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Friday 20 September 2024
Twelve Defendants, Including Members of International Criminal Gangs, Indicted for Drug Trafficking Conspiracy in South FloridaRead the Press Release
MIAMI - An indictment has been unsealed charging 12 defendants, including members of international criminal gangs MS-13, Sur-13, and the Mexican Mafia, with drug offenses in and around Broward and Miami-Dade Counties in the Southern District of Florida.
The twelve-count indictment charges Edgar Garcia-Velasquez, a/k/a “Diablo,” 34, a citizen of Honduras, Francisco Rangel, a/k/a “Casper,” 41, of Calif., Gabriela Rodriguez-Carrillo, 42, of Calif., Luis Portillo, a/k/a “Shadow,” a/k/a “Sombra,” 35, of Miami, Jose Puga, a/k/a “Stranger,” 45, of Calif., Malinda Martinez, 42, of Fort Myers, Fla., Karina Martinez-Vazquez, 34, of Miami, Rafael Gutierrez, a/k/a “Rafy,” 28, of Miami, Jose Hernandez, a/k/a “Blue Demon,” a/k/a “Labomba3,” 39, of Belle Glade, Fla., Loupe Loredo, a/k/a “L3g3nd,” 39, of Lake Wales, Fla., Felipe Gonzalez, a/k/a “Wicked,” 41, of Calif., and Hugo Cruz, a/k/a “Houdini,” 33, of LaBelle, Fla., with conspiring with each other, their co-defendants, and others to possess with the intent to distribute 50 grams or more of methamphetamine in Broward and Miami-Dade Counties.
The indictment charges Garcia-Velasquez, Rodriguez-Carrillo, Puga, Gonzalez, and Martinez Vazquez, with conspiring with each other, their co-defendants, and others to possess with the intent to distribute a mixture and substance containing a detectable amount of fentanyl in Broward and Miami-Dade Counties.
Garcia-Velazquez, Rodriguez-Carrillo, Martinez, Portillo, Gutierrez, Puga, Loredo, and Martinez Vazquez face additional charges for possession with intent to distribute methamphetamine in Broward and Miami-Dade Counties.
Arrests of the defendants began on Sept. 12, at various locations, and thereafter they began making their initial appearances in the Southern District of Florida. If convicted, all of the defendants face up to life imprisonment.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami; Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division; Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division; and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) made the announcement.
HSI Fort Lauderdale, FBI Miami, ATF Fort Lauderdale, DEA Miami, and BSO investigated this case with assistance from HSI Los Angeles, HSI Fort Myers, FBI Los Angeles, and FBI Fort Myers. Assistant U.S. Attorney Bertila Fernandez is prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
An indictment contains allegations, and all defendants are presumed innocent until proven guilty in a court of law.
You may find a copy of this press release (and any update) on the website of the United States Attorney’s Office for the Southern District of Florida at https://www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at https://www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-60174.
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Three Plead Guilty to Wire Fraud in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – Haji Osman Salad, Sharmarke Issa, and Khadra Abdi pleaded guilty to their roles in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced United States Attorney Andrew M. Luger.
According to court documents, Salad, 34, the owner and operator of Haji’s Kitchen LLC, enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. Salad and his co-conspirators, including Issa, 42, and Abdi, 42, opened sites across the state of Minnesota, as well as multiple shell companies, which were used to facilitate the fraud scheme.
Between June 2020 through 2022, Salad falsely claimed that Haji’s Kitchen was a food vendor for more than 15 million meals to various Federal Child Nutrition Program sites in Minnesota. Co-defendants, Issa and Kawsar Jama were among the largest recipients of purported food from Salad. For example, in November 2021, Salad created fraudulent food invoices falsely claiming that he supplied Kawsar Jama’s Pelican Rapids site, a small town in west-central Minnesota with a population of approximately 2,500 people, with $293,300 worth of food for 140,000 meals and snacks. In total, Salad fraudulently received approximately $11,483,827 in Federal Child Nutrition Program funds, which he spent on real estate and luxury vehicles.
According to court documents, Issa, the principal of Minnesota’s Somali Community and Wacan Restaurant LLC, fraudulently received Federal Child Nutrition Program funds under the sponsorship of Sponsor A and Feeding Our Future, respectively. As part of the scheme, Issa used fraudulent records and food invoices to falsely claim his sites served at least 2.3 million meals to children. Issa also operated other entities such as ANS Projects LLC and Bubah Baraka Properties LLC which he used to launder proceeds of the fraud scheme to purchase assets, primarily real estate, which had nothing to do with feeding children. For example, Issa acquired, among other properties, a $785,000 private residence for himself located in Edina. In total, Issa fraudulently received approximately $3,586,231 in Federal Child Nutrition Program funds.
According to court documents, Abdi, was the principal of Shafi’i Tutoring & Homework Help Center, which was registered as a meal site under the sponsorship of Feeding Our Future. Between April 2020 and December 2021, Abdi fraudulently claimed entitlement to $3,479,191.92 in Federal Child Nutrition Program funds. However, relatively little of this money was used by Abdi to purchase food.
Salad, Issa, and Abdi each pleaded guilty to wire fraud this week in U.S. District Court before Judge Nancy E. Brasel. Sentencing hearings will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, and Harry M. Jacobs are prosecuting the case.
Three Men Sentenced to Federal Prison for Roles in Fatal Fentanyl Overdose of Southern Oregon TeenagerRead the Press Release
MEDFORD, Ore.—Three Oregon men were sentenced to federal prison Thursday for distributing fentanyl that caused the overdose death of a Medford teenager.
Hunter Fenstermaker, 23, a Medford resident, was sentenced to 60 months in federal prison and six years’ supervised release; Napoleon Gomez, 22, also of Medford, was sentenced to 87 months in federal prison and six years’ supervised release; and Conner Lee Francis, 27, of Portland, Oregon, was sentenced to 73 months in federal prison and four years’ supervised release. All three were also ordered to pay restitution to the victim’s family.
According to court documents, on September 7, 2021, officers from the Medford Police Department responded to a report of an overdose death of a local 17-year-old high school student. Investigators soon learned the teenager had taken a counterfeit Percocet pill containing fentanyl, and, within days, identified Fenstermaker, Gomez and Francis as the teen’s first-, second- and third-level drug suppliers.
On February 3, 2022, a federal grand jury in Medford returned a five-count indictment charging Fenstermaker and Gomez with distributing fentanyl, and Francis with possessing fentanyl with the intent to distribute and possessing a firearm in furtherance of a drug trafficking crime.
On April 9 and June 17, 2024, respectively, Fenstermaker and Gomez pleaded guilty to distributing fentanyl to a person under twenty-one. On June 24, 2024, Francis pleaded guilty to possessing fentanyl with the intent to distribute.
On May 14, 2024, a fourth individual—John Rocha, 31, of Medford—was sentenced to 70 months in federal prison for his role in the Medford teen’s overdose death. Rocha was the teen’s fourth-level drug supplier.
This case was investigated by the FBI, the Medford Police Department, and the Medford Area Drug and Gang Enforcement Team (MADGE). It was prosecuted by Marco A. Boccato, Assistant U.S. Attorney for the District of Oregon.
MADGE is a multi-jurisdictional narcotics task force that identifies, disrupts, and dismantles local, multi-state, and international drug trafficking organizations using an intelligence-driven, multi-agency prosecutor-supported approach. MADGE is supported by the Oregon-Idaho High-Intensity Drug Trafficking Area (HIDTA) and is composed of members from the Medford Police Department, the Jackson County Sheriff and District Attorney’s Offices, the Jackson County Community Corrections, FBI, and Homeland Security Investigations (HSI).
The Oregon-Idaho HIDTA program is an Office of National Drug Control Policy (ONDCP) sponsored counterdrug grant program that coordinates with and provides funding resources to multi-agency drug enforcement initiatives.
Thirteen Members of Drug Trafficking Organization Plead Guilty to Federal Drug CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that thirteen members of a drug trafficking organization pleaded guilty to drug conspiracy and other federal drug crimes.
Heath Lloyd Taylor, age 45, Aaron Guy Key, age 46, Mallory Nicole Laird, age 36, Terri Angela Stroud, age 52, Kandi Anne Hankins, age 43, Travis Austin Powers, age 37, Tracie Ann Sells, age 54, Jeremy Paul Newman, age 47, each pleaded guilty to Drug Conspiracy.
Cody Wade Reece, age 33, and Whitney Marie Granite, age 36, pleaded guilty to Possession with Intent to Distribute Fentanyl.
Heather Leigh Brown, age 33, pleaded guilty to Possession with Intent to Distribute Methamphetamine and Possession with Intent to Distribute Fentanyl.
Taylor Dain Parnell Caldwell, age 34, and Randi Shawn Gann, age 34, pleaded guilty to Possession with Intent to Distribute Methamphetamine.
The Indictment alleged that beginning in or about August 2022 and continuing until on or about November 15, 2023, in the Eastern District of Oklahoma and elsewhere, the defendants willfully and knowingly combined, conspired, confederated, and agreed together, and with others known and unknown to the Grand Jury, to commit offenses against the United Sates, namely the possession with intent to distribute and distribution of methamphetamine and fentanyl.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The joint investigation was led by the Drug Enforcement Administration, working in cooperation with the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma Department of Corrections Office of the Inspector General, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, and the Internal Revenue Service Criminal Investigation.
Additionally, several law enforcement agencies contributed at various stages of the investigation, including the Bureau of Indian Affairs, the District 16 Drug and Violent Crime Taskforce, the District 18 Drug and Violent Crime Taskforce, the Poteau Police Department, the Spiro Police Department, the Choctaw Nation Lighthorse Police, the Seminole Police Department, the Pocola Police Department, the Pittsburg County Sheriff’s Office, the LeFlore County Sheriff’s Office, the Sequoyah County Sheriff’s Office, and the United States Marshals Service.
The Honorable Gerald L. Jackson and the Honorable D. Edward Snow, U.S. Magistrate Judges in the United States District Court for the Eastern District of Oklahoma, accepted the pleas and ordered the completion of presentence investigation reports. All defendants are in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorneys Erin Cornell and Jordan Howanitz represented the United States.
Texas Man Arrested and Charged with Making Threats to Kill Nashville District Attorney Glenn FunkRead the Press Release
NASHVILLE –A federal criminal complaint filed today charges David Aaron Bloyed, 59, of Frost, Texas, with threatening to lynch and kill Glenn Funk, the elected District Attorney General (“DA”) for Nashville and Davidson County, Tennessee, announced United States Attorney for the Middle District of Tennessee Henry C. Leventis.
According to the complaint, on July 14, 2024, members of the Goyim Defense League (“GDL”) – an antisemitic Neo-Nazi group – were protesting in downtown Nashville when they encountered an employee of a local bar. A fight broke out and a GDL member was arrested and charged with aggravated assault for hitting the bar employee repeatedly using a metal flagpole with a swastika flag affixed to the top.
While in Nashville, GDL members routinely posted about their activities on various social media platforms, including Telegram. Following the arrest of the GDL member, a Telegram user associated with GDL posted threats against DA Funk that included a photograph of DA Funk with the caption, “Getting the rope,” and an emoji finger pointed towards Funk’s image. The posts also included a photograph of a person hanging by the neck from a gallows, with the phrases, “The ‘Rope List’ grew by a few more Nashville jews today,” and “Will you survive the day of the rope?” Law enforcement subsequently identified another social media account with an almost identical username, belonging to Bloyed and containing threats nearly identical to those posted on the Telegram account.
“In a functioning democracy, we simply cannot tolerate threats of violence against elected officials,” said United States Attorney Henry C. Leventis. “The charges announced today are just the latest illustration of the Department’s commitment to protecting public servants and upholding the rule of law.”
If convicted, Bloyed faces up to five years in federal prison. This case is being investigated by the Federal Bureau of Investigation, Nashville Resident Agency, Memphis Field Office and the Metropolitan Nashville Police Department.
A federal complaint is merely an allegation. The defendant is presumed innocent until proven guilty.
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Specially Designated Global Terrorist Mohammad Bazzi Pleads Guilty to Sanctions EvasionRead the Press Release
Lebanese national Mohammad Ibrahim Bazzi, 60, pleaded guilty today to conspiracy to conduct and to cause U.S. persons to conduct unlawful transactions with a Specially Designated Global Terrorist.
In May 2018, the Department of the Treasury, Office of Foreign Assets Control (OFAC) designated Bazzi as a Specially Designated Global Terrorist for assisting in, sponsoring and providing financial, material and technological support and financial services to Hizballah. Hizballah is a foreign terrorist organization that, since the 1980s, engaged in numerous terrorist activities, including attacks against American military members, government employees and civilians abroad.
According to the OFAC designation, Bazzi is a key Hizballah financier who has provided millions of dollars to Hizballah over the years, generated from his business activities in Belgium, Lebanon, Iraq and throughout West Africa. As a result of the designation, Bazzi’s interest in any property in the United States were blocked, and all U.S. persons were generally prohibited from transacting business with, or for the benefit of, Bazzi.
Following Bazzi’s designation and according to the court documents, Bazzi and his co-defendant, Talal Chanine, who remains at large in Lebanon, conspired to force or induce an individual located in the United States (U.S. Person) to liquidate their interests in certain real estate assets located in Michigan and covertly transfer hundreds of thousands of dollars in proceeds of the liquidation out of the United States to Bazzi and Chahine in Lebanon without the required OFAC licenses, in violation of the International Emergency Economic Powers Act (IEEPA).
During recorded communications, Bazzi and Chahine proposed numerous methods to conceal from OFAC and law enforcement officials that Bazzi was both the source and destination of the proceeds of the sale and to create the false appearance that the U.S. Person was conducting legitimate arms-length transactions unrelated to Bazzi and Chahine. For example, Bazzi and Chahine proposed that the funds be transferred through:
- A third party in China as part of a fictitious purchase of restaurant equipment from a Chinese manufacturer;
- A third party in Lebanon as part of a fictitious real estate purchase;
- Chahine’s family members in Kuwait as part of fictitious intra-family loans; and
- As part of a fictitious franchising agreement as payment for the rights to operate a Lebanese-based restaurant chain throughout the United States.
Bazzi was arrested in February 2023 by Romanian law enforcement authorities and subsequently extradited to the Eastern District of New York. The Justice Department thanks the Romanian authorities for their assistance in this matter.
