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Wednesday 24 July 2024
Bayard Man Sentenced for Falsification of Union Financial ReportsRead the Press Release
United States Attorney Susan Lehr announced that Donald Fox, 55, of Bayard, Nebraska, was sentenced on July 24, 2024 in federal court in Lincoln, Nebraska for four counts of falsification of annual financial reports filed by a labor union. Senior United States District Judge John M. Gerrard sentenced Fox to four years of probation. Fox will also have to serve five weekends in jail. Fox has also been ordered to pay $14,874.05 in restitution to the National Association of Letter Carriers Branch 1836. Prior to sentencing, Fox paid $9,746.07 in restitution back to the union.
Fox served as the secretary and treasurer for the National Association of Letter Carriers Branch 1836 union out of Scottsbluff, Nebraska, from 2001 until he resigned in June 2021. Federal law requires that a labor union secretary annually file an accounting statement with the Department of Labor documenting annual losses, assets, liabilities, receipts, and disbursements. Between 2016 and 2020, Fox used union funds for personal expenses totaling $24,620.12. The embezzlement came to light in 2021 when other union members noticed union funds being used for expenses that were not approved by the union, and that were not union-related purchases. Fox admitted that he used union funds for personal expenses, and admitted that he hid his embezzlement in part by filing false annual accounting statements that did not account for his unauthorized use of union funds. He admitted to not filing the annual accounting statement in 2020 to continue concealing his misappropriation of union funds.
“There are consequences for individuals who breach the trust placed in them to be good stewards of union funds. Don Fox embezzled $24,620 from National Association of Letter Carriers Branch 1836 that should have been used for its members’ benefit,” said Christiane Abendroth, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “OLMS is committed to hold accountable anyone who unlawfully exploits their position for financial gain at the expense of their fellow union members.”
This case was investigated by U.S. Department of Labor, Office of Labor-Management Standards.
Atlanta Woman and Madison Man Sentenced for Fentanyl TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that an Atlanta woman and Madison man have been sentenced to federal prison in connection with fentanyl trafficking.
Keyshawna D. Draper, 30, Atlanta, Georgia, was sentenced yesterday by Chief U.S. District Judge James D. Peterson to two and a half years in federal prison for attempting to distribute fentanyl. The prison term will be followed by four years of supervised release. Draper pled guilty to this charge on April 19, 2024.
Jontell C. Shepherd, 28, Madison, Wisconsin, was also sentenced yesterday by Judge . Peterson to just over three and a half years in federal prison for attempting to possess fentanyl intended for distribution. The prison term will be followed by three years of supervised release. Shepherd pled guilty to this charge on January 31, 2024.
On January 26, 2023, law enforcement intercepted two suspicious packages being shipped to the Madison area from Arizona. After obtaining a search warrant, officers opened the packages and inside each, found a stuffed animal containing approximately 2.2 kilograms of counterfeit prescription pills. In total, more than 40,000 pills were seized. Testing found that the pills contained fentanyl. Officers arranged for a controlled delivery of one package and Shepherd and co-defendant Alexis K. Davis were arrested after arriving at the delivery location to pick up the package.
The government’s investigation revealed that co-defendant Brianna M. Reno arranged for Draper to ship the fentanyl pills to Madison from Arizona. On January 25, 2023, Draper travelled from Atlanta to Phoenix where she packaged the pills and mailed them to Reno and Davis in Madison.
At both sentencings, Judge Peterson reflected on the serious harm that fentanyl causes to the community. He noted that the large amount of fentanyl involved in this case was especially concerning.
All four defendants who were charged in this trafficking scheme have pled guilty. On July 10, 2024, Reno was sentenced to seven years in federal prison. Davis will be sentenced on July 25.
The charges against Reno, Shepherd, Davis, and Draper were the result of an investigation conducted by the Drug Enforcement Administration, United States Postal Inspection Service, and the Wisconsin Department of Justice Division of Criminal Investigation. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney William M. Levins prosecuted this case.
Army Officer Sentenced for Theft of Government Property and Ordered to Pay Half a Million DollarsRead the Press Release
RALEIGH, N.C. – Chief Warrant Officer Three (CW3) Christopher Hammond, 38, was sentenced to 36 months for his role in a scheme that resulted in the theft of government property netted him at least $2 million in proceeds. Hammond was also ordered to pay restitution in the amount of $250,000 and forfeit $250,000. Hammond pled guilty to six charges, including theft of government property, wire fraud, money laundering, mail fraud and transportation of stolen goods. He was convicted by a jury on an additional count of money laundering and aiding and abetting.
“We will not tolerate military members stealing from our armed services to line their own pockets,” said U.S. Attorney Michael Easley. “Hammond stole and then sold military scopes, weapons parts, tools, night vision goggles and ATVs meant to support our troops in the fight for freedom. Through his scheme, he had hoped to retire in style. Instead, he will be spending the next three years in prison.”
According to court documents and other information presented in court, CW3 Hammond used his position to requisition government property intended for his unit at then Ft. Bragg, now called Ft. Liberty. The property was never logged into inventory at the base but was instead sold by Hammond to various individuals. In a two-year period, CW3 Hammond received at least $1.8 million in wire transfers and other payments related to the sales, which he deposited into bank accounts controlled by him and his wife. A search warrant executed at Hammond’s home resulted in the seizure of at least 98 firearms, at least 90 military-issued spotting scopes, hundreds of other military-issued firearm accessories and items including night vision goggles and electronic equipment, and more than $100,000 in cash.
The investigation traced about 200 items sold by CW3 Hammond or held in his home as having been issued to Hammond’s military unit. The fraud was uncovered when a supplier noticed that items procured under a government contract were being sent in for warranty repairs by a private individual. Hammond’s wife, Major Heather Hammond, was also charged by the government, but was ultimately acquitted by a jury.
“This sentencing is a result of a joint investigation and Army CID’s commitment to protect the government, the Army, and most importantly, the taxpayer, from those whose actions can erode the trust and confidence in our military and warfighting capability," said Keith K. Kelly, Special Agent-in-Charge, Army Criminal Investigation Division, Fraud Field Office. “Army CID and our law enforcement partners remain committed to hold accountable those who attempt to defraud the government."
“This sentencing sends a stark warning to those who put greed above their sworn duty," stated Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. "DCIS and its investigative partners will continue to hold those accountable who abuse their official positions for personal gain and compromise the military's integrity."
"Everyday service men and women make sacrifices for our country. It is appalling Christopher Hammond stole property his fellow soldiers needed to stay safe to line his own pockets. The FBI is thankful his criminal abuse of power and betrayal didn't go unpunished," said Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. Defense Criminal Investigative Services (DCIS), Department of Army Criminal Investigation Division (CID), and the Federal Bureau of Investigation (FBI) investigated the case and Assistant U.S. Attorney Barbara Kocher and Logan Liles prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00106-BO.
Armed Felon who Fled Police Sentenced to 10 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a felon who fled from police while armed to 10 years in prison.
Antonio Lenarr Williams, 33, of Ferguson, Missouri, pleaded guilty in April to two felony counts of conspiring to possess a weapon by a felon.
He admitted that on May 5, 2021, St. Louis Metropolitan Police Department officers spotted a vehicle in which Williams was driving heading south on Kingshighway Boulevard. Williams was being sought by police in connection with an investigation. After police deployed spike strips, Williams continued driving on deflated tires in midday traffic. He drove erratically, crossing into oncoming traffic and through red lights while trying to escape from officers. After going through the intersection of Kingshighway and Lindell boulevards, Williams jumped out of the vehicle and ran with a loaded semi-automatic pistol in his hand. He threw the gun in a dumpster shortly before his arrest by police, his plea agreement says.
The St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney Michael Hayes prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Alleged Car Thief Indicted on Federal Charges Appears in CourtRead the Press Release
CHARLOTTE, N.C. – An alleged car thief facing federal charges appeared before U.S. Magistrate Judge David C. Keesler today for his initial court appearance, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
A criminal indictment charges Terrick D. Lumpkin, 38, of Charlotte, with one count of conspiracy to transport, possess, and sell a stolen vehicle and to remove, obliterate, tamper with, and alter a Vehicle Identification Number (VIN); two counts of possession of a stolen vehicle; and two counts of altering or removing a VIN. The indictment was filed on July 16, 2024, and was unsealed today following Lumpkin’s arrest and court appearance.
The indictment alleges that, between November 2023 and January 2024, Lumpkin engaged in a conspiracy to steal and possess high-end motor vehicles worth more than one million dollars. As alleged in the indictment, Lumpkin and his co-conspirators obtained stolen vehicles from various locations throughout United States, including in Charlotte, North Carolina, Illinois, and New York. It is further alleged that several of the vehicles possessed by Lumpkin were stolen from the Charlotte Douglas International Airport. Lumpkin and others sought to obtain high-end vehicles made by Audi, BMW, Cadillac, Lamborghini and Mercedes, as well as sports utility vehicles, and other expensive models from Chevrolet, Dodge, Ford, GMC, and Jeep.
According to allegations in the indictment, once in possession of the stolen vehicles, Lumpkin and his co-conspirators regularly altered or tampered with the stolen vehicles’ original VINs to avoid detection by law enforcement.
Lumpkin was released on bond following today’s court hearing. The conspiracy charge carries a maximum penalty of five years. Each charge of possession of a stolen vehicle carries a statutory maximum penalty of 10 years in prison. The charge of altering or removing a VIN carries a maximum penalty of five years in prison.
This is the fourth indictment filed in the U.S. District Court in Charlotte related to trafficking in stolen vehicles. In March 2023, two individuals were charged for a scheme that involved buying and selling stolen vehicles. In August 2023, five individuals were indicted for stealing luxury vehicles from dealerships throughout the United States, and two additional individuals were indicted in November 2023, for orchestrating high-end auto thefts from businesses in South Carolina.
U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorneys William Bozin and Daniel Ryan of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Albany Man Pleads Guilty to Drug Trafficking Conspiracy Involving 7 Kilograms of CocaineRead the Press Release
ALBANY, NEW YORK – Brian Scott, age 44, of Albany, pled guilty today to conspiring to distribute and possess with intent to distribute cocaine and marijuana, and to distributing cocaine.
United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
Scott admitted that between June 2020 and October 2023, he was involved in a drug trafficking organization that trafficked cocaine and marijuana in the Capital Region and the North Country. Scott admitted that he and a co-conspirator routinely sent drug couriers, whom they referred to as “horses,” between the Capital Region and the North Country to transport cocaine to the North Country and marijuana to the Capital Region. Scott also admitted that he had obtained at least seven kilograms of cocaine from another co-conspirator and sold over 400 grams of cocaine to another person between May and September 2023.
At sentencing on November 26, 2024, Scott faces at least 10 years and up to life in prison. The judge will also be required to impose a term of post-release supervision of at least 5 years and up to life. Scott has also agreed to forfeit $4,865 in seized drug money and to the entry of a forfeiture money judgment in the amount of $17,180. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
FBI, HSI, and the New York State Police investigated the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Joseph Hartunian are prosecuting the case.
Alabama Woman Sentenced to 18 Months’ Imprisonment for COVID-19 Unemployment Insurance Fraud SchemeRead the Press Release
CHATTANOOGA, Tenn. - On July 24, 2024, Meghan Pittman, 29, of Stevenson, Alabama, was sentenced to 18 months’ imprisonment by the Honorable Curtis L. Collier, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Chattanooga. Following her imprisonment, she will be on supervised release for five years.
As part of the plea agreement filed with the court, Pittman pled guilty to wire fraud, in violation of 18 U.S.C. § 1343 for her involvement in a scheme to defraud COVID-19 unemployment programs in several states. In addition, Pittman was ordered to pay $85,011 in restitution to the Pennsylvania and California Departments of Labor, and to forfeit to the United States $85,011 as part of a money judgment.
According to court documents, from June 2020 through June 2021, Pittman conspired with others to devise a scheme in which she defrauded the United States government and the governments of Tennessee, Alabama, Pennsylvania, and California to obtain money from the states’ COVID relief programs in the form of unemployment insurance proceeds funded by the United States government. Specifically, Pittman acquired personal information from others and used it to fraudulently make mass online applications for money earmarked by the states to provide unemployment insurance relief for those affected by the national pandemic. She falsely claimed in the applications that the individuals whose personal information was reflected on the applications worked in those states. The states then mailed debit cards to addresses in the Eastern District of Tennessee, and Pittman would receive a percentage of the payout of the fraudulent claim. The defendant was personally responsible for the fraudulent distribution of over $85,000 of unemployment protection insurance funds. The scheme itself involved the fraudulent distribution of over $550,000 in unemployment protection insurance funds.
United States Attorney Francis M. Hamilton III, of the Eastern District of Tennessee, Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General, and Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation made the announcement.
Assistant United States Attorney Steven Neff represented the United States.
The conviction was the result of an investigation conducted by the Department of Labor Office of Inspector General and the FBI as part of the Smoky Mountains Financial Crimes Task Force.
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 the government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Admera Health Agrees to Pay over $5 Million to Settle False Claims Act Allegations of Kickbacks to Third Party MarketersRead the Press Release
SACRAMENTO, Calif. – Admera Health LLC has agreed to pay the United States $5,389,648 to resolve allegations that it violated the False Claims Act by paying commissions to third party independent contractor marketers in violation of the Anti-Kickback Statute (AKS). Admera will pay an additional $147,851 to individual states for claims paid to Admera by state Medicaid programs.
Admera is a New Jersey-based company that provides biopharmaceutical research services for health care institutions and provided clinical laboratory testing services to health care providers relating to pharmacogenetics until 2021. Pharmacogenetics analyzes how a patient’s genetic attributes affect their response to therapeutic drugs. The settlement announced today resolves allegations that, from Sept. 1, 2014, through May 21, 2021, Admera made commission-based payments to independent contractor marketers in return for recommending or arranging for the ordering of genetic testing services in violation of the AKS. The AKS prohibits offering or paying remuneration in return for arranging or recommending items or services covered by Medicare and other federally funded programs.
“By entering into kickback arrangements, health care companies can cause providers to make medical decisions that are motivated by financial gain rather than the patient’s best interest,” said U.S. Attorney Phillip A. Talbert. “Our office is committed to ensuring the accountability of participants in the health care system who put their own financial needs ahead of patient welfare.”
“The law prohibits health care providers, including those that provide laboratory services, from paying kickbacks in the form of commissions to third parties as an inducement to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department is committed to holding accountable those who engage in kickback arrangements that undermine the integrity of federal healthcare programs.”
“Kickbacks can negatively influence medical decision making and corrupt the legitimate doctor-patient relationship,” said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement demonstrates HHS-OIG’s commitment to identifying and holding accountable those who allegedly engage in unlawful financial relationships at the expense of Medicare patients and the taxpayer.”
As part of the settlement, Admera has admitted that it made millions of dollars of commission payments to independent-contractor marketers to induce them to arrange for or recommend that health care providers order and refer clinical laboratory services to Admera, including genetic tests, that were reimbursable by Medicare and/or Medicaid, that it paid marketers through arrangements that took into account the volume and value of genetic testing referrals, and that Admera was informed that the payment of commissions to independent contractors did not comply with the AKS but continued to enter into such contracts.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relators, Sunil Wadhwa and Ken Newton, co-founders of Financial Halo LLC/MedXPrime, a former third-party marketer for Admera. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Wadhwa and Newton v. Admera Health, LLC et al (E.D. Cal.). Relators will receive $862,343 of the proceeds from the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Eastern District of California, with substantial investigative assistance from HHS-OIG, the Federal Bureau of Investigation, and the Department of Veterans Affairs, Office of Inspector General. The matter was handled by Assistant U.S. Attorney Colleen Kennedy for the Eastern District of California and Civil Division Fraud Section Trial Attorney Elizabeth J. Kappakas.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
admera_settlement_fully_executed_07.12.24.pdfAdmera Health Agrees to Pay over $5M to Settle False Claims Act Allegations of Kickbacks to Third Party MarketersRead the Press Release
Admera Health LLC (Admera) has agreed to pay the United States $5,389,648 to resolve allegations that it violated the False Claims Act by paying commissions to third party independent contractor marketers in violation of the Anti-Kickback Statute (AKS). Admera will pay an additional $147,851 to individual states for claims paid to Admera by state Medicaid programs.
Admera is a New Jersey-based company that provides biopharmaceutical research services for healthcare institutions and provided clinical laboratory testing services to healthcare providers relating to pharmacogenetics until 2021. Pharmacogenetics analyzes how a patient’s genetic attributes affect their response to therapeutic drugs. The settlement announced today resolves allegations that, from Sept. 1, 2014, through May 21, 2021, Admera made commission-based payments to independent contractor marketers in return for recommending or arranging for the ordering of genetic testing services in violation of the AKS. The AKS prohibits offering or paying remuneration in return for arranging for or recommending items or services covered by Medicare and other federally funded programs.
“The law prohibits health care providers, including those that provide laboratory services, from paying kickbacks in the form of commissions to third parties as an inducement to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who engage in kickback arrangements that undermine the integrity of federal healthcare programs.”
“By entering into kickback arrangements, health care companies can cause providers to make medical decisions that are motivated by financial gain rather than the patient’s best interest,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Our office is committed to ensuring the accountability of participants in the health care system who put their own financial needs ahead of patient welfare.”
“Kickbacks can negatively influence medical decision making and corrupt the legitimate doctor-patient relationship,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement demonstrates HHS-OIG’s commitment to identifying and holding accountable those who allegedly engage in unlawful financial relationships at the expense of Medicare patients and the taxpayer.”
As part of the settlement, Admera has admitted that it made millions of dollars of commission payments to independent-contractor marketers (the Marketers) to induce them to arrange for or recommend that healthcare providers order and refer clinical laboratory services to Admera, including genetic tests, that were reimbursable by Medicare and/or Medicaid, that it paid Marketers through arrangements that took into account the volume and value of genetic testing referrals, and that Admera was informed that the payment of commissions to independent contractors did not comply with the AKS but continued to enter into such contracts.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relators, Sunil Wadhwa and Ken Newton, co-founders of Financial Halo LLC/MedXPrime, a former third-party marketer for Admera. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Wadhwa and Newton v. Admera Health, LLC et al (E.D. Cal.). Relators will receive $862,343 of the proceeds from the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of California, with substantial assistance from HHS-OIG.
Trial Attorney Elizabeth J. Kappakas of the Civil Division’s Fraud Section and Assistant U.S. Attorney Colleen Kennedy for the Eastern District of California handled the matter.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementActivity in the U.S. Attorney's OfficeRead the Press Release
Public Land Offenses
Robert Sherman, 55, of Holladay, Utah, was sentenced on July 23, for two separate cases of disorderly conduct. In the first case he was sentenced to 14 days of incarceration, with credit for the 14 days already served for making threatening statements in the Roosevelt employee dining room inside Yellowstone National Park (YNP). According to court document, on July 5, Sherman was heard by multiple witnesses saying, “the next mass shooting will occur here.” Sherman made this statement just one day after gunman Samson Lucas Bariah Fussner was shot and killed by U.S. Park Rangers after he attempted to shoot at people inside the Canyon Lodge employee dining room.
In the second disorderly conduct charge, Sherman was sentenced to five years of unsupervised probation for making additional threatening statements. According to court documents, on July 7, witnesses said Sherman made several comments along the lines that he would be, “killing people around here.” As part of the terms of his probation, he will have to comply with all federal, state, and local laws; keep contact information current with the court; pay court costs as ordered by the court; and not be permitted to enter YNP during the probation term. U.S. Magistrate Judge Stephanie A. Hambrick imposed the sentence on July 23. This crime was investigated by the National Park Service and the case was prosecuted by Assistant U.S. Attorney Ariel Calmes.
Child Pornography
Alan Dean Houghton, 63, of Casper, Wyoming, was sentenced to 20 years in federal prison with 15 years of supervised release for possession of child pornography, subsequent offense. According to court documents, the Georgia Bureau of Investigation (GBI) initiated a sexual exploitation of children investigation in October 2022. Heather Clark and April Burns were subsequently arrested in May of 2023 for production of child pornography, amongst other charges. Forensic analysis of Clark’s phone revealed that she was selling child pornography to various men around the country. The defendant was identified as having paid Clark $4,700 in multiple payments, over months, for what is believed to be Child Sexual Abuse Material (CSAM) that Clark produced of her children. Houghton was indicted on March 13 and pleaded guilty on April 24. U.S. District Court Judge Alan B. Johnson imposed the sentence on July 22. This crime was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children team. Assistant U.S. Attorney Z. Seth Griswold prosecuted the case.
Sexual Abuse of a Minor
Brian Reyes Rhodes, Jr., 24, of Riverton, Wyoming, was sentenced to 120 months imprisonment with 15 years of supervised release for sexual abuse of a minor. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on July 22. According to court documents, between November 2018 and June 2022, the defendant sexually abused a minor multiple times at his grandfather’s residence. The minor victim eventually disclosed the abuse to a medical provider. Rhodes was indicted in November 2023 and pleaded guilty on April 17. This crime was investigated by the FBI, and the case was prosecuted by Assistant U.S. Attorney Cameron J. Cook.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
Tuesday 23 July 2024
Wright County, Iowa Man to Federal Prison for Illegal Possession of a FirearmRead the Press Release
Michael Dean Hanus, Jr., 45, from Clarion, Iowa, was sentenced on July 22, 2024, to over four years in federal prison. Hanus, Jr. pled guilty on March 11, 2024, to possessing a firearm by a prohibited person. Hanus, Jr. was previously convicted of Interference with Official Acts – Dangerous Weapon, which prohibits a person from possessing a firearm.
Evidence at the plea and sentencing hearings showed that in October 2023, law enforcement in Wright County, Iowa were investigating elder abuse. During the investigation, law enforcement received information that Hanus, Jr. possessed an AR-15 style rifle, at his father’s residence in Humboldt, Iowa, where Hanus, Jr. was living for some time. An agent seized an HDR-15 rifle from Hanus, Jr., and later determined the firearm was stolen. Hanus, Jr. admitted to possession of the firearm, including his knowledge of his previous felony conviction, which prohibited his possession of any firearm. Evidence also showed Hanus had ten previous convictions for assault-based conduct over past 20 years.
Sentencing was held before United States District Court Judge Leonard T. Strand. Hanus, Jr. was sentenced to 52 months’ imprisonment and must serve a three-year term of supervised release following the imprisonment. There is no parole in the federal system. Hanus, Jr. remains in custody of the United States Marshal until he can be transported to a federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Wright County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3043. Follow us on Twitter @USAO_NDIA.
Worcester Man Sentenced to over One Year in Prison for Unlawful Reentry and Passport FraudRead the Press Release
BOSTON - A Worcester man was sentenced on July 19, 2024 for using a stolen identity to apply for a United States passport after he unlawfully reentered the United States following deportation.
Rohan Andrew Brown, 56, was sentenced by U.S. District Court Judge Margaret R. Guzman to 13 months in prison to be followed by 36 months of supervised release. In April 2024, Brown pleaded guilty to one count of unlawful reentry of a deported alien and one count of passport fraud.
Brown, a native of Jamaica, was previously deported in August 2002 after a conviction in Connecticut for unlawful restraint in the first degree. Sometime after his removal, Brown unlawfully reentered the United States. In 2012, Brown unlawfully obtained a passport by using the identity of a United States Citizen. Over the following years, Brown continued to use that stolen identity to obtain drivers licenses in California and Ohio. In March 2022 and May 2023, Brown attempted to renew the passport using the same fraudulent identity.
Acting United States Attorney Joshua S. Levy; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Kristen M. Noto of the Worcester Branch Office prosecuted the case.
Woman Who Kidnapped Her Roommate Gets Seven Year Prison SentenceRead the Press Release
WASHINGTON – Antoinette Gilmore, 28, of Washington, D.C., was sentenced today to 84 months in prison for the October 2023 kidnapping of her roommate, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
A jury convicted Gilmore of kidnapping on May 20, 2024. According to evidence presented at trial, on October 12, 2023, the victim, Michael Brown, got into an argument on the phone with Gilmore. During the argument, the defendant told Mr. Brown she wanted him out of her apartment. They agreed that the defendant would pick up Mr. Brown from downtown and bring him back to her apartment so that he could remove his belongings. Defendant Gilmore and her cousin went to pick up Mr. Brown. Once inside the car, the defendant instructed her cousin to punch and beat Mr. Brown and take his belongings as the defendant drove. Mr. Brown tried to get out of the car, but they locked the doors and trapped him from within.
At one point, Mr. Brown was able to get the back car door open and escape. At the defendant’s direction, her cousin jumped out and chased Mr. Brown down, eventually catching him and dragging him by the collar of his shirt back into the defendant’s car. Once they reached their destination, Mr. Brown was pulled out of the car where he managed to break free. He ran straight to the Sixth District Police substation where he reported the incident to police.
In addition to the prison term, Superior Court Judge Errol Arthur ordered five years of supervised release.
This case was investigated by the Metropolitan Police Department. It was prosecuted and tried by Assistant U.S. Attorneys Sara Hanson and Lauren Miller of the Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by Paralegal Specialist Crystal Waddy and Supervisory Victim Witness Service Coordinator Katina Adams-Washington.
Wimauma Man on Federal Supervised Release for Drug and Firearm Offenses Pleads Guilty to Possessing Ammunition as A Convicted FelonRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Alfredo Davila, Jr. (30, Wimauma) today pleaded guilty to possession of ammunition by a convicted felon. Davila, Jr. faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set. Davila, Jr. has agreed to forfeit the ammunition used in the commission of the offense.
According to the plea agreement, on February 18, 2024, deputies with the Hillsborough County Sheriff’s Office responded to a 911 call where the caller stated that a gun was pointed at her face. The caller provided an address where the incident was occurring and a description of the armed individual. Upon arrival, deputies located Davila, Jr., who matched the description provided by the caller, and saw him throw a black object on the ground. Deputies located the object and discovered it to be a loaded magazine containing 19 rounds of live ammunition. At the time of the offense, Davila, Jr. was on federal supervised release for possession with intent to distribute cocaine, and possession of a firearm in furtherance of a drug trafficking crime. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jeff Chang.
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.
West Virginia Business Owner Charged with Employment Tax Offenses and Not Filing Personal Tax ReturnsRead the Press Release
A federal grand jury in Charleston, West Virginia, returned an indictment today charging a West Virginia man with not paying employment taxes and not filing his personal tax returns.
According to the indictment, since 1994, Dean Dawson, of Hurricane, owned and operated Real Property Consulting Group LLC, a real estate appraisal business. The indictment charges that from the third quarter of 2018 to 2023, Dawson did not pay to the IRS the Social Security, Medicare and federal income taxes that were withheld from employees’ paychecks or file quarterly tax returns reporting those withholdings, as required by law. Though Dawson allegedly provided his employees with Forms W-2, Wage and Tax Statement, he did not file those forms with the Social Security Administration. Dawson allegedly used his business bank account to pay his personal expenses and directed funds to his wife who was not an employee. The indictment further alleges that Dawson did not file personal tax returns from 2018 to 2023.
Dawson was charged with 19 counts of failing to collect and pay over employment taxes and six counts of willfully failing to file personal tax returns. If convicted, he faces a maximum penalty of five years in prison for each employment tax count and a maximum penalty of one year in prison for each count of failure to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney William S. Thompson for the Southern District of West Virginia made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Brