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2 December 2024
Utah Businessman Ordered to Pay $40,000 Restitution for Negligent EndangermentRead the Press Release
SALT LAKE CITY, Utah – Daniel J. Brett, 68, of Murray, Utah, was sentenced to pay a water truck operator $40,000 in restitution today after the worker helped with the destruction of the Broadway Hotel in Tooele, Utah, which contained asbestos.
The sentence, imposed by Senior U.S. District Court Judge David Sam, comes after Brett pleaded guilty in September 2024 to negligent endangerment, a misdemeanor offense. The United States argued for 12 months’ imprisonment with one year of supervised release to follow and $40,000 in restitution.
According to court documents and statements made at Brett’s change of plea and sentencing hearing, from December 9, 2020 to December 14, 2020, Brett negligently caused asbestos, a hazardous air pollutant, to be released into the ambient air by facilitating the demolition of the historic Broadway Hotel, unabated. By not disclosing the presence of asbestos to a contracted third party demolition company, nor following the required process for an emergency demolition, as required by the Clean Air Act, the demolition took place without personal protective equipment. Additionally, the demolition company hired a worker to help with the demolition. The owner worked inside the excavator while his worker, the victim in this case, operated the water truck. In doing so, the worker stood outside of the water truck wetting debris with a hose as building material collapsed to the ground, with nothing to protect him but a dust mask.
According to court documents, the presence of asbestos in the Broadway Hotel was known since 2011. After demolition, the asbestos containing debris pile remained at the site uncovered for fifteen months. Ultimately, an emergency removal action was initiated and cost the Environmental Protection Agency approximately $1.1 million. See former release here.
The U.S. Environmental Protection Agency investigated the case.
Assistant United States Attorney Ruth Hackford-Peer of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
Umar Koon Sentenced to Prison on Federal Drug ChargeRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Umar Koon, 46, of The Bronx, New York, was sentenced today in United States District Court in Burlington, to six months of imprisonment following his guilty plea to a charge that he possessed fentanyl, cocaine base and cocaine with intent to distribute. United States District Judge William K. Sessions III ordered that Koon serve three years of supervised release following completion of his prison term. The court ordered Koon to surrender to the Bureau of Prisons on January 21, 2025 to begin serving his sentence.
According to court records, the Northwestern Vermont Drug Task Force and the Federal Bureau of Investigation began an investigation of Koon in the summer of 2023 after obtaining information that Koon was selling fentanyl in the Chittenden County area. Between September and November 2023, investigators, utilizing a confidential informant, made seven controlled purchases of fentanyl and cocaine base from Koon. Investigators arrested Koon on November 14 after he returned to Burlington from New York City on a bus. Agents seized a suitcase Koon was carrying, obtained a state warrant to search the bag, and recovered distribution quantities of cocaine, cocaine base and fentanyl. They also seized $1500 in cash from Koon’s person.
Koon was held without bail on state drug charges until December 6, 2023 when he was released to live in New York City. On December 7, 2023, a federal grand jury returned an indictment charging Koon with seven counts of distributing narcotics and one count of possessing other narcotics with intent to distribute. Federal agents arrested Koon at his home in The Bronx on December 12. The State of Vermont has dismissed its case in favor of this federal prosecution.
Koon is represented by Mark Kaplan, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.
U.S. Trustee Program Obtains Denial of Discharge Based on Chapter 7 Debtor’s Failure to Preserve RecordsRead the Press Release
The United States Trustee Program (USTP) recently obtained denial of bankruptcy discharge for a chapter 7 debtor who had not filed tax returns for many years and did not maintain records for his business.
On October 31, the Bankruptcy Court for the Eastern District of Kentucky granted the U.S. Trustee’s motion for summary judgment and denied a discharge to chapter 7 debtor Charbel Joseph, the sole proprietor of an unincorporated construction business. The debtor claimed assets of just over $21,000 and debts of more than $10 million. An investigation by the U.S. Trustee’s Lexington office revealed that the debtor had not filed tax returns in 16 years, did not maintain any bank accounts and operated a construction business on a cash basis. The debtor produced copies of dozens of checks totaling more than $1.4 million payable to him and dated within two years of the bankruptcy filing, but he was unable to account for the disposition of about $1.3 million of those funds.
The U.S. Trustee filed a complaint seeking to bar the debtor’s discharge and, after discovery closed, filed a motion for summary judgment. After oral argument, the court granted the motion over the debtor’s objection and entered judgment in the U.S. Trustee’s favor.
One of the USTP’s core functions is to combat bankruptcy fraud and abuse through civil enforcement actions against debtors who engage in fraud or otherwise abuse the bankruptcy system. When circumstances warrant, the USTP takes action to deny those debtors a discharge. Under section 727(a)(3) of the Bankruptcy Code, debtors are not entitled to a discharge if they unjustifiably conceal, destroy, mutilate, falsify or fail to maintain or preserve records about their financial condition or business transactions.
“The bankruptcy discharge is the key to a fresh start and comes with obligations, including transparency about the debtor’s financial condition” said Director Tara Twomey of the Executive Office for U.S. Trustees. “Although the vast majority of debtors are honest people who simply want to overcome their financial challenges, cases such as this one require action to prevent unfair manipulation of the bankruptcy system.”
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
U.S. Attorney’s Office, the FBI, Along with Tribal and Local Law Enforcement Officials, Announce Second “Don’t Click December” Consumer Protection CampaignRead the Press Release
BOISE – During the holiday season, online criminals increasingly target Idahoans through online scams and fraud schemes. Today, U.S. Attorney Josh Hurwit, along with the FBI, the Fort Hall Police Department, the Bannock County Prosecuting Attorney’s and Sheriff’s Offices, the Bonneville County Prosecuting Attorney’s and Sheriff’s Offices, the Idaho Falls Police Department, and the Pocatello Police Department, announced their joint “Don’t Click December” Consumer Protection Campaign. The AARP is also participating in the announcement and the awareness campaign.
The campaign advises members of the public to exercise skepticism and caution when receiving unsolicited online, email, pop-up, or text communications from unknown or unverified sources. If there is any doubt about a link, message, or attachment, law enforcement cautions: “Don’t Click It.”
As part of the campaign, the U.S. Attorney’s Office, the FBI, and their partners will release a public service announcement each week in December leading up to Christmas. In the first PSA, available here, FBI Special Agent in Charge Shohini Sinha, Fort Hall Police Chief Pat Teton, and U.S. Attorney Josh Hurwit introduce “Don’t Click December” and explain some of the ways in which individuals can be targeted.
Three additional PSAs will alert the public to common online fraud schemes that Idaho law enforcement has seen affect Idahoans. These schemes are:
- “QR”scam: This scam targets individuals through corrupt or fictitious QR codes. Often the scammer will email or text a scam QR code in an attempt to trick you. They may even cover up legitimate QR code with their own corrupted code with the goal getting you to visit a bogus website that can steal your information if you log in. Always verify with the restaurant or business if you suspect a QR code is suspicious.
- “Pig Butchering” scam: In this cryptocurrency investment fraud scam, known as “pig butchering,” victims usually receive communications asking them to deposit money into financial investments using cryptocurrency. After an initial investment, victims receive further communications with a fake account report showing financial gains in order to get them to invest more, but the investments are fake, and all the money is under the control of criminals who ultimately steal the victims’ investments. If you are contacted about an investment opportunity by someone you don’t know through social media, text, or dating sites, Don’t Click It! If the message appears to be from an investment company you actually invest with, check the email address to verify it is from the company you’ve invested with.
- “Tech support” scam: In this scam, criminals impersonate technology, banking, or government officials to convince victims to share personal information. You could get a pop-up on your computer indicating your accounts have been hacked and to call a number. But that number goes to the scammer who tries to manipulate you to gain access to your computer or accounts and takes your money to fix a non-existent problem. If you get such a request, Don’t Click It. Government entities and legitimate businesses will never call you or send unsolicited pop-up messages to ask for access to your computer.
Unfortunately, these are not the only schemes affecting the public, and new schemes arise all the time. Law enforcement hopes that the “Don’t Click December” Consumer Protection Campaign will raise public awareness and encourage individuals to talk to their friends and relatives about not clicking suspicious links, texts, messages, pop-ups, or attachments.
“We have witnessed many Idahoans lose their hard-earned money or their entire retirement savings to online scams. And, sadly, this type of crime tends to spike during the holiday season,” said U.S. Attorney Hurwit. “But, together, we can reduce the risks by talking with each other about how to avoid such scams, and I’m grateful to our law enforcement partners and the AARP for joining us in the Don’t Click December campaign. We also encourage Idahoans to report any scams as soon as possible so that law enforcement can investigate and we can bring these vicious online criminals to justice.”
“According to the FBI’s Internet Crime Complaint Center, Idahoans lost more than $33 million to various scams last year,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “As we shop, bank, and stay connected online, it’s important to be alert and aware of internet‑enabled crime. The FBI is proud to partner with our law enforcement partners to share these important safety messages to keep you and your money safe, especially during the busy holiday season.”
“We are pleased to join with our partners to raise awareness about online fraud targeting our citizens. If it sounds too good to be true, then it probably is. If you’re not familiar with it, don’t click on it,” said Pocatello Police Chief Roger Schei.
“Increases in technology, especially the use of AI, and the complexity of criminal organizations is making it more challenging for Idahoans to avoid the criminals who want to defraud them,” said AARP Idaho State Director Lupe Wissel. “This initiative is a great way for Idahoans to share information with their friends, family and neighbors to help keep everyone safe from scammers.”
The U.S. Attorney’s Office and its law enforcement partners recognize that we all must work to eliminate the stigma individuals may experience if they are victimized. There is no shame to falling victim to an online scheme, which are often designed by professional criminals, sophisticated, and tested repeatedly across the country.
For this reason, the “Don’t Click December” Consumer Protection Campaign also publicizes ways to report scams and incidents of fraud to the FBI and local law enforcement.
To learn more about these and other scams targeting Americans visit FBI.gov, and if you believe you have been victimized, take-action by reporting it to FBI’s Internet Crime Complaint Center at IC3.gov or by contacting your local law enforcement agency.
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U.S. Attorney’s Office forms a Project Safe Neighborhoods Leadership CommitteeRead the Press Release
Project Safe Neighborhoods (PSN) is a nationwide initiative that brings together federal, state, and local law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them by implementing the four PSN design elements: 1) Community Engagement, 2) Prevention and Intervention, 3) Focused and Strategic Enforcement, and 4) Accountability.
In October 2023, the U.S. Attorney’s Office formed a Wyoming PSN Leadership Committee to determine where and how PSN resources would be used in Wyoming, develop and implement enforcement strategies to prevent and reduce crime and provide oversight and evaluation of the program’s progress.
The PSN Leadership Committee reviewed and analyzed Wyoming crime statistics as reported to the National Incident-Based Reporting System (NIBRS) and decided to concentrate PSN resources in Laramie County. Its focus is on the following areas of concern:
- Violent offenders who victimize children;
- Armed offenders, including individuals federally prohibited from possessing firearms;
- Violent crime recidivists;
- Intimate Partner Violence (IPV) offenders who commit a violent offense stemming from IPV and/or who use firearms during an IPV crime;
- Violent offenders who possess firearms while distributing controlled substances; and
- Violent offenders involved in human trafficking.
“The goal of bringing this committee together is to make Wyoming safer by supporting local and state law enforcement and prosecutors, and by prosecuting appropriate violent offenders in federal court where they will receive long prison sentences,” said Acting U.S. Attorney Eric Heimann.
In early 2024, the Laramie County Sheriff’s Office and the Cheyenne Police Department were approved to apply for and receive PSN grant funding to help prevent and reduce violent crime. Officials from both agencies, as well as officials from the Laramie County District Attorney’s Office, have since joined the PSN Leadership Committee to provide important insight regarding the needs and concerns of Laramie County and participate in the development of programs and strategies that emphasize the core elements of PSN.
"Project Safe Neighborhoods is a vital partnership between all levels of law enforcement,” said Cheyenne Police Chief Mark Francisco. “By combining our resources and expertise, we can effectively identify offenders, enhance prevention efforts, and strengthen our communities.”
The program was tailored to combat the local violent crime problems. It enhances coordination and cooperation amongst public safety partners to ensure tactics, resources, and intelligence are integrated to identify and target violent offenders and criminal organizations operating within Laramie County.
Sheriff Brian Kozak said he will use the PSN resources to provide exceptional service to other criminal justice agencies in Laramie County and to help domestic violence victims. The Sheriff will host an advanced homicide investigation course for local detectives, and he plans to purchase state-of-the-art cameras to capture a victim’s bruising following a domestic assault. Sheriff Kozak said, “The collaboration of the PSN Leadership Committee will help us to bring about justice following a violent crime.”
The following agencies are currently participating in the PSN program and are represented on the Leadership Committee:
- Cheyenne Police Department
- Laramie County District Attorney’s Office
- Laramie County Sheriff’s Office
- Wyoming Association of Sheriffs and Chiefs of Police
- Wyoming Department of Corrections
- Wyoming Division of Criminal Investigation
- Bureau of Alcohol, Tobacco, Firearms, and Explosives
- Drug Enforcement Administration
- Federal Bureau of Investigation
- Homeland Security Investigations
- United States Attorney’s Office
- United States Marshals Service
"The Wyoming Division of Criminal Investigation is honored to be partnered with our state, local, and federal partners on the PSN initiative,” said Ronnie Jones, Director of the Wyoming Division of Criminal Investigation. “I am thankful for the cooperation, commitment and work the United States Attorney's office has provided to this program to help make our state a safer place to live and work. We look forward to seeing how all the stakeholders work together to implement new ideas and strategies to address local violent crime."
To learn more about programs within the U.S. Attorney’s Office for the District of Wyoming, visit www.justice.gov/usao-wy. For more information about Project Safe Neighborhoods, visit www.justice.gov/psn.
U.S. Attorney’s Office and ATF Highlight Emerging Threat Posed by Machinegun Conversion DevicesRead the Press Release
MADISON, WIS. – The U.S. Attorney’s Office for the Western District of Wisconsin and the ATF Madison Field Office are joining together to highlight the dangers of machinegun conversion devices (MCDs). The devices are an emerging threat, and law enforcement agents are increasingly finding them in Wisconsin.
About an inch-long, an MCD is an illegal after-market device that converts a semi-automatic firearm into a fully functioning machinegun. A firearm equipped with a machinegun conversion device is extremely dangerous, even for experienced firearms users, because it is difficult to control and is capable of firing 50 rounds in four seconds with a single pull of the trigger. For more information about the devices, please see the attached ATF materials and video link below.
“Machinegun conversion devices are extraordinarily dangerous,” said U.S. Attorney Timothy M. O’Shea. “These devices are often used in weapons that are not designed to function as machine guns, thus making the weapons incredibly difficult to aim. Discharging a weapon equipped with such a device in a public area endangers every child and adult within range. Keeping these illegal devices off the streets in Wisconsin and keeping our citizens free of fear from these weapons is one of my highest priorities,” said O’Shea.
