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24 September 2024
Omaha Man Sentenced for Conspiracy to Distribute Fentanyl PillsRead the Press Release
United States Attorney Susan Lehr announced that Zacharie Stinson, 31, of Omaha, Nebraska, was sentenced September 24, 2024, in federal court in Omaha for conspiracy to distribute fentanyl. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Stinson to 57 months’ imprisonment. There is no parole in the federal system. After Stinson’s release from prison, he will begin a 3-year term of supervised release.
On three occasions in March and April of 2023, DEA agents and task force officers saw Stinson meet with an individual who later sold fentanyl pills to a cooperator and an undercover agent. On April 7, 2023, agents executed a search warrant at Stinson’s residence in Omaha. Inside, agents found approximately 250 fentanyl pills. Agents also recovered approximately 135 fentanyl pills from Stinson’s person. During a post-Miranda interview, Stinson admitted that he was a fentanyl pill user who had started selling pills within the last year. Stinson told agents that he would purchase approximately 500 pills every two weeks and sell some to other people.
Co-defendants Rafael Magana and Lucas Ehly, both 31 and from Omaha, have pleaded guilty and are scheduled to be sentenced in December.
This case was investigated by the Drug Enforcement Administration and the Metro Drug Task Force.
North Providence Man Detained on Federal Child Pornography Production ChargeRead the Press Release
PROVIDENCE, RI – A North Providence man has been charged in federal court and ordered detained following an investigation by the Rhode Island State Police Internet Crimes Against Crimes Against Children (ICAC) Task Force for the alleged production of child pornography, announced United States Attorney Zachary A. Cunha.
Larry W. Albino, 50, was ordered detained following his initial appearance in U.S. District Court on Monday on federal charges for production of child pornography.
According to charging documents, on September 16, 2024, a Rhode Island State Police Detective assigned to the ICAC Task Force received information from the National Center for Missing and Exploited Children that an IP address, later determined by the Detective to belong to Albino’s residence, was used to upload ten files depicting the abuse of a pre-pubescent child. Further investigation revealed that that the location where the videos were recorded matched images of rooms recently displayed in an online property rental listing where Albino resides.
As related in court documents and information presented to the court, on September 17, 2024, members of the ICAC Task Force executed a court-authorized search of Albino’s residence and, it is alleged, immediately recognized that some of the furnishings of rooms inside Albino’s residence matched those depicted in the videos of child sexual abuse, and that sandals worn by the defendant at the time officers arrived matched those allegedly worn by the abuser in some of the videos.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney John P. McAdams.
The matter was investigated by the Rhode Island State Police ICAC Task Force, with the assistance of Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
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North Port Man Sentenced to 70 Years in Federal Prison for Producing and Possessing Child Sexual Abuse VideosRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber today sentenced Raul Colon-Ocasio (32, North Port) to 70 years in federal prison for production and possession of videos depicting the sexual abuse of children. Colon-Ocasio was also sentenced to a term of supervised release for life and ordered to register as a sex offender. A federal jury found Colon-Ocasio guilty on June 5, 2024.
According to court documents, between December 2021 and May 5, 2022, Colon-Ocasio used two minors to produce numerous videos of sexual abuse.
In 2022, a parent of Minor Victim 1 reported her daughter missing to law enforcement in Charlotte County. While investigating, law enforcement uncovered communications on social media between Colon-Ocasio and the child that were sexual in nature. In October 2022, an FBI Task Force Officer assumed the social media account of Minor Victim 1 and began communicating with Colon-Ocasio. On October 18, 2022, instead of Colon-Ocasio meeting Minor Victim 1, he encountered law enforcement. Colon-Ocasio’s cellphone was seized. Subsequent to a search warrant for his cellphone, law enforcement located sexually explicit videos that Colon-Ocasio had produced of Minor Victim 1.
Additionally, law enforcement located numerous videos that Colon-Ocasio had produced of another child engaging in sexually explicit conduct. Subsequent to further investigation, Minor Victim 2 was located by law enforcement.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force, with includes the Charlotte County Sheriff’s Office that assisted with this investigation. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nigerian Man Pleads Guilty After Extradition to Participating in Romance Scams and Other Fraud Schemes Targeting Elderly VictimsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ISAIAH OKERE plead guilty today before U.S. District Judge Lewis Liman to charges stemming from his participation in an international conspiracy to defraud at least 15 victims of romance schemes, lottery scams, and business email compromise schemes.
U.S. Attorney Damian Williams said: “Isaiah Okere and his co-conspirators preyed on elderly and vulnerable victims, some of whom lost their entire life savings. Even though he operated his scams from a country halfway around the world, this Office’s global reach ensures that he will be held accountable in the United States for his crimes.”
According to Count One of the Information to which OKERE pled guilty and other statements and submissions made in Court:
From at least in or about 2015 up to and including November 2019, OKERE and co-conspirator Timy Hakim conspired with members of the “Black Axe” transnational criminal organization to engage in fraudulent schemes that left at least 15 people and entities with over a million dollars in losses. OKERE facilitated the laundering of proceeds of three types of fraud schemes, a “Romance Scheme,” a “Lottery Scheme,” and a “BEC Fraud Scheme.” Through the Romance Scheme, a vulnerable individual was led to believe she or he was in a romantic online relationship with a perpetrator of the Scheme when, in fact, the perpetrator merely used this as a mechanism to build the victim’s trust and solicit the victim’s money. Through the Lottery Scheme, the scheme participants informed certain victims that they had won a cash prize but first needed to make certain payments to access the funds. Through the BEC Fraud Scheme, the scheme participants induced a corporate victim located in Manhattan to release company funds under fraudulent pretenses by impersonating the founder of the company.
OKERE used accounts under false identities to communicate directly with his U.S. victims. He also controlled multiple foreign bank accounts in South Africa that received funds from victims targeted by these schemes.
At least 15 individual and corporate victims lost money as part of OKERE, Hakim, and their co-conspirators’ schemes. They include vulnerable, isolated, and elderly victims who entered into relationships after the deaths of their spouses and, over a period of several years, were induced to drain their entire retirement savings and take out loans from family and friends. Many victims experienced severe emotional harm, including a woman who reported becoming suicidal after losing her retirement savings to this scheme.
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OKERE, 42, a citizen of the Republic of Nigeria, was arrested in South Africa on the basis of a provisional arrest warrant in December 2021 and was extradited on August 23, 2024. He pled guilty today to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison.
On September 27, 2023, co-defendant Timy Hakim was sentenced to two years in prison and was ordered to pay $1,414,043 in restitution and forfeit $671,452.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the South African Department of Justice and Constitutional Development, National Prosecuting Authority of South Africa, and the South African Police Service. The U.S. Department of Justice’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from South Africa.
The criminal case is being prosecuted by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.
Nicaraguan Man Sentenced to Prison for Document FraudRead the Press Release
A man who used a fraudulent social security card was sentenced today to four months in federal prison.
Sen Sequeira-Miranda, age 45, a citizen of Nicaragua residing in the Cresco, Iowa, area, received the prison term after a June 26, 2024, guilty plea to one count of unlawful use of an identification document and one count of misuse of a social security number.
At the guilty plea, Sequeira-Miranda admitted he used a fraudulent Social Security card bearing an alias name, to prove his authorization to work in the United States when he completed employment and tax forms in April 2024 at a business in Charles City, Iowa. The number on the Social Security card was assigned to the person whose name was on the Social Security card.
On January 11, 2024, Sequeira-Miranda was encountered by the U.S. Border Patrol after he illegally entered the United States near Eagle Pass, Texas. On February 8, 2024, defendant was released from immigration custody with a GPS ankle bracelet and ordered to report to immigration officials in Cedar Rapids, Iowa. GPS data appeared to show Sequeira-Miranda was working and ICE agents were able locate him at his place of employment in Charles City. As an alien, Sequeira-Miranda was not authorized to work in the United States. ICE officers were able to obtain copies of the fraudulent documents Sequeira-Miranda used from his employer, which included the fraudulent Social Security card and a fraudulent California ID card with his alias name and bearing his photo.
Sequeira-Miranda was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Sequeira-Miranda was sentenced to 125 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Sequeira-Miranda 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-2022.
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New York Man Charged with Failure to Register as a Sex OffenderRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Bruce Neil Kresin, age 51, of Binghamton, New York, was indicted by a federal grand jury for failing to register as a sex offender upon relocating to Pennsylvania.
According to United States Attorney Gerard M. Karam, the indictment alleges that from July 2024 and continuing to at least August 27, 2024, despite being required to register under the Sex Offender Registration and Notification Act (“SORNA”), upon relocating to Lackawanna County, PA, Kresin failed to register his address in Pennsylvania as required by SORNA.
This matter was investigated by the United States Marshals Service (USMS). Assistant United States Attorney Jeffery St John is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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New York Acupuncturist Sentenced to 34 Months in Prison for Role in $9 Million Health Care Fraud Targeting AmtrakRead the Press Release
NEWARK, N.J. – A New York acupuncturist was sentenced today to 34 months in prison for participating in a $9 million health care fraud scheme to defraud Amtrak, U.S. Attorney Philip R. Sellinger announced.
Punson Figueroa, aka “Susie,” 58, of Long Island City, New York, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging her with conspiracy to commit health care fraud.
“Submitting fraudulent claims to steal money harms the public and the health care system. This defendant admitted fleecing the health care system for millions of dollars in illicit claims, and today she learned the punishment for her offense. My office and our partners are committed to stopping health care scams and ensure that guilty participants are punished.”
U.S. Attorney Philip R. Sellinger
“We remain fully committed to bringing justice to health care providers who target Amtrak’s health care plans as well as Amtrak employees who collude with them,” said Amtrak’s Inspector General, Kevin H. Winters. “We hope this case serves as a deterrent for health care providers and Amtrak employees who may choose to engage in such schemes, and we ask anyone who suspects or observes such fraud to report it to our fraud, waste, and abuse hotline.”
“This investigation unveiled the mastermind behind a $9 million health care fraud scheme,” DEA – New York Special Agent in Charge Frank Tarentino said. “I applaud our law enforcement partners whose diligent work put an end to this conspiracy and brought Punson Figueroa to justice to face the consequences of her illegal actions.”
“This case demonstrates Amtrak’s resolve to work alongside all our law enforcement partners to investigate and hold accountable those who attempt to defraud the system,” Chief Sam Dotson said. “We are grateful for the collaborative law enforcement effort that led to this guilty plea, and we will continue to be vigilant in safeguarding Amtrak’s assets.”
According to documents filed in this case and statements made in court:
From January 2019 through June 2022, Figueroa and her conspirators agreed to engage in a scheme to bill the Amtrak health care plan for fraudulent claims for services that never were provided and were medically unnecessary. Figueroa recruited Amtrak employees to participate in the scheme by paying them cash in return for allowing her to use their personal and insurance information to submit false and fraudulent claims. Figueroa conspired with dozens of Amtrak employees and paid hundreds of thousands of dollars in cash kickbacks to Amtrak employees over the course of the scheme.
On June 16, 2021, an undercover law enforcement agent posing as an Amtrak employee met with Figueroa at Figueroa’s office in New York. Figueroa instructed the undercover agent to sign his name about 30 times for services received and instructed the undercover agent not to date the signatures. Figueroa caused false claims to be submitted to Amtrak’s health care plan indicating that the undercover agent had visited providers at least seven times in May 2021, purportedly receiving acupuncture and physical therapy services.
The undercover agent visited Figueroa’s office on only one other occasion, on July 29, 2021. At this meeting, Figueroa handed the undercover agent an envelope filled with $1,000. Thereafter, Figueroa continued to use the undercover agent’s personal and insurance information to submit dozens of fraudulent claims to the Amtrak health care plan.
In total, Figueroa caused Amtrak to pay out over $9 million in false and fraudulent insurance claims.
In addition to the prison term, Judge Arleo sentenced Figueroa to three years of supervised release and ordered restitution of $9.05 million.
U.S. Attorney Sellinger credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, and the Amtrak Police Department, under the direction of Chief of Police Sam Dotson, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano and Jessica R. Ecker of the Health Care Fraud Unit in Newark.
New Haven Man Who Sold Fentanyl-Laced Cocaine to Overdose Victim Sentenced to 8 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JERRARD SANTIAGO, 44, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 96 months of imprisonment, followed by three years of supervised release, for narcotics distribution offenses stemming from an overdose death investigation in 2021.
According to court documents and statements made in court, on May 18, 2021, Santiago sold cocaine laced with fentanyl to a 22-year-old male in a restroom of the Mohegan Sun Casino. The purchaser overdosed on the casino floor and died approximately 11 days later. On February 3, 2023, investigators made a controlled purchase of fentanyl and heroin from Santiago. On February 14, 2023, investigators made a controlled purchase of fentanyl and cocaine from Santiago.
Santiago has been detained since his arrest on March 30, 2023. On January 29, 2024, he pleaded guilty to two counts of possession with intent to distribute, and distribution of, a controlled substance. After an evidentiary hearing in April 2024, Judge Meyer concluded that Santiago knowingly distributed the narcotics that caused the victim’s overdose and death.
This matter was investigated by the Drug Enforcement Administration and the Mohegan Tribal Police. The case is being prosecuted by Assistant U.S. Attorneys Ross Weingarten and Christopher W. Schmeisser.
New Castle Man Sentenced to More Than Nine Years in Prison on Drug Trafficking and Firearm ConvictionsRead the Press Release
PITTSBURGH, Pa. - A resident of New Castle, Pennsylvania, has been sentenced in federal court to 110 months in prison for trafficking fentanyl and cocaine and possessing a firearm after a felony conviction, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Donald Jeter, 34. Judge Schwab also ordered Jeter to serve six years of supervised release following his prison sentence.
Jeter previously pleaded guilty in this case to conspiring to distribute fentanyl and cocaine between May 2021 and October 2022, and to possessing a firearm on August 10, 2022, after a felony conviction. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Federal Bureau of Investigation, Pennsylvania Office of Attorney General, United States Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, and Pennsylvania State Police for the investigation leading to the successful prosecution of Jeter.
Missoula man sentenced to five years in prison for receiving child pornographyRead the Press Release
MISSOULA — A Missoula man who admitted to receiving and storing thousands of images and videos of child sexual abuse material from the internet was sentenced today to five years in prison, to be followed by 10 years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Bryan Michael Balog, 31, pleaded guilty in May to receipt of child pornography.
U.S. District Judge Donald W. Molloy presided. The court also ordered $39,000 restitution to 13 victims.
In court documents, the government alleged that in September 2022, Dropbox reported to the National Center for Missing and Exploited Children (NCMEC) that a Dropbox user had uploaded images of child sexual abuse materials to its server. The Missoula Police Department investigated and determined that the Dropbox account belonged to Balog. Images in Balog’s account included children as young as babies engaged in sexually explicit conduct. A Missoula Police detective executed a search warrant at Balog’s home and spoke with Balog, who admitted he had been “saving” images and videos of child pornography from the internet since 2011. Electronic devices seized from Balog’s home contained thousands of images and videos of children engaged in sexually explicit conduct.
The U.S. Attorney’s Office prosecuted the case. The Missoula Police Department, Montana Division of Criminal Investigation and FBI conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
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Meriwether County Resident Convicted of Armed Drug TraffickingRead the Press Release
COLUMBUS, Ga. – A resident of Meriwether County with several previous felony convictions was found guilty of illegal gun possession and drug trafficking charges following a bench trial this week.
Howatdrick Jamal Jones, 30, of Woodbury, Georgia, was found guilty of one count of possession of cocaine base with intent to distribute, one count of possession of a firearm during a drug trafficking crime and one count of possession of a firearm by a convicted felon following a bench trial before U.S. District Judge Clay Land that began and ended on Monday, Sept. 23. Jones faces a maximum sentence of life in prison. Sentencing is scheduled for Dec. 12. There is no parole in the federal system.
“Repeat armed felons tied to violent criminal gangs will find themselves being held accountable at the federal level,” said U.S. Attorney Peter D. Leary. “Law enforcement across the Middle District of Georgia is working closely with our office to bring the most dangerous offenders in our communities to justice and make our communities safer for all.”
“Guns, drugs and violence are unfortunately all too common tools of the drug trafficking organizations operating in our communities,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “Cases like this clearly demonstrate the resolve of the DEA to hold violent drug traffickers accountable.”
“I would like to thank all of the law enforcement entities involved for their hard work on this case,” said Waverly Hall Police Chief Jason Durham. “This is another proven example that illegal drugs and guns will not be tolerated.”
According to the evidence at trial, Jones was stopped by a Waverly Hall Police Department officer on Oct. 16, 2019, after the officer’s automatic license plate reader triggered an alert that the owner of the car had active arrest warrants. The officer smelled marijuana and searched the vehicle, finding cocaine, a digital scale and a razor blade next to the drugs. Jones was concealing a .45 caliber pistol. At the time, Jones had several prior felony drug convictions; it is illegal for a convicted felon to possess a firearm. Jones was convicted of bank robbery on Sept. 20, 2023, in the Superior Court of Pike County, Georgia and is serving a life sentence for his crime.
This case was investigated by the Drug Enforcement Administration (DEA) and the Waverly Hall Police Department with valuable assistance from the FBI and the Harris County Sheriff’s Office.
Assistant U.S. Attorneys Christopher Williams and Crawford Seals are prosecuting the case for the Government.
Maryland Man Sentenced to 180 Months for Drug and Firearms OffensesRead the Press Release
ALBANY, NEW YORK – Brandon Bartley, age 26, of Laurel, Maryland, was sentenced today to 180 months in prison and to pay a $5,000 fine for drug and gun crimes in connection with his trafficking of large amounts of fentanyl, cocaine and methamphetamine, and his possession of more than 30 firearms.
United States Attorney Carla B. Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, and Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Bartley previously pled guilty to conspiracy to distribute and possess with intent to distribute cocaine, methamphetamine, and fentanyl; possession with intent to distribute cocaine, methamphetamine, and fentanyl; and possession of firearms in furtherance of drug trafficking crimes.
Bartley admitted that he engaged in a conspiracy to distribute, and that he possessed with intent to distribute, cocaine, methamphetamine, and fentanyl, from an apartment on Western Avenue in Albany. On May 23, 2023, law enforcement searched his apartment and found 34 firearms, including a loaded Glock on his bed that he used to protect his drugs and drug proceeds, and other firearms, as well as more than 400 grams of fentanyl pills, more than 7,000 grams of pills containing methamphetamine, and more than 700 grams of cocaine.
United States District Judge Anne M. Nardacci also ordered that Bartley serve a 5-year term of supervised release following his release from prison.
The following defendants have also been charged in connection with this investigation:
- Anthony Luizzi pled guilty on March 18, 2024, to drug and gun crimes in connection with his trafficking of large amounts of fentanyl, cocaine and methamphetamine, and his possession of more than 30 firearms, including drugs and guns found at the Western Avenue property. Luizzi is scheduled to be sentenced on October 1, 2024.
- Devon Newsome pled guilty on September 3, 2024, to unlawfully transferring firearms as part of the firearms trafficking conspiracy. Newsome is scheduled to be sentenced on January 6, 2025.
- Jabree Jones was charged with a violation of the terms of his supervised release on May 23, 2023, based on violations of federal gun and drug trafficking laws, and has been detained pending the resolution of the supervised release violation petition. A final revocation hearing is currently scheduled for December 17, 2024. The charges against Jones are merely accusations. He is presumed innocent unless and until proven guilty.
The DEA and the ATF are investigating the case, with assistance from the Saratoga County Sheriff’s Office (SCSO), the United States Postal Inspection Service (USPIS), U.S. Department of Labor, Office of Inspector General (USDOL-OIG), and Henry County Police Department in Georgia. Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting the case.
Leader of Gorilla Stone Mafia Gang Convicted of Two Murders on Staten Island and Drug DistributionRead the Press Release
Today, a federal jury in Brooklyn returned a guilty verdict against John Pena, leader of the Gorilla Stone Mafia (GSM), a subgroup of the Untouchable Gorilla Stone Nation (UGSN), which is a faction of the nationwide Bloods street gang. The jury convicted Pena, also known as “Tragedy,” “Don Tragg,” “Last Don” and “Money Baggz,” on all six counts of a second superseding indictment charging him with racketeering; murder in-aid-of racketeering; causing death through use of a firearm; unlawful possession, brandishing and discharge of a firearm; being a felon in possession of ammunition; and conspiring to distribute and possess with intent to distribute marijuana and crack cocaine. Pena was convicted of murdering Mark Bajandas on March 10, 2021, and Francisco Gonzalez on June 22, 2021, on behalf of GSM. The verdict followed a seven-day trial before United States District Judge Ann M. Donnelly. When sentenced, Pena faces a mandatory sentence of life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Thomas G. Donlon, Interim Commissioner, New York City Police Department (NYPD), announced the verdict.
As the evidence proved, Pena was consumed by seeking revenge against rivals and maintaining his leadership position in the Gorilla Stone Mafia gang by any means necessary,” stated United States Attorney Peace. “Killing a man as he slept in bed and shooting another man with a dozen bullets are shocking examples of Pena’s ruthlessness. Today’s verdict ensures he will spend the rest of his life in prison for his direct role in the extreme violence and drug trafficking wreaked on a Staten Island community.”
Mr. Peace thanked the U.S. Marshals Service for their assistance.
“Today’s guilty verdict is a direct result of the focused and collaborative efforts of dedicated investigators from the NYPD, FBI, and the office of the U.S. Attorney for the Eastern District of New York,” stated Interim NYPD Commissioner Donlon. “Gang activity, especially the carrying and indiscriminate shooting of illegal guns on our streets, instills fear in the daily lives of New Yorkers. It is crucial that we and our law enforcement partners continue to target and dismantle these criminal groups, and work toward preventing the violence that is so often associated with their activities.”
As proven at trial, Pena committed the crimes of conviction in connection with his leadership of GSM, which operated out of the Stapleton Houses, a public housing development on Staten Island. Members of GSM use intimidation, threats of violence and acts of violence to preserve and protect GSM’s power, territory and criminal activities. They also use drug trafficking as a means of obtaining money.
In the early morning hours of March 10, 2021, Pena fired multiple gunshots from close range at Mark Bajandas, also known as “Drama,” a former GSM associate and perceived rival, killing him. Bajandas, a former GSM member who had defected to the rival Bugatti set of USGN, suffered at least 12 gunshot wounds. The murder occurred after Pena and Bajandas had attended a memorial earlier in the evening to commemorate the death of Avanti Brock, a former GSM member who was murdered allegedly by Bugatti approximately one year earlier.
On June 22, 2021, Pena murdered Francisco Gonzalez, a former GSM member, by shooting him three times in the head while Gonzalez was asleep in bed next to Pena’s ex-girlfriend.
Law enforcement recovered writings from Pena’s jail cell at the Metropolitan Detention Center that included statements in which he took responsibility for the murders of Bajandas and Gonzalez, such as: “Kuz I Turn all my opps into ghost / Francisco I mix them N / Mark / A … shhh / Gotta chill … they don’t Know / Lately how I feel / Like the reaper / If I spot em I’m snatching his soul.” Pena also wrote about killing Gonzalez, including: “left his brains on them sheets man what was he thinkin’?,” referring to the fact that he had shot Gonzalez in the head while Gonzalez was asleep in bed.
Witness testimony and evidence obtained from cell phones proved that GSM members enriched themselves by selling controlled substances in and around the Stapleton Houses and also in Vermont, and that Pena was involved in the sale and distribution of marijuana, crack cocaine and heroin.
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 make our neighborhoods safer for everyone. As part of the program, U.S. Attorney’s Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Dana Rehnquist, Andrew Roddin and Elias Laris are in charge of the prosecution, with the assistance of Paralegal Specialist Elizabeth Reed and Assistant United States Attorney Matthew Galeotti.
The Defendant:
JOHN PENA (also known as “Tragedy,” “Don Tragg,” “Last Don” and Money Baggz”)
Age: 32
Staten Island, New YorkE.D.N.Y. Docket No.: 21-CR-176 (S-2) (AMD)
Labelle Man Pleads Guilty to Federal Drug and Firearms OffensesRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Joshua Leon Tyree (39, Labelle) has pleaded guilty to possessing methamphetamine with the intent to distribute it and possessing firearms in furtherance of a drug trafficking crime. Tyree faces a maximum penalty of life in federal prison. A sentencing date has not yet been set. Tyree has also agreed to forfeit the firearms and ammunition used to facilitate the offenses.
According to court documents, deputies from the Hendry County Sheriff’s Office executed a search warrant on Tyree’s residence and located, among other drugs, nearly one pound of methamphetamine for distribution, and 24 assorted rifles and handguns. Tyree told deputies that the items located in his residence belonged to him.
This case was investigated by the Hendry County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Patrick L. Darcey.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Justice Department Sues Visa for Monopolizing Debit MarketsRead the Press Release
The Justice Department filed a civil antitrust lawsuit today against Visa for monopolization and other unlawful conduct in debit network markets in violation of Sections 1 and 2 of the Sherman Act.
Filed in the U.S. District Court for the Southern District of New York, the complaint alleges that Visa illegally maintains a monopoly over debit network markets by using its dominance to thwart the growth of its existing competitors and prevent others from developing new and innovative alternatives.
According to the complaint, more than 60% of debit transactions in the United States run on Visa’s debit network, allowing it to charge over $7 billion in fees each year for processing those transactions. The complaint further alleges that Visa illegally maintains its monopoly power by insulating itself from competition. For example, Visa wields its dominance, enormous scale, and centrality to the debit ecosystem to impose a web of exclusionary agreements on merchants and banks. These agreements penalize Visa’s customers who route transactions to a different debit network or alternative payment system. In so doing, the complaint alleges, Visa locks up debit volume, insulates itself from competition, and smothers smaller, lower-priced competitors. Visa also induces would-be competitors to become partners instead of entering the market as competitors by offering generous monetary incentives and threatening punitive additional fees. As the complaint alleges, Visa coopted the competition because it feared losing share, revenues, or being displaced by another debit network altogether.
“We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market,” said Attorney General Merrick B. Garland. “Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service. As a result, Visa’s unlawful conduct affects not just the price of one thing – but the price of nearly everything.”
Debit transactions are an important and popular part of the U.S. financial system. Millions of Americans prefer or must use debit for online and in-person purchases. Visa dominates debit network markets that facilitate these transactions, charging significant fees and stifling competition in the process. Visa’s systematic efforts to limit competition for debit transactions have resulted in billions of dollars in additional fees imposed on American consumers and businesses and slowed innovation in the debit payments ecosystem. Through this lawsuit, the Justice Department seeks to restore competition to this vital market on behalf of the American public.
“Anticompetitive conduct by corporations like Visa leaves the American people and our entire economy worse off,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “Today’s action against Visa reminds those who would stifle competition rather than competing on price or investing in innovation that the Justice Department will never hesitate to enforce the law on behalf of the American people.”
“Visa fears competition and innovation, and instead chooses unlawful cooperation and monopolization,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Visa abuses its power over its customers and buys off would-be rivals at the expense of American consumers, merchants, banks, and the competitive process itself. Today’s lawsuit holds Visa accountable for its conduct in a market that forms the backbone of American commerce.”
Visa maintains enormous scale on both sides of the debit market — with merchants and their banks and with consumers and their banks — and the complaint alleges that Visa’s exclusionary practices extend, deepen, and protect what it refers to as an “enormous moat” around its business. When faced with the possibility that smaller debit networks or new technology entrants would threaten that position, Visa engaged in a deliberate and reinforcing course of conduct to cut off competition and prevent rivals from gaining the scale, share, and data necessary to compete for customers’ business:
- Smaller Debit Networks: Visa uses leverage based on the large number of transactions that must run over Visa’s payment rails to impose expansive volume commitments on merchants and their banks, as well as on financial institutions that issue debit cards. These agreements are priced so that, unless all or nearly all debit volume runs over Visa’s payment rails, large disloyalty penalties can be imposed on all Visa transactions. Merchants cannot afford to use Visa’s smaller competitors for transactions where options do exist, even when those competitors offer lower per-transaction prices.
- Tech Entrants: As Visa’s internal documents make clear, Visa feared that some technology companies and fintech startups with “network ambitions” would cut Visa out as the middleman between merchants, consumers, and their banks by offering a better or cheaper payment product. Visa aimed to stop that development by entering into agreements to pay potential competitors to partner instead of innovating. As Visa’s then-CFO put it: “Everybody is a friend and partner. Nobody is a competitor.”
In 2020, the Justice Department filed a civil antitrust lawsuit to stop Visa from acquiring Plaid, a technology company that powers fintech apps developing disruptive options for online debit payments. The companies abandoned their planned $5.3 billion merger.
Visa Inc. is a Delaware corporation headquartered in San Francisco. Visa has a global operating income of $18.8 billion and an operating margin of 64% in 2022. North America is among Visa’s most profitable regions with 2022 operating margins of 83%. Visa charges roughly $8 billion in network fees on U.S. debit volume annually. Globally, Visa processes $12.3 trillion in total payment volume.
Indianapolis Woman Sentenced to over Sixteen Years in Federal Prison for Selling Child Sexual Abuse Material Using Online ChatroomRead the Press Release
INDIANAPOLIS—Anjelica Clark, 35, of Indianapolis, has been sentenced to 200 months in federal prison, followed by five years of supervised release, after pleading guilty to advertising and possession of child sexual abuse material.
According to court documents, between May 21, 2022, and February 4, 2023, Clark used an adults-only chatroom website to advertise and sell child sexual abuse material. Clark uploaded more than 800 advertisements selling other users access to images and videos of child sexual abuse material in exchange payments through Venmo or CashApp. Approximately 400 of these advertisements contained images of the sexual abuse of children. Clark told some buyers that the material she had for sale included images of the sexual abuse of babies as young as seven-months-old.
Law enforcement officers also located a large collection of videos and photos on Clark’s cellphone, including files depicting adult men having sex prepubescent children.
“A civilized society is judged in large part by how we care for our children. This defendant demonstrated her utter disregard for children’s dignity or safety, instead working to profit from spreading depictions of their vile abuse,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Criminals who pollute the internet with these horrific videos and images of abuse will be found and held accountable. Our office will continue to use every tool and partnership we can to identify, investigate, and prosecute these dangerous predators.”
The U.S. Secret Service investigated this case. The sentence was imposed by U.S. District Judge James R. Sweeney II. Clark must also register as a sex offender wherever she lives, works, and goes to school upon her release from federal prison, and has been ordered to pay $13,000 in restitution.
U.S. Attorney Myers thanked Assistant U.S. Attorney Adam Eakman, who prosecuted this 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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
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Independence Man Sentenced for Fentanyl Trafficking, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute fentanyl and for illegally possessing a firearm.
Wiser Key, 25, was sentenced by U.S. District Judge Roseann Ketchmark to 25 years in federal prison without parole.
On March 27, 2024, Key pleaded guilty to one count of conspiracy to distribute fentanyl and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Key admitted that he engaged in drug transactions with an undercover law enforcement officer. In one transaction, for example, the undercover officer paid Key $8,500 in exchange for 1,000 counterfeit oxycodone tablets, which contained fentanyl. In another transaction, an undercover officer paid Key $6,000 in exchange for 750 counterfeit oxycodone pills, which contained fentanyl.
On April 30, 2021, law enforcement officers executed a search warrant at Key’s residence. Officers found multiple plastic bags that contained tablets, approximately 8 kilograms of suspected THC wax, approximately 39 grams of suspected cocaine, multiple bags of suspected marijuana, an FN handgun, a loaded Glock .40-caliber handgun, a loaded Springfield 9mm handgun, a loaded Sig Sauer .40-caliber handgun, a Harrington and Richardson 20-gauge shotgun, and $24,676 in cash.
According to court documents, Key distributed at least 120,000 counterfeit pills, which contained fentanyl, during the conspiracy. He and a co-defendant purchased 4,000 to 5,000 pills at a time from sources in Mexico.
Key is the first defendant to be sentenced in this case. Co-defendants Nilolas Albright, 30, of Cameron, Mo., and Demasjiay Cruse, 25, of St. Joseph, Mo., have pleaded guilty to their roles in the drug-trafficking conspiracy and await sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Maureen A. Brackett, Stephanie C. Bradshaw and John C. Constance. It was investigated by the U.S. Drug Enforcement Administration; the FBI; IRS-Criminal Investigation; the Kansas City, Kan., Police Department; the Kansas City, Mo., Police Department; the Buchanan County, Mo., Sheriff’s Department; and the St. Joseph, Mo., Police Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Hogansburg Man Sentenced for International Money Laundering ConspiracyRead the Press Release
ALBANY, NEW YORK – Carey Terrance, Sr., age 43, of Hogansburg, New York, was sentenced yesterday to time served and to pay a $350,000 fine in connection with a scheme to smuggle cut rag tobacco into Canada from the United States. Cut rag tobacco is tobacco cut into fine strips and used to make smoking tobacco.
United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Office, made the announcement.
As part of his previously entered guilty plea, Terrance, Sr. admitted that from approximately 2013 to 2016, he worked with co-conspirators to acquire cut rag tobacco and smuggle it into Canada, where it was made into contraband cigarettes. Members of the conspiracy sold the contraband cigarettes, making substantial profits by avoiding taxes and duties, and used some of their profits to buy more cut rag tobacco that they sent into Canada.
Funds to purchase the cut rag tobacco were sent from Canada, often through the Northern District of New York, to North Carolina. Once purchased, the cut rag tobacco was delivered to warehouses and buildings in the Northeastern United States, including on the St. Regis Mohawk Akwesasne Reservation, where it was staged for smuggling into Canada. Terrance admitted that he laundered $221,860.20 as part of the scheme; he forfeited that amount as part of sentence in addition to the fine imposed.
Senior United States District Judge Frederick J. Scullin, Jr. also imposed a 2-year term of post-imprisonment supervised release.
HSI and IRS-CI investigated this case, and Assistant U.S. Attorneys Allen J. Vickey and Alexander P. Wentworth-Ping prosecuted this case.
Hidalgo resident imprisoned for conspiring to import 13 kilograms of cocaine into United StatesRead the Press Release
McALLEN, Texas - A 45-year-old man has been sentenced for his role in a conspiracy to import cocaine from Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Jesus Andres Tijerina pleaded guilty June 4.
Chief U.S. District Judge Randy Crane has now ordered Tijerina to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence regarding Tijerina’s supervisory role in the drug trafficking organization.
On Jan. 21, 2020, Tijerina’s co-conspirator, Simon Salazar, arrived in a vehicle at the Anzalduas Port of Entry from Mexico. Law enforcement referred the vehicle for secondary inspection where they discovered 13 kilograms of cocaine concealed inside the vehicle and wrapped in bundles.
Upon further investigation, authorities discovered Tijerina was providing instructions for where Salazar should go in Mexico and how to deliver the narcotics once in the United States.
Salazar, 36, previously pleaded guilty and received 25 months in federal prison for his role in the conspiracy.
Tijerina will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Customs and Border Protection conducted the investigation.
Assistant U.S. Attorney Cahal P. McColgan prosecuted the case.
Founder and Former CEO of Artificial Intelligence Start-Up SKAEL Charged with Securities Fraud and Wire FraudRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Baba Nadimpalli, the founder and former Chief Executive Officer of SKAEL, Inc. (SKAEL), with securities and wire fraud for defrauding investors and misleading them about the company’s revenue, annual recurring revenue (ARR), and other financial and sales information.
According to an indictment filed Jan. 17, 2024 and unsealed Sept. 23, 2024, Nadimpalli, 41, a citizen of Australia who resided in San Francisco, Calif., founded SKAEL in 2016 and served as its Chief Executive Officer from 2016 until July 2022. SKAEL was a San Francisco-based, software-as-a-service (“Saas”) company that claimed to provide its corporate clients with artificial intelligence and automation software to assist customers with mundane, time-intensive tasks by building “Digital Employees,” which SKAEL claimed could connect databases, synthesize large amounts of information, provide information and insights, and perform tasks. SKAEL earned revenue by charging implementation fees for the building of Digital Employees and subscription fees for the use of the Digital Employees once they were built.
The indictment alleges that from January 2020 until about February 2022, SKAEL raised over $40 million in three rounds of financing. To induce prospective and existing investors to invest, Nadimpalli allegedly made false claims regarding SKAEL’s revenue and ARR (a measure of total revenue expected per year from committed customers with signed contracts, an important metric for investors), as well as customer and sales information. For example, in or around 2021, Nadimpalli allegedly provided materially false information to investors in advance of their investments in SKAEL, including representing that SKAEL was receiving ARR from certain companies that did not subscribe to SKAEL’s software and services; overstating ARR from certain customers who were SKAEL customers; and representing that customers who had terminated their SKAEL subscriptions were current customers with ARR.
The indictment further alleges that in or around February 2022, SKAEL raised approximately $30 million in a Series A preferred stock offering which valued SKAEL at approximately $230 million after closing. In connection with the stock offering, Nadimpalli allegedly directed the creation of an electronic data room for potential investors that contained (1) a spreadsheet that Nadimpalli maintained that contained materially false information about the company’s ARR and customers; (2) a materially false profit and loss statement; (3) a financial metrics spreadsheet that contained materially false subscription revenue and ARR amounts; and (4) an investor presentation that contained materially false information about the company’s ARR, revenue, and customer adoption.
As described in the indictment, in furtherance of the scheme, Nadimpalli provided an investor and a financial employee false bank account information that included purported customer payments that had not actually been deposited.
Nadimpalli is charged with three counts of securities fraud and seven counts of wire fraud. If convicted of securities fraud, he faces a maximum sentence of 20 years in prison and a fine of $5,000,000. If convicted of wire fraud, he faces a maximum sentence of 20 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 and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp.
The case is being handled by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorneys Noah Stern and Ilham Hosseini are prosecuting the case with the assistance of Mark DiCenzo. The prosecution is the result of an investigation by the FBI. The U.S. Attorney’s Office and the FBI thank the San Francisco Regional Office of the Securities and Exchange Commission, which announced today a parallel civil enforcement action against Nadimpalli in the Northern District of California.
Baba Nadimpalli indictment
Former President of Beverly Hills-Based Publisher Found Guilty of Embezzling at Least $1.3 Million from Company and Its OwnerRead the Press Release
LOS ANGELES – A Ventura County woman has been found guilty by a jury of defrauding a Beverly Hills-based independent publishing company and its owner by embezzling at least $1.3 million from the company and the owner’s personal bank account over several years for her own personal expenses, including spa treatment, veterinary bills, and designer handbags.
Kimberly Ann Miletta, 51, of Ventura, was found guilty late Monday of three counts of wire fraud.
According to evidence presented at a five-day trial, from 2009 to 2018, Miletta was president of Phoenix Books, an independent book and audio publisher owned by a victim identified in court documents as “J.O.” As the president of Phoenix Books, Miletta had full control over the business, including its finances, but she only was authorized to use company funds to pay for legitimate business expenses.
From October 2013 to January 2018, Miletta embezzled hundreds of thousands of dollars by using the company credit card – over which she had exclusive control – to pay for personal items, and then paid for the credit card bills out of the company’s owner’s personal bank account.
Miletta used the company credit card to pay for, among other things, personal spa treatments, designer handbags, high-end clothing, a multi-thousand-dollar mattress, and years’ worth of veterinary bills and pet products for her cats. Miletta fraudulently charged more than $185,000 worth of purchases at clothing and department stores to the company credit card. Miletta also made a fraudulent wire transfer out of the personal account of the company’s owner of nearly $1 million, which Miletta used to buy an ocean-view home in Ventura.
The jury found Miletta not guilty of two additional counts of wire fraud.
United States District Judge Maame Ewusi-Mensah Frimpong scheduled a January 10, 2025, sentencing hearing, at which time Miletta will face a statutory maximum sentence of 20 years in federal prison for each count.
The FBI investigated this matter.
Assistant United States Attorneys Jenna G. Williams of the Corporate and Securities Fraud Strike Force and Declan T. Conroy of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Former Omaha Woman Sentenced for Theft from a Program Receiving Federal FundsRead the Press Release
United States Attorney Susan Lehr announced that Carolynne R. Parker, also known as Carolynne R. Noffsinger, age 51, formerly of Omaha, Nebraska, was sentenced September 23, 2024, in federal court in Lincoln, Nebraska for theft from a program receiving federal funds. Parker currently resides in Maineville, Ohio. Senior United States District Judge John M. Gerrard sentenced Parker to 21 months’ imprisonment. There is no parole in the federal system. After Parker’s release from prison, she will begin a 3-year term of supervised release.
In imposing the sentence, Senior Judge Gerrard commented that in 24 years as a Judge, he had “never had anyone take less responsibility” for their actions than Parker.
In December 2017, a local family practice medical clinic, Fallbrook Family Health Center, hired Carolynne Parker as a consultant. Parker had reached out to the medical community advertising her consulting business – Acute Practice Solutions (APS).
As a consultant with the medical clinic, Parker assisted with a government program called CPC+, which provided medical practices with financial resources to improve quality of care and reduce the number of unnecessary services for patients. Parker’s responsibilities included reaching out and reminding patients to schedule preventative care appointments, as well as documenting and then reporting to the government that care so that the clinic would be reimbursed.
Parker’s consultant contract ended in March 2018. However, Parker expressed how much she enjoyed working at the clinic and, in July of 2018, was hired as the clinic’s chief operating officer (COO) to continue to expand the clinic’s value-based care practice, as well as handle general office management duties. The job duties included handling staffing issues, paying the bills, billing insurance, managing employee benefits, payroll, and general accounting.
As the COO, Parker had significant authority over the business of the clinic. For example, she exclusively did their payroll and banking.
In August of 2019, IRS agents showed up at the clinic and told the doctors they were behind on employment tax payments. Parker told the doctors she would fix the issue, telling them she had forgotten to send in a piece of paper. Concerned that the IRS generally did not stop by to pick up paperwork, staff members at the clinic became concerned about Parker’s activities. That same month, at a monthly staff meeting, Parker told the clinic they had $300,000 more in additional expenses then in the previous year and she could not explain why. Concerned about the state of the clinic’s finances under Parker, the Fallbrook’s owners asked for an explanation. Parker was unable to provide an answer and was terminated from her employment.
After Parker was terminated, several accountants were consulted to help run the business side of the clinic. Their review indicated that the clinic’s finances had been horribly mismanaged by Parker. Further investigation uncovered that Parker had repeatedly changed her salary over the course of her employment, at times inflating it by as much as 45%. Parker also directly deposited money from the clinic into her personal account without permission on multiple occasions. These transactions ranged from $500-$2,800. Finally, Parker continued to write checks to her consulting company, even though the contract had ended in March of 2018. The first fraudulent check was written by the defendant the day after the previous office manager left.
Investigators found a total of $27,800 in unauthorized direct deposits from the clinic to Parker, $16,608.38 in overpayment of wages, after Parker set her salary for payroll purposes higher than agreed upon and $64,960 in unauthorized checks written by Parker to her consulting firm for work that she never did. In sum, the evidence showed that the defendant stole $109,368.38 from the clinic. A review of Parker’s personal accounts showed most of the stolen funds were spent on travel or retail expenses such as clothes or coffee to benefit herself.
In addition to directly stealing from Fallbrook, Parker neglected to fulfill many of her job duties. At the time of her termination, she had run up around $50,000 in fines and penalties for the clinic payable to the IRS due to her non-payment of various taxes. She also left many other bills unpaid, leading several venders to terminate contracts with the clinic and attempt to send them to collection. Parker also did not bill insurance correctly and it is estimated that over a million dollars was withheld from Fallbrook for medical work done because of her actions.
Parker entered a plea of no-contest to the charges. Evidence was presented during the course of her sentencing hearing. In reviewing Parker’s version of the events, Senior Judge Gerrard observed that Parker was “incapable of telling the truth.”
At the time of her sentencing, Parker was working with a health care agency in Ohio, working with substance abuse patients.
This case was investigated by agents and investigators with the Lincoln Police Department and the Federal Bureau of Investigation, both of whom would remind local businesses to carefully divide office management duties and to rely on a series of checks and balances.
Former Ohio Municipal Prosecutor and Former Criminal Defendant Charged with Bribery ConspiracyRead the Press Release
An indictment was unsealed today charging two Ohio men with a bribery scheme in which a municipal prosecutor agreed to help a criminal defendant with his pending cases in exchange for auto repair work.
According to the indictment, Nicholas Graham, 52, of Warren, was a prosecutor who represented the City of Warren in Warren Municipal Court. Brian Votino, 52, of Niles, had two criminal cases pending in the same court. The indictment alleges that, in October 2019, Graham and Votino agreed that Graham would take action to benefit Votino with respect to Votino’s criminal cases in return for Votino performing repairs to Graham’s truck. To cover up the bribery arrangement, Graham instructed Votino through an intermediary to falsify a bill for the repair services and not to tell Votino’s criminal defense lawyer. According to the indictment, Graham and Votino ultimately carried out their agreement. In exchange for the repair work by Votino, Graham took official action to reduce the charges against Votino and advocated for a lenient sentence.
Graham and Votino are charged with one count of conspiracy, one count of honest services wire fraud, and one count of Hobbs Act extortion. If convicted of all counts, they each face a maximum penalty of 45 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; U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio; and Special Agent in Charge Gregory D. Nelsen of the FBI Cleveland Field Office made the announcement.
The FBI Cleveland Field Office is investigating the case.
Trial Attorney Blake J. Ellison of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Elliot Morrison for the Northern District of Ohio 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.
Former Ohio Municipal Prosecutor and Former Criminal Defendant Charged with Bribery ConspiracyRead the Press Release
CLEVELAND - An indictment was unsealed charging two Ohio men with a bribery scheme in which a municipal prosecutor agreed to help a criminal defendant with his pending cases in exchange for auto repair work.
According to the indictment, Nicholas Graham, 52, of Warren, was a prosecutor who represented the City of Warren in Warren Municipal Court. Brian Votino, 52, of Niles, had two criminal cases pending in the same court. The indictment alleges that in October 2019, Graham and Votino agreed that Graham would take action to benefit Votino with respect to Votino’s criminal cases in return for Votino performing repairs to Graham’s truck. To cover up the bribery arrangement, Graham instructed Votino through an intermediary to falsify a bill for the repair services and not to tell Votino’s criminal defense lawyer. According to the indictment, Graham and Votino ultimately carried out their agreement. In exchange for the repair work by Votino, Graham took official action to reduce the charges against Votino and advocated for a lenient sentence.
Graham and Votino are charged with one count of conspiracy, one count of honest services wire fraud, and one count of Hobbs Act extortion. If convicted, they each face a maximum penalty of 45 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; U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio; and Special Agent in Charge Gregory D. Nelsen of the FBI Cleveland Division made the announcement.
The FBI Cleveland Division is investigating the case.
Trial Attorney Blake J. Ellison of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Elliot Morrison for the Northern District of Ohio are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Case update Nov. 20, 2025:
Both defendants pleaded guilty to the conspiracy charge in summer 2025. Judge Solomon Oliver Jr. imposed the following sentences:
- Nov. 19, 2025 – Graham was sentenced to 3 years of probation with the first 5 months to be served on home detention with electronic monitoring. He was also ordered to complete 120 hours of community service. Graham pleaded guilty on August 13, 2025.
- Nov. 14, 2025 – Votino was sentenced to 3 years of probation with the first 60 days to be served on home detention with electronic monitoring. He was also ordered to complete 160 hours of community service. Votino pleaded guilty on July 16, 2025.
Florida Man Convicted of Sex Trafficking Nearly a Dozen Women and GirlsRead the Press Release
MIAMI – Following a nine-day trial, a federal jury in the Southern District of Florida convicted Shannima Yuantrell Session, also known as Shalamar, 47, of Lake Placid, Florida, on 13 charges for sex trafficking nearly a dozen women and girls. Session compelled some of his victims to commit commercial sex acts between July 2011 and July 2013, and he compelled other victims to commit commercial sex acts between February 2016 and February 2019.
“Vindicating the rights of human trafficking victims and other vulnerable persons ranks among the highest priorities of our office,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Human trafficking is a crime of exploitation. We will not allow human traffickers to prey upon others for profit, as humans are not commodities but rather demand our united protection. Our office’s dedicated prosecutors, victim witness coordinators, and support personnel will continue to work with our law enforcement partners to combat human trafficking and bring offenders to justice.”
“The defendant used despicable and horrific means to terrify and coerce nearly a dozen women and girls to engage in commercial sex,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to protecting vulnerable victims from such cruel exploitation. This prosecution reflects that commitment. It is a testament to the courageous young women who cooperated with law enforcement to expose, prosecute and hold accountable this defendant for the years of misery he inflicted on scores of women.”
“This verdict is a step towards justice for the nearly dozen victims who were forced by Shannima Yuantrell Session into sex trafficking and endured his reign of horrendous and abusive control,” said Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office. “It is a testament to the cooperation and commitment of several law enforcement agencies including the Highlands County Sheriff’s Office, the U.S. Attorney’s Office for the Southern District of Florida and the Justice Department’s Civil Rights Division. We will continue working with these and other partners to dismantle human trafficking networks that operate in the shadows and brutalize their victims.”
Evidence presented during the trial established that Session made promises of legitimate work and housing assistance to women and girls struggling with unstable living accommodations, substance abuse and neglect or who otherwise led unstable lives. Session’s promises were often false and empty, designed to provide him the opportunity to learn about a victim’s vulnerabilities while misrepresenting himself as caring and empathetic. Session then exploited the victims’ vulnerabilities to compel their commercial sex acts in squalid trailers housing migrant workers or in local orange groves.
At times, Session used food and housing to control and coerce the victims. For example, he would not permit one of his victims to eat if the victim did not follow his instructions. Often, Session required his victims to engage in sexual activity with him after they had spent a night having compelled sexual intercourse with up to 18 men.
Further, the evidence presented during the trial demonstrated that Session resorted to extreme physical violence to compel and intimidate certain victims. He violently punched some of the victims in the back of their heads in order not to leave marks on their bodies. Once, Session dragged a victim to a shower and beat her in the back of her head with a metal nutcracker until she fell limp to the floor. Session also choked another victim to the point that she lost consciousness, beat another victim with a baseball bat and brutalized yet another so badly that her nose ring fell out due to the force of the assault. In addition, Session took multiple victims to a nearby lake, where he held their heads underwater and threatened to drown them if they did not do as he ordered.
The evidence also showed that Session used a firearm to intimidate and control his victims. He consistently kept a firearm in his possession, and frequently displayed it to victims or referred to it when talking with them. Once, Session pointed a firearm at a victim while he was driving and threatened to “kill” her after she asked him how he would feel if someone treated his daughter the way he treated her. Fearing for her life when Session stopped the car and began walking to the passenger side door, the victim jumped out of the car and ran towards nearby woods. In response, Session fired a shot into the air while he called out the victim’s name.
Finally, the evidence indicated that Session manipulated and took advantage of some victims’ substance abuse problems to compel their commercial sex services. For example, Session provided victims with cocaine and methamphetamine to give them sufficient energy to engage in commercial sex acts with multiple migrant men at nearby trailers.
A sentencing hearing is scheduled for Dec. 19. Session faces a minimum penalty of 15 years in prison and a maximum penalty of life in prison as well as mandatory restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Miami Field Office, Ft. Pierce Resident Agency, investigated the case, with assistance from the Highlands County, Florida, Sheriff’s Office.
Assistant U.S. Attorney Justin Hoover for the Southern District of Florida and Trial Attorneys Leah Branch and Matthew Thiman of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-14074.
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Felon Who Ran from the Police While Armed and Resisted Officers Sentenced to Serve Time in Federal PrisonRead the Press Release
A man who possessed a firearm as a felon was sentenced today to 57 months in federal prison.
Lawrence Lamar Newell, III, age 20, from Cedar Rapids, Iowa, received the prison term after an April 12, 2024 guilty plea to one count of possessing a firearm as a felon. Newell had previously been convicted of burglary in the second degree and assault while displaying a dangerous weapon.
During a traffic stop, Newell, who was a passenger in a car, tried to run from police on foot. Newell and a law enforcement officer struggled on the ground and Newell tried, multiple times to reach for a gun located in his waistband. During the struggle, Newell retrieved the firearm from his waistband and continued to resist commands to drop the gun.
Newell was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Newell was sentenced to 57 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.
Newell 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 Attorney Nicole L. Nagin, and it was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime.
Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 24-CR-00007.
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Federal Jury Convicts Prairieville Man of Attempted Coercion and Enticement of a MinorRead the Press Release
United States Attorney Ronald C. Gathe, Jr., announced the conviction of Darryl Felder, age 43, of Prairieville, Louisiana. After a three-day trial before U.S. District Court Judge John W. deGravelles, the jury unanimously convicted Felder of attempted coercion and enticement of a minor.
As the evidence at trial demonstrated, over an 8-day period in January 2023, Felder enticed an undercover agent whom he believed to be 15 years old, to engage in sexual activity using cell phones and the internet.
As a result of his conviction, Felder now faces a minimum term of imprisonment of 10 years and a maximum term of life.
This case was investigated by the U.S. Homeland Security Investigations and the Louisiana Bureau of Investigation for the Office of the Attorney General and was prosecuted by Assistant United States Attorneys Paul L. Pugliese and Stephen Vick.
Federal Court Permanently Shuts Down Illinois Tax PreparerRead the Press Release
A federal court in the Northern District of Illinois today permanently enjoined Joliet, Illinois, tax return preparer Sir Michael Joseph Davenport and his company My Unity Tax Financial & Tax Preparation LLC (My Unity Tax) from preparing federal tax returns for others and from owning or operating any tax return preparation businesses in the future. Davenport agreed to the permanent injunction entered against him and his business.
The civil complaint filed in the case alleges that Davenport and his company prepared false and fraudulent federal tax returns to improperly reduce the customers’ tax liabilities or to obtain tax refunds to which the customers are not entitled. The complaint alleges that Davenport and My Unity Tax routinely prepared tax returns for customers reporting fictitious businesses for customers, minimal or no income and large fabricated or manipulated expenses to fraudulently reduce taxable income. As alleged in the complaint, in most cases these businesses did not exist.
The complaint also alleges that, despite being issued a Preparer Tax Identification Number (PTIN) by the IRS, Davenport operated as a “ghost preparer” by not signing customers’ tax returns, nor did he identify himself as the paid preparer by reporting his PTIN on the returns he prepared for paying customers. As further alleged by the United States, Davenport and My Unity Tax used software programs intended for personal rather than professional use to prepare their clients’ tax returns, so when the returns were filed, it appeared that customers filed the returns themselves.
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.
Davenport Stipulated judgment PI.pdfFederal Agents Seize and Shut Down Royal Inn Hotel in Phoenix Due to Drug Trafficking and Other Unlawful ActivitiesRead the Press Release
Owner, Operator, and Corporate Entity Charged with Travel Act violations, Money Laundering, and Maintaining a Drug Premises
PHOENIX, Ariz. – Today, the Federal Bureau of Investigation and United States Marshal Service, in coordination with the Phoenix Police Department, executed search and seizure warrants at the Royal Inn hotel, located at 2510 West Palo Verde Drive in Phoenix. Federal agents seized control of the hotel and shut down its operations due to widespread prostitution and drug trafficking activities that have gone unabated by its owners and operators.
Also today, the United States District Court unsealed a 44-count indictment returned by a federal grand jury on September 17, 2024, against the Royal Inn’s owner, operator, and corporate entity, among others. Specifically:
- Varsha Patel, 56, of Chino Hills, California, the owner of Royal Inn, was charged with two counts of Using a Facility of Interstate Commerce in Aid of Racketeering, one count of Maintaining a Drug Premises, and 34 counts of Promotional Money Laundering. Varsha Patel was also charged with multiple counts of Making False Statements to Obtain a Small Business Administration Loan.
- Sarang Hospitality LLC, aka Royal Inn, the Arizona corporation through which the hotel does business, was similarly charged with two counts of Using a Facility of Interstate Commerce in Aid of Racketeering, one count of Maintaining a Drug Premises, and 34 counts of Promotional Money Laundering.
- Nilam Patel, 54, of Phoenix, the live-in operator and day-to-day manager of the Royal Inn, was also charged with two counts of Using a Facility of Interstate Commerce in Aid of Racketeering, one count of Maintaining a Drug Premises, and 34 counts of Promotional Money Laundering.
- Four other individuals were charged with Distribution of Fentanyl and Methamphetamine for drug dealing at the Royal Inn: Anthony Curtis, 42, of Buckeye; Otis Childers, 31, of Phoenix; Chauntelle Mills, 24, of Phoenix; and Leonardo Guerrero, 49, of Phoenix.
The indictment alleges that defendants Varsha Patel, Nilam Patel, and Sarang Hospitality LLC, operated the Royal Inn by primarily renting rooms to individuals engaging in prostitution and drug dealing. From 2017 through September 2024, these defendants used the funds they obtained from the Royal Inn room rentals to maintain and promote the Royal Inn’s operations; pay the mortgage on personal property located in Chino Hills, California; fund certificates of deposit; purchase life insurance policies; and pay for their own personal expenses.
The indictment further alleges that Varsha Patel, Nilam Patel, and Sarang Hospitality LLC were aware that most activities at the Royal Inn were illegal acts of prostitution, drug dealing, and drug using. Over the course of several years, Phoenix Police Department officials repeatedly informed these three defendants of the drug dealing and prostitution activities on the property, of the hundreds of calls for service local police received, and of the need to abate the criminal activities taking place. Despite having been served with multiple abatement letters, these defendants continued to operate the Royal Inn to intentionally facilitate and profit from the criminal activities occurring on the premises. This included: renting rooms to persons who overtly engaged in prostitution, and to persons who distributed illegal drugs; directing the sex workers to attract sex buyers off the property, and to walk separate from the sex buyer while going to the room; directing the sex workers, pimps, and drug dealers to park off the property; alerting sex workers, pimps, and drug dealers of law enforcement presence; failing to request a credit card, together with a government-issued identification, in order to rent a room; failing to evict persons engaged in prostitution and drug dealing, thereby allowing lengthy stays at the Royal Inn without detection; and failing to call the police when criminal activities were occurring.
A conviction for Using a Facility of Interstate Commerce in Aid of Racketeering carries a maximum penalty of five years in prison and a $250,000 fine. A conviction for Maintaining a Drug Premises carries a maximum penalty of 20 years in prison and a $500,000 fine. A conviction for Promotional Money Laundering carries a maximum penalty of 20 years in prison and a $500,000 fine. A conviction for Making False Statements to Obtain a Small Business Administration Loan carries a maximum penalty of two years in prison and a $250,000 fine. A conviction for Distribution of Fentanyl and Methamphetamine carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
An indictment is simply a method by which a person or entity is charged with criminal activity and raises no inference of guilt. A criminal defendant is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
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 Federal Bureau of Investigation, United States Marshal Service, and Phoenix Police Department conducted the investigation in this case. Assistant U.S. Attorneys Gayle Helart and Patrick Chapman, United States Attorney’s Office, District of Arizona, Phoenix, are handling the prosecution.
indictment_royal_inn.pdf
CASE NUMBER: CR-24-01529-PHX-SPL
RELEASE NUMBER: 2024-127_PatelFayette County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – John Gray, 39, of Oak Hill, pleaded guilty today to distribution of a quantity of methamphetamine.
According to court documents and statements made in court, on March 28, 2023, Gray sold approximately 2 pounds of methamphetamine to a confidential informant in Oak Hill. Gray admitted to the transaction and further admitted to selling approximately 848 grams of methamphetamine to a confidential informant in Oak Hill on May 1, 2023.
Gray also admitted to selling 3 grams of fentanyl on May 3, 2024, and another 3 grams of fentanyl on May 6, 2024, each time to a confidential informant in Oak Hill. During a March 1, 2024, interview with law enforcement officers, Gray admitted that he had been distributing approximately 3 grams of fentanyl three times per week from April 2023 until his arrest in March 2024.
Gray is scheduled to be sentenced on January 24, 2025, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Virginia State Police – Bureau of Criminal Investigation (BCI), and the Central Regional Drug and Violent Crime Task Force.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-31.
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Elmo man sentenced to three years in prison for defrauding Social Security Administration by stealing deceased mother’s benefits; lying to personally receive fundsRead the Press Release
MISSOULA — A federal judge today sentenced an Elmo man to three years in prison and ordered $95,722 restitution for stealing his deceased mother’s Social Security benefits and underreporting his income and assets to receive Social Security Administration benefits, U.S. Attorney Jesse Laslovich said.
The defendant, Gerry Alen Albus, 64, pleaded guilty in May to theft of government money and Social Security fraud as indicted.
U.S. District Judge Donald W. Molloy presided. The court also ordered three years of supervised release after incarceration. Albus was ordered to self-report to the Bureau of Prisons.
In court documents, the government alleged that in May 2015, Albus was approved to receive Supplemental Security Income benefits from SSA and was advised of his legal obligation to accurately report his income, resources and household composition. In October 2016, Albus reported to SSA that he had moved to Elmo, lived alone and paid rent to his landlord, when in fact, he did not pay rent and his landlord was his romantic partner. In 2017, Albus and his partner converted his partner’s property into a dog grooming business.
The government further alleged that Albus did not disclose his ownership interest in property he co-owned in Florida with his mother or proceeds from the sale of the property in June 2017. Albus’ mother died in March 2017, but SSA continued to send her monthly payments until it learned of her death through this investigation. From March 2017 until November 2021, Albus took his mother’s SSA payments and used them for his personal expenses. Albus also failed to report other assets, including three vehicles, several bank accounts and proceeds from the dog grooming business.
In a May 2022 interview with SSA special agents, Albus admitted he took his mother’s benefits after her death because he felt he was “entitled” to them. SSA determined Albus received approximately $60,627 in SSI benefits for which he was ineligible and stole an additional $59,535 in SSA funds intended for his mother.
The U.S. Attorney’s Office prosecuted the case. The SSA Office of Inspector General and Montana Division of Criminal Investigation conducted the investigation.
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Eighth Defendant Sentenced in Meth Conspiracy Tied to Officer’s MurderRead the Press Release
ABINGDON, Va. – An Appalachia, Virginia man, who participated in a conspiracy to distribute methamphetamine tied to the murder of Big Stone Gap, Virginia Police Officer Michael Chandler, was sentenced today in federal court in the Western District of Virginia.
Christopher Bates, 31, was sentenced today to 78 months in federal prison. Bates is the eighth defendant to be sentenced for his role in the conspiracy.
Previously sentenced for their role in the conspiracy were: Timothy Ray Jones - 235 months; Charles Ryan Bowman 120 months; Elicia Amber Burns 172 months; James Brian Mullins 180 months; Justin Dwayne Skaggs 132 months; Tyler Lee Westmoreland 54 months; and James Ray Worley 120 months.
A total of 19 defendants have been charged for conspiring to distribute more than 100 pounds of methamphetamine, as well as heroin and fentanyl. According to court documents, beginning in August 2021 and continuing until their arrest, the 19 defendants participated in a conspiracy to traffic methamphetamine from Tennessee and other states into southwest Virginia, and then further distribute it throughout Wise County, Virginia.
Tragically, at approximately 4:00 a.m. on November 13, 2021, Officer Chandler responded to a welfare check call at 2505 Orr Street in Big Stone Gap. This address, known locally as “the red house,” was well-known to police and often the subject of calls for service for civil disturbances, warrant service, welfare checks, overdoses, complaints of assaults, and drug-related activities.
Upon arriving at the Orr Street address, Officer Chandler encountered a vehicle outside the residence and was immediately shot by Michael Donivan White. Officer Chandler died later that evening from his injuries. White was later located at a motel in Kingsport, Tennessee and a subsequent search of the motel room revealed a Taurus, 9mm pistol. Further testing ultimately proved this firearm to be the same one that fired the shots that killed Officer Chandler. Michael Donivan White was indicted on federal charges for killing Officer Chandler and has since pled guilty. White is scheduled to be sentenced in federal court in Abingdon on November 20, 2024.
United States Attorney Christopher R. Kavanagh, and James VanVliet, Acting Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The investigation of this case is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Virginia State Police, the United States Marshal’s Service, the Wise County Sheriff’s Office, the City of Norton Virginia Police Department, the Kingsport Tennessee Police Department, the Big Stone Gap Police Department, the Wise County Commonwealth’s Attorney’s Office, the East Tennessee Drug Task Force, and the Southwest Virginia Drug Task Force, which is comprised of investigators from the Virginia State Police, Lee County Sheriff’s Office, Scott County Sheriff’s Office, Wise County Sheriff’s Office, City of Norton Police Department, and Big Stone Gap Police Department.
Assistant U.S. Attorney Lena L. Busscher is prosecuting the case.
Court Sentences Mobile Woman to 2 Years Imprisonment for Possessing a Firearm as a Convicted FelonRead the Press Release
MOBILE, AL – On September 20, 2024, United States District Court Judge Kristi K. DuBose sentenced Elizabeth Elaine Pemberton to 24 months imprisonment for Possession of a Firearm as a Convicted Felon.
Documents filed with the Court established that on August 5, 2022, the Bayou La Batre Police Department (BLBPD) was assisting the Mobile Police Department (MPD) in the arrest of two individuals in their area that had active felony warrants, to include Pemberton.
BLBPD officers attempted to stop a vehicle in which Pemberton was a passenger. This resulted in a high-speed chase which ended when the vehicle being pursued attempted to make a sharp right turn and wrecked into a ditch. Officers later located a Taurus 9mm handgun in the vehicle near where Pemberton was seated. Pemberton admitted that she was in possession of the weapon. The weapon was determined to be stolen. Pemberton also had a small amount of methamphetamine in her possession. Pemberton had previously been convicted of the following felony offenses: Burglary Third Degree, on or about July 21, 2014; Felony Obstruction of Justice, on or about July 21, 2014; and Possession of a Controlled Substance, on or about July 21, 2014. All felony convictions were prosecuted in the Circuit Court of Mobile County. The Taurus handgun was not manufactured in the state of Alabama and thus affected interstate commerce by its transportation into the state of Alabama.
The case was investigated by the Bureau of Alcohol Tobacco and Firearms, the City of Mobile Police Department and the City of Bayou La Batre Police Department. The case was prosecuted by Assistant United States Attorney George F. May.
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 U.S. Department of Justice 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 Felon Sentenced to 40 Months in Federal Prison for the Possession of Firearms, Ammunition, Machineguns and Homemade SilencersRead the Press Release
CONCORD – A Jaffrey man was sentenced yesterday in federal court for firearm offenses, U.S. Attorney Jane E. Young announces.
Luke Czekalski, 38, was sentenced by U.S. District Court Chief Judge Landya McCafferty to 40 months in prison and 3 years of supervised release. On June 3, 2024, Czekalski pleaded guilty to possession of firearms which were not registered to him in the National Firearms Registration and Transfer Record.
“The defendant lost his right to possess firearms when he was convicted of a prior felony. Undeterred, he possessed an arsenal in his basement which included firearms, ammunition, and loaded magazines. The National Firearm Act has additional specific prohibitions regarding the possession of machine guns and silencers, which the defendant also had in his residence,” said U.S. Attorney Jane E. Young. “Law enforcement in the District of New Hampshire will continue to use all resources available to remove illegal weapons from the streets and out of the hands of felons.”
"Illegally possessed firearms continue to pose significant challenges for law enforcement, especially with the growing threat of firearms illegally modified for fully automatic fire," said James M. Ferguson, Special Agent in Charge of the ATF Boston Field Division. "Through collaboration with our law enforcement partners, we are committed to identifying, targeting, and removing these illegal weapons to enhance the safety of our communities and protect the public."
In November 2022, New Hampshire state parole officers conducted an unannounced visit at the defendant’s residence in Jaffrey, New Hampshire. The defendant was on parole following his release from custody for a prior felony conviction. While the parole officers conducted their search, they encountered several bins in the basement that contained firearms, ammunition, loaded magazines, as well as body armor and other miscellaneous items. Members of the Jaffrey Police Department then provided additional assistance, leading to the seizure of eight homemade firearms and five homemade silencers in addition to assorted ammunition. After testing, three of the firearms displayed fully automatic firing capabilities during test fires, thus making them “machineguns” under federal law.
The Bureau of Alcohol Tobacco Firearms and Explosives and the Jaffrey Police Department led the investigation. The New Hampshire Department of Corrections’ Division of Field Services and New Hampshire Forensic Laboratory provided valuable assistance. Assistant U.S. Attorney Charles L. Rombeau is prosecuting the case.
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Convicted Felon Found Guilty of Shooting a Transgender VictimRead the Press Release
WASHINGTON – A Superior Court jury, today, found Jerry Tyree, 46, of Washington, D.C., guilty of aggravated assault while armed for shooting the victim on November 29, 2023, in the 5900 block of Foote Street NE, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
The jury found Tyree guilty, following a two-week trial, of one count of aggravated assault while armed, one count of possession of a firearm during a crime of violence, two counts of felon in possession of a firearm, and one count of attempted possession of liquid PCP. Tyree faces a mandatory minimum term of 10 years incarceration for aggravated assault while armed. The Honorable Judge Errol Arthur scheduled sentencing for December 13, 2024.
According to the government’s evidence, the defendant met the victim at the intersection of Eastern Avenue NE and Foote Street NE shortly before 2:00 p.m., on November 29, 2023. After negotiating a price for oral sex, the defendant and the victim walked together into a nearby apartment building, where the victim performed oral sex on the defendant. The defendant then accused the victim of robbing him, and when she denied doing so, the defendant pulled out a small silver handgun and shot the victim directly in the penis before leaving the scene. Police were called by a neighbor and the victim was transported to the hospital, where she underwent multiple surgeries.
A month later, on December 30, 2023, the defendant was arrested in possession of that same small silver handgun less than a mile from the shooting and in possession of several vials, including one that was partially filled with suspected PCP. Tyree was identified as the shooter from November 29, 2023, based on an identification procedure, ballistics evidence, and DNA evidence connecting him to the scene.
The defendant was convicted in 2005 of voluntary manslaughter and use of a firearm during a crime of violence in Maryland, and in 2022 of attempted possession with intent to distribute PCP, in Washington, DC.
This case was investigated by the Metropolitan Police Department. It was prosecuted and tried by Assistant U.S. Attorneys Anthony Cocuzza and Daniel Bromwich.
Columbia Man Sentenced to Federal Prison for Assaulting a Deputy U.S. MarshalRead the Press Release
COLUMBIA, S.C. — Johnny Mercer Vanover, 49, of Columbia was sentenced to 30 months in federal prison after pleading guilty to assault on a federal employee.
Evidence presented to the court showed that on June 29, 2023, officers with the South Carolina Department of Corrections transported Vanover to federal court in Columbia to be arraigned on federal charges. When Vanover arrived, a Deputy U.S. Marshal asked him to turn around so his restraints could be removed. Vanover refused to comply, and a deputy placed a hand on Vanover’s shoulder to turn him around and access his restraints. Vanover resisted and began cursing and yelling. He also clinched his fists and told one of the deputies, “I’ll eat you up.” Deputies assisted Vanover to the ground and during the struggle, Vanover bit one deputy on the bicep causing bleeding. The bitten Deputy U.S. Marshal was admitted to the hospital and released with minor injuries.
United States District Judge Sherri A. Lydon sentenced Vanover to 30 months imprisonment, to be followed by a two-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
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Columbia Man Sentenced for Firearm Offense After a Call from a Concerned CitizenRead the Press Release
COLUMBIA, S.C. — Marquise Edward Carolina, 32, of Columbia was sentenced to more than five years in federal prison after pleading guilty being a felon in possession of a firearm.
Evidence presented to the court showed that on Aug. 11, 2019, the City of Columbia Police Department received a call from a concerned citizen who reported that a man dressed in all black, driving a black vehicle, was waiving a gun around at a local apartment complex in the middle of the day. Officers responded to the scene and observed Carolina wearing all black in the front passenger’s seat of a black sedan. Officers searched Carolina and found a loaded pistol in his pants.
Carolina has prior convictions for attempted armed robbery, kidnapping, burglary, possession of cocaine, and possession of crack cocaine, all of which prevent him from carrying a firearm under federal law. Additionally, Carolina has convictions for assault and battery 3rd degree and domestic violence 3rd degree.
United States District Judge Sherri A. Lydon sentenced Carolina to 63 months imprisonment, to be followed by a two-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Columbia Police Department. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
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Co-Conspirator Sentenced to 210 Months for His Role in Fentanyl and Methamphetamine Drug ConspiracyRead the Press Release
TULSA, Okla. – Today, U.S. District Judge John D. Russell sentenced Gary Don McElroy, 55, for Drug Conspiracy. Judge Russell ordered McElroy to 210 months imprisonment, followed by five years of supervised release.
According to court documents, in October 2023, Tulsa Police officers conducted a routine traffic stop due to an expired tag. McElroy was a passenger in the vehicle and the driver did not have a valid driver’s license or insurance. During the traffic stop, officers observed a large box containing small baggies of white crystal substance. While officers conducted their investigation, the driver sped off. After a short pursuit, McElroy and the driver were detained. Officers found drug paraphernalia and discovered the box was thrown out of the vehicle during the pursuit.
It was later determined that both McElroy and the driver had more than 110 grams of fentanyl and more than 2,760 grams of methamphetamine. McElroy will remain in custody pending transfer to the U.S. Bureau of Prisons.
The driver is McElroy’s cousin and was charged as a co-defendant. Shelly Annette McElroy, 53, of Tulsa, was sentenced last month for her involvement in the Drug Conspiracy. Judge Russell ordered McElroy to 292 months imprisonment, followed by five years of supervised release.
Drug Enforcement Administration and the Tulsa Police Department investigated the case. Assistant U.S. Attorneys Adam McConney and Niko Boulieris prosecuted the case.
Burlington County Man Charged with Drug and Firearm CrimesRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man has been charged with drug and firearm offenses, U.S. Attorney Philip R. Sellinger announced today.
Daniel Garcia Jr., 27, of Maple Shade, is charged by complaint with possession with intent to distribute over 50 grams of methamphetamine and possession of firearms by a convicted felon. His initial court appearance will be scheduled for a later date.
According to documents filed in this case and statements made in court:
On June 23, 2024, at approximately 12:35 p.m., Garcia and another individual rushed a minor to the hospital because the minor was not breathing, was having seizures, drooling, and unresponsive. The minor was treated at the hospital and was later flown to a children’s hospital, where care continued. Drug screening tests for the minor were positive for benzodiazepine, fentanyl, and cocaine. Medical personnel at the children’s hospital informed law enforcement officers that the minor had been administered benzodiazepine and fentanyl during treatment, but that cocaine had not been administered. A doctor at the children’s hospital also informed law enforcement officers that the minor’s symptoms, including seizure, cardiac arrest, and cardiac arrythmia, were all symptoms of a cocaine overdose.
On June 24, 2024, law enforcement officers executed a search warrant at Garcia’s residence and found cash, drug packaging paraphernalia and an envelope containing both 9mm and .357 magnum ammunition. On June 25, 2024, a search of a vehicle that Garcia had been seen operating revealed a laundry bag that contained $150,000 cash, 329.1 grams of methamphetamine, 767 grams of cocaine, 41 amphetamine tablets, 102 alprazolam tablets, 272 oxycodone tablets, 2.6 grams of MDMA powder, 1,341 grams of marijuana, 9.9 grams of psilocin and psilocybin mushrooms, 192 grams of crystalline cutting agents commonly used for illegal drug preparation, three digital scales, drug packaging material, two 9mm handguns and a .357 magnum revolver. The three firearms were loaded. Law enforcement officers also reviewed surveillance video from the apartment complex that showed Garcia returning to the apartment after leaving the hospital and placing the laundry bag inside the trunk of the vehicle.
The charge of possession with intent to distribute over 50g of methamphetamine carries a minimum statutory term of 10 years, a maximum statutory term of life, and a maximum fine of $10 million. The charge of being a felon in possession of firearms carries a maximum statutory term of 15 years and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation. U.S. Attorney Sellinger also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw, and the Maple Shade Police Department, under the direction of Chief Christopher Fletcher.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
garcia.complaint.pdfBulgarian National Admits Assaulting ICE Deportation OfficerRead the Press Release
CAMDEN, N.J. – A Bulgarian national today admitted assaulting a U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) deportation officer, U.S. Attorney Philip R. Sellinger announced.
Vasil Petrov, 40, of Bulgaria, pleaded guilty before U.S. District Judge Karen Williams in Camden federal court to an information charging him with one count of assaulting a federal officer and inflicting bodily injury.
According to documents filed in this case and statements made in court:
On Dec. 27, 2023, Petrov was in the lawful custody of ICE at an ICE facility in Elizabeth, New Jersey, pending removal from the United States. While being processed for removal, Petrov struck the deportation officer in the chin with a closed fist. As a result of Petrov’s assault, the deportation officer sustained bodily injury, including a laceration on his chin that required liquid stitches.
The charge to which Petrov pleaded guilty carries a maximum penalty of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Jan. 27, 2025.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation.
The government is represented by Assistant U.S. Attorney Chana Y. Zuckier of the OCDETF Unit in Newark.
petrov.information.pdfBox Elder man admits assaulting woman with knife on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man on Monday admitted to assaulting a woman by cutting her face with a knife during an argument on the Rocky Boy’s Indian Reservation, U.S. Attorney Jesse Laslovich said today.
The defendant, Colten Tyrone Small, also known as Colton Swan, 24, pleaded guilty to assault with a dangerous weapon and assault resulting in serious bodily injury. Small faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on each charge.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Jan. 29, 2025. Small was detained pending further proceedings.
In court documents, the government alleged that in the early morning hours of May 3, 2023, Small punched the victim, identified as Jane Doe, in the face while he held a butcher knife in a residence in Box Elder, on the Rocky Boy’s Reservation. A witness to the assault told law enforcement that Small sliced Doe’s face in the residence. Small and Doe argued, and the fight got more aggressive. After Small cut Doe’s face, the witness beat up Small. There was some fentanyl and alcohol use occurring at the time. Doe was treated for facial injuries from the knife at Northern Montana Hospital.
The U.S. Attorney’s Office is prosecuting the case. The FBI and Rocky Boy’s Law Enforcement investigated the case.
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Birmingham Man Sentenced to 5 ½ Years in Prison on Fentanyl ChargeRead the Press Release
ANNISTON, Ala. – A Birmingham man has been sentenced for a fentanyl-related drug crime, announced U.S. Attorney Prim F. Escalona and Drug Enforcement Administration Special Agent in Charge Steven L. Hofer.
U.S. District Court Judge Corey L. Maze sentenced Demarcus Hill, 42, to 66 months in prison. In April, Hill was convicted of conspiracy to possess with the intent to distribute fentanyl.
According to evidence presented at trial, Hill and his co-defendant, JT Toombs, drove from Birmingham to Atlanta, Georgia, where they picked up over 2000 fentanyl pills to bring back to Birmingham. During the return trip, an Oxford Police Department officer conducted a traffic stop on the vehicle on Interstate 20. His canine detected the odor of narcotics, and the officer discovered the fentanyl pills during a search of the vehicle.
The DEA investigated the case along with the Oxford Police Department. Assistant U.S. Attorney Brittany Byrd prosecuted the case.
Billings man admits arranging for commercial sex with minor girl in undercover investigationRead the Press Release
BILLINGS — A Billings man accused of texting with undercover law enforcement to arrange for sex with a minor girl and showing up at an agreed-upon location admitted to a racketeering crime today, U.S. Attorney Jesse Laslovich said.
The defendant, Christopher Lynn Cliburn, 60, pleaded guilty to use of facility in interstate commerce in aid of racketeering as charged in a superseding information. Cliburn faces a maximum of five years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Cliburn was detained pending further proceedings.
In court documents, the government alleged that on Nov. 16, 2023, law enforcement placed an ad on a website depicting a fictious 14-year-old girl. The ad suggested that the “girl” was willing to engage in sexual conduct for money. On Nov. 19, 2023, a phone number, later connected to Cliburn, responded to the ad. Cliburn and an undercover officer then engaged in a series of text communications in which the parties discussed meeting for commercial sex, potential sexual acts that the “girl” would perform and how much money Cliburn had. On Nov. 20, 2023, Cliburn indicated he was at the agreed-upon location in Billings and confirmed his presence by sending law enforcement a photograph.
The U.S. Attorney’s Office is prosecuting the case. The FBI conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
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Belleville Woman Facing PPP Loan Fraud ChargesRead the Press Release
EAST ST. LOUIS, Ill. – A Belleville woman is accused of falsely applying for, accepting and spending more than $20,000 in PPP funds for personal expenses.
A federal grand jury charged Felicia D. Harris, 44, with four counts of interstate transportation of a security obtained by fraud. She is employed at the U.S. National Geospatial Agency in St. Louis.
In response to financial hardships created by the COVID-19 pandemic, the U.S. Small Business Administration utilized the Paycheck Protection Program to offer relief and forgivable loans to struggling businesses. Under PPP, business owners could apply for loans to offset operational costs for payroll, employee benefits, facility expenses and other bills.
“Individuals who are employed by the federal government yet seek to steal from federally funded programs by using false pretenses and enrich themselves with PPP loan funds will be held accountable,” said U.S. Attorney Rachelle Aud Crowe.
According to court documents, Harris is accused of receiving $20,614 in PPP funds she was not entitled to in February through May 2021. She then used misinformation to apply for loan forgiveness and was approved.
“This outcome demonstrates the DoD Office of Inspector General's Defense Criminal Investigative Service (DCIS), the National Geospatial-Intelligence Agency Office of Inspector General, and our investigative partners' steadfast commitment to ensuring DoD employees abide by the law," said Acting Special Agent in Charge Ryan Settle, DCIS Southwest Field Office. "Accountability and integrity are expected of individuals employed by the U.S. Government."
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Convictions of interstate transportation of a security obtained by fraud are punishable by up to 10 years’ imprisonment and fines up to $250,000.
This case represents a crackdown on southern Illinois residents who defrauded the PPP loan program. Last month, three federal employees of the Department of Veterans Affairs were indicted in the Southern District of Illinois on PPP loan fraud charges.
Defense Criminal Investigative Service agents are leading the investigation, and Assistant U.S. Attorney Scott Verseman is prosecuting the case.
Attorney pleads guilty in drug-trafficking conspiracyRead the Press Release
NORFOLK, Va. – Matthew Taylor Morris, 38, a local attorney and resident of Virginia Beach, pled guilty to his role in a conspiracy to distribute large amounts of marijuana.
According to court documents, beginning in at least January 2021, Donald Thomas Rogers, 35, of Portsmouth, the owner of a Federal Firearm Licensee (FFL), allegedly became involved in the interstate trafficking of bulk quantities of marijuana. Working with Nicholas Cameron Capehart, 30, of Norfolk, and Jeffrey Donald Sines, 39, of Portsmouth, the Rogers Drug Trafficking Organization (DTO) stored approximately 1,000 pounds of marijuana and cash proceeds at Morris’s Top Tier Law firm located on South Independence Boulevard in Virginia Beach. At the time, the street value of the Tetrahydrocannabinol (THC) products stored at Morris’s law office ranged in value between $800,000 and $1.6 million.
Rogers was the owner of VA Premier Pawn, an FFL authorized to sell firearms. Rogers allegedly purchased wholesale quantities of THC products, including marijuana, THC vape pens, THC wax, and THC edible products, from sources outside Virginia. Rogers allegedly transferred the products in smaller quantities to his co-conspirators, including Capehart, Sines, and Morris, for retail sale.
Morris introduced Capehart to Rogers, initially believing that Capehart could supply Rogers with THC products. Rogers allegedly bought and sold marijuana products in larger quantities than Capehart, so Rogers began to supply Capehart, as well as others, including Morris, with THC products. After Morris first met Rogers in 2021, Morris referred customers, including his legal clients, to Rogers for the illegal purchase of THC products. Eventually, Morris offered Rogers the use of a room in his law office to store Rogers’ THC products.
In exchange for his use of the law office, Rogers allegedly paid the law office’s monthly rent for several months, and Morris gave Rogers a key to the law office to facilitate access. Additionally, Rogers allegedly agreed to supply Morris with 15 pounds of THC products per month for a total of approximately 70 pounds so that he could sell marijuana to his own retail customers. Morris also allegedly received a 9mm handgun from Rogers, despite Morris being an unlawful user of Adderall, cocaine, opiates, and THC.
On April 20, 2021, Capehart, who was vacationing in Las Vegas, allegedly sought advice from Morris on sending marijuana products back to the Tidewater region because Capehart knew that Morris was an attorney. In text messages, Morris told Capehart to commingle the marijuana products among “some type of souvenirs and buy some Saran Wrap and wrap whatever you put it in well.” Morris also advised Capehart to address the package to Morris’ law firm and to “[w]rite legal mail on there somewhere too,” reasoning that this would “make it privileged and the cops would have a hell of a time getting a warrant to get around that privilege.”
On Oct. 17, 2022, law enforcement allegedly observed Capehart in the parking lot of the FFL retrieve a large black bag from the back seat of Rogers’ car, place it in the back seat of Capehart’s truck, and leave. Capehart allegedly drove to his residence and brought the bag inside the residence. Law enforcement identified vehicles belonging to Sines and Capehart at a storage unit in Suffolk. On Oct. 27, 2022, law enforcement legally observed several duffel bags in the storage unit consistent with the type that Rogers and Capehart allegedly possessed on Oct. 17, 2022, each of which contained between seven and 18 pounds of marijuana. They also found boxes containing marijuana, THC vape pens, THC wax, THC edible products, and marijuana seeds. In all, the storage unit contained 193 pounds of marijuana, 1,410 THC vape pens, 136 jars of THC wax, 228 bottles of THC syrup, and 514 THC edible products.
On Nov. 3, 2022, Rogers and another individual allegedly entered the storage unit with Sines, and Sines exited with a duffel bag and the other individual allegedly carried a cardboard box. Sines transported the duffel bag to his residence, which was next to Rogers’ residence.
On Nov. 9, 2022, law enforcement executed a search warrant on the storage unit and recovered a total of 141 pounds of marijuana, 400 THC Vape cartridges, 196 containers of “Hi-Cubes” THC edibles, 82 containers of “Dangerously Delicious Nerds” THC edibles, 116 containers of “Dangerously Delicious Gummy Worms” THC edibles, 16,684 grams of THC Wax, and 196 bottles THC Cough Syrup. On Nov. 10, 2022, agents executed ten additional search warrants on the suspected locations, vehicles, and members of the Rogers DTO.
At Rogers’ residence agents recovered four firearms, one silencer, $23,980, 1,899 grams of marijuana products, and three cellphones. At the FFL, agents recovered 145 firearms, $181,000, and $80,879 in gold and silver.
At Sines’ residence, agents recovered 10 firearms, 36,676 grams of marijuana, 529 grams of mushrooms, thousands of rounds of ammunition, and $7,686.
At Capehart’s residence, agents recovered 13,042 grams of marijuana, $14,036, 16 firearms, and three black bags consistent with the bags in the storage unit.
Morris and Sines pled guilty today to conspiracy to possess with intent to distribute marijuana and possession with intent to distribute marijuana. Morris is scheduled to be sentenced on Jan. 22, 2025, and faces up to ten years in prison. Sines is scheduled to be sentenced on Feb. 7, 2025, and faces up to 20 years in prison for each count. Rogers is scheduled to plead guilty on Sept. 30 and Capehart is scheduled to plead guilty on Oct. 3. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; James VanVliet, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Ramin Fatehi, Norfolk Commonwealth’s Attorney, made the announcement after U.S. District Judge Jamar K. Walker accepted the plea.
Assistant U.S. Attorneys John F. Butler and Anthony C. Marek and Special Assistant U.S. Attorney Graham M. Stolle, an Assistant Commonwealth’s Attorney with the Norfolk Commonwealth’s Attorney Office, are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 2:24-cr-94 (Rogers), 2:24-cr-95 (Capehart), 2:24-cr-96 (Sines) and 2:24-cr-97 (Morris).
Aryan Brotherhood Prison Gang Member Sentenced to Life in Prison for Murder in Aid of RacketeeringRead the Press Release
SACRAMENTO, Calif. — Jason Corbett, 52, of Paradise, was sentenced today by U.S. District Judge Kimberly J. Mueller to life in prison for murder in aid of racketeering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. AB members oversaw a significant heroin and methamphetamine trafficking operation from their California prison cells using smuggled cellphones to direct drug trafficking activities, order murders, and oversee other criminal activities inside and outside of the prisons.
According to Corbett’s plea agreement, on July 28, 2018, Corbett murdered an inmate at High Desert Prison as part of an AB-related killing. Corbett admitted that he committed the murder because the victim falsely claimed to be an AB member and had run up a significant drug debt at his previous prison — both violations of the AB’s expected codes of conduct. Corbett willfully, deliberately, and with premeditation, murdered the victim in order to maintain his status within the gang.
On Jan. 3, 2024, Corbett’s co-defendant in the murder, Pat Brady, 54, pleaded guilty to the same murder in aid of racketeering. He was sentenced to life in prison on Aug. 5, 2024.
In April 2024, following a nine-week trial, a federal jury found three of Corbett’s co-defendants guilty of RICO conspiracy, conspiracy to murder, murder in aid of racketeering, and multiple counts of drug trafficking. Ronald Yandell, 62, and Billy Sylvester, 56, are scheduled to be sentenced by Judge Mueller on Nov. 19, 2024. Danny Troxell, 71, will be sentenced at a date to be set by the Court.
During a status conference today, Kathleen Nolan, 70, of Calimesa, entered a guilty plea for her part in the drug trafficking conspiracy with AB members and associates. She is scheduled to be sentenced on Dec. 17, 2024. Charges are pending against Kevin MacNamara, 44, of La Palma. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office. Assistant U.S. Attorneys Jason Hitt, Ross Pearson, and David Spencer are prosecuting the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF) program. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Armed Felon Sentenced to Eight Years in Prison Following Struggle with DeputyRead the Press Release
Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Richard Salino Garcia (40, Pasco County) to 8 years in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Garcia to forfeit a Taurus 66, .357 caliber revolver, and assorted ammunition which were used in the offense. Garcia was found guilty following a bench trial on April 29, 2024.
According to court documents, on December 2, 2022, a deputy from the Pasco Sheriff’s Office encountered Garcia during a loitering and prowling investigation behind a closed business. The deputy attempted to conduct a pat down for weapons after Garcia made motions towards his waistband, but Garcia fled on foot. The deputy tackled Garcia to the ground where the two began struggling as Garcia made attempts to reach into his waistband. Citizens assisted the deputy until backup deputies arrived. Once Garcia was handcuffed, deputies removed the loaded .357 Taurus revolver from a holster on Garcia’s waist. At the time, Garcia had numerous convictions for felony offenses including fleeing to elude and felony battery. As a convicted felon he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Samantha E. Beckman.
This case is part of the Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Adam G. Brief Appointed as Acting U.S. Trustee for Northern Illinois and WisconsinRead the Press Release
Adam G. Brief has been appointed by Attorney General Merrick B. Garland as the Acting U.S. Trustee for Northern Illinois and Wisconsin (Region 11) effective Sept. 28, the Executive Office for U.S. Trustees announced today. Brief replaces Patrick S. Layng, who is retiring after 36 years of dedicated service to the Justice Department, including the last 14 years as the U.S. Trustee in Region 11. Under 28 U.S.C. § 585(a), the Attorney General may fill U.S. Trustee vacancies by appointing an Acting U.S. Trustee.
Brief has served as the Assistant U.S. Trustee in charge of the Chicago field office since joining the U.S. Trustee Program in 2015 after 14 years in private practice. Brief’s effective coordination with the U.S. Attorney’s Office for the Northern District of Illinois has contributed to several successful high-profile criminal prosecutions. In addition to being a frequent speaker at legal seminars and conferences, Brief teaches a lawyering skills course at the University of Illinois Chicago Law School. He received his bachelor’s degree in history and political science from Rutgers University Livingston College and his law degree from Seton Hall University. After law school, Brief was a term law clerk for Judge Stephen Stripp of the U.S. Bankruptcy Court for the District of New Jersey. For six years before joining the USTP, while still in private practice, he served as an investigator appointed by the Supreme Court of New Jersey to a district ethics committee.
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
200s Gang Member Charged with 2019 Murder of Innocent BystanderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging LUIS FILPO with racketeering conspiracy, murder in aid of racketeering, and murder through the use of a firearm. These charges relate to FILPO’s alleged membership in a street gang known as “the 200s,” operating in and around upper Manhattan. As alleged, on January 31, 2019, FILPO and other 200s members shot and killed Roberto Vasquez, an innocent bystander who was mistaken for a gang rival. FILPO, who was in New York State custody, was transferred to federal custody yesterday and made his initial appearance in federal court in Manhattan. The case has been assigned to U.S. District Judge Paul A. Engelmayer.
U.S. Attorney Damian Williams said: “As alleged, Luis Filpo murdered Roberto Vasquez after mistaking him for a gang rival. Thanks to the hard work of the prosecutors in this Office and our law enforcement partners, Filpo will finally be held to account for this heinous crime. We hope that these charges bring some measure of comfort to Mr. Vasquez’s family and make clear that this Office and our law enforcement partners will never stop investigating those who commit violence on our streets.”
According to the allegations in the Indictment unsealed yesterday in Manhattan federal court[1] and other court documents:
From at least in or about 2016 up to and including March 2022, in the Southern District of New York and elsewhere, FILPO was a member of the 200s street gang. In order to fund the gang, protect its territory, and promote its standing, members of the 200s engaged in, among other things, narcotics trafficking and other acts of violence, including murder. Members of the 200s sold narcotics in the gang’s territory and engaged in shootings as part of their gang membership. In particular, on January 31, 2019, FILPO shot and killed Roberto Vasquez, an innocent bystander mistaken for a rival gang member, in the vicinity of 158th Street and Broadway Avenue, in Manhattan, New York.
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FILPO, 25, of New York, New York, is charged with one count of racketeering conspiracy, which carries a maximum term of life in prison; one count of murder in aid of racketeering, which carries a mandatory minimum term of life in prison or death; and one count of causing death through use of a firearm, which carries a maximum term of life in prison or death.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Mathew Andrews and Patrick Moroney are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
23 September 2024
Valley National Bank Resolves Civil Liability Relating to Self-Disclosure of Its Role in the Impermissible Use of PPP Loan Proceeds by Bank CustomerRead the Press Release
Tampa, FL – Valley National Bank (VNB), a national bank and member of the Federal Reserve System, has agreed to pay $216,784.50 to resolve its civil liability under the False Claims Act for its self-disclosed role in the administration of two loans to a bank customer made under the Coronavirus Aid, Relief and Economic Security Act (CARES), the Payroll Protection Program (PPP) and Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act).
Congress created the PPP in March 2020 as part of the CARES Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. The PPP was administered by the U.S. Small Business Administration (SBA).
This settlement resolves VNB’s civil liability related to a bank customer who had applied for two PPP loans with VNB. VNB, through a bank relationship manager, assisted the customer in the impermissible use of a portion of the PPP loan proceeds from its first PPP loan to repay an outstanding loan to a third party. After learning of this conduct, VNB conducted an independent investigation and review of those issues and provided the United States with a detailed and thorough written self-disclosure. VNB cooperated fully with the government’s investigation of the conduct, disclosing relevant documents, facts, and information gathered during its investigation. Although PPP lending has ended, VNB took steps to remediate and improve the issues with its PPP lending policies and practices, including requiring PPP borrowers to open a deposit account to undergo depositor screening, retaining an accounting firm to serve as a PPP loan help desk, and utilizing a company to interface with the SBA E-Tran platform.
“The United States Attorney’s Office is committed to investigating and holding responsible those who failed to follow the rules of the PPP program,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to seek civil redress and, where appropriate, federally prosecute those individuals and entities that engage in improper uses of PPP loan proceeds.”
SBA’s General Counsel Therese Meers stated, “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office, other federal law enforcement agencies, as well as financial institutions or private individuals who uncover borrower misconduct to recover the lending program’s damages.”
The resolution obtained in this case was the result of a coordinated effort by the United States Attorney’s Office for the Middle District of Florida and the Small Business Administration. The matter was handled by Assistant U.S. Attorney Kelley Howard-Allen, with assistance from the Small Business Administration - Office of General Counsel.
The claims resolved by the settlement are allegations only and there has been no determination or admission of liability by VNB.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.