Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
15 November 2024
Three Defendants Indicted on Methamphetamine Trafficking ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment Thursday against Francisco Cornejo-Quezada, 21, of Watsonville; and Shawn Eric Morales Sr., 51, and Renee Michele Hermann, 54, both of Hood, charging all three defendants with conspiracy to distribute methamphetamine and related offenses, U.S. Attorney Phillip A. Talbert announced.
According to court documents, all three defendants are charged with conspiracy to distribute and possess with intent to distribute over 500 grams of methamphetamine. The indictment also charges the defendants with multiple counts of distributing methamphetamine and charges Morales and Hermann with possession with intent to distribute methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration and Homeland Security Investigations, with assistance from the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Emily G. Sauvageau is prosecuting the case.
If convicted, each defendant faces a minimum statutory penalty of 10 years in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Texas and Lafourche Parish Residents Guilty of Federal Controlled Substances Act ViolationsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that on November 12, 2024, YOLANDA TILLMAN, (“TILLMAN”), age 42, of Des Allemands, Louisiana, and ANJHAELYN HAYNES, (“HAYNES”), age 28, of Humble, Texas, pled guilty before U.S. District Judge Brandon S. Long to charges stemming from a cocaine distribution conspiracy. Both are scheduled for sentencing on February 18, 2025.
TILLMAN pled guilty to conspiracy to distribute, and possess with intent to distribute, controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846. At sentencing she faces a minimum of 5 years and up to 40 years imprisonment, up to a $5,000,000 fine, and at least 4 years of supervised release.
HAYNES pled guilty to conspiracy to distribute, and possession with intent to distribute, controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846. At sentencing, she faces up to 20 years imprisonment, up to a $1,000,000 fine, and at least 3 years of supervised release. All counts also carry a mandatory $100 special assessment fee.
According to court records, beginning on a time unknown, but continuing until at least June 5, 2024, TILLMAN, HAYNES, and others, conspired to distribute, and possess with intent to distribute, cocaine and methamphetamine throughout the Lafourche and Terrebonne Parish within the Eastern District of Louisiana. The conspiracy involved obtaining narcotics from Houston, Texas and transporting the narcotics to Thibodaux, Louisiana. The conspiracy was carried out through wire and electronic communications, and the use of multiple vehicles.
This effort is part of an Organized Crime Drug Enforcement Task Force (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 http://www.justice.gov/OCDETF.
United States Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, the Thibodaux Police Department, the Lafourche Parish Sheriff’s Office, and the Terrebonne Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
Staten Island Crips Gang Member Pleads Guilty to Coercion and Enticement of a Minor and Being a Felon in Possession of a FirearmRead the Press Release
Earlier today, in federal court in Brooklyn, Justin Dixon pleaded guilty to coercion and enticement of a minor and to being a felon in possession of a firearm. The proceeding was held before United States District Judge William F. Kuntz II. When sentenced, Dixon faces a mandatory minimum term of 10 years in prison and a maximum of life in prison.
Breon Peace, United States Attorney for the Eastern District of New York; James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Thomas G. Donlon, Interim Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“With today’s guilty plea, the defendant has added directing the prostitution of a minor and being a felon in possession of a firearm to his criminal history, and he will face the consequences for his lack of respect for the law,” stated United States Attorney Peace. “The Penn Track is a blight on our district, and predators like the defendant who operate there are going to be held accountable by my Office and our law enforcement partners for their ruthless exploitation of women and minors.”
Mr. Peace expressed his appreciation to the Richmond County District Attorney’s Office for their assistance during the investigation.
“Justin Dixon trafficked a 14-year-old girl, along with several other women, for commercial sex and issued violent punishments to ensure adherence to his demeaning rules. Dixon’s twisted ruse allowed him to groom victims before forcing them into sexual servitude on the infamous Penn Track where profits are valued over bodily autonomy. The FBI will continue its mission apprehending predators who prey upon innocent populations out of financial greed,” stated FBI Assistant Director in Charge Dennehy.
“Today’s guilty plea sends a powerful message that crimes against our most vulnerable population, our children, will not be tolerated in our city,” stated NYPD Interim Commissioner Donlon. “It also reaffirms the unwavering dedication of law enforcement to ensure public safety for all New Yorkers. I commend our investigators, as well as our partners at the FBI and the office of the U.S. Attorney for the Eastern District of New York, for their relentless efforts in combating the scourge of sex trafficking. Their determination to hold Mr. Dixon accountable for his actions and to obtain justice for the survivors of these horrific crimes is truly commendable.”
As set forth in court filings, in January 2023, Dixon used violence and threats of violence to compel a 14-year-old minor (Jane Doe) to engage in commercial sex for the defendant’s financial benefit. Dixon transported the minor victim—as well as other women—to an area in East New York, Brooklyn near Pennsylvania Avenue, which is known as the “Penn Track” or the “Blade.” Dixon forced Jane Doe and other women to engage in prostitution and demanded that the proceeds of their sex work be turned over to him. Any resistance from the victims was met with violence. During this time period, the defendant was affiliated with the Crips street gang.
Dixon used social media and other internet applications to establish relationships with potential victims, groom them and manipulate them into working for him as prostitutes. Jane Doe was forced to live in a Staten Island house, along with Dixon and other women. Dixon required that Jane Doe and the other women clean the house, cook for him and bathe him. Dixon would not allow the women to be clothed inside the house and would physically punish the women if they disobeyed any of these rules.
Dixon called Jane Doe “tiny,” and told her that she needed to eat more food in order to look older than her age. The defendant also told Jane Doe that he was arranging a trip to Florida for her to have plastic surgery, including breast implants, to make her appear older.
Prior to his arrest, Dixon brandished firearms in the presence of Jane Doe and other victims. In January 2023, law enforcement officers executed a search warrant in connection with the investigation and recovered a defaced Ruger LCP .380 caliber handgun inside a vehicle used by Dixon to transport Jane Doe and other women to the Penn Track. Prior to possessing this firearm, Dixon had a felony conviction.
This prosecution is part of Project Safe Childhood, a nationwide initiative led by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorney Lorena Michelen is in charge of the prosecution.
The Defendant:
JUSTIN DIXON
Age: 33
Staten Island, New YorkE.D.N.Y. Docket No. 23-CR-090 (WFK)
Statement of U.S Attorney Damian Williams on the Conviction of Alvin EusebioRead the Press Release
“As evidence has shown during the trial of Alvin Eusebio, the 174th Street Crew was a large-scale narcotics organization, principally operating in Washington Heights. Earlier today, Eusebio was convicted in connection to this crew that operated an organized and sophisticated operation, staffing managers to ensure 24/7 coverage, and even disciplining members who missed work or demanding proof of illness (such as a doctor’s note or picture of a positive COVID-19 test). All to pump narcotics onto our streets, including deadly fentanyl. Eusebio’s federal conviction is indicative of the consequences facing those who peddle massive amounts of illegal narcotics on New York’s streets.”
South Carolina Man Arrested for Hate-Based Threats to Kill News Reporter and Her FamilyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that AUSTIN SUMAN was arrested after he made a series of violent and hate-based threats to a news reporter, threatening to kill her and her family, as well as blow up her house. SUMAN was arrested in Myrtle Beach, South Carolina, this morning and will be brought to the Southern District of New York to be presented in White Plains federal court.
U.S. Attorney Damian Williams said: “The charges against the defendant demonstrate our resolve to work at lightning speed to neutralize threats against the press—which serves a vital role in our democracy. To any individual who dares to cross the line and make hate-based threats against members of our press: you will be found, and you will be held accountable for your actions.”
FBI Assistant Director in Charge James E. Dennehy said: “Austin Suman allegedly made numerous threats and ethnic slurs to a local news reporter to file a personal grievance against her for her previous reporting of his prior arrest. His alleged threats to inflict significant harm with firearms and explosives were delivered with intimidation and prejudice. Hiding behind a screen will not prevent the FBI’s pursuit of those who target others with hateful messages of violence and death.”
As alleged in the Complaint:[1]
On Friday, November 8, 2024, SUMAN sent messages over Facebook and email threatening a news reporter based in Orange County, New York. “You are a dumb spick, we [are] coming for you,” he said. “I will end you and your family.” “You better stay in [N]ew [Y]ork.” SUMAN also threatened to blow up the victim’s residence: “I can blow your house off [its] foundation tread lightly.” His threats appeared motivated by an article the reporter wrote several years ago, which related to SUMAN’s arrest for threatening a former roommate with a firearm, resulting in his guns being taken away. He added that all his guns were returned, stating “I have more guns than ever,” including “ful[ly] auto[matic]” weapons. SUMAN’s threats also appeared motivated by gender, race, ethnicity, and national origin. “[D]umb fuckin cunt . . . female journalist what a joke.” “[D]umb Mexican,” he said, while repeating ethnic slurs against people of Hispanic, Latin American, or Spanish descent. “We are going to deport your family all of them . . . [u]seless life. Dumb bitch. I would drag you by your legs naked with my horse.” “Guess what I have now? More [guns] than you or your family might know. Fucking spicks.”
* * *
SUMAN, 35, of Myrtle Beach, South Carolina, is charged with threatening interstate communications, which carries a maximum sentence of five years in prison; willfully making a threat involving explosives, which carries a maximum sentence of 10 years in prison; and interstate stalking, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI and the Hudson Valley Safe Streets Task Force in swiftly investigating the threats charged in the Complaint. Mr. Williams also thanked the New York State Police, Horry County Police Department, and FBI Columbia Division.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Reyhan Watson is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Six Defendants Charged with Narcotics Conspiracy in PeekskillRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of six individuals charged with participating in a drug conspiracy that distributed large amounts of cocaine and fentanyl on the streets of Peekskill, New York. The defendants, JASON TINSLEY, a/k/a “Floss,” JEROME REED, a/k/a “Pops,” RAKIM MAYO, a/k/a “Bo,” THOMAS RYAN, GARY BURKETT, and MIESHA CATO, were arrested and arraigned on Tuesday before U.S. Magistrate Judge Andrew E. Krause. The case is assigned to U.S. District Judge Kenneth M. Karas.
U.S. Attorney Damian Williams said: “As alleged in the Indictment, the defendants participated in a conspiracy to flood the streets of Peekskill with cocaine, crack, and fentanyl. They allegedly operated throughout the City of Peekskill, on the street and in public housing complexes, disrupting people’s everyday lives and brazenly infesting the streets and residential buildings of Peekskill with dangerous drugs while they sought to get rich. Our investigation remains ongoing, and I thank our law enforcement partners and the career prosecutors of this Office who are working tirelessly to keep drug dealers and dangerous illegal drugs out of our communities.”
FBI Assistant Director in Charge James E. Dennehy said: “These six defendants allegedly organized a regional narcotics trade to supply significant amounts of highly addictive drugs, including cocaine and fentanyl, through various personal and intermediary transactions. The alleged conspiracy operated on the streets and within local residential complexes, putting the wellbeing and safety of residents at risk through the increased presence of illegal drugs. The FBI will continue to dismantle and terminate the flow of illegal drugs plaguing our communities.”
As alleged in the Indictment unsealed in White Plains federal court and statements made in court proceedings:
From roughly April 2024 until their arrests this week, the defendants participated in a conspiracy to supply and distribute large amounts of primarily cocaine, crack cocaine, and fentanyl in Peekskill, New York, along with methamphetamine and other narcotics. They operated out of multiple residential buildings, including Peekskill’s Bohlmann Towers and Dunbar Heights public housing complexes, actively selling drugs everyday themselves and through street sellers and couriers.
In addition to arresting the defendants on Tuesday, the FBI, City of Peekskill Police Department, the Westchester County Police Department, and other members of the FBI’s Westchester County Safe Streets Task Force and its partners also executed multiple search warrants in Peekskill, Brooklyn, and New Jersey. In these searches, members of law enforcement discovered multiple kilograms of methamphetamine and crack cocaine, PCP, multiple firearms and rounds of ammunition, and over $100,000 of cash and jewelry.
If you have any information about this case, please contact the FBI at 1-800-Call-FBI or tips.fbi.gov.
* * *
TINSLEY, 42, of Peekskill, New York; REED, 35, of Peekskill, New York; MAYO, 35, of Brooklyn, New York; RYAN, 43, of Brooklyn, New York; BURKETT, 62, of Peekskill, New York; and CATO, 37, of Peekskill, New York, are charged with narcotics conspiracy, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI Westchester County Safe Streets Task Force, the City of Peekskill Police Department, the Westchester County Police Department, and the Drug Enforcement Administration. Mr. Williams also thanked the Yorktown Police Department, the New York City Police Department, and the New York State Police.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Justin L. Brooke is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sisseton Woman Acquitted of Theft from an Indian Tribal OrganizationRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Sisseton, South Dakota, woman was acquitted of Theft from an Indian Tribal Organization following a federal jury trial in Aberdeen, South Dakota, on November 12-14, 2024.
Diahna Kirk, a/k/a Diahna Rose Kirk, age 36, was indicted by a federal grand jury in May 2024.
The charge related to the alleged embezzlement of money by Kirk belonging to the Sisseton-Wahpeton Oyate Fuel Inc., which is an Indian tribal organization
The investigation was conducted by the U.S. Attorney’s Office and the FBI. The U.S. Attorney's Office prosecuted the case.
Sioux Falls Man Sentenced to Federal Prison for Illegally Selling Firearms in South DakotaRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. Chief Judge Roberto A. Lange has sentenced a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on November 12, 2024, in Sioux Falls.
Ocean Stevenson, age 21, was sentenced to 12 months and one day in federal prison, followed by three years of supervised release. He was ordered to pay a $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Stevenson was indicted by a federal grand jury in May 2024. He pleaded guilty on August 5, 2024.
On December 13, 2023, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted an operation targeting Stevenson as an illegal seller of firearms. During the operation, an ATF agent assumed an undercover role and exchanged in communications with Stevenson, during which Stevenson agreed to sell a .40 caliber handgun. The agent met with Stevenson at a location in Sioux Falls to complete the sale. Stevenson is prohibited from possessing firearms due to a 2023 felony conviction in Pennington County.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the ATF and the Sioux Falls Police Department. Special Assistant U.S. Attorney Mark Joyce prosecuted the case.
Stevenson was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Seven More Sentenced for Roles in Meth Conspiracy Tied to Officer’s MurderRead the Press Release
ABINGDON, Va. – Seven more defendants who participated in a conspiracy to distribute methamphetamine tied to the murder of Big Stone Gap, Virginia Police Officer Michael Chandler, were sentenced this week in federal court.
Misty Lynn Ward, 36, of Big Stone Gap, Virginia, Anthony Holmes, 39, of Appalachia, Virginia, and Keri Leanna Corbin, 44, of Jonesville, Virginia were all sentenced yesterday. Holmes was sentenced to 130 months, Ward to 30 months, and Corbin to time served- 24 months and 19 days for their respective roles in the conspiracy.
Kacie Lynn Werner, 43, of Big Stone Gap, Amanda Blanton, 42, of Big Stone Gap, Lucille Vanover, 33, of Kingsport, Tennessee, and Tiny Westmoreland, 47, of Big Stone Gap, were sentenced earlier this week. Werner was sentenced to 36 months, Blanton to 36 months, Westmoreland was sentenced to 60 months, and Vanover was sentenced to time served, 24 months and 17 days.
Previously sentenced for their roles in the conspiracy were: Timothy Ray Jones - 235 months; Charles Ryan Bowman - 120 months; Elicia Amber Burns - 172 months; James Brian Mullins - 180 months; Justin Dwayne Skaggs - 132 months; Tyler Lee Westmoreland - 54 months, Hailee Dietz and Paul Jones, were each sentenced to 121 months; and James Ray Worley - 120 months.
A total of 19 defendants were charged for conspiring to distribute more than 15 kilograms of methamphetamine, as well as heroin and fentanyl. According to court documents, beginning in August 2021 and continuing until their arrest, the 19 defendants participated in a conspiracy to traffic methamphetamine from Tennessee and other states into southwest Virginia, and then further distribute it throughout Wise County, Virginia.
Tragically, at approximately 4:00 a.m. on November 13, 2021, Officer Chandler responded to a welfare check call at 2505 Orr Street in Big Stone Gap, known locally as “the red house.” Upon arriving at the Orr Street address, Officer Chandler encountered a vehicle outside the residence and was immediately shot by Michael Donivan White. Officer Chandler died later that evening from his injuries. White was later located at a motel in Kingsport, Tennessee, and a subsequent search of the motel room revealed a Taurus, 9mm pistol. Further testing ultimately proved this firearm to be the same one that fired the shots that killed Officer Chandler. Michael Donivan White was indicted on federal and state charges for killing Officer Chandler and has since pled guilty in both cases. White is scheduled to be sentenced in federal court in Abingdon on February 20-21, 2024.
United States Attorney Christopher R. Kavanagh, and Anthony A. Spotswood, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Virginia State Police, the United States Marshal’s Service, the Wise County Sheriff’s Office, the City of Norton Virginia Police Department, the Kingsport Tennessee Police Department, the Big Stone Gap Police Department, the Wise County Commonwealth’s Attorney’s Office, the East Tennessee Drug Task Force, and the Southwest Virginia Drug Task Force, which is comprised of investigators from the Virginia State Police, Lee County Sheriff’s Office, Scott County Sheriff’s Office, Wise County Sheriff’s Office, City of Norton Police Department, and Big Stone Gap Police Department.
Assistant U.S. Attorneys Lena L. Busscher and Danielle Stone are prosecuting the case.
San Francisco Man and New York Man Charged in Scheme to Defraud InvestorsRead the Press Release
OAKLAND – A federal grand jury indicted Avi Fogel, now known as Avi King, and Christos Chrestatos each with one count of conspiracy to commit wire fraud and four counts of wire fraud. Fogel was also charged with one count of false writings to a government agency and an additional count of wire fraud.
Fogel, 47, of San Francisco (who was also known as, in addition to Avi King, Aaron Rose, Aaron Rothchild, and Aaron Gilman), self-surrendered on Nov. 7, 2024, and made his initial appearance in federal court in Oakland that same day. Chrestatos, 45, of Long Island, N.Y., also known as Chris Silverman, was arrested today, and made his initial appearance in federal court in the Eastern District of New York.
According to the indictment filed Oct. 3, 2024, and unsealed Nov. 7, 2024, defendants allegedly engaged in an investment fraud scheme wherein they purported to be producers in the entertainment industry with close ties to “A-list” actors, directors, and other celebrities. Fogel allegedly met potential victims in a variety of places, such as dating websites and shared taxi rides. At various times, defendants claimed to be producers at “Universal.” The indictment alleges that the men lied to victims about their ability to arrange investment and product integration deals in feature films, documentaries, and television series when they knew they had no actual connection to the productions and no affiliation with Universal.
Defendants allegedly created entities, including Suzy and the Sock Dragon Media Group, LLC, Rhinoheart Films, LLC, and The Book Media Group, LLC, to entice investors to invest in their fraudulent scheme. According to the indictment, Fogel and Chrestatos fraudulently obtained investments from multiple victims totaling approximately $167,100, and used the funds for purposes other than as represented to investors.
Additionally, the indictment alleges that Fogel submitted a fraudulent loan application to the U.S. Small Business Administration through the Economic Injury Disaster Loan Program, ultimately receiving $52,400. Fogel allegedly claimed that his company, Suzy and the Sock Dragon Media Group, LLC, was engaged in “entertainment services,” had $125,000 in gross revenues and sold $20,000 in goods, amounts that were derived from the money obtained through defendants’ investment fraud scheme.
The announcement was made by United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp.
Both defendants were released on bond. Fogel’s next scheduled appearance is on Dec. 9, 2024, for a status hearing before the Honorable Araceli Martínez-Olguín, U.S. District Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, defendants each face a maximum sentence of 20 years of imprisonment, a fine of $250,000, three years of supervised release, and forfeiture for the charges of conspiracy to commit wire fraud and wire fraud in counts one to five. Additionally, if convicted, Fogel faces a maximum sentence of 30 years of imprisonment, a fine of $250,000, three years of supervised release, and forfeiture for the wire fraud charge in count six, and five years of imprisonment, a fine of $250,000, three years of supervised release, and forfeiture for the false writings to a government agency charge in count seven. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Benjamin K. Kleinman is prosecuting the case with the assistance of Kay Konopaske. The prosecution is the result of an investigation by the FBI.
Avi Fogel Indictment
Reno Man Sentenced to 10 Years in Prison for Coercion and Enticement of A MinorRead the Press Release
RENO – A Reno resident was sentenced by United States District Judge Miranda M. Du to 10 years in prison to be followed by 20 years of supervised release for coercion and enticement of a teenage boy.
According to court documents, in March 2023, Gregory Weeks (37) engaged in sexually explicit conversations with and sent nude videos of himself masturbating to a 15-year-old boy. The conversations included making plans to have sex in a hotel in Reno. Weeks drove from Utah to Reno and picked the victim up outside the gate leading to the victim’s home. Weeks then drove the victim to a hotel where Weeks made reservations and engaged in sexual activities with the victim.
In July 2024, Weeks pleaded guilty to one-count of coercion and enticement. In addition to imprisonment, Weeks was also ordered to pay $6,150 in restitution to the victim. Under the Sex Offender Registration and Notification Act (SORNA), after his release from prison, Weeks will be required to register as a sex offender.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI-led Northern Nevada Child Exploitation and Human Trafficking Task Force, which is comprised of detectives and investigators from the Sparks Police Department, Washoe County Sheriff’s Office, Nevada Attorney General’s Office, and Homeland Security Investigations (HSI) investigated the case. Assistant United States Attorney Megan Rachow prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children by calling 1-800-THE-LOST (1-800-843-5678) or online at https://report.cybertip.org.
###
QOL Medical and Its CEO Agree to Pay $47 Million for Allegedly Paying Kickbacks to Induce Claims for QOL's Drug SucraidRead the Press Release
BOSTON – Pharmaceutical company QOL Medical, LLC (QOL) and its CEO, Frederick E. Cooper, have agreed to pay $47 million to resolve allegations that they caused the submission of false claims to federal health care programs, in violation of the False Claims Act, by offering kickbacks, in the form of free Carbon-13 breath testing services, to induce claims for QOL’s drug Sucraid.
Sucraid is an FDA-approved therapy for the rare genetic condition, Congenital Sucrase-Isomaltase Deficiency (CSID). CSID patients have difficulty digesting sucrose (table sugar) and suffer from chronic gastrointestinal symptoms such as diarrhea, abdominal pain, bloating and gas.
As part of the settlement, QOL and Mr. Cooper admitted and accepted responsibility for certain facts providing the basis of the settlement. Beginning in 2018, QOL, with Mr. Cooper’s approval, distributed free Carbon-13 breath test kits to health care providers and asked providers to give the kits to patients with common gastrointestinal symptoms. QOL claimed that the test could “rule in or rule out” CSID. In fact, the test does not specifically diagnose CSID. Conditions other than CSID can cause a patient to test “positive” for low sucrase activity on a Carbon-13 breath test. Approximately 30% of the Carbon-13 breath tests from QOL were positive for low sucrase activity.
QOL paid a laboratory to analyze the breath tests, report the results to health care providers, and provide the results to QOL. The results QOL received from the laboratory did not contain patient names, but did contain the name of the health care provider who ordered the test, along with the patient’s age, gender, symptoms and test result. Between 2018 and 2022, QOL disseminated this information to its sales force with instructions to make sales calls for Sucraid to health care providers whose patients had positive Carbon-13 breath test results. QOL tracked whether sales representatives converted “positive” Carbon-13 breath tests into Sucraid prescriptions. As QOL’s CEO, Mr. Cooper was aware of and approved the implementation and continuation of this marketing program.
Some QOL sales representatives also made claims regarding the Carbon-13 test’s ability to definitively diagnose CSID that were not supported by published scientific literature. For example, in slides at a 2019 national sales training, which Mr. Cooper reviewed, QOL suggested that sales representatives tell health care providers, “If you have a positive breath test, the patient will not improve unless you treat with Sucraid.”
“QOL provided free goods to doctors and patients in order to induce prescriptions for the very expensive drug QOL manufactured,” said Acting United States Attorney Joshua S. Levy. “Not all kickbacks come in the form of cash going into a doctor’s or a patient’s pocket. Here, the defendants relied on free breath tests and misleading sales tactics to drive patients to their product. This conduct unnecessarily drained money from the federal health care programs and improperly influenced treatment decisions by physicians and their patients.”
“Participants in the federal healthcare system, including pharmaceutical manufacturers, may not offer improper inducements to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting the integrity of federal health care programs, upholding the objectivity of treatment decisions by physicians and patients and preventing overutilization and waste in government health care programs.”
“Kickback arrangements can compromise medical decisions and threaten the integrity of the Medicare program,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General. “We are committed to protecting taxpayer-funded health care programs and the patients served by those programs, and we will thoroughly pursue allegations of False Claims Act violations.”
“It is extremely important that we protect our government funded health care programs against fraud of any kind. Today’s settlement with QOL Medical and its CEO is the result of years of hard work by the FBI and our partners to make sure this company did not get away with offering improper incentives to boost sales of its drug Sucraid,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Let this case be a warning to others that we will aggressively pursue all those, motivated by greed, who try to unlawfully enrich themselves at taxpayers’ expense.”
“The Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General, has placed a high priority on pursuing companies that engage in fraudulent activity at the expense of the U.S. military,” said Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “This settlement demonstrates our commitment to protecting the TRICARE program, and we will continue to work with our partners to ensure critical healthcare funds are utilized in the appropriate manner.”
“QOL misled doctors and patients by claiming their breath test could definitively diagnose CSID when there was not reliable data to support those claims,” said Special Agent in Charge Fernando McMillan, FDA Office of Criminal Investigations New York Field Office. “FDA will continue to pursue those who make unsupported claims that can jeopardize the public health for financial gain.”
The allegations resolved by the settlement agreement were, in part, originally bought in a case filed under the qui tam or whistleblower provisions of the False Claims Act by former QOL Medical employees. The case is captioned United States ex rel. John Doe 1, et al. v. QOL Medical, LLC, et al., No. 1:20-cv-11243 (D. Mass.). Of the total $47 million recovery, approximately $43.6 million constitutes the federal portion of the recovery and approximately $3.4 million constitutes a recovery for State Medicaid programs. The whistleblowers will receive approximately $8 million as their share of the recovery.
This matter was handled by Assistant U.S. Attorneys Brian LaMacchia and Lindsey Ross for the District of Massachusetts and Trial Attorneys Emily Bussigel and Paige Ammons of the Justice Department’s Civil Division. The case was investigated by HHS-OIG, FBI, DCIS and the Office of Inspector General for the Department of Veterans Affairs.
Portage Man Sentenced to 8 Years in Prison for Telemarketing FraudRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Irfan Gill, 63, of Portage was sentenced to 8 years in prison following convictions, at trial, for mail fraud and money laundering in connection with an international telemarketing scheme. Gill was also ordered to pay $561,980.27 in restitution to the victims of this case.
“Irfan Gill preyed on older Americans to pad his own pocket, leaving victims scared and ruined,” said U.S. Attorney Mark Totten. “Every day these scams happen across America and target vulnerable members of our communities. We’re fighting to hold these criminals accountable, but above all want to prevent these crimes. I encourage everyone to protect themselves and their loved ones: be wary of unsolicited calls; never share sensitive information; and resist the pressure to act quickly.”
The evidence at trial showed that between at least June 2018 and March 2022, Gill worked with a call center in Pakistan that defrauded over 1,500 primarily elderly people across the United States into paying a total of more than $560,000.00 for cable and satellite television upgrades and subscription discounts that were never provided. Callers in Pakistan convinced victims to mail checks and money orders to post office boxes in Portage, including, in some cases, by threatening to terminate victims’ television services. Gill retrieved victims’ payments and deposited them into bank accounts in the names of fake cable and satellite television businesses, including Cable Upgrade, D Network, D Tech, Direct Network, Dish, Dish Upgrade, and Sky Satellite. Gill kept track of the payments, attributing specific victims to specific overseas callers, and calculated how much money to keep for himself and how much to wire to Pakistan. Gill avoided detection by opening multiple post office boxes and bank accounts for his fake companies and by making efforts to convince several bank investigators that his fake companies were legitimate. The jury convicted Gill of seven counts of mail fraud and eleven counts of money laundering in connection with his telemarketing scheme.
In addition to the telemarketing scheme, Gill did not report or pay taxes on the fraud proceeds and, during the COVID-19 pandemic, he fraudulently obtained over $20,000.00 in Paycheck Protection Program loans for a fake cable and satellite television company that did not exist.
“This sentencing highlights the U.S. Postal Inspection Service’s dedication to safeguarding our most vulnerable citizens, especially the elderly, from those who seek to exploit them for personal financial gain,” said Inspector in Charge Rodney M. Hopkins of the U.S. Postal Inspection Service, Detroit Division. “This individual’s fraudulent activities inflicted untold financial and emotional distress on the victims, and today’s sentencing reaffirms our commitment to protecting the public from such schemes. We will continue to be vigilant in our pursuit of justice for those who would prey upon the vulnerable.”
Federal law enforcement provides a number of tips on how to protect yourself from telemarketing scams, including:
- Be cautious of unsolicited phone calls, e-mails, and mailings.
- Never give or send any sensitive information (including your date of birth, account numbers, or passwords), credit or debit card numbers, or money to unverified people or businesses.
- Resist the pressure to act quickly. Scammers create a false sense of urgency to lure people to immediate action.
- If you recognize a scam attempt, immediately end all communication with the perpetrator.
The U.S. Postal Inspection Service investigated this case, and Assistant U.S. Attorneys Adam Townshend and Stephen Baker prosecuted it.
# # #
Porcupine Man Sentenced to Four Years in Federal Prison for Sexually Abusing a Minor FemaleRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced a Porcupine, South Dakota, man convicted of Sexual Abuse of a Minor. The sentencing took place on November 13, 2024.
Michael Lee Spider, Jr., age 30, was sentenced to four years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Spider was indicted for the charge by a federal grand jury in April of 2024. He pleaded guilty on August 5, 2024.
In September of 2023, Spider met up with a 14-year-old female at a residence in the Pine Ridge Reservation. The female became intoxicated and high on marijuana. Spider and the female engaged in a sexual act.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the FBI. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Spider was immediately remanded to the custody of the U.S. Marshals Service.
Plankinton Man Charged as an Unlawful User of Controlled Substances in Possession of FirearmsRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Plankinton, South Dakota, man for Possession of Firearms by a Prohibited Person.
Cory John Cumings, age 45, was indicted in November of 2024. He appeared before U.S. Magistrate Judge Veronica L Duffy on November 14, 2024, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, up to three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 21, 2023, Cumings, knowing he was an unlawful user of controlled substances, was in possession of excess of 100 firearms and ammunition.
The charge is merely an accusation and Cumings is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the South Dakota Division of Criminal Investigation. The Davison County Sheriff’s Office and the Mitchell Police Department also assisted with the investigation. Special Assistant U.S. Attorney Mark Joyce is prosecuting the case.
Cumings was released on bond pending trial. A trial date has not been set.
Pharmaceutical Company QOL Medical and CEO Agree to Pay $47M for Allegedly Paying Kickbacks to Induce Claims for QOL’s Drug SucraidRead the Press Release
Pharmaceutical company QOL Medical LLC (QOL) and its co-owner and CEO, Frederick E. Cooper, have agreed to pay $47 million to resolve allegations that they caused the submission of false claims to federal health care programs, in violation of the False Claims Act and similar state statutes, by offering kickbacks in the form of free Carbon-13 breath testing services to induce claims for QOL’s drug Sucraid.
Sucraid is an FDA-approved therapy for the rare genetic condition Congenital Sucrase-Isomaltase Deficiency (CSID). CSID patients have difficulty digesting sucrose (table sugar) and suffer from gastrointestinal symptoms such as diarrhea, abdominal pain, bloating and gas.
Beginning in 2018, QOL, with Cooper’s approval, distributed free Carbon-13 breath test kits to health care providers and asked providers to give the kits to patients with common gastrointestinal symptoms. QOL claimed that the test could “rule in or rule out” CSID. In fact, the test does not specifically diagnose CSID. Conditions other than CSID can cause a patient to test “positive” for low sucrase activity on a Carbon-13 breath test. Approximately 30% of the Carbon-13 breath tests from QOL were positive for low sucrase activity.
QOL paid a laboratory to analyze the breath tests, report the results to health care providers and also provide the results to QOL. The results provided to QOL did not contain patient names, but did contain the name of the health care provider who ordered the test, along with the patient’s age, gender, symptoms and test result. Between 2018 and 2022, QOL disseminated this information to its sales force with instructions to make sales calls for Sucraid to health care providers whose patients had positive Carbon-13 breath test results. QOL tracked whether sales representatives converted “positive” Carbon-13 breath tests into Sucraid prescriptions. As QOL’s CEO, Cooper was aware of and approved the implementation and continuation of this marketing program.
Some QOL sales representatives also made claims to health care providers regarding the Carbon-13 test’s ability to definitively diagnose CSID that were not supported by published scientific literature. For example, in slides at a 2019 national sales training, which Cooper reviewed, QOL suggested that sales representatives tell health care providers, “If you have a positive breath test, the patient will not improve unless you treat with Sucraid.”
As part of the settlement, QOL and Cooper admitted and accepted responsibility for certain facts providing the basis of the settlement.
“Participants in the federal healthcare system, including pharmaceutical manufacturers, may not offer improper inducements to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting the integrity of federal health care programs, upholding the objectivity of treatment decisions by physicians and patients and preventing overutilization and waste in government health care programs.”
“QOL provided free goods to doctors and patients in order to induce prescriptions for the very expensive drug QOL manufactured,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “Not all kickbacks come in the form of cash going into a doctor’s or a patient’s pocket. Here, the defendants relied on free breath tests and misleading sales tactics to drive patients to their product. This conduct unnecessarily drained money from the federal health care programs and improperly influenced treatment decisions by physicians and their patients.”
“Kickback arrangements can compromise medical decisions and threaten the integrity of the Medicare program,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We are committed to protecting taxpayer-funded health care programs and the patients served by those programs, and we will thoroughly pursue allegations of False Claims Act violations.”
“Kickbacks have no place in our healthcare system,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “This settlement should send a message that the FBI is committed to finding fraudsters and investigating all those who try to exploit the healthcare system at the expense of patients.”
“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General, has placed a high priority on pursuing companies that engage in fraudulent activity at the expense of the U.S. military,” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “This settlement demonstrates our commitment to protecting the TRICARE program, and we will continue to work with our partners to ensure critical healthcare funds are utilized in the appropriate manner.”
The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the qui tam or whistleblower provisions of the False Claims Act by Elizabeth Allen, Lauren Canlas, Donald Johnson and Stacey Adams, who are former QOL Medical employees. The case is captioned United States ex rel. John Doe 1 et al. v. QOL Medical LLC, et al., No. 1:20-cv-11243 (DMA). The False Claims Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did, in part, in this case. Of the total $47 million recovery, approximately $43.6 million constitutes the federal portion of the recovery and approximately $3.4 million constitutes a recovery for State Medicaid programs. The whistleblowers will receive approximately $8 million from the federal portion of the recovery.
The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Massachusetts, with investigative support from HHS-OIG, the FBI Boston Field Office, DCIS and Department of Veterans Affairs’ Office of the Inspector General.
Trial Attorneys Emily Bussigel and Paige Ammons of the Justice Department’s Civil Division and Assistant U.S. Attorneys Brian LaMacchia and Lindsey Ross for the District of Massachusetts handled the matter.
With the exception of the facts admitted by QOL and Cooper, the claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Patrick Bryant Hawley Arrested for Sexual Exploitation of ChildrenRead the Press Release
CHATTANOOGA, Tenn. — On November 14, 2024, Patrick Bryant Hawley, 42, of Lookout Mountain, Tennessee, was arrested in Chattanooga by agents of Homeland Security Investigations (HSI) and the Federal Bureau of Investigation (FBI) on charges involving sexual exploitation of children.
An initial appearance was held at 4:00 p.m. on Thursday, November 14, 2024, in the United States District Court in Chattanooga, before United States Magistrate Judge, Honorable Susan K. Lee, in the United States District Court for the Eastern District of Tennessee. Hawley was detained following this proceeding. An arraignment is scheduled for Friday, November 22, 2024. A trial date will be set at a later time.
The details of the charges are outlined in the arrest warrant and supporting affidavit, which are filed as public records in the United States District Court for the Eastern District of Tennessee at Chattanooga.
United States Attorney, Francis M. Hamilton, III, of the Eastern District of Tennessee, Special Agent in Charge, Rana Saoud, with HSI, and Special Agent in Charge, Joseph E. Carrico, with FBI made the announcement.
HSI encourages anyone who believes that they or someone they know has been a victim of child exploitation should contact HSI at (877) 4-HSI-TIP or online at www.ice.gov/tipline.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
###
Owner of Florida Healthcare Companies Pleads Guilty to Tax CrimesRead the Press Release
A Florida man pleaded guilty today in federal court in Miami to not paying employment taxes and not filing his individual income tax returns.
According to court documents, Paul Walczak, of Palm Beach Gardens, controlled a web of interconnected healthcare companies operating under various names, including Palm Health Partners and Palm Health Partners Employment Services (PHPES). At its peak, PHPES employed over 600 people and paid over $24 million dollars annually in payroll.
From 2016 through 2019, Walczak withheld nearly $7.5 million in taxes from his employees’ paychecks but did not pay over those taxes to the IRS as required by law. He did this despite having been penalized by the IRS in 2014 for not paying his employees’ taxes. During this same period, Walczak also did not pay $3,480,111 of the business’s portion of his employees’ Social Security and Medicare taxes.
At the same time Walczak was withholding taxes from his employees’ wages and not paying them to the IRS, he used over $1 million from his businesses’ bank accounts to purchase a yacht, transferred hundreds of thousands of dollars to his personal bank accounts and used the business accounts for personal spending at retailers such as Bergdorf Goodman, Cartier and Saks Fifth Avenue.
For 2019 through 2020, Walczak did not file personal income tax returns despite being legally required to do so.
In total, Walczak caused a tax loss to the IRS of $10,912,334.80
Walczak is scheduled to be sentenced on Feb. 28, 2025. He faces a maximum penalty of five years in prison for the employment tax charge and one year in prison for not filing income tax returns. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Andrew Ascencio, Brian Flanagan and Ashley Stein of the Justice Department’s Tax Division are prosecuting the case.
Operator of Helix Darknet Cryptocurrency “Mixer” Sentenced in Money Laundering Conspiracy and Ordered to Forfeit over $400M in AssetsRead the Press Release
An Ohio man was sentenced today to three years in prison for his operation of the darknet cryptocurrency “mixer” Helix, which processed transactions involving over $300 million worth of cryptocurrency from 2014 to 2017.
According to court documents, Larry Dean Harmon, 41, of Akron, ran Helix, a darknet mixer that laundered customers’ bitcoin. Helix was connected to Grams, a darknet search engine also run by Harmon. Helix was one of the most popular mixing services on the darknet and was highly sought after by online drug dealers who needed to launder their illicit proceeds. Helix processed at least approximately 354,468 bitcoin — the equivalent of approximately $311,145,854 in U.S. dollars at the time of the transactions — on behalf of its customers, including customers in the District of Columbia. Much of those funds were coming from or going to darknet drug markets. Harmon retained a percentage of these transactions as his commissions and fees for operating Helix.
Harmon worked to ensure Grams and Helix connected to or otherwise supported all of the major darknet markets at the time. Harmon developed an Application Program Interface (API) to allow darknet markets to integrate Helix directly into their bitcoin withdrawal systems. Harmon also customized features of Helix to ensure compatibility with significant markets. Investigators traced tens of millions of dollars from darknet markets to Helix.
On Aug. 18, 2021, Harmon pleaded guilty to conspiracy to commit money laundering.
In addition to his term in prison, Harmon was sentenced to three years of supervised release; a forfeiture money judgment in the amount of $311,145,854; and forfeiture of seized cryptocurrencies, real estate, and monetary assets valued at over $400 million.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Matthew M. Graves for the District of Columbia; Chief Guy Ficco of IRS Criminal Investigation (IRS-CI); and Assistant Director Bryan Vorndran of FBI’s Cyber Division made the announcement.
IRS-CI’s Washington D.C. Cyber Crimes Unit and the FBI Washington Field Office investigated the case, with valuable assistance provided by the Justice Department’s Office of International Affairs and U.S. Attorney’s Office for the Northern District of Ohio.
The Attorney General’s Ministry of Belize and Belize Police Department provided essential support for the investigation, coordinated through U.S. Embassy Belmopan. The investigation was coordinated with the Financial Crimes Enforcement Network, which assessed a $60 million civil monetary penalty against Harmon in a parallel action.
Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Special Assistant U.S. Attorney Christopher B. Brown for the District of Columbia prosecuted the case. Trial Attorney Riane Harper and former Trial Attorney W. Joss Nichols of CCIPS, Paralegal Specialist Angela De Falco for the District of Columbia, and Assistant U.S. Attorney Daniel Riedl for the Northern District of Ohio provided valuable assistance.
Operator of Helix Darknet Cryptocurrency ‘Mixer’ Sentenced in Money Laundering Conspiracy Involving Hundreds of Millions of DollarsRead the Press Release
WASHINGTON — Larry Dean Harmon, 41, of Akron, Ohio, was sentenced today to three years in prison for his operation of the darknet cryptocurrency “mixer” Helix, which processed transactions involving over $300 million worth of cryptocurrency from 2014 to 2017.
The sentence was announced by U.S. Attorney Matthew M. Graves for the District of Columbia; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Chief Guy Ficco of the IRS Criminal Investigation (IRS-CI); Assistant Director in Charge David Sundberg of the FBI Washington Field Office and Assistant Director Bryan Vorndran of the FBI’s Cyber Division.
Harmon pleaded guilty on August 18, 2021, to conspiracy to commit money laundering.
According to court documents, Harmon ran Helix, a darknet mixer that laundered customers’ bitcoin. Helix was connected to Grams, a darknet search engine also run by Harmon. Helix was one of the most popular mixing services on the darknet and was highly sought after by online drug dealers who needed to launder their illicit proceeds. Helix processed at least approximately 354,468 bitcoin — the equivalent of approximately $311,145,854 in U.S. dollars at the time of the transactions — on behalf of its customers, including customers in the District of Columbia. Much of those funds were coming from or going to darknet drug markets. Harmon retained a percentage of these transactions as his commissions and fees for operating Helix.
Harmon worked to ensure Grams and Helix connected to or otherwise supported all of the major darknet markets at the time. Harmon developed an Application Program Interface (API) to allow darknet markets to integrate Helix directly into their bitcoin withdrawal systems. Harmon also customized features of Helix to ensure compatibility with significant markets. Investigators traced tens of millions of dollars from darknet markets to Helix.
In addition to his term of imprisonment, Harmon was sentenced to three years of supervised release; a forfeiture money judgment in the amount of $311,145,854; and forfeiture of seized cryptocurrencies, real estate, and monetary assets valued at over $400 million.
The IRS-CI Cyber Crimes Unit and FBI Washington Field Office investigated the case, with valuable assistance provided by the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the Northern District of Ohio.
The Attorney General’s Ministry of Belize and the Belize Police Department provided essential support for the investigation, coordinated through the U.S. Embassy in Belmopan. The investigation was coordinated with the Financial Crimes Enforcement Network, which assessed a $60 million civil monetary penalty against Harmon in a parallel action.
Special Assistant U.S. Attorney Christopher B. Brown of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) prosecuted the case. Trial Attorney Riane Harper and former Trial Attorney W. Joss Nichols of CCIPS, Paralegal Specialist Angela De Falco for the District of Columbia, and Assistant U.S. Attorney Daniel Riedl for the Northern District of Ohio provided valuable assistance.
19cr0395
Oklahoma Man Sentenced to 84 Months in Federal Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge John W. deGravelles sentenced David John Ballance, age 58, of Tulsa, Oklahoma, to 84 months in federal prison following his conviction for receipt of child pornography. Ballance must serve five years of supervised release upon completing his term of imprisonment. The Court also ordered Ballance to pay $3,000 in restitution and ordered him to register as a sex offender upon his release.
According to admissions made as part of his guilty plea, in July 2021, Ballance, located in Tulsa, Oklahoma, began communicating with a 13-year-old minor located in the Middle District of Louisiana. Ballance told the minor that he was 23 years old, when he was in fact 54 years old, and identified himself by a false name. The communications began via an on-line gaming application that allowed for direct messaging between players. Ballance then began using a separate social media platform that allowed for one-on-one communications between parties. During the period of communications, he knew that the individual with whom he was communicating was younger than 16.
Between July 2021 and October 2021, Ballance started introducing intimate language in the communications with the minor, and knowingly sent images containing explicit content. The minor then sent explicit images of themself to Ballance via the internet. The image was taken by the minor and transmitted to Ballance by the minor in October 2021 through an application set to allow images to remain visible for five seconds. During those five seconds, however, for the aforementioned image and others of the minor, Ballance was able to capture them before they disappeared from the social media application.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Paul L. Pugliese.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Ocala Convicted Felon Pleads Guilty to Illegal Possession of A Firearm and AmmunitionRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces that Alan Ellis Gillespie, Jr. (31, Ocala) has pleaded guilty to possession of a firearm and ammunition affecting commerce by a convicted felon. Gillespie faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to court documents, on August 27, 2024, a deputy from the Marion County Sheriff’s Office attempted to conduct a traffic stop on a vehicle. Gillespie exited that vehicle through the passenger door and fled on foot. During the chase, Gillespie threw a backpack on the ground. Once Gillespie was apprehended, a search of his backpack revealed an AK-47 style pistol loaded with 30 rounds of ammunition. At the time, Gillespie had previous state felony convictions, including battery, carrying a concealed firearm, and possession of cannabis of more than 20 grams. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Marion County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
This case is part of the Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Norfolk Man Sentenced to 135 Months for Methamphetamine ChargesRead the Press Release
United States Attorney Susan Lehr announced that Mick T. Hausmann, age 55, of Norfolk, Nebraska, was sentenced November 14, 2024, in federal court in Omaha, Nebraska for possessing with intent to distribute more than 50 grams of pure methamphetamine. United States District Judge Brian C. Buescher sentenced Hausmann to 135 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
On April 3, 2024, the Nebraska State Patrol conducted a traffic stop of a vehicle of a vehicle in which Hausmann was the driver. After a glass meth pipe was found on a passenger, troopers conducted a search of the vehicle. In the center console, a bag containing 32 grams of meth was found.