A sentencing hearing will be scheduled at a later date. Bazzi faces a maximum penalty of 20 years in prison. He has also agreed to forfeit the nearly $830,000 that was involved in the illegal transaction, and to be removed from the United States upon completion of his sentence. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the National Security Division, U.S. Attorney Breon Peace for the Eastern District of New York and Executive Assistant Director Robert Wells of the FBI’s National Security Branch made the announcement.
Assistant U.S. Attorneys Francisco J. Navarro, Jonathan P. Lax, Nomi D. Berenson, Claire Kedeshian and Robert M. Pollack for the Eastern District of New York are prosecuting the case with assistance provided by Trial Attorney Charles Kovats of the National Security Division’s Counterterrorism Section and Scott Claffee of the National Security Division’s Counterintelligence and Export Section. The Justice Department’s Office of International Affairs assisted with the extradition in this case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Specially Designated Global Terrorist Mohammad Bazzi Pleads Guilty to Sanctions EvasionRead the Press Release
Earlier today, in federal court in Brooklyn, Mohammad Ibrahim Bazzi pleaded guilty to conspiracy to conduct and to cause United States persons to conduct unlawful transactions with a Specially Designated Global Terrorist. The proceeding was held before United States District Judge Dora L. Irizarry. Bazzi also agreed to forfeit the nearly $830,000 that was involved in the illegal transaction, and to be removed from the United States upon completion of his sentence. When sentenced, Bazzi faces a maximum sentence of 20 years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York and Cheryl Ortiz, Special Agent in Charge, Drug Enforcement Administration (DEA), New Jersey Field Division announced the charges.
“Today, Specially Designated Global Terrorist Mohammad Bazzi accepted responsibility for his role in conspiring to secretly move hundreds of thousands of dollars from the United States to Lebanon in violation of sanctions placed on him for assisting the terrorist group Hizballah,” stated United States Attorney Peace. “This outcome demonstrates our commitment to enforcing sanctions imposed to starve terrorism financiers of funds, and the stark consequences that will be enforced when they are ignored.”
Mr. Peace expressed his appreciation to the Federal Bureau of Investigation and Romanian authorities for its assistance on the case.
“The guilty plea from Mohammed Bazzi is a result of the collaborative effort DEA New Jersey has with our law enforcement partners, and foreign counterparts, in effectively targeting those individuals and organizations that violate sanctions by providing financial assistance to terrorist organizations, like Hizballah.” stated DEA New Jersey Field Division Special Agent in Charge Cheryl Ortiz. “The DEA remains committed to disrupting and dismantling these organizations and those who choose to support them financially.”
In May 2018, the United States Department of the Treasury, Office of Foreign Assets Control (OFAC) designated Bazzi as a Specially Designated Global Terrorist for assisting in, sponsoring, and providing financial, material, and technological support and financial services to Hizballah, a foreign terrorist organization that, since the 1980s, has engaged in numerous terrorist activities, including attacks against American military members, government employees, and civilians abroad. According to the OFAC designation, Bazzi is a key Hizballah financier who has provided millions of dollars to Hizballah over the years, generated from his business activities in Belgium, Lebanon, Iraq, and throughout West Africa. As a result of the designation, Bazzi’s interest in any property in the United States were blocked, and all U.S. persons were generally prohibited from transacting business with, or for the benefit of, Bazzi.
Following Bazzi’s designation, Bazzi and his co-defendant Talal Chahine, who remains at large in Lebanon, conspired to force or induce an individual located in the United States (U.S. Person) to liquidate their interests in certain real estate assets located in Michigan and covertly transfer hundreds of thousands of dollars in proceeds of the liquidation out of the United States to Bazzi and Chahine in Lebanon without the requisite OFAC licenses, in violation of the International Emergency Economic Powers Act (IEEPA).
During recorded communications, Bazzi and Chahine proposed numerous methods to conceal from OFAC and law enforcement officials that Bazzi was both the source and destination of the proceeds of the sale and to create the false appearance that the U.S. Person was conducting legitimate arms-length transactions unrelated to Bazzi and Chahine. For example, Bazzi and Chahine proposed that the funds be transferred through:
- a third party in China as part of a fictitious purchase of restaurant equipment from a Chinese manufacturer;
- a third party in Lebanon as part of a fictitious real estate purchase;
- Chahine’s family members in Kuwait as part of fictitious intra-family loans; and
- as part of a fictitious franchising agreement as payment for the rights to operate a Lebanese-based restaurant chain throughout the United States.
Bazzi was arrested in February 2023 by Romanian law enforcement authorities and subsequently extradited to the Eastern District of New York.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro, Jonathan P. Lax, Nomi D. Berenson, and Robert M. Pollack are in charge of the prosecution, with assistance provided by Trial Attorney Charles Kovats of the National Security Division’s Counterterrorism Section and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section. Assistant United States Attorney Claire Kedeshian and Senior Law Clerk Alfred Pelargu of the Office’s Asset Recovery Section are handling forfeiture matters. The Justice Department’s Office of International Affairs assisted with the extradition in this case.
The Defendant:
MOHAMMAD BAZZI
Age: 60
Lebanon, Belgium, and United KingdomE.D.N.Y. Docket No. 23-CR-041 (DLI)
Shenandoah Man Sentenced to Seven Years in Federal Prison for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa – A Shenandoah man was sentenced today to seven years in federal prison for receipt of child pornography.
According to public court documents, Evaristo Hernandez Flores Carnes, 34, uploaded images and videos containing child sex abuse material to a social media application. Law enforcement executed search warrant at Carnes’s residence and seized a cell phone that was later found to contain images and videos of child sex abuse material.
After completing his term of imprisonment, Carnes will be required to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Iowa Division of Criminal Investigation (DCI), DCI Internet Crimes Against Children Task Force, Shenandoah Police Department, and Federal Bureau of Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the 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 https://www.justice.gov/psc.
Second Maui Man Arrested in Connection with IEDRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Jess Kiesel Lee, age 43, of Kula, Maui, was arrested on September 18, 2024 pursuant to a criminal complaint for possessing explosives as a felon and damaging property by means of explosives. An initial appearance in federal court is set for September 23, 2024.
The complaint and affidavit allege that on August 7, 2024, Maui Police Department (“MPD”) officers encountered multiple improvised explosive devices (“IEDs”) near Kaamana Street in Kula. One of the IEDs, which had been exploded before MPD arrived, contained a mixture of compounds consistent with the remnants of explosive powder.
If indicted and convicted of the charged offenses, the defendant would face up to ten years in prison on the felon in possession of explosives charge and a mandatory minimum sentence of at least five years in prison, but no more than and up to 20 years in prison, on the property damage charge. The charges and information contained in the federal complaint are merely accusations, and the defendant is presumed innocent unless and until indicted and proven guilty beyond a reasonable doubt in a court of law.
Lee is not charged for the IED located near Lono Avenue in Kahului on July 23, 2024 or the explosion damaging a car in Pukalani on August 8, 2024, both mentioned in the complaint filed on August 13, 2024 charging another man for the IED located on July 23, 2024.
The Federal Bureau of Investigation and MPD conducted the investigation resulting in the complaint and arrest, and the investigation into this matter remains ongoing. The prosecution is being handled by Assistant U.S. Attorneys Jonathan D. Slack and Wayne A. Myers.
San Antonio Woman Sentenced to 27 Years in Federal Prison for Sexual Performance by a ChildRead the Press Release
SAN ANTONIO – A San Antonio woman was sentenced in federal court to 325 months in prison followed by 30 years of supervised release for one count of sexual performance by a child.
According to court documents, Keisha Lyn Swarner, 42, induced a 13-year-old boy to engage in sexual conduct with a 12-year-old girl. Swarner, who was a fifth-grade teacher, facilitated meetings between the two children at her home on Joint Base San Antonio-Lackland. Swarner induced sexual conduct between the children in various text messages she sent to the boy on a cell phone she had given him, instructing him not to tell his parents.
Swarner was arrested on April 14, 2022, and has remained in federal custody. She pleaded guilty on Jan. 9, 2024, to one count of sexual performance by a child, admitting that she had authorized and induced a child younger than 14 years of age to engage in sexual conduct.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The Naval Criminal Investigative Service investigated the case.
Assistant U.S. Attorneys William Calve and Bettina Richardson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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San Antonio VA Official Sentenced for Accepting Bribe as Contracting ConsultantRead the Press Release
SAN ANTONIO – A Veteran’s Affairs contracting officer in San Antonio was sentenced after a guilty plea to taking a bribe in return for contract.
According to court documents, Glenn Dartone Johnson, 50, identified himself as a “consultant” and was hired by codefendant Javor McCoy to help McCoy win bids for VA transportation contracts. Using his acquisition knowledge gained through his official position, Johnson helped McCoy improve his chances of winning two competitive awards. On or about Aug. 13, 2021 and Aug. 23, 2021, McCoy paid Johnson a total of approximately $100,000 by placing the U.S. currency into a gym locker for Johnson to collect, which he did.
Johnson pleaded guilty on Dec. 20, 2023, to one count of conspiracy to commit bribery of a public official. In addition to the sentence, Johnson will forfeit $43,790, pay a $58,000 fine, and serve 1,500 hours of community service.
“Protecting the integrity of government funds is one of the most important functions of our office,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “The public deserves to have confidence in how their tax dollars are spent, and this case demonstrates our commitment to ensuring that those who abuse the contracting system will be held responsible.”
"The Department of Veterans Affairs is charged with serving those who served our country," said Special Agent in Charge Aaron Tapp of the FBI's San Antonio field office. "Any employee seeking to take advantage of their position to enrich themselves will be held accountable. The FBI remains committed to ensuring our veterans and the benefits they deserve are preserved, protected and honored.”
“This sentence should send a clear message that those who would defraud VA’s programs and services will be held accountable,” said Special Agent in Charge Kris Raper with the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office, and our law enforcement partners for their efforts to achieve justice in this case.”
The FBI and VA-OIG investigated the case. Assistant U.S. Attorneys Justin Chung and Jay Porier prosecuted the case.
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Romanian Man Sentenced to 5 Years in Federal Prison for Stealing Identities to Fraudulently Obtain Public Assistance FundsRead the Press Release
SANTA ANA, California – A one-time Orange County man who is one of Romania’s most notorious criminals was sentenced today to 60 months in federal prison for stealing victims’ identities to withdraw money from their public-assistance accounts without their permission.
Florin Duduianu, 39, whose last known residence was in Mission Viejo, was sentenced by United States District Judge John W. Holcomb, who also ordered him to pay $1,850 in restitution.
Duduianu pleaded guilty on January 5 to three counts of bank fraud and unlawful use of unauthorized access devices. After a two-day bench trial, Judge Holcomb on January 23 found Duduianu guilty of two counts of aggravated identity theft.
“This defendant came to our country to victimize the neediest members of our society,” said United States Attorney Martin Estrada. “Our nation is not a piggy bank for foreign criminals, and those who think they can take advantage of our liberties to harm our people are sorely mistaken.”
“Duduianu stole money which was meant to serve as a critical lifeline to those most in need,” said Akil Davis, the Assistant Director in Charge of the FBI Los Angeles Field Office. “It was a serious offense, and the FBI remains committed to working with our law enforcement partners across the globe to identify fraudsters like this defendant and hold them fully accountable for their crimes.”
In August 2023, law enforcement was conducting an operation to combat Electronic Benefits Transfer (EBT) fraud at various banks and ATMs in Placentia. Police saw Duduianu, accompanied by a passenger, drive up to a Wells Fargo ATM and make multiple withdrawals on different cards. Based on this information, officers pulled Duduianu over. Duduianu lied to the officers, telling them he was depositing, not withdrawing, money from the ATM.
During a search of Duduianu’s passenger, officers found four Visa gift cards, three Wells Fargo ATM receipts, and $1,850 in cash. The Visa gift cards were encoded with EBT card numbers. Those numbers were run through an EBT database, which showed that they belonged to four different people. Based on the Wells Fargo receipts, Duduianu used two of the cards to make three withdrawals totaling $1,850 from the ATM.
The FBI contacted the accountholders for the two EBT accounts from which Duduianu made withdrawals. The accountholders said that they did not know Duduianu or his car passenger and did not give permission to anyone to withdraw funds from their accounts.
During a search of Duduianu’s cellphone, law enforcement found dozens of photos and videos related to ATM skimming as well as tools and techniques used to skim EBT information. Law enforcement also found photos of large sums of cash and hundreds of EBT numbers from multiple states. In the chat history of Duduianu’s phone, the government found an article about EBT fraud that was sent from his phone to four other phone numbers.
On another smartphone law enforcement recovered during Duduianu’s arrest, law enforcement found additional videos related to ATM skimming. Phone records and EBT records showed that this phone was used to check the balance of the EBT accounts of the victims in this case, five days before Duduianu withdrew $1,850 from those same accounts.
“Until his arrest in this case…Duduianu was one of Romania’s ‘Most Wanted’ criminals and an INTERPOL fugitive,” prosecutors argued in a sentencing memorandum. “He leads the ‘Duduianu Clan,’ an exceptionally violent and influential
organized crime group and was previously convicted of attempted murder. In 2020, [Duduianu] fled Romanian prosecution following charges of robbery and blackmail.”
The FBI and the Placentia Police Department investigated this matter.
Assistant United States Attorneys David Y. Pi of the Major Frauds Section and Diane B. Roldán of the General Crimes Section prosecuted this case.
Rock Island Man Sentenced to 210 Months in Federal Prison for Conspiracy to Distribute Meth and MarijuanaRead the Press Release
DAVENPORT, Iowa – A Rock Island, Illinois man was sentenced on September 18, 2024, to 210 months in federal prison for conspiring to distribute methamphetamine and marijuana.
According to public court documents, in early 2021, Jesus Alfonso Ruiz, 37, along with co-conspirators, distributed meth and marijuana in the Quad Cities area. Surveillance footage showed Ruiz obtaining meth in Illinois. On May 28, 2021, Ruiz was stopped in Eldridge, on his way back from Illinois, and law enforcement officers found approximately one pound of meth in the trunk of the car. In November 2021, Ruiz was arrested at his residence due to an outstanding parole violation warrant in a state drug trafficking case. In Ruiz’s residence, law enforcement located distribution quantities of marijuana and cocaine, and a firearm.
After completing his term of imprisonment, Ruiz will be required to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Scott County Sheriff’s Office and Dubuque Drug Task Force.
Rochester woman arrested, charged with bilking elderly landlord out of tens of thousands of dollarsRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Nahtahna Castner, 45, of Rochester, NY, was arrested and charged by criminal complaint with wire fraud, bank fraud, and aggravated identity theft. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Nicholas M. Testani, who is handling the case, stated that according to the complaint, between July 2020, and February 2023, Castner gained the trust of an elderly Victim in her mid-90’s who allowed her into her home. The Victim owned a duplex and lived on one side, while Castner lived on the other side. Using her position of trust, Castner gained access to the Victim’s personal identifying information and banking information. She then withdrew large sums of cash from ATM’s, often close to the daily ATM limit, conducted wire transfer peer-to-peer payments to her own personal bank account, and made unauthorized purchases using the Victim’s debit card. The complaint states that Castner defrauded the Victim out of approximately $252,672.97 from two different banking institutions. In addition, Castner also used the Victim’s personal identifying information to complete at least three unauthorized credit card applications, which were approved with credit limits of $2,000, $600, and $500. Castner then used the credit cards and defrauded the three financial institutions out of approximately $3,668.11. Castner used the money she stole from the Victim on a variety of purchases, such as travel, which included a trip to Hawaii, hotels, car repairs, insurance, and car payments.
On January 6, 2022, the Victim was hospitalized, but her family was not notified and only became aware a few days later. When family arrived, Castner was already there, referring to herself as the Victim’s granddaughter, and making the healthcare decisions on behalf of the Victim. Still unsure of Castner’s full involvement with Victim A and under the impression that she had helped Victim A with various tasks, family members offered to provide some money to Castner for helping the Victim when hospitalized. Castner was adamant that she did not want any money and told them she helped “out of the kindness of her heart.” However, the Victim’s son decided to go to the bank anyway to get money, at which time he became aware that the bank accounts were empty. Castner immediately moved out of the duplex without notice and did not contact any of the Victim’s family again. In speaking with his mother about the missing money, the Victim stated it must have been “Tana.” The Victim passed away on February 23, 2023. Just two months prior, her accounts at the two banking institutions had only approximately $99.59.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Red Oak Woman to Federal Prison for Meth ConspiracyRead the Press Release
On September 19, 2024, Ann Sulsberger, 49, from Red Oak, Iowa, was sentenced to 6 years’ imprisonment for conspiring to distribute methamphetamine.
At the plea hearing on April 18, 2024, Sulsberger admitted that between April 2023 and May 2023, she and others conspired to distribute over a pound of methamphetamine in the Woodbury and Monona County areas.
Sentencing was held before United States District Court Judge Leonard T. Strand. Sulsberger was sentenced to 6 years’ imprisonment and must serve a term of four years supervised release following the imprisonment. There is no parole in the federal system. Sulsberger remains in custody of the United States Marshal until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Bureau of Indian Affairs, DEA Laboratory, Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-4002.
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Readout of Justice Department’s Civil Rights Division’s Meeting with Jewish Community StakeholdersRead the Press Release
The Justice Department yesterday convened its quarterly interagency meeting with Jewish community stakeholders. Attorney General Merrick B. Garland provided remarks to those at the meeting, underscoring the department’s commitment to addressing hate crimes. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division outlined relevant enforcement efforts across the department and highlighted actions to prevent and combat discrimination and hate crimes. Assistant Secretary of Education Catherine Lhamon of the Department of Education’s Office for Civil Rights also addressed the attendees and highlighted efforts to ensure safe learning environments at schools, colleges, and universities.
Justice Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service, Office of Justice Programs, Office of Privacy & Civil Liberty, and the Office of Public Integrity, heard from participating organizations about hate crimes and incidents, campus safety, and civil rights protections around the election, among other areas. Representatives from other federal government agencies were also in attendance, including Officer Shoba Sivaprasad Wadhia of the Department of Homeland Security’s Office of Civil Rights and Civil Liberties and representatives from the Equal Employment Opportunity Commission.
Combating hate crimes, protecting religious freedom, and addressing claims of discrimination are among the division’s top priorities. Yesterday’s meeting represents the department’s ongoing efforts to engage with organizations and stakeholders on issues affecting Jewish communities.
The department has continued to prosecute hate crimes, including recent cases involving a North Carolina man charged with making antisemitic threats to a rabbi in Georgia; California man who pleaded guilty to shooting two Jewish men, leaving an Los Angeles synagogue; Michigan man convicted and sentenced for conspiring with other members of a white supremacist group, the Base, to victimize Jewish and Black people, including desecrating a Jewish synagogue in Hancock, Michigan, with Neo-Nazi symbols; Mississippi man who pleaded guilty to cyberstalking and harassing synagogues and Jewish-owned businesses in Pennsylvania; Indiana man sentenced for sending violent antisemitic threats to the Anti-Defamation League; and the leaders of the Terrorgram Collective, a transnational terrorist group for using digital platforms to solicit others to engage in hate crimes and terrorist attacks against immigrants and other groups based on hate-fueled bigotry and white supremacy.
In May, Assistant Attorney General Clarke recognized Jewish Heritage Month and delivered remarks at the annual federal inter-agency Holocaust Remembrance Program.
In March, the department hosted a community safety webinar for Jewish community stakeholders, during which the department released resource documents designed to help the public better understand federal civil rights laws, including laws that prohibit violence and discrimination on the basis of religion and national origin, and protections afforded by the Religious Land Use and Institutionalized Persons Act, a law that prohibits discriminatory land use decisions, and Title II of the Civil Rights Act of 1964 in public accommodations.
If you believe that you or someone else experienced religious or national origin discrimination, you can report a civil rights violation online at civilrights.justice.gov. If you believe you are a victim or a witness of a hate crime, you can report it to the FBI by calling 1-800-CALL-FBI or submitting a tip at tips.fbi.gov. Learn more about the department’s work on hate crimes here.
Assistant Attorney General Clarke meets with Jewish stakeholders during the quarterly interagency meeting.Readout of Director Rachel Rossi’s Trip to KansasRead the Press Release
Director Rachel Rossi of the Office for Access to Justice (ATJ) traveled to Kansas this week to engage with stakeholders about the access to justice challenges rural communities face and to discuss innovative solutions. The visit built upon the ongoing work of ATJ to address the rural access to justice gap in the United States.
Director Rossi began by meeting with the Executive Director of Kansas Legal Services, a grantee of the Legal Services Corporation that serves all 105 counties in Kansas, to discuss the importance of civil legal aid, the barriers that low-income Kansans face in addressing their civil legal needs and the operational challenges of providing legal services in rural areas of the state. Director Rossi highlighted various initiatives, including the office’s work to expand and modernize the Federal Government Pro Bono Program — which mobilizes federal government employees to engage in pro bono work, often in partnership with legal service providers, and the online resource developed through the Legal Aid Interagency Roundtable to make federal funding opportunities more accessible for legal service providers.
Following her meeting with Kansas Legal Services, Director Rossi met with the Dean of the University of Kansas (KU) School of Law and Directors of the Law School’s Legal Aid Clinic, which offers students the opportunity to represent low-income clients in civil, criminal and juvenile cases under the guidance of supervising attorneys. Director Rossi and KU Law faculty discussed the recruitment and retention issues plaguing public defense and youth defense systems in Kansas. The clinical professors and Dean shared unique insight into current challenges and potential solutions to several access to justice issues in Kansas, focusing on creative recruitment strategies to encourage law students to pursue public interest and public defense careers.
Later in the day, Director Rossi met with the Executive Director and the Director of Special Projects for the Kansas State Board of Indigents’ Defense Services (BIDS), which oversees Kansas’ 18 regional public defender offices and manages the statewide assigned counsel program, legal services for people in prison, non-capital appellate services and capital defense. Director Rossi shared ATJ’s Public Defense Resource Hub, a digital compilation of federal resources and materials that can be used to support public defense. The meeting included a discussion of caseload and workload standards, the public defense recruitment and retention crisis and the expansion of public defense in Kansas. Following her meeting with BIDS, Director Rossi met with the Federal Public Defender for the District of Kansas, who also serves as the chair of the Defender Services Advisory Group, to discuss issues federal public defenders are facing, implementation of the Report and Recommendations Concerning Access to Counsel at the Federal Bureau of Prisons’ Pretrial Facilities and the innovative defense provided laptop program within the district that ensures discovery access for detained clients.
On Thursday, Sept. 19, Director Rossi met with the Rural Justice Initiative Committee, which was created in 2022 by the Kansas Supreme Court to collect information and data on unmet legal needs and the availability of legal help in rural Kansas and to issue a report and recommendations to address gaps and promote effective solutions. Director Rossi also met with the Supreme Court’s Access to Justice Committee and the Language Access Committee to discuss their programs in rural Kansas and ways in which ATJ can advance access to justice in rural areas. Director Rossi also had the opportunity to meet with a group of state court judges and Kansas Supreme Court justices who serve on these committees to hear their perspective on the role that the judiciary plays in addressing access to justice barriers in the state. She highlighted the work of ATJ to convene all 40 state access to justice commissions quarterly, and the office’s work to expand language access under the leadership of the department-wide language access coordinator.
Director Rossi next met with the Kansas Farm Bureau (KFB) Legal Foundation, an organization established by the Kansas Farm Bureau to provide legal education, information and research for those directly engaged in agriculture or related enterprises. They discussed the civil legal help provided by the KFB Legal Foundation to agricultural communities, including programs to educate farmers and ranchers about significant legal issues such as farm bankruptcy and probate issues, farm ownership transitions, agricultural land use and zoning and more. They also discussed the need for more attorneys and legal help in rural communities, and how the KFB Legal Foundation recently responded through the launch of a Rural Law Practice Grant to help defray the educational costs of law school and to encourage new attorneys to locate their legal practice in rural Kansas.
To conclude the trip, Director Rossi traveled to Washburn University Law School (Washburn Law), in Topeka, Kansas, to meet with faculty, administrators and students participating in Washburn Law’s Rural Law program that focuses on identifying rural externship and employment opportunities and providing support for students to transition into rural law practice. They discussed the program’s effort to expand the range of accelerated and remote study options to lower the barriers to rural students seeking a degree. This engagement highlighted the perspectives of law students, many with backgrounds from rural communities, on effective solutions to the rural lawyer shortage.
Director Rossi and ATJ staff met with faculty at the University of Kansas School of Law. Director Rossi and representatives from Kansas State Board of Indigents’ Defense Services. Director Rossi and ATJ staff convened with representatives from the Kansas Rural Justice Initiative, Access to Justice and Language Access Committees. Director Rossi engaged with Washburn University School of Law faculty and former and present law students.- Quincy, Illinois, Man Sentenced to 25 Years for Distributing Methamphetamine
Queens Couple Sentenced for $380,000 COVID Unemployment Fraud ConspiracyRead the Press Release
ALBANY, NEW YORK – William Taylor, age 33, of Jamaica, New York, was sentenced to serve 36 months’ imprisonment for aggravated identity theft and conspiring with his girlfriend, Patricia Clarke, to commit mail and wire fraud. Clarke, 27, also of Jamaica, was also sentenced to 12 months’ and one day imprisonment for the conspiracy.
United States Attorney Carla B. Freedman; U.S. Department of Labor, Office of Inspector General, Northeast Region (USDOL-OIG) Special Agent in Charge Jonathan Mellone; Homeland Security Investigations (HSI), Buffalo, New York Field Office Special Agent in Charge Matthew Scarpino; U.S. Postal Inspection Service, Boston Division (USPIS) Postal Inspector in Charge Ketty Larco-Ward; and New York State Inspector General (NYSIG) Lucy Lang made the announcement.
Taylor and Clarke used stolen identities to fraudulently obtain pandemic unemployment insurance benefits from the New York State Department of Labor (NYSDOL). They used the names, dates of birth, and social security numbers of at least 20 individuals to submit claims to NYSDOL. Based on those false claims, NYSDOL wired funds directly to accounts controlled by Taylor, Clarke, or both; and NYSDOL directed bank cards to be mailed to the addresses directed by Taylor and Clarke. In total, NYSDOL paid $381,815 on the claims submitted by Taylor and Clarke under the stolen identities.
United States District Judge Mae A. D’Agostino also ordered both defendants repay $381,815 in restitution to NYSDOL; Taylor to forfeit $315,723 in criminal proceeds; and Clarke to forfeit $66,092 in criminal proceeds. Judge D’Agostino also sentenced both defendants to 2 years’ supervised release.
USDOL-OIG, HSI, USPIS, and NYSIG investigated the case, with assistance from the New York State Department of Labor’s Office of Special Investigations. Assistant U.S. Attorney Jonathan S. Reiner prosecuted the case.
Peshtigo Man Sentenced to 25 Years in Federal Prison for Sexual Exploitation of a MinorRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on September 20, 2024, Zachary A. Zastawniak (age: 24) of Peshtigo, Wisconsin, was sentenced to 300 months in federal prison by Senior United States District Judge William C. Griesbach.
According to court records, Zastawniak pled guilty to knowingly persuading a minor to send him a sexually explicit video. In his plea agreement and at the sentencing hearing, Zastawniak acknowledged that he had victimized numerous minors in Oconto County and Northeast Wisconsin by employing coercive techniques to force them to engage in sexual activity. Much of the coercive activity was accomplished using various social media applications.
At the sentencing hearing, Judge Griesbach described the case as “horribly aggravated” and stated that Zastawniak repeatedly made “evil decisions” and engaged in “monstrous behavior.” Judge Griesbach also noted the bravery and courage of the victims, many of whom spoke at sentencing, when cooperating with law enforcement and ending the defendant’s criminal acts. Judge Griesbach also described Zastawniak’s prior involvement in similar crimes as “quite frightening.” Ultimately, the judge determined that a sentence of 300 months in federal prison was appropriate. Upon the completion of his federal prison sentence, the defendant will spend 25 years on supervised release. He will also have to register as a sex offender under state and federal law.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigations, the North Fond du Lac Police Department, Oconto Falls Police Department, Oconto Police Department, Oconto County Sheriff’s Office, and the Kingsford, Michigan, Department of Public Safety. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Orleans Parish Man Sentenced for Methamphetamine Possession and DistributionRead the Press Release
NEW ORLEANS – THEODORE TARDIE (“TARDIE”), age 55, of New Orleans, was sentenced on September 17, 2024, by United States District Judge Jay C. Zainey, after previously pleading guilty to conspiracy to distribute and possess with the intent to distribute, methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 846, respectively. Specifically, TARDIE was sentenced to 60 months of imprisonment, five years of supervised release, and a $100 mandatory special assessment fee.
According to court documents, TARDIE conspired with others to distribute a quantity of methamphetamine, within the Eastern District of Louisiana and elsewhere, on or about January 22, 2020, and continuing to on or about July 29, 2020.
This case was investigated by the Drug Enforcement Administration, the Louisiana State Police, the Jefferson Parish Sheriff’s Office, the Gretna Major Crimes Task Force, and the Kenner Police Department. The prosecution was handled by Assistant United States Attorneys Lynn E. Schiffman and Nolan D. Paige of the Narcotics Unit.
Orlando Man Pleads Guilty to Enticement of A Minor to Engage in Sexual Activity and Production of Child Sexual Abuse MaterialsRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Theron Charles Lord (36, Orlando) has pleaded guilty to enticement of a minor to engage in sexual activity and production of child sexual abuse materials. Lord faces a minimum mandatory penalty of 15 years, up to life, in federal prison for the production offense and a minimum mandatory penalty of 10 years, up to life, in federal prison for the enticement offense. Lord has also agreed to forfeit the cellphone that was used in the commission of the offense. A sentencing date has not yet been set.
According to the plea agreement, Lord and a 15-year-old child victim (CV) met online and began messaging on social media platforms. The messages quickly became sexual in nature and spanned from March until August 2022. In April 2022, Lord drove to meet the CV for the first time and engaged in sexual abuse of the CV. Between April and November 2022, the CV and Lord met in person at least six times and sexual abuse occurred at each meeting. During these meetings, Lord recorded videos of the sexual abuse. Additionally, Lord caused the CV to record and send him specific videos of child sexual abuse material.
This case was investigated by Homeland Security Investigations and the Rockledge Police Department. It is being prosecuted by Assistant United States Attorney Kaley Austin-Aronson.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Operators of Lux Living and Big Sur Construction and Chief Accountant Indicted on Wire Fraud Charges Involving Apartment DevelopmentsRead the Press Release
ST. LOUIS – Two operators of St. Louis area apartment complex construction and development companies, along with their companies’ chief accountant, have been indicted and accused of conspiring to defraud the City of St. Louis Minority Business Enterprise and Women Owned Business Enterprise program to gain millions of dollars’ worth of City tax incentives.
Sidarth “Sid” Chakraverty, Victor Alston and Shijing “Poppy” Cao were indicted in U.S. District Court in St. Louis September 18 on one count of conspiracy to commit wire fraud and 11 counts of wire fraud. The indictment was unsealed Friday morning.
Chakraverty and Alston operate Big Sur Construction LLC, a construction management and development company and LuxLiving LLC, which primarily handled the development, brokerage, daily management, marketing and leasing of apartment complexes built by Big Sur. They also operate the entities which developed the Chelsea multifamily apartment development in the Pershing-DeBaliviere neighborhood of St. Louis, and the SoHo multifamily apartment development* in the Soulard neighborhood of St. Louis.
Cao was the chief in-house accountant for all the Big Sur-affiliated companies.
St. Louis’ Minority Business Enterprise (MBE) and Women Owned Business Enterprise (WBE) programs include participation goals that seek to address historical social and economic disadvantages experienced by women and members of minority groups, and to reduce barriers to participation by those groups in construction projects. Available tax incentives include sales tax exemption on the purchase of construction materials and property tax abatement once the projects are completed. The St. Louis Development Corporation (SLDC) reviews proposals for redevelopment projects in St. Louis and makes recommendations to the Mayor and Board of Aldermen regarding requests for tax incentives. Once incentives are approved, the SLDC enforces compliance with the City’s MBE and WBE participation goals.
The Chelsea Project
For the Chelsea project, which began in 2019 and was completed in 2021, the participation goals set out in the City ordinance granting a 10-year tax abatement were 25% for MBEs and 5% for WBEs. Big Sur was itself certified as a Subcontinent Asian American MBE, so its own reported labor and material supplies made up the majority of MBE participation on Chelsea. A WBE subcontractor was paid about $21,504 for cleaning services it provided on the project, but the indictment says the defendants falsely claimed an additional approximately $272,393 in materials and labor had been supplied by that WBE company. To conceal and carry out the fraud, Big Sur Construction LLC issued sham “joint checks” that were written to the WBE subcontractor and the non-WBE companies which had actually purchased and supplied materials and labor for the project, the indictment says. In emails, Chakraverty, Alston and Cao discussed which non-WBE companies would be willing to accept a joint check to facilitate the scheme, the indictment says. Big Sur submitted false “Utilization Reports” about MBE and WBE participation, which were required by SLDC throughout the construction phase, and a false final lien waiver and other documents claiming that the WBE had been paid $298,897. Big Sur also submitted a false “Good Faith Narrative” claiming that the company had made a good faith effort to meet the WBE participation goal, the indictment says. They did not disclose that of their claimed WBE participation on the Chelsea project, 93% of the total came from falsely attributing $272,393 in materials and labor costs to the WBE subcontractor, the indictment says.
The SoHo Project
The City ordinance approving a 10-year tax abatement for the SoHo project set a 21% participation goal by African American MBEs, an 11% participation goal for WBEs and a 0.5% participation goal for Native American MBEs. The same WBE cleaning company subcontractor that worked on Chelsea was paid approximately $60,780 for its actual labor and materials on SoHo, but defendants falsely attributed approximately $1.15 million in labor and materials supplied by non-WBE companies to that company in its reporting to SLDC, the indictment says. It also says Chakraverty met with the owner of an African American MBE and offered $10,000 to the owner to allow Big Sur to falsely represent that non-MBE work had been performed by that company. The owner refused. But the owner of another African American MBE company agreed to a 5% “markup” fee on an eventual total of $2.17 million in materials and labor supplied by non-MBE companies that were falsely attributed by defendants to that MBE company in reporting to SLDC, the indictment says. That included $1 million in appliances purchased from Home Depot by Big Sur, but falsely attributed to the African American MBE company, it says. Chakraverty met with the owner of a Native American MBE and struck a deal for the owner to receive a 6% markup fee for construction materials and labor supplied by another non-Native American MBE company, the indictment says. False information as to the materials and labor supplied by the non-Native American company, but attributed to the Native American MBE, was submitted to SLDC, the indictment says. The indictment says Big Sur also issued sham joint checks and sham purchase orders on the SoHo project and submitted false reports to the SLDC, similar to defendants’ conduct on the Chelsea project.
After SLDC officials and employees developed suspicions about false reporting by Big Sur, Chakraverty, Alston and Cao repeatedly tried to get the cleaning company WBE to falsely verify the inflated payments in reporting to SLDC, the indictment says. When they failed, they sought another WBE to act as a front company, it says.
The indictment alleges that the fraudulent conduct on the Chelsea project resulted in at least $551,022 in sales tax exemptions and a property tax abatement worth about $1.75 million. Big Sur received more than $1 million in sales tax exemptions for the SoHo project but did not receive the anticipated property tax abatement due to SLDC’s concerns about the legitimacy of their WBE claims, the indictment says. The defendants originally anticipated a tax abatement on the SoHo valued at approximately $7 million.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The conspiracy charge carries a penalty of up to 20 years in prison, a $250,000 fine or both prison and a fine. The wire fraud charges each carry a penalty of up to 20 years in prison and a $250,000 fine.
The FBI investigated the case. Assistant U.S. Attorney Hal Goldsmith is prosecuting the case.
*There are other developments with similar names in the St. Louis area.
redacted_indictment_0.pdfOneida County Pastor Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – James H. Swanson, age 59, of Rome, New York, was sentenced today to three years in federal prison for possession of child pornography, announced United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Homeland Security Investigations (HSI), Buffalo, New York Field Office.
As part of his earlier guilty plea, Swanson admitted that between March 25, 2022, and March 28, 2022, he uploaded several videos of child pornography to a cloud storage account under his control. Swanson also admitted that he had engaged in this type of conduct for years but would periodically purge his collection of child pornography before eventually accessing, viewing, and downloading more. According to documents filed in United States District Court, Swanson worked as a pastor for decades and most recently served as the pastor of the Rome Wesleyan Church.
In addition to sentencing Swanson to serve time in federal prison, Chief United States District Judge, Brenda K. Sannes, also imposed a 15-year term of supervised release which Swanson will begin serving after he is released from prison at which time Swanson will also be required to register as a sex offender.
The case was investigated by Homeland Security Investigations (HIS), the New York State Police (NYSP), and the Oneida County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Adrian S. LaRochelle as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Ohio Restaurant Owner Convicted of Employment Tax CrimesRead the Press Release
After five days of trial, a federal jury convicted Richard Bhoolai, 65, of Cincinnati, today for failing to pay taxes he withheld from employees’ wages at three restaurants he owned and operated.
According to evidence presented at trial, Bhoolai owned and operated Richie’s Fast Food Restaurants Inc., an S-Corporation used to operate three fried chicken restaurants in the Cincinnati area since 1991. Bhoolai was responsible for withholding Social Security, Medicare and income taxes from employees’ wages and paying those funds over to the IRS. Bhoolai employed between 22 and 34 employees between at least 2017 and 2018. During that time, he withheld taxes from employees’ wages but did not pay them over to the IRS. Prior to that time, Bhoolai had not paid over such taxes from earlier years and the IRS had assessed a penalty against him for failing to do so. Instead of paying over the taxes, Bhoolai used money from the businesses for his personal benefit, including gambling.
The jury found Bhoolai guilty of eight counts of failing to pay over taxes for four quarters in 2017 and four quarters in 2018. Bhoolai’s sentencing date has not yet been set. He faces a maximum penalty of five years in prison for each failure to pay taxes count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Douglas R. Cole for the Southern District of Ohio presided over the jury trial.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Kenneth Parker for the Southern District of Ohio made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Alexandra K. Fleszar of the Justice Department’s Tax Division and Assistant U.S. Attorney Ebunoluwa Taiwo for the Southern District of Ohio prosecuted the case.
Ochelata Teen Sentenced After 2022 Armed RobberyRead the Press Release
TULSA, Okla. – Today, U.S. District Judge Sara E. Hill sentenced Kaleb Joesph Scullawl, 20, for Robbery in Indian Country. Judge Hill ordered Scullawl to 108 months imprisonment, followed by three years of supervised release.
According to court documents, Scullawl broke into a pawn shop in Bartlesville with two other juveniles. They stole several firearms from the store. A few weeks later, Scullawl messaged someone to buy marijuana. During the illegal drug purchase, Scullawl entered the vehicle and drew a firearm. He demanded the victim's money, wallet, and marijuana. Scullawl then forced the victim to drive home, where Scullawl stole marijuana. Prior to exiting the vehicle, Scullawl discharged the stolen firearm into the victim’s vehicle .
Scullawl is a citizen of the Cherokee Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bartlesville Police Department investigated the case. Assistant U.S. Attorney Reagan Reininger prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about PSN, please visit Justice.gov/PSN.
Notorious Mexican Cartel Leader Convicted for International Drug Trafficking and Firearms OffensesRead the Press Release
A federal jury convicted Ruben Oseguera-Gonzalez, also known as El Menchito, today of conspiring to distribute five kilograms or more of cocaine and 500 grams or more of methamphetamine while knowing and intending that they would be imported into the United States, and using, carrying, and brandishing firearms, including destructive devices, in furtherance of the drug trafficking conspiracy, following a two-week jury trial in U.S. District Court for the District of Columbia.
According to court documents and evidence presented at trial, between 2007 and 2017, Oseguera-Gonzalez, 34, led an international drug trafficking organization responsible for importing large quantities of methamphetamine and cocaine from Mexico into the United States. Oseguera-Gonzalez was the second in command of the Cartel de Jalisco Nueva Generación (CJNG), which is based in the State of Jalisco in Mexico. The CJNG is one of the most dangerous drug cartels in Mexico. Oseguera-Gonzalez personally used firearms, destructive devices, murder, and kidnapping to control the drug trafficking organization. Oseguera-Gonzalez also ordered his subordinates to shoot down a Mexican military helicopter so that he could escape capture by Mexican law enforcement.
“El Menchito led the Jalisco Cartel’s efforts to use murder, kidnapping, and torture to build the Cartel into a self-described ‘empire’ by manufacturing fentanyl and flooding the United States with massive quantities of lethal drugs. Today, fentanyl is the deadliest drug threat the United States has ever faced,” said Attorney General Merrick B. Garland. “El Menchito now joins the growing list of high-ranking Cartel leaders that the Justice Department has convicted in an American courtroom. We are grateful to our Mexican law enforcement partners for their extensive cooperation and sacrifice in holding accountable leaders of the Jalisco Cartel.”
“Ruben Oseguera-Gonzalez pioneered the manufacturing of fentanyl in Mexico to help build his father’s Jalisco Cartel into one of the world’s most powerful drug syndicates. His crimes caused horrific violence and death in the United States, Mexico, and around the globe,” said Deputy Attorney General Lisa Monaco. “Today’s guilty verdict demonstrates that our prosecutors and agents, working with our Mexican law enforcement partners, will relentlessly pursue justice against the leaders of the drug trafficking organizations who destroy lives and poison our communities.”
“As second-in-command of CJNG, Ruben Oseguera-Gonzalez used extreme violence to traffic massive amounts of methamphetamine and cocaine into the United States,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “His conviction underscores the Criminal Division’s commitment to disrupting and dismantling organizations that manufacture and distribute deadly drugs into our communities. Today’s verdict also sends a powerful message to the cartel leadership: we will work with our domestic and international law enforcement partners to find you and bring you to justice. We are especially grateful to the Mexican authorities for their substantial assistance in this case.”
“Today’s guilty verdict sends a clear message that the DEA will stop at nothing to investigate and dismantle criminal drug networks that threaten the safety and health of the American people,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “As one of the highest-ranking members of the Jalisco Cartel, Oseguera-Gonzalez was responsible for pushing vast quantities of cocaine, methamphetamine, and fentanyl into the United States while engaging in violence, kidnapping, and bribery to build and protect the Jalisco Cartel. I commend the men and women of the DEA Los Angeles Field Division for their outstanding work on this case.”
According to the evidence presented at trial, from 2012 to 2015, Oseguera-Gonzalez oversaw the manufacture of more than three million pounds of methamphetamine in one area of Mexico. In April 2015, Oseguera-Gonzalez personally directed the distribution of over 55,000 pounds of cocaine. According to trial testimony, in October 2013, Oseguera-Gonzalez made plans to “do it big” with counterfeit oxycontin pills—just before the fentanyl epidemic began in the United States. According to witness testimony, the defendant said in 2015 that he was “building an empire with . . . fentanyl.” Oseguera-Gonzalez was arrested by Mexican authorities on local charges in June 2015. He remained detained in Mexico until his extradition to the United States in February 2020. While in prison in Mexico, Oseguera-Gonzalez continued to control the CJNG, negotiating drug transactions and approving the purchase of firearms and destructive devices, including .50 caliber firearms and 40 mm grenades.
Oseguera-Gonzalez personally used extreme violence to grow and control the cartel. For example, when five men owed Oseguera-Gonzalez money for drugs in the United States, Oseguera-Gonzalez violently killed all five men. On another occasion, the defendant shot one of his drivers in the head a close range. In an intercepted message, Oseguera-Gonzalez also described having 13 people tied up—one of whom he decided to release only after the man agreed to make fentanyl pills for Oseguera-Gonzalez.
Oseguera-Gonzalez also amassed an arsenal of weapons. His hitmen, which he called the Special Forces of the High Command, used the weapons to protect him and help him escape capture by Mexican authorities. For example, on May 1, 2015, the defendant’s hitmen—acting on Oseguera-Gonzalez’s personal orders—shot down a Mexican armed forces helicopter while 18 soldiers and police were on board. At least nine people on board the helicopter died as a result of Oseguera-Gonzalez’s order. Oseguera-Gonzalez’s men used an Iranian-made rocket-propelled grenade and a .50 caliber belt-fed firearm to shoot down the helicopter. Both weapons were painted with “CJNG” and a pixel camouflage pattern unique to Oseguera-Gonzalez’s hitmen.
Less than two months after escaping capture, Oseguera-Gonzalez was arrested in Jalisco, Mexico. When he was surrounded by soldiers and police, he brandished an assault weapon and grenade launcher, demanding to be released because he was a member of the CJNG. The weapon Oseguera-Gonzalez used to threaten police bore the same pixel camouflage pattern and was emblazoned with CJNG and Oseguera-Gonzalez’s nicknames: Menchito, 02, and Jr.
Oseguera-Gonzalez faces a mandatory minimum penalty of 40 years in prison and a statutory maximum penalty of life plus 30 years in prison. A sentencing hearing is scheduled for Jan. 10, 2025. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA Los Angeles Field Division investigated the case with the assistance of the U.S. Marshals Service. The Justice Department’s Office of International Affairs provided critical assistance in securing the extradition of Oseguera-Gonzalez and in obtaining important evidence for the trial. The Criminal Division’s Office of Enforcement Operations provided significant assistance. The Justice Department thanks Mexican authorities for their assistance in securing the extradition of Oseguera-Gonzalez and in securing evidence and testimony presented in court.
Acting Deputy Chief Kaitlin Sahni and Trial Attorneys Kate Naseef, Jonathan R. Hornok, and Lernik Begian of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Notorio líder de un cártel mexicano declarado culpable de delitos de tráfico internacional de drogas y armas de fuegoRead the Press Release
Un jurado federal hoy declaró culpable a Rubén Oseguera González, también conocido como “El Menchito”, de conspirar para distribuir cinco kilogramos o más de cocaína y 500 gramos o más de metanfetaminas a sabiendas y con la intención de que serían importadas a los Estados Unidos, y por usar, portar y blandir armas de fuego, incluyendo dispositivos destructivos, en apoyo de la conspiración para el tráfico de drogas, tras un juicio con jurado de dos semanas en el Tribunal de Distrito de los EE. UU. para el Distrito de Columbia.
Según los documentos judiciales y las pruebas presentadas en el juicio, entre 2007 y 2017, Oseguera González, de 34 años, dirigió una organización internacional de tráfico de drogas responsable de importar grandes cantidades de metanfetaminas y cocaína de México a Estados Unidos. Oseguera González era el segundo al mando del Cartel Jalisco Nueva Generación (CJNG), con sede en el estado de Jalisco, México. El CJNG es uno de los cárteles de la droga más peligrosos de México. Oseguera González utilizaba personalmente armas de fuego, artefactos destructivos, asesinatos y secuestros para controlar la organización de narcotráfico. Oseguera González también ordenó a sus subordinados derribar un helicóptero militar mexicano para poder evitar su captura por las fuerzas del orden mexicanas.
“El Menchito dirigió los esfuerzos del Cártel de Jalisco por utilizar el asesinato, el secuestro y la tortura para convertir el cártel en un autodenominado ‘imperio’ mediante la fabricación de fentanilo y la inundación de Estados Unidos con cantidades masivas de drogas letales. Hoy en día, el fentanilo es la amenaza de drogas más mortífera que jamás se ha enfrentado Estados Unidos”, declaró el fiscal general Merrick B. Garland. “El Menchito se une ahora a la creciente lista de altos dirigentes de cárteles que el Departamento de Justicia ha condenado en un tribunal estadounidense. Estamos agradecidos a nuestros socios mexicanos del orden público por su amplia cooperación y sacrificio para hacer rendir cuentas a los líderes del Cártel de Jalisco”.
“Rubén Oseguera González fue pionero en la fabricación de fentanilo en México para ayudar a construir el Cártel de Jalisco de su padre en uno de los sindicatos de la droga más poderosos del mundo. Sus delitos causaron violencia y muertes terribles en Estados Unidos, México y en todo el mundo”, declaró la vicefiscal general Lisa Monaco. “El veredicto de culpabilidad de hoy demuestra que nuestros fiscales y agentes, en colaboración con nuestros socios mexicanos del orden público, perseguirán implacablemente la justicia contra los líderes de las organizaciones de narcotráfico que destruyen vidas y envenenan nuestras comunidades”.
“Como segundo al mando del CJNG, Rubén Oseguera González utilizó la violencia extrema para traficar cantidades masivas de metanfetaminas y cocaína a los Estados Unidos”, dijo la vicefiscal general adjunta principal Nicole M. Argentieri, jefa de la División Penal del Departamento de Justicia. “Su condena subraya el compromiso de la División Penal de desarticular y desmantelar las organizaciones que fabrican y distribuyen drogas mortales en nuestras comunidades. El veredicto de hoy también envía un poderoso mensaje a los dirigentes de los cárteles: trabajaremos con nuestros socios nacionales e internacionales del orden público para encontrarlos y llevarlos ante la justicia. Estamos especialmente agradecidos a las autoridades mexicanas por su importante ayuda en este caso”.
“El veredicto de culpabilidad de hoy envía un mensaje claro de que la DEA no se detendrá ante nada para investigar y desmantelar las redes criminales de drogas que amenazan la seguridad y la salud del pueblo estadounidense”, dijo la administradora Anne Milgram de la Administración para el Control de Drogas (DEA). “Como uno de los miembros de más alto rango del Cártel de Jalisco, Oseguera González fue responsable de introducir grandes cantidades de cocaína, metanfetaminas y fentanilo en los Estados Unidos, al tiempo que se dedicaba a la violencia, el secuestro y el soborno para construir y proteger el Cártel de Jalisco. Felicito a los hombres y mujeres de la División de Los Ángeles de la DEA por su extraordinario trabajo en este caso”.
Según las pruebas presentadas en el juicio, de 2012 a 2015, Oseguera González supervisó la fabricación de más de tres millones de libras de metanfetaminas en una zona de México. En abril de 2015, Oseguera González dirigió personalmente la distribución de más de 55,000 libras de cocaína. Según el testimonio en el juicio, en octubre de 2013, Oseguera González hizo planes para «hacerla en grande» con pastillas de oxicontina falsificadas - justo antes de que comenzara la epidemia de fentanilo en Estados Unidos. Según el testimonio de testigos, el acusado dijo en 2015 que estaba “construyendo un imperio con... fentanilo”. Oseguera González fue detenido por las autoridades mexicanas por cargos locales en junio de 2015. Permaneció detenido en México hasta su extradición a Estados Unidos en febrero de 2020. Mientras estuvo en prisión en México, Oseguera González continuó controlando el CJNG, negociando transacciones de drogas y aprobando la compra de armas de fuego y dispositivos destructivos, incluidas armas de fuego del calibre .50 y granadas de 40 mm.
Oseguera González personalmente actuaba con violencia extrema para hacer crecer y controlar el cártel. Por ejemplo, Oseguera González mató violentamente a cinco hombres que le debían por drogas vendidas en Estados Unidos. En otra ocasión, el acusado disparó a quemarropa en la cabeza a uno de sus conductores. En un mensaje interceptado, Oseguera González también relató que tenía atadas a 13 personas, una de las cuales decidió liberar sólo después de que el hombre accediera a fabricar pastillas de fentanilo para él.
Oseguera González también acumuló un arsenal de armas. Sus sicarios, a los que llamaba Fuerzas Especiales del Alto Mando, utilizaban las armas para protegerlo y ayudarlo a evadir la captura por las autoridades mexicanas. Por ejemplo, el 1 de mayo de 2015, los sicarios del acusado -actuando bajo las órdenes personales de Oseguera González- derribaron un helicóptero de las fuerzas armadas mexicanas mientras 18 soldados y policías se encontraban a bordo. Al menos nueve personas a bordo del helicóptero murieron a consecuencia de la orden dada por Oseguera González. Para derribar el helicóptero, los hombres de Oseguera González utilizaron una granada propulsada por cohete de fabricación iraní y un arma de fuego de calibre 50 alimentada por cinturón. Ambas armas estaban pintadas con las siglas “CJNG” y un patrón de camuflaje de píxeles exclusivo de los sicarios de Oseguera González.
Menos de dos meses después de escapar de la captura, Oseguera González fue detenido en Jalisco (México). Cuando fue rodeado por soldados y policías, blandió un arma de asalto y un lanzagranadas, exigiendo que lo dejaran en libertad porque era miembro del CJNG. El arma que Oseguera González utilizó para amenazar a la policía tenía el mismo patrón de camuflaje de píxeles y estaba adornada con las siglas del CJNG y los apodos de Oseguera González: Menchito, 02 y Jr.
Oseguera González se enfrenta a una pena mínima obligatoria de 40 años de prisión y a una pena máxima legal de cadena perpetua más 30 años de prisión. La vista para dictar sentencia está prevista para el 10 de enero de 2025. Un juez de tribunal federal de distrito determinará la sentencia tras considerar las directrices para la imposición de penas de EE. UU. y otros factores legales.
La División de Los Ángeles de la DEA investigó el caso con la ayuda del Servicio de Alguaciles de Estados Unidos. La Oficina de Asuntos Internacionales del Departamento de Justicia prestó una ayuda fundamental para conseguir la extradición de Oseguera González y obtener importantes pruebas para el juicio. La Oficina de Operaciones de Aplicación de la Ley de la División Penal prestó una ayuda significativa. El Departamento de Justicia agradece a las autoridades mexicanas su ayuda para conseguir la extradición de Oseguera González y para asegurar las pruebas y testimonios presentados ante el tribunal.
La jefa adjunta en funciones, Kaitlin Sahni, y los fiscales litigantes Kate Naseef, Jonathan R. Hornok y Lernik Begian, de la Unidad de Narcóticos y Drogas Peligrosas de la División Penal, están llevando el caso.
Este esfuerzo forma parte de una operación de las Fuerzas Especiales de Lucha contra la Droga y la Delincuencia Organizada (OCDETF). La OCDETF identifica, desarticula y desmantela las organizaciones delictivas de más alto nivel que amenazan a Estados Unidos, utilizando un enfoque multiinstitucional, dirigido por fiscales e informado por datos de inteligencia. Puede obtenerse más información sobre el programa OCDETF en www.justice.gov/ocdetf.
Nine Individuals Indicted in $28 Million Illegal Opioid Distribution Conspiracy Three Doctors and A Clinic Owner Among Those IndictedRead the Press Release
An indictment was unsealed today charging nine individuals with conspiracy to illegally distribute prescription drugs, announced U.S. Attorney Dawn N. Ison.
U.S. Attorney Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the Federal Bureau of Investigation and Special Agent in Charge Mario Pinto, of the Department of Health and Human Services, Office of Inspector General (HHS-OIG).
Charged in the indictment are:
Dr. Charles Wasson, 70, Orchard Lake, MI Dr. Maurice Potts, 65, Detroit, MI
Dr. Bruce Kaplan, 83, Commerce Township, MI
Sharlene Dawson (aka Sharlene Crawford), 55, Detroit, MI Desiree King, 41, Sterling Heights, MI
Lanise Gortman, 53, Warren, MI Aaron Thomas, 42, Southfield, MI Valecia Logan, 33, Detroit, MI and Antoine Arnold, 38, Mt. Clemens, MIThe indictment alleges that from June 2021 through September 2024, Sharlene Dawson (aka Sharlene Crawford), owner of P&A Aftercare, located in Southfield, Michigan, hired Drs. Charles Wasson, Maurice Potts, and Bruce Kaplan to issue controlled substance prescriptions for a cadre of “fake” patients, without medical necessity and outside the usual course of professional medical practice, in exchange for cash payments. According to the indictment, the “fake” patients were recruited by Lanise Gortman, Aaron Thomas, Valecia Logan, and Antoine Arnold. These recruiters would fill the prescription at area pharmacies and sell the controlled substances on the street. The indictment further alleges that Desiree King ran the front office at P&A Aftercare and worked closely with the recruiters to facilitate the issuance of the controlled substance prescriptions.
The primary prescription controlled substances illegally prescribed by the doctors named in the indictment included Schedule II controlled substances Oxycodone, Oxycodone-Acetaminophen (Percocet), and Hydrocodone-Acetaminophen (Norco). While most of the unlawful controlled substance prescriptions were paid for in cash, both controlled and non-controlled
“maintenance” medications were billed to health care benefit programs by pharmacies. It is also alleged that billings to the Medicare and Medicaid programs for medically unnecessary prescription drug medications and maintenance medications during this conspiracy exceeded
$20 million.The case was investigated by special agents of the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General, and it is being prosecuted by Assistant United States Attorneys Lisandra Fernandez-Silber and Regina R. McCullough. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative to combat the opioid epidemic.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Nigerian National Sentenced for Conspiracy to Commit Wire FraudRead the Press Release
United States Attorney Susan Lehr announced that Afeez Akinloye, age 44, a Nigerian citizen, was sentenced on September 19, 2024, in federal court in Omaha, Nebraska conspiracy to commit wire fraud. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Akinloye to a total of 30 months’ imprisonment. There is no parole in the federal system. After Akinloye’s release from prison, he will begin a 3-year term of supervised release and is subject to removal from the United States.
In the Fall of 2016, continuing to the summer of 2017, Akinloye participated in a scheme to defraud U.S. based businesses involved in real estate transactions. As a part of the scheme, Akinloye and other individuals gained access to email accounts and account information related to real estate transactions and then posed as the seller in the real estate transaction, requesting wire transfers be sent to locations and accounts that the fraudsters had access to. The accounts Akinloye and the other fraudsters had access to were as a result of other co-conspirators victimizing unwitting mules through romance scams. There were two victims in the District of Nebraska who lost $52,000 as a result of the wire fraud conspiracy. There were a total of eleven victims with losses of $1,850,000 and attempted losses of $4,600,000. Akinloye and the co-conspirators committed the offense from outside the United States, mostly from South Africa. At the request of the United States, South African authorities arrested Akinloye for the purpose of his extradition in September 2022, a court in South Africa found him extraditable in June 2023, and South African authorities extradited him to the United States in December 2023. The Justice Department’s Office of International Affairs, in coordination with the South African Department of Justice, provided substantial assistance in securing the arrest and extradition of Akinloye.
Akinloye’s co-defendants, Saliu Jimoh Akinloye, Ebenezer Gbenga Omoshagba, and Sheriff Opeyemi Olalere, remain at large.
This case was investigated by the Federal Bureau of Investigation.
Mexican Man Sentenced for Five Pounds of Pure MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Luis Enrique Sagaste-Rodriguez, age 35, of Sinaloa, Mexico, was sentenced September 19, 2024, in federal court in Omaha, for possessing with intent to distribute almost 5 pounds of pure methamphetamine. United States District Judge Brian C. Buescher sentenced Sagaste-Rodriguez to 121 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 November 2, 2023, the Douglas County Sheriff’s Office stopped Sagaste-Rodriguez for a traffic violation. Sagaste-Rodriguez was the sole occupant of the vehicle. During the encounter, Sagaste-Rodriguez was extremely nervous, including shaking and sweating despite the cool temperature. A drug detection K9 was deployed, which indicated to presence of drugs in the vehicle. A search of the vehicle resulted in 2,146 grams of pure meth being seized.
Sagaste-Rodriguez is in the United States illegally and will be deported back to Mexico after serving his sentence.
This case was investigated by the Douglas County Sheriff’s Office and the Drug Enforcement Administration.
Maryland woman pleads guilty to taking bribes to steer government contractsRead the Press Release
ALEXANDRIA, Va. – A Maryland woman who formerly worked as a federal government contracting specialist pled guilty yesterday to conspiracy to commit bribery and honest services wire fraud.
According to court documents, Kyana C. Washington, 44, worked for a company that contracted with the Government Publishing Office (GPO) to provide support for the Acquisition Services Business Unit. Washington’s title at GPO was senior contract specialist, and her duties included assisting contract officers with acquisition planning and solicitation, source selection, the preparation and issuance of contracts, delivery orders, and the modifications and management of various contractual vehicles.
In August 2021, Washington met an individual identified in court records as Person A at a social gathering. Person A’s business provides consulting services that include finding opportunities for his affiliate companies to secure government contracts. At the social gathering, Washington told Person A that she worked in contracting at GPO, and while she did not have direct approval authority over GPO’s contracts, her supervisor did, and Washington’s supervisor followed Washington’s recommendations.
On Aug. 13, 2021, Washington and Person A met at a restaurant in Maryland. Washington told Person A that she could help him get contracts with GPO, but she wanted to be paid 20% of the value of the contracts she steered to Person A. Person A told Washington that he could not pay her directly, so the two agreed that Person A would pay Washington through Washington’s daughter to disguise the bribe payments. Washington brought her government laptop to the meeting and showed Person A confidential information about then-available GPO contracts on which Person A and his business associates could bid. Washington and Person A identified an IT/cloud services contract (Contract-1) which Washington could plausibly steer to Person A’s affiliated businesses.
In September 2021, as GPO’s fiscal year was coming to a close, Washington provided Person A screenshots of her GPO computer that contained nonpublic information about GPO contracting opportunities. Person A later texted Washington the names of three of the companies he was working with, including a Fairfax County business identified in court documents as “Contractor A.” Washington prepared a memorandum for GPO, dated Sept. 29, 2021, indicating that quotes were received from only three companies (those named by Person A) and recommending that Contract-1 be awarded to Contractor A.
Originally, Contract-1 was valued at approximately $1,000,000, to be paid out over five years, which would have required a higher level of approval. Instead, Washington restructured the contract so that it was valued at just under $200,000, to be paid out in one year, and subject to renewal under the same terms for a total of five years, which required only the approval of Washington’s supervisor, who approved the award to Contractor A based on Washington’s recommendation.
Contractor A agreed to pay Person A a percentage of the profits from the contract, and Person A agreed to pay Washington a percentage of the money that he received. Person A and Washington set up a sham “marketing agreement” between Person A’s company and Washington’s daughter’s company to funnel the bribe payments. From the beginning to the conspiracy until the date the government disrupted the scheme, Washington received a total of $7,098.37 in bribe payments from Person A.
GPO has paid a total of $487,887.50 for work performed on Contract-1. During the conspiracy, Person A received approximately $2,362 per quarter for bringing Contract-1 to Contractor A, or a total of approximately $23,362.
Washington is scheduled to be sentenced on Jan. 9, 2025, and faces up to five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David E. Geist, Acting Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division; Stephen Ravas, Acting Inspector General for AmeriCorps; and John Perez, Special Agent in Charge, Headquarters Operations, Office of Inspector General for the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau (FRB-CFPB OIG); and Nathan J. Deahl, Inspector General for the Government Publishing Office, made the announcement after U.S. District Judge Michael S. Nachmanoff accepted the plea.
Assistant U.S. Attorneys Katherine E. Rumbaugh and Heidi B. Gesch are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-186.
Marion County Man Pleads Guilty to Attempting to Entice A 13-Year-Old to Engage in Sexual ActivityRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Devin Joseph Rivera (24, Ocala) has pleaded guilty to attempting to entice a minor to engage in sexual activity. Rivera faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on July 24, 2024, Rivera communicated online within someone whom he believed was a 13-year-old girl. The child, however, was an undercover Homeland Security Investigations (HSI) special agent. Rivera engaged in a sexually explicit conversation with the undercover agent and, ultimately, was arrested when he traveled to a pre-determined meeting location in Marion County to engage in sexual activity with the child. Rivera also brought a blanket and a condom with him to that location.
This case was investigated by Homeland Security Investigations, the Marion County Sheriff’s Office, the Ocala Police Department, the Florida Department of Law Enforcement, and the Chiefland Police Department. It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Sentenced to More Than 10 Years for Attempting to Engage in Sex Acts with A MinorRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Honeywell has sentenced Jonathan Howard Kuykendall (39, Tampa), a/k/a “Bright Darkness,” to 10 years and 1 month in federal prison for attempted enticement of a minor to engage in sexual activity. The court also ordered Kuykendall to forfeit his cellphone, which he used in committing the offense. A federal jury found Kuykendall guilty on June 26, 2024.
According to court documents, Kuykendall was a member of the U.S. Air Force stationed at MacDill Air Force Base. Trial evidence showed that, in June 2022, Kuykendall began messaging someone named “Ms. Glitter” online. Within the first few messages, Ms. Glitter told Kuykendall that she was 14 years old and lived on the base with her single mother. Undeterred by her age, over the next two weeks, Kuykendall groomed Ms. Glitter, gradually introducing sexual topics to her. He began by talking about cuddling with her and kissing her. From there, he began sending her extremely graphic descriptions of various sex acts that he wished to perform with her as well as numerous explicit images of adults.
This continued until June 24, 2022, when Kuykendall, thinking Ms. Glitter’s mom was not home, agreed to come to her house. Kuykendall, thinking he might be in for a set-up, conducted extensive countersurveillance. He arrived at the house long before planned, drove past the house multiple times, lied to Ms. Glitter about where he was, and paced the parking lot looking into cars. Kuykendall then took a handful of male enhancement pills and walked up to the home’s backdoor.
When Kuykendall arrived at Ms. Glitter’s home, he learned that she was actually an undercover federal agent conducting a proactive Internet Crimes Against Children operation. Kuykendall was arrested on scene.
This case was investigated by the Air Force Office of Special Investigations Detachment 340 at MacDill Air Force Base, the 6th Security Forces Squadron at MacDill Air Force Base, and Homeland Security Investigations - Tampa. It was prosecuted by Assistant United States Attorney Karyna Valdes.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Pleads Guilty of Mail Theft Conspiracy and Possession of Stolen MailRead the Press Release
NEW ORLEANS, LOUISIANA – FREDERIC THOMPSON (“THOMPSON” ), age 24, of New Orleans, pleaded guilty on September 19, 2024 to Conspiring to Steal Mail, in violation of Title 18, United States Code, Section 371, and Possession of Stolen Mail, in violation of Title 18, United States Code, Section 1708, announced United States Attorney Duane A. Evans.
According to the indictment, on January 30, 2022, THOMPSON conspired with others to steal mail from the Lakeview Post Office and United States Postal Service (USPS) mailboxes located on Metairie Road in Jefferson Parish. Another individual acted as the driver and another defendant used a stolen USPS key to steal mail from the two locations, with THOMPSON seated in the back of the vehicle. After a police chase, they were found in possession of approximately 30 pieces of stolen mail.
U.S. District Court Judge Jay C. Zainey set sentencing for December 17, 2024, 2024. For both the conspiracy charge and the unlawful possession of mail charge, THOMPSON faces up to five (5) years of imprisonment, up to three (3) years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, the Jefferson Parish Sheriff’s Office and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Jon Maestri of the General Crimes Unit is charge of the prosecution.
Madisonville, Kentucky Man Sentenced to over 29 Years in Federal Prison for Producing and Possessing Child PornographyRead the Press Release
Owensboro, KY – A Madisonville, Kentucky, man was sentenced this week to 29 years and 6 months in federal prison for production and possession of child pornography.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Rana Saoud of the Homeland Security Investigations (HSI) Nashville made the announcement.
According to court documents, Steven Ray Buchanan, 46, was sentenced to 29 years and 6 months in federal prison, followed by a lifetime term of supervised release, on four counts of producing child pornography and one count of possessing child pornography. Buchanan possessed over 1,200 images and 4 videos of child pornography. Buchanan also took lascivious videos and pictures of two young girls while they were in his bedroom. Upon his release, Buchanan will be required to register as a sex offender. Buchanan was also ordered to pay $24,000 in restitution.
There is no parole in the federal system.
This case was investigated by HSI Bowling Green, with assistance from the Kentucky State Police, the Madisonville Police Department, and the FBI Owensboro Satellite Office.
Assistant U.S. Attorney A. Spencer McKiness prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Los Angeles Man Pleads Guilty to Oil Royalty Wire FraudRead the Press Release
MIDLAND, Texas – A California man pleaded guilty in federal court in Midland to two counts of wire fraud.
According to court documents, Mitchell Vaughn Lee, of Los Angeles, acquired and utilized personal identifying information of a mineral rights owner to access the victim’s royalty account with Diamondback Energy, a Fortune 500 oil and natural gas company headquartered in Midland. Lee’s scheme resulted in diverted royalty payments from bank accounts owned by the victim to the bank account controlled by Lee. On at least two occasions in February 2022, Lee worked to divert approximately $1.5 million dollars from the victim’s oil royalty account to a bank account in Lee’s control.
In February 2022, law enforcement agents executed a search warrant at Lee’s Los Angeles residence. Among other items, agents recovered a firearm and a direct deposit change form for Diamondback Energy with the victim’s name and unique non-public owner identification number for the victim’s Diamondback Energy oil royalty account.
Lee was initially prosecuted in the Central District of California for Felon in Possession of a Firearm. While awaiting trial, Lee absconded. He was located in late 2023 in Miami, Florida by federal agents, and was sentenced to 60 years imprisonment in the Central District of California for Felon in Possession of a Firearm.
In the Western District of Texas wire fraud case, Lee faces up to 20 years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Lee remains in custody awaiting further proceedings.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorney Joe Mahoney is prosecuting the case.
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Loan Originator Convicted in $2.6 Million Mortgage Fraud SchemeRead the Press Release
CHICAGO — A federal jury in Chicago has convicted a loan originator of orchestrating a mortgage fraud scheme that bilked multiple financial institutions out of $2.6 million.
KEVIN SMITH, 52, of Melrose Park, Ill., was found guilty on Sept. 6, 2024, of all five bank fraud counts against him. Each count is punishable by up to 30 years in federal prison. U.S. District Judge John F. Kness set sentencing for Dec. 17, 2024.
Smith was a loan originator for mortgage lending businesses that originated and processed loans for real estate purchases in the Chicago area. Evidence at the two-week trial revealed that Smith engaged in a scheme to fraudulently obtain approximately $2.6 million in federally guaranteed mortgage loans in connection with the purchase of 14 properties in Chicago. Smith recruited buyers at real estate investment seminars held in Chicago-area churches and hotels and caused them to make false representations to lenders about, among other things, the source of their down payments and their intention to occupy the properties as their primary residences. Smith provided or caused others to provide funds to the buyers for use as down payments, knowing that the lenders would be falsely led to believe that the money belonged to the buyers. After a closing and the issuance of the government-insured mortgage loans, Smith made payments to the buyers – describing them as “grants” – and then pocketed payments from the sellers without notifying the lenders.
The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General in Chicago, and Gregory Billingsley, Special Agent-in-Charge of the Department of Veterans Affairs, Office of Inspector General, Central Field Office. The government is represented by Assistant U.S. Attorneys Rick D. Young and Misty N. Wright.
“Loan originators and other mortgage professionals are entrusted with protecting the integrity of the government-backed mortgage program,” said Acting U.S. Attorney Pasqual. “Our office will continue to hold accountable any individual who violates that trust to line their own pockets.”
“Smith abused his position of trust as a gatekeeper of FHA-insured mortgage loans and used his real estate knowledge to circumvent the rules to secure his own self-interest,” said HUD-OIG SAC Jindra. “HUD-OIG will continue to work with its prosecutorial and law enforcement partners to aggressively pursue and bring to justice those who seek to profit by abusing HUD’s mortgage insurance and housing programs.”
“This guilty verdict demonstrates the VA Office of Inspector General’s commitment to protecting vulnerable veterans from fraudulent lending practices,” said VA-OIG SAC Billingsley. “The VA-OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this investigation.”
Leader of $4M International Telemarketing Scheme ConvictedRead the Press Release
A federal jury in North Carolina convicted a man today for his role in orchestrating a years-long telemarketing scheme that defrauded victims in the United States from a call center in Costa Rica.
According to court documents and evidence presented at trial, Roger Roger, 40, of Costa Rica, led a fraudulent telemarketing scheme in which co-conspirators, who falsely posed as U.S. government officials, contacted victims in the United States to tell them that that they had won a substantial “sweepstakes” prize. After convincing victims, many of whom were elderly, that they stood to receive a significant financial prize, the co-conspirators told victims that they needed to make a series of up-front payments before collecting their supposed prize, purportedly for items such as taxes, customs duties, and other fees. Co-conspirators used a variety of means to conceal their true identities, including Voice over Internet Protocol technology, which made it appear as though they were calling from Washington, D.C., and other locations in the United States. Roger personally called victims from Costa Rica, using fake names and documents to trick the victims into believing they had won a sweepstakes prize. He also recruited and directed co-conspirators to mislead victims on the phone and to transmit victims’ payments from the United States to Costa Rica. The evidence at trial showed that Roger and his co-conspirators stole over $4 million from victims.
Roger was convicted of one count of conspiracy to commit mail and wire fraud, four counts of wire fraud, one count of conspiracy to commit money laundering, and two counts of international money laundering. The defendant faces a maximum penalty of 25 years in prison on each of the conspiracy to commit mail and wire fraud and the wire fraud counts, because the jury found that these counts involved telemarketing that victimized at least 10 people over the age of 55, and 20 years in prison on each of the conspiracy to commit money laundering and money laundering counts. Sentencing will occur at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King for the Western District of North Carolina; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division; Special Agent in Charge Karen Wingerd of the IRS Criminal Investigation (IRS-CI) Cincinnati Field Office; and Special Agent in Charge Robert DeWitt of the FBI Charlotte Field Office made the announcement.
The USPIS Atlanta Division, IRS-CI Cincinnati Field Office, and FBI Charlotte Field Office investigated the case. The La Grande, Oregon Police Department and Union County District Attorney Victim Assistance Office provided valuable assistance. The Justice Department’s Office of International Affairs worked with law enforcement partners in Costa Rica to secure Roger’s arrest and extradition.
Trial Attorneys Andrew Jaco and Amanda Fretto Lingwood of the Criminal Division’s Fraud Section are prosecuting the case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Lawrence man indicted for bank robberyRead the Press Release
KANSAS CITY, KAN. – A federal grand jury in Kansas City returned an indictment charging a Kansas man with robbing a bank in Lawrence, Kansas.
According to court documents, Alfonzo Cole, 41, of Lawrence is charged with one count of bank robbery.
Cole is accused of using force, violence, and intimidation on July 2, 2024, to take U.S. currency from an employee at a Bank of America branch on Ohio Street.
The Federal Bureau of Investigation (FBI) is investigating the case.
Assistant U.S. Attorney David Zabel is prosecuting the case.
OTHER INDICTMENTS
David Mark Jones, 33, of Shawnee, was indicted on two counts of distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. The Federal Bureau of Investigation (FBI) is investigating the case. Assistant U.S. Attorney Audrey McCormick is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Last Two Defendants in the Violent Kennedy Street Crew Case Plead Guilty to Narcotics and Firearms CountsRead the Press Release
WASHINGTON – Khali Ahmed Brown, 23, Keion Michael Brown, 21, members of the violent Kennedy Street Crew (KDY), pleaded guilty today to narcotics and firearms charges for their roles in a massive drug trafficking organization that operated open-air markets in Northwest Washington D.C.
Khali Brown, aka “Migo Lee,” of Washington D.C., who many view as the face of KDY, pleaded guilty to conspiracy to distribute 100 kilograms or more of marijuana, fentanyl, and oxycodone. He also pleaded guilty to charges of possessing a firearm in furtherance of a drug trafficking offense and assault with a dangerous weapon for his role in a November 18, 2022, shooting just outside Jackson-Reed High School.
His brother, Keion Michael Brown, of Washington D.C., pleaded guilty to conspiracy to distribute 100 kilograms or more of marijuana and oxycodone and a charge of possessing a firearm during a drug trafficking offense. U.S. District Judge Beryl A. Howell scheduled sentencing on December 12, 2024, for both men.
The sentences were 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 James VanVliet 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.
“The prosecution targeted leaders and key members of the KDY street crew--one of the largest, oldest, and most violent street crews in our city,” said U.S. Attorney Graves. “With these guilty pleas, every defendant charged in connection with this investigation has now pled guilty to charges that will ensure that they will be removed from, and no longer driving violence in, our community.”
“DEA’s top operational priority is combatting the current fentanyl crisis and the drug-related violence that is devastating the very foundation of our community and family structures,” said Jarod Forget, Special Agent in Charge of the DEA Washington Division. Today’s guilty plea clearly shows that Mr. Brown, aka “Migo Lee,” and his associations with violent criminal drug trafficking networks like the Kennedy Street Crew showed little respect for the wellbeing of the community. We are taking a strong stance and implementing strict measures to protect every city neighborhood.”
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 its drug trade and defend its territory from rival crews. During the charged conspiracy, from June 2019 to June 2023, on KDY territory there were five homicides, resulting in the deaths of seven and the wounding of six additional individuals, one assault with intent to kill with three wounded, and 19 assaults with a deadly weapon.
Khali Brown was among the charged defendants who played a key role in smuggling bulk quantities of marijuana from the West Coast to the DMV area, which allowed the crew to sell at significant profits and thereby fuel its operations.
Both defendants maintained stash houses of KDY’s controlled substances and fire power. By way of illustration, on January 26, 2023, law enforcement conducted an interdiction at Baltimore-Washington International Airport (BWI) in anticipation of several KDY members, including Khali Brown, smuggling marijuana back to the Washington, D.C. Metropolitan Area through BWI via an overnight flight from LAX. During the interdiction, law enforcement seized five of the checked bags containing 39.2 kilograms of marijuana, but Khali Brown and his co-defendant Herman Signou evaded law enforcement with some of their luggage and traveled to a stash house at the 1700 block of D Street NE.
Hours later, law enforcement executed a search warrant at the residence, where officers found Khali Brown, Keion Brown, and co-defendants Tristan Ware, Jovan Williams, and Herman Signou, among other KDY associates. Inside, law enforcement seized ten firearms (including two machine guns), assorted ammunition, 21 kilograms of marijuana, 39.5 grams of fentanyl-laced pills, and oxycodone pills in suitcases consistent with those taken from the airport during the BWI interdiction. Among the firearms recovered was the Glock 17 9mm firearm that Khali Brown and his co-conspirators had used in the November 18, 2022, shooting outside Jackson-Reed High School.
When Khali Brown and two co-defendants were arrested on June 26, 2023, at yet another stash house in the 1300 block of 5th Street NW, inside the residence were approximately 3.5 kilograms of marijuana, $2,710 in cash and five machine guns, and one firearm.
Keion Brown was a wanted fugitive when, on November 17, 2023, officers tracked him and his associates, including Jovan Williams, to a laundry room on the 4700 block of Benning Road NE. Law enforcement arrested Keion Brown, Jovan Williams, and an associate and found four firearms concealed within the laundry room, including Keion Brown’s machine gun.
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.
It 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.
It 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. Valuable assistance was provided by former Special Assistant United States Attorney Brian Lynch.
DEFENDANTS
NAME
AGE
CHARGES
Kenneth Ademola Olugbenga27Pleaded Guilty 9/15/2024, 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”23Pleaded Guilty 9/20/2024, to Conspiracy to Distribute 100 Kilograms or More of Marijuana, Fentanyl, and Oxycodone; Possessing a Firearm in Furtherance of a Drug Trafficking Offense; Assault with a Dangerous Weapon.Miasiah Jamal Brown, aka “Michael Jamal Crawford”21Sentenced 8/16/2024, to 60 Months for Possession of a Firearm in Furtherance of a Drug Trafficking Offense.Keion Michael Brown21Pleaded Guilty 9/20/2024, to Conspiracy to Distribute Marijuana and Cocaine Base; Possessing a Firearm in Furtherance of a Drug Trafficking Offense.Tristan Miles Ware, aka “Greedy”23Pleaded Guilty 7/11/2024 to Conspiracy to Distribute 100 Kilos of Marijuana and Possession of a Firearm During a Drug Trafficking Offense.Jovan Williams, aka “Chewy”19Pleaded Guilty on 9/5/2024, to Conspiracy to Distribute 100 Kilos of Marijuana and Armed Carjacking.Herman Eric-Bibmin Signou, aka “Herman Signour”23Sentenced 3/22/2024, to 40 Months for Conspiracy to Distribute and Possess with Intent to Distribute 100 Kilograms of More of Marijuana.Cameron Xavier Reid26Sentenced 5/31/2024, to Five Years for Conspiracy to Distribute 100 Kilograms of More of Marijuana.Aaron DeAndre Mercer, aka “Curby”27Sentenced 9/13/2024, to 120 Months for Conspiracy to Distribute 400 Grams or More of Fentanyl, Marijuana, and Cocaine Base.David Penn, aka “Turtle”30Pleaded Guilty 6/27/2024, to Conspiracy to Distribute 40 Grams of Fentanyl and Possessing a Firearm in Furtherance of a Drug Trafficking Offense.Ronald Lynn Dorsey, aka “Ron G” and “HBGeezy”29Sentenced 9/13/2024, to 30 Months for Conspiracy to Commit Money Laundering.Antonio Reginald Bailey, aka “Boy Boy,” and “Fellow King”22Sentenced 2/8/2024, to 24 Months for Receiving a Firearm While Under Indictment.Anthony Trayon Bailey, aka “Fat Ant,” and “Bizzle”27Sentenced 4/26/2024, 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 6/12/2024, to Possessing a Firearm During a Drug Trafficking Offense.Warren Lawrence Fields, III, aka B-Dub26Sentenced 5/16/2024, to 90 Months for Possessing a Firearm During a Drug Trafficking Offense and for Conspiracy to Commit Money Laundering.Juwan Demetrius Clark, aka “Juan” and “Squirrel”28Pleaded Guilty 9/17/2024, to Conspiracy to Launder Monetary Instruments.Adebayo Adediji Green30Sentenced 8/16/2024, to 60 Months for Possessing a Firearm During a Drug Trafficking Offense.Defendant Cameron Reid is from Falmouth, VA. Green is from Hyattsville, MD. All remaining defendants are from Washington, D.C.
23cr0202
Justice Department Sues Wisconsin Townships to Ensure Accessible VotingRead the Press Release
The Justice Department announced today that is has filed a complaint against the Town of Thornapple, Wisconsin, and the State of Wisconsin for violations of Section 301 of the Help America Vote Act (HAVA), which requires polling places to be equipped with at least one voting machine that is accessible to voters with disabilities during federal elections. The department also secured an agreement with the Town of Lawrence, Wisconsin, to resolve its complaint alleging HAVA violations.
“Our democracy works when voters with disabilities have the right to vote on the same terms as any other voter,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By failing to offer accessible voting systems, Thornapple and Lawrence shirked their responsibilities under the Help America Vote Act to provide equal access to the ballot for all voters. We must ensure that all Wisconsin towns, and indeed all jurisdictions throughout our country, fulfill their duty to guarantee all voters equal access to the ballot. We commend Lawrence for working with the Justice Department to swiftly remedy this violation by taking simple action to ensure that federal elections are accessible to all eligible voters.”
“Ensuring equal voting access to all citizens, including those voters with disabilities, is a priority of this office,” said U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. “We’re pleased that the representatives of the Town of Lawrence agreed to remedy the violations of federal law, and we will continue to work to protect and vindicate the voting rights of voters with disabilities in Wisconsin.”
Congress passed HAVA in 2002 in part to make in-person voting more accessible for voters with disabilities. Among other things, Section 301 of HAVA requires that each polling place used for federal elections provide at least one voting system that provides voters with disabilities the same opportunity for access and participation as other voters are provided, including the same opportunity to cast ballots privately and independently.
The complaint alleges that Thornapple and Lawrence violated HAVA by deliberately failing to make accessible voting machines available to voters in certain 2024 federal elections. Specifically, the department alleges that Thornapple violated Section 301 of HAVA by failing to make available at least one accessible voting machine during Wisconsin’s April 2 and Aug. 13 federal primary elections. It also alleges that Lawrence failed to provide an accessible voting machine during the April federal primary election. Both the Thornapple and Lawrence Town Boards voted in 2023 to stop using the accessible voting machines the towns had previously used. Thornapple has neither revisited nor reversed that decision. Lawrence reversed its decision on Sept. 9 as part of its agreement with the department. The complaint alleges that the State of Wisconsin did not ensure that every polling place within the state was accessible to voters with disabilities, as required by federal law.
Under the department’s agreement with Lawrence, which is subject to court approval and was filed in conjunction with the complaint, Lawrence will make an accessible voting machine available at every polling place operated by the town in subsequent federal elections and will train its election and municipal staff on the operation of such equipment. The proposed consent decree resolves claims only against Lawrence; litigation against Thornapple and the state will proceed.
The department also filed a motion for immediate injunctive relief against the Town of Thornapple to remedy the violations of HAVA. Among other things, the department’s motion requests an order requiring Thornapple to ensure that, during the Nov. 5 federal general election, every Thornapple polling place has at least one accessible voting machine.
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about HAVA and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.
Jury finds local restaurant owner guilty of tax crimesRead the Press Release
CINCINNATI – A federal jury has convicted a local fast-food chicken restaurant owner with tax crimes.
The verdict was announced today following a trial that began on Sept. 16 before U.S. District Judge Douglas R. Cole.
Richard Bhoolai, 65, of Cincinnati, owned and operated Richie’s Fast Food Restaurants, Inc.
According to court documents and trial testimony, Bhoolai failed to pay over payroll taxes to the IRS during 2017 and 2018.
Bhoolai employed between 22 and 34 employees at the time. Bhoolai withheld federal taxes from employees’ paychecks but failed to transmit the funds to the IRS. Instead, Bhoolai spent hundreds of thousands of dollars for his personal benefit, including using business proceeds to engage in more than $1 million of gambling activity.
Bhoolai was indicted by a federal grand jury in April 2023 with eight counts of willful failure to pay over employment taxes, a federal crime punishable by up to five years in prison.
Congress sets the maximum statutory sentence, and sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future hearing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Karen Wingerd, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Cincinnati Field Office; announced today’s verdict. Assistant United States Attorney Ebunoluwa A. Taiwo and Trial Attorney Alexandra Fleszar from the Department of Justice’s Tax Division are representing the United States in this case.
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Illinois Man Sentenced to 264 Months in Federal Prison for Meth Distribution ChargesRead the Press Release
DAVENPORT, Iowa – A Carol Stream, Illinois man was sentenced on September 17, 2024, to 264 months in federal prison for conspiracy to distribute methamphetamine.
According to public court documents, in early 2022, Milford Rogers, 33, conspired to distribute methamphetamine with co-conspirators in the Quad Cities area. Rogers received pound quantities of methamphetamine through the mail, including one package containing three pounds of methamphetamine. Rogers distributed multiple kilograms of methamphetamine throughout the Quad Cities.
After completing his term of imprisonment, Rogers will be required to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the United States Postal Inspection Service, Drug Enforcement Administration (DEA), and Iowa Division of Narcotics Enforcement.
Illegal Alien Pleads Guilty to Unlawful ReentryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Adan Garcia-Nava, age 36, of Mexico, entered a guilty plea to an Indictment charging Unlawful Reentry of a Removed Alien.
The Indictment alleged that Garcia-Nava was found in the United States, having been removed or deported from the country on four prior occasions.
The charges arose from an investigation by the Department of Homeland Security Immigration and Customs Enforcement.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Garcia-Nava will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorneys Richard J. Lorenz and Patrick M. Flanigan represented the United States.
Hollidaysburg Couple Sentenced for Conspiracy to Defraud the United States and Health Care Fraud ConspiracyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that John H. Johnson and his wife, Paula Z. Johnson, both age 62, of Hollidaysburg, Pennsylvania, were sentenced on September 17, 2024, by U.S. District Court Judge Christopher C. Conner, for committing fraud. John Johnson received a sentence of 97 months in prison, followed by three years of supervised release. Paula Johnson received a sentence of three years of probation, including six months of home detention with location monitoring, and was ordered to immediately pay $249,301.36 in restitution, fines, and assessments.
According to United States Attorney Gerard M. Karam, in 2016, John H. Johnson, a physician with specialized training in anesthesiology, entered into an agreement with other individuals to defraud health insurance programs by billing them illegally for expensive tests known as “urine drug tests.” One of the individuals that Johnson conspired with was Rodney L. Yentzer, who pleaded guilty for his role in related offenses in March 2022 and is awaiting sentencing. Johnson and Yentzer carried out this agreement through a couple different groups of pain management practices located throughout central Pennsylvania, known as Lighthouse Medical and Pain Medicine of York (“PMY”). Yentzer, who had no medical training, acquired PMY in 2014 at the suggestion of John H. Johnson, with whom Yentzer was business partners. PMY absorbed Lighthouse Medical in 2017, and PMY closed permanently in November 2019 after law enforcement agents executed search warrants at its various locations.
“Ensuring the integrity of health care programs in this age of rising costs is paramount to our mission,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “We will continue to work with federal, state, and local partners to hold providers accountable for misconduct that exploits the programs.”
“Healthcare fraud is not a victimless crime. In this case, the defendants caused taxpayers' hard-earned dollars to be diverted from patients who needed care, and instead served their own interests,” said Wayne A. Jacobs, Special in Agent in Charge of FBI Philadelphia. “Today’s sentencing demonstrates the FBI and our partners’ commitment to rooting out fraud and pursuing those who conspire to exploit our healthcare systems for financial gain."
In 2016, Lighthouse Medical, under the direction of John H. Johnson, operated a drug testing laboratory on its own premises. This laboratory had the equipment and capabilities to perform urine drug testing (“UDT”) on site. UDT, when used legitimately, is a method for physicians to test their patients for the presence and specific amounts of various substances. A very high percentage of the patients of Lighthouse Medical (and, subsequently, PMY) were prescribed with opioid medications at each monthly visit. UDT could be used, for instance, to test whether such patients were taking their medications as prescribed or taking illegal recreational drugs in addition to their prescribed medications. Urine drug tests were typically reimbursed at a high rate by Medicare and private insurance programs.
In March 2016, Johnson and Yentzer agreed with the new owners of a rural, 25-bed “Critical Access Hospital” located near the border of Florida and Alabama to “sell” Lighthouse Medical’s UDT laboratory services to the hospital; in exchange, the hospital purchased the exclusive right to bill for payment and collect payment from patients and insurance programs. The hospital agreed to pay Lighthouse Medical a kickback of $900 per test.
As a Critical Access Hospital under federal law, the hospital received very favorable payment from Medicare and private insurance programs, including, for example, for UDT. Thus, even while paying a $900 kickback per test to Lighthouse Medical, the hospital was still able to collect and keep a significant amount of money over and above that amount. The owners of the hospital also used other laboratories like Lighthouse Medical in a similar pass-through manner. As a result, the hospital was able to bill for a number of laboratory tests that far exceeded what would normally be associated with a small facility of its kind, and Lighthouse Medical was paid far more than what it would have typically received for UDT from Medicare and other insurers. For instance, on July 12, 2016, the hospital paid Lighthouse Medical $816,300 for 907 urine drug tests. Approximately one week later, the hospital paid Lighthouse Medical $628,200 for nearly 700 tests.
In total, the owners of the hospital billed others, including private insurers, approximately $1.4 billion for various laboratory testing services that were not medically necessary. The majority of this amount was due to UDT. Lighthouse Medical received $2,341,775 in kickback payments over a four-month time period, with 85% of this amount going to John H. Johnson and the remaining amount going to Rodney L. Yentzer.
Under the terms of his plea agreement, John H. Johnson will also be required to pay over $2.3 million in restitution to defrauded health insurance companies. The restitution order against John H. Johnson is expected to be finalized within the next sixty days.
In addition to pleading guilty to conspiracy to commit health care fraud, John H. Johnson pleaded guilty to one count of conspiracy to defraud the United States. His wife, Paula Z. Johnson, who is also a physician from Hollidaysburg, Pennsylvania, pleaded guilty to the same offense. Together, John H. Johnson and Paula Z. Johnson conspired to evade payments to the U.S. Government that John H. Johnson was required to make for a prior criminal conviction.
In July 2015, John H. Johnson was indicted for various tax offenses in the U.S. District Court for the Western District of Pennsylvania. In September 2016, John H. Johnson was charged in the U.S. District Court for the Southern District of Florida with conspiracy to commit mail fraud and wire fraud in connection with a separate health care fraud scheme. In early 2017, John H. Johnson knew that he was likely going to prison for these offenses, so he approached Rodney L. Yentzer and got Yentzer to agree to place Paula Z. Johnson, who had not practiced medicine in years, on the PMY payroll.
In June 2017, John H. Johnson was sentenced to an 84-month term of imprisonment for the various offenses with which he had been charged. He was also ordered to repay to the U.S. Government over $3 million restitution payments for fraudulent health care billing and unpaid taxes.
Even following his imprisonment, Johnson and Yentzer remained in close contact through phone and in-person visits, with Johnson providing direction to Yentzer. During conversations, Johnson and Yentzer sometimes used coded language to describe sensitive subjects, including the term “toy” to refer to money and the term “toy box” to refer to bank accounts.
John H. Johnson knew that PMY continued to be highly profitable, in large part owing to its UDT billing. Specifically, PMY billed every patient for two urine drug tests at each visit: one test a presumptive “screen” for the presence of certain substances and the second a definitive test for specific levels of 22 different substances. This testing protocol had been put in place by John H. Johnson when he ran Lighthouse Medical, and he instructed Yentzer to do the same at PMY. Yentzer followed this direction.
From mid-2017 until late 2019, PMY submitted bills just to Medicare for around $10 million in UDT, with well over $4 million being paid out. John H. Johnson, Paula Z. Johnson, and Rodney L. Yentzer devised various other ways to funnel money to the Johnsons so that they could benefit from this wealth without the money being captured for John H. Johnson’s restitution payments. Among other things, Yentzer purchased a car for the Johnsons’ son and leased an Audi Q5 for Paula Z. Johnson, at her request. Yentzer also made $28,000 in contributions to their children’s 529 college savings accounts, paid over $40,000 in legal bills for “asset and estate planning,” made over $40,000 in payments toward personal loans, and covered other large bills, all with the knowledge of both John H. Johnson and Paula Z. Johnson. On a number of occasions, Paula Z. Johnson requested these payments directly from Yentzer or his assistant.
PMY shut down abruptly in November 2019 after search warrants were executed because it was no longer able to retain medical providers to see patients. In January 2020, in a recorded prison call, Yentzer stated to John H. Johnson, that “if there’s anything left, I will make sure Paula gets, uh, a piece.” He added that “whatever’s left” after satisfying certain creditors he would “divvy up.” Yentzer made this statement despite the fact that Paula Z. Johnson had been formally terminated by PMY in November 2019.
The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General, Federal Bureau of Investigation, Drug Enforcement Administration Diversion Control Division, and Pennsylvania Office of Attorney General. Assistant U.S. Attorney Ravi Romel Sharma prosecuted the case.
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Hammond Man Guilty of Federal Firearms ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on September 19, 2024, TYSHON COLEMAN (“COLEMAN”), age 28, a resident of New Orleans, pled guilty to Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i). For this charge, COLEMAN faces a minimum sentence of 5 years of imprisonment up to life imprisonment, a fine of up to $250,000.00, and a period of supervised release of up to 5 years. COLEMAN also pled guilty to Possession of Machine Guns, in violation of 18 U.S.C. §§ 922(o)(1) and 924(a)(2). COLEMAN faces a maximum term of imprisonment for which he faces up to 10 years imprisonment, up to a $250,000.00 fine, and up to 3 years of supervised release. For each charge, COLEMAN also faces payment of a mandatory special assessment fee of $100.00. The sentence imposed for the possession of a firearm in furtherance of drug trafficking charge runs consecutively to the sentence imposed for machine gun possession.
According to court records, the Ponchatoula Police Department officers observed COLEMAN sitting in the passenger seat of his car at the Walmart Supercenter located in Ponchatoula, LA. Officers later observed and recovered a Glock-style firearm, in plain view, between the center console and the passenger seat. The firearm was a Glock Model 17, nine-millimeter pistol with an extended magazine and machine gun conversion device. This device converts a semi-automatic firearm into a fully operational machine gun with a single pull of the trigger. The officers also recovered two backpacks, one of which contained a Glock Model 17, nine -millimeter pistol, also affixed with a machine gun conversion device. Each of the backpacks contained various controlled substances including marijuana, fentanyl, heroin, methamphetamine, and cocaine hydrochloride.
Chief United States District Judge, Nannette Jolivette Brown, will sentence COLEMAN on December 19, 2024.
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 nrighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principals: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occuring in the first place, setting focused and strategic enforcement priorities, and measures the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Ponchatoula Police Department. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Public Integrity Unit.
Goodyear, Arizona, Man Sentenced to 15 Years for Conspiracy to Distribute Methamphetamine in Central IllinoisRead the Press Release
SPRINGFIELD, Ill. – A Goodyear, Arizona, man, Christopher Harris, 44, was sentenced on September 19, 2024, to 180 months in prison for conspiracy to distribute methamphetamine in central Illinois.
At the sentencing hearing before U.S. District Judge Colleen R. Lawless, the government presented evidence that in January 2017 Harris recruited two women in Quincy, Illinois, to serve as drug couriers. In exchange, Harris agreed to pay them $5,000. As part of the agreement, the two women drove to Arizona and picked up controlled substances from Harris. They then planned to drive the drugs back to Quincy, where Harris would retrieve the drugs from them after flying from Arizona to Illinois. Ultimately, Harris provided them with eleven pounds of methamphetamine and one pound of cocaine. The pair, however, were arrested while still in Arizona.
Judge Lawless found that Harris served as the leader of the conspiracy, and that Harris was a career offender based upon his criminal history, which included three prior felony drug convictions.
The statutory penalties for distributing methamphetamine are up to life imprisonment, up to a $10,000,000 fine, and up to a life term of supervised release.
This case was investigated by the West Central Illinois Task Force; Illinois State Police; Quincy Police Department; Drug Enforcement Administration; and the Apache County, Arizona, Sheriff’s Office. Assistant U.S. Attorney Tanner K. Jacobs represented the government in the prosecution.
Gadsden County Tax Preparer Sentenced to Federal Prison for Preparing False Tax ReturnsRead the Press Release
TALLAHASSEEE, FLORIDA – Cedrick Campbell, 49, of Quincy, Florida, was sentenced to a term of 24 months in federal prison after previously pleading guilty to eleven counts of aiding in preparing false tax returns and ordered to pay $378,041 in restitution. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The United States relies on the honest payment of taxes to defend our country and maintain its operations,” said U.S. Attorney Coody. “With the assistance of our dedicated partners at the Internal Revenue Service-Criminal Investigations, we are committed to investigating and prosecuting those who steal from hard-working American taxpayers – whether by traditional evasion or the filing of fraudulent claims to further their criminal schemes.”
Between 2018 and 2022, Campbell, ran an unofficial tax preparation business from his home in Quincy, Florida, where he prepared and filed false tax returns with the Internal Revenue Service. Campbell falsely represented the taxpayers’ deductions, credits, and the refund due.
“A tax preparer who fraudulently inflates your refund isn’t doing you any favors,” said Ron Loecker, Special Agent in Charge of IRS Criminal Investigation’s Tampa Field Office. “Instead, it exposes clients to penalties and interest to be paid and dealt with for years to come. An honest preparer will be transparent and willing to explain everything that you’re entitled to. Unscrupulous preparers, like Mr. Campbell, should know that they will be investigated and face serious consequences.”
This conviction was the result of an investigation by the Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Gary Milligan prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fort Dodge Man Sentenced to Federal Prison for Illegal Possession of FirearmsRead the Press Release
A man who illegally possessed firearms was sentenced on September 20, 2024, in federal court in Sioux City.
Matthew Knowles, 38, from Fort Dodge, Iowa, pled guilty on May 3, 2024, to possessing a .380 ACP pistol, and a .410-gauge shotgun on November 10, 2022, in Fort Dodge, Iowa. As part of an investigation of stolen property, law enforcement executed a search warrant at Knowles’ residence. There, officers recovered thousands of dollars of stolen tools, the two firearms, and controlled substances. Evidence at the plea and sentencing hearings showed that Knowles was a user of methamphetamine, marijuana, and was a felon when he possessed the firearms. As a felon and drug user, Knowles was prohibited from possessing firearms.
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.
Sentencing was held before United States District Court Judge Leonard T. Strand. Knowles was sentenced to 15 months’ imprisonment and must serve a two year term of supervised release after the term of imprisonment. There is no parole in the federal system. Knowles remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Webster County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3039.
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