defendants have agreed to make restitution to the victims in the case. This includes $235,000 to the Shoreline victim, nearly $50,000 to the three victims in Oregon, $75,000 to a victim in Illinois, and more than $673,000 to a victim in Bellevue, Washington.
Speaking in court today, the Shoreline, Washington victim said, “They were aggressive, relentless in their pursuit of more and more money. They preyed on my trust and my faith…. I feel ashamed, frustrated, and betrayed and now I don’t trust others.”
The FBI is investigating this case and was assisted by the Shoreline Police Department, and the U.S. Border Patrol’s Blaine and Spokane Sector’s Anti-Smuggling Units (ASU).
The FBI reminds the public of red flags for contractor fraud:
- The contractor knocks on your door looking for business because they are “in the area” and uses aggressive sales tactics.
- The contractor pressures you for an immediate hiring decision.
- The contractor accepts only cash as payment and demands full payment before starting any work.
- In the sales pitch, the contractor claims to have materials left over from a previous job.
Tips to avoid contractor fraud:
- Always get multiple estimates for any work you want done.
- Ensure contractors are licensed and insured. Look them up at Washington State’s Department of Labor & Industries website at https://secure.lni.wa.gov/verify/
- Check with consumer protection agencies such as the Better Business Bureau and Federal Trade Commission to search for complaints against a contractor.
The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar. Ms. Staniar serves as the Criminal Elder Fraud Coordinator for the U.S. Attorney’s Office, Western District of Washington.
To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.
Honduran National Guilty of Illegal Re-Entry, Faces Enhanced Sentence for Prior Felony ConvictionRead the Press Release
NEW ORLEANS – U.S. Attorney Duane Evans announced today that ALVARO LUIS ALCERRO-BANEGAS (“ALCERRO-BANEGAS”), age 38, pled guilty on December 10, 2024 to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a) and Title 8, United States Code, Section 1326(b)(1).
According to court documents, ALCERRO-BANEGAS, reentered the United States after being previously deported on September 2, 2022. ALCERRO-BANEGAS, a Honduran national, came to the attention of Immigration and Customs Enforcement after his arrest by the Jefferson Parish Sheriff’s Office on March 2, 2024. On January 18, 2017, in the United States District Court, Southern District of Florida, ALCERRO-BANEGAS was sentenced to 18 months in federal prison, after previously being found guilty of illegal re-entry after deportation.
ALCERRO-BANEGAS faces up to two years imprisonment, up to a $250,000 fine, up to one year of supervised release, and a mandatory $100 special assessment fee. However, because of his prior felony conviction, ALCERRO-BANEGAS also faces a sentencing enhancement of up to 10 years imprisonment.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Founder of Iranian Company Arrested for Providing Material Support to the Islamic Revolutionary Guard Corps (IRGC), and for Scheme to Procure Sensitive U.S. Technology for Use in IRGC Military Drones, One of Which Killed Three U.S. ServicemembersRead the Press Release
Mahdi Mohammad Sadeghi, 42, a dual U.S.-Iranian national of Natick, Massachusetts, and Mohammad Abedininajafabadi, also known as Mohammad Abedini (Abedini), 38, of Tehran, Iran, have been charged with conspiring to export sophisticated electronic components from the United States to Iran in violation of U.S. export control and sanctions laws. Abedini is also charged with providing material support to a foreign terrorist organization (FTO), that resulted in the deaths of three U.S. service members who were killed by a one-way attack Unmanned Aerial Vehicle (UAV), also known as a drone, on a military base in Jordan.
Sadeghi was arrested and made his initial appearance today in the District of Massachusetts. Abedini was also arrested today in Italy by Italian authorities at the request of the United States.
“Today, the Justice Department has charged, and our foreign partners have taken into custody, Mohammad Abedini, who we allege supplied sensitive technology used by the Iranian military to kill three American servicemembers in Jordan earlier this year,” said Attorney General Merrick B. Garland. “In addition, we have charged and arrested Mahdi Mohammad Sadeghi, a dual U.S.-Iranian citizen, for conspiring with Abedini to export sensitive U.S. technology to Iran. Today’s arrests demonstrate that the Justice Department will hold accountable those who enable the Iranian regime to continue to target and kill Americans and undermine the national security of the United States.”
“Earlier this year, Iran-backed militias murdered three American soldiers and wounded dozens more in a brutal drone attack at the Tower 22 base in Jordan,” said Deputy Attorney General Lisa Monaco. “Today, working with our partners here and abroad, we have charged and arrested two men who conspired to evade U.S. sanctions and supply the Iranian government with the type of drone navigation technology used in that attack. Our message is unmistakable: if you provide support to the Iranian regime’s campaign of terror and violence targeting Americans – we will find you, arrest you, and hold you accountable in a U.S. court, no matter where you are.”
“This case reflects our commitment to pursuing those who unlawfully aid Iran’s military drone program and to seeking justice for the U.S. servicemembers killed at the hands of the IRGC-backed militants earlier this year,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Export laws exist to keep cutting-edge U.S. technology out of the hands of foreign terrorist organizations. When sensitive drone technology is supplied to the IRGC – as alleged in this case – it places our military at risk and imperils American citizens.”
“These defendants are charged with supplying sensitive technology to an Iranian company that develops technology the IRGC uses in its one-way attack drones to commit acts of terror around the world,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Department of Commerce Bureau of Industry and Security (BIS). “Export crimes are much more than just regulatory violations – they enable our adversaries to engage in numerous malign activities harmful to U.S. interests, including the sowing of terror worldwide.”
“The FBI will continue to aggressively use all of our authorities to investigate and arrest anyone who assists the Government of Iran in obtaining technology that can be used for deadly purposes,” said FBI Deputy Director Paul Abbate. “These perpetrators allegedly facilitated the transfer of electronic components to an Iranian company which one of them owned. According to the charges, the company owner then supplied the IRGC with drone technology that was used in various terrorist acts, including an attack on a U.S. military base in Jordan which killed three servicemembers and injured dozens more. Such acts are wholly unacceptable, and the FBI will work tirelessly with our partners to cut off illegal transfers of technology to foreign terrorists and other adversaries.”
“Holding culpable people accountable for the death and maiming of U.S. service men and women bravely serving our nation abroad is about as important a prosecution as there is. These allegations make clear the grievous harm that can result when highly sophisticated American technologies subject to export controls end up in the hands of our adversaries,” said U.S. Attorney Joshua S. Levy for the District of Massachusetts. “These criminal charges are the direct product of the dogged work of the FBI and the Department of Commerce, in close collaboration with DOJ lawyers, as part of the Disruptive Technologies Task Force launched in February 2023, and I commend their outstanding work.”
According to court documents, Abedini is the founder and managing director of an Iranian company, San’at Danesh Rahpooyan Aflak Co. (SDRA or SADRA), that manufactures navigation modules used in the IRGC’s military drone program. SDRA’s main business is the sale of a proprietary navigation system — known as the Sepehr Navigation System — to the IRGC, which the United States designated as an FTO on April 15, 2019. The primary application of SDRA’s Sepehr Navigation System is for use in UAVs, as well as cruise and ballistic missiles. Sadeghi is currently employed by a Massachusetts-based microelectronics manufacturer (U.S. Company 1) and was one of the founders of a Massachusetts-based technology company (U.S. Company 2) that specializes in wearable sensors that provide kinetic monitoring for fitness applications.
As alleged in court documents, Abedini, Sadeghi, and others conspired to evade U.S. export control and sanctions laws by procuring U.S. origin goods, services, and technology from, among others, U.S. Company 1 and causing those goods, services, and technology to be exported or otherwise supplied to Iran and, in particular, Abedini’s Iranian company, SDRA.
As further alleged, in or around 2016, Sadeghi traveled to Iran to request funding for U.S. Company 2 from the Iranian National Elites Foundation (INEF), which is an Iranian governmental organization whose main purpose is to recognize, organize, and support Iran’s elite national talents. In exchange for funding for U.S. Company 2, which Sadeghi’s company ultimately received from the INEF, Sadeghi and others created a second company in Iran (Iranian Company 1). Shortly after forming Iranian Company 1, Sadeghi, through Iranian Company 1, entered into a contract with SDRA for the purchase of SDRA’s technology. It is also alleged that, since in or around 2016, on multiple occasions, Sadeghi has helped Abedini procure U.S. export-controlled electronic components for Abedini’s use in Iran.
Due to U.S. laws restricting exports to Iran, Abedini established a Switzerland front company for SDRA, Illumove SA (Illumove). With Sadeghi’s assistance, Abedini, through Illumove, entered into a contract with U.S. Company 1 to develop a mechanism to evaluate U.S. Company 1’s electronic components, including sophisticated semiconductors. Sadeghi and Abedini subsequently caused U.S.-origin goods, services, and technology to be transferred to Iran, through Illumove, for the benefit of SDRA. Certain of the electronic components that Abedini obtained through Illumove were the same types of electronic components used in SDRA’s Sepehr Navigation System.
Abedini is also charged with providing material support to a foreign terrorist organization, the IRGC, specifically, the IRGC Aerospace Force, which is the strategic missile, air, and space force within the IRGC. Since at least in or about 2014, SDRA has had multiple projects with the IRGC Aerospace Force, including projects for guided rockets and integrated navigation systems. As alleged, between 2021 and 2022, approximately 99% of SDRA’s sales of the Sepehr Navigation System, which are used in IRGC one-way attack drones, were to the IRGC’s Aerospace Force.
On Jan. 28, three U.S. service members were killed, and more than forty others were injured, in a drone attack by IRGC-backed militants on a military base located in northern Jordan, known as Tower 22. According to court documents, FBI analysis of the drone that was recovered from the site of the attack showed that the drone was an Iranian Shahed UAV and that the navigation system used in the drone was the Sepehr Navigation System, which was manufactured by Abedini’s company, SDRA.
Sadeghi and Abedini were charged by criminal complaint with one count of conspiracy to violate the International Emergency Economics Powers Act, which carries a penalty of up to 20 years in prison, three years supervised release, and a fine of up to $1 million. Abedini was also charged with one count of conspiracy to provide material support to a Foreign Terrorist Organization, resulting in death, and one count of provision and attempted provision of material support to a Foreign Terrorist Organization, resulting in death, which carries a penalty of up to life in prison, lifetime supervised release, and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, Department of the Army Criminal Investigation Division, and BIS are investigating the case.
U.S. Attorneys Jared Dolan and Alathea Porter for the District of Massachusetts, Trial Attorney Christina Clark of the National Security Division’s Counterintelligence and Export Control Section, and Trial Attorneys Katie Sweeten and David Smith of the National Security Division’s Counterterrorism Section are prosecuting the case. The Justice Department’s Office of International Affairs is providing assistance and is seeking extradition of Abedini from Italy.
This prosecution is being coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Founder of Iranian Company Arrested for Providing Material Support to the Islamic Revolutionary Guard Corps (IRGC), and for Scheme to Procure Sensitive U.S. Technology for Use in IRGC Military Drones, One of Which Killed Three U.S. ServicemembersRead the Press Release
BOSTON – Mahdi Mohammad Sadeghi, 42, a dual U.S.-Iranian national of Natick, Mass. and Mohammad Abedininajafabadi, A/K/A Mohammad Abedini (Abedini), 38, of Tehran, Iran, have been charged in federal court in Boston with conspiring to export sophisticated electronic components from the United States to Iran in violation of U.S. export control and sanctions laws. Abedini is also charged with providing material support to a foreign terrorist organization (FTO), IRGC, that resulted in the deaths of three U.S. servicemembers who were killed by a one-way attack Unmanned Aerial Vehicle (UAV), also known as a drone, on a military base in Jordan.
Sadeghi was arrested today and made his initial appearance in the District of Massachusetts. He was held pending a detention hearing scheduled for Dec. 27, 2024. Abedini was also arrested today in Italy by Italian authorities at the request of the United States.
According to court documents, Abedini is the founder and managing director of an Iranian company, San’at Danesh Rahpooyan Aflak Co. (SDRA or SADRA), that manufactures navigation modules used in the IRGC’s military drone program. SDRA’s main business is the sale of a proprietary navigation system—known as the Sepehr Navigation System—to the IRGC, which the United States designated as an FTO on April 15, 2019. The primary application of SDRA’s Sepehr Navigation System is for use in UAVs, as well as cruise and ballistic missiles. Sadeghi is currently employed by a Massachusetts-based microelectronics manufacturer (U.S. Company 1) and was one of the founders of a Massachusetts-based technology company (U.S. Company 2) that specializes in wearable sensors that provide kinetic monitoring for fitness applications.
As alleged in court documents, Abedini, Sadeghi, and others conspired to evade U.S. export control and sanctions laws by procuring U.S. origin goods, services, and technology from, among others, U.S. Company 1 and causing those goods, services, and technology to be exported or otherwise supplied to Iran and, in particular, Abedini’s Iranian company, SDRA.
As further alleged, in or around 2016, Sadeghi traveled to Iran to request funding for U.S. Company 2 from the Iranian National Elites Foundation (INEF), which is an Iranian governmental organization whose main purpose is to recognize, organize, and support Iran’s elite national talents. In exchange for funding for U.S. Company 2, which Sadeghi’s company ultimately received from the INEF, Sadeghi and others created a second company in Iran (Iranian Company 1). Shortly after forming Iranian Company 1, Sadeghi, through Iranian Company 1, entered into a contract with SDRA for the purchase of SDRA’s technology. It is also alleged that, since in or around 2016, on multiple occasions, Sadeghi has helped Abedini procure U.S. export-controlled electronic components for Abedini’s use in Iran.
Due to U.S. laws restricting exports to Iran, Abedini established a Switzerland front company for SDRA, Illumove SA (Illumove). With Sadeghi’s assistance, Abedini, through Illumove, entered into a contract with U.S. Company 1 to develop a mechanism to evaluate U.S. Company 1’s electronic components, including sophisticated semiconductors. Sadeghi and Abedini subsequently caused U.S.-origin goods, services, and technology to be transferred to Iran, through Illumove, for the benefit of SDRA. Certain of the electronic components that Abedini obtained through Illumove were the same types of electronic components used in SDRA’s Sepehr Navigation System.
“Today, the Justice Department has charged, and our foreign partners haven taken into custody, Mohammad Abedini, who we allege supplied sensitive technology used by the Iranian military to kill three American servicemembers in Jordan earlier this year,” said Attorney General Merrick B. Garland. “In addition, we have charged and arrested Mahdi Mohammad Sadeghi, a dual U.S.-Iranian citizen for conspiring with Abedini to export sensitive U.S. technology to Iran. Today’s arrests demonstrate that the Justice Department will hold accountable those who enable the Iranian regime to continue to target and kill Americans and undermine the national security of the United States.”
“Earlier this year, Iran-backed militias murdered three American soldiers and wounded dozens more in a brutal drone attack at the Tower 22 base in Jordan,” said Deputy Attorney General Lisa Monaco. “Today, working with our partners here and abroad, we have charged and arrested two men who conspired to evade U.S. sanctions and supply the Iranian government with the type of drone navigation technology used in that attack. Our message is unmistakable: if you provide support to the Iranian regime’s campaign of terror and violence targeting Americans – we will find you, arrest you, and hold you accountable in a U.S. court, no matter where you are.”
“Holding culpable people accountable for the death and maiming of U.S. service men and women bravely serving our nation abroad is about as important a prosecution as there is. These allegations make clear the grievous harm that can result when highly sophisticated American technologies subject to export controls end up in the hands of our adversaries,” said United States Attorney Joshua S. Levy. “These criminal charges are the direct product of the dogged work of the FBI and the Department of Commerce, in close collaboration with DOJ lawyers, as part of the Disruptive Technologies Task Force launched in February 2023, and I commend their outstanding work.”
“This case reflects our commitment to pursing those who unlawfully aid Iran’s military drone program and to seeking justice for the U.S. servicemembers killed at the hands of the IRGC-backed militants earlier this year,” said Assistant Attorney General Matthew G. Olsen of the Justice Department's National Security Division. “Export laws exist to keep cutting-edge U.S. technology out of the hands of foreign terrorist organizations. When sensitive drone technology is supplied to the IRGC – as alleged in this case – it places our military at risk and imperils American citizens.”
“These defendants are charged with supplying sensitive technology to an Iranian company that develops technology the IRGC uses in its one-way attack drones to commit acts of terror around the world,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Export crimes are much more than just regulatory violations – they enable our adversaries to engage in numerous malign activities harmful to U.S. interests, including the sowing of terror worldwide.”
“The FBI will continue to aggressively use all of our authorities to investigate and arrest anyone who assists the Government of Iran in obtaining technology that can be used for deadly purposes,” said FBI Deputy Director Paul Abbate. “These perpetrators allegedly facilitated the transfer of electronic components to an Iranian company which one of them owned. According to the charges, the company owner then supplied the IRGC with drone technology that was used in various terrorist acts, including an attack on a U.S. military base in Jordan which killed three servicemembers and injured dozens more. Such acts are wholly unacceptable, and the FBI will work tirelessly with our partners to cut off illegal transfers of technology to foreign terrorists and other adversaries.”
“We believe these two men conspired to illegally procure sophisticated U.S. technology, made right here in Massachusetts, for one of the world’s most infamous state sponsors of terrorism – in an effort to help the Government of Iran strengthen its arsenal of weapons,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “With today’s arrests, the FBI has disrupted this Iranian procurement network that was directly involved in the horrific attack on Tower 22 where three U.S. soldiers were killed, and more than 40 others injured. This case demonstrates our ongoing commitment to bring to justice anyone who seeks to commit acts of terror against the United States and our allies.”
“The Office of Export Enforcement vigorously investigates violations of export controls to protect U.S. national security,” said Special Agent in Charge James Guanci of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office. “The two defendants are charged with working on behalf of Iran and the IRGC to facilitate the illegal export of high-tech drone components that resulted in a deadly terrorist act targeting U.S. service members.”Abedini is also charged with providing material support to a foreign terrorist organization, the IRGC, specifically, the IRGC Aerospace Force, which is the strategic missile, air and space force within the IRGC. Since at least in or about 2014, SDRA has had multiple projects with the IRGC Aerospace Force, including projects for guided rockets and integrated navigation systems. As alleged, between 2021 and 2022, approximately 99% of SDRA’s sales of the Sepehr Navigation System, which are used in IRGC one-way attack drones, were to the IRGC’s Aerospace Force.
On Jan. 28, 2024, three U.S. service members were killed, and more than 40 others were injured, in a drone attack by IRGC-backed militants on a military base located in northern Jordan, known as Tower 22. According to court documents, analysis of the drone that was recovered from the site of the attack showed that the drone was an Iranian Shahed UAV and that the navigation system used in the drone was the Sepehr Navigation System, which was manufactured by Abedini’s company, SDRA.
Sadeghi and Abedini each face up to 20 years in prison, three years of supervised release and a fine of up to $1 million fine on the conspiracy to violate the International Emergency Economics Powers Act charge. On the conspiracy to provide material support to a Foreign Terrorist Organization, resulting in death charge and provision and attempted provision of material support to a Foreign Terrorist Organization, resulting in death, Abedini faces up to life in prison, up to a lifetime of supervised release and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant United States Jared Dolan and Alathea Porter of the District of Massachusetts’ National Security Unit; Trial Attorney Christina Clark of the National Security Division’s Counterintelligence and Export Control Section; and Trial Attorneys Katie Sweeten and David Smith of the National Security Division’s Counterterrorism Section are prosecuting the case. The Justice Department’s Office of International Affairs is providing assistance and is seeking extradition of Abedini from Italy.
This prosecution is being coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Federal jury convicts Springfield man for crypto financing scheme to ISISRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Springfield man on Dec. 13 on charges relating to his efforts to provide material support to the Islamic State of Iraq and al-Sham (ISIS), which was designated by the United States Secretary of State as a Foreign Terrorist Organization.
According to court records and evidence presented at trial, from at least October 2019 through October of 2022, Mohammed Azharuddin Chhipa, 35, collected and sent money to female ISIS members in Syria to benefit ISIS in various ways, including by financing the escape of female ISIS members from prison camps and supporting ISIS fighters. Chhipa would raise funds online on various social media accounts. He would receive electronic transfers of funds and travel hundreds of miles to collect funds by hand. He would then convert the money to cryptocurrency and send it to Turkey, where it was smuggled to ISIS members in Syria.
His primary co-conspirator was a British-born ISIS member residing in Syria who was involved in raising funds for prison escapes, terrorist attacks, and ISIS fighters.
Over the course of the conspiracy, the defendant sent over $185,000 in cryptocurrency.
The jury found Chhipa guilty of one count of conspiracy to provide material support or resources to a designated foreign terrorist organization and four counts of providing and attempting to provide material support or resources to a designated foreign terrorist organization.
Chhipa faces a maximum penalty of 20 years in prison per count when sentenced on May 5, 2025. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division; and David Sundberg, Assistant Director in Charge of the FBI Washington Field Office, made the announcement after U.S. District Judge David J. Novak accepted the verdict.
Assistant U.S. Attorneys Anthony T. Aminoff and Amanda St. Cyr for the Eastern District of Virginia and Trial Attorneys Andrea Broach and Andrew John Dixon for the National Security Division’s Counterterrorism Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-97.
Fargo Man Convicted by Jury for Witness Tampering Conspiracy in MurderRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that Shaquiel Anthony Mendez, age 31, was convicted at trial of Conspiracy to Tamper with a Witness after a four-day jury trial held before Chief District Court Judge Peter D. Welte in Fargo. Mendez is scheduled to be sentenced on April 21, 2025.
Mendez was convicted for his role in conspiring to tamper with a federal witness after the witness was assaulted and stabbed with a pencil in the Cass County jail. This witness tampering case is related to the investigation into the murder of Santino Marial which occurred on August 28, 2020, in Fargo.
“An attack on a witness is an attack on the rule of law,” Schneider said. “This case is a reminder that anyone who conspires to use violence against a federal witness in the District of North Dakota will make themselves a federal defendant. I want to thank our career prosecutors, the trial team, and our partners in federal and local law enforcement for their work to secure a conviction and ensure justice was done in this case.”
Daniel Saydee Cisse, age 20, is currently serving an eleven-year sentence for his role in the witness tampering conspiracy. Ahmed Abdi Hassan, age 21, has pled guilty for his role in the witness tampering conspiracy and is currently scheduled to be sentenced on January 21, 2025.
Jesse James Burnett, age 31, has been indicted for Murder in Furtherance of a Drug Trafficking Crime and Conspiracy to Tamper with a Witness and is scheduled for trial on April 1, 2025.
This case is being investigated by Fargo Police Department, Cass County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATFE).
The cases are being prosecuted by Assistant U.S. Attorneys Christopher C. Myers, Matthew Kopp, and Jacob Rodenbiker.
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Falmouth Man Pleads Guilty to Tax EvasionRead the Press Release
PORTLAND, Maine: A Falmouth man pleaded guilty today in U.S. District Court in Portland to tax evasion.
According to court records, Jeffrey Riddle, 58, filed federal income tax returns for 2006 through 2014, reporting that he owed substantial federal tax. Despite reporting that he owed taxes, Riddle did not pay.
The IRS began trying to collect Riddle’s back taxes in 2010, filing notices of federal tax liens on property and levies on his bank account. In 2015, while still owing substantial back taxes, Riddle created a new business, Silica Marketing LLC, and entered into a lucrative consulting agreement with a large tire retailer. Riddle put the ownership of the company under his then-wife’s name despite the company’s sole revenue coming from his consulting work and using the proceeds to pay personal expenses. When meeting with the IRS revenue officer assigned to collect his back taxes, Riddle stated that he earned $6,000 a month in wages from Silica and provided the IRS with a falsified letter showing he would be paid a $3,000 bi-monthly salary. He failed to disclose that he had signed a consulting agreement as Silica’s president and CEO and that Silica was receiving substantial income from that contract. Riddle also failed to disclose that money paid to Silica was being used to pay his personal expenses. Among the expenses paid for with Silica funds was the down payment on a home on Great Diamond Island in 2016, purchased in Silica’s name.
In 2017, Riddle created a new company to replace Silica, continuing to consult with the same tire retailer. In 2020, Riddle sold part of the company for $400,000, and $250,000 was placed in escrow for the purpose of satisfying Riddle’s tax debt. None of the funds were paid to the IRS. On the day the partial sale of his company closed, Riddle purchased a Corvette, titling it in his company’s name.
Riddle faces up to five years imprisonment and a fine up to $250,000 to be followed by up to three years of supervised release.
IRS Criminal Investigation investigated the case.
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El Departamento de Justicia halla que el Departamento de Seguridad del Niño de Arizona discrimina contra los padres y niños con discapacidadesRead the Press Release
El Departamento de Justicia anunció hoy sus hallazgos que el Departamento de Seguridad del Niño del Estado de Arizona (DCS, por sus siglas en inglés) viola al Título II de la Ley para Estadounidenses con Discapacidades (ADA, por sus siglas en inglés) a través de discriminar contra los padres, incluso los padres de acogida y otros cuidadores, y niños con discapacidades.
Después de una investigación comprehensiva, el departamento halló que DCS no comunicó efectivamente con los padres y niños con discapacidades auditivas, incluso a través de no proporcionar interpretadores. DCS tampoco hizo acomodaciones razonables para las necesidades de los padres con discapacidades a través de, por ejemplo, no brindar información en una forma simplificada. Por fin, DCS niega a los padres con discapacidades una oportunidad igualitaria para participar en y beneficiarse de los programas y servicios de DCS.
“Bajo la ADA, los padres y niños con discapacidades tienen el derecho a tratamiento justo y igualitario por las agencias del bienestar del niño,” comentó la Fiscal General Auxiliar Kristen Clarke de la Sección de Derechos Civiles del Departamento de Justicia. “Más de cuatro millones de padres con discapacidades viven en los Estados Unidos y las acciones discriminatorias pueden tener consecuencias devastadoras y permanentes para los padres y los niños. La División de Derechos Civiles está comprometido con asegurar que la discriminación ilegal no interfiera con la oportunidad del padre ser reunificado con su hijo y que las separaciones no sean prolongadas porque la agencia del bienestar del niño no brinda a los padres la comunicación efectiva y las acomodaciones razonables que la ADA garantiza.”
“Los padres y niños con discapacidades merecen ser tratados con dignidad.” comentó Gary M. Restaino, Fiscal de los Estados Unidos para el Distrito de Arizona. “Nuestra oficina seguirá trabajando con la División de Derechos Civiles para asegurar que los padres y niños con discapacidades estén protegidos bajo la ley y que el Departamento de Seguridad del Niños haga más significativamente acomodaciones a las personas con discapacidades en búsqueda de mejores resultados para las familias.”
El departamento brindó sus hallazgos escritos en una carta dirigida a Arizona y DCS que detalla los pasos mínimos que DCS tiene que tomar para arreglar las violaciones identificadas. La carta del departamento explica que DCS viola a la ADA a través de negar comunicación efectiva y ayudas y servicios auxiliares a los padres, cuidadores, y niños con discapacidades auditivas. Por ejemplo, DCS no proporcionó interpretadores de Lengua de Signos Estadounidense (ASL, por sus signas en inglés) a los padres, cuidadores, y niños sordos y con discapacidad auditiva, incluso durante reuniones importantes y cuando se trasladaban a niños de sus hogares. Y DCS no comunicó con los padres con discapacidades visuales y otras discapacidades que afectan la comunicación en maneras que los padres pudieron entender. Como resultado, los padres, cuidadores, y niños con discapacidades a veces no podían entender lo que estaba pasado durante sus casos de DCS e interacciones con DCS.
La carta también documenta cómo DCS no hizo acomodaciones razonables que los padres con discapacidades necesitaban, a pesar de que esas acomodaciones podrían ayudar atender a las preocupaciones de DCS. Por ejemplo, DCS se preocupaba por motivo de seguridad cuando padres con discapacidades intelectuales y del desarrollo, uno de los que tenía discapacidad visual, tenían dificultad preparando botellas y probando la temperatura de agua de la bañera. Pero DCS no consideró si las acomodaciones sencillas pudieran haberles ayudado realizar estas tareas de manera segura, como una botella con medidas en letra grande o un termómetro digital adaptivo que utiliza luces colorados o tonos para alertar a los padres si el agua de bañera está demasiado caliente o fría.
Por fin, el Departamento halló que DCS no brinda a los padres con discapacidades una oportunidad igualitaria participar en los programas y servicios de DCS. Por ejemplo, DCS confía en estereotipos y suposiciones infundadas sobre los padres con discapacidades. En una instancia, DCS retrasó la reunificación basado solamente en preocupaciones generalizadas sobre si una madre con autismo y trastorno por déficit de atención con hiperactividad (TDAH, o ADHD por sus siglas en inglés) pudiera cuidar de manera segura a su niño joven por consecuencia de sus discapacidades. Pero estas preocupaciones se basaban en estereotipos y especulación, y no en acciones especificas que tomó la madre.
Si usted o alguien que conoce tiene una queja sobre la discriminación de discapacidad por parte de DCS, por favor llame al 1-888-394-3540 (para TYY, marque 711 primero) o hacer una querella aquí. Usted puede conocer más sobre los derechos de padres con discapacidades aquí y a través de asistencia técnica colectiva del Departamento de Justicia y el Departamento de Salud y Servicios Humanos. Para conocer más sobre la ADA, por favor llame la línea gratuita del Departamento para información sobre la ADA al 1-800-514-0301 (voz) o al 1-833-610-1264 (TTY) o bien visite el sitio web de la ADA en www.ada.gov Para conocer más sobre la División de Derechos Civiles, por favor visite a www.justice.gov/crt.
Drug trafficker, with two prior convictions, sentenced to more than 5 years in prison for distributing cocaine, methamphetamine, and heroinRead the Press Release
Seattle – A Mexican national, who has twice been convicted of drug trafficking, was sentenced for his third conviction to 70 months in prison, announced U.S. Attorney Tessa M. Gorman. Francisco Capado-Gonzales, 39, has been in custody since his arrest in SeaTac, Washington, on October 19, 2023. Judge Kymberly K. Evanson imposed the 70-month sentence emphasizing the large amount of drugs in the case.
According to records filed in the case, in the fall of 2023, Capado-Gonzalez approached someone he believed would be a drug customer, who was actually a person working with law enforcement. Capado-Gonzalez and his co-conspirators claimed they could provide pound quantities of methamphetamine. On October 19, 2023, the person working with law enforcement was scheduled to pick up the drugs at a SeaTac motel. Instead, law enforcement arrived at the room. Capado-Gonzalez attempted to flee into a wooded area near the hotel but was arrested.
Capado-Gonzales was indicted by the grand jury on November 1, 2023. He pleaded guilty on September 6, 2024. This is Capado-Gonzalez third conviction for drug offenses. He was arrested and convicted in Las Vegas in 2007 with heroin and cocaine. In 2013 he was arrested and convicted a second time while possessing heroin and methamphetamine. He served a 41-month sentence.
In asking for an 84-month sentence, prosecutors emphasized that methamphetamine is present in many drug overdoses, writing to the court, “In 2023, 58% of all overdose deaths in King County involved methamphetamine.And here, Capado-Gonzalez had a leadership role in a conspiracy to distribute at least 44 pounds of a mixture or substance containing methamphetamine, as well as 542 grams of a mixture or substance containing heroin and 591 grams of a mixture or substance containing cocaine. Such quantities pose an increased danger to the community and warrant a heavier sentence...”
The case was investigated by Homeland Security Investigations (HSI).
The case is being prosecuted by Assistant United States Attorneys Amanda McDowell and Michael Harder.
Dominican Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican pleaded guilty today in federal court in Boston for illegally reentering the United States after deportation.
Jose De La Rosa Rosario, 50, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for March 14, 2025. In October 2024, De La Rosa was indicted by a federal grand jury.
De La Rosa is a citizen of the Dominican Republic who entered the United States in 2006 through Puerto Rico using false identification. He was convicted of federal conspiracy and cocaine distribution charges in 2011. Following completion of his federal sentence, in July 2018, De La Rosa was removed from the United States and deported to the Dominican Republic pursuant to a court order. Thereafter, at an unknown time and place, he illegally reentered the United States without permission. In September 2024, De La Rosa was arrested on new state drug charges and later detained by U.S. Immigration and Customs Enforcement. A copy of his fingerprint from his removal document was compared to his fingerprint when he entered federal custody in September 2024 and they were identical to each other.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit is prosecuting the case.
Doctor Pleads Guilty in $5.5M COVID-19 Fraud SchemeRead the Press Release
A Texas physician pleaded guilty today in connection with his role in a $5.5 million over-the-counter (OTC) COVID-19 test fraud scheme.
According to court documents, Mark Mazzare M.D., 57, of Tyler, purchased Medicare beneficiary identifiers (BINs) that were used to bill Medicare millions of dollars for OTC COVID-19 test kits, many of which had not been requested by the beneficiaries. Mazzare entered into a sham agreement with a purported marketer to conceal the purchase of BINs as “lead packages,” which in reality consisted of BINs and fraudulently generated audio recordings purporting to be the voices of the beneficiaries requesting the OTC COVID-19 tests. Mazzare caused OTC COVID-19 tests to be shipped to Medicare beneficiaries whose BINs had been purchased, regardless of whether the Medicare beneficiaries had requested or needed the tests. From in or around November 2022 to in or around June 2023, Mazzare caused more than $5.5 million in claims to be submitted to Medicare for OTC COVID-19 tests that were medically unnecessary and ineligible for reimbursement. Medicare paid approximately $3.44 million on those claims.
Mazzare pleaded guilty to conspiracy to defraud the United States and to purchase, sell, and distribute Medicare beneficiary identification numbers. He faces a maximum penalty of five years in prison. A sentencing hearing will be set at a later date, when a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Damien M. Diggs for the Eastern District of Texas; Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office; and Inspector-in-Charge Kai Pickens of the U.S. Postal Inspection Service (USPIS) Fort Worth Division made the announcement.
HHS-OIG and USPIS are investigating the case, with significant assistance provided by the Texas Attorney General’s Medicaid Fraud Control Unit.
Assistant Chief Brynn Schiess of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Robert Austin Wells for the Eastern District of Texas are prosecuting the case.
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-fraud/health-care-fraud-unit.
Council Bluffs Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Susan T. Lehr announced that Cameron S. Hurd, age 34, of Council Bluffs, Iowa, was sentenced on December 13, 2024, in federal court in Omaha, Nebraska for distribution and receipt of child pornography. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Hurd to 84 months’ imprisonment. There is no parole in the federal system. After his release from prison, Hurd will be placed on a 5-year term of supervised release. Hurd was also ordered to pay restitution in the amount of $12,000.00 to four identified victims of his crimes.
This investigation by the Nebraska State Patrol (NSP) began with a “cyber tip” received by the National Center for Missing and Exploited Children (NCMEC) regarding suspicious internet activity. NCMEC’s resulting report to the NSP indicated that 16 files containing child pornography were uploaded from Hurd’s internet protocol (IP) address to Kik, a free instant messaging mobile app, on or about November 19, 2021, during a chat with another user.
On August 25, 2022, NSP served a warrant to search for child pornography at Hurd’s residence in Douglas County, Nebraska. Investigators seized Hurd’s cellphone for forensic examination. Forensic examination of the Hurd’s phone revealed approximately 30 videos of child pornography associated with the Kik Messenger application on the device, including at least one video depicting a toddler being sexually assaulted by an adult male.
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Convicted Felon Found Guilty of Armed Robbery of Armored Vehicle Courier at Gunpoint While on Supervised Release for Bank RobberyRead the Press Release
LOS ANGELES – An Inglewood man, who in 2022 was granted compassionate release after serving 26 years in federal prison for armed robberies of armed couriers, has been found guilty by a jury of robbing a Brinks courier at gunpoint in a bank parking lot near LAX in August 2023, the Justice Department announced today.
Markham David Bond, 61, was found guilty late Thursday of one count of interference with commerce by robbery (Hobbs Act), one count of using a firearm during a crime of violence, and one count of being a felon in possession of a firearm and ammunition.
Bond has been in federal custody since November 2023.
“After being given a second chance in life, this defendant sadly chose a path of violent crime,” said United States Attorney Martin Estrada. “Through our strong partnerships with federal and local law enforcement, we will continue to use our resources to protect our community by holding accountable violent offenders who use guns.”
According to evidence presented at a five-day trial, on the morning of August 18, 2023, Bond stole approximately $145,000 in cash from a Brinks armored carrier outside a Chase bank near LAX. The armored vehicle was parked in the bank parking lot as one of its employees got out of the vehicle with a blue duffle bag on a rolling cart and which contained the cash. Bond approached the driver, pointed a handgun at him, and demanded the money.
Fearing for his life, the Brinks employee dropped the duffle bag. Bond then ordered the victim to get down on the ground. After the victim complied with this order, Bond grabbed the blue Brinks duffle bag then fled the area.
Bond was arrested on November 22, 2023, and police seized at his residence a .40-caliber pistol containing 10 rounds of ammunition, the shirt he used during the robbery, and cash hidden inside of a mini-refrigerator. Police also found the robbery getaway car parked around the block from Bond’s residence. Inside the car, police found the empty Brinks bag and the hat Bond used during the robbery, among other evidence linking Bond to the robbery.
Bond has multiple felony convictions dating from the 1980s and 1990s, including for Hobbs Act robbery, armed bank robbery, use of a firearm in furtherance of a crime of violence, and conspiracy to possess with intent to distribute heroin. As a convicted felon, Bond is not permitted to possess firearms or ammunition.
In January 1995, Bond was sentenced to 562 months (46 years and 10 months) in prison after being convicted of bank robbery and firearms offenses by a federal jury in Los Angeles. But in January 2022, Bond was granted compassionate release and was released early from prison. He was on supervised release when he robbed the Brinks employee at gunpoint on August 18, 2023.
United States District Judge Wesley L. Hsu scheduled a July 11, 2025, sentencing hearing, at which point Bond will face a statutory maximum sentence of life in federal prison.
Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.
The FBI and the Los Angeles Police Department’s Robbery Homicide Division investigated this case.
Assistant United States Attorneys Haoxiaohan H. Cai of the Corporate and Securities Fraud Strike Force and Daniel H. Weiner of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Connecticut Man Sentenced to Prison for Role in Grandparent SchemeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Matthew Ramos-Soto, 27, Hartford, Connecticut, was sentenced today by Chief U.S. District Judge James D. Peterson to 41 months in federal prison for his role in a wire fraud scheme targeting elderly victims. Ramos-Soto pled guilty to the charge on April 4, 2024. He was also ordered to pay restitution.
Ramos-Soto was part of a network of individuals perpetrating related grandparent schemes across the United States. Coconspirators operating outside the United States called elderly victims posing as a relative or relative’s attorney. Victims were told that their relative had been arrested for causing an accident that severely injured or killed another person. Victims were asked to provide bail money in cash so their relative could be released immediately.
Once victims obtained the funds, a courier posing as a bail bondsman picked up the funds from the victims’ residences. Defendant was one of the couriers posing as a bail bondsman. Between October 24, 2022, and October 28, 2022, Ramos-Soto and the other couriers picked up more than $250,000 from victims throughout Wisconsin.
Law enforcement was able to identify Ramos-Soto and he was ultimately arrested attempting to pick up money from a victim in Ottawa County, Michigan, on June 28, 2023. A subsequent search of Ramos-Soto’s cellphone data showed that from October 11, 2022, through his arrest on June 28, 2023, he picked up money from victims in 18 different locations around the United States.
Additional federal cases against this fraud network have been brought in the District of Vermont, District of Rhode Island, Southern District of California, Western District of Pennsylvania, Central District of Illinois, and the Western District of Kentucky.
At sentencing, Judge Peterson described the crime as “cruel and devastating,” acknowledging the significant financial and emotional impact on the victims. Judge Peterson also said that with the sentence, he hoped to deter Ramos-Soto and others from engaging in these types of schemes in the future.
“Unfortunately, scams targeting the elderly or vulnerable are proliferating. If someone demands money over the phone or internet, always reach out to a trusted advisor, law enforcement agency, or the fraud hotlines described below,” said U.S. Attorney O’Shea. “My office is committed to working with local, state, and federal law enforcement partners to investigate and prosecute those who target vulnerable individuals for financial gain.”
“The Wisconsin Department of Justice is committed to combating scams and holding perpetrators accountable,” said Attorney General Josh Kaul. “Thank you to the law enforcement officers from a number of different agencies who assisted with this investigation.”
“I want to acknowledge the many local and state law enforcement partners who worked to bring this perpetrator to justice,” said FBI Milwaukee Special Agent in Charge Michael Hensle. “Elder fraud preys upon the vulnerabilities of our senior citizens and inflicts financial and emotional harm. The FBI will continue to work with our partners to investigate those who commit these crimes.”
If you suspect fraud has occurred or been attempted, report it to authorities so that those who commit fraud can be identified. The U.S. Justice Department operates the National Elder Fraud Hotline which can be reached at 1-833-FRAUD-11 (1-833-372-8311), which is staffed by case managers who provide personalized support to callers. Wisconsin residents can also contact their local police department or the Wisconsin Elder Abuse Hotline at 1-833-586-0107.
The charge against Ramos-Soto was the result of an investigation led by the Wisconsin Department of Justice Division of Criminal Investigation and the Federal Bureau of Investigation, following a Statewide Crime Alert by the Columbia County Sheriff’s Office that connected several investigations across Wisconsin. The other Wisconsin agencies involved in the investigation are the Outagamie, Shawano, Manitowoc, and Brown County Sheriffs’ Offices; and the New Lisbon, Wrightstown, Fitchburg, Reedsburg, Randolph, Fox Valley Metro, Hobart Lawrence, Green Bay, Oshkosh, and Fond du Lac Police Departments. Law enforcement in Ottawa County, Ionia County, and Kent County in Michigan also assisted with the investigation. The government would also like to acknowledge the assistance provided by local, state, and federal victim/witness personnel. Assistant U.S. Attorney Meredith Duchemin prosecuted the case.
Cold Case Murder Investigation from 2005 Leads to Arrest and Indictment of Maryland ManRead the Press Release
WASHINGTON – Michael Wells, 53, of Hyattsville, Maryland was arraigned by Superior Court of the District of Columbia Judge Michael O’Keefe on one count of first degree while armed, premeditated murder, one count of second degree murder while armed, one count of arson, one count of tampering with physical evidence and related weapons offenses. The indictment was announced by U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department.
According to the indictment and related court documents, Wells shot Makia Mosby with a firearm and set her body on fire in an incident that occurred on November 24, 2005, causing injuries from which Makia Mosby would not survive. Following the indictment, Wells was arrested on December 12, 2024.
If convicted, Wells faces a maximum sentence of 30 years in prison, a fine of up to $250,000, and five years of supervised release.
In announcing the indictment and arraignment, U.S. Attorney Graves, commended the work of the Metropolitan Police Department and acknowledged the work of Assistant U.S. Attorney Vinet Bryant, who is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
Choctaw County Resident Pleads Guilty to MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bryson Noel Miller, age 19, of Fort Towson, Oklahoma, entered a guilty plea to one count of Murder in Indian Country.
The Indictment against Miller alleged that on December 23, 2020, Miller killed the victim willfully, deliberately, maliciously, with premeditation and malice aforethought.
According to investigators, on the afternoon of December 22, 2020, Miller, Ashlie Nicole Rose Martin, and Chad Jon’Dale Voyles planned the murders of Martin’s parents, then set their plan into motion. As part of that plan, Miller participated in bludgeoning Martin’s father to death. The crimes occurred in Choctaw County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charge arose from an investigation by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the Oklahoma Highway Patrol, and the Choctaw County Sheriff’s Office.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, Oklahoma, accepted Miller’s plea, ordered the completion of a presentence investigation report, and remanded Miller to the custody of the U.S. Marshals pending sentencing.
Assistant U.S. Attorney Benjamin D. Traster represented the United States.
Chinese National Sentenced to Ten Years in Prison for Laundering $62 Million in Drug Proceeds on Behalf of Mexican TraffickersRead the Press Release
CHICAGO — A federal judge in Chicago has sentenced a Chinese national to a decade in prison for laundering $62 million in illegal drug proceeds on behalf of traffickers in Mexico.
From 2016 to 2018, HAIPING PAN schemed with others to launder up to $3 million per month in drug proceeds using secretive money pickups in Chicago, New York, Los Angeles, and other parts of the United States, followed by a series of currency swaps between the United States and China, and China and Mexico. Pan played a significant role in the money laundering process, using his international financial expertise and relationships with members or associates of Mexican drug cartels to facilitate the clandestine flow of drug money through businesses and banks around the world. The illicit proceeds ultimately were remitted to the traffickers in Mexico.
During the conspiracy, Pan and his co-conspirators completed an average of one to two pickups per week, with the amounts ranging from $150,000 to $1 million per pickup. In total, Pan knowingly participated in the laundering and attempted laundering of approximately $62 million in drug proceeds.
Pan, 44, is a Chinese national who facilitated the money transfers while residing in Guadalajara, Mexico. He was arrested in Mexico and extradited to the U.S. in 2022. U.S. District Judge Sharon Johnson Coleman imposed the ten-year prison sentence during a hearing on Thursday in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago, and Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office. The government was represented by Assistant U.S. Attorney Richard M. Rothblatt.
“The defendant was a significant part of a recent phenomenon in which a relatively small network of Chinese money brokers based in Mexico have come to dominate international money laundering markets,” the government argued in its sentencing memorandum. “Defendant’s crimes allowed his drug trafficking clients to secure the fruits of their pernicious trade faster, cheaper, and more securely than ever before.”
Numerous other money launderers were convicted as part of the federal investigation, including Pan’s co-conspirators XIANBING GAN, who was sentenced to 14 years in prison, and HUANXIN LONG, who was sentenced to five and a half years.
Charleston Man Sentenced to Federal Prison for Weapons ViolationRead the Press Release
CHARLESTON, S.C. — Anthony Cobbs, 26, of Charleston, was sentenced to more than six years in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the court showed that on Sept.21, 2022, Charleston Police Department officers initiated a traffic stop on a sedan for an expired temporary tag. A female was driving and Anthony Cobbs, the defendant, was the front passenger. During the stop, an officer observed Cobbs attempt to conceal a black handgun from his waistband. After Cobbs was removed from the vehicle and taken into custody, officers recovered the firearm and ammunition under the front passenger seat where Cobbs was seated.
United States District Judge David C. Norton sentenced Cobbs to 78 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department. Assistant U.S. Attorney Lee Holmes is prosecuting the case.
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Carlos Watson, Founder and Former CEO of Ozy Media Inc., Sentenced to 116 Months in Prison for Leading Multi-Million Dollar Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Carlos Watson, the founder and former Chief Executive Officer of Ozy Media, Inc. (Ozy), was sentenced by United States District Judge Eric R. Komitee to 116 months in prison for conspiracy to commit securities fraud, conspiracy to commit wire fraud and aggravated identity theft. Watson was convicted in July 2024 following an eight-week trial. Ozy, which was also convicted at trial, was sentenced to one year probation. Additional penalties of forfeiture and restitution will be imposed at a later date.
Breon Peace, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentences.
“Carlos Watson orchestrated a years-long, audacious scheme to defraud investors and lenders to his company, Ozy Media, out of tens of millions of dollars,” stated United States Attorney Peace. “His incessant and deliberate lies demonstrated not only a brazen disregard for the rule of law, but also a contempt for the values of honesty and fairness that should underlie American entrepreneurship. On far too many occasions, Watson chose deceit over candor, grasping for the illusion of business success and personal acclaim at any cost. Today’s sentence should serve as a warning to those who would engage in fraud that justice will be swift and certain.”
“Carlos Watson masqueraded his former company’s composition and purported success to entice investors, but ultimately cost them millions when the curated façade collapsed,” stated FBI Assistant Director in Charge Dennehy. “Watson abused his official capacity to ensnare subordinates to serve as lackies and perpetuate these fraudulent actions. May today’s sentencing deter any individual from implementing deceptive business practices to avoid a similar fate.”
According to court filings and as proven at trial, between 2018 and 2021, Watson and his co-conspirators orchestrated a scheme to defraud investors out of tens of millions of dollars through fraudulent misrepresentations and omissions about Ozy’s financial performance, including revenue, cash on hand and profit, ongoing business relationships with celebrities, acquisition prospects from high- profile technology and media corporations, contract negotiations and other corporate metrics. For example, Watson and his co-conspirators lied to prospective investors about who else might be investing in Ozy, the existence and size of acquisition offers received by Ozy, the existence and timing of financing rounds, and the existence and terms of Ozy’s business contracts — going so far as to direct Ozy employees to create fake contracts with forged signatures to provide in due diligence. On multiple occasions, when faced with questions from lenders or potential investors, Watson and his co-conspirators assumed the identities of and impersonated actual media company executives to cover up their prior fraudulent misrepresentations. Watson’s scheme caused actual investor losses in excess of $60 million and intended to deprive potential investors of hundreds of millions more on the basis of his and his co-conspirators’ lies and misrepresentations.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including securities fraud, wire fraud and identity theft.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jonathan Siegel, Gillian Kassner and Dylan A. Stern are in charge of the prosecution. Assistant United States Attorney Laura Mantell of the Asset Recovery Section is assisting with forfeiture matters.
The Defendants:
Carlos Watson
Age: 55
Mountain View, CaliforniaOzy Media, Inc.
Mountain View, CaliforniaE.D.N.Y. Docket No. 23-CR-82 (EK)
Austin Man Sentenced to Federal Prison for $1.5 Million Wire Fraud SchemeRead the Press Release
AUSTIN, Texas – An Austin man was sentenced in federal court to 41 months in prison for defrauding multiple investors in a $1.5 million Ponzi scheme.
According to court documents, Nurnepes Nurjanov, 34, was an informal day trader who, in September 2019, began soliciting funds from investors, drafting agreements that promised minimum returns, the split on profits between him and his investors, and investor access to the trading accounts. He also promised to use investment funds only for stock trades and agreed to pay “50% of clean profit” to the investor. To entice potential investors, Nurjanov created false documents indicating favorable investment returns and, using a trading simulator template, showed them alleged gains he was making.
One investor agreed to invest $50,000 in October 2019, and was shown a fraudulent investment statement reflecting a significant return. Another investor provided $50,000 in December 2020, followed by $142,500 in February 2021. That investor made several other large investments with Nurjanov over the next several months before selling their business in June 2022 and investing the proceeds of $325,000 with Nurjanov. Subsequentially, that investor referred a friend to Nurjanov, who in-turn was convinced by multiple false statements to wire Nurjanov $200,000. While they did receive alleged investment returns, the funds were proceeds from money invested by other victims of Nurjanov’s scheme.
Nurjanov spent other portions of the fraudulently acquired cash and assets for his personal living expense. In total, Nurjanov defrauded victims of $1,524,500.
Nurjanov was summoned to appear in court and made his initial appearance June 13, 2024, at which time he pleaded guilty to one count of wire fraud. In addition to imprisonment, Nurjanov was ordered to pay $1,505,500 in restitution.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The FBI investigated the case.
Assistant U.S. Attorney Dan Guess prosecuted the case.
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Armed Drug Trafficker Sentenced to More Than 14 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DONALD HILL, also known as “Man Man,” 39, of Waterbury, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 170 months of imprisonment, followed by four years of supervised release, for drug distribution and firearm possession offenses.
According to court documents and statements made in court, on November 29, 2022, Waterbury Police officers patrolling in response to recent shots-fired incidents attempted to stop a car Hill was driving on Englewood Avenue. Hill accelerated but was blocked by another police vehicle. He reversed his car, struck a police vehicle behind him that stopped his exit, and was subsequently forcibly removed from his car. A search of the car revealed a loaded handgun with an obliterated serial number; additional rounds of ammunition; more than 500 grams of crack cocaine; more than 1,600 baggies of fentanyl mixed with other substances, including cocaine and xylazine; six cellphones; and $2,489 in cash.
Analysis of the firearm using the National Integrated Ballistic Information Network (NIBIN) connected it to a shooting in New Haven on January 21, 2022, and a shots-fired incident in Wolcott on October 29, 2022.
Hill’s criminal history includes convictions for weapon possession, narcotics distribution, escape, and other offenses.
Hill has been detained since his arrest on November 29, 2022. On May 14, 2024, he pleaded guilty to one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime.
This investigation was conducted by the Waterbury Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant U.S. Attorney Natasha M. Freismuth through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
14 December 2024
Law Enforcement Announces Drones Are Not Allowed Near Saturday's Army-Navy GameRead the Press Release
Baltimore, Maryland – Today, there is a Temporary Flight Restriction (TFR) in place for the Army-Navy Game taking place at Northwest Stadium in Landover, Maryland. This area is considered a No Drone Zone.
The Federal Aviation Administration (FAA) has implemented the TFR which extends for a two-nautical mile radius around the stadium and up to 2,000 feet above ground level. The U.S. Attorney's Office for the District of Maryland and the Federal Bureau of Investigation (FBI) Baltimore Field Office are reminding the public to heed these restrictions, along with local and federal partners including the Prince George's County Police Department, Prince George's County Fire/EMS Department, Naval Criminal Investigation Service, Department of the Army Criminal Investigation Division, and the United States Secret Service. Law enforcement will enforce local and federal laws regarding Unmanned Aircraft Systems (UAS), commonly known as drones.
“Drone operators need to know that we take seriously any incursion in the restricted airspace around the Army-Navy Game. Such incursions threaten the safety of those involved. We will investigate and prosecute anyone who violates the no drone zone,” said U.S. Attorney Erek L. Barron.
"The Army-Navy game is a time-honored tradition among our nation's military, anticipated by both armed forces and football fans alike. We are committed to keeping everyone safe as they enjoy Saturday's game," said William J. DelBagno, Special Agent in Charge of the FBI's Baltimore Field Office. "Please be aware that no drones are allowed in or near the stadium for the safety of all participants and spectators."Members of the public are encouraged to report all suspicious activity. Law enforcement will be actively monitoring the airways for illegal UAS/drones and is committed to identifying, investigating, disrupting, and prosecuting the careless or criminal use of drones in the area.
There is a zero-tolerance policy regarding any UAS/drone use anywhere within the No Drone Zone established by the FAA. Anyone who attempts to fly a UAS/drone in any prohibited manner may be subject to arrest, prosecution, fines, and/or imprisonment.Learn more about all federal UAS/drone regulations on the FAA website.
13 December 2024
Whitefish doctor sentenced for defrauding Medicare and other federal health programsRead the Press Release
Note: This release has been updated to include a quote from the U.S. Department of Health and Human Services Office of Inspector General.
MISSOULA — A Whitefish doctor who admitted defrauding Medicare and other federal government health programs through a telemedicine conspiracy that resulted in more than $31 million in false billing was sentenced today to six months in prison, to be followed by six months of home confinement, fined $100,000 and ordered to pay $780,509 restitution, the U.S. Attorney’s Office said.
The defendant, Ronald David Dean, 64, pleaded guilty in July to conspiracy to commit wire fraud. The case was part of the Justice Department’s 2024 National Health Care Fraud Enforcement Action.
U.S. District Judge Donald W. Molloy presided. The court also ordered Dean to be placed on one year of supervised release after his confinement.
“Submitting false claims for medical services that were not provided will not be tolerated,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “Today’s sentencing is a testament to VA OIG’s dedication to investigating those who commit fraud and seek to benefit improperly from programs that are meant for deserving veterans.”
“Our office will continue to work alongside other federal agencies investigating crimes like this. The efforts of the VA-OIG, HHS-OIG and RRB-OIG agents, and the supporting personnel, combatted this fraudulent activity. We have an obligation to protect federal funds, and the abuse of our Medicare system will not be tolerated,” said Railroad Retirement Board Deputy Assistant Inspector General for Investigations Douglas Williams.
“Every American pays for healthcare fraud, potentially through higher health insurance premiums, exposure to unnecessary medical procedures, and increased taxes” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Ronald Dean put profit before patients. This case, along with the coordinated nationwide effort, reaffirms the FBI’s commitment to investigating fraud, protecting patients, and maintaining the integrity of government funded programs.”
“Holding health care professionals accountable for causing the submissions of false claims to Medicare is crucial for maintaining public trust and ensuring critical resources are appropriately used, “ said Special Agent in Charge Linda T. Hanley of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We are committed to protecting the integrity of federal health care programs and the people who rely on those programs, including investigating schemes that undermine the legitimate delivery of telehealth services.”
The government alleged in court documents that Dean, a licensed physician, was paid by a telemedicine company to sign orders for durable medical equipment that patients did not need. Dean then fraudulently charged Medicare, CHAMPVA and the Railroad Retirement Board programs for telemedicine office visits that did not occur. The telemedicine company also used Dean’s information to prescribe unneeded and unnecessary covid tests to patients. The conspiracy ran from about January 2022 until July 2023. The total amount billed to Medicare, the VA and the Railroad Retirement Board based on orders Dean signed was $31,432,001, and the total amount paid from those programs was $13,785,724.
As part of the scheme, Dean relied on information provided by people he did not know, with an unknown amount of training or experience, to prescribe braces for beneficiaries he did not see or evaluate himself. Dean frequently did not even talk to the beneficiaries, and when he did it was merely to tell them the braces were approved. Dean had no idea if those people who received braces actually needed them. With the covid tests, Dean provided blanket authorization for the telemedicine company to send out tests to anyone and bill Medicare for as many covid tests as the company desired.
The case was part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets.
The U.S. Attorney’s Office for the District of Montana worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the case filed during the enforcement period: the Department of Health and Human Services Office of Inspector General (HHS-OIG), Department of Veterans Affairs Office of Inspector General (VA-OIG), Railroad Retirement Board Office of Inspector General and FBI.
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Vacaville Man Pleads Guilty to Illegal Firearm Possession and Manufacturing DMTRead the Press Release
SACRAMENTO, Calif. — Robert Charles Crist, 58, of Vacaville, pleaded guilty today to being a felon in possession of a firearm and manufacturing a controlled substance, United States Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 20, 2022, law enforcement officers executed a search warrant at Crist’s home and found a lab he used to manufacture N,N‑Dimethyltryptamine, or “DMT,” a Schedule I controlled substance. Crist traveled to Hawaii to obtain plant materials for manufacturing DMT, which he mailed back to California. From the plant materials, Crist extracted DMT liquid, which he then converted into a smokable crystalline form for distribution. Officers also found Crist in possession of a firearm. Crist is prohibited from possessing firearms because he has five prior felony convictions.
This case was the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco and Firearms; the U.S. Postal Inspection Service; and the Solano County Sheriff’s Office. Assistant United States Attorney Emily G. Sauvageau is prosecuting the case.
Crist is scheduled to be sentenced by Judge Dena Coggins on March 21, 2025. Crist faces a maximum statutory penalty of 15 years in prison and a $250,000 fine on the firearm count and a maximum of 20 years in prison for the manufacturing a controlled substance count. 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.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
University Club of Milwaukee Agrees to Pay over $1 Million to Resolve Claim that It Wrongfully Obtained Paycheck Protection Program LoanRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that the University Club of Milwaukee has agreed to pay $1,003,993.86 to settle claims that the club improperly obtained a loan through the Paycheck Protection Program (“PPP”) administered by the United States Small Business Administration (“SBA”).
The PPP loan program, enacted in March 2020, provided emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. The program allowed eligible businesses and non-profits to receive loans guaranteed by the federal government and, if the borrower spent the funds on qualified expenses, the federal government would repay the loan on the borrower’s behalf.
Congress directed the SBA to guarantee PPP loans “under the same terms, conditions, and processes” as ordinary small business loans administered by the agency. 15 U.S.C. § 636(a)(36)(B). With respect to loan eligibility, Congress expressly endorsed the SBA’s regulation explaining what entities would be ineligible for loans. 15 U.S.C. § 636(a)(37)(A)(iv)(III)(aa). For decades, this regulation has explained that “[p]rivate clubs and businesses which limit the number of memberships for reasons other than capacity” are not eligible for loans through the SBA. 13 C.F.R. § 120.110(i).
The University Club of Milwaukee operates a private country club and dining facilities, which are not open to the general public. According to the government, at the time the University Club of Milwaukee applied for a PPP loan and for loan forgiveness, the club limited its membership for reasons other than capacity and, therefore, was ineligible to participate in the PPP.
“The Paycheck Protection Program was an important but limited resource made available by Congress to assist small businesses around the country suffering the financial impacts of the COVID-19 pandemic,” said United States Attorney Haanstad. “But in making this resource available, Congress made a legislative determination that public funds would not be provided to private clubs that restricted their membership for reasons other than capacity. This settlement represents the continued efforts of the Small Business Administration and the Department of Justice to enforce Congress’s legislative determination and protect the public fisc.”
Assistant United States Attorney Aaron R. Wegrzyn represented the government in connection with this matter, in coordination with Kandace Zelaya in the SBA’s Office of Litigation and Office of General Counsel. While the settlement resolves the government’s allegations against the University Club of Milwaukee with respect to its PPP loan, the club does not admit liability and no court has made any determination as to liability.
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