A search warrant was obtained for Hausmann’s residence. Troopers searching the residence found more than 1200 grams of pure meth.
This case was investigated by the Nebraska State Patrol.
Nicolelus Sanborn Pleads Not Guilty to Federal Drug Distribution ChargesRead the Press Release
Burlington, Vermont – The United States Attorney’s Office announced that Nicolelus Sanborn, 30, of Burlington, Vermont, pleaded not guilty yesterday in United States District Court in Burlington to an indictment charging him with distributing fentanyl. U.S. Magistrate Judge Kevin J. Doyle ordered that Sanborn be detained during the pendency of this matter.
On October 17, 2024, a federal grand jury returned the indictment that charged Sanborn with distributing fentanyl in May 2024. According to court records, a cooperating individual bought narcotics from Sanborn in controlled purchases that were recorded and surveilled by law enforcement. Law enforcement arrested Sanborn on those charges on November 14, 2024.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Sanborn is presumed innocent until and unless proven guilty.
If convicted, Sanborn faces up to 20 years of imprisonment and a fine of up to $1,000,000. The actual sentence, however, would be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
This case was investigated by the Burlington Police Department and the Drug Enforcement Administration Task Force.
Sanborn is represented by Mark Oettinger, Esq. The prosecutor for the government is Assistant U.S. Attorney Gregory Waples.
Newtown Restaurant to Improve Accessibility in ADA SettlementRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement with Carminuccio’s Pizza, LLC, a restaurant located on South Main Street in Newtown, to address allegations of non-compliance with the Americans with Disabilities Act (“ADA”).
The agreement resolves a complaint filed with the U.S. Department of Justice that alleged that Carminuccio’s Pizza, LLC (“Carminuccio’s”) was not accessible to individuals with mobility disabilities. Under the ADA, public accommodations, including restaurants, are prohibited from discriminating against individuals with disabilities. As part of that obligation, public accommodations must remove physical barriers to access for individuals with mobility disabilities where doing so is readily achievable. They must also ensure that renovations undertaken after the effective date of the ADA are readily accessible to and usable by individuals with disabilities to the maximum extent feasible.
Under the terms of the settlement agreement, Carminuccio’s will make its parking area more accessible and add a ramp to the entrance of the restaurant. In addition, the restaurant will add accessible dining tables and make a number of changes to make the bathroom more accessible. The restaurant has also agreed to comply with Title III of the ADA in all future alterations and renovations.
U.S. Attorney Avery noted that the owner and operator of Carminuccio’s has worked cooperatively with the U.S. Attorney’s Office to improve their ADA compliance without litigation. The settlement agreement is effective for three years, and the U.S. Attorney’s Office will monitor compliance during that time.
This matter was handled by Assistant U.S. Attorney Stewart C. Dearing.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the Civil Rights Intake Specialist at the U.S. Attorney’s Office by calling 203-696-3000.
Additional information about the ADA may be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (833) 610-1264 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
New York Man Pleads Guilty to Employment Tax CrimesRead the Press Release
A New York man pleaded guilty to employment tax crimes for not collecting and paying over employment taxes from the wages of his company’s employees.
According to court documents and statements made in court, Victor Aguayo, of Nassau County, was owner and president of Mabel Interior Design Inc., an interior painting business in Westbury, New York. Aguayo was responsible for withholding Social Security, Medicare and federal income taxes from his employees’ wages, reporting those wages and withholdings to the IRS quarterly and paying those withheld taxes to the IRS quarterly as well.
Instead, Aguayo paid his employees approximately $3.6 million in cash wages but did not withhold or pay taxes from those wages. In addition, he caused false quarterly tax returns to be filed that did not report those cash wages. As a result, Aguayo caused a tax loss to the IRS of $545,743.
Aguayo is scheduled to be sentenced on April 21, 2025. He faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Sarah Ranney and Trial Attorney Joseph D. G. Castro of the Tax Division are prosecuting the case.
New York Doctor Pleads Guilty to Health Care FraudRead the Press Release
BOSTON – A New York doctor pleaded guilty yesterday in federal court in Boston for receiving kickbacks in exchange for ordering medically unnecessary brain scans.
Dr. Kenneth Fishberger, 75, of East Setauket, N.Y. pleaded guilty to one count of conspiracy to commit health care fraud. Judge Nathaniel M. Gorton scheduled sentencing for Feb. 25, 2025.
Fishberger, an internist in Long Island, N.Y., was a licensed medical doctor in the State of New York for approximately 47 years. From approximately June 2013 through December 2019, Fishberger conspired with others, including a principal for a mobile medical diagnostics company that performed transcranial doppler (TCD) scans, and a salesperson for the company, 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. Fishberger 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, Fishberger was paid cash kickbacks of approximately $100 per test. According to the charging documents, the scheme resulted in fraudulent bills of approximately $891,978 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; Harry Chavis, Jr., 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 made the announcement. Assistant U.S. Attorneys Howard Locker and Mackenzie Queenin of the Health Care Fraud Unit are prosecuting the case.
Moses Lake Man Who Detonated Homemade Bomb with Shrapnel Sentenced to Federal PrisonRead the Press Release
Spokane, Washington – On November 14, 2024, Chief United States District Judge Stanley A. Bastian sentenced Nicholas Andrew Anardi, age 33, of Moses Lake, Washington, to 60 months in federal prison for setting off an explosive device. Chief Judge Bastian also imposed 3 years of supervised release.
According to court documents and information presented at the sentencing hearing, When Anardi was in prison, someone robbed his garage. Anardi told investigators he, “had it out” for the person he thought committed the robbery, so he decided to build two explosive devices to, “scare them.”
Anardi used a model rocket engine for one of the bombs and an aerial mortar round in the other. He wrapped metal wire and pennies, that would act as homemade shrapnel, around the explosives, held in place by black electrical tape.
On September 11, 2021, Anardi rode his bike to an apartment where, the man who Anardi thought robbed him, lived. Anardi lit one bomb and thew it over the fence towards the apartment, but the bomb did not go off. Anardi then lit the second bomb and rolled it to the door of the apartment. The bomb exploded a few seconds later.
A resident inside a nearby apartment reported hearing a loud bang, and something hitting her door. The resident described the noise as being like someone hitting the door with a sledgehammer. She opened the door, saw the bomb, and called 911.
The Washington State Patrol Bomb squad (WSP) arrived and rendered the unexploded bomb safe. They collected several pieces of the exploded bomb, including one piece of the bomb that had been thrown 130 feet from the blast site. Investigators also found a coin and piece of metal wire embedded in the door of an apartment near where bomb exploded.
“Mr. Anardi built two deadly bombs that included homemade shrapnel and attempted to detonate them in an apartment complex full of people. Thankfully, no one was hurt by Mr. Anaradi’s reckless and dangerous behavior,” stated U.S. Attorney Vanessa Waldref. “My office is committed to working closely with our law enforcement partners to hold violent offenders accountable and build safer and stronger communities.”
“The danger posed by explosives such as the ones Mr. Anardi built and used cannot be overstated,” said ATF Seattle Special Agent in Charge Jonathan Blais. “Shrapnel from an explosion knows no difference between an intended target and an unintentional bystander, making this attempted attack that much more dangerous to the community. Because of this, we believe today’s prison sentence is well deserved.”
This case was investigated the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Grant County Sheriff’s Office. It was prosecuted by Timothy J. Ohms and Patrick J. Cashman.
2:24-cr-00019-SAB
Mitchell Man Sentenced to Five Years in Federal Prison for Assaulting a Federal Officer in the Cheyenne River ReservationRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Eric C. Schulte has sentenced a Mitchell, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer. The sentencing took place on November 12, 2024
Dustin Todd Long, age 38, was sentenced to five years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Long was indicted by a federal grand jury in September 2023. He pleaded guilty on August 14, 2024.
The conviction stems from Long pointing a handgun toward Cheyenne River Sioux Tribe Law Enforcement Services officers after refusing to obey their commands in Eagle Butte, South Dakota, on August 22, 2023. During the incident, Long waved the handgun around while walking toward Main Street, where he continued to ignore commands to drop the firearm. After Long was apprehended, law enforcement was able to determine that the firearm was unloaded.
This case was investigated by the FBI and the Cheyenne River Sioux Tribe Law Enforcement Services with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.
Long was immediately remanded to the custody of the U.S. Marshals Service.
Mid-Valley Hospital Agrees to Pay $15,000 Penalty and Implement Corrective Actions to Address Theft of Controlled SubstancesRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Mid-Valley Hospital and Clinic in Omak, Washington, agreed to pay a $15,000 Controlled Substances Act penalty and to institute corrective actions in regard to its pharmacy and controlled substances policy and procedures.
To protect the public, the Controlled Substances Act and its implementing regulations place legal responsibilities on medical professionals to ensure that controlled substances are prescribed, dispensed, and used for medically-appropriate purposes and in a safe manner. The responsibility for the proper prescribing and dispensing of controlled substances is upon the prescribing practitioner, but a corresponding responsibility rests with the pharmacist who fills the prescription to ensure that prescriptions are legitimate, safe, and medically appropriate. This responsibility includes reviewing controlled substance override reports to make sure controlled substances are being administered correctly.
In the settlement announced today, Mid-Valley Hospital admitted that beginning in late 2021 and ending in October 2023, nurse Eileen Lombardi regularly stole doses of the drug Dilaudid, which is a brand name for hydromorphone HC1, for her own personal use. Lombardi would take left over medications after administering a patient’s dose for her personal use, rather than wasting the remaining medication as required. Lombardi also entered overrides into automated medication dispensing systems to obtain additional doses of Dilaudid that she took for personal use.
Mid-Valley admitted that it had not enacted sufficient controls to catch the Lombardi’s theft of controlled substances. Specifically, while Mid-Valley pharmacy technicians regularly printed out controlled substance override reports for review by the Pharmacy Director, he routinely filed them away without reviewing them, which enabled Lombardi to continue diverting Dilaudid for two years. Mid-Valley has subsequently engaged an outside consultant to review its pharmacy and controlled substance policies and procedures.
The Washington Department of Health has entered an agreement with Lombardi under which she will be required to be enrolled in the Washington Healthcare Provider Services program for one to five years, during which time she will not have direct access to controlled substances. Additionally, the U.S. Attorney’s Office has entered into a criminal diversion agreement with Lombardi that matches the terms of the Washington Department of Health agreement, as well as a requirement that she does not seek a re-issue of her Drug Enforcement Administration (DEA) registration until no earlier than November 2025 and recognizing that reinstatement will be entirely at the discretion of the DEA.
“Nurses play a vital role in providing life-saving care. They have access to powerful drugs that can lead to crippling addiction. It is important that hospitals and pharmacies have proper checks and procedures in place to ensure these medications are accounted for and used appropriately and safely,” stated U.S. Attorney Waldref. “I am grateful that Mid-Valley Hospital quickly accepted responsibility and has taken steps to comply with its obligations going forward.”
“The Drug Enforcement Administration ensures that medical providers and facilities follow established laws and procedures while dispensing controlled substances”, said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “DEA holds medical professionals to a high standard to protect public safety and ensure accountability, and this settlement demonstrates DEA’s resolve to maintain these standards.”
The settlement agreement can be viewed here:
mid-valley_settlement_agreement_fully_executed.pdfThe settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington, DEA’s Seattle Field Division, Diversion Group and the Food and Drug Administration, Office of Criminal Investigation. Assistant United States Attorney Jeremy J. Kelley handled this matter on behalf of the United States.
Meridian Man Sentenced to 12 Years in Federal Prison for Federal Gun, Drug, and Obstruction OffensesRead the Press Release
BOISE – Bart Thomas Martin, 29, was sentenced to 12 years in federal prison for drug trafficking, possessing firearms in furtherance of drug trafficking, and obstruction of justice, U.S. Attorney Josh Hurwit announced today.
According to court records, Martin operated a drug trafficking operation where he received large quantities of drugs in the mail and further distributed those drugs in Idaho. The U.S. Postal Inspection Service arrested Martin in April 2024 in possession of approximately 900 grams of methamphetamine. Martin was booked into jail and later made a phone call to another individual requesting that individual remove evidence from his apartment. Investigators subsequently seized a safe from Martin’s apartment, which contained large quantities of methamphetamine and cocaine, as well as five firearms.
“This case is an excellent example of the successful cooperation between federal and state law enforcement here in Idaho,” U.S. Attorney Hurwit said. “Lengthy prison sentences are part and parcel of federal drug trafficking and firearm crimes. Our Project Safe Neighborhoods team does a great job making our streets safer.”
“Traffickers like Martin and their operations continue to wreak havoc on our communities,” said Inspector in Charge Anthony Galetti. “He will spend more than a decade behind bars because of the great work by Inspectors, Officers and Prosecutors across the state of Idaho. Partnerships like Project Safe Neighborhoods are what deliver these kind of results. We will continue to do the work day in and day out to serve our communities and bring these traffickers to justice”
“This case demonstrates the severe consequences that accompany drug trafficking and firearm-related crimes in Idaho. The Idaho State Police remains dedicated to working alongside federal partners to bring individuals to justice and to protect our communities from the dangers of illicit drugs. ISP is committed to continuing our efforts to curb drug trafficking and prevent the harm it inflicts on our state,” said Investigations Lieutenant Jack Catlin of the Idaho State Police.
Senior U.S. District Judge B. Lynn Winmill also ordered Martin to complete four years of supervised release upon completion of his prison sentence.
U.S. Attorney Hurwit commended the cooperative efforts of the U.S. Postal Inspection Service and the Idaho State Police for their work on this case. Assistant U.S. Attorney Francis Zebari prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
###
Memphis Man Sentenced in Connection with Scheme to Defraud COVID-19 Relief Program of over $700,000Read the Press Release
Memphis, TN – A Memphis man was recently sentenced to federal prison in connection with his scheme to defraud the Paycheck Protection Program (PPP), a federal program intended to help small businesses survive the COVID-19 pandemic. Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Herman Shaw, 44, used an accomplice to assist him in submitting a fraudulent PPP loan application in the name of “Freight Masters, Inc.,” his small trucking business, to a United States Small Business Administration (SBA) approved lending institution. The application contained numerous false statements, including false information about the number of persons Freight Masters employed. Shaw received $782,212 in loan proceeds to be used for approved purposes such as paying his purported employees. Shaw, instead, used the loan proceeds to pay gambling debts and other personal expenses and to provide his accomplice with a $262,000 kickback.
On August 2, 2024, Shaw pled guilty to a one-count information that charged him with wire fraud. United States District Court Judge Thomas L. Parker sentenced Shaw to 30 months in federal prison on November 6, 2024. He was also ordered to pay restitution to the United States Small Business Administration in the amount of $782,212. There is no parole in the federal system.
Acting U.S. Attorney Fondren stated: “Individuals preying on the generosity provided by the Paycheck Protection Program stole money from U.S. taxpayers for personal gain without regard to the economic losses felt around the country. This sentencing reflects the severity of thefts from COVID-19 relief programs.
I commend the federal law enforcement agents who uncovered this fraud and brought this defendant to justice. I would especially like to thank the SBA Office of Inspector General – Central Region, the United States Secret Service – Memphis Field Office, FDIC – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, the Gulf States Field Division of the Treasury Inspector General for Tax Administration (TIGTA), and the Pandemic Response Accountability Committee who jointly investigated this fraud in an effort to protect the integrity of the Paycheck Protection Program in this instance and COVID-19 relief programs in general.
My office will continue to work with our law enforcement partners to bring those who committed pandemic benefit fraud in the Western District of Tennessee to justice and use all appropriate tools to recover stolen pandemic relief funds.”
The case was investigated by the Small Business Administration, the U.S. Secret Service, TIGTA, the FDIC, the Federal Housing Finance Agency, and the Pandemic Response Accountability Committee.
Acting U.S. Attorney Fondren also thanked Assistant U.S. Attorney Tony Arvin, who prosecuted this case, as well as law enforcement partners for their roles in the investigation.
###
For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Mason City Man Sent to Federal Prison for Illegal Possession of FirearmRead the Press Release
Jason Keys, age 41, from Mason City, Iowa was sentenced today to more than six years in federal prison after a June 28, 2024, guilty plea to possession of a firearm by a prohibited person.
Evidence in the case revealed in January 2023, Keys was identified as a person distributing methamphetamine. Law enforcement utilized a confidential source to conduct a controlled purchase of methamphetamine, however, Keys had no methamphetamine to sell. The following day, Keys contacted the confidential source and advised that he had a revolver for sale. Law enforcement utilized the source to conduct a controlled buy of the firearm from Keys. Keys has a lengthy criminal history and was previously convicted of numerous burglaries and thefts, as well as multiple convictions for domestic abuse assault, assault, and controlled substance offenses.
Keys was sentenced in Sioux City by United States District Court Judge Leonard T. Strand to 78 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Keys is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Cerro Gordo County Sheriff’s Department, Iowa Division of Narcotics Enforcement and the Bureau of Alcohol, Tobacco and Firearms and was prosecuted by Assistant United States Attorney Ron Timmons.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-3016.
Follow us on X @USAO_NDIA.
Man Who Robbed Same Bank Twice Sent to Federal PrisonRead the Press Release
A man who was convicted of robbing a particular bank in 2014, was sentenced today to more than five years in federal prison for -- again -- robbing the same bank.
Jonathan Bird-Necklace, age 32, from Sioux City, Iowa, received the prison term after a June 26, 2024, guilty plea to bank robbery.
Evidence in the case revealed that Bird-Necklace was discharged from Iowa Department of Corrections on January 10, 2024, for the 2014 bank robbery. 13-days later, on January 23, 2024, Bird-Necklace entered a particular bank, passed a teller a note demanding $15,000, and threatening to shoot him if he raised the alarm. Despite wearing a disguise, masking his movements, and briefly escaping, officers of the Sioux City, Iowa Police Department solved the robbery and apprehended Bird-Necklace within just hours of the crime.
Beyond his repeated bank robberies, Bird-Necklace has repeatedly committed other serious offenses, and violated the rules of the Iowa Department of Corrections while he was incarcerated.
Bird-Necklace was sentenced in Sioux City by United States District Court Judge Leonard T. Strand to 63 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Bird-Necklace is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-4024.
Follow us on X @USAO_NDIA.
Man Who Carjacked Delivery Driver is Sentenced to Seven Years in PrisonRead the Press Release
WASHINGTON – Dennis Vanison, 31, of Oxon Hill, Maryland, was sentenced today, to 84 months in prison for his participation in the May 2023 carjacking of a delivery driver, and carrying a pistol without a license, announced U.S. Attorney Matthew M. Graves, Special Agent in Charge Anthony A. Spotswood, of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Chief Pamela A. Smith, of the Metropolitan Police Department.
Vanison pleaded guilty to one count of carjacking and one count of carrying a pistol without a license, in the Superior Court for the District of Columbia, on August 13, 2024. Judge Robert A. Salerno also sentenced Vanison to three years of supervised release following his term of imprisonment.
According to the government’s evidence, Vanison and an unidentified accomplice carjacked a food delivery driver on May 2, 2023. The victim had just dropped off a delivery in the 2400 block of Wagner Street Southeast when Vanison’s accomplice stole items from the victim’s car. When the victim went to retrieve his belongings, Vanison and his accomplice attacked the victim and attempted to take his phone. During the attack, the accomplice produced a gun and pointed it at the victim, and at Vanison’s direction, snatched the victim’s keys from his pocket. Vanison and his accomplice then fled the scene, driving away in their car and the victim’s car, respectively.
The next morning, members of the D.C. Fire and Emergency Medical Services Department encountered Vanison inside an SUV several feet from the victim’s car, which was parked and idling in an alley. Vanison’s cellphone and keychain were found inside the victim’s car, and a fully loaded pistol was found at Vanison’s feet inside the SUV. Vanison was apprehended on May 3, 2023, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Spotswood, and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. They also acknowledged those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Omeed A. Assefi; Investigative Analyst Stephen Jones; Supervisory Paralegal Specialist Renee Prather; and Paralegal Specialist Marcella Trader. Finally, they commended the work of Assistant U.S. Attorneys John Parron and Daniel Bromwich, who investigated and prosecuted the case.
Man Tied to Mexican Drug Cartel Sentenced 11 Years in Federal Prison for Distribution of Drugs in Sioux CityRead the Press Release
A San Diego man who was part of a drug trafficking organization was sentenced November 14, 2024 to 11 years in federal prison.
Adrian Ibarra-Manzo, age 29, from San Diego, California, received the prison term after a June 26, 2024, guilty plea to 1 count of Conspiracy to Distribute Methamphetamine Possession With Intent to Distribute Methamphetamine.
Ibarra-Manzo’s co-conspirator, Ramon Serrano, 31, of San Bernardino, California, is set to be sentenced on December 12, 2024, for 1 count of Conspiracy to Distribute Methamphetamine.
Evidence in the case revealed Ibarra-Manzo was part of a conspiracy based in Mexico and California that was responsible for distributing approximately 100 pounds of methamphetamine in the Sioux City area.
Ibarra-Manzo was sentenced in Sioux City by United States District Court Judge Leonard T. Strand to 132 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Ibarra-Manzo is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the DEA Tri-State Drug Task Force and the Sioux City Police Department and was prosecuted by Assistant United States Attorney Ron Timmons.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-4022.
Follow us on X @USAO_NDIA.
Man Pleads Guilty to Sexually Abusing Senior CitizenRead the Press Release
WASHINGTON – Darnell Peoples, 22, of Washington, D.C., pleaded guilty today, to orally raping a senior citizen at her home, in Southeast Washington earlier this year, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Peoples pleaded guilty in the Superior Court of the District of Columbia to a charge of first-degree sexual abuse. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon twenty-year prison term. Following his prison term, Peoples will be required to complete a term of supervised release and register as a sex offender for the remainder of his lifetime.
The Honorable Anthony C. Epstein scheduled sentencing for February 10, 2025.
According to a proffer of facts submitted at the plea hearing, on June 11, 2024, the victim was working in her yard. Peoples approached the victim from behind, displayed a knife, and told the victim to get on her knees. When the victim informed Peoples that she could not get on her knees, Peoples grabbed her and threw her to the ground. Peoples then pulled down his pants and exposed his penis. He pulled the victim’s head toward his penis and told the victim, “Shut up, shut up, put it in your mouth.” While the victim was screaming and shouting “No,” Peoples forcefully inserted his penis into the victim’s mouth multiple times.
The defendant was arrested on the same day and has been in custody ever since.
The case is being investigated by the Metropolitan Police Department.
The case is being prosecuted by Assistant U.S. Attorney Kristin Sourbeer of the U.S. Attorney’s Office for the District of Columbia.
Man Known as “the Monkey Whisperer” and His Brother Indicted for the Illegal Trafficking of MonkeysRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces the return by a grand jury of an indictment charging Jimmy Wayne Hammonds a/k/a “The Monkey Whisperer,” (61, Parrish) and Johnny D-Lane Hammonds (59, St. Petersburg), with conspiracy to violate the Lacey Act and Lacey Act trafficking. If convicted on all counts, Jimmy Hammonds and Johnny Hammonds each face a maximum penalty of 10 years in federal prison.
According to the indictment, the defendants conspired with each other to sell wildlife, and transported and sold marmosets, in violation of federal and state laws.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Fish and Wildlife and Florida Fish and Wildlife Conservation Commission. It will be prosecuted by Assistant United States Attorneys Erin Claire Favorit and Abigail K. King.
Macy Man Sentenced for Aggravated Sexual Abuse with ChildrenRead the Press Release
United States Attorney Susan Lehr announced that Jason Walker, age 54, of Macy, Nebraska, was sentenced on November 15, 2024, in federal court in Omaha, Nebraska, for aggravated sexual abuse with children in Indian Country. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Walker to 360 months’ imprisonment. There is no parole in the federal system. After Walker’s release from prison, he will begin a 7-year term of supervised release.
In February 2024, a minor victim disclosed to a trusted adult that Walker had inappropriately touched the minor victim on multiple occasions. Following a forensic interview during which the minor victim disclosed the extensive nature of Walker’s sexual abuse, the Federal Bureau of Investigation (FBI) began an investigation into Walker’s conduct which resulted in Walker admitting to sexually abusing the minor victim on more than 50 occasions over the course of a roughly two-year period.
Before pronouncing Walker’s 30-year sentence, Chief U.S. District Court Judge Rossiter described Walker’s criminal conduct, saying, “I think the word ‘horrific’ is appropriate, and perhaps not even enough here.”
This case was prosecuted in federal court because the offense was a felony and occurred on the Omaha Nation Indian Reservation in Nebraska.
This case was investigated by the Federal Bureau of Investigation.
Los Angeles Man Pleads Guilty to Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Daniel Hooker, 35, of Los Angeles, pleaded guilty today to conspiracy to commit money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from August 2023 through March 2024, Hooker and three co‑conspirators conducted multiple financial transactions involving funds they believed to be proceeds of cocaine trafficking. Their belief as to the nature of the funds was based on representations of an individual working at the direction of law enforcement. On two different occasions in 2023 and 2024, Hooker met the individual in a parking lot in Rancho Cordova and accepted a total of $100,000 in cash to be laundered. After those meetings in Rancho Cordova, Hooker wired funds from a bank account he controlled into a bank account designated by the individual in an effort to complete the laundering. In total, the conspirators received approximately $940,000 in purported drug trafficking proceeds. Of that amount, the conspirators laundered approximately $811,000.
This case is the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew Thuesen and Whitnee Goins are prosecuting the case.
U.S. District Judge Dena Coggins is scheduled to sentence Hooker on Feb. 21, 2025. Hooker faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Lockport man pleads guilty to distributing child pornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Gerard Dzierzanowski, 52, of Lockport, NY, pleaded guilty before U.S. Magistrate Judge Jeremiah J. McCarthy to distribution of child pornography, which carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Franz M. Wright, who is handling the case, stated that in February 2023, Dzierzanowski began communicating with who he believed was a 13-year-old girl using the Whisper Messenger application. The communications later transitioned to Kik Messenger, another online application. Dzierzanowski thought he was communicating with an actual 13-year-old girl, when in reality, he was communicating with an undercover law enforcement officer, who was involved in an investigation aimed at identifying users of Whisper and Kik attempting to engage in criminal sexual activity with children. The undercover officer repeatedly advised Dzierzanowski during the Kik chat that she was 13 years old. Dzierzanowski sent multiple images that meet the definition of child pornography. Dzierzanowski also sent videos that depicted a prepubescent female child engaged in sexually explicit behavior with an adult male. During the online conversations, Dzierzanowski requested the 13-year-old girl engage in sexually explicit behavior with him. The defendant also sent a “selfie” of himself, and a sexually explicit video of himself. In August 2023, a search warrant was executed at Dzierzanowski’s residence, during which multiple digital items, which contained images and videos depicting children engaged in sexually explicit conduct, were seized.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Erin Keegan.
Sentencing will be scheduled at a later date.
# # # #
Lexington Man Convicted of Armed Drug Trafficking and Possession of Firearm by a Convicted FelonRead the Press Release
LEXINGTON, Ky. – A Lexington man, Tevye Tyshear Shelton Jones, 26, was found guilty on Thursday, by a federal jury sitting in Lexington, of possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute methamphetamine and cocaine, possession of a firearm in furtherance of drug trafficking, and felon in possession of a firearm. He was found guilty following a two-day trial.
According to the evidence at trial, on November 30, 2023, law enforcement attempted to conduct a traffic stop on a vehicle that was registered to someone with a suspended driver’s license. The vehicle briefly stopped before accelerating through a red light and eventually colliding with a light pole. After the collision, the vehicle’s occupants began kicking the vehicle’s windshield to exit, and two people exited the vehicle and fled. Jones was the third occupant of the vehicle; and as he was attempting to exit the vehicle, a loaded gun fell onto the ground. He attempted to pick the gun up but was apprehended.
A search of Jones’ person revealed four cell phones, $350 in cash, and a fanny pack with a loaded, extended firearm magazine, and 57.8 grams of fentanyl (of which at least 32.642 grams also contained methamphetamine and cocaine. A search of the vehicle revealed a stolen pistol; and when the two occupants that originally fled were apprehended, a third firearm was recovered. Jones possessed the controlled substances with intent to distribute them and he possessed the firearm in furtherance of his drug trafficking.
Evidence further showed that Jones had prior felony convictions, which prohibited him from possessing a firearm. Jones had prior convictions for robbery in the second degree, from Fayette Circuit Court in June 2017, and possession of a firearm by a convicted felon, from the U.S. District Court Eastern District of Kentucky in February 2020.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Division; and Sheriff Kathy Witt, Fayette County Sheriff’s Office, jointly announced the jury’s verdict.
The investigation was conducted by the FBI and Fayette County Sheriff’s Office. Assistant U.S. Attorneys Brittany Baker and Todd Bradbury are representing the United States in the case.
Jones is scheduled to appear for sentencing on February 27, 2025. He faces up to life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
— END —
Leader of Sampson County Drug Trafficking Organization Sentenced to 15 YearsRead the Press Release
RALEIGH, N.C. – Seth Allen Hall, 29, was sentenced to 190 months in prison for his involvement in the trafficking of methamphetamine and fentanyl after fleeing from law enforcement on four separate occasions. On August 16, 2024, Hall pled guilty to conspiracy to distribute and possession with intent to distribute 500 grams or more of a substance containing methamphetamine, and a quantity of fentanyl; possession with the intent to distribute 5 grams or more of methamphetamine, and possession of a firearm by a convicted felon.
“This defendant led three different Sheriff’s Offices on reckless chases that put innocent drivers at risk,” said U.S. Attorney Michael F. Easley, Jr. “We won’t stand for drug traffickers who consistently put our law enforcement officers in danger.”
“This sentence reflects the destructive impact on the community caused by this defendant,” said Special Agent in Charge Cardell T. Morant who leads Homeland Security Investigations Charlotte, covering North and South Carolina. “HSI is committed to holding those accountable who distribute their poison into our communities.”
“The Sampson County Sheriff's Office remains committed to eradicating drugs in our community. We are proud of our continued relationship with our federal partners. These partnerships have proven to be a valuable asset in investigations and justice,” said Sampson County Sheriff Jimmy Thornton.
According to court documents and other information presented in court, Hall has been supplying kilogram quantities of methamphetamine and fentanyl for several years. In December 2022, Hall fled from law enforcement at speeds exceeding 130mph before crashing and being apprehended by the Harnett County Sheriff’s Office (HCSO). Following the crash, law enforcement seized methamphetamine and fentanyl.
In June 2023, HCSO deputies approached a parked vehicle that Hall was a passenger in. When law enforcement attempted to remove Hall from the vehicle, he climbed into the driver’s seat and fled down the highway.
On July 14, 2023, the Sampson County Sheriff’s Office (SCSO) observed Hall driving a vehicle and pulling a trailer, which was fishtailing on the highway. The SCSO deputy attempted to stop Hall, but Hall fled in the vehicle and then fled on foot after jackknifing the vehicle in the middle of the road. Law enforcement located a handgun on the ground near where Hall was ultimately arrested. Inside his vehicle, deputies located digital scales, syringes, drug paraphernalia, and methamphetamine.
Roughly fifteen days later, the Onslow County Sherriff’s Office (OCSO) attempted to make a traffic stop on a vehicle driven by Hall. He refused to comply and drove over 130mph before striking two other vehicles, jumping the curb, crashing, and running away. He was quickly apprehended. A search of his person and vehicle revealed cash, over 500 grams of methamphetamine, 22 grams of fentanyl and xylazine, cocaine, and multiple cell phones.
Hall has prior felony convictions for possession of heroin in 2019 and 2020, as well as attempted trafficking by transportation and attempted trafficking by possession in 2019.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. HSI, the SCSO, HCSO, OCSO, and the ATF investigated the case and Assistant U.S. Attorney Casey Peaden prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-0041.
Lafayette Area Man Sentenced to Federal Prison for Production of Child PornographyRead the Press Release
LAFAYETTE, La. – Matthew Matherne, 46, of Broussard, Louisiana, was sentenced today in federal court for production of child pornography, announced United States Attorney Brandon B. Brown. United States District Judge Robert L. Summerhays sentenced Matherne to 210 months (17 years, 6 months) in prison, followed by a lifetime of supervised release.
According to information presented in court, in late November of 2023, Matherne met a 15 year old minor female from another state online and began communicating with her. In December of 2023, Matherne traveled from the Lafayette area to the state where the minor female resided and picked her up and drove her back to his residence in the Lafayette area. While there, Matherne began having sex with the minor female. He also took images of the child engaging in sexual activity with him, as well as numerous images of the child in which she was naked or partially naked. After the minor female had been in Matherne’s home for several weeks, she contacted her mother and told her where she was. The mother then contacted the Lafayette Police Department. The victim was found and cooperated with law enforcement.
Officers with the Lafayette Police Department obtained a search warrant on Matherne’s residence. Upon execution of the search warrant, officers found and seized Matherne’s cell phone which contained the images of the minor female. An indictment was returned charging Matherne and he pleaded guilty to one count of production of child pornography on May 30, 2024, and admitted that he did in fact use his cell phone to produce the sexually explicit images of the minor female.
The case was investigated by the Federal Bureau of Investigation and Lafayette Police Department and prosecuted by Assistant United States Attorney J. Luke Walker.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
# # #
Kennedy Street Drug Gang Member Sentenced to 220 Months for Trafficking Fentanyl While ArmedRead the Press Release
WASHINGTON – David Penn, 31, of Washington D.C. and a member of the violent Kennedy Street Crew (KDY), was sentenced today to 220 months in federal prison for his role in a massive drug trafficking organization that operated open-air markets in Northwest Washington D.C. where he dealt copious amounts of fentanyl and cocaine base and sold firearms, including an assault rifle.
The sentence was announced by U.S. Attorney Matthew M. Graves, FBI Acting Special Agent in Charge David Geist of the Washington Field Office Criminal and Cyber Division, DEA Special Agent in Charge Jarod Forget of the Washington Division, ATF Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms, and Explosives - Washington Division, and Special Agent in Charge Kareem Carter of the Internal Revenue Service – Criminal Investigation Washington D.C. Field Office.
Penn, aka “Turtle,” pleaded guilty on June 27, 2024, to conspiracy to distribute 40 grams or more of fentanyl and to two counts of possessing a firearm in furtherance of a drug trafficking crime. In addition to the prison term, U.S. District Judge Beryl A. Howell ordered Penn to serve five years of supervised release.
According to court documents, KDY members operated open-air drug markets on an 11-block stretch of Kennedy Street in Northwest Washington, D.C., as well as surrounding streets. Like many drug trafficking organizations (DTOs), KDY armed itself with fire power to facilitate the drug trade and defend its territory from rival crews.
For his part, Penn was a bulk fentanyl supplier who trafficked narcotics and firearms in the Kennedy Street Neighborhood while armed with guns. During a span of five months, from December 2022 to May 2023, Penn conducted 17 controlled buys with undercover officers selling a total of about 257.73 grams of fentanyl, 11.15 grams of cocaine base, and semi-automatic firearms that included a Draco and an AR-15 assault rifle.
On February 3, 2023, patrol officers in the 900 block of Kennedy Street NW stopped Penn’s vehicle wherein they found about 44 grams of fentanyl, 11 grams of cocaine base, 1.4 kilograms of marijuana, digital scales, one 22-round extended magazine with 22 rounds of ammunition; and one loaded machine gun.
On February 23, 2023, wholly undeterred by his recent arrest, Penn agreed to sell an undercover officer a privately manufactured AR-15 assault rifle for $3,800.
This investigation was conducted under the auspices of the Organized Crime Drug Enforcement Task Force. 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 case was investigated by the Metropolitan Police Department, the DEA’s Washington Division, ATF’s Washington Field Division, with assistance from FBI’s Washington Field Office, and the IRS-Criminal Investigation Washington, D.C. Office.
The matter is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey and Sitara Witanachchi, of the of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia.
DEFENDANTS
NAME
AGE
CHARGES
Kenneth Ademola Olugbenga27Pleaded Guilty to Conspiracy to Distribute and Possess with the Intent to Distribute 500 Grams or more of Cocaine Base, and a Detectable Amount of Marijuana; and Possessing a Firearm in Furtherance of a Drug Trafficking Offense.Khali Ahmed Brown, aka “Migo Lee”22Pleaded Guilty to Conspiracy to Distribute 100 Kilograms or More of Marijuana and 400 Grams or More of Fentanyl and Oxycodone; Possession of a Firearm in Furtherance of a Drug Trafficking Offense; and Assault with a Dangerous Weapon.Miasiah Jamal Brown, aka “Michael Jamal Crawford”21Sentenced August 16, 2024, to Five Years for Possessing a Firearm in Furtherance of a Drug Trafficking Crime.Tristan Miles Ware, aka “Greedy”23Pleaded Guilty to Conspiracy to Distribute 100 Kilos of Marijuana; and Possessing a Firearm During a Drug Trafficking Crime.Herman Eric-Bibmin Signou, aka “Herman Signour”23Sentenced March 22, 2024, to 40 Months for Conspiracy to Distribute and Possess with Intent to Distribute 100 Kilograms of More of MarijuanaCameron Xavier Reid26Sentenced May 31, 2024, to Five Years for Conspiracy to Distribute 100 Kilograms of More of Marijuana.Aaron DeAndre Mercer, aka “Curby,”27Sentenced September 13, 2024, to 120 Months for Conspiracy to Distribute 400 Grams or More of Fentanyl, Marijuana, and Cocaine Base.David Penn, aka “Turtle”31Sentenced November 15, 2024, to 220 Months for Conspiracy to Distribute Marijuana, 40 Grams or Fentanyl, and a Mixture of Cocaine Base; and Two Counts of Possessing a Firearm in Furtherance of a Drug Trafficking Offense.Ronald Lynn Dorsey, aka “Ron G” and “HBGeezy”29Sentenced September 13, 2024, to 30 Months for Conspiracy to Commit Money Laundering.Antonio Reginald Bailey, aka “Boy Boy,” and “Fellow King”22Sentenced February 8, 2024, to 24 Months for Receiving a Firearm While Under Indictment.Anthony Trayon Bailey, aka “Fat Ant,” and “Bizzle”27Sentenced April 26, 2024, to 15 months for Conspiracy to Distribute 100 Kilograms or More of Marijuana, 400 Grams or More of Fentanyl, and a Mixture and Substance Containing a Detectable Amount of Cocaine Base.Angel Enrique Suncar, aka “Coqui”29Pleaded Guilty to Possessing a Firearm During a Drug Trafficking Crime.Warren Lawrence Fields, III, aka B-Dub26Sentenced May 16, 2024 to Five Years for Possessing a Firearm During a Drug Trafficking Offense and for Conspiracy to Commit Money Laundering.Adebayo Adediji Green30Sentenced August 16, 2024, to Five Years for Possessing a Firearm in Furtherance of a Drug Trafficking Crime.Defendant Cameron Reid is from Falmouth, VA; all remaining defendants are from Washington, D.C.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Secures Agreement with Staffing Company to Resolve Immigration-Related Discrimination ClaimRead the Press Release
The Justice Department announced today that it secured a settlement agreement with Key Fortune Inc., doing business as Express Employment Professionals (Express), a staffing company in Rancho Cucamonga, California. The agreement resolves the department’s determination that Express discriminated against a worker because of her immigration status by refusing to continue to honor her valid document that showed her permission to work in the United States. The agreement also resolves the department’s determination that Express refused to place her on an assignment until she presented a specific document showing her future permission to work.
“It is unlawful for employers to require a specific document, or to reject a valid document, showing someone’s permission to work because of their immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department is committed to protecting workers from immigration-related discrimination in the hiring process and eliminating unnecessary barriers to employment.”
After conducting an investigation based on a complaint, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) concluded that Express unlawfully discriminated against a worker based on her immigration status when it rejected the worker’s Employment Authorization Document (EAD), which was still valid and not set to expire for an additional two months. Express then told the worker that it would not place her on an assignment until she provided a new EAD. Under the anti-discrimination provision of the Immigration and Nationality Act (INA), employers are not permitted to request specific documentation or reject valid documentation showing someone’s permission to work because of their immigration status.
Under the terms of the settlement, Express will pay a civil penalty to the United States and pay backpay to the affected worker. The agreement also requires the company to train its personnel on the INA’s anti-discrimination requirements, review its employment policies and be subject to departmental monitoring.
IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; or retaliation and intimidation.
IER’s website has information about how employers can avoid unlawful discrimination when verifying a worker’s permission to work. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected]; or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Jury convicts Lenexa man of federal loan fraudRead the Press Release
KANSAS CITY, KAN. – A federal jury convicted a Kansas businessman of submitting false information on applications to secure loans from the Small Business Administration (SBA). The SBA is a federal government agency that provides support to entrepreneurs and small businesses.
According to court documents and evidence presented at trial, Scott W. Anderson, 53, of Lenexa was found guilty of four counts of false statement in a loan application, four counts of wire fraud, and six counts of aggravated identity theft.
Anderson was part owner of Riley Drive, a company that operated restaurants in Kansas and Iowa. In 2018 and 2019, Anderson applied for separate loans from SBA on behalf of Riley Drive. At the time Anderson submitted the applications the company was a defendant in civil lawsuits. Anderson falsely responded “no” to questions on the loan applications concerning whether he or companies he controlled were involved in any legal actions.
The SBA approved a loan to Riley Drive in March 2018 for $3,600,000. The company defaulted in June 2019, causing a loss to the SBA of $2,173,766.
Additionally, the SBA approved a loan in April 2019 for $700,000. The company defaulted on the loan in June 2019, causing a loss of $658,141.
The Small Business Administration – Office of Inspector General (SBA-OIG) and the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG) are investigating the case.
Assistant U.S. Attorney Chris Oakley is prosecuting the case.
###
Jury Found Ohio Man Guilty of Coercing and Enticing a Minor ChildRead the Press Release
TULSA, Okla. – A federal jury convicted Thomas Edward Petro, 32, of Ashtabula, Ohio, for Coercion and Enticement of a Minor.
The evidence presented at trial showed that Petro shared sexually explicit messages, voice recordings, pictures, and videos of himself with a 13-year-old minor child. The evidence further showed that Petro solicited the minor to take sexually explicit photos of their body and send the photos to him.
The inappropriate relationship was discovered when the minor child told a friend. That friend told the school resource officer, who immediately contacted the principal and reported the incident to the FBI.
When the lead FBI agent testified, he confirmed that the minor child did disclose that they were only 13 years old. After going over all of the sexually explicit evidence in front of the jury, the agent also confirmed that Petro never asked the minor child to stop engaging in sexual activity.
The FBI and Adair Police Department investigated the case, and Assistant U.S. Attorneys Kate Brandon and Scott Dunn prosecuted it.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
International Fugitive Home Health Care Owner Sentenced for Fraudulently Billing MedicareRead the Press Release
A Michigan home health care company owner was sentenced yesterday to three years and five months in prison for his role in a health care fraud conspiracy that resulted in almost $7.9 million in false and fraudulent claims for home health care services paid by Medicare Part A.
According to court documents, Muhammad Zafar, 53, of Wayne County, owned and operated a home health care business in Michigan. Together with three doctors and two other home health care company owners, Zafar offered kickbacks, bribes, and other inducements to beneficiary recruiters in exchange for Medicare beneficiary information. Zafar and his co-conspirators used this information to bill Medicare for services that were medically unnecessary and not provided. Zafar pleaded guilty to submitting approximately $393,500 in claims to Medicare from his home health care company for services that were medically unnecessary, ineligible for Medicare reimbursement, and not provided as represented.
On the same day that Zafar appeared in court for his initial appearance on June 17, 2015, he violated his court-issued bond, crossed the international border into Canada, and shortly thereafter flew to Pakistan. Zafar remained an international fugitive for approximately seven and a half years before returning to the United States to face the charges against him.
On May 29, Zafar pleaded guilty to conspiracy to commit health care fraud and wire fraud.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office made the announcement.
HHS-OIG and the FBI Detroit Field Office investigated the case.
Trial Attorney Jeffrey A. Crapko of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Nov. 12 was:
Sebastian Kessamer Gilder Jr., 26, of Phoenix, Arizona, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Gilder faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Gilder was released pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force conducted the investigation. PACER case reference.24-74.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Nov. 12 was:
Franklin Troy Caplette, 40, of Box Elder, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Caplette faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Caplette was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Hill County Sheriff’s Office, Rocky Boy’s Police Department and U.S. Probation Office conducted the investigation. PACER case reference. 24-91.
Briana Noel Moore, 30, of Great Falls, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Moore faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Moore was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Cascade County Sheriff’s Office and Montana Probation and Parole conducted the investigation. PACER case reference. 24-96.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Nov. 13 was:
Mallory Nehemiah Brown, 43, of Auburn, Washington, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Brown faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Brown was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Libby Police Department, Lincoln County Sheriff’s Office and Montana Probation and Parole conducted the investigation. PACER case reference. 24-49.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX