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27 September 2024
Lawrence Man Sentenced to Federal Prison for 42 Months for Distributing 25 Pounds of Methamphetamine via a RideshareRead the Press Release
CONCORD – A Lawrence, Massachusetts man was sentenced in federal court for trafficking methamphetamine in New Hampshire, U.S. Attorney Jane E. Young announces.
Narquin Sanchez-Unbes, 24, was sentenced by U.S. District Court Chief Judge Landya B. McCafferty, to 42 months in federal prison and one year of supervised release. On June 6, 2024, Mr. Sanchez-Unbes pleaded guilty to one count of distribution of a controlled substance, specifically methamphetamine.
“The defendant used a ride-share to transport an enormous quantity of methamphetamine into the state,” said U.S. Attorney Jane E. Young. “The sentence imposed today holds the defendant accountable for his brazen criminal conduct. The District of New Hampshire will continue to identify those who intend to traffic controlled substances to our state, investigate them, and prosecute them to the fullest extent of the law.”
“DEA stands committed to keeping highly addictive drugs like methamphetamine off the streets of New Hampshire,” said Acting DEA Special Agent in Charge Stephen Belleau, Drug Enforcement Administration, New England Field Division. “Today’s sentence not only holds Mr. Sanchez-Unbes accountable for his crimes but serves as a warning to those traffickers who are contributing to the drug crisis in America. This investigation demonstrates the strength of collaborative law enforcement efforts and our strong partnership with the U.S. Attorney’s Office.”
On July 10, 2023, an undercover agent attempted to purchase 25 pounds of methamphetamine from a suspected drug broker. The agreed-upon price was $2200 per pound, with a separate $3000 delivery fee, for a total cash price of $58,000. The delivery was made to the undercover agent by the defendant. Sanchez-Unbes was arrested shortly after arriving to the agreed upon location in Rochester via a ride share, while in possession of the 25 pounds of methamphetamine.
The Drug Enforcement Administration conducted the investigation that led to Mr. Sanchez-Unbes’ conviction. The New Hampshire State Police also assisted with the investigation. Assistant United States Attorney Jeff Strelzin prosecuted the case.
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Las Vegas Man Sentenced to 46 Months in Federal Prison for Bank Fraud Related to Stolen U.S. Treasury ChecksRead the Press Release
BOISE – Brendon McCormick, 31, of Las Vegas, Nevada, was sentenced to 46 months in federal prison for bank fraud, U.S. Attorney Josh Hurwit announced today.
According to court records, in May 2023, McCormick engaged in a fraud scheme by obtaining two stolen U.S. Department of Treasury checks issued to a California nonprofit. The checks were in the amount of $161,966.49 and $189,957.49 for a total of $351,923.98. At approximately the same time, McCormick obtained (1) a business entity registration with the Idaho Secretary of State using the name of the California nonprofit, and (2) an apparent Internal Revenue Service Employer Identification Number (EIN) in the name of the California nonprofit.
Using this information, McCormick fraudulently opened a business checking account at a bank in Idaho under the name of the California nonprofit. In June 2023, McCormick then deposited the stolen U.S. Department of Treasury checks into the newly opened bank account to use for his personal benefit.
U.S. District Judge Amanda K. Brailsford also sentenced McCormick to serve five years of supervised release upon completion of his prison term. McCormick pleaded guilty to the charge on July 8, 2024.
U.S. Attorney Hurwit commended the work of the United States Secret Service and the Boise Police Department. Assistant U.S. Attorney Sean Mazorol prosecuted the case.
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KC Man Charged with Possessing Hundreds of Illegal Machine Gun Conversion DevicesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been charged in federal court with possessing hundreds of homemade devices to convert semi-automatic firearms into fully automatic machine guns.
“Law enforcement agencies in our area and nationwide report a disturbing increase in the number of machine gun conversion devices that quickly and easily transform a semi-automatic firearm into a fully automatic machine gun,” said U.S. Attorney Teresa Moore. “Machine gun conversion devices are often cheap and homemade, just a small piece of metal or plastic that converts a run-of-the-mill firearm into a weapon of war. These dangerously lethal and illegal weapons pose a threat to both public safety and the safety of law enforcement officers.
“Using these devices is illegal. Selling these devices is illegal. And being in possession of these devices is also illegal,” added Moore. “The Department of Justice is making it a priority to combat the spread of these deadly weapons as a focus of our strategy to drive down violent crime.”
Dalton R. Johnston, 27, was charged in a three-count criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Tuesday, Sept. 24. That complaint was unsealed and made public today following Johnston’s arrest.
According to an affidavit filed in support of the federal criminal complaint, Johnston used his 3-D printer to manufacture machine gun conversion devices, which he sold in the Kansas City metropolitan area.
Machine gun conversion devices, or MCDs, also known as a “switches” or “auto sears,” are used to convert semi-automatic weapons into machine guns that fire multiple shots automatically through a single pull of the trigger, enabling more rapid and often less accurate gunfire. Whether or not they are attached to a firearm, these devices constitute machine guns under federal law.
“In support of the DOJ’s newly established Action Network to Terminate Illegal Machine Gun Conversion Devices, ATF will continue to work nonstop to disrupt the manufacturing and possession of machine gun conversion devices,” said Bernard G. Hansen, ATF Special Agent in Charge, Kansas City Field Division.
“What ATF saw 10 years ago with the emergence of the ghost gun phenomena,” said Hansen, “is now what ATF is seeing with the emergence of machine gun conversion devices. These highly dangerous devices can transform a street corner into a combat zone, devastating entire communities and the brave members of law enforcement who put their lives on the line every day. Machine gun conversion devices are now the most frequently recovered type of illegal firearm. If you are manufacturing or in possession of these deadly devices, we will identify you and arrest you; we will not let up. ATF’s mission is to protect the public from violent crime, and getting these devices off the streets does just that.”
On Aug. 2, 2024, Johnston allegedly sold 10 Glock conversion devices and an AR-type conversion device for a total of $70 to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives. At the time of the transaction, the affidavit says, Johnston told the undercover agent the devices were incomplete as he did not manufacture the selector rod for them (though he later provided those to the undercover agent).
Johnston agreed to manufacture and sell 100 AR-type conversion devices for $250 after the undercover agent said he would be trafficking the devices to Chicago and selling them for a large profit. Johnston stated that he printed the machine gun conversion devices himself and it would take him approximately a week. Johnston also explained that he could manufacture AR-type firearms as well, but it would take him weeks to complete them.
On Aug. 15, 2024, Johnston met the undercover agent in a gas station parking lot on Blue Ridge Cutoff and gave him a clear vacuum-sealed package that contained 100 AR-type machine gun conversion devices. The undercover agent paid Johnston $250 for the devices. Johnston allegedly told the undercover agent he could manufacture and sell 300 AR-type conversion devices within the next two weeks for $750.
On Aug. 30, 2024, Johnston met the undercover agent in the same gas station parking lot on Blue Ridge Cutoff for the transaction. The undercover agent told Johnston he/she wanted to purchase 500 AR-type conversion devices in the next few weeks. Johnston said he could manufacture that many in approximately a week. Johnston explained that he can 3-D print 45 AR-type conversion devices at one time, and can print up to three batches per day. Johnston also told the undercover agent he could produce silencers, which he sells for $20, and agreed to manufacture a silencer for the undercover agent.
The federal criminal complaint charges Johnston with three counts of possessing machine guns, that is, 3D-printed machine gun conversion devices. Johnston allegedly was in possession of 10 3-D printed Glock machine gun conversion devices on Aug. 2, 2024; in possession of 100 3-D printed AR-type machine gun conversion devices on Aug. 15, 2024; and in possession of 300 3-D printed AR-type machine gun conversion devices on Aug. 30, 2024.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Smith. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department and EPA Announce Settlement to Reduce Benzene and Volatile Organic Compounds from Wastewater at Lima Refining Company’s Refinery in OhioRead the Press Release
The Justice Department and the Environmental Protection Agency (EPA) today announced a settlement with the Lima Refining Company (LRC), a wholly-owned subsidiary of Canadian-based Cenovus Energy, to address violations of the Clean Air Act at its refinery in Lima, Ohio.
Under the settlement, LRC must pay a civil penalty of $19 million and implement an estimated $150 million in capital investments, including control technology expected to reduce emissions of benzene by an estimated 4.34 tons per year, other hazardous air pollutants (HAP) by 16.26 tons per year, and other volatile organic compound emissions (VOC) by 219 tons per year. The Lima Refinery is surrounded by a community with environmental justice concerns.
“This settlement is part of an ongoing initiative to curtail illegal benzene and VOC emissions at refineries that have failed to allocate the necessary personnel and capital investments to ensure compliance with rules they have long been subject to,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Under the settlement, the refinery will implement controls that will greatly improve air quality and reduce health impacts on the overburdened community that surrounds the refinery.”
“Lima Refining unlawfully exposed the surrounding community to toxic benzene emissions and other hazardous pollutants,” said Assistant Administrator David Uhlmann of the EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement demonstrates how monitoring can help protect overburdened communities from harmful emissions from refineries. Lima will pay a substantial penalty for its violations and install $150 million in emissions controls that will provide cleaner air to a community that deserves nothing less.” *
“Environmental justice is a core priority of our Office and of the Department. Through its illegal emissions of benzene, VOCs and other pollutants from its facility, the LRC impermissibly violated the Clean Air Act and jeopardized the health of Ohio’s residents,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “We will continue to be vigilant and strictly enforce environmental laws and regulations to protect our district’s residents from toxic pollutants. Ohioans should not have to worry about living and working in an area where air pollution from local industry could make them sick.”
As part of the settlement, LRC will install one or more flash columns to reduce benzene in wastewater streams leading to its wastewater treatment plant and will cease operating, replace or upgrade other units at the refinery. LRC will also install six air pollutant monitoring stations to monitor air quality outside of the refinery fence line and make the results publicly available.
The United States’ complaint, filed simultaneously with the settlement, alleges that LRC violated federal regulations limiting benzene in refinery wastewater streams, and HAP and VOC emissions at its Lima Refinery, as well as the general requirement to use good air pollution control practices.
Benzene is known to cause cancer in humans. Short-term inhalation exposure to benzene also may cause drowsiness, dizziness, headaches, as well as eye, skin and respiratory tract irritation, and, at high levels, unconsciousness. Long-term inhalation exposure can cause various disorders in the blood, including reduced numbers of red blood cells and anemia in occupational settings. Reproductive effects have been reported for women exposed by inhalation to high levels, and adverse effects on the developing fetus have been observed in animal tests.
VOCs, along with nitrous oxide, play a major role in the atmospheric reactions that produce ozone, which is the primary constituent of smog. Ground-level ozone exposure is linked to a variety of short- and long-term health problems, including difficulty breathing, aggravated asthma, reduced lung capacity and increased susceptibility to respiratory illnesses like pneumonia and bronchitis.
This settlement is part of EPA’s and the Justice Department’s ongoing focus to assist communities that have been historically marginalized and disproportionately exposed to pollution.
For more information about the settlement, please visit www.epa.gov/enforcement/2024-lima-refining-clean-air-act-benzene-waste-neshap-and-volatile-organic-compounds.
The proposed consent decree, lodged in the U.S. District Court for the Northern District of Ohio, is subject to a public comment period and final court approval. Information on submitting comment and access to the settlement agreement is available at: www.justice.gov/enrd/consent-decrees.
The EPA investigated the case.
Attorneys with the Environment and Natural Resources Division's Environmental Enforcement Section are handling the case.
*Editor's note: this quote has been updated for accuracy to remove "fence line," “the oil and gas sector” and “healthier water.”
Justice Department and EPA Announce Settlement to Reduce Benzene and Volatile Organic Compounds from Wastewater at Lima Refining Company’s Refinery in OhioRead the Press Release
WASHINGTON — The Justice Department and the Environmental Protection Agency (EPA) today announced a settlement with the Lima Refining Company (LRC), a wholly-owned subsidiary of Canadian-based Cenovus Energy, to address violations of the Clean Air Act at its refinery in Lima, Ohio.
Under the settlement, LRC must pay a civil penalty of $19 million and implement an estimated $150 million in capital investments, including control technology expected to reduce emissions of benzene by an estimated 4.34 tons per year, other hazardous air pollutants (HAP) by 16.26 tons per year, and other volatile organic compound emissions (VOC) by 219 tons per year. The Lima Refinery is surrounded by a community with environmental justice concerns.
“This settlement is part of an ongoing initiative to curtail illegal benzene and VOC emissions at refineries that have failed to allocate the necessary personnel and capital investments to ensure compliance with rules they have long been subject to,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Under the settlement, the refinery will implement controls that will greatly improve air quality and reduce health impacts on the overburdened community that surrounds the refinery.”
“Lima Refining unlawfully exposed the surrounding community to toxic benzene emissions and other hazardous pollutants,” said Assistant Administrator David Uhlmann of the EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement demonstrates how monitoring can help protect overburdened communities from harmful emissions from refineries. Lima will pay a substantial penalty for its violations and install $150 million in emissions controls that will provide cleaner air to a community that deserves nothing less.” *
“Environmental justice is a core priority of our Office and of the Department. Through its illegal emissions of benzene, VOCs and other pollutants from its facility, the LRC impermissibly violated the Clean Air Act and jeopardized the health of Ohio’s residents,” said U.S Attorney Rebecca C. Lutzko for the Northern District of Ohio. “We will continue to be vigilant and strictly enforce environmental laws and regulations to protect our district’s residents from toxic pollutants. Ohioans should not have to worry about living and working in an area where air pollution from local industry could make them sick.”
As part of the settlement, LRC will install one or more flash columns to reduce benzene in wastewater streams leading to its wastewater treatment plant and will cease operating, replace or upgrade other units at the refinery. LRC will also install six air pollutant monitoring stations to monitor air quality outside of the refinery fence line and make the results publicly available.
The United States’ complaint, filed simultaneously with the settlement, alleges that LRC violated federal regulations limiting benzene in refinery wastewater streams, and HAP and VOC emissions at its Lima Refinery, as well as the general requirement to use good air pollution control practices.
Benzene is known to cause cancer in humans. Short-term inhalation exposure to benzene also may cause drowsiness, dizziness, headaches, as well as eye, skin and respiratory tract irritation, and, at high levels, unconsciousness. Long-term inhalation exposure can cause various disorders in the blood, including reduced numbers of red blood cells and anemia in occupational settings. Reproductive effects have been reported for women exposed by inhalation to high levels, and adverse effects on the developing fetus have been observed in animal tests.
VOCs, along with nitrous oxide, play a major role in the atmospheric reactions that produce ozone, which is the primary constituent of smog. Ground-level ozone exposure is linked to a variety of short- and long-term health problems, including difficulty breathing, aggravated asthma, reduced lung capacity and increased susceptibility to respiratory illnesses like pneumonia and bronchitis.
This settlement is part of EPA’s and the Justice Department’s ongoing focus to assist communities that have been historically marginalized and disproportionately exposed to pollution.
For more information about the settlement, please visit www.epa.gov/enforcement/2024-lima-refining-clean-air-act-benzene-waste-neshap-and-volatile-organic-compounds.
The proposed consent decree, lodged in the U.S. District Court for the Northern District of Ohio, is subject to a public comment period and final court approval. Information on submitting comment and access to the settlement agreement is available at: www.justice.gov/enrd/consent-decrees.
The EPA investigated the case.
Attorneys with the Environment and Natural Resources Division's Environmental Enforcement Section are handling the case.
*Editor's note: this quote has been updated for accuracy to remove "fence line," “the oil and gas sector” and “healthier water.”
Justice Department Sues Alabama for Violating Federal Law’s Prohibition on Systematic Efforts to Remove Voters Within 90 Days of an ElectionRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the State of Alabama and the Alabama Secretary of State to challenge a systematic State program aimed at removing voters from its election rolls too close to the Nov. 5 general election, in violation of the National Voter Registration Act of 1993 (NVRA).
“The right to vote is one of the most sacred rights in our democracy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As Election Day approaches, it is critical that Alabama redress voter confusion resulting from its list maintenance mailings sent in violation of federal law. Officials across the country should take heed of the National Voter Registration Act’s clear and unequivocal restrictions on systematic list maintenance efforts that fall within 90 days of an election. The Quiet Period Provision of federal law exists to prevent eligible voters from being removed from the rolls as a result of last-minute, error-prone efforts. The Justice Department will continue to use all the tools it has available to ensure that the voting rights of every eligible voter are protected.”
Section 8(c)(2) of the NVRA, also known as the Quiet Period Provision, requires states to complete systematic programs aimed at removing the names of ineligible voters from voter registration lists by no later than 90 days before federal elections. The Quiet Period Provision applies to certain systematic programs carried out by states that are aimed at striking names from voter registration lists based on a perceived failure to meet initial eligibility requirements — including citizenship — at the time of registration. The Quiet Period is an important protection for voters, because systematic removal programs may be error-ridden, cause voter confusion and remove eligible voters days or weeks before Election Day who may be unable to correct the state’s errors in time to vote or may be dissuaded from voting at all. States may remove names from official lists of voters in various ways and for various reasons, but they may not carry-on this kind of systematic removal program so close to a federal election.
On Aug. 13, the Secretary of State announced the launch of a “process to remove noncitizens registered to vote in Alabama.” This was 84 days before the Nov. 5 general election. The Justice Department’s review found that both native-born and naturalized U.S. citizens have received letters stating that their voter record has been made inactive and that they have been placed on a path for removal from Alabama’s statewide voter registration list. The letter directs recipients who are in fact U.S. citizens and eligible to vote to complete and submit an attached State of Alabama Voter Registration Form. In turn, that form instructs that people may not register to vote in the 14 days before an election. This systematic voter removal program, which the State is conducting within 90 days of the upcoming federal election, violates the Quiet Period Provision.
The Justice Department seeks injunctive relief that would restore the ability of impacted eligible voters to vote unimpeded on Election Day and would prohibit future Quiet Period violations. The department also seeks remedial mailings to educate eligible voters concerning the restoration of their rights and adequate training of local officials and poll workers to address confusion and distrust among eligible voters accused of being noncitizens.
More information about voting and elections is available at www.justice.gov/voting. More information about the NVRA and other federal voting laws is available at www.justice.gov/crt/voting-section. The department recently announced a new guidance document addressing limits on when and how jurisdictions may remove voters from their voter lists. Complaints about discriminatory voting practices may be reported to the Civil Rights Division’s Voting Section through the internet reporting portal at civilrights.justice.gov or by telephone at 1-800-253-3931.
Justice Department Awards $900,000 to Mississippi Band of Choctaw Indians to Support Victims of Domestic Violence and Sexual AssaultRead the Press Release
Jackson, Miss. – The U.S. Department of Justice Office on Violence Against Women (OVW) has awarded $900,000 to the Mississippi Band of Choctaw Indians to support victims of domestic violence and sexual assault, announced U.S. Attorney Todd W. Gee.
The grant was awarded through the OVW Tribal Governments Program, which provides funding to tribes to develop and enhance effective governmental strategies to curtail violent crimes against and increase the safety of Indian women.
The funds will support the Family Violence and Victims Program, an agency of the Mississippi Band of Choctaw Indians Tribal Government, which provides shelter and support services for Choctaw women who are victims of domestic violence or sexual assault.
“This DOJ grant will assist the Mississippi Band of Choctaw Indians with reducing domestic violence and other violent crime through collaboration with community organizations, tribal law enforcement, and prosecutors,” said U.S. Attorney Gee.
“The Family Violence and Victim Services program, a vital initiative within our Department of Family & Community Services, plays a crucial role in supporting individuals during their most vulnerable moments,” said Chief Cyrus Ben of the Mississippi Band of Choctaw Indians. “This grant will enable us to sustain and enhance our efforts in the community. We extend our heartfelt gratitude to the Department of Justice for this generous award, which allows us to continue our important work.”
Additional information about the Office on Violence Against Women can be found at www.justice.gov/ovw.
Justice Department Announces an Organizational Assessment of the Hackensack, New Jersey, Police Department under the COPS Office’s Collaborative Reform InitiativeRead the Press Release
The Justice Department’s Office of Community Oriented Policing Services (COPS Office) today announced that it will provide an Organizational Assessment of the Hackensack, New Jersey, Police Department through its Collaborative Reform Initiative. This is a voluntary program that is offered at the request of law enforcement agencies that are seeking to ensure fair, impartial, and effective policing for the communities they serve. Over the next year, the Hackensack Police Department will work in partnership with the COPS Office Collaborative Reform Initiative team to focus on:
- Data-Driven Policing;
- Employee Wellness, Training, and Professional Development;
- Community Engagement and Problem-Solving Strategies;
- Internal and External Communications;
- Leadership and Organizational Structure; and
- Accountability and Oversight Systems.
“The in-depth assessments undertaken as part of the Collaborative Reform Initiative benefit both the Hackensack Police Department and the community,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “By taking an honest look at what might need to be strengthened or reformed, agencies can continue to improve public safety and trust.”
“By examining an agency’s historical practices, their current practices, and their goals for the future, a solid plan for moving forward can be put in place,” said Director Hugh T. Clements Jr. of the COPS Office. “It is this kind of strategic thinking and planning that is critical in helping agencies meet the standards that the community has set for them.”
Regular updates on the Collaborative Reform Initiative team’s work with the Hackensack Police Department will be provided at www.cops.usdoj.gov/active-oa-site-hackensack-nj-police-department as part of the transparency and public accountability of this new Organizational Assessment effort.
The Collaborative Reform Initiative encompasses three programs offering expert services to state, local, territorial, and Tribal law enforcement agencies: the Collaborative Reform Initiative Technical Assistance Center, Critical Response, and Organizational Assessment programs (complete details of these programs can be found at www.cops.usdoj.gov/collaborativereform). Managed out of the COPS Office, this continuum of services is designed to build trust between law enforcement agencies and the communities they serve; improve operational efficiencies and effectiveness; enhance officer safety and wellness; build agencies’ capacity for organizational learning and self-improvement; and promote community policing practices nationwide.
The Organizational Assessment program provides the most intensive form of technical assistance on the continuum, involving in-depth assessments and long-term assistance to improve the fairness, effectiveness, and efficacy of agency operations that build trust with communities. A continual assessment and implementation process ensures that time and resources are used to focus on identifying areas for improvement, reinforcing agency strengths, and assisting with the implementation of improvements expeditiously. At the same time, the process provides transparency and accountability with routine public reporting and community input. Each engagement will be supported by a multidisciplinary assessment team composed of subject matter experts with diverse experience and perspectives, including in law enforcement, community engagement, research and evaluation, program management, and organizational reform.
The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.
Justice Department Announces Significant Milestone in Policing Reform Efforts for the City of New Orleans and New Orleans Police DepartmentRead the Press Release
The Justice Department announced today that it, together with the City of New Orleans (the City), has jointly moved for the City to enter into a two-year “sustainment period” according to the terms of a negotiated plan, bringing the consent decree concerning the New Orleans Police Department (NOPD) closer to successful resolution.
The joint motion and proposed plan, which must be approved by the U.S. District Court for the Eastern District of Louisiana, recognize the significant progress NOPD and the City have made that supports entry into the two-year sustainment period required by the consent decree. The two-year sustainment period is designed to ensure that reforms will continue even after the consent decree’s eventual termination. During this time, NOPD and the City have an opportunity to demonstrate that they have the systems in place to monitor their own compliance with the decree and take meaningful corrective actions when necessary. The agreement also requires the City and NOPD to complete important obligations under the consent decree to continue the reform process.
“Today’s filing recognizes the significant progress the City of New Orleans and the New Orleans Police Department have made to ensure constitutional and fair policing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We look forward to continuing to work with NOPD, the City and the Court Monitor to achieve full and enduring compliance with the consent decree, an outcome that helps strengthen public safety and enhance police-community relations.”
“After years of hard work and intense collaboration, the City of New Orleans and the New Orleans Police Department are well on the path to demonstrate compliance and sustainability of policing reforms required by the consent decree,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Constitutional policing standards are essential to preserving community trust and confidence in law enforcement. Our office, along with the Justice Department, will continue to work with the NOPD, the City of New Orleans and the Court Monitor to a positive resolution.”
NOPD has made notable progress in achieving compliance with the consent decree, including reforms that go beyond the requirements of the decree. For example:
- Reduced Use of Force: Since entry of the consent decree, NOPD’s total use of force has declined, and its serious use of force has declined by 47% from 2015 to 2023.
- Improved Stop, Search and Arrest Practices: NOPD’s 2023 Stop, Search and Arrest audit — which used a comprehensive protocol approved by an independent monitor and the Justice Department — found an overall 95.4% rate of compliance with the Stop, Search and Arrest requirements of the decree.
- Improved Response Times: NOPD responded quicker to calls for service after NOPD piloted a program this year which added a new platoon to one of its busiest districts during peak service times. NOPD has committed to evaluating whether it can add a new platoon to other districts.
- Improved Language Access: NOPD has translated key policies and forms into Spanish and Vietnamese (two of New Orleans’ commonly spoken languages besides English), increased the number of their certified Spanish and Vietnamese interpreters, rolled out a smart phone application to enable telephonic translation in the field and committed to periodically assessing the translation services needed throughout the city.
- Policing Free of Gender Bias: NOPD added 11 new investigators to help reduce individual caseloads in cases involving sexual violence. NOPD has also implemented a call‑back process for callers who were gone on arrival when NOPD responded on scene.
- Crisis Intervention Team: The City developed a Mobile Crisis Intervention Unit to help respond to incidents involving people in crisis. The Mobile Crisis Intervention Unit handles calls in place of NOPD or as a co-responder with NOPD. The City’s dispatch system has diverted 3,360 calls for service to this unit from June 1, 2023 to July 17, 2024.
The Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the Eastern District of Louisiana handled the matter.
The Civil Rights Division continues to prioritize constitutional policing and currently has pending investigations into police departments across the country, including in Memphis, Tennessee; New York City; and Rankin County, Mississippi. The consent decree, as well as additional information about the Civil Rights Division, are available on its website at www.justice.gov/crt/special-litigation-section.
Justice Department Announces Significant Milestone in Policing Reform Efforts for the City of New Orleans Police DepartmentRead the Press Release
WASHINGTON – The Justice Department announced today that it, together with the City of New Orleans (the City), has jointly moved for the City to enter into a two-year “sustainment period” according to the terms of a negotiated plan, bringing the consent decree concerning the New Orleans Police Department (NOPD) closer to successful resolution.
The joint motion and proposed plan, which must be approved by the U.S. District Court for the Eastern District of Louisiana, recognize the significant progress NOPD and the City have made that supports entry into the two-year sustainment period required by the consent decree. The two-year sustainment period is designed to ensure that reforms will continue even after the consent decree’s eventual termination. During this time, NOPD and the City have an opportunity to demonstrate that they have the systems in place to monitor their own compliance with the decree and take meaningful corrective actions when necessary. The agreement also requires the City and NOPD to complete important obligations under the consent decree to continue the reform process.
“Today’s filing recognizes the significant progress the City of New Orleans and the New Orleans Police Department have made to ensure constitutional and fair policing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We look forward to continuing to work with NOPD, the City and the Court Monitor to achieve full and enduring compliance with the consent decree, an outcome that helps strengthen public safety and enhance police-community relations.”
“After years of hard work and intense collaboration, the City of New Orleans and the New Orleans Police Department are well on the path to demonstrate compliance and sustainability of policing reforms required by the consent decree,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Constitutional policing standards are essential to preserving community trust and confidence in law enforcement. Our office along with the Justice Department will continue to work with the NOPD, the City of New Orleans and the Court Monitor to a positive resolution.”
NOPD has made notable progress in achieving compliance with the consent decree, including reforms that go beyond the requirements of the decree. For example:
Reduced Use of Force: Since entry of the consent decree, NOPD’s total use of force has declined, and its serious use of force has declined by 47% from 2015 to 2023.
Improved Stop, Search and Arrest Practices: NOPD’s 2023 Stop, Search and Arrest audit — which used a comprehensive protocol approved by an independent monitor and the Justice Department — found an overall 95.4% rate of compliance with the Stop, Search and Arrest requirements of the decree.
Improved Response Times: NOPD responded quicker to calls for service after NOPD piloted a program this year which added a new platoon to one of its busiest districts during peak service times. NOPD has committed to evaluating whether it can add a new platoon to other districts.
Improved Language Access: NOPD has translated key policies and forms into Spanish and Vietnamese (two of New Orleans’ commonly spoken languages besides English), increased the number of their certified Spanish and Vietnamese interpreters, rolled out a smart phone application to enable telephonic translation in the field and committed to periodically assessing the translation services needed throughout the city.
Policing Free of Gender Bias: NOPD added 11 new investigators to help reduce individual caseloads in cases involving sexual violence. NOPD has also implemented a call‑back process for callers who were gone on arrival when NOPD responded on scene.
Crisis Intervention Team: The City developed a Mobile Crisis Intervention Unit to help respond to incidents involving people in crisis. The Mobile Crisis Intervention Unit handles calls in place of NOPD or as a co-responder with NOPD. The City’s dispatch system has diverted 3,360 calls for service to this unit from June 1, 2023 to July 17, 2024.
The Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for Eastern District of Louisiana handled the matter.
The Civil Rights Division continues to prioritize constitutional policing and currently has pending investigations into police departments across the country, including in Memphis, Tennessee; New York City; and Rankin County, Mississippi. The consent decree, as well as additional information about the Civil Rights Division, are available on its website at www.justice.gov/crt/special-litigation-section.
Jury Finds Man Guilty of Child Sexual Abuse of a 15-Year-Old Girl in 2005-2006Read the Press Release
WASHINGTON – Lucius Kearney, 52, of Washington, D.C., was found guilty today by a D.C. Superior Court jury of first-degree sexual abuse of a child, announced U.S. Attorney Matthew M. Graves. The sexual assault took place nearly 20 years ago when the victim was 15 years old, and the defendant was approximately 33 years old. The Honorable Maribeth Raffinan scheduled sentencing for December 10, 2024.
According to the government’s evidence at trial, in the 2005-2006 school year, when the victim was in tenth grade, she met the defendant – then a Fourth District Metropolitan Police Department officer – while doing a school project. At their initial meeting at the Fourth District Police Station, the defendant and victim exchanged phone numbers and began communicating about the school project. Their conversations turned sexual, and ultimately the defendant engaged in sexual acts with the victim in his truck near a D.C. public library, where the victim was volunteering to complete her high school community service hours.
The victim disclosed the abuse in 2020 after randomly encountering the defendant while he was on duty in the area where the victim lived. Kearney’s body worn camera showed that after this coincidental encounter, which occurred in 2019, Kearney ran the tags from the victim’s car and said to himself: “How in the world did I f**king manage to do that?!?” The defendant was charged in 2021.
This case was investigated by the Metropolitan Police Department and prosecuted by Assistant United States Attorneys Peter Taylor and Richard Kelley of the U.S. Attorney’s Office for the District of Columbia.
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Jury Finds DC Man Guilty of Aggravated Assault while Armed for Southeast DC ShootingRead the Press Release
WASHINGTON – Calvon Brown, 30, of Washington, D.C., was found guilty by a Superior Court jury yesterday of aggravated assault while armed, possession of a firearm during a crime of violence, and other related firearm charges for a late-afternoon shooting that took place on March 22, 2024, in Southeast DC, announced U.S. Attorney Matthew M. Graves.
The verdict was returned on September 26, 2024, following a trial in the Superior Court of the District of Columbia. The Honorable Judge Erik Christian scheduled sentencing for December 10, 2024.
According to the government’s evidence, on March 22, 2024, the victim walked into a corner store in the 2300 block of Pennsylvania Avenue SE in which the defendant and his associates were dealing suspected drugs. The defendant verbally confronted the victim about his loud music playing from a portable Bluetooth speaker, and the two agreed to go outside to what the victim thought was a fistfight. When they got outside, the victim put his things down to ready himself, but the defendant indicated that they needed to go around the corner and into the alley. When they did so, the defendant pulled out a gun and shot at the victim several times, one shot of which hit the victim in the upper thigh/buttocks. The victim and the defendant then wrestled over the gun. Ultimately, the victim was able to recover it and tried to fire back at the defendant, but the gun jammed. The defendant then fled the scene. The victim then called his girlfriend, who encouraged him to go to the police station to report the incident. The defendant was arrested on April 25, 2024, and has been held since.
This aggravated assault charge was brought as a result of the D.C. Council’s Secure DC Omnibus Amendment Act of 2024. The change in the law recognizes that all gunshot wounds are serious bodily injury for purposes of aggravated assault.
This case was investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Assistant United States Attorneys Lizzy Van Haasteren and Mark Levy.
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Judge Sentences 20-Year-Old Man to Nine Year Prison Term for Shooting Two Minor Victims in Northwest D.C.Read the Press Release
WASHINGTON – Eric Lemus, 20, of Washington, D.C., was sentenced today by the Honorable Maribeth Raffinan for shooting two minor victims on March 22, 2023, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Lemus pleaded guilty on February 9, 2024, to one count of assault with intent to kill while armed and one count of possession of a firearm during a crime of violence.
The U.S. Attorney’s Office requested a sentence of 219 months (18.25 years) of incarceration. The Court sentenced the defendant to 108 months (nine years) incarceration, with an additional 39 months suspended and two years of supervised probation. The Court sentenced Lemus under the Youth Rehabilitation act, over the government’s objection.
According to the government’s evidence, on March 22, 2023, Lemus encountered the two minor victims, ages 15 and 17, at Park Road Park in the Columbia Heights neighborhood in Northwest D.C. Lemus produced a handgun and opened fire on the two victims, who were both struck and later treated for gunshot wounds. After firing multiple rounds at the two victims until the magazine was empty, Lemus attempted to flee the scene. The defendant was immediately apprehended by officers with the Metropolitan Police Department, who discovered the handgun that Lemus used to commit the shooting, located inside of his sweatshirt pocket. The crime was captured on video by a bystander who had witnessed the incident.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia.
Finally, they commended the work of Assistant U.S. Attorneys Caroline Coates Huether and Carlos A. Valdivia, who prosecuted the case.
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Jackson Man Sentenced to 10 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to 10 years in federal prison for possession of a firearm by a convicted felon.
According to court documents, Marcus Allen Brown, 44, was found with a firearm after Jackson Police responded to a reported disturbance at an apartment complex. At the time, Brown already had multiple previous felony convictions spanning more than two decades, including the burglaries of homes and businesses, drug possession, and felon in possession of a firearm. Federal law prohibits a convicted felon from possessing a firearm or ammunition.
Brown pled guilty on March 19, 2024. The sentence he received, 10 years, is the statutory maximum for the offense at the time it was committed. The statutory maximum has since been changed to 15 years. He will not be eligible for parole because there is no parole in the federal system.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The case is being investigated by the ATF and the Jackson Police Department.
Assistant U.S. Attorney Matt Allen is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Inspector Indicted for Fraudulent Permitting and Corruption SchemeRead the Press Release
NEW ORLEANS, LOUISIANA - The United States Attorney’s Office announced today that RANDY A. FARRELL, SR. (“FARRELL”), age 61, a resident of Metairie, and his company, IECI & ASSOCIATES LLC (“IECI”)¸ were charged today in a twenty-five count indictment with conspiracy, wire fraud, and honest services fraud. The charges stemmed from FARRELL’s acceptance of bribes to allow unlicensed electricians to obtain fraudulent permits and fraudulent home inspections on their unlicensed work, as well as FARRELL’s attempts to thwart investigations into his scheme by offering gifts to public officials.
According to the indictment, FARRELL used his status as a third-party inspector at IECI to orchestrate a years-long scheme in which he accepted bribes to let unlicensed electricians work on hundreds of New Orleans homes using licensed electricians’ names and permits, and then FARRELL and IECI fraudulently passed the inspections of the unlicensed electricians’ work. FARRELL also conspired with others to offer bribes to public officials to thwart the investigation into his scheme, including by having a City of New Orleans employee fired.
FARRELL and IECI are charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. §§ 1343 and 1349; twenty counts of wire fraud concerning specific fraudulent permits and inspections, in violation of 18 U.S.C. § 1343; and one count of conspiracy to commit honest services fraud regarding FARRELL’s accepting and offering of bribes, in violation of 18 U.S.C. §§ 1343, 1346, and 1349. FARRELL was also charged with three counts of honest services fraud, in violation of 18 U.S.C. §§ 1343 and 1346, in connection with specific bribes he accepted and paid.
For each count, FARRELL faces up to twenty years in prison and up to three years of supervised release. FARRELL and IECI also each face a fine of up to a $250,000 or twice the gross gain to them or loss to any person, and a $100 mandatory special assessment fee per count.
An indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office praised the work of the Federal Bureau of Investigation in investigating this matter and expressed appreciation for the support provided by the Louisiana State Licensing Board for Contractors and the City of New Orleans Office of Inspector General. Assistant United States Attorney Nicholas D. Moses, of the Financial Crimes Unit and Health Care Fraud Coordinator, is in charge of the prosecution.
Husband and Wife Found Guilty of Murder and Car-JackingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that, on Friday, September 27, 2024, a jury found JAMIE ORSINI and NICHOLAS ORSINI guilty of carjacking resulting in death and conspiracy to commit carjacking. The ORSINIs were found guilty following a two-week trial before U.S. District Judge Philip M. Halpern.
U.S. Attorney Damian Williams said: “Over four years ago, in Beacon, New York, Jamie and Nicholas Orsini killed Jamie’s ex-husband, Steven Kraft, and engaged in a sophisticated scheme to hide their crime. Indeed, Kraft’s body still has not been found. For more than four years, Kraft’s family has waited for justice. Their wait is now over. With its verdict, the jury has now held Kraft’s ex-wife—Jamie Orsini—and her husband—Nicholas Orsini—responsible for that murder and subsequent cover-up. This should serve as a lesson: if you commit a crime—if you commit a murder—it does not matter how well you cover your tracks, or how successfully you think you destroyed the evidence, law enforcement will not give up, and the career prosecutors of this Office and our law enforcement partners will never stop investigating and prosecuting these righteous cases. If any member of the public has information that they wish to share with us about any unsolved murder, then we encourage you to come forward.”
According to the Indictment, public court filings, and the evidence presented at trial:
In 2020, JAMIE and NICHOLAS ORSINI plotted the murder of JAMIE ORSINI’s ex-husband, Steven Kraft. As part of that murder, they planned a sophisticated cover-up, involving the use of burner phones, the movement of Kraft’s car to a different city, and the destruction and disposal of all physical evidence. Among other things, they purchased items—such as a 1,000-square-foot tarp and a full-body coverall—to allow them to commit the murder and dispose of evidence, they repeatedly practiced “dry runs” for how they would move Kraft’s car, and they purchased a “burner phone” to use without law enforcement being able to trace the phone to them. On April 28, 2020, in Beacon, New York, after Kraft dropped his daughters off with the ORSINIs, who had custody of their children, the ORSINIs killed Kraft and took his car and cellphone. NICHOLAS ORSINI then drove the car into Newburgh, New York, leaving it in a high-crime neighborhood, got rid of Kraft’s cellphone, and used the burner phone to call a taxi to bring him back to Beacon, throwing the burner phone out before getting into the taxi.
After the murder, the ORSINIs managed to destroy or dispose of evidence—including Steven Kraft’s body—buying a new burner phone to use when they repeatedly drove to and from upstate New York, and creating large homemade incinerators. JAMIE ORSINI sent multiple text messages to make it look like she believed that Kraft was still alive, and, having dumped Kraft’s car in Newburgh, when speaking with the police, professed ignorance, but kept hinting that, maybe if Kraft went to Newburgh after leaving her home, something might have happened to him there.
If you believe you have information related to the ORSINIs, or the location of Steven Kraft’s body, please consider reporting using the following link: https://www.justice.gov/usao-sdny/report-crime.
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JAMIE ORSINI, 38, and NICHOLAS ORSINI, 36, both of Amsterdam, New York, were each convicted of: carjacking resulting in death; and participating in a conspiracy to commit carjacking. The carjacking count carries a maximum sentence of life in prison, and the conspiracy count carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the New York State Police, which also supported the prosecution through trial. He also thanked the Dutchess County District Attorney’s Office, the Ulster County District Attorney’s Office, the City of Beacon Police Department, the Town of Marlborough Police Department, and the City of Newburgh Police Department.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kaiya Arroyo, Michael D. Maimin, and Kathryn P. Wheelock are in charge of the prosecution, with the assistance of Paralegal Specialists Shannon Becker and Liam Ronan.
Houston “Problem Gang” member heads to prison for possessing machine gunRead the Press Release
HOUSTON – A 21-year-old man has been sentenced for illegal possession of a machine gun, announced U.S. Attorney Alamdar S. Hamdani.
Latravion Knighten aka pg_tray pleaded guilty on April 29.
U.S. District Judge Sim Lake has now ordered Knighten to serve 33 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court observed social media posts where Knighten bragged about the sound of his “switch” and appeared armed. In handing down the sentence, the court noted that a sentence at the higher end of the guidelines consecutive to his state court probation violation was appropriate in this case.
On May 10, 2023, law enforcement conducted surveillance on Knighten, a documented Problem Gang member, who was staying at an AirBNB location and had a warrant for his arrest. They witnessed flashes from a green light, akin to the type used as laser sights on firearms, on the wall within the back porch of the residence.
The next day, law enforcement saw Knighten leave the location and enter a silver Pontiac Grand Prix with a handgun in the waistband of his pants. As authorities began surveilling the vehicle, the Pontiac proceeded to make what appeared to be “heat runs,” signaling to law enforcement that the occupants of the vehicle noticed their mobile surveillance.
Authorities observed Knighten exit the vehicle and run to the side of the street where they saw him concealing something in an overgrown area around a tree. Knighten suddenly turned and ran into the path of the oncoming surveillance vehicle. The vehicle struck him, causing his feet to go over his head. Despite being hit, Knighten immediately stood up and approached authorities, proclaiming his innocence.
After placing him under arrest, law enforcement returned to the tree and found a .40 caliber Glock model 23 with a machine gun conversion device with attached green laser sight. Authorities also seized an extended magazine capable of accepting 17 rounds of ammunition.
They test fired the firearm and confirmed it met the definition of a machine gun.
Knighten has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco and Firearms and the Houston Police Department investigated the case. Assistant U.S. Attorneys Richard Hanes and Kelly Zenon-Matos prosecuted the case.
This case was investigated as part of the Houston Law Enforcement Violent Crime Initiative, which combines personnel and resources from numerous federal, state and local agencies to include the Harris County District Attorney’s Office referring violent offenders released on state bonds to the U.S. Attorney’s Office for possible federal prosecution. The goal is to reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education. It stems from the Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Under the PSN umbrella, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN partners focus enforcement efforts on the most violent offenders and work with locally based prevention and reentry programs for lasting reductions in crime.
Houston sex trafficker convicted of luring minor through social mediaRead the Press Release
HOUSTON – A 25-year-old man has pleaded guilty to coercion and enticement of a minor, announced U.S. Attorney Alamdar S. Hamdani.
Michael Ramone Hooks, Houston, admitted to recruiting the 16-year-old victim to engage in prostitution via Instagram, text messages and video calls.
He communitated via cell phone with the minor and lured her away from a known sex trafficker, Antonio Dario Osario-Avelar aka Pressure. Prior to Hooks’ attempt to lure the minor victim away to work for him, Osario-Avelar had caused to her to engage in commercial sex.
Hooks knew the victim was a minor. Law enforcement discovered text messages revealing that they discussed her age. The victim agreed to pay Hooks a “choosing fee,” which is a fee the victim pays a trafficker for them to be their “pimp.”
In August 2023, authorities arrested Hooks and recovered the minor victim before she could join up with him.
Osario-Avelar was previously sentenced to 375 months in federal prison for his conduct in a separate case before U.S. District Judge George C. Hanks.
U.S. District Judge Sim Lake accepted the plea and has set sentencing for Dec. 20. At that time, Hooks faces up to life imprisonment and a possible $250,000 fine maximum fine.
He has been and will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation with the assistance of Human Trafficking Rescue Alliance (HTRA) and Houston Police Department (HPD).
Assistant U.S. Attorney Sherri Zack is prosecuting the case.
HTRA law enforcement includes members of HPD, FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Hospital, Laboratory, Referring Physician, and Lab Employees Pay More than $7.2 Million to Resolve Civil Allegations of Fraudulent Laboratory TestingRead the Press Release
LEXINGTON, Ky. — A hospital, a laboratory, three lab employees, and a referring physician and his office manager have agreed to collectively pay the United States more than $7.2 million dollars to resolve civil allegations that they defrauded federal healthcare programs in connection with laboratory tests that were not medically necessary or were tainted by violations of the federal Anti-Kickback Statute.
Physicians’ Medical Center, LLC (“PMC”), a hospital in New Albany, Indiana, operated a clinical laboratory that was managed by the now defunct United States Medical Scientific Indiana, LLC (“US Med Sci Indiana”). The United States alleged that PMC, through its lab manager’s fraudulent conduct, violated the False Claims Act by submitting false claims for laboratory services to Medicare, Kentucky Medicaid, and TRICARE, from December 2016 to September 2018.
Federal healthcare programs only pay for laboratory services that are used for medical diagnosis or treatment. As set forth in the settlement documents, the United States alleged that PMC billed Medicare, Kentucky Medicaid, and TRICARE for urine drug tests referred by various entities – including a homeless shelter and peer-to-peer recovery centers – that did not use the test results for medical diagnosis or treatment. These nonmedical entities only used the test results to monitor clients’ compliance with the conditions of their programs and with court orders. In total, the United States alleged that PMC submitted nearly $3 million in false claims to Medicare, Kentucky Medicaid, and TRICARE, for urine drug tests referred by these nonmedical entities.
Two lab employees also entered settlement agreements to resolve their False Claims Act liability, for causing PMC’s submission of false claims for lab tests from these nonmedical entities. The United States alleged that Bobby Sturgeon, a sales representative for PMC’s laboratory, knew that these entities did not provide medical services, but nonetheless pursued and worked with them as clients. And Sturgeon financially benefited from these fraudulent sales practices because his salary was based in part on the amount insurers paid PMC for his clients’ tests, including those from the nonmedical entities. Similarly, the United States alleged that Derrick Arthur, one of the peer-to-peer recovery center’s directors, worked as a specimen collector for PMC’s lab and helped arrange for a volunteer doctor to order urine drug testing, despite knowing that the doctor did not provide medical treatment to the center’s clients. By doing so, Arthur facilitated the improper billing of laboratory tests to federal healthcare programs.
After PMC closed its laboratory in October 2018, Sturgeon became a sales representative for Bluewater Toxicology, a laboratory in Mount Washington, Kentucky. As set forth in the settlement documents, Sturgeon then caused Bluewater to submit false claims for medically unnecessary urine drug tests, from the same peer-to-peer recovery centers and homeless shelter, through July 2019. Like PMC, Bluewater knew that federal healthcare programs would not pay for urine drug tests used for nonmedical purposes, but still submitted the claims for payment. In total, the United States alleged that Bluewater submitted nearly $450,000 in false claims to Medicare and Kentucky Medicaid for urine drug tests referred by the nonmedical entities. Bluewater, Sturgeon, and Arthur have entered settlement agreements resolving their liability for the submission of Bluewater’s false claims for tests from these nonmedical entities.
In a related scheme, Steve Moore, a laboratory sales representative for PMC and Bluewater Toxicology, allegedly paid a physician, Pablo Merced, M.D., and his wife and office manager, Theresa Merced, to induce referrals of laboratory tests to PMC and Bluewater Toxicology. To gain Dr. Merced’s large volume of referrals, Moore paid cash to the Merceds and paid additional salary to lab specimen collectors who worked at their office. PMC, through its lab manager, also employed specimen collectors in Dr. Merced’s medical practice, who were alleged to perform office work unrelated to their specimen collection duties. Moore’s cash payments and the PMC lab manager’s in-kind payments to the Merceds violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b). PMC and Bluewater submitted millions of dollars of claims to federal healthcare programs for the lab tests that were tainted by their sales representative’s kickbacks. PMC, Moore, and the Merceds have entered settlement agreements resolving their liability for the submission of the false claims tainted by kickbacks.
PMC’s settlement agreement also resolved its False Claims Act liability for claims for lab tests referred by medical providers at Prescribe Recovery, a medical practice in Paris, Kentucky. The United States alleged that PMC’s lab manager, US Med Sci Indiana, actually owned Prescribe Recovery, and directed its medical providers’ referral of laboratory tests to PMC’s lab. As PMC’s lab manager, US Med Sci Indiana received 78% of the laboratory claim reimbursements paid to PMC, including the reimbursements from Prescribe Recovery. PMC’s payment of 78% of laboratory reimbursements to US Med Sci Indiana induced them (as the lab manager) to direct Prescribe Recovery’s lab referrals to PMC, and violated the Anti-Kickback Statute.
Collectively, these civil healthcare fraud settlements return more than $7.2 million to the Medicare, Kentucky Medicaid, and TRICARE programs. For their roles in the scheme as the laboratories submitting the false claims, PMC agreed to pay $5,219,000 and Bluewater Toxicology agreed to pay $895,952. Sturgeon and Moore, agreed to pay $713,466 and $40,000, respectively, to resolve their liability. Arthur agreed to pay $5,500 to resolve his liability; and Dr. and Mrs. Merced collectively agreed to pay $450,000 to resolve their liability, under the False Claims Act and Dr. Merced’s liability for separate conduct under the Controlled Substances Act. The value of Moore’s, Arthur’s, and the Merceds’ settlements included factoring in their inability to pay, based on financial disclosures.
“Through a complex patchwork of schemes, the federal government was defrauded out of millions of dollars,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “This money was appropriated to provide medical services to eligible Americans; instead, it improperly yielded proceeds to those who were submitting false claims. When fraud and abuse deplete these valuable resources, it injures all of us. With the assistance of our partners and the filing of a qui tam complaint, vital resources are now being returned to their intended purpose.”
“Individuals and entities participating in the federal health care system must comply with laws designed to protect program funds and ensure patients receive appropriate, quality care,” said Special Agent in Charge Kelly J. Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to collaborate with our law enforcement partners to hold health care providers accountable for improper payments from federal health care programs.”
The settlements resolve a lawsuit brought by a private citizen under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file a civil action on behalf of the United States, thereby bringing allegations of fraud to the Government’s attention, and share in any financial recovery. As part of this resolution, the individuals who filed the qui tam complaint will receive a portion of the settlement proceeds. The civil case is captioned United States ex rel. Clark et al. v. United States Medical Scientific, LLC, et al., Case No. 0:18-cv-109-KKC.
The settlement agreements resulted from the joint efforts of the United States Attorney’s Office for the Eastern District of Kentucky; U.S. Department of Health and Human Services, Office of Inspector General; U.S. Drug Enforcement Administration; U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service; and the Kentucky Attorney General’s Office of Medicaid Fraud and Abuse Control. The United States was represented by Assistant U.S. Attorney Meghan Stubblebine. The claims resolved by the settlements are allegations only, and there has been no determination of liability.
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Hoover Man Indicted in Connection with Murder-for-Hire PlotRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury indicted a Hoover man in connection with his solicitation of a murder-for-hire, announced U.S. Attorney Prim Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton Peeples.
A one-count indictment filed in U.S. District Court charges Mohammad A.H. Mohammad, 63, of Hoover, with use of a cell phone in attempting to hire someone to murder his selected victim. The crime allegedly occurred between August 2024 and September 2024 in Jefferson County.
The maximum penalty for use of interstate commerce facilities in the attempted commission of murder-for-hire is 10 years in prison.
The FBI investigated the case. Assistant U.S. Attorneys Jonathan S. Cross and William R. McComb are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Four Charged in Multi-State High-End Automobile Theft RingRead the Press Release
PROVIDENCE, RI – As reflected in court documents unsealed today in U.S. District Court in Providence, R.I., four Rhode Island men have been charged for their alleged participation in a conspiracy that burglarized and stole millions of dollars’ worth of high-end vehicles from automobile and motorcycle dealerships across Massachusetts, New Hampshire, Connecticut, and Pennsylvania, announced United States Attorney Zachary A. Cunha.
An indictment unsealed today charges Belter Giron, 28, of North Providence, Alberto Rivera, 24, of Cranston, as well as Richard Robinson, 32, and Onix Eduardo, 27, both of Providence, with conspiracy to commit interstate transportation of stolen property and interstate transportation of stolen property.
Additional court records unsealed today reflect that the four defendants previously appeared in federal court charged by way of criminal complaint. Alberto Rivera and Belter Giron made initial appearances in federal court on July 30, and July 31, 2024, respectively; Richard Robinson appeared on August 19, 2024; and Onix Eduardo, 27, appeared before a U.S. Magistrate on September 3, 2024. Giron and Eduardo are detained in federal custody; Rivera was returned to custody at the Rhode Island Adult Correctional Institutions, where he had been held previously; Robinson has been released on bond.
It is alleged in court documents that, between February 2023 and July 2023, members of the conspiracy burglarized a dozen dealerships and stole approximately 120 vehicles, collectively valued at approximately $5 million dollars. The majority of thefts targeted high-end, luxury vehicle brands such as Porsche, Mercedes, BMW, Rolls Royce, Bentley, Land Rover and the like. Members of the conspiracy are also alleged to have targeted a motorcycle dealership in Pennsylvania, from which they stole nineteen premium Husqvarna motorcycles. It is further alleged that eleven dirt bikes stolen from a dealership in Phillipston, MA, were brought into Rhode Island and stored at Giron’s North Providence residence.
As referenced in charging documents, an analysis of communications between members of the conspiracy allegedly revealed numerous conversations related to vehicle thefts, the use of some of the vehicles by Giron and others, and efforts to sell the stolen vehicles. It is alleged that Giron brokered the sale of stolen vehicles to associates within and outside of Rhode Island, as well as to a larger network of individuals. Surveillance video obtained by Providence Police allegedly depicts individuals matching the description of Giron and Robinson in the driveway of a Providence residence on March 13, 2023, placing a cover over a Jeep Grand Cherokee Trackhawk. The vehicle, valued at $96,000, along with three other vehicles, was reported stolen one day earlier from a Hampstead, New Hampshire dealership.
To date, law enforcement has recovered forty-one vehicles believed and eleven dirt bikes allegedly stolen by members of the conspiracy, the majority of which were recovered in Rhode Island and Massachusetts. One vehicle allegedly stolen by the group, a Range Rover, was recovered from a shipping container in Elizabeth, New Jersey, destined for Africa.
The case is being prosecuted by Assistant United States Attorneys Paul F. Daly, Jr., and Julie M. White.
A federal indictment and criminal complaints are merely accusations. A defendant is presumed innocent unless and until proven guilty.
The matter was investigated by the FBI, with substantial assistance from the Providence Police Department, Cranston Police Department, North Providence Police Department, Pawtucket Police Department, North Kingstown Police Department, East Providence Police Department, Rhode Island State Police, Massachusetts State Police, Connecticut State Police, Easton, Massachusetts Police Department, Hampstead, Massachusetts Police Department, Waltham, Massachusetts Police Department, Somerset, Massachusetts Police Department, Internal Revenue - Criminal Investigation, and the National Insurance Crime Bureau.
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indictment.pdf crimnal_complaint_affidavit.pdfFormer UC Davis and Davis Club Water Polo Coach Sentenced to over 7 Years in Prison for Distribution of Visual Depictions of Minors Engaged in Sexually Explicit ConductRead the Press Release
SACRAMENTO, Calif. — Daniel Joseph Noble, 28, residing in San Diego County, was sentenced Thursday by U.S. District Judge Daniel J. Calabretta to seven years and three months in prison for knowing distribution of visual depictions of minors engaged in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced. Noble was also ordered to pay $20,000 in restitution to the victims of his crimes.
According to court records, between March 10, 2022, and April 12, 2022, Noble participated in a Kik private group chat dedicated to sharing videos of children being sexually abused or exploited. Noble shared over a dozen video files with the Kik group. Some of those files that Noble shared showed prepubescent minors being sexually and sadistically abused by adults. At the time he engaged in this conduct, Noble was working as the assistant water polo coach for UC Davis men’s team and the associated youth team.
“This sentence of more than seven years sends a clear message that this content and the horrific abuse it depicts is neither legal nor acceptable in our society,” Special Agent in Charge Sid Patel of the FBI Sacramento Field Office stated. “The FBI continues to make the pursuit of individuals who produce, share, and consume content that is the result of abuse of a child a top priority. We are deeply committed to working with our law enforcement partners and prosecutors in an effort to protect children.”
This case was the product of an investigation by the Federal Bureau of Investigation in Sacramento and in Jacksonville, Florida, and the Sacramento Valley Hi-Tech Crimes Task Force. Assistant U.S. Attorney Christina McCall 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 those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Former North Platte Man Sentenced for Methamphetamine DistributionRead the Press Release
United States Attorney Susan Lehr announced that John Hernandez, a/k/a “Hboy,” age 36, last of Lincoln, Nebraska, but formerly of North Platte, Nebraska, was sentenced September 26, 2024, in federal court in Lincoln for distribution of 5 grams or more of actual methamphetamine. United States District Judge Susan M. Bazis sentenced Hernandez to a total of 145 months’ imprisonment. There is no parole in the federal system. After Hernandez’s release from prison, he will begin a 5-year term of supervised release.
Beginning in 2021, the FBI and CODE Drug Task Force opened an investigation into drug trafficking in the North Platte, Nebraska area. In March of 2022, law enforcement set up a controlled buy over Facebook with a third party. In the course of the buy, Hernandez was observed approaching the buy location. He was also heard on the recorded audio associated with the buy. Through surveillance and debriefings, law enforcement learned that Hernandez was the source of the meth that was sold during the controlled buy.
Law enforcement knew Hernandez to be a major source of both meth and fentanyl in the North Platte area. Law enforcement had taken reports from other drug users, concerned about Hernandez selling drugs, particularly fentanyl to young people.
In February of 2023, law enforcement responded to Hernandez’s residence and observed an 11-year-old who appeared to be under the influence of a controlled substance. In April of 2023, they recovered a Colorado runaway who had been staying at Hernandez’s house and reported using fentanyl there. The runaway was also in possession of paraphernalia frequently used to ingest fentanyl.
Hernandez’s house was the subject of a search warrant executed in May of 2023. During the execution of that warrant, Hernandez gave a Mirandized statement to officers, advising them that he was working to gather funds and planned to travel to Julesburg, Colorado to re-up his drug supply. He stated he planned on purchasing four ounces of meth and at least 100 fentanyl pills.
After being arrested in this case in Lincoln, Hernandez again gave a Mirandized statement to law enforcement. He identified himself as being the biggest meth dealer in North Platte. In talking about his various sources, Hernandez advised that he had purchased and sold at least 100 ounces of meth and approximately 2400 fentanyl pills while dealing in North Platte.
In imposing the sentence, Judge Bazis noted that Hernandez had a lengthy criminal history, which included domestic assault convictions. She surmised that Hernandez, when using drugs, is a violent and dangerous person. She also noted that investigation revealed multiple children were living in the home with Hernandez while he was dealing drugs, and he exposed them to hazardous, if not outright lethal, substances, concluding that “you have got to protect kids.”
This case was investigated by the CODE Task Force which is made up of law enforcement agencies throughout a 22-county area in west-central/southwest Nebraska and includes the North Platte Police Department, Dawson County Sheriff’s Office, Lincoln County Sheriff’s Office, Red Willow County Sheriff’s Office, Frontier County Sheriff’s Office, Nebraska State Patrol, Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI). The Lincoln Police Department’s Safe Streets Taskforce also assisted in the arrest of Hernandez.
Former FAA Contractor Indicted for Illegally Acting as an Agent of the Iranian GovernmentRead the Press Release
Note: View the indictment here.
Former Federal Aviation Administration contractor, Abouzar Rahmati, 42, a naturalized U.S. citizen and resident of Great Falls, Virginia, was indicted for acting and conspiring to act as an agent of the Iranian government in the United States without prior notice to the Attorney General. He made his initial appearance in the District of Columbia today this afternoon.
According to the indictment, from at least December 2017 through June 2024, Rahmati conspired with Iranian government officials and intelligence operatives to act on their behalf in the United States, including by meeting with Iranian intelligence officers in Iran, communicating with coconspirators using a cover story to hide his conduct, obtaining employment with an FAA contractor with access to sensitive non-public information, and obtaining open-source and non-public materials about the U.S. solar energy industry and providing it to Iranian intelligence.
“As alleged, the defendant conspired with Iranian officials and intelligence operatives, even lying to obtain employment as a U.S. government contractor only to then share sensitive government materials with Iran,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “When undisclosed agents of Iran or any other foreign government seek to infiltrate American companies or government agencies, the Justice Department will use every available tool to identify them and bring them to justice.”
“This defendant is charged with infiltrating a U.S. agency with the intent of providing Iran with sensitive information vital to our national security,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Thanks to the great work of the FBI and the FAA’s investigators, this defendant was stopped in his tracks and a known adversary’s plot was exposed.”
“This indictment describes the reprehensible actions of an individual who allegedly betrayed his country by transferring sensitive U.S. information to a foreign power. This alleged betrayal not only undermines our national security but also puts U.S. jobs and livelihoods at risk,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “We will not tolerate any actions that compromise U.S.-based sensitive information and are committed to ensuring that justice is served swiftly and decisively.”
According to the indictment, from June 2009 to May 2010, Rahmati served as a First Lieutenant in the Islamic Revolutionary Guard Corps (IRGC) — an Iranian military and counterintelligence organization under the authority of the Supreme Leader of Iran. After being discharged from the IRGC, Rahmati lied to the United States government regarding his military service with the IRGC in order to, among other things, gain employment as a U.S. government contractor.
In August 2017, Rahmati offered his services to the Iranian government through a senior Iranian government official who previously worked in Iran’s Ministry of Intelligence and Security and with whom Rahmati had previously attended university. Four months later, in December 2017, Rahmati traveled to Iran, where he met with Iranian intelligence operatives and government officials and agreed to obtain information about the U.S. solar energy industry, to provide that information to Iranian officials, and to conduct future communications under a cover story based on purported discussions about research with fellow academics.
After Rahmati returned to the United States in December 2017, he obtained various non-public and open-source materials related to the U.S. solar energy industry and provided them to an Iranian government official. Rahmati also applied for multiple positions with private companies and U.S. government entities that would provide him with access to sensitive information, eventually obtaining a position with U.S. Company 1 supporting the FAA on a contract related to the power and electrical architecture of the FAA’s National Airspace System (NAS). After Rahmati obtained the position, he informed an Iranian intelligence officer that he was “in the process of moving to and joining a new company” and that they could “work more effectively if it is finalized.”
In response to tasking from Iranian officials, and in furtherance of his agency relationship with the Government of Iran, Rahmati exploited his employment with U.S. Company 1 by downloading sensitive non-public U.S. Company 1 documents related to the FAA, storing them on removable media, and taking them to Iran, where he provided the documents to the Government of Iran in April 2022. These included documents related to the NAS that would give a person unfamiliar with NAS facility engineering a reasonable understanding of how the NAS power and electrical architecture is configured.
After he returned to the United States in April 2022, in response to tasking from Iranian government officials, Rahmati sent additional information relating to solar energy, solar panels, the FAA, U.S. airports, and U.S. air traffic control towers to his brother, a co-conspirator, so that he would provide those files to Iranian intelligence on behalf of Rahmati.
The FBI Washington Field Office is investigating the case. FAA’s Office of Counterintelligence and Technical Operations provided significant assistance.
Assistant U.S. Attorneys Christopher Tortorice and Kimberly Paschall for the District of Columbia and Trial Attorneys Beau Barnes and Alexander Wharton of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. The U.S. Attorney’s Office for the Eastern District of Virginia provided significant assistance.
Former FAA Contractor Indicted for Illegally Acting as an Agent of the Iranian GovernmentRead the Press Release
WASHINGTON – Former Federal Aviation Administration contractor Abouzar Rahmati, 42, a naturalized U.S. citizen and resident of Great Falls, Virginia, was indicted today for acting and conspiring to act as an illegal agent of the Iranian government in the United States.
The announcement was made by U.S. Attorney Matthew M. Graves, Assistant Attorney General Matthew G. Olsen, and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
According to the indictment, from at least December 2017 through June 2024, Rahmati conspired with Iranian government officials and intelligence operatives to act on their behalf in the United States, including by meeting with Iranian intelligence officers in Iran, communicating by email using a cover story to hide his conduct, obtaining open-source and private materials about the U.S. solar energy industry to provide to Iranian intelligence, obtaining employment with an FAA contractor with access to sensitive information, and exfiltrating sensitive FAA documents to provide to Iranian intelligence.
“This defendant is charged with infiltrating a U.S. agency with the intent of providing Iran with sensitive information vital to our national security,” said U.S. Attorney Graves. “Thanks to the great work of the FBI and the FAA’s investigators, this defendant was stopped in his tracks and a known adversary’s plot was exposed.”
“As alleged, the defendant conspired with Iranian officials and intelligence operatives, even lying to obtain employment as a U.S. government contractor only to then share sensitive government materials with Iran,” Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “When undisclosed agents of Iran or any other foreign government seek to infiltrate American companies or government agencies, the Justice Department will use every available tool to identify them and bring them to justice.”
“The FBI and U.S. Government have repeatedly warned of the global threat the Government of Iran poses to our national security on all fronts, including the targeting of our critical infrastructure,” said Sundberg, Assistant Director in Charge of the FBI Washington Field Office. “Mr. Rahmati used his access to provide sensitive aviation materials to a hostile foreign intelligence service. The FBI will aggressively pursue any foreign actor or government that targets U.S. critical infrastructure in any attempt to disrupt or gain access to our aviation sector. We want to recognize and thank our partners at the FAA who worked alongside us in investigating this threat to our national security.”
According to the indictment, from June 2009 to May 2010, Rahmati served as a First Lieutenant in the Islamic Revolutionary Guard Corps (IRGC)—an Iranian military and counterintelligence organization under the authority of the Supreme Leader of Iran which has been designated a Foreign Terrorist Organization by the United States Government. After being discharged from the IRGC, Rahmati lied to the United States government regarding his military service with the IRGC in order to, among other things, gain employment as a U.S. government contractor.
In August 2017, Rahmati offered his services to the Iranian government through a senior Iranian government official who previously worked in Iran’s Ministry of Intelligence and Security and with whom Rahmati had previously attended university. Four months later, in December 2017, Rahmati traveled to Iran, where he met with Iranian intelligence operatives and government officials and agreed to obtain information about the U.S. solar energy industry, to provide that information to Iranian officials, and to conduct future communications under a cover story based on purported discussions about research with fellow academics.
After Rahmati returned to the United States in December 2017, he obtained various private and open-source materials related to the U.S. solar energy industry and provided them to an Iranian government official. Rahmati also applied for multiple positions with private companies and U.S. government entities that would provide him with access to sensitive information, eventually obtaining a position with U.S. COMPANY 1 supporting the FAA on a contract related to the FAA’s National Airspace System (NAS). After Rahmati obtained the position, he informed an Iranian intelligence officer that he was “in the process of moving to and joining a new company” and that they could “work more effectively if it is finalized.”
In response to tasking from Iranian officials, and in furtherance of his agency relationship with the Government of Iran, Rahmati exploited his employment with U.S. COMPANY 1 by downloading sensitive U.S. COMPANY 1 documents related to the FAA, storing them on removable media, and taking them to Iran, where he provided sensitive documents to the Government of Iran in April 2022. These included documents related to the NAS that would give a person unfamiliar with NAS facility engineering a reasonable understanding of how the NAS power and electrical architecture is configured.
After he returned to the United States in April 2022, in response to tasking from Iranian government officials, Rahmati sent additional information relating to solar energy, solar panels, the FAA, U.S. airports, and U.S. air traffic control towers to his brother, a co-conspirator, so that he would provide those files to Iranian intelligence on behalf of Rahmati.
This case is being investigated by the FBI’s Washington Field Office. Significant assistance was provided by the FAA’s Office of Investigations and Professional Responsibility.
The case is being prosecuted by Assistant U.S. Attorneys Christopher Tortorice and Kimberly Paschall for the District of Columbia and Trial Attorneys Beau Barnes and Alexander Wharton of the National Security Division’s Counterintelligence and Export Control Section. Significant assistance was provided by the U.S. Attorney’s Office for the Eastern District of Virginia.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
20240927_rahmati_indictment.pdf###
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Former Executive Director of Southwest Regional Recreation Authority Admits to Embezzling Funds from Spearhead Trail SystemRead the Press Release
ABINGDON, Va. – The former Executive Director of the Southwest Regional Recreation Authority (SRRA) pled guilty yesterday in federal court to bank fraud and embezzlement associated with her scheme to steal money intended for the Spearhead Trail System within the counties of Buchanan, Dickinson, Lee, Russell, Scott, Tazwell, Wise and the City of Norton.
Melissa Slemp, Rose, 56, of Coeburn, Virginia, waived her right to be indicted and pled guilty to a two-count Information charging her with one count of bank fraud and one count of embezzlement.
The SRRA was established in 2008 to oversee the development and management of the Spearhead Trail System. Spearhead Trails consists of three outdoor recreation tourism destinations within its complex. The SRRA receives approximately $1.1 million of general funds per year to operate, including federal funds.
Rose was hired on July 23, 2019, as the Sales and Finance Manager for SRRA. The SRRA Board of Directors promoted Rose to Executive Director in October 2021. As Executive Director, Rose was responsible for the day-to-day operations of the SRRA and the Spearhead Trail System. She resigned from her position on February 3, 2023, following an investigation concerning embezzlement of SRRA funds.
According to court documents, on January 23, 2023, the SRRA learned that Rose had used SRRA funds for her personal use. Specifically, Rose wrote $16,614 in checks drawn on the SRRA’s bank account that were purportedly signed by another SRRA board member. The checks were drawn on the SRRA First Bank and Trust Company account and were for the purchase of a residential property priced at $69,5000 with a $15,000 down payment. The property was for Rose’s personal use. In an attempt to hide her fraud, Rose logged her payments for the residential property into the SRRA’s QuickBooks account management system as purchases for “Tools” with “Land Lease for 5 Years on Mountainview Trail for Conex & SXS Storage” written in the description. She also prepared a fraudulent purchase order and a fraudulent lease for the property, again forging a signature of another SRRA employee.
U.S. Attorney Christopher R. Kavanaugh and Virginia Attorney General Jason Miyares made the announcement.
The case was investigated by the Virginia State Police and the U.S. Attorney’s Office’s Financial Fraud Investigator.
Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, is prosecuting the case.
Former Employee of Global Security and Aerospace Company Charged with Mail Fraud, Theft of Government PropertyRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Omar Naziry, a former employee of a global security and aerospace company, with mail fraud for falsely representing he was in the military to obtain pay and benefits. The defendant made his initial appearance in the Northern District of California on Sept. 25, 2024.
According to an indictment filed July 24, 2024, and unsealed Aug. 22, 2024, Naziry, 40, a resident of Mountain View, Calif., worked for Company 1. Company 1 had a policy under which it paid a differential to any employee who went on military leave. The differential was the difference between the employee’s company pay and military pay. The policy — which was first instituted following the Sept. 11, 2001 terrorist attacks and later expanded to cover all forms of military leave — ensured the employee experienced no reduction in income because of his or her military service.
The indictment alleges that beginning in or around August 2016, Naziry requested differential pay from Company 1 on the purported basis that he was deploying with the U.S. military in support of Operation Inherent Resolve, a U.S. military command established in or about October 2014. In support of his request, Naziry allegedly sent false military orders and a false military leave and earnings statement. Based on these representations, Company 1 awarded Naziry differential pay. Naziry allegedly continued to receive differential pay over the next several years on the purported basis that his deployment had been extended.
In or about December 2021, Company 1 informed Naziry that it was denying his request for additional differential pay on the basis that he had exhausted the five-year differential pay limit. In response, Naziry allegedly caused to be sent a letter to Company 1 authored by a “friend” and “army officer” stationed in Hawaii decrying the decision and claiming that an article would be forthcoming. As detailed in the indictment, the letter stated, “I highly recommend you overturn this decision you’ve made or at least have a plan in place for how to mitigate the negative effects of the story once its [sic] public . . . . I hope you can take timely action to avoid this PR disaster.”
Naziry is charged with a single count of mail fraud. If convicted of mail fraud, he faces a maximum sentence of 20 years in prison and a fine of $250,000.
Naziry is also charged in a separate indictment filed July 24, 2024, and unsealed Aug. 22, 2024 with a single count of theft of government property. According to the indictment, Naziry wrongfully obtained approximately $35,093 in housing assistance payments to which he was not entitled. If convicted, he faces a maximum sentence of 10 years in prison and a fine of $250,000.
However, any sentence following conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. An indictment merely alleges that crimes have been committed and the defendant is presumed innocent unless and until proven guilty.
The announcement was made by U.S. Attorney Ismail J. Ramsey, Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office, and U.S. Department of Housing and Urban Development, Office of Inspector General (HUD OIG) Special Agent in Charge Mark Kaminsky.
The case is being handled by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorney Ryan Rezaei is prosecuting the case with the assistance of Amala James and Kevin Costello. The prosecution is the result of an investigation by DCIS and HUD OIG.
- Omar Naziry Indictment Theft
- Omar Naziry Indictment Fraud
Former Connecticut Resident Sentenced to Prison for Tax FraudRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that KEVIN BIEBEL, 72, of Hardeeville, South Carolina, formerly of New Milford, Connecticut, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 18 months of imprisonment, followed by one year of supervised release, for tax fraud.
According to court documents and statements made in court, Biebel operated Art Metal Industries, LLC (“AMI”), a metal fabrication business. In 2017, AMI had total gross receipts of more $1.5 million and a net profit of more than $550,000. That year, Biebel transferred more than $350,000 from AMI to his personal bank account for various personal expenditures. In 2018, the IRS sought to collect delinquent payroll taxes from Biebel for AMI and instructed Biebel to file delinquent Individual Income Tax Returns (Forms 1040) for the 2016 and 2017 tax years. In September 2018, Biebel filed the returns, which fraudulently reported that he had zero total income and zero total tax due for both years.
In 2018, AMI received more than $2.7 million in gross receipts and had a profit of more than $1.2 million. That year, Biebel transferred funds from an AMI bank account to his personal bank account and another bank account held in the name of Diego Trust LLC, a limited liability company for which Biebel was the sole listed member. Biebel used more than $750,000 in funds from those accounts to purchase a home in South Carolina and other assets.
Biebel also failed to file individual income tax returns for 2018, 2019, and 2020 tax years.
Between 2016 and 2020, Biebel failed to report more than $2.8 million in business income from AMI, resulting in a tax loss of approximately $900,000. In addition, he failed to withhold and pay over approximately $300,000 in employment taxes.
Judge Dooley ordered Biebel to pay $1,208,801 in restitution.
On April 30, 2024, Biebel pleaded guilty to filing a false tax return.
Biebel, who is released on a $50,000 bond, is required to report to prison on January 7.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Former Candidate for 13th Congressional District of Florida Charged for Election-Related Threat to Former Primary Candidate and Private CitizenRead the Press Release
Tampa, FL – An indictment was unsealed yesterday charging a Florida man with threatening to kill his primary opponent in the 2021 election for the 13th Congressional District of Florida and a private citizen and acquaintance of his opponent.
According to the indictment, William Robert Braddock III, 41, of St. Petersburg, and Victim 1 were candidates in the primary election to represent the 13th Congressional District of Florida in the U.S. House of Representatives. Victim 2 was a private citizen and acquaintance of Victim 1. On June 8, 2021, Braddock made several threats to injure and kill Victim 1 and Victim 2 during a telephone call with Victim 2. Specifically, Braddock threatened, in part, to “call up my Russian-Ukrainian hit squad” and make Victim 1 disappear. After making the threats, Braddock left the United States and was later found to be residing in the Philippines. Braddock was recently deported from the Philippines to the United States and made his first court appearance yesterday in Los Angeles.
Braddock is charged with one count of interstate transmission of a true threat to injure another person. If convicted, Braddock faces a maximum penalty of five years in prison. 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, and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
The FBI Tampa Field Office is investigating the case with support from the St. Petersburg Police Department. The Justice Department’s Office of International Affairs, FBI’s Office of the Legal Attaché in Manila, and U.S. Marshals Service provided substantial assistance. The investigation also benefited from foreign law enforcement cooperation provided by the Philippine Department of Justice and Philippine Bureau of Immigration.
Trial Attorney Alexandre Dempsey of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Carlton Gammons for the Middle District of Florida are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by PIN and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Candidate for 13th Congressional District of Florida Charged for Election-Related Threat to Former Primary Candidate and Private CitizenRead the Press Release
An indictment was unsealed yesterday charging a Florida man with threatening to kill his primary opponent in the 2021 election for the 13th Congressional District of Florida and a private citizen and acquaintance of his opponent.
According to the indictment, William Robert Braddock III, 41, of St. Petersburg, and Victim 1 were candidates in the primary election to represent the 13th Congressional District of Florida in the U.S. House of Representatives. Victim 2 was a private citizen and acquaintance of Victim 1. On June 8, 2021, Braddock made several threats to injure and kill Victim 1 and Victim 2 during a telephone call with Victim 2. Specifically, Braddock threatened, in part, to “call up my Russian-Ukrainian hit squad” and make Victim 1 disappear. After making the threats, Braddock left the United States and was later found to be residing in the Philippines. Braddock was recently deported from the Philippines to the United States and made his first court appearance yesterday in Los Angeles.
Braddock is charged with one count of interstate transmission of a true threat to injure another person. If convicted, Braddock faces a maximum penalty of five years in prison. 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, and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
The FBI Tampa Field Office is investigating the case with support from the St. Petersburg Police Department. The Justice Department’s Office of International Affairs, FBI’s Office of the Legal Attaché in Manila, and U.S. Marshals Service provided substantial assistance. The investigation also benefited from foreign law enforcement cooperation provided by the Philippine Department of Justice and Philippine Bureau of Immigration.
Trial Attorney Alexandre Dempsey of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Carlton Gammons for the Middle District of Florida are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by PIN and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Florida Tax Return Preparer Agrees to Shut Down Tax Prep Business and to Pay $134,400Read the Press Release
The U.S. District Court for the Southern District of Florida issued a permanent injunction today against Fort Lauderdale, Florida, tax return preparer Dexter Bataille, individually and doing business as Capital Financial Group Holdings LLC. The court ordered the closure of Bataille’s business, Capital Financial Holdings LLC, and barred him from preparing or assisting in preparing federal income tax returns or transferring his customer lists. The court also ordered Bataille to pay $134,400 in ill-gotten gains he received from his return preparation business. Bataille agreed to both the injunction and the order to pay $134,400.
The complaint alleged that Bataille prepared customers’ returns that fraudulently claimed various false or inflated deductions and credits, including fabricated, false and exaggerated profits and expenses to generate inflated business losses; misreported filing statuses and dependent claims; and false reports of household help income.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid "ghost preparers" and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
USA v. Bataille Consent Injunction and Disgorgement Order.pdfFlorida Financial Advisor Charged with Promoting Illegal Tax Shelter, Stealing Clients’ Funds and Money LaunderingRead the Press Release
A federal grand jury in Gulfport, Mississippi, returned an indictment, unsealed yesterday, charging a Florida financial advisor with a years-long scheme to promote and operate an illegal tax shelter, stealing some of his clients’ funds and money laundering.
According to the indictment, Stephen T. Mellinger III, of Florida, was a securities broker, financial advisor and insurance salesman. Beginning in late 2013, Mellinger allegedly conspired with several others to defraud the IRS by promoting an illegal tax shelter.
Mellinger allegedly instructed clients participating in the shelter, including clients in Mississippi, to transfer money to a company controlled by Mellinger or his co-conspirators in the amount they wished to claim as a deduction on their tax returns. The conspirators then allegedly returned the money to a bank account that clients controlled less a percentage fee that they charged for their services. Even though tax shelter clients received their money back, Mellinger allegedly directed them to claim the transfer to the company as a deduction on their tax returns, and to label the deduction as a “royalty” payment. Mellinger allegedly earned more than $3 million in fees from the shelter.
Also, in January 2016, the federal government allegedly seized funds from some of Mellinger’s clients, who were engaged in a scheme to defraud health care benefit programs, including TRICARE, the U.S. Department of Defense’s health care benefit program. Mellinger conspired with a close relative to take advantage of the seizure to steal some of the money that those clients had transferred through the tax shelter. Mellinger then allegedly laundered the stolen funds, which he knew were proceeds of healthcare fraud. Ultimately, he allegedly used some of the funds he stole from his clients to buy a home in Delray Beach, Florida.
Mellinger was charged with conspiracy to defraud the United States, aiding in the preparation of false tax returns, conspiracy to commit wire fraud, conspiracy to commit money laundering and money laundering. If convicted, Mellinger faces a maximum penalty of five years in prison for conspiring to defraud the IRS, a maximum penalty of three years in prison for each substantive count of aiding in the preparation of false tax returns, a maximum penalty of 20 years in prison for conspiring to commit wire fraud, a maximum penalty of 20 years in prison for conspiring to commit money laundering and a maximum penalty of 20 years in prison for each substantive count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Todd W. Gee for the Southern District of Mississippi made the announcement.
IRS Criminal Investigation and Defense Criminal Investigative Service are investigating the case.
Trial Attorneys William Montague, Richard J. Hagerman and Matthew Hicks of the Tax Division, Assistant U.S. Attorney Charles W. Kirkham for the Southern District of Mississippi and Trial Attorneys Emily Cohen and Jasmin Salehi Fashami of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mellinger Indictment.pdfFederal Court Orders Kentwood Veterinarian to Pay $35,000 in Penalties and to Cease Dispensing Controlled SubstancesRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that U.S. District Court Judge Paul L. Maloney entered a consent decree that orders Ronald E. Zylstra, D.V.M., to pay $35,000 in civil penalties, cease dispensing controlled substances for five years, and abide by other restrictions on his handling of controlled substances. The consent decree resolves allegations in a complaint the United States filed against Dr. Zylstra for violating the Controlled Substances Act (CSA).
“Practitioners who dispense controlled substances must adhere to their recordkeeping obligations under federal law, which are critical to preventing and detecting diversion,” said U.S. Attorney Mark Totten. “As we fight the opioid epidemic, my office will continue to work with DEA and other law enforcement agencies to combat this and other controlled-substance violations.”
The United States’ complaint alleged that Dr. Zylstra, who owns and practices at Kentwood Veterinary Clinic, failed to meet multiple recordkeeping obligations. Most significantly, the complaint asserts that when Drug Enforcement Administration (DEA) investigators inspected Kentwood Veterinary Clinic, an audit revealed that over 41,000 opioid and benzodiazepine tablets were unaccounted for. It also alleges that Dr. Zylstra failed to fulfill other recordkeeping obligations, including recording the receipt of Schedule II controlled substances and conducting an inventory of controlled substances at least every two years.
The $35,000 civil penalty was negotiated based on Dr. Zylstra’s inability to pay a larger amount. In addition to this penalty and the five-year prohibition on dispensing controlled substances, the consent decree limits to whom he can prescribe, restricts which controlled substances he can order and administer during procedures, and subjects him to increased DEA monitoring for five years.
“DEA is committed to ensuring registrants adhere to the laws set forth in the Controlled Substance Act, to include recordkeeping – an integral step in preventing the diversion of controlled substances,” said Orville Green, Special Agent in Charge of the Detroit Field Division of DEA. “When medical professionals fail to comply with these laws, it puts our communities and lives at risk. We will continue to work with our regulatory partners to hold registrants accountable and ensure West Michigan communities remain healthy and safe.”
The resolution obtained in this case was the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and the DEA. Assistant U.S. Attorneys Whitney M. Schnurr and Andrew J. Hull handled this case.
The complaint and consent decree in this case can be found on the Court’s online docket under United States v. Ronald E. Zylstra, D.V.M., No. 1:24-cv-00963 (W.D. Mich.).
The claims resolved by the consent decree are allegations only and there has been no determination of liability.
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Electrostim Medical Services, Inc. and Mario Garcia, Jr. to Pay $20 Million to Resolve Allegations of Billing for Excessive and Unnecessary SuppliesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that Florida-based durable medical equipment supplier Electrostim Medical Services, Inc. (EMSI) and its Founder and Chairman Mario Garcia, Jr. have together agreed to pay, based on their limited ability to do so, $20 million to resolve allegations that they violated the False Claims Act by billing federal healthcare programs for excessive and medically unnecessary supplies associated with Transcutaneous Electrical Nerve Stimulation (TENS) and related devices.
TENS units provide short-term pain relief for many patients by delivering a low-voltage electrical current to the skin around an affected body part. Among the supplies necessary for TENS use are electrodes, which transmit the current, and rechargeable batteries, which power the device. In limited circumstances, healthcare providers may prescribe a wearable garment containing electrodes, such as a specialized glove or sock, to be used instead of traditional electrodes for appropriate patients. For extended use, electrodes and rechargeable batteries require occasional replacement.
When a physician prescribes a TENS or related device for home use, a durable medical equipment supplier, such as EMSI, receives a referral; provides the patient with a device kit, containing the device and all supplies necessary for approximately one month of use; and submits a single claim for reimbursement under a billing code for the kit. Garments are separately reimbursable under a different code. Federal healthcare programs vary in how they reimburse for replacement supplies. Some programs, such as Medicare, permit monthly billing for all medically necessary supplies at a fixed rate under a “bundled” supply code. Other programs—including TRICARE, the federal healthcare program for military members, retirees, and their families—permit itemized billing for all medically necessary supplies using “unbundled” supply codes.
The government alleges that, from at least 2018 through 2019, EMSI and Garcia profited by marketing its TENS and related electrical stimulation devices to beneficiaries of federal healthcare programs that reimbursed for unbundled supply codes—primarily TRICARE. EMSI typically billed TRICARE for replacement supplies on a monthly basis, including improperly billing for supplies during the first month despite knowing that patients received kits that contained all initial supplies. EMSI’s improper billing practices also included submitting claims for a monthly resupply of traditional electrodes for the same beneficiaries to whom it billed for a garment, despite knowing that patients with a garment did not need traditional electrodes.
According to the government, EMSI and Garcia knowingly executed this scheme without regard to medical necessity, resulting in false claims to federal programs. The result was that many TRICARE beneficiaries were forced to pay co-pays for excessive amounts of supplies they did not need or want.
“Durable medical equipment suppliers play a vital role in providing safe and effective medical devices to patients in need, and especially to our brave service members and their families,” said U.S. Attorney Romero. “EMSI and Garcia served their own financial interests over and above the medical needs of patients. This conduct will not be tolerated by my office. We will work tirelessly to hold businesses like this to account.”
Acting Special Agent in Charge Brian J. Solecki, with the Defense Criminal Investigative Service (DCIS) Northeast Field Office, echoed the U.S. Attorney’s remarks. “Protecting the integrity of TRICARE is a top priority of DCIS, the law enforcement arm of the Department of Defense Office of Inspector General,” he stated. “Medically unnecessary services and fraudulent expenses place a tremendous burden on the TRICARE program. We will continue to work with the U.S. Attorney’s Office and our law enforcement partners to ensure that individuals who engage in fraudulent activity, at the expense of the U.S. military, are held accountable for their actions.”
“The U.S. Department of Labor, Office of Inspector General remains committed to working with the U.S. Attorney’s Office and our law enforcement partners to investigate allegations involving medical provider billing schemes that target programs administered by the U.S. Department of Labor,” said Syreeta Scott, Special Agent in Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General.
This resolution concludes a years-long investigation by agents from DCIS, DOL-OIG, the Office of Personnel Management, Office of Inspector General (OPM-OIG), United States Postal Service, Office of Inspector General (USPS-OIG), and Department of Veterans Affairs, Office of Inspector General (VA-OIG).
Assistant United States Attorneys Charlene Keller Fullmer, Bryan C. Hughes, and former Assistant United States Attorney John T. Crutchlow handled the civil investigation and settlement, assisted by Auditor George Niedzwicki.
The claims asserted by the United States are allegations only. There has been no determination of liability.
Debra Kelly Agrees to Pay $200,000 to Resolve False Claims Act Violations in Connection with Post-9/11 GI Bill Education BenefitsRead the Press Release
CONCORD – United States Attorney Jane E. Young announces that Debra Kelly agrees to pay $200,000 to resolve allegations that she violated the False Claims Act by misrepresenting lawn care classes held by Natural Technologies, Inc. d/b/a NTI Organic Lawn Care Institute (“NTI”), to obtain Post-9/11 GI Bill reimbursements from the United States Department of Veterans Affairs (VA) for their veteran students.
“The Post-9/11 GI Bill educational assistance benefits are part of our promise to the brave women and men who have served our country,” said U.S. Attorney Jane E. Young. “This case is indicative of the District of New Hampshire’s continuing commitment to root out fraud involving government programs and to help safeguard the integrity of VA programs intended for the advancement and benefit of veterans.”
The Post-9/11 GI Bill is a VA educational benefit program for veterans who served on active duty after September 10, 2001. As part of that program, the VA provides tuition and fee payments directly to qualifying schools on behalf of eligible veterans. In order for a school to qualify for the program, it is required to certify to the VA that no more than 85% of the students for any particular course are receiving VA benefits. This requirement, commonly referred to as the “85-15% Rule,” is intended to prevent abuse of Post-9/11 GI Bill funding by ensuring that the VA is paying fair market value tuition rates. In addition, a school may not charge more for veterans to attend a course than it charges civilians to attend the same course. Schools that receive Post-9/11 GI Bill funding are required to certify their continued compliance with this rule and notify the VA in the event they are no longer in compliance.
As Vice President and the certifying official for NTI on VA forms, Kelly certified more than $1.2 million in GI Bill benefits from 2018-2019. Starting in at least 2018, NTI filled its classes with more than 85% veterans in violation of the “85-15 Rule.” It also charged non-veterans discounted tuition rates. Kelly certified compliance with the 85-15 ratio requirement in the student enrollment certification, which she submitted alongside claims for tuition payments for each veteran student receiving VA benefits.
During NTI’s participation in the VA benefits program, the VA conducted compliance reviews of the school. Kelly concealed NTI’s violations of the 85-15 Rule in these surveys, including the fact that NTI charged non-veterans reduced tuition. During these reviews, she provided false information to mislead VA auditors.
The VA-OIG led the investigation. Assistant U.S. Attorney Raphael Katz handled the case.
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Convicted Felon Sentenced to More Than Five Years for Illegal Possession of A FirearmRead the Press Release
CHARLOTTE, N.C. – Marcus Terrell Halsey, 36, of Charlotte, was sentenced yesterday to 63 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Halsey’s sentence was enhanced for reckless flight from police officers and possession of a stolen vehicle in connection with the gun offense.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to documents filed with the court and the sentencing hearing, on May 15, 2023, a detective with CMPD’s Stolen Car and Recovery Law Enforcement Team (SCARLET) viewed an Instagram video where Halsey appeared on a live feed standing outside a tire shop in the area with an orange Dodge Charger. CMPD detectives determined that based on the tag displayed on the Dodge Charger the vehicle may have been stolen. Also, during the live video, Halsey got into the Dodge Charger and lifted up his shirt, revealing a firearm in his waistband. Based on the fictitious tag, the presence of the firearm, and Halsey’s criminal history, CMPD officers were dispatched to the tire shop.
According to court records, CMPD officers encountered Halsey as he drove away from the tire shop in the Dodge Charger and attempted to make a traffic stop. Halsey did not stop and instead recklessly fled at a high rate of speed, traveling over 80 mph in a 35 mph zone. Court records show that CMPD’s aviation unit followed Halsey to Charlotte Douglas International Airport and located the Dodge Charger in a parking deck at the airport. Halsey was apprehended shortly thereafter near the arrivals area at the airport. At the time of his arrest, Halsey was carrying a black backpack that contained a firearm and ammunition, multiple Dodge vehicle fobs, two fictitious 30-day vehicle tags, a screwdriver and hammer, a digital scale, and suspected controlled substances. The Dodge Charger was determined to be stolen. Halsey has prior criminal convictions and is prohibited from possessing firearms or ammunition.
On February 9, 2024, Halsey pleaded guilty to possession of a firearm by a convicted felon. Halsey will remain in the custody of the U.S. Marshals Service pending designation of a federal facility by the Federal Burau of Prisons.
In making todays’ announcement, U.S. Attorney King thanked the ATF and commended CMPD’s SCARLET unit for their investigation of the case.
Assistant U.S. Attorney William Bozin of the U.S. Attorney’s Office in Charlotte 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.
Convicted Corporate Raider, His Longtime Accountant, and Vaping Company Charged in Indictment Alleging Conspiracy and FraudRead the Press Release
LOS ANGELES – A corporate takeover specialist and convicted felon has been indicted on federal charges for his alleged years-long avoidance of a judgment – now exceeding $180 million – to the U.S. Securities and Exchange Commission (SEC) while running a cannabis and lifestyle brand company purportedly helmed by his social media influencer son – a company whose investors he allegedly cheated, the Justice Department announced today.
The nine-count indictment returned on Thursday charges the following defendants with one count of conspiracy to defraud the United States, one count of conspiracy to commit wire fraud and securities fraud, and four counts of wire fraud:
- Paul A. Bilzerian, 74, a resident of St. Kitts and Nevis and a former U.S. citizen who was convicted in 1989 in the Southern District of New York of securities fraud and was sentenced to four years in federal prison for that crime; and
- Ignite International Brands Ltd., a formerly publicly traded, Canada-based cannabis company that previously operated out of Los Angeles and whose CEO was Bilzerian’s son, a social media influencer identified in the indictment as “D.B.”
A third defendant charged – and arrested today – is:
- Scott Rohleder, 61, of Morrisville, North Carolina, Bilzerian’s long-time accountant who held various roles at Ignite, including chief financial officer, is charged with one count of conspiracy to defraud the United States, one count of conspiracy to commit wire fraud and securities fraud, three counts of wire fraud, and three counts of assisting with the preparation of false tax returns.
“This indictment alleges a long-running pattern of criminal behavior to avoid a regulator’s judgment, mislead investors, and cheat the IRS,” said United States Attorney Martin Estrada. “My office will continue to use all tools available to protect investors and ensure the security of our nation’s economy.”
According to the indictment, the SEC in 1989 brought a civil action against Bilzerian based on the same securities violations that led to his criminal conviction in the Southern District of New York, for which defendant was sentenced to four years in prison. In 1993, the SEC obtained civil judgments totaling approximately $62,337,600 against Bilzerian. Since then, Bilzerian has evaded enforcement of the judgments. In 2000, a federal court found Bilzerian in contempt of the SEC judgments and appointed a receiver to collect his assets to satisfy them. The SEC has only recovered approximately $547,000 toward satisfaction of the judgments, which now – with interest – exceed $180 million.
From December 2018 to September 2024, Bilzerian, Rohleder, and Ignite allegedly conspired to impede the SEC from collecting on the judgments. To do so, Bilzerian operated numerous shell companies, including International Investments Ltd., in the United States while concealing his interest in and control over those companies by using various nominee owners. To continue to deploy his wealth in the United States while evading the SEC judgments, Bilzerian – with Rohleder’s help – funneled millions of dollars of his assets through his shell companies to fund Ignite while concealing his role in the company’s ownership and management. Meanwhile, to avoid paying the SEC judgments, Bilzerian falsely represented that he was indigent, including by providing false financial disclosures that omitted his considerable assets.
On paper, Ignite’s CEO was Bilzerian’s son D.B. – a professional poker player who gained notoriety on social media for his glamorous and ostentatious lifestyle. In fact, Bilzerian exercised de facto control of the company. Together with Rohleder, Bilzerian oversaw Ignite’s operations, strategy, marketing, and fundraising, to the point of holding daily management meetings. Bilzerian also exerted significant influence in decisions to hire and fire Ignite’s executives and members of its board of directors.
Despite Bilzerian’s prominent leadership role at Ignite, the defendants concealed his involvement, including by omitting his name in publicly filed disclosures. After learning that federal law enforcement had become aware of Bilzerian’s involvement in Ignite, the company also issued a press release that misleadingly characterized Bilzerian and Rohleder as “unpaid consultants” for Ignite.
The defendants also allegedly misled Ignite’s investors by making materially false statements about the company’s revenues for the fourth quarter of 2020, inflating sales figures by including unsold inventory stored by a different business. In January 2021, after Ignite issued a false and misleading press release about its sales, its share price increased from 42 cents to $1.20 per share, representing a gain of approximately $84 million in market capitalization.
Months later, when Ignite’s auditor could not verify the sale of the unsold inventory, Bilzerian caused Ignite to “sell” approximately $4.63 million in vape products to a shell company he controlled. Bilzerian and Rohleder backdated the sale to make it falsely appear that it occurred in 2020. In later reporting the “sale” to Ignite’s investors, the defendants concealed Bilzerian’s ownership of the shell company and the fact that the shell company was not a vape product distributor, meaning it could only sell the inventory by competing with Ignite.
Finally, Rohleder allegedly assisted in the preparation of D.B.’s tax returns, which included false and fraudulent representations that caused a tax loss of approximately $1,536,949 to the IRS for the tax years 2018 to 2020. Rohleder did so by falsely characterizing D.B.’s Las Vegas mansion, which he purchased in 2018 for $8.5 million, as a rental property. When listing D.B.’s personal address on the tax returns, Rohleder used an address corresponding to a hangar at Harry Reid International Airport. Rohleder also lied to D.B.’s tax preparer by stating that D.B.’s November 2018 sale of Ignite stock was a “long-term” capital gain (to be taxed at a lower rate) instead of being a “short-term” capital gain, which would have resulted in a higher tax bill.
“This indictment sends a strong message that no matter how criminals try to hide, the FBI will aggressively investigate those who commit such financial fraud and shirk their obligation to make American taxpayers whole” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “These individuals will now face justice for fraudulently profiting from this elaborate scheme and hopefully the public’s trust in a fair market will be restored.”
“The allegations against Mr. Bilzerian and his co-defendants paint a picture of a long-running, complex scheme to avoid their financial obligations,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Playing a shell game with money may work in the short term, but IRS Criminal Investigation is the best in the business at finding and following the trail that money always leaves and, especially when our skillsets are paired with those of our fellow law enforcement agencies, there is little chance of evading indictments such as this one.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of all charges, Bilzerian and Rohleder would face a statutory maximum sentence of five years in federal prison for each conspiracy count and up to 20 years in federal prison for each wire fraud count. Rohleder would face up to three years in federal prison for each tax fraud count.
The SEC today filed civil charges against Bilzerian, Rohleder, and Ignite in connection with the facts alleged in this criminal case.
The FBI and IRS Criminal Investigation are investigating this matter.
Assistant United States Attorneys Alexander B. Schwab of the Corporate and Securities Fraud Strike Force and David H. Chao of the General Crimes Section are prosecuting this case.
Columbus man pleads guilty to aiding and abetting armed postal robberyRead the Press Release
COLUMBUS, Ohio – A sixth co-conspirator in a network of defendants connected to six local armed robberies of postal carriers pleaded guilty in U.S. District Court today.
Malachi S. Royster, 21, pleaded guilty to aiding and abetting aggravated robbery of property of the United States and aiding and abetting the use of a firearm during a crime of violence.
Royster admitted that he helped pre-plan a May 11, 2023, robbery of a postal carrier. He accompanied co-conspirators that morning while they scouted for potential postal workers to rob; served as the getaway driver before, during and after the robbery on West Broad St.; and accompanied co-conspirators while they returned the firearm used in the robbery to other co-conspirators. Royster’s plea agreement includes a sentence recommendation of 60 to 84 months in prison.
Royster is one of six men charged in connection with six central Ohio postal robberies between November 2022 and May 2023.
Anthony J. “A.J.” Williams, 20, of Columbus, was the gunman in a Nov. 9, 2022, postal carrier robbery. Williams committed the armed robbery of a USPS letter carrier who was delivering mail on Michigan Ave. in Columbus. The postal carrier was delivering mail to an apartment complex’s “cluster box” at the time. Williams approached the mail carrier and brandished the handgun directly at the victim. Williams demanded the victim’s postal keys and then yanked the postal keys off of the carrier’s belt. Williams also admitted to planning a postal robbery and conspiring to commit the robbery on Christmas Eve 2022. Williams pleaded guilty in July 2024 and faces a sentence of 84 to 108 months in prison.
Theirno S. Bah, 20, of Columbus, used firearms and robbed postal carriers of their U.S. Postal Service keys on four occasions between December 2022 and May 2023. Cameron D. Newton, 20, of Westerville, aided and abetted the aggravated robberies of mail and the use of a firearm during the crimes of violence.
Bah used a handgun to rob a postal carrier in German Village on Dec. 29, 2022. Bah pointed the handgun at the victim’s stomach and demanded his vehicle and service keys. Newton, who was on probation and consequently wearing a GPS ankle monitor at the time, recruited two juveniles to assist with the robbery. Newton also arranged for Bah to use the handgun, which was provided by co-conspirator Jaemaun Evans, 20, of Columbus.
On Jan. 3, 2023, Bah pushed a postal carrier into her mail truck while she was sorting mail in the back of the truck on East Columbus Street. He then pushed a gun into the victim’s side before stealing her keys. At this robbery, Newton provided surveillance from his vehicle nearby, using the cover of making DoorDash deliveries to evade his home confinement.
Later that day, Bah committed another armed postal robbery, this time in Whitehall. Bah approached the victim and pushed the handgun into her stomach before stealing her personal car keys and the USPS service keys. Newton again provided surveillance in the vicinity. He also worked to arrange buyers for the stolen postal keys.
On May 11, 2023, Bah robbed a postal worker at the Post Office Retail Store on West Broad Street. Bah approached the victim while she was outside on a break. Bah asked the victim for her keys, and when she asked, “What keys?” he pistol-whipped her in the head with his handgun. Bah forcibly accompanied the victim into the post office to retrieve her service keys. Newton obtained a firearm for Bah to use during this robbery from Kenan M. Lay, 21, of Columbus. Lay provided the 9mm handgun used in the armed robbery of the elderly female postal worker in exchange for $100.
Bah faces a sentence of 20 to 25 years in prison and Newton faces a minimum of 20 years and up to life in prison. Lay was sentenced in April to 66 months in prison. Evans was sentenced in September 2024 to a 24-month term of imprisonment to be followed by a 12-month term of house arrest.
Congress sets minimum and maximum statutory sentences. Sentencing of the defendants will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at future hearings.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS); Columbus Police Chief Elaine Bryant; Westerville Police Chief Charles Chandler; and Whitehall Police Chief Mike Crispen announced the guilty plea entered this afternoon before U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Noah R. Litton is representing the United States in these cases.
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Cocaine Trafficker Sentenced to over 18 Years in Federal PrisonRead the Press Release
A man who worked with others to sell large quantities of cocaine in Dubuque, Iowa, and was found with a firearm was sentenced today to more than 18 years in federal prison.
Silvester Jameral Durrah, age 40, from Dubuque, Iowa, received the prison term after a February 12, 2024, guilty plea to one count of conspiracy to distribute 500 grams or more of cocaine near numerous parks and educational institutions, after being convicted of a serious violent felony, and one count of being a felon in possession of a firearm.
At the guilty plea, Durrah admitted he had sold at least 5 kilograms of cocaine in Dubuque between 2017 and April 2021, when law enforcement officers searched his house. Durrah admitted his distributions occurred within 1000 feet of numerous parks and educational institutions in Dubuque, such as, Allison-Henderson Park, Gay Park, Jackson Park, Jefferson Park, Loras College, Madison Park, Marshall Elementary School, and the University of Dubuque. Durrah also admitted he had previously been convicted of robbery in Dubuque in 2003. Durrah also admitted he unlawfully possessed a firearm because had two prior felony convictions when he possessed a firearm on April 16, 2021, when the police searched his residence.
Durrah was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Durrah was sentenced to 222 months’ imprisonment, and he must also serve a 8-year term of supervised release after the prison term. Additionally, Durrah was ordered to forfeit the firearms and over $3,000 in drug proceeds seized from him. There is no parole in the federal system.
Durrah is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Patrick J. Reinert and Nicole Nagin and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Iowa Medical Examiner’s Office and the Dubuque Drug Task Force, comprised of Dubuque Police Department, Dubuque Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-01013.
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Central American Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to more than three months in federal prison.
Jorge Oswaldo Sajcap-Rodriguez, age 31, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a July 10, 2024, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Sajcap-Rodriguez admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Sajcap-Rodriguez was previously deported in September 2015. On June 10, 2024, immigration officials learned Sajcap-Rodriguez had illegally returned to the United States and found Sajcap-Rodriguez at the Allamakee County Jail following his arrest on state charges.
Sajcap-Rodriguez was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Sajcap-Rodriguez was sentenced to 108 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Sajcap-Rodriguez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-1020.
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California Man Charged in Complaint Alleging He Injured Five People in Bomb Attack in Lobby of County CourthouseRead the Press Release
A California man was charged today in a federal criminal complaint alleging he committed a bomb attack at a courthouse in Santa Maria, California, on Wednesday, in which at least five people were injured.
Nathaniel James McGuire, 20, of Santa Maria, is charged with maliciously damaging a building by means of explosive.
McGuire, who was arrested Wednesday shortly after the attack, is expected to make his initial appearance today in U.S. District Court in downtown Los Angeles.
“This defendant will now face justice in federal court for his alleged attack that injured at least five people and struck fear across a county courthouse and an entire community,” said Attorney General Merrick B. Garland. “Attacks on our public institutions and on public servants threaten the safety of our communities and the rule of law itself. Such attacks will not be tolerated by the Justice Department.”
According to an affidavit filed with the complaint, on Sept. 25, McGuire entered a courthouse of Santa Barbara County Superior Court and threw a bag into the lobby. The bag exploded and McGuire left the courthouse on foot. The explosion injured at least five people who were present at the courthouse at that time.
Shortly thereafter, McGuire was apprehended and detained by law enforcement officials as he was trying to access a red Ford Mustang car parked outside the building. McGuire allegedly yelled that the government had taken his guns and that everyone needed to fight, rise up, and rebel.
Inside the car, a deputy saw ammunition, a flare gun, and a box of fireworks. A search of the car revealed a shotgun, a rifle, more ammunition, a suspected bomb, and 10 Molotov cocktails. Law enforcement later rendered the bomb safe.
A search of McGuire’s residence revealed an empty can with nails glued to the outside, a duffel bag containing matches, black powder, used and unused fireworks, and papers that appeared to be recipes for explosive material.
“This defendant’s alleged misconduct was chilling,” said U.S. Attorney Martin Estrada for Central District of California. “Not only did he injure five people and traumatize many more, but he possessed a cache of weapons that would have allowed him to wreak even greater destruction had he not been stopped. Attacks on our courts, law enforcement officers, and other public servants are unacceptable, and it is critical that those who carry out such assaults be prosecuted to the fullest extent.”
“The idea of intentionally setting off an explosive device to do harm and avoid justice in the process shocks the conscience,” said Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office. “Make no mistake, we are committed to holding McGuire accountable for this blatant act of violence. As always, we encourage the public to remain vigilant and to promptly report suspicious activities which could represent a threat to public safety.”
“This was a shocking and unprecedented crime in our county, but, in spite of its audacity, the security of the Santa Maria courthouse was maintained,” said Sheriff Bill Brown of Santa Barbara County. “The suspect was swiftly apprehended by a court security officer, a sheriff’s deputy, two California Highway Patrol officers, and a district attorney’s investigator; we are proud of their resolute actions that almost certainly prevented further violence. We are also grateful for the substantial investigative assistance that has been provided by our colleagues with the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and from U.S. Attorney Martin Estrada and his office.”
If convicted, McGuire faces a mandatory minimum penalty of seven years in prison and a maximum penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and Santa Barbara County Sheriff’s Office are investigating the case.
Assistant U.S. Attorneys Mark Takla and Kathrynne N. Seiden for the Central District of California are prosecuting this case with substantial assistance from Trial Attorney Patrick Cashman of the Justice Department’s National Security Division.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bryan County Resident Pleads Guilty to Assault with A Dangerous Weapon with Intent to Do Bodily HarmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Hr’Lee Wayde Hisaw, age 23, of Bryan County, Oklahoma, entered a guilty plea to one count of Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country.
The Indictment alleged that on or about February 18, 2024, Hisaw assaulted the victim with a dangerous weapon, with intent to do bodily harm. The crime occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Ada Police Department, the Bureau of Indian Affairs, and the Federal Bureau of Investigation.
The Honorable D. Edward Snow, 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. Hisaw was remanded into the custody of the United States Marshal Service pending sentencing.
Browning woman sentenced to more than three years in prison for meth trafficking on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning woman who admitted to trafficking methamphetamine on the Blackfeet Indian Reservation was sentenced on Thursday to three years and six months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said today.
The defendant, Cynthia Ann Valenzuela, 28, pleaded guilty in January to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that in the spring of 2023, Valenzuela was stopped in multiple vehicles containing meth and other evidence of distribution. In April 2023, Valenzuela was a passenger in a vehicle stopped for a traffic violation along with her co-defendant. Both occupants were arrested. More than 15 grams of meth was seized from the Valenzuela’s person while being booked into jail. A search of the vehicle also yielded evidence of distribution, including baggies and a digital scale. A month later, Valenzuela was in a different vehicle, again being driven by her co-defendant when they were again stopped by Blackfeet Law Enforcement Services for a traffic violation. The co-defendant was arrested and had a scale in his pocket. Law enforcement searched the vehicle and seized more than 170 grams of meth in a safe concealed as a book.
The U.S. Attorney’s Office prosecuted the case. The Blackfeet Law Enforcement Services, FBI, Drug Enforcement Administration and Glacier County Sheriff’s Office conducted the investigation.
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Bissonnet sex trafficker “Mumbles” sent to prison for forcing teenage girls to engage in sex actsRead the Press Release
HOUSTON – A 27-year-old Houston resident has been sentenced for sex trafficking of a young woman, announced U.S. Attorney Alamdar S. Hamdani.
Michael Anthony Gonzalez aka Mumbles pleaded guilty June 27.
U.S. District Judge George C. Hanks Jr. has now ordered Gonzalez to serve 240 months in federal prison. In handing down the prison term, the court noted the things Gonzalez had done, the attitudes he had displayed and the people he had hurt. Gonzalez will also serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
From April 2019 to February 2020, Gonzalez and his co-conspirators worked to recruit young teenage girls and force them to engage in sex acts with “clients” for money in cars and hotels around the Bissonnet “blade.”
The blade or “track” is an area near I-59 Southwest Freeway and Bissonnet Street in Houston where pimps and traffickers commonly place their victims to engage in commercial sex.
The co-conspirators passed around or reassigned victims amongst one another, taught each other “the pimp game” and forced young girls to walk the blade while they kept the proceeds.
To switch between pimps, the young girls had to pay an exit fee or get “beat out.” Some traffickers required daily quotas each night from their victims. If the victims failed to meet their daily quotas, they were severely punished through beatings and humiliation.
Co-conspirators Jerreck Michael Hilliard aka Jmoney, 35, and Javon Yaw Opoku aka Glizzy, 23, were previously sentenced to 292 and 365 months in prison, respectively, for their roles in the sex trafficking conspiracy.
The Houston Police Department initiated the investigation with the assistance of Homeland Security Investigations and the Harris County District Attorney’s Office as a part of the Human Trafficking Rescue Alliance (HTRA). Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Kate Suh and Anthony Franklyn prosecuted the case.
18 Members of Yuma-Based Alien Smuggling Ring Indicted for Conspiracy to Harbor and Transport Undocumented NoncitizensRead the Press Release
PHOENIX, Ariz. – Gary M. Restaino, United States Attorney for the District of Arizona, announces a three-count superseding indictment against 18 members of La Mesa, a Yuma-based alien smuggling ring, for Conspiracy to Harbor Illegal Aliens, Harboring Illegal Aliens for Profit, and Conspiracy to Transport Illegal Aliens. The defendants charged include:
- Victor Eduardo Araiza-Ponce, 24, of Yuma;
- Antonio Aparicio III, 24, of Somerton;
- Alonzo Esparza, 27, of Yuma;
- Carlos Moreno-Serrano, 24, of Yuma;
- Xasiel Noriega-Gonzalez, 21, of Somerton;
- Joshua Guillermo Leon-Fuentes, 21, of Somerton;
- Angel Rodriguez, 23, of Yuma;
- Crystobal Figueroa, 23, of Somerton;
- Saul Ponce Jr., 23, of San Luis;
- David Leon-Pallanes, 23, of Yuma;
- Manuel Uriel Alvarado, 26, of Yuma;
- Elian Lopez, 24, of Yuma;
- Raymundo Delgado-Diaz, 35, of Yuma;
- Isreal Zeveda, 23, of Salinas, California;
- Francisco Javier Esparza-Macias, 21, of Somerton;
- Alex Chiquete, 25, of Yuma;
- Hector Eduardo-Valdez, 31, of Yuma; and
- Jose Gabriel Marquez-Mendiola, 32, of Yuma.
During the investigation, United States Border Patrol-Intelligence (BPI) arrested numerous drivers of undocumented noncitizens (UNCs) in the District of Arizona and the Central and Southern Districts of California. Based on information derived from those arrests, BPI learned of an alien smuggling organization known as La Mesa, which worked on behalf of the Mexico-based transnational criminal organization Los Rusos. Before the arrests of 18 of its members, La Mesa operated out of Yuma and Somerton.
The superseding indictment alleges that members of La Mesa were responsible for smuggling, or attempting to smuggle, hundreds of undocumented noncitizens across the United States-Mexico border and further into the United States, and that Moreno-Serrano was the leader of La Mesa. Other defendants charged were responsible for coordinating smuggling events, scouting for the drivers who were transporting the undocumented noncitizens, transportation activities, procuring and running stash houses, distribution of payments to drivers, and enforcement on behalf of La Mesa. La Mesa used rental vehicles, scout drivers, and coordinated entries to further its smuggling operations.
Over the course of the investigation, BPI learned La Mesa adapted to the arrest of its drivers and started to take smaller groups of UNCs, focusing on transporting undocumented noncitizens to Southern and Central California in an attempt to avoid further arrests. La Mesa used force, threats, and intimidation to successfully operate both in the United States and Mexico. Video evidence reveals that the organization kidnapped members and threatened and assaulted them as retribution for having been arrested.
The maximum penalty for each of the charges is up to 10 years in prison and a fine of up to $250,000.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection’s United States Border Patrol–Yuma Field Intelligence, El Centro Border Patrol and Indio Border Patrol are conducting the investigation. Assistant U.S. Attorneys Ross Arellano Edwards and Stuart J. Zander, U.S. Attorney’s Office, Phoenix, are handling the prosecution.
CASE NUMBER: CR-23-01676-PHX-KML
RELEASE NUMBER: 2024-128_Araiza-Ponce et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.17-year-old admits to murder in shooting death on Crow Indian ReservationRead the Press Release
BILLINGS — A 17-year-old accused of shooting and killing a man, whose body was recovered from the Little Big Horn River in Crow Agency, on the Crow Indian Reservation, admitted to murder and firearm charges today, U.S. Attorney Jesse Laslovich said.
The defendant, Orrin Richard Alden III, of Crow Agency, pleaded guilty to an information charging him with second-degree murder and use of a firearm during and in relation to a crime of violence. Alden faces life in prison, a $250,000 fine and five years of supervised release on the murder charge and a mandatory 10 years in prison, consecutive to any other sentence, a $250,000 fine, and five years of supervised release on the firearm charge.
U.S. District Judge Susan P. Watters presided. The Court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Dec. 12. Alden remained in custody pending further proceedings.
In court documents, the government alleged that on May 5, 2024, an unidentified body was recovered from the Little Big Horn River in Crow Agency. The body was later determined to be an 18-year-old male identified as John Doe. An autopsy was conducted, and two bullets were recovered—one from the side of the torso, which pierced Doe’s heart and lodged on the opposite side of his torso, and another bullet, which appeared to have entered his nostril, pierced his brain and lodged in his skull. The medical examiner found indications of the possibility that the barrel was placed into the nostril prior to firing.
Doe’s family last saw him alive on either April 27 or 28 as he was walking with a group of males toward the location on the Little Big Horn River where his body was recovered. Two of the males were identified by a photograph, and Alden was one of them. On the day Doe disappeared, a witness saw Doe with a black backpack that contained marijuana, a sizeable amount of methamphetamine and a large amount of cash. At approximately noon on April 27, surveillance video the Little Big Horn College Wellness Center recorded Alden walking with Doe and the other males. Doe had a black backpack and was wearing some of the same clothing as when his body was recovered approximately one week later.
The government further alleged that the group of males, including Alden and Doe, drank alcohol and smoked marijuana before walking to the river. Alden and one of the other males were overheard discussing that Doe was carrying $500 to $700. Alden, one of the males, and Doe got separated from the rest of the group. When that happened, a single shot was heard. Immediately after the first shot was heard, Alden was seen with a rifle in his hand. As Doe tried to run away, he grabbed his side and said, “You shot me, you shot me, Tripp (a nickname for Alden).” A second shot was heard. Minutes later, Alden and the male who was with him caught up with the rest of the group. They were laughing, and the other male had Doe’s backpack and the rifle. The barrel of the rifle was blown up on its tip.
The group then went to the basement of Alden’s house where Alden and the male who was seen carrying the backpack and rifle stripped off their clothing and put it in a black bag. The male used his shirt and rubbing alcohol to clean a hatchet. Another of the males asked if he could call an ambulance for Doe. The male who was with Alden when Doe was shot responded, “Are you … Stupid … No, if you call the ambulance all you’re going to find is just a non-living thing now.” Alden and the male took the rifle and black bag of clothing and stashed them in an abandoned building near Alden’s house.
When asked about the gun in the days following the shooting, Alden explained, “Bro it … blew up, when I … shot him in the neck … I had it so close that it just blew up … It blew the barrel up, like the tip of the barrel.”
The U.S. Attorney’s Office is prosecuting the case. The FBI and Bureau of Indian Affairs conducted the investigation.
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26 September 2024
‘Clay Terrace Hitsquad’ Member Sentenced for Weapons and Trafficking of a Controlled SubstanceRead the Press Release
WASHINGTON— Tamonie Chambliss, 28, of Capitol Heights, Maryland was sentenced today in U.S. District Court to 46 months in federal prison for being a felon in possession of a handgun and for distributing marijuana that he mass-marketed using social media and packaged with a label that included a photo of his face.
The announcement was made by U.S. Attorney Matthew M. Graves, FBI Acting Special Agent in Charge David Geist of the FBI’s Washington Field Office, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Chambliss, aka “moneyman biggs,” pleaded guilty on June 20, 2024, before the Honorable Timothy J. Kelly to unlawful possession of a firearm by an individual previously convicted of a crime of violence and to unlawful possession with intent to distribute marijuana. In addition to the prison term, Judge Kelly ordered Chambliss to serve three years of supervised release.
According to court documents, the MPD and FBI were investigating sales of controlled substances and crimes of violence involving firearms between July 2022 and the summer of 2023 on the 5300 block of Clay Terrace, in Northeast Washington, D.C.
During the investigation, law enforcement identified a crew believed to be involved in the sales of PCP, crack cocaine, fentanyl, marijuana, and other controlled substances, as well as the transfer and possession of illegal firearms. Law enforcement identified Chambliss as a member of the crew known as the “Clay Terrace Hitsquad” or the “Double Back Gang.” Investigators determined that Chambliss specialized in selling marijuana in the neighborhood and marketed the drug through social media using packaging illustrated with an image of his face.
On March 7, 2023, the Sixth District Crime Suppression Team observed a gray Lexus sedan parked in front of 260 54th St. Northeast, Washington, D.C., one block from Clay Terrace, surrounded by individuals who quickly departed as the police cruiser approached. A VIN search determined that the vehicle was unregistered and that the tag on the Lexus was reported stolen. Although several individuals claimed ownership of the vehicle, all refused to provide officers with identifying documents. One of these individuals presented officers with a fictitious insurance card that listed Chambliss as the operator of the vehicle.
A history check of the vehicle’s VIN found that Chambliss previously had been stopped driving the Lexus in Laurel. Officers executed a search of the vehicle and found a baggie containing 10 stamped M30 pills (oxycodone). Officers also found a backpack that contained nearly a kilogram of marijuana, a scale, and a 30-round extended magazine containing 21 rounds of .45 caliber ammunition. The vehicle also contained credit cards, identification cards, and a Maryland vehicle registration assigned to Chambliss.
As part of the same investigation, law enforcement executed search warrants at two addresses linked to Chambliss. On July 26, 2023, law enforcement executed a search warrant for Chambliss’ residence on the 5000 block of Clay Terrace in Northeast, Washington, D.C., where they recovered a Glock 30S .45 caliber handgun loaded with 2 rounds of ammunition, as well as an inside-the-waistband handgun holster. Chambliss later admitted to owning the gun, despite knowing he was prohibited from possessing firearms based on his felony conviction in 2017 for a gun-point robbery.
On March 15, 2024, U.S. Marshals executed a warrant at an address in Laurel, Maryland, where they arrested Chambliss. During a search, Marshals observed in plain view about 3.4 kilograms of marijuana in Chambliss’ bedroom and on a kitchen counter.
On February 15, 2024, Chambliss was indicted on six counts related to unlawful possession with intent to distribute marijuana, unlawful possession of a firearm by a person convicted of a crime of violence, possession of a firearm in furtherance of a drug trafficking offense, possession of a large capacity ammunition feeding device, and possession of unregistered ammunition.
This case was investigated by the Metropolitan Police Department’s Violence Reduction Unit (VRU), in conjunction with the FBI Washington Field Office.
It is being prosecuted by Special Assistant U.S. Attorneys Ernesto J. Alvarado and Adam Stempel with the Violence Reduction and Trafficking Offenses section for the U.S. Attorney’s Office for the District of Columbia.
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Waterloo Man Sentenced to Prison after Being Caught with “Ghost Gun” at High School Football GameRead the Press Release
A Waterloo man who possessed a loaded privately made firearm, also known as a “ghost gun,” and ammunition at a Waterloo high school football game was sentenced yesterday to nearly four years in prison.
Dayton Amaru Shakur Bruce, age 20, from Waterloo, Iowa, received the prison term after an April 4, 2024, guilty plea to possession of ammunition by a drug user.
Information disclosed during the plea and sentencing hearings revealed that, in August 2023, Waterloo police officers responded to Waterloo East High School after a fight broke out. Officers observed Bruce in the crowd and attempted to contact him after learning he may be involved in the fight. Bruce ran and officers chased him throughout the parking lot. Along the way, Bruce threw a fully loaded “ghost gun” in the back of a pickup truck. Bruce did not know the owner of the pickup truck. Officers took Bruce into custody and located the gun in the pickup truck. Bruce was under the influence of marijuana at the time and was a regular user of marijuana. “Ghost guns” are guns which are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them difficult to trace and easy to acquire by criminals.
At sentencing, the court also found that Bruce was involved in a shooting in June 2023. During that incident, Bruce shot into a car hitting the victim in the back of the head. The victim survived that incident. Bruce was later located by police and the gun used in that shooting was found nearby.
Bruce was sentenced in Cedar Rapids by Chief United States District Court Judge C.J. Williams. Bruce was sentenced to 46 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Waterloo Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24gv-CR-2010.
Follow us on Twitter @USAO_NDIA.
Virginia Man Sentenced to Three Years in Prison for Sextortion Scheme Targeting More Than 100 Young Female Victims Across the CountryRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Terrell Ashby, aka “Jason Brandon,” 26, of Williamsburg, Virginia, was sentenced today by United States District Court Judge Gerald McHugh to 36 months’ imprisonment and three years of supervised release, for engaging in a widespread “sextortion” scheme targeting young women across the country. Ashby was also ordered to pay $28,883.64 in restitution to the victims.
In April, the defendant pleaded guilty to two counts of cyberstalking (one count resulting in serious bodily injury) and two counts of extortion.
From at least February 2020 to December 2020, Ashby engaged in an extensive sextortion scheme affecting more than 100 young female victims. Targeting women based on their social media profiles, he systematically tricked the victims into participating in nude video chats with him or sending him explicit photos of themselves by promising to pay them $70,000. However, instead of paying the victims, he surreptitiously took screenshots during the nude video chats. Then he used the explicit images to extort the victims, threating to disseminate the images publicly unless they paid him.
Many victims succumbed and paid Ashby anywhere from $25 to $50. After receiving such extortion payments, he continued to haunt the victims – sometimes for months. He created numerous shaming profiles on social media using the victims’ identities and explicit photos. He stalked the victims, repeatedly sending them threatening messages that their “expose” page had been created and would be shared with their friends and contacts.
One of the victims who resided in the Eastern District of Pennsylvania was so distraught that she overdosed on her prescription medication and had to be rushed to the emergency room. Fortunately, she recovered from the incident, but was hospitalized for a period of time. During her hospitalization, Ashby continued to harass her, advertising her explicit images to others using various social media accounts. Even months later, Ashby continued his extortion of this victim.
“Terrell Ashby was absolutely relentless in terrorizing these women online,” said U.S. Attorney Romero. “It’s hard to understand what prompted, and then perpetuated, his criminal cruelty. At the end of the day, though, we don’t really need to know why he did it. It’s more important to know where he’s headed for doing so — and that’s federal prison, for the next several years of his life. That’s a measure of justice for his many victims, but it will never erase all the harm done.”
“We hope today's sentencing brings justice to the countless victims this defendant harassed, violated, and extorted,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI and our partners at the U.S. Attorney's Office encourage any victim of sextortion to report information to law enforcement so we can continue to identify, investigate and prosecute these crimes.”
The case was investigated by the Philadelphia FBI and is being prosecuted by Assistant United States Attorney Sarah Wolfe. The FBI and U.S. Attorney’s Office in the Eastern District of Virginia also provided assistance in the investigation.
Victoria contractor admits to defrauding investors of millions in material schemeRead the Press Release
HOUSTON – A 61-year-old man has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
Michael Wayne Galvan, operating as a high-end contractor under MWG Ventures LLC dba MGB Builders, fraudulently obtained over $2.8 million from at least six private investors. In some cases, Galvan found future victims when he worked as a vice president of the Houston Livestock and Rodeo Organization.
From February 2016 to March 2018, Galvan used his position with the rodeo to find victims, many of whom were in leadership positions. He solicited short-term loans by offering opportunities to earn 10 to 12 percent interest through his contracting business. Galvan falsely represented he would use the money to purchase exotic tiles and granite from China and other overseas countries for his construction business.
As part of his plea before U.S. Magistrate Judge Rick Bennett, Galvan admitted he did not use the money for its intended purpose. The scheme unraveled when he ran out of victims and money. In total, he defrauded multiple victims of approximately $2.8 million.
U. S. District Judge Charles Eskridge will impose sentencing Dec. 5. At that time, Galvan faces up to 20 years in federal prison and a possible $250,000 maximum fine as well as full restitution to his victims.
He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation.
Assistant U.S. Attorneys Christian Latham and Thomas Carter are prosecuting the case.