“The proliferation of machinegun conversion devices adds another, even more deadly, layer to firearms violence” said Special Agent William Fulton, Resident Agent in Charge of the ATF Madison Field Office. “These devices, in the wrong hands, can have catastrophic consequences. ATF will continue to aggressively work with our partners to take these devices off the streets.”
“Machinegun conversion devices pose a significant threat to public safety,” said Eric Rice, resident agent in charge for Homeland Security Investigations in Wisconsin. “Through enforcement, investigation, and education, we are committed to raising awareness about the dangers of these devices. Law enforcement agencies will continue to collaborate to dismantle networks involved in their distribution and use. By enhancing our investigative capabilities and educating the public about the risks, we can better protect our communities and ensure public safety.”
To combat the rise in MCDs, U.S. Attorney O’Shea also announced that his office is partnering with law enforcement agencies, including ATF, Homeland Security Investigations (HSI), and the U.S. Postal Service to implement a district-wide strategy. On November 21, 2024, U.S. Attorney O’Shea and ATF SA Fulton explained the district’s strategy on a call with Wisconsin law enforcement and district attorneys. The strategy has three parts: enforcement, investigation, and education.
Regarding enforcement, the U.S. Attorney’s Office will vigorously prosecute cases involving MCDs. Although MCDs may be advertised as legal online to avoid law enforcement detection or to defeat internet advertising protocols, that is not true. The possession, manufacture, and/or sale of MCDs is a federal crime punishable by up to 10 years in prison and fines up to $250,000. An MCD on its own is considered an illegal machine gun under federal law and cannot be possessed, even without a firearm.]
Regarding investigation, U.S. Attorney O’Shea explained that ATF has provided MCD guides for local law enforcement agencies and will provide training on MCDs and ATF resources throughout the state. Also, because many MCDs are shipped through the U.S. Mail and other carriers, the Department of Homeland Security and U.S. Postal Service are working with ATF to identify for further investigation packages potentially containing MCDs that were shipped to individuals involved in gun violence or affiliated with criminal gangs.
Finally, regarding the education part of the strategy, the U.S. Attorney’s Office and ATF are reaching out to local media, Crime Stoppers groups, and local public health departments to get the word out about the danger of MCDs.
During 2024, the U.S. Attorney’s Office has prosecuted the following cases involving MCDs. Several more MCD cases are under investigation. Federal sentences are served without the possibility of parole.
NameSentence Investigating AgenciesByron Ellison3.5 yearsDane County Narcotics Task Force
ATF Madison Crime Gun Task Force
Byron D. Broomfield
6.5 yearsBeloit Police Department
DCI
Drug Enforcement Administration
Wisconsin State Patrol
ATF Madison Crime Gun Task Force
Damarion Jackson21 monthsMonona Police Department
Madison Police Department
Fitchburg Police Department
ATF Madison Crime Gun Task Force
Ramogi Carr54 monthsMadison Police Department
Fitchburg Police Department
ATF Madison Crime Gun Task Force
Jontrae M. LarsenCase pendingATF Madison Crime Gun Task Force
DCI
Waunakee Police Department
Deforest Police Department
Monona Police Department
Donald R. Spivey, Jr.Case pendingMadison Police Department
ATF Madison Crime Gun Task Force
Damon L. ClarkCase pendingEau Claire Police Department
FBI
ATF Madison Crime Gun Task Force
Attachment:
ATF Factsheet.pdf
atf_fact_sheet_machinegun_conversion_devices_switches_osiicid-22-118.pdfATF Video can be found here:
https://youtu.be/7VKocW4Qk4k
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Troy Man Charged with Marijuana Trafficking and Gun CrimesRead the Press Release
ALBANY, NEW YORK – Omjasisa Kentu Felder, age 53, of Troy, New York, has been charged with marijuana trafficking and gun crimes.
United States Attorney Carla B. Freedman; Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Troy Police Chief Daniel DeWolf; and Erin Keegan, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
The indictment alleges that Felder possessed a 9mm handgun in furtherance of a drug trafficking crime, possessed the handgun as a convicted felon, and possessed marijuana with intent to distribute in November 2022, and conspired to distribute marijuana between 2021 and November 2022. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Felder was arraigned today in Albany, before United States Magistrate Judge Daniel J. Stewart, and ordered detained pending trial.
Felder faces at least 5 years and up to life imprisonment for possession of a firearm in furtherance of a drug trafficking crime; up to 15 years in prison for possession of a firearm by a convicted felon; and up to 5 years in prison on each of the marijuana trafficking counts. He also faces a fine of up to $250,000 on each count and a term of post release supervision of at least 2 years and up to life.
The ATF, DEA, Troy Police Department and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Three Plead Guilty to Conspiracy Involving 15 Kilograms of CocaineRead the Press Release
BOSTON – A Honduran man living in Puerto Rico, and two co-conspirators living in Massachusetts, have pleaded guilty to their roles in a conspiracy to distribute 15 kilograms of cocaine. One of the two Massachusetts co-conspirators also pleaded guilty to distributing thousands of counterfeit pills containing fentanyl.
Linette Davila, 42, of Methuen, Mass. pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances, involving 500 grams or more of cocaine, and one count of distribution of 500 grams or more of cocaine. U.S. District Court Judge Nathaniel M. Gorton scheduled Davila’s sentencing for Feb. 26, 2025.
Rony Valencia Lopez, 31, of Puerto Rico, pleaded guilty to one count of conspiracy to distribute controlled substances. Judge Gorton scheduled Valencia Lopez’s sentencing for Dec. 10, 2024.
Luis Pena Arias, 28, of Lawrence, Mass. pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances, involving 5 kilograms or more of cocaine and one count of distribution of 500 grams or more of cocaine. Pena Arias also pleaded guilty to four counts of distribution of fentanyl, involving variously 400 grams or more of fentanyl and 40 grams or more of fentanyl. Judge Gorton scheduled Pena Arias’s sentencing for Jan. 10, 2025.
The defendants were indicted by a federal grand jury in January 2024.
On four occasions in the summer of 2023, Pena Arias sold more than 10,000 counterfeit oxycodone pills containing fentanyl to an undercover officer. The same summer, law enforcement contacted Rony Valencia Lopez, an associate of Pena Arias, who lived in Puerto Rico and reportedly had access to large kilogram quantities of cocaine. In telephone conversations and during a meeting in Puerto Rico, Valencia Lopez agreed to provide 15 kilograms of cocaine, which he said were located in Massachusetts. In September 2023, Valencia Lopez flew to Boston to facilitate the sale and later joined Pena Arias to meet with undercover law enforcement at a hotel in Andover, Mass. where they agreed to provide the 15 kilograms – five kilograms at a time. That evening, Davila arrived at the hotel with four kilograms of cocaine. All three defendants were subsequently taken into custody.
The charges of conspiracy to distribute and to possess with intent to distribute controlled substances (involving five kilograms or more of cocaine) and distribution of 400 grams or more of fentanyl each provide for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charges of conspiracy to distribute and to possess with intent to distribute controlled substances (involving 500 grams or more of cocaine), distribution of 500 grams or more of cocaine and distribution of 40 grams or more of fentanyl each provide for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of conspiracy to distribute and to possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. 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 Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Special assistance was provided by the Massachusetts State Police, the Caribbean Division of the DEA, U.S. Customs & Border Protection and the Andover Police Department. Assistant U.S. Attorneys Samuel R. Feldman and Annapurna Balakrishna of the Narcotics & Money Laundering Division are prosecuting the case.
Sierra Leone Man and International Fugitive Sentenced to 40 Months in Federal Prison for Fraudulent Car Loan SchemeRead the Press Release
CONCORD – A Sierra Leone man and former Manchester businessman was sentenced today in federal court for fraudulently obtaining more than $400,000 in car loans, U.S. Attorney Jane E. Young announces.
Solomon Yarteh, 50, was sentenced by U.S. District Court Judge Paul J. Barbadoro to 40 months in prison and 3 years of supervised release. On July 1, 2024, Yarteh pleaded guilty to three counts of bank fraud. Co-defendants Donna Silva, Niurka Lebron, and Robesteur St. Felix pled guilty and were sentenced in 2022.
“The defendant enlisted his friends and family members to submit multiple fraudulent loan applications to lenders over $400,000,” said U.S. Attorney Young. “He left the United States after learning of an investigation and was apprehended in Dubai several years later. I thank our law enforcement partners here and across the world for diligently working to bring fraudsters like the defendant to justice.”
“The sentencing of Mr. Yarteh is a direct result of the hard work of the prosecution team and law enforcement partners here in New Hampshire to secure his conviction and the international partnerships which allowed him to be brought to justice,” said Special Agent in Charge Ketty Larco-Ward of the United States Postal Inspection Service.
Yarteh was the owner and President of Allied Imports, a car wholesaler located in Manchester. As a wholesaler, Allied Imports was not licensed to conduct retail sales of vehicles and could only sell to dealers. Allied Imports was located next to Cap’s Auto Sales, a business licensed to sell cars. Cap’s Auto was controlled by St. Felix.
Between February 2019 and July 2019, Yarteh led a scheme to fraudulently obtain multiple car loans from multiple financial institutions. The loans were supposed to be secured by vehicles being sold by Allied Imports or Cap’s Auto. Yarteh and his co-conspirators used fraudulent documents to trick lenders into believing that Allied Imports or Cap’s Auto owned and held title to the vehicles when the cars actually belonged to other companies. The loan proceeds were deposited into accounts Yarteh controlled. Yarteh was able to fraudulently obtain over $411,000 through this scheme and attempted to get another $217,000.
Yarteh was originally indicted in 2021 but had already left the United States. INTERPOL then issued a Red Notice for his arrest. In spring 2023, authorities in the United Arab Emirates arrested Yarteh in Dubai. With the cooperation of the Emirati government, Yarteh was removed to the United States in late November 2023. He has continuously been in custody since.
The case was investigated by the United States Secret Service and United States Postal Inspection Service. The New Hampshire Banking Department, INTERPOL, Department of Justice’s Office of International Affairs, and Government of the United Arab Emirates provided valuable assistance. Assistant U.S. Attorneys Alexander S. Chen and Charles L. Rombeau prosecuted the case.
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Shaktoolik man charged with cyberstalking, sexual exploitation of a childRead the Press Release
FAIRBANKS, Alaska – A federal grand jury in Alaska returned an indictment charging a Shaktoolik man with cyberstalking adults and children and sexually exploiting children to produce and possess child pornography.
According to court documents, between December 2021 to July 2023, Matthew Jackson, 22, allegedly cyberstalked one adult and two minor victims with the intent to injure, harass and cause substantial emotional distress to the victims. The indictment also alleges an enhanced statutory penalty for conduct that would constitute sexual abuse. At the same time, Jackson also allegedly sexually exploited three minors, two of which were the minor victims he was cyberstalking, in order to produce child sexual abuse material.
The indictment also alleges that on Aug. 1, 2023, Jackson knowingly possessed material that contained child sexual abuse.
Jackson was arrested on Nov. 26 and is charged with three counts of cyber stalking with an enhanced penalty allegation, three counts of sexual exploitation of a child: production of child pornography and one count of sexual exploitation of a child: possession of child pornography. The defendant is scheduled for his initial court appearance tomorrow before U.S. Magistrate Judge Scott A. Oravec of the U.S. District Court for the District of Alaska. If convicted, he faces between 15 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker for the District of Alaska and Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office made the announcement.
The FBI Anchorage Field Office, with assistance from the Alaska State Troopers, is investigating the case. If anyone has information concerning Jackson’s alleged actions or may have encountered someone in person or online using the name Matthew Jackson or Matt Jackson, please contact the FBI Anchorage Field Office at (907) 276-4441 or anonymously at tips.fbi.gov.
Assistant U.S. Attorney Carly Vosacek is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rutland Man Sentenced in Gun CaseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on December 2, 2024, John Ryea, 41, of Rutland, Vermont, was sentenced by United States District Judge William K. Sessions III to a term of approximately two and one-half months’ imprisonment to be followed by a three-year term of supervised release. Ryea previously pleaded guilty to possessing a stolen firearm after having been convicted of a misdemeanor crime of domestic violence.
According to court records, Ryea has a November 30, 2022 misdemeanor domestic violence conviction from Rutland Superior Court where he admitted to punching his then live-in girlfriend in the jaw. He remained on probation in that state court case when he committed the crime to which he pleaded guilty.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Vermont State Police, the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Vermont Drug Task Force.
The case was prosecuted by Assistant U.S. Attorney Colin Owyang. Ryea was represented by Federal Public Defender Michael Desautels.
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.
Russian National Arrested for Attempting to Illegally Export Aircraft to Russia by Transshipping Through ArmeniaRead the Press Release
Sergey Nechaev, a dual U.S.-Russian citizen, was arrested today in the Southern District of Georgia on charges related to the unlawful attempted export of two small aircraft to Russia. In conjunction with the arrest, the U.S. government also seized the aircraft.
According to the indictment, between March 3, 2023, and March 24, 2023, Nechaev engaged in a scheme to violate and evade U.S. export control laws and regulations by attempting to smuggle two Cessna aircraft from the United States to Russia by transshipping them through Armenia. Specifically, after the U.S. government imposed stricter controls on Russia in February 2022, Nechaev attempted to export a 1968 Cessna 172K and a 1973 Cessna, valued together at approximately $170,000, to a purported Russian flight school, without the required license or authorization from the Department of Commerce. To conceal the true end user and destination of the aircraft, Nechaev falsely represented that the end user and destination were in Armenia.
Nechaev is charged with attempting to export controlled goods without a license in violation of the Export Control Reform Act (ECRA), smuggling goods contrary to U.S. law, and causing the submission of false and misleading information in Electronic Export Information paperwork submitted through the Automated Export System. If convicted, Nechaev faces a maximum penalty of 20 years in prison for the unlawful attempted export of controlled goods; up to 10 years in prison for smuggling; and up to five years in prison for falsifying export information. The aircraft will also be subject to forfeiture as property involved in the commission of the crime. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Department of Commerce’s Office of Export Enforcement, the U.S. Department of Homeland Security’s Homeland Security Investigations, the U.S. Customs and Border Protection, and the Federal Aviation Administration are investigating the case.
Assistant U.S. Attorneys Darron Hubbard and L. Alexander Hamner for the Southern District of Georgia and Trial Attorneys Leslie Esbrook and Fatema Merchant of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rotterdam Felon Pleads Guilty to Unlawful Possession of a FirearmRead the Press Release
ALBANY, NEW YORK – Jesse Taber, age 46, of Rotterdam, New York, pled guilty today to unlawfully possessing a firearm.
United States Attorney Carla B. Freedman and Bryan Miller, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Taber admitted that on December 26, 2023, inside of his Rotterdam residence, he unlawfully possessed a 12-gauge Stoeger Coach Gun shotgun. A prior felony conviction prevented Taber from lawfully possessing the shotgun.
When he is sentenced on April 2, 2025, Taber faces a maximum term of 15 years in prison, a fine of up to $250,000, and a term of supervised release up to 3 years. 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.
ATF investigated the case with the assistance of the Rotterdam Police Department. Assistant U.S. Attorney Rick Belliss is prosecuting the case.
Rio Rico Man Indicted After Attempting to Flee Nogales Port of EntryRead the Press Release
TUCSON, Ariz. – On November 13, 2024, a federal grand jury indicted Miguel Soto-Morando, of Rio Rico, on one count of Smuggling Ammunition from the United States, Assault on a Federal Officer with a Deadly or Dangerous Weapon, and Possession of Ammunition by a Prohibited Person.
According to the complaint filed in this case, on October 16, 2024, Soto-Morando attempted to leave the United States through the DeConcini Port of Entry in Nogales. After Soto-Morando was referred to secondary inspection, he tried to flee into Mexico. The victim, a United States Customs and Border Protection officer, reached into Soto-Morando’s truck and attempted to prevent Soto-Morando’s escape. With the officer’s arm inside the vehicle, Soto-Morando accelerated toward the gate leading into Mexico but crashed into a pillar located in the United States. The collision caused the officer to be ejected from Soto-Morando’s vehicle.
When Soto-Morando got out of his vehicle, two officers, including the victim officer, discharged their firearms, striking Soto-Morando twice. A subsequent search of a spare tire from the vehicle uncovered 3,140 rounds of ammunition destined for Mexico. Soto-Morando is also alleged to be a convicted felon who is prohibited from possessing firearms or ammunition.
A conviction for Smuggling Goods from the United States carries a maximum penalty of 10 years in prison. A conviction for Assault on a Federal Officer – Deadly or Dangerous Weapon carries a maximum penalty of 20 years in prison. A conviction for Possession of Ammunition by a Prohibited Person carries a maximum penalty of 15 years in prison. Each offense also carries a fine of up to $250,000 and three years of supervised release.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation is conducting the investigation in this case. Assistant United States Attorney Nathaniel J. Walters, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-24-07997-RCC
RELEASE NUMBER: 2024-167_Soto-Morando# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Parkersburg Man Pleads Guilty to Straw Purchase CrimeRead the Press Release
CHARLESTON, W.Va. – Laikin Williams, 25, of Parkersburg, pleaded guilty today to making a false statement in acquisition of a firearm.
According to court documents and statements made in court, on August 5, 2022, Williams purchased a Taurus model PT111 G2A 9mm pistol at a Parkersburg business. Williams admitted that he bought the firearm for another individual, and falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that he was the purchaser of the firearm when he knew he was buying it for the other individual.
Williams is scheduled to be sentenced on March 17, 2025, and faces a maximum penalty of five years in prison, 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the assistance provided by the Parkersburg Violent Crime and Narcotics Task Force.
United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney D. Keith Randolph and former Assistant United States Attorney Troy D. Adams have prosecuted the case.
This case was prosecuted under the criminal provisions of the Bipartisan Safer Communities Act (BSCA), which Congress enacted and the President signed in June 2022. BSCA is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
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-133.
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New York Doctor Charged for Receiving KickbacksRead the Press Release
BOSTON – A New York doctor was charged today in federal court in Boston for allegedly receiving kickbacks in exchange for ordering medically unnecessary brain scans.
Dr. Vishnudat Seodat, 75, of Mattituck, N.Y. was charged and has agreed to plead guilty to one count of conspiracy to commit health care fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, Seodat, an internist in Long Island, N.Y., was a licensed medical doctor in the State of New York for approximately 36 years. It is alleged that from approximately June 2013 through December 2019, Seodat conspired with others, including a principal for a mobile medical diagnostics company that performed transcranial doppler (TCD) scans, to order hundreds of medically unnecessary TCD scans in exchange for kickbacks. TCD scans are brain scans that measure blood flow in parts of the brain. It is further alleged that Seodat and his co-conspirators used false diagnoses to order the unnecessary brain scans, for which a co-conspirator would submit claims to Medicare and other insurance companies, including private insurance companies, on behalf of the medical diagnostic company for payment. In exchange, Seodat was paid cash kickbacks of approximately $100 per test. According to the charging documents, the scheme resulted in fraudulent bills of approximately $1 million to Medicare and private insurance companies.
The charge of conspiracy to commit health care fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Jonathan Wlodyka, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; Carol S. Hamilton, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office. Assistant U.S. Attorneys Howard Locker and Mackenzie Queenin of the Health Care Fraud Unit are 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.
Multiple Conspirators Sentenced in $54.3 Million Medicare Fraud SchemeRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Luis Lacerda (37, West Palm Beach) to three years and five months in federal prison, Omar Solari (36, Fort Lauderdale) to 2 years and six months in federal prison, Michael Murphy (38, Fort Lauderdale) to 15 months in federal prison, and Joelson Viveros (45, Boca Raton) to 5 years’ probation for their respective roles in a $54.3 million health care fraud scheme in which the defendants paid kickbacks and bribes to telemarketers and telemedicine providers to secure orders for medically unnecessary prescriptions that were billed to Medicare. The court also ordered Lacerda to forfeit $15,600,333.30 and pay $54,303,526 in restitution; Solari to forfeit $6,341,240.58 and pay $36,246,251 in restitution; Murphy to forfeit $3,650,943.36 and pay $8,374,175 in restitution; and Viveros to forfeit $894,116.45 and pay $3,017,135 in restitution. Each previously pleaded guilty to their role in a conspiracy in which the co-conspirators owned and operated pharmacies that participated in the Medicare program, including one located in Jacksonville.
According to court documents, from approximately 2018 through 2021, the co-conspirators paid kickbacks and bribes to telemarketing companies in exchange for recruiting Medicare beneficiaries to accept prescriptions for various medications – mainly topical creams – which the beneficiaries did not want or need. Some of the co-conspirators also operated companies that engaged in telemarketing activities to develop beneficiary leads.
The co-conspirators then paid kickbacks and bribes to telemedicine companies that employed or contracted with physicians who signed the prescriptions. The physicians had no physician-patient relationship with the beneficiaries and typically signed the prescriptions after a cursory telephone conversation with the beneficiary or with no contact at all. After obtaining Medicare beneficiary information and the signed prescriptions, the co-conspirators submitted claims to Medicare for medically unnecessary medications, sometimes through multiple pharmacies they owned and controlled in a practice known as “recycling.” Over the course of the conspiracy, the defendants’ pharmacies were reimbursed more than $54.3 million for medically unnecessary prescriptions by Medicare Part D.
This case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney David B. Mesrobian and Trial Attorney Gary Winters of the Department of Justice – Criminal Division, Fraud Section. The forfeiture was handled by Assistant United States Attorneys Jennifer M. Harrington and Mai Tran.
Mexican National Guilty of Misprision of a FelonyRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that on November 26, 2024, FELIPE GARCIA, (“GARCIA”), age 46, a Mexican national residing in California, pled guilty before U.S. District Judge Susie Morgan to misprision of a felony, in violation of Title 18, United States Code, Section 4. Judge Morgan scheduled sentencing for February 27, 2025. At sentencing, GARCIA faces up to 3 years imprisonment, up to a $250,000 fine, at least 1 year of supervised release, and a mandatory $100 special assessment fee.
According to court records, an ongoing investigation by the Drug Enforcement Administration and the Louisiana State Police, uncovered a methamphetamine distribution ring operating in New Orleans that was receiving methamphetamine from California via U.S. mail. Law enforcement in California, specifically the Ontario Police Department, intercepted packages, containing large amounts of methamphetamine, destined for New Orleans. Further investigation uncovered that GARCIA mailed these packages from California.
United States Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, the Ontario (California) Police Department, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
Mexican Man Guilty of Federal Controlled Substances Act Violations and Money LaunderingRead the Press Release
NEW ORLEANS, LOUISIANA – Today, U.S. Attorney Duane A. Evansannounced that JOSE OMAR VARGAS-DUQUE (“VARGAS”), age 39, a resident of Mexico, pled guilty on November 27, 2024, before United States District Judge Jane Triche Milazzo to a two-count superseding indictment. Count One charged VARGAS with conspiracy to distribute, and possess with intent to distribute, five kilograms or more of cocaine, one kilogram or more of heroin, and four hundred grams or more of fentanyl, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A). Count Two charged VARGAS with conspiracy to launder monetary instruments, in violation of Title 18, United States Code, Sections 1956(a)(2)(A) and 1956(h).
According to court documents, VARGAS, and other co-conspirators, distributed multi-kilogram quantities of cocaine, fentanyl, and heroin within the Eastern District of Louisiana. Additionally, VARGAS, and other co-conspirators, traveled between New Orleans, and other states, in order to transport U.S. Currency and narcotics on behalf of a Drug Trafficking Organization, from Louisiana to Mexico.
As to Count One, VARGAS faces a minimum term of imprisonment of ten years, up to life imprisonment, a fine of up to $10,000,000.00, at least five years of supervised release, and a mandatory special assessment fee of $100. As to Count Two, VARGAS faces up to twenty years imprisonment, a fine of up to $500,000.00, up to three years of supervised release, and a mandatory special assessment fee of $100.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office, and assisted by the Federal Bureau of Investigation, the United States Border Patrol, the Gretna Major Crimes Task Force, the Kenner Police Department, the Jefferson Parish Sheriff’s Office, the St. John’s Parish Sheriff’s Office, the Orleans Parish Sheriff’s Office, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
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Manager of Chatham County company charged with skimming hundreds of thousands of dollars from employer with fake invoicesRead the Press Release
SAVANNAH, GA: The manager of a Chatham County company has been charged in a newly unsealed indictment with creating fraudulent invoices for fake vendors to steal hundreds of thousands of dollars from a building materials company.
John Laakso, a/k/a “John Larson, a/k/a “John Trebesch,” 56, of Sarasota, Florida, is charged in a federal indictment with four counts of Wire Fraud, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. Conviction on each charge would subject Laakso to a statutory penalty of up to 20 years in prison, along with substantial fines and restitution, and a period of supervised release upon completion of any prison term. There is no parole in the federal system.
“This indictment alleges a scheme in which an employee betrayed the trust of an employer for self-enrichment at the employer’s expense,” said U.S. Attorney Steinberg. “We commend the work of our law enforcement partners in unraveling this fraudulent operation.”
As described in the indictment, Laakso worked as a contractor, and later as engineering manager, with GAF Materials Corporation. One of his duties was to procure equipment and services for the GAF facility in Savannah.
The indictment alleges that from 2021 to 2023, Laakso “assumed fictitious personas and created pass-through companies, hiding these activities from GAF.” He would award contracts to those fictitious companies which, in turn, would subcontract with an actual vendor to provide the product or service at a lower cost. Laakso would then keep the difference in price “for his own use and enjoyment.”
The scheme resulted in GAF paying more than $1.3 million in fraudulent invoices, with Laakso keeping hundreds of thousands for himself from the marked-up costs.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI, and is prosecuted for the United States of America by Southern District of Georgia Assistant U.S. Attorneys Darron J. Hubbard and Bradford C. Patrick.
Lumberton-based Behavioral Health Provider Agrees to Pay over $2.5 Million to Settle Medicaid Fraud AllegationsRead the Press Release
RALEIGH, N.C. – United States Attorney Michael F. Easley, Jr. announced today that Southeastern Behavioral Healthcare Services, LLC (“Southeastern”), a behavioral health business in Lumberton and Maxton, and its owners Bertha Hutchinson and Virgil Hutchinson (“the Hutchinsons”), have agreed to pay $2,505,000.00 to settle civil allegations that they falsely billed North Carolina Medicaid for services that were not rendered. Southeastern has also agreed to enter an Integrity Agreement with the Office of Inspector General - United States Department of Health and Human Services as part of the settlement.
Specifically, the United States and the State of North Carolina allege that Southeastern and the Hutchinsons improperly submitted claims to North Carolina Medicaid for services that were not in fact rendered, evidenced by recipient interviews establishing that services were not necessary at all, were systematically not rendered as billed, that services were billed for patients who were incarcerated or deceased on the billed date of services, and by a pervasive lack of medical records supporting either the provision of or necessity for the billed services, during the period from March 1, 2016, through July 14, 2020. The Governments allege that Southeastern’s and the Hutchinsons’ conduct violated the Federal and North Carolina False Claims Acts.
“This is yet another example of the U.S. Attorney’s Office and the North Carolina Attorney General’s Office working together to proactively pursue fraud in our publicly-funded healthcare programs,” said U.S. Attorney Michael F. Easley, Jr. “Billing taxpayer-funded healthcare programs for services that are not rendered will not be tolerated. Our office will continue to work with the North Carolina Attorney General’s Office to root out healthcare fraud within our public healthcare programs and hold providers accountable for engaging in fraud, waste, and abuse.”
“Medical providers are required to strictly adhere to the law when billing Medicaid for services,” said Special Agent in Charge Kelly Blackmon of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, in collaboration with our law enforcement partners, remains committed to investigating improper billings submitted to federally funded health care programs.”
“Medicaid dollars are taxpayer dollars, and health care providers need to be responsible stewards of this money,” said Attorney General Josh Stein. “I’m grateful for U.S. Attorney Easley’s partnership to protect the Medicaid program and fight health care fraud.”
The Federal and North Carolina False Claims Acts authorize the Governments to recover triple the money falsely obtained, plus substantial civil penalties for each false claim submitted.
It should be noted that the civil claims resolved by settlement here are allegations only, that there has been no judicial determination or admission of liability.
This matter was investigated by the U.S. Attorney’s Office for the Eastern District of North Carolina, the Office of Inspector General – United States Department of Health and Human Services (OIG-HHS), and the Medicaid Investigations Division of the North Carolina Attorney General’s Office (MID). Special Deputy Attorney General Matthew R. Petracca, who also serves as a Special Assistant United States Attorney, represented the Government and the State of North Carolina.
The U.S. Attorney’s Office for the Eastern District of North Carolina, in partnership with law enforcement agencies and state entities, investigates and prosecutes healthcare providers that defraud government programs, including Medicare and Medicaid, and abuse their patients. The Medicaid Investigations Division investigates and prosecutes healthcare providers that defraud the Medicaid program, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patients’ private funds in nursing homes that receive Medicaid funding. To report Medicare fraud or patient abuse in North Carolina, please visit the United States Department of Health and Human Services’ website at https://oig.hhs.gov/fraud/. To report Medicaid fraud or patient abuse in North Carolina, please call the MID at 919-881-2320.
Long-Time Human Smuggler Sentenced to 33 Months in PrisonRead the Press Release
PHOENIX, Ariz. – Tonya Durinda Romero, 37, of Phoenix, was sentenced on November 14, 2024, by United States District Judge John J. Tuchi, to 33 months in prison, followed by three years of supervised release. Romero pleaded guilty to Conspiracy to Transport Illegal Aliens on July 31, 2024.
Romero admitted that she was a member of a conspiracy that transported undocumented noncitizens from southern Arizona to the Phoenix metropolitan area. She was involved in renting stash houses to harbor the noncitizens and providing vehicles to others to transport them further into the United States. Romero was stopped on January 30, 2024, by a Pinal County Sheriff’s Office deputy sheriff because her registration had expired; the deputy also determined that Romero was driving with a suspended license and had no insurance. Romero was arrested and transported to the Casa Grande Border Patrol station for an in-depth interview, during which she admitted to law enforcement that she had been involved in human smuggling since she was 16 years old.
Customs and Border Protection’s United States Border Patrol, Homeland Security Investigations, and the Pinal County Sheriff’s Office conducted the investigation in this case. Assistant U.S. Attorney Lisa E. Jennis, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-24-00346-PHX-JJT
RELEASE NUMBER: 2024-168_Romero# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Lebanon Woman Sentenced to 15 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Lebanon, Mo., woman was sentenced in federal court today for her role in a conspiracy to distribute methamphetamine.
Evelyn J. Dame, 50, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years and eight months in federal prison without parole.
On April 15, 2024, Dame pleaded guilty to participating in a conspiracy to distribute methamphetamine in Christian and Greene counties from Dec. 16, 2020, to June 2, 2022.
Law enforcement officers in Springfield, Mo., conducted a traffic stop of a vehicle in which Dame was a passenger on May 6, 2021. Dame admitted that before the vehicle stopped, she threw a duffel bag out of the car window that contained two one-pound bags of methamphetamine, a small black zipper case that contained five baggies of methamphetamine, and a bank bag that contained $4,220. Dame also admitted the cash was proceeds from her distribution of methamphetamine.
According to court documents, the driver and owner of the vehicle, Kevin Bruce Rogers, was later identified as the victim of an unsolved homicide.
Dame has a prior federal felony conviction for conspiracy to distribute methamphetamine, for which she was sentenced to three years in prison in July 2013. Following incarceration, her term of supervised release was revoked in October 2018 after she was arrested for possessing a controlled substance; she was sentenced to serve another five months in federal prison.
Dame is the third defendant in this case to be sentenced. Robert Jason Smith, 48, of Ozark, Mo., was sentenced on Sept. 30, 2024, to 25 years in federal prison without parole. Jill M. Matthews, 46, of Ozark, was sentenced on Nov. 14, 2024, to 18 months in federal prison without parole.
Co-defendant Terry M. Schenks, 54, of Ozark, has pleaded guilty to his role in the drug-trafficking conspiracy and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Christian County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Greene County, Mo., Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Justice Department Files Civil Forfeiture Complaint Against Sanctioned Oligarch’s U.S. Music Studio Sale ProceedsRead the Press Release
Note: View the complaint here.
A civil forfeiture complaint was filed today for $3.4 million in proceeds from the sale of a music studio in Burbank, California. The complaint alleges that the proceeds, which are beneficially owned by Russian oligarch Oleg Deripaska, are the proceeds of sanctions violations. An indictment charging Deripaska with sanctions violations had been unsealed on Sept. 29, 2022, and Deripaska remains at large.
“As the allegations in the complaint once again demonstrate, those who have illicitly accumulated great wealth in support of lawlessness and international chaos invariably turn to the safety and stability of the United States’ rule of law principles in order to preserve their ill-gotten gains. It is predictable, hypocritical, and illegal,” said Co-Director Michael Khoo of Task Force KleptoCapture. “We are nearly three years into Russia’s unprovoked further invasion of Ukraine, but today’s actions show that Task Force KleptoCapture remains vigilant and fully engaged in its mission to protect the American financial system against the abuses of criminal actors.”
“Today’s filing of a civil forfeiture complaint against over $3 million in illicit proceeds of Oleg Deripaska exemplifies this office’s commitment to utilizing all available legal remedies to enforce our critical sanctions program,” said U.S. Attorney Damian Williams for the Southern District of New York. “We remain committed to piercing the opaque financial networks utilized by sanctioned oligarchs attempting to illegally transact business in U.S. dollars.”
“As alleged, Oleg Deripaska, an OFAC Specially Designated National, through a series of companies and associates attempted to earn over $3 million in proceeds from the sale of a California-based music studio,” said Acting Special Agent in Charge James E. Dennehy of the FBI. “Today’s forfeiture filing shows the FBI’s commitment to stopping individuals from obfuscating their activities to violate sanctions. The FBI will continue to enforce the national security laws of the United States and will ensure any violation of these laws and sanctions is punished accordingly.”
According to the court documents, on April 6, 2018 (the Designation Date), the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Oleg Deripaska as a Specially Designated National (SDN) in connection with its finding that the actions of the Government of the Russian Federation in Ukraine constitute an unusual and extraordinary threat to the national security and foreign policy of the United States. Deripaska was sanctioned for his support of the Russian government and for his activity in the Russian energy sector. On or about the same date, OFAC also designated Basic Element Limited, EN+ Group and other entities for being owned or controlled by, directly or indirectly, Deripaska.
On Sept. 29, 2022, an indictment returned by a grand jury sitting in the Southern District of New York was unsealed, charging Deripaska and his associates Olga Shriki and Natalia Mikhaylovna Bardakova with a conspiracy to violate sanctions.
As alleged in the indictment, for over four years after Deripaska was sanctioned in 2018, and in violation of those sanctions, Deripaska paid Shriki to provide various services for his benefit in the United States. These services included the sale of a music studio in Burbank, California, in 2019, as well as hundreds of thousands of dollars’ worth of other services to aid in Deripaska’s efforts to have two of his children be born in the United States in 2020 and 2022, and to purchase goods for Deripaska from the United States.
Prior to his designation by OFAC, in or about 2008, Deripaska, through a series of shell companies, acquired the music studio for over $3 million. The direct owner of the studio was an entity named Ocean Studios California LLC, which held a bank account at Wells Fargo (the Ocean Studios Account).
Between in or about 2013 and in or about 2018, Shriki lived in the United States and worked for Deripaska’s entity Basic Element in its Manhattan office. Before and after the designation date, Shriki and Deripaska’s cousin Pavel Ezubov, among others, helped to operate and fund the music studio on behalf of Deripaska, and made clear that Deripaska was the ultimate decisionmaker with regard to the music studio.
In or about July 2018, approximately three months after OFAC designated Deripaska as an SDN, Shriki created a consulting business named Global Consulting Services LLC (GCS). Through GCS, Shriki coordinated with associates of Deripaska, including Ezubov and Bardakova, to continue providing services to and for the benefit of Deripaska and to continue receiving funds from Deripaska or entities controlled by Deripaska. GCS opened a bank account at a bank in Manhattan. Between August 2018 and September 2019, the GCS account received wires totaling over $500,000 from two entities associated with Deripaska, one of which entered into a separate agreement with an indicted co-conspirator to manage other Deripaska properties abroad after the designation date.
Beginning in July 2019, the Ocean Studios account received approximately $69,000 of transfers from Shriki’s GCS account, which in turn was funded by overseas accounts tied to Deripaska, as noted above.
In or about June 2019, Shriki effectuated a sale of the contents of the music studio for more than $500,000. In December 2019, more than a year after the designation date, while employed by Deripaska, Shriki assisted with the sale of the music studio by Ocean Studios California LLC in various ways, such as preparing the property for sale, coordinating with the accounting firm for the music studio, communicating with the real estate broker to approve the sale, facilitating the payment of outstanding taxes and bills for the music studio, signing over the property deed, and liquidating the other assets in the music studio. The music studio sale resulted in net proceeds of over $3 million, which were deposited in the Ocean Studios account.
During 2020, while Shriki was employed by Deripaska and continued to perform services for Deripaska, Shriki requested that an accounting firm transfer the proceeds from the sale of the music studio to a bank account in Russia in the name of a company that funded the music studio’s accounts after the designation date — or, in the alternative, requested that the accounting firm add Shriki as a signatory on the bank account for the music studio so that Shriki could effectuate the transfer of funds on behalf of the owner. The firm declined to effectuate the wire transfer itself.
In or about March 2021, Wells Fargo made the determination to block the Ocean Studios account and the funds on deposit due to Ocean Studios account’s relationship with Deripaska. The blocked funds subject to the complaint amount to approximately $3,435,676 plus accruing interest.
The FBI is investigating the case. The Department of Justice’s Office of International Affairs assisted in the investigation.
Assistant U.S. Attorney Vladislav Vainberg for the Southern District of New York is litigating the case.
On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that, beginning in 2014, the U.S. has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Task Force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
Justice Department Files Civil Forfeiture Complaint Against Sanctioned Oligarch’s U.S. Music Studio Sale ProceedsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael Khoo, the Co-Director of Task Force KleptoCapture, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a civil forfeiture Complaint against over $3.4 million in proceeds from the sale of a music studio in Burbank California. The Complaint alleges that the proceeds, which are beneficially owned by Russian oligarch Oleg Deripaska, are the proceeds of sanctions violations. An Indictment charging Deripaska with sanctions violations had been unsealed on September 29, 2022, and Deripaska remains at large.
U.S. Attorney Damian Williams said: “Today’s filing of a civil forfeiture complaint against over $3 million in illicit proceeds of Oleg Deripaska exemplifies this Office’s commitment to utilizing all available legal remedies to enforce our critical sanctions program. We remain committed to piercing the opaque financial networks utilized by sanctioned oligarchs attempting to illegally transact business in U.S. dollars.”
Task Force KleptoCapture Co-Director Michael Khoo said: “As the allegations in the complaint once again demonstrate, those who have illicitly accumulated great wealth in support of lawlessness and international chaos invariably turn to the safety and stability of the United States’ rule of law principles in order to preserve their ill-gotten gains. It is predictable, hypocritical, and illegal. We are nearly three years into Russia’s unprovoked further invasion of Ukraine, but today’s actions show that Task Force KleptoCapture remains vigilant and fully engaged in its mission to protect the American financial system against the abuses of criminal actors.”
FBI Acting Special Agent in Charge James E. Dennehy said: “As alleged, Oleg Deripaska, an OFAC Specially Designated National, through a series of companies and associates attempted to earn over $3 million in proceeds from the sale of a California-based music studio. Today’s forfeiture filing shows the FBI’s commitment to stopping individuals from obfuscating their activities to violate sanctions. The FBI will continue to enforce the national security laws of the United States and will ensure any violation of these laws and sanctions is punished accordingly.”
According to the allegations in the Complaint filed in Manhattan federal court today and other court filings:[1]
On April 6, 2018 (the “Designation Date”), the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Oleg Deripaska as a Specially Designated National (“SDN”) in connection with its finding that the actions of the Government of the Russian Federation in Ukraine constitute an unusual and extraordinary threat to the national security and foreign policy of the U.S. Deripaska was sanctioned for his support of the Russian government and for his activity in the Russian energy sector. On or about the same date, OFAC also designated Basic Element Limited, EN+ Group and other entities for being owned or controlled by, directly or indirectly, Deripaska.
On September 29, 2022, an indictment returned by a grand jury sitting in the Southern District of New York was unsealed, charging Deripaska and his associates Olga Shriki and Natalia Mikhaylovna Bardakova with, inter alia, a conspiracy to violate sanctions in violation of 50 U.S.C. § 1705 and the Ukraine-Related Sanctions Regulations (the “Deripaska Indictment”).
As alleged in the Deripaska Indictment, for over four years after Deripaska was sanctioned in 2018, and in violation of those sanctions, Deripaska paid Shriki to provide various services for his benefit in the U.S. These services included the sale of a music studio in Burbank, California (the “Music Studio”) in 2019, as well as hundreds of thousands of dollars’ worth of other services to aid in Deripaska’s efforts to have two of his children be born in the U.S. in 2020 and 2022, and to purchase goods for Deripaska from the U.S.
Prior to his designation by OFAC, in or about 2008, Deripaska, through a series of shell companies, acquired the Music Studio for over $3 million. The direct owner of the studio was an entity named Ocean Studios California LLC, which held a bank account at Wells Fargo Bank (the “Ocean Studios Account”).
Between in or about 2013 and in or about 2018, Olga Shriki lived in the U.S. and worked for Deripaska’s entity Basic Element in its Manhattan office. Before and after the Designation Date, Shriki and Deripaska’s cousin Pavel Ezubov, among others, helped to operate and fund the Music Studio on behalf of Deripaska, and made clear that Deripaska was the ultimate decisionmaker with regard to the Music Studio.
In or about July 2018, approximately three months after OFAC designated Deripaska as an SDN, Shriki created a consulting business named Global Consulting Services LLC (“GCS”). Through GCS, Shriki coordinated with associates of Deripaska, including Ezubov and Bardakova, to continue providing services to and for the benefit of Deripaska and to continue receiving funds from Deripaska or entities controlled by Deripaska. GCS opened a bank account (the “GCS Account”) at a bank in Manhattan. Between August 2018 and September 2019, the GCS Account received wires totaling over $500,000 from two entities associated with Deripaska, one of which entered into a separate agreement with an indicted co-conspirator to manage other Deripaska properties abroad after the Designation Date.
Beginning in July 2019, the Ocean Studios Account received approximately $69,000 of transfers from Shriki’s GCS Account, which in turn was funded by overseas accounts tied to Deripaska, as noted above.
In or about June 2019, Shriki effectuated a sale of the contents of the Music Studio in the for more than $500,000. In December 2019, more than a year after the Designation Date, while employed by Deripaska, Shriki assisted with the sale of the Music Studio by Ocean Studios California LLC in various ways, such as preparing the property for sale, coordinating with the accounting firm for the Music Studio, communicating with the real estate broker to approve the sale, facilitating the payment of outstanding taxes and bills for the Music Studio, signing over the property deed, and liquidating the other assets in the Music Studio. The Music Studio sale resulted in net proceeds of over $3 million, which were deposited in the Ocean Studios Account.
During the year 2020, while Shriki was employed by Deripaska and continued to perform services for Deripaska, Shriki requested that an accounting firm transfer the proceeds from the sale of the Music Studio to a bank account in Russia in the name of a company that funded the Music Studio’s accounts after the Designation Date—or, in the alternative, requested that the accounting firm add Shriki as a signatory on the bank account for the Music Studio so that Shriki could effectuate the transfer of funds on behalf of the owner. The firm declined to effectuate the wire transfer itself.
In or about March 2021, Wells Fargo Bank made the determination to block the Ocean Studios Account and the funds on deposit due to Ocean Studios Account’s relationship with Deripaska. The blocked funds subject to the Complaint amount to approximately $3,435,676 plus accruing interest.
* * *
Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the Department of Justice’s Office of International Affairs for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorney Vladislav Vainberg is in charge of this action.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the U.S., along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
24_civ._9189_-_complaint.pdfIndianapolis Man Sentenced to Fifty Years in Federal Prison for Four Violent Online Marketplace Robberies, Including a Fatal ShootingRead the Press Release
INDIANAPOLIS— Demetris Campbell, 29, of Indianapolis, has been sentenced to fifty years in federal prison, followed by the maximum period of supervised release, following his convictions for commercial robbery conspiracy, four counts of aiding commercial robbery, and three counts of aiding the brandishing of a firearm in furtherance of a crime of violence. Campbell was convicted by a federal jury in June 2024.
According to court documents and evidence introduced at trial, between July 19 and 28, 2020, Campbell orchestrated at least four armed robberies of victims he lured to an apartment complex via the online marketplaces LetGo and OfferUp under the false premise that they were meeting to complete a sale. Campbell conspired with others to execute the robberies, including Angel Montano.
On July 19, 2020, a fifteen-year-old boy and his father agreed to purchase an iPhone from Campbell, who was using the account “Man with a Plan” on Offer Up. Campbell lured the victims to an address in Indianapolis to complete the fake transaction. When the victims arrived, three people, including Campbell and Angel Montano, approached the vehicle, and showed the victims what appeared to be an iPhone. The robbers then brandished pistols and demanded the victims’ money, striking the fifteen-year-old child in the face with a pistol. The robbers ultimately stole the victims’ cash for the purchase and from their wallets, as well as the Nike Air Jordan tennis shoes the child was wearing.
The next day, Campbell used the same Offer Up account to lure a mother and her two young children to the same apartment complex. When these victims arrived, Montano reached into her vehicle and placed the muzzle of a pistol against her body, while her two children were still in the car. He then stole the victims’ iPhones and cash.
Two days later, on July 22, 2020, Campbell used a LetGo account under the name of “Simone” to lure a woman to the same apartment complex under the false premise that she was going to be able to purchase an iPhone. Upon her arrival, Angel Montano brandished a pistol and stated “I’ll shoot you! Give me the cash!” She complied by giving him $560 in cash that she had brought for the transaction, as well as her Samsung cell phone.
Between July 21 and 28 of 2020, another victim participated in ongoing contact with Campbell who was using an account in the name of “Tony Reed” on OfferUp regarding the advertised sale of two iPhones for $1400. They ultimately arranged to meet on July 28 at a location near Adams and 21st Street in Indianapolis. This victim brought his brother with him to meet and complete the transaction. Upon their arrival, the brothers felt uneasy and attempted to leave. Angel Montano then blocked them with his car, approached their vehicle, and fired into it killing the purchaser’s brother and seriously wounding the purchaser. Campbell was present with Montano, and watched the shooting occur.
The following morning, on July 29, 2020, IMPD officers arrested Campbell after tracing his name and location to the fake usernames used in the robberies. It was later discovered that Campbell was coordinating the schemes with Angel Montano, then selling the stolen phones and splitting the profit.
In February 2023, Montano was sentenced to forty years in federal prison after pleading guilty to two counts of commercial robbery and one count of brandishing a firearm in furtherance of a crime of violence.
“The man who was taken from his family by these vicious criminals should still be here today. His brother should never have been shot, and the other victims—including multiple children—should never have suffered the traumas inflicted on them by these men,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “For years, violent criminals have been using online marketplaces like OfferUp and LetGo to lure victims to armed robberies, resulting in multiple shootings and deaths. Most local police departments will allow people to use their properties as a safe place to meet when buying and selling online, which can help keep everyone safe during these transactions. You often don’t know who is on the other end of an online communication, or what their intentions might be, and exercising caution with these transactions could save your life. I want to thank the FBI, U.S. Marshals, IMPD and our federal prosecutors for their work to secure a measure of justice for the victims and ensure that these violent offenders will never again menace our community.”
“This lengthy sentence sends a clear message that any form of violence or exploitation on online marketplaces will not be tolerated. This string of crimes and the senseless death resulting from them are an unfortunate reminder of the real-world consequences that can result from crimes committed in the digital space,” said Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office. “The FBI and our law enforcement partners are committed to holding those who exploit online marketplaces for criminal activity accountable. No one using legitimate online services should ever have to fear for their safety.”
The Federal Bureau of Investigation, U.S. Marshals Service, and IMPD investigated this case. The sentence was imposed by Chief U.S. District Judge Tanya Walton Pratt.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Tiffany J. Preston and Carolyn A. Haney, who prosecuted this case, as well as the Victim Witness Coordinators and Paralegal Specialist who supported this trial.
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Hudson Man Sentenced to Federal Prison for 21 Months for Stealing COVID Relief Funds and Agreed to Pay Almost $500,000 for Violating the False Claims ActRead the Press Release
CONCORD – A Hudson man was sentenced today in federal court for stealing $342,650 in COVID-19 relief funds and attempting to steal an additional $150,000 U.S. Attorney Jane E. Young announces.
Matthew Dispensa, 58, was sentenced by U.S. District Court Judge Joseph N. Laplante to 21 months in prison and 2 years of supervised release. The defendant also agreed to resolve his False Claims Act liability for the stolen funds and to pay $492,650. This included $342,650 in court-ordered restitution and an additional $150,000 civil monetary penalty. On February 15, 2024, Dispensa pleaded guilty to three counts of bank fraud and one count of attempted wire fraud.
“The defendant lied to get hundreds of thousands of dollars in pandemic relief funds designed to mitigate the worst economic and public health crisis in decades,” said U.S. Attorney Jane E. Young. “This case underscores how this office will utilize both criminal and civil tools to hold accountable those who defraud pandemic relief programs.”
“The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates violations of Federal laws that impact the taxpayers and programs of the United States,” stated Special Agent-in-Charge Michael Carpenter. “To that end, the defendant has been prosecuted to the extent possible in an effort to hold him accountable and deter others from committing these violations.”
Dispensa fraudulently applied for multiple loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. For example, on May 5, 2020, he applied for a $90,400 PPP loan from Primary Bank for an entity called Gateway Hills LLC. Gateway Hills LLC had no apparent operations separate from Dispensa’s gym in Nashua, which operated under the name Gateway Hills Club. In the application, Dispensa provided the bank multiple false supporting documents, such as fraudulent annual and quarterly tax documents and a “Management Report” for the period ending December 31, 2020, seven months into the future. Dispensa also provided a “Payroll Summary” showing that he was paid $8,700 per month through Gateway Hills LLC. The defendant’s true tax returns showed no income from that entity.
In another application, Dispensa obtained a $146,650 PPP loan for the Gateway Hills Club entity. He claimed that annual payroll was over $542,000 in 2020, but his real tax filings showed that payroll was only approximately $118,000 that year.
Overall, Dispensa fraudulently obtained $342,650 in PPP loans and attempted to fraudulently obtain another $150,000. He misspent the pandemic relief funds on purchases such as gambling on DraftKings, Tesla stock worth over $83,000, and 10,000 shares in a real estate investment trust. He falsely represented to the Small Business Administration that he used the funds for payroll and other approved expenses.
The Treasury Inspector General for Tax Administration and U.S. Postal Inspection Service led the investigation. Assistant U.S. Attorney Alexander S. Chen prosecuted the criminal case, and Assistant U.S. Attorney Raphael Katz prosecuted the civil case.
During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Hawaiian Gardens Man Who Sold Fentanyl that Caused 18-Year-Old Victim’s Overdose Death Sentenced to 25 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Hawaiian Gardens man was sentenced today to 300 months in federal prison for selling purported black tar heroin that, in fact, was fentanyl to an 18-year-old victim who later ingested it and suffered a fatal overdose from the powerful synthetic opioid.
Gregory Hevener, 47, was sentenced by United States District Judge Mark C. Scarsi, who also ordered him to pay $45,100 in restitution. Hevener has been in federal custody since February 2022.
At the conclusion of a seven-day trial, a jury on June 24 found Hevener guilty of one count of distribution of fentanyl resulting in death and one count of possession with intent to distribute heroin.
“While no amount of prison time will restore what was lost to the victim’s family, we hope today’s sentence will bring some closure to the victim’s loved ones and protect our community from further harm,” said United States Attorney Martin Estrada. “Vindicating victims is core to my office’s work. We will continue to lead the nation in holding accountable those who traffic in powerful synthetic drugs, especially when they cause death or bodily harm.”
In November 2020, the victim responded to an ad placed by Hevener on the website OfferUp, an online marketplace. The listing advertised the sale of “BLACK TAR ROOFING MATERIALS!!” – coded language for black tar heroin – in Long Beach. OfferUp records revealed Hevener operated or had access to several accounts on the platform, in which he advertised and distributed drugs, including heroin and fentanyl.
Hevener and the victim met in Hawaiian Gardens and the victim purchased what he believed to be heroin from Hevener. Instead, Hevener sold what was a black, tar-like substance containing fentanyl and tramadol, a pain-relief medication. The victim then drove home and took the drugs, suffering a fatal overdose.
In July and October 2021, law enforcement searched trash cans outside of Hevener’s residence in Hawaiian Gardens and seized discarded plastic bags and burnt pieces of tin foil containing fentanyl and tramadol residue.
Another search in December 2021 resulted in the seizure of a plastic bag containing approximately 245 grams of black tar heroin, a digital scale, burnt tin foil, and a plastic bag containing approximately 1.2 grams of fentanyl.
The Drug Enforcement Administration and the El Monte Police Department investigated this case.
Assistant United States Attorneys Kellye Ng and Maria Jhai of the Violent and Organized Crime Section and Kyle W. Kahan of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
Gun Smuggler Sentenced to 84 Months in Prison for Smuggling Firearms to Mexico and International Money LaunderingRead the Press Release
TUCSON, Ariz. – Jesus Angel Vasquez Balganon, 33, of Mexico, was sentenced on November 21, 2024, by United States Chief District Judge Jennifer G. Zipps to 85 months in prison, followed by three years of supervised release. An order of forfeiture was entered in the amount of $97,229. Vasquez Balganon pleaded guilty on March 14, 2024, to Smuggling Goods from the United States and International Money Laundering.
Vasquez Balganon admitted that, between March of 2018 and January of 2021, and on April 6, 2021, he exported numerous firearms, some of which were recovered in Mexico. He also exported weapons components, ammunition, and accessories.
On April 6, 2021, Vasquez Balganon was arrested at the Port of Entry in Nogales, when he attempted to smuggle high-capacity magazines, concealed in his vehicle, to Mexico. Customs and Border Protection officers found a shopping bag containing nine 30-round AR-15 5.56 caliber high-capacity magazines. Vasquez Balganon stated he knew about the magazines and knew he was prohibited from taking them into Mexico. Vasquez Balganon expected to be paid $100.
Prior to his apprehension and arrest on April 6, 2021, Vasquez Balganon had exported or attempted to export 67 firearms, including a machinegun, an AK-103 style firearm, a Century Arms WASR rifle, and a FN SCAR 17 rifle, as well as 20,000 rounds of ammunition, ammunition links and 208 magazines. Some of the firearms were recovered in Mexico.
All the firearms, weapons components, ammunition, magazines, and accessories are designated on the United States Commerce Control List as prohibited by law for export from the United States into Mexico without a valid license. Neither Vasquez Balganon nor any other individual involved had a license or any other lawful authority to export these items into Mexico.
Vasquez Balganon also admitted that, from February of 2019 to March of 2021, he transferred over $20,000 from a U.S. bank to a bank in Mexico for the purpose of facilitating his illegal smuggling activities.
This case was 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Homeland Security Investigations conducted the investigation in this case. Assistant United States Attorney Raquel Arellano, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-02908-TUC-JGZ
RELEASE NUMBER: 2024-169_Vasquez Balganon# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Glenwood Man Indicted for Production, Receipt of Child Sexual Abuse MaterialRead the Press Release
MINNEAPOLIS – A Glenwood man has been indicted on multiple counts related to the production and receipt of child sexual abuse material, announced U.S. Attorney Andrew M. Luger.
According to court documents, between approximately January 21, 2020, until June 3, 2024, Patrick Wayne Baker, 51, surreptitiously recorded six minors for the purpose of creating sexually explicit images.
The indictment charges Baker with two counts of production of child pornography and three counts of receipt of child pornography. Baker made his initial appearance in U.S. District Court before Magistrate Judge Tony N. Leung on November 26, 2024.
This case is the result of an investigation conducted by the Pope County Sheriff’s Office, the Internet Crimes Against Children Task Force, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney William C. Mattessich is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of la
Georgia Woman Guilty of Money Laundering Conspiracy and Interstate Travel in Aid of RacketeeringRead the Press Release
NEW ORLEANS, LOUISIANA – Today, U.S. Attorney Duane A. Evansannounced that MICHELLE ALVARADO (“ALVARADO”), age 27, a resident of Georgia, pled guilty on November 27, 2024, before United States District Judge Jane Triche Milazzo to two counts of a superseding indictment. Count Two charged ALVARADO with conspiracy to launder monetary instruments, in violation of Title 18, United States Code, Sections 1956(a)(2)(A) and 1956(h). Count Three charged ALVARADO with interstate travel in aid of racketeering, in violation of Title 18, United States Code, Sections 1952(a)(3)(A) and (2).
According to court documents, ALVARADO, and other co-conspirators, traveled between New Orleans, and other states, in order to transport U.S. Currency and narcotics, on behalf of a Drug Trafficking Organization, from Louisiana to Mexico.
As to Count Two, ALVARADO faces up to twenty years imprisonment, a fine of up to $500,000.00, up to three years of supervised release, and a mandatory special assessment fee of $100. As to Count Three, ALVARADO faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, up to three years of supervised release, and a mandatory special assessment fee of $100.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office, and assisted by the Federal Bureau of Investigation, the United States Border Patrol, the Gretna Major Crimes Task Force, the Kenner Police Department, the Jefferson Parish Sheriff’s Office, the St. John’s Parish Sheriff’s Office, the Orleans Parish Sheriff’s Office, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Gen Digital, Formerly Symantec Corp., Pays $55.1M False Claims Act Judgment for Knowing Overcharges to General Services AdministrationRead the Press Release
WASHINGTON – Gen Digital Inc. (formerly known as Symantec Corp.), of Tempe, Arizona, paid $55.1 million to satisfy a judgment, concluding a decade of False Claims Act litigation. The judgment required the company to pay $16.1 million in damages and $36.8 million in civil penalties, plus post-judgment interest and costs.
The judgement was announced by U.S. Attorney Matthew M. Graves for the District of Columbia; Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division; GSA Deputy Inspector General Robert C. Erickson.
Following a four-week bench trial in February and March 2022, the trial court found Symantec liable for making knowing false claims to the United States when it mispresented its commercial sales practices during the negotiation and subsequent performance of a General Services Administration (GSA) contract. In particular, the court concluded that Symantec made false statements to GSA during contractual negotiations in 2006 and early-2007 and continued to falsely certify throughout the performance of the contract through Sept. 30, 2012, that its disclosures of its commercial sales practices were current, accurate and complete. The false disclosures induced GSA to accept and then continue to pay higher prices than it would have had it known of Symantec’s actual commercial pricing practices.
The court also found that Symantec continuously violated the Price Reduction Clause, a standard term in these types of Multiple Award Schedule contracts that requires the contractor throughout performance of the contract to maintain GSA’s price position in relation to an identified customer or category of customer agreed upon in contract negotiations. These violations deprived the United States of discounts to which it was entitled.
“The trial team secured a $55 million judgment that holds accountable a contractor who intentionally tried to overbill the government,” said U.S. Attorney Graves for the District of Columbia. “Because these schemes steal taxpayer dollars, the United States Attorney’s Office for the District of Columbia will be steadfast in its efforts to bring fraudsters to justice no matter the complexity of the matter, pursuing them through trial, if necessary, to secure a just outcome.”
“The department will hold accountable contractors that knowingly overcharge the United States to enrich themselves,” said Principal Deputy Assistant Attorney General Boynton, head of the Justice Department’s Civil Division. “The years spent litigating this case and taking it to trial demonstrate the department’s steadfast commitment to protecting taxpayer funds.”
“The United States deserves fair prices and accurate information from GSA contractors,” said GSA Deputy Inspector General Erickson. “This outcome is the result of hard work and dedication by a cross-functional team from the U.S. Department of Justice, GSA and GSA Office of Inspector General.”
Gen Digital’s payment ends a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene and take over responsibility for litigating these cases, as the United States did here. The qui tam case is captioned United States ex rel. Morsell v. Symantec Corp., Civ. A. No. 12-0800 (DDC), and was brought by Lori Morsell, who administered the contract at issue for Symantec. Her share of the recovery has not yet been determined.
This successful litigation was a coordinated effort between the U.S. Attorney’s Office for the District of Columbia and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from GSA’s Office of General Counsel and Office of Inspector General.
The matter was handled by Assistant U.S. Attorney Civil Chief Brian P. Hudak for the District of Columbia, and Senior Trial Counsel Daniel Schiffer and Trial Attorney F. Elias Boujaoude of the Justice Department’s Civil Division.
Gen Digital Pays $55.1M False Claims Act Judgment for Knowing Overcharges to General Services Administration After Government Prevails at TrialRead the Press Release
Gen Digital Inc. (formerly known as Symantec Corp.), located in Tempe, Arizona, paid $55.1 million to satisfy a judgment, concluding a decade of False Claims Act litigation. The judgment required the company to pay $16.1 million in damages and $36.8 million in civil penalties, plus post-judgment interest and costs.
“The department will hold accountable contractors that knowingly overcharge the United States to enrich themselves,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The years spent litigating this case and taking it to trial demonstrate the department’s steadfast commitment to protecting taxpayer funds.”
Following a four-week bench trial in February and March 2022, the trial court found Symantec liable for making knowing false claims to the United States when it mispresented its commercial sales practices during the negotiation and subsequent performance of a General Services Administration (GSA) contract. In particular, the court concluded that Symantec made false statements to GSA during contractual negotiations in 2006 and early-2007 and continued to falsely certify throughout the performance of the contract through Sept. 30, 2012, that its disclosures of its commercial sales practices were current, accurate and complete. The false disclosures induced GSA to accept and then continue to pay higher prices than it would have had it known of Symantec’s actual commercial pricing practices.
The court also found that Symantec continuously violated the Price Reduction Clause, a standard term in these types of Multiple Award Schedule contracts that requires the contractor throughout performance of the contract to maintain GSA’s price position in relation to an identified customer or category of customer agreed upon in contract negotiations. These violations deprived the United States of discounts to which it was entitled.
“The trial team secured a $55 million judgment that holds accountable a contractor who intentionally tried to overbill the government,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Because these schemes steal taxpayer dollars, the United States Attorney’s Office for the District of Columbia will be steadfast in its efforts to bring fraudsters to justice no matter the complexity of the matter, pursuing them through trial, if necessary, to secure a just outcome.”
“The United States deserves fair prices and accurate information from GSA contractors,” said GSA Deputy Inspector General Robert C. Erickson. “This outcome is the result of hard work and dedication by a cross-functional team from the U.S. Department of Justice, GSA and GSA Office of Inspector General.”
Gen Digital’s payment ends a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene and take over responsibility for litigating these cases, as the United States did here. The qui tam case is captioned United States ex rel. Morsell v. Symantec Corp., Civ. A. No. 12-0800 (DDC), and was brought by Lori Morsell, who administered the contract at issue for Symantec. Her share of the recovery has not yet been determined.
This successful litigation was a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Columbia, with assistance from GSA’s Office of General Counsel and Office of Inspector General.
Senior Trial Counsel Daniel Schiffer and Trial Attorney F. Elias Boujaoude of the Justice Department’s Civil Division and Civil Chief Brian P. Hudak for the District of Columbia handled the matter.
Former Fairbanks bookkeeper charged with bank fraud, money launderingRead the Press Release
FAIRBANKS, Alaska – A federal grand jury in Alaska returned an indictment charging a Fairbanks woman with bank fraud and money laundering related to her alleged theft of funds from a business she formerly worked for as a bookkeeper.
According to court documents, beginning in 2015, Angelic Henderson, 68, was hired as the bookkeeper for a business in Fairbanks, and received regular payroll checks and payments for her employment. Sometime in 2016 and 2017, a co-conspirator was hired as a technician for the same business and received regular payroll checks and payments for their employment.
The indictment alleges that in 2020, Henderson was the sole owner of Consulting Medical Services LLC (CMS). During that time, Henderson began providing independent contractor services to the victim business through CMS. Those services included managing billing, customers, insurance, bookkeeping and suppliers. In July 2020, Henderson also established Angels Nesting Business Support Services LLC (ANBSS). The co-conspirator was the sole owner of JL Medical Support Services LLC (JLMSS).
The victim business, the co-conspirators business and both of Henderson’s companies had bank accounts at the same bank.
According to the indictment, from August 2019 to August 2023, Henderson and the co-conspirator allegedly executed a scheme where she used her position to steal from the victim business and funnel money to her business accounts and to the co-conspirator.
Henderson allegedly created daily and weekly financial documents that underrepresented the businesses’ income to hide the loss from the owner. She also allegedly created “transfer request” documents requesting that the bank move funds from the victim business account into her and the co-conspirators accounts. These requests allegedly contained false representations, specifically, duplicate payments for her services and reimbursements for expenses that were never incurred of already paid with the victim business funds.
The indictment alleges that once the funds were transferred to one of Henderson’s accounts, she transferred the funds via check to other accounts that she owned or controlled, breaking the transfers up in the same day or over consecutive days into multiple small transfers. She would also transfer money to her co-conspirator via checks. The co-conspirator would deposit the funds into their personal accounts and then buy cryptocurrency with the deposited funds.
In total, Henderson caused roughly 368 funds transfers over roughly four years, resulting in a loss of over $1.8 million for the victim business.
Henderson was arrested on Nov. 29 and is charged with one count of conspiracy to commit bank fraud, seven counts of bank fraud, one count of conspiracy to commit money laundering and 10 counts of money laundering. The defendant is scheduled for her initial court appearance tomorrow before U.S. Magistrate Judge Scott A. Oravec of the U.S. District Court for the District of Alaska. If convicted, she faces up to 30 years in prison and a $1 million fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker for the District of Alaska and Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office made the announcement.
The FBI Anchorage Field Office, with assistance from the Fairbanks Police Department, is investigating the case.
Assistant U.S. Attorney Carly Vosacek is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Final co-conspirator ordered to prison for dark web pill manufacturing and distribution ringRead the Press Release
HOUSTON – A 37-year-old Houston man has been sentenced for his role in operating an illicit manufacturing and distribution ring of pills containing meth, announced U.S. Attorney Alamdar S. Hamdani.
Marco Juarez pleaded guilty June 16, 2023.
U.S. District Judge Gray Miller has now imposed a 120-month-term of imprisonment to be followed by five years of supervised release.
Alexander Fernandez, 33, Christopher Houser, 36, and Alexis Sandoval, 26, all of Houston, also pleaded guilty and were previously sentenced. The leader – Fernandez – received 20 years, while Houser and Sandoval were ordered to serve respective terms of 36 and 120 months. In handing down the sentences, Judge Miller noted the serious nature of distributing pills to customers who were unaware that what they believed to be Adderall in fact contained meth.
“These conspirators manufactured and distributed large quantities of fake Adderall pills that actually contained meth in order to make money at the expense of the health and safety of others,” said Hamdani. “The public must be aware that while counterfeit pills may look like legitimate prescription drugs, they may actually contain a deadly controlled substance. Instead of ingesting quality-controlled products of a heavily regulated prescription drug industry, users of counterfeit drugs may be putting powerful crystal meth into their bodies, which leads to increased addiction rates and health risks.”
“Trafficking counterfeit prescription medications laced with deadly and highly addictive narcotics is extremely dangerous and has been a major contributor to the ongoing drug epidemic that is destroying communities across the country,” said Homeland Security Investigations (HSI) Houston acting Special Agent in Charge Robert Kurtz. “Leveraging HSI’s unique cross-border authorities and extensive expertise in cyber and narcotics investigations, we were able to pierce the veil of anonymity that these drug traffickers falsely believed they possessed by operating on the dark web to expose their conspiracy and hold them accountable for their actions.”
In 2020, law enforcement discovered Fernandez was ordering pill press machines, pill stamps, dyes and bulking agents frequently used in illicit pill manufacturing.
The investigation revealed the ring was manufacturing the pills within local residences - first on Yale Street in the Houston Heights neighborhood and later at two separate locations in Fulshear.
Fernandez was behind the logistics of the pill manufacturing ring while Juarez supplied the organization with the meth used as the active ingredients. Houser produced the pills using the pill press machines. Sandoval was responsible for the packaging and mailing of pills from orders placed on the dark web.
A search warrant executed in October 2020 at the Fulshear manufacturing residence revealed approximately seven kilograms of “ice” meth and four kilograms of meth in the form of Adderall pills and powder.
Additionally, almost five kilograms of Adderall pills were found at a second Fulshear residence where they packaged the pills for mailing out to dark web buyers.
The pill press operation was also responsible for manufacturing and distributing “Alprazolam” pills containing Etizolam, a central nervous system depressant with sedative-hypnotic and muscle relaxant effects.
Juarez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration. Assistant U.S. Attorney Karen M. Lansden prosecuted the case.
El Paso Medical Equipment Supplier Sentenced to Federal Prison for $1.7 Million Healthcare Fraud SchemeRead the Press Release
EL PASO, Texas – An El Paso woman was sentenced in a federal court in El Paso to 60 months in prison for conspiracy to commit healthcare fraud.
According to court documents, Edelmira Marquez, 59, engaged in fraudulent billing practices as the owner of Marquez Medical Supply, a durable medical equipment company located in El Paso. Marquez’s scheme involved substituting and providing lesser valued items to Medicaid and Medicare beneficiaries/patients, then billing Medicaid and Medicare for the greater valued items. The items were primarily continence supplies including adult diapers. wipes and bed liners.
Marquez was summoned to court Dec. 21, 2023. She made her initial appearance Jan. 19, 2024, and was released on bond. She pleaded guilty to the single count on March 7. Upon sentencing, Marquez was remanded into federal custody. In addition to her imprisonment, Marquez was fined $20,000 and ordered to pay $1,739,608.59 in restitution to Medicaid.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The FBI and the Texas Attorney General Medicaid Fraud Control Unit investigated the case.
Assistant U.S. Attorney Debra Kanof prosecuted the case.
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California Man Is Sentenced to Prison for $2 Million Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Gustavo Guzman, 61, previously of Fullerton, California, was sentenced today to 70 months in prison followed by two years of supervised release and was ordered to pay more than $1.9 million in restitution for orchestrating an investment fraud scheme that defrauded victims of nearly $2 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In November 2022, Guzman was extradited to the United States from Australia to face federal charges in the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and North Carolina Secretary of State Elaine F. Marshall join U.S. Attorney King in making the announcement.
According to filed court documents and court proceedings, from April 2010 to August 2015, Guzman, through various entities he controlled, including G2 Asset Management and East Egg Private Equity, executed a scheme to defraud approximately 10 investors of at least $2 million, by falsely representing that he would use the investors’ money to trade in options and other similar investments. Instead of investing the funds as promised, Guzman stole a substantial portion of the investors’ money and used it to fund his personal lifestyle, including to make large credit card payments and cash withdrawals, and to pay for personal expenditures.
Court records show that Guzman suffered massive trading losses with the money that he did invest and used some of the victim’s money to make Ponzi-style payments to investors. To conceal the trading losses and the fraudulent scheme, and to prevent his victims from redeeming their investments and complaining to authorities, Guzman lied to his victims about the status of their investments, and provided them with fake documents, including sham IRS forms and fraudulent account statements. When Guzman learned that the Government was preparing to charge him, he fled to Australia.
According to court documents, Guzman perpetrated the investment scheme by soliciting and victimizing people he knew, including close friends. One victim investor described Guzman as “a trusted family friend,” and another as someone they had known for “over 15 years.” As court records reflect, several of Guzman’s victims suffered substantial financial hardship and are under extreme emotional distress as a result of Guzman’s deception and scheme.
In July 2023, Guzman pleaded guilty to securities fraud. In announcing today’s sentence, U.S. District Judge Robert J. Conrad, Jr. highlighted, among other things, the nature and circumstances of Guzman’s fraud, characterizing it as “reprehensible conduct that occurred over a long period of time.”
Guzman is currently in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
The investigation was conducted by the FBI in Charlotte and the Securities Division of the North Carolina Department of the Secretary of State.
The U.S. Securities and Exchange Commission conducted a parallel investigation that resulted in the entry of a default judgment against Guzman in Civil Action No. 3:17-cv-00276 (WDNC).
The Department of Justice also appreciates the significant assistance provided by the Department’s Office of International Affairs, the Government of Australia, including the Attorney General’s Department of Australia and the Australian Federal Police, in securing the extradition of Guzman and obtaining evidence from Australian authorities.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Boston Man Charged with Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man has been charged in federal court in Boston with illegally possessing a firearm and ammunition.
Kyvon Ross, 25, was charged by criminal complaint with one count of being a felon in possession of a firearm and ammunition. Ross will appear in federal court in Boston on Dec. 4, 2024.
According to the charging documents, on Oct. 3, 2024, Ross was approached by law enforcement after driving a moped at a high speed and without a rear license plate. It is alleged that Ross accelerated at a high rate of speed directly at one of the officers before losing control of the moped and falling to the ground. It is alleged that Ross violently resisted arrest and was found in possession of a loaded Glock handgun with an obliterated serial number on his person.
Ross is prohibited from possessing firearms and ammunition due to multiple prior felony convictions, including a 2021 federal conviction for being a felon in possession of a firearm.
The charge of possessing ammunition after being convicted of a felony provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of a $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 Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Boston Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives provided valuable assistance with the investigation. Assistant U.S. Attorney William F. Abely, Chief of the Criminal Division, 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.
American Health Imaging, Inc. and Scott Arant to Pay over $5 Million to Resolve Allegations of Healthcare KickbacksRead the Press Release
ATLANTA – American Health Imaging, Inc. (“AHI”) and its former founder and CEO, Scott Arant, will pay the United States and the State of Georgia $5,250,000 to resolve allegations that they violated the False Claims Act by: (1) providing physicians with meals, tickets to sporting events, and other gifts to induce those physicians to refer diagnostic scans to AHI’s independent diagnostic testing facilities; and (2) entering into above fair market value personal services agreements with referring physicians to induce those physicians to refer scans to AHI.
“The use of inducements to obtain referrals from medical professionals jeopardizes the integrity of our healthcare programs,” said U.S. Attorney Ryan K. Buchanan. “This settlement demonstrates our Office’s commitment to hold accountable providers who ignore Medicare and Medicaid’s strict prohibition against using kickbacks for personal greed.”
“Paying or accepting kickbacks for referrals undermines the integrity of the Medicare program,” said Special Agent in Charge Kelly J. Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, in collaboration with our law enforcement partners, remains committed to safeguarding federal health care programs.”
“We won’t allow for any provider to take advantage of a system meant to care for our most vulnerable Georgians,” said Georgia Attorney General Chris Carr. “We will continue to protect the interests of Georgia patients and taxpayers by putting a stop to Medicaid fraud and abuse in our state.”
The government alleges that, between 2011 and 2019, AHI relied on a variety of inducements – sporting events, fishing trips, happy hours, sponsorships of “open houses” at physician offices, and gifts of alcohol, gas cards, and free scans – to generate referrals for diagnostic scans. Many of AHI’s marketing events involved no discernible educational purpose. Examples include tickets to the SEC football championship game, tickets to concerts, monthly dinners with referral sources, and outings to nail salons. The government also alleges that AHI entered into personal services agreements with referring physicians that were above fair market value. Under these agreements, physicians were compensated to interpret the scans that they referred to AHI.
The settlement resolves allegations filed by Tanya Benjamin, a former AHI employee, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States and State of Georgia ex rel. Benjamin v. Arant et al., No 1:15-cv-3242-RWS (N.D. Ga.). Ms. Benjamin will receive a share of the settlement.
The U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, and the Georgia State Attorney General’s Medicaid Fraud Division investigated this case.
The civil settlement was reached by Assistant U.S. Attorney Austin Hall and Georgia State Assistant Attorneys General Sara Vann and Mary Bryan.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
AHI Settlement Agreement:
ahi_settlement_agreement.pdfActivity in the U.S. Attorney's OfficeRead the Press Release
Injury or Depredation to United States Property
Sherette Joseph Lujan, 48, of Riverton, Wyoming, was sentenced to 12 months’ imprisonment with 3 years of supervised release for injury or depredation to United States property. The court also ordered him to pay $2,304 in restitution. According to court documents, on June 15, the Riverton Police Department was dispatched to the Riverton Post Office for a report of a man breaking windows in the building with a metal object. Officers detained Lujan who claimed a group of “gangsters” were following him, so he attempted to barricade himself inside the Post Office and break the windows to scare them off. Lujan also admitted that he had done methamphetamine earlier in the night. Lujan was indicted on July 10, pleaded guilty on Sept. 3, and U.S. District Court Judge Alan B. Johnson sentenced him on Nov. 22, in Cheyenne. The U.S. Postal Service and Riverton Police Department investigated the crime. Assistant U.S. Attorney Mackenzie Morrison prosecuted the case. Case No. 24-CR-00097
Child Pornography
Robert Lynn Harris, 56, of Casper, Wyoming, was sentenced to 120 months in prison, with 10 years of supervised release to follow, for possession and access with intent to view child pornography, subsequent offense. The court also ordered him to pay $2,000 in restitution. According to court documents, on May 13, Wyoming Internet Crimes Against Children (ICAC) agents were contacted by U.S. Probation Agents related to a supervision confiscation of evidence resulting from a search conducted on Harris, a convicted sex offender with a lifetime term of supervised release. The agent had located child pornography on a micro-SD card belonging to the defendant. Harris was indicted on July 18, pleaded guilty on Sept. 11, and was sentenced on Nov. 27, by U.S. District Court Judge Alan B. Johnson. This crime was investigated by the Wyoming Division of Criminal Investigation (DCI) ICAC Task Force. The case was prosecuted by Z. Seth Griswold. Case No. 24-CR-00101
Drug Trafficking
Kathleen Lindsay, 36, of Fort Washakie, Wyoming, was sentenced to 96 months’ imprisonment with three years of supervised release to follow, for conspiracy to distribute fentanyl and methamphetamine. According to court documents, on March 10, the Wyoming Highway Patrol conducted a traffic stop to execute a search warrant. Troopers seized 43 grams of fentanyl and 140 grams of methamphetamine, as well as drug paraphernalia. Lindsay was taken to the Natrona County Detention Center where law enforcement located a bag of 90 fentanyl pills inside of her body. She was indicted on May 16, pleaded guilty on Sept. 4, and U.S. District Court Judge Kelly H Rankin imposed the sentence on Nov. 25, in Cheyenne. DCI investigated the crime and Assistant U.S. Attorney Mackenzie Morrison prosecuted the case. Case No. 24-00066
Kenneth Waters, 34, of Cheyenne, Wyoming, was sentenced to 87 months’ imprisonment, with four years of supervised release to follow, for possession with intent to distribute fentanyl. According to court documents, between May 15, and June 20, law enforcement conducted several controlled purchases from Waters, totaling 15.06 grams. He was arrested on June 20 and an additional 22.27 grams of fentanyl were in his residence. Walters was indicted on July 31, pleaded guilty on Sept. 13, and U.S. District Court Judge Kelly H. Rankin imposed the sentence on Nov. 26, in Cheyenne. The Drug Enforcement Administration investigated the crime and Assistant U.S. Attorney Timothy J. Forwood prosecuted the case. Case No. 24-00129
Kevin Washakie, 34, of Fort Washakie, Wyoming, was sentenced to time served from May 29 to Dec. 2, with three years of supervised release to follow, for distribution of methamphetamine. According to court documents, in September 2023, law enforcement conducted a controlled purchase of methamphetamine from Washakie. He was indicted on May 16, pleaded guilty on July 31, and Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Nov. 27, in Casper. The Wyoming Division of Criminal Investigation investigated the crime and Assistant U.S. Attorney Timothy W. Gist prosecuted the case. Case No. 24-00083
Firearm Offenses
Brian Scott Birden, 54, of Sheridan, Wyoming, was sentenced to 33 months’ imprisonment, with three years of supervised release to follow, for being a felon in possession of a firearm. According to court documents, law enforcement was called to a house in Sheridan for a man firing multiple rounds inside the victim’s house while she was at work. The victim received a call about the disturbance and was able to make it home and take control of her gun before law enforcement arrived. They discovered 8 bullet holes and 16 spent shell casings. Birden is a previously convicted felon and is prohibited from possessing a firearm. He was indicted July 18, pleaded guilty on Sept. 4 and U.S. District Court Judge Kelly H. Rankin imposed the sentence on Nov. 26, in Cheyenne. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the crime. Assistant U.S. Attorney Paige Hammer prosecuted the case. Case No. 24-CR-00116
29 November 2024
United States Obtains Consent Decree with Kings County Man for Alleged Mail and Wire FraudRead the Press Release
FRESNO, Calif. — The United States has entered a consent decree with Dale Lake of Hanford to resolve a lawsuit brought by the United States pursuant to the Anti-Fraud Injunction Statute, U.S. Attorney Phillip A. Talbert announced today.
The lawsuit, filed in the U.S. District Court for the Eastern District of California, alleged that Lake was a “money mule” who was facilitating a mail and wire fraud scheme that primarily victimized senior citizens. According to the complaint, Lake received funds or gift cards obtained via fraud, then transmitted those funds to accomplices in Jamaica. Other participants in the fraud scheme contacted potential victims; falsely claimed that those victims had won a lottery, sweepstakes, or prize; and induced victims to transmit money to Lake, supposedly in order to receive the falsely promised winnings.
The consent decree announced today, approved by U.S. District Judge Jennifer L. Thurston, permanently prohibits Lake from assisting, facilitating, or participating in any prize promotion fraud or any money transmitting business. The decree also authorizes the U.S. Postal Inspection Service (USPIS) to monitor Lake’s incoming mail for the purpose of ensuring compliance with the decree.
“Money mules facilitate fraud against vulnerable populations,” said U.S. Attorney Talbert. “The U.S. Attorney’s Office will hold accountable anyone who engages in schemes to defraud the public. Our office is committed to educating the public about how fraudsters use money mules to receive and transfer money to third parties.”
“Postal Inspectors will continue to use all the tools of law enforcement, including civil remedies, to protect the public from fraud schemes employing money mules,” said Inspector in Charge Stephen M. Sherwood of the USPIS San Francisco Division.
This case is the product of an investigation by the U.S. Attorney’s Office and the USPIS. It is part of a larger effort by the Justice Department, USPIS, FBI, and other federal law enforcement agencies to identify, disrupt, and prosecute networks of individuals who transmit funds from fraud victims to international fraudsters. Such fraudsters rely on money mules to facilitate a range of fraud schemes, including those that predominantly impact older Americans, such as lottery fraud, romance scams, and grandparent scams, as well as those that target businesses or government pandemic funds. Assistant U.S. Attorney Robert A. Fuentes handled this case for the United States.
United States Attorney Advises Virgin Islands Community That Cockfighting Is Prohibited by Federal LawRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith advises residents of the Virgin Islands that the Agricultural Improvement Act (P.L. 115-334), which has been in effect since December 20, 2019, prohibits animal fighting in the United States, including its Territories.
U.S. Attorney Smith reminds cockfighting promoters that animal fighting is a felony that carries a penalty of up to five years in prison. Since 2002, federal law has prohibited any shipment of fighting birds to the Territory from the mainland United States. Smith further notes that “federal law prohibits a wide range of activities associated with animal fighting ventures, including knowingly sponsoring, exhibiting, or attending these events.” An animal fighting venture is one that involves a fight conducted or to be conducted between at least two animals for purposes of sport, wagering, or entertainment. The law further prohibits the selling, buying, training, transporting, shipping, delivering or receiving of animals for fighting, and the trafficking in knives or gaffs used on birds.
Despite federal law prohibiting animal fighting, law enforcement agencies in our community continue to receive recent reports that cockfighting matches are ongoing. U.S. Attorney Smith noted that animal fighting prosecutions in the United States often have a close correlation to other criminal activities, including violent crime, firearms offenses and mail fraud. “Cockfighting is illegal and potentially dangerous. We must therefore continue our commitment to keeping our community safe”, U.S. Attorney Smith said.
To report information about cockfighting or other animal fighting crimes, please contact the Federal Bureau of Investigations at (787) 754-6000, or the United Stated Department of Agriculture, Office of Inspector General, hotline at (800) 424-9121 or at https://www.usda.gov/oig/hotline.htm.
Stockton Man Pleads Guilty to Fentanyl and Methamphetamine Pill Manufacturing and DistributionRead the Press Release
SACRAMENTO, Calif. — Jamar Deontae Barnes, 42, of Stockton, pleaded guilty Tuesday to conspiracy to manufacture and distribute pills laced with fentanyl, methamphetamine, and other drugs, and possession with intent to distribute methamphetamine-laced pills, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2015 and May 2019, Barnes conspired with his twin brother, Jamaine Dontae Barnes, and others, to make and sell thousands of drug-laced pills. Barnes and his co-conspirators made the pills using pill presses, which are machines that compress powders into pills of various shapes and sizes. They made pills that appeared to be legitimate prescription pills but in fact, contained fentanyl, furanyl fentanyl, heroin, and other synthetic opioids. They also made pills that appeared to be traditional Ecstasy pills but in fact contained methamphetamine. On May 16, 2019, law enforcement searched Jamar Barnes’ Stockton residence and seized a pill press machine as well as powders and pills containing methamphetamine and furanyl fentanyl.
This case is the product of an investigation by the Drug Enforcement Administration, with assistance from Homeland Security Investigations, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California Highway Patrol, the San Joaquin METRO Narcotics Task Force, the Tri-County Drug Enforcement Team (TRIDENT) Task Force, the Stockton Police Department, the Sacramento County High Intensity Drug Trafficking Area (HIDTA) Task Force, and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorneys David W. Spencer and Emily G. Sauvageau are prosecuting the case.
Nine other defendants have pleaded guilty:
- Jamaine Dontae Barnes pleaded guilty and is scheduled to be sentenced on March 24, 2025.
- Kavio Daeshaun Lee Wiley pleaded guilty and was sentence to 15 years in prison.
- Vincent Isaiah Patterson pleaded guilty and is scheduled to be sentenced on Jan. 28, 2025.
- Johnesha Denae Thompson pleaded guilty and is scheduled to be sentenced on March 24, 2025.
- Kadrena Latrice Watts pleaded guilty and is scheduled to be sentenced on March 17, 2025.
- Jeremy Jerome Barnett pleaded guilty and was sentenced to 57 months in prison.
- Chevele Bernard Richardson pleaded guilty and was sentenced to 79 months in prison.
- Tashawn Terrell Dickerson pleaded guilty and was sentenced to 46 months in prison.
- Lamont Montez Thibodeaux pleaded guilty and is scheduled to be sentenced on March 24, 2025.
Jamar Barnes is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on March 3, 2025. Barnes faces a maximum statutory penalty of life in prison and a mandatory minimum of 15 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Port St. Lucie Man Convicted at Trial for Participating in a Conspiracy to Export AR-15 Firearms to Costa RicaRead the Press Release
MIAMI – On Nov. 20, a federal jury convicted Gabriel Donato-Mendez, 48, of Port St. Lucie, Fla., of conspiracy to export United States defense articles and of attempted smuggling of defense articles.
Over a six-month span in 2018 and 2019, Donato-Mendez bought over 150 AR-15 “kits” which consisted of the pieces required to make AR-15 firearms after minor drilling and assembly. On March 4, 2019, Donato-Mendez transported at least 84 AR-15 kits from a store in Daytona, Fla., to a freight forwarder where the kits were destined to be exported to Costa Rica. In 2019, AR-15s and their parts were on the United States Munitions List as “defense articles” and required a license from the Department of State’s Directorate of Defense Trade Controls to be exported. Neither Donato-Mendez nor any of his known conspirators possessed a license to export AR-15 kits from the United States.
Donato-Mendez is scheduled to be sentenced on Feb. 7, 2025 before Chief U.S. District Judge Cecilia M. Altonaga. Donato-Mendez faces up to ten years on the attempted smuggling count and five years on the conspiracy count. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, made the announcement.
HSI Miami, HSI Fort Pierce, and ATF Fort Pierce investigated the case. The Costa Rican Organismo de Investigación Judicial (National Judicial Police) and U.S. Department of State Directorate of Defense Trade Controls (DDTC) provided invaluable assistance.
Assistant U.S. Attorneys Daniel Rosenfeld and Stefan Diaz Espinosa are prosecuting the case. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20075.
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New Orleans Man Guilty of Cocaine, Heroin, Fentanyl Distribution ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – Today, U.S. Attorney Duane A. Evans announced that WILLIAM LANG (“LANG”), age 46, a resident of New Orleans, pled guilty on November 27, 2024, before United States District Judge Jane Triche Milazzo to conspiracy to distribute, and possess with intent to distribute, five kilograms or more of cocaine, one kilogram or more of heroin, and four hundred grams or more of fentanyl, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A).
According to court documents, LANG, and other co-conspirators, distributed and possessed with intent to distribute, multi-kilogram quantities of cocaine, fentanyl, and heroin within the Eastern District of Louisiana.
LANG faces a minimum term of imprisonment of ten years, up to life imprisonment, a fine of up to $10,000,000.00, at least five years of supervised release, and a mandatory special assessment fee of $100.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office, and assisted by the Federal Bureau of Investigation, the United States Border Patrol, the Gretna Major Crimes Task Force, the Kenner Police Department, the Jefferson Parish Sheriff’s Office, the St. John’s Parish Sheriff’s Office, the Orleans Parish Sheriff’s Office, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Maryland Man Indicted on Charges of Enticing a Minor to Engage in Unlawful Sexual Activity and Produce Child PornographyRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Juan Carlos Puente, 46, of Clinton, Maryland, charging him with multiple child exploitation offenses.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge William J. DelBagno, Federal Bureau of Investigation (FBI), Baltimore Field Office.
According to the seven-count indictment, between approximately October 1, 2021, and April 22, 2022, Puente enticed a minor victim to engage in unlawful sexual activity and produce child pornography. Additionally, Puente traveled outside of the United States to engage in illicit sexual conduct with the minor victim. On January 9, 2024, Puente also possessed sexually explicit images involving a prepubescent minor and a minor victim who was under 12 years of age.
Puente was charged with two counts of production of child pornography, one count of attempted production of child pornography, one count of travel with intent to engage in illicit sexual conduct, one count of engaging in illicit sexual conduct in a foreign place, one count of coercion and enticement of a minor, and one count of possession of child pornography.
If convicted, Puente faces a mandatory minimum sentence of 15 years in federal prison and up to 90 years in federal prison for the production and attempted production of child pornography counts. Additional penalties could include a mandatory minimum of 10 years in federal prison and up to life in federal prison for coercion and enticement of a child; a maximum of 30 years in federal prison for travel with intent to engage in illicit sexual conduct and engaging in illicit sexual conduct in a foreign place; and a maximum of 20 years in federal prison for possession of child pornography involving a prepubescent minor and minor who had not attained 12 years of age.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and/or until proven guilty at a later criminal proceeding.
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 U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
If you suspect that you have information that could aid law enforcement’s investigation, you are encouraged to call the FBI Baltimore Field Office at (410) 265-8080.
U.S. Attorney Barron commended the FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Megan S. McKoy and Trial Attorney Jessica L. Urban, Criminal Division’s Child Exploitation and Obscenity Section, who are prosecuting the case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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27 November 2024
West Tennessee Tax Preparers Indicted for Schemes to Defraud Government of over $65 Million in COVID-19 ReliefRead the Press Release
Memphis, TN – A federal grand jury in the Western District of Tennessee recently returned a 53-count indictment charging two North Mississippi women with multiple schemes defrauding the government of COVID-19 relief funds. Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, announced the indictment today.
Renata Walton, 44, and Nicole Jones, also known as Nicole Dickerson, 36, both of Olive Branch, Mississippi, are alleged to have falsified numbers provided to the IRS on personal and business tax returns from 2020 through 2024. Walton owns and operates R&B Tax Express in Moscow, Tennessee, where she and Jones prepared tax returns. On behalf of their clients, the two women would file for COVID-19 related tax credits (namely the Employee Retention Credit and the Sick and Family Leave Credit) to which their clients were not entitled. When the fraudulent tax returns were processed by the IRS, the clients received six-figure tax refunds. After the funds were obtained, the clients paid Walton and Jones large fees that the two women laundered through local banks. For tax period 2022, Walton and Jones reportedly failed to file tax returns themselves.
Walton is separately charged with submitting fraudulent Paycheck Protection Program and Economic Injury Disaster Loan applications to the Small Business Administration.
In total, Walton and Jones filed fraudulent claims seeking over $65 million dollars.
The indictment alleges one count of conspiracy to commit wire fraud, 30 counts of wire fraud, 12 counts of money laundering, seven counts of preparing false tax returns, two counts of failing to file taxes, and one count of obstruction of justice.
If convicted of these offenses, Walton and Jones face a maximum penalty of 20 years for each count of wire fraud and conspiracy to commit wire fraud, 10 years for each count of money laundering, 3 years for each count of preparing false tax returns, and 1 year for each count of failing to file a tax return. Walton faces 20 years for the sole obstruction of justice count. Both women have been released on a $100,000 bond.
The Internal Revenue Service – Criminal Investigation is investigating the case. Assistant United States Attorney William Carey Bateman III for the Western District of Tennessee is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
United States Attorney’s Office Honors Native American Heritage MonthRead the Press Release
Spokane, Washington - Each year in November, communities across the United States celebrate National Native American Heritage Month. The Department of Justice also recognizes the tremendous contributions of Native American communities to the rich heritage and culture of Eastern Washington.
The 2024 national theme for Native American Heritage Month is Affirming Native Voices: Visibility, Leadership and Service. Consistent with this theme, the U.S. Attorney’s Office took part in several community events and presentations throughout November, including in Yakima, Spokane, and at the Gonzaga School of Law.
On Friday, November 8, 2024, United States Attorney Vanessa Waldref, Executive Assistant United States Attorney Joseph Derrig, Assistant United States Attorney Benjamin Seal, and Assistant United States Attorney Bree Black Horse attended the Yakama Nation Veteran’s Powwow in White Swan, Washington. At the Powwow, U.S. Attorney Waldref and AUSA Black Horse recognized Missing and Murdered (MMIP) survivors, families, and their advocates in a red dress special and honor song. U.S. Attorney Waldref’s efforts to improve public safety in Indian country and the leadership she has demonstrated in improving the federal response to MMIP, including bringing the Northwest MMIP AUSA position to the Eastern District of Washington, also were recognized at the event.
On Friday, November 12, 2024, AUSA Black Horse presented at the Yakima Domestic Violence Coalition Meeting, where AUSA Black Horse discussed the importance of applying a trauma-informed approach to domestic violence and child abuse involving American Indian and Alaska Native survivors. AUSA Black Horse also provided a training regarding culturally sensitive practices for helping victims of violent crimes in Indian country.
On Thursday, November 14, 2024, AUSA Bree Black Horse, alongside the Yakama Nation, the Bureau of Indian Affairs (BIA), the Washington Attorney General’s Office, and the Washington State Patrol took part in a community presentation at the Yakama Nation Winter Lodge. AUSA Black Horse, along with several of our state, federal, local, and Tribal partners shared resources available to families of victims to help them achieve justice for their loved ones.
On November 18, 2024, AUSA Black Horse shared experiences from her legal career and the reasons she was led to serve Tribal communities through her work at the Justice Department with the Spokane Sector of the U.S. Border Patrol.
Later that same evening, U.S. Attorney Waldref and AUSA Black Horse led a panel discussion at the Gonzaga University School of Law hosted by the Center for Civil and Human Rights. Together, U.S. Attorney Waldref and AUSA Black Horse discussed the Department of Justice’s efforts to address the MMIP crisis and celebrated the advocacy of indigenous women in bringing critical resources to support Tribal justice and address the root causes of the MMIP crisis.
On November 21, 2024, The Justice Management Division (JMD) Equal Employment Opportunity (EEO) Staff and DOJ Office of Tribal Justice hosted a nation-wide virtual program in observance of Native American Heritage Month. AUSA Black Horse presented on her role as an AUSA dedicated to prosecuting MMIP cases in the northwestern United States.
“My office is committing to seeking justice for all who call Eastern Washington home,” stated U.S. Attorney Waldref. “The United States has a special trust relationship with each of the Tribes in Eastern Washington. We will continue to engage in listening sessions and engage in community outreach to ensure victims’ voices are heard and their cries for help are answered.”
More information on Native American Heritage Month is available at https://www.nativeamericanheritagemonth.gov/ .
Additional information regarding the Washington State Missing and Murdered Indigenous Women and People Task Force is available at https://www.atg.wa.gov/washington-state-missing-and-murdered-indigenous-women-and-people-task-force .
U.S. Attorney, Law Enforcement Officials Urge Residents to Help Prevent Gun Thefts from Vehicles During Holiday SeasonRead the Press Release
SAN ANTONIO – As the holidays approach, the U.S. Attorney’s Office for the Western District of Texas wants to remind residents to properly secure their firearms when they are not in use. It is particularly important that gun owners do not leave any firearm insufficiently secured inside a vehicle when visiting shopping centers and malls. A locked car is not a secured car.
Nearly 2,300 firearms have been stolen from vehicles in San Antonio this year. Retail parking lots frequently serve as hot spots for burglaries, and thieves are capable of breaking into a vehicle, stealing a gun, and fleeing, all within 15 seconds or less. Furthermore, statistics show that car burglars target trucks and vehicles that display stickers, insignia, and license plates indicating military or law enforcement affiliation, as well as firearm ownership. Firearms stolen from vehicles are often used to commit violent crimes in San Antonio.
“While you are shopping for holiday gifts to give your friends and loved ones, it takes no time at all for a thief to steal an improperly secured gun from your locked car,” said U.S. Attorney Jaime Esparza. “That same gun, which was lawfully yours, is likely to be sold for profit and used in a violent crime—even killing a law enforcement officer or an innocent child. Do not make it these despicable acts any easier for criminals. Story your firearms properly and avoid becoming a victim of gun theft.”
“Remember, keeping your firearms secure is key to preventing theft and keeping our community safe,” said Special Agent in Charge Michael Weddel for the ATF Houston Field Division. “This holiday season, if firearms are not allowed in retail stores or venues that you are visiting, we urge you to store your firearms in a safe and secure gun storage. A little precaution goes a long way in keeping you and everyone around you safe.”
As part of the Project Safe Neighborhoods program to combat violent crime, the Department of Justice has awarded funding to research partner University of Texas Health Science Center at Houston. As a result of that funding, researcher Dr. Alex Testa studied the data surrounding firearm thefts from vehicles.
“Many gun owners are unaware of the serious risks that come with leaving firearms in vehicles,” said Testa. “Even locked cars and compartments are highly susceptible to break-ins, making firearms left in vehicles prime targets for theft. With San Antonio ranking fifth in the nation for firearm thefts from vehicles, raising awareness about these risks is essential to protect both gun owners and the broader community.”
"Each stolen firearm represents a potential weapon in the hands of a criminal, threatening the safety of our community," said Bexar County District Attorney Joe Gonzales. "Preventing gun theft starts with responsible ownership by securing your firearms, please keep them out of the wrong hands and protect the lives of your family and neighbors this holiday season."
“I am sure the last thing anyone wants to do is contribute to violent crimes being committed through their own carelessness or neglect,” said Bexar County Sheriff Javier Salazar. “It is incumbent upon every firearm owner to be cognizant of where weapons are kept at all times.”
“Stolen guns are used to commit violent crimes,” said Chief William McManus for the San Antonio Police Department. “We urge responsible gun ownership, including planning ahead and leaving your firearm at home if you know that you will be entering an establishment that prohibits the carrying of firearms.”
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U.S. Attorney's Office Secures Second Conviction in Illegal Firearms Conversion Device CaseRead the Press Release
ALBUQUERQUE – An Albuquerque woman pleaded guilty in federal court to engaging in the business of dealing firearms without a license and possession of a machine gun conversion device after she and her son negotiated and sold machine gun conversion devices to an undercover ATF agent in 2023.
According to court documents, the investigation began in December 2022 when the ATF identified Joe Jasso's Instagram account advertising machine gun conversion devices. Joe Jasso subsequently deleted the account in January 2023, however ATF agents were able to quickly identify a new account with similar identifiers, including Joe's distinctive skeleton hand tattoo. Undercover operations led to two controlled purchases from Joe Jasso and his mother, Rachel Jasso, 43, in February 2023.
On February 7, 2023, undercover agents conducted two controlled buys with the Jassos. During the first exchange, Joe Jasso demonstrated how to install a Glock Switch on a firearm. Rachael Jasso was present at both exchanges and offered assistance if needed.
On February 16, 2023, ATF agents executed a search warrant at the Jasso residence. During the search, agents recovered ten firearms, five machine gun conversion devices, a large amount of ammunition, numerous magazines, and a 3D printer used to manufacture these devices.
Neither Joe nor Rachael Jasso held the necessary federal firearms license to legally possess or sell these devices. Additionally, between July 2020 and February 2023, thirteen firearms purchased by Rachael Jasso were recovered in criminal investigations.
Rachael Jasso will remain in custody pending sentencing, which has not yet been scheduled. At sentencing, Rachael Jasso faces up to ten years imprisonment and fines up to $250,000. Upon her release from prison, Rachael Jasso will be subject to up to three years of supervised release.
On June 11, 2024, Joe Jasso pleaded guilty to engaging in the business of dealing firearms without a license and possession of a machine gun conversion device. Joe Jasso remains in custody pending sentencing, which is not currently scheduled. At sentencing, he faces 10 years in prison and fines up to $250,000.
U.S. Attorney Alexander M.M. Uballez and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement today.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
Machine gun conversion devices and auto sears are illegal devices that transform semi-automatic firearms into fully automatic weapons capable of continuous firing with a single trigger pull. The possession, manufacture, and sale of these devices without proper licensing is a federal offense carrying severe penalties, including up to 10 years in prison and fines up to $250,000.
The proliferation of these devices poses an immediate and critical threat to public safety. Between 2018 and 2023, the ATF recovered thousands of machine gun conversion devices, indicating an alarming trend in their availability and use. Violent street gangs are increasingly employing these devices, devastating communities and neighborhoods with unprecedented firepower.
This dramatic increase in illegal automatic weapons puts both civilians and law enforcement at extreme risk. Officers responding to incidents may find themselves severely outgunned, facing weapons capable of firing hundreds of rounds per minute. The potential for mass casualties in such encounters is staggering.
Law enforcement agencies are racing against time to intercept these devices before they can be used in violent crimes. Public cooperation is crucial in combating this threat. If you have information about illegal firearms or conversion devices, please contact the ATF immediately:
Call: 1-888-ATF-Tips (1-888-283-8477)
Email: [email protected]
Visit: www.atf.gov/atf-tips
Your tip could save lives and prevent these dangerous weapons from falling into the wrong hands. The time to act is now, before our community fall victim to the devastating impact of these illegal automatic weapons.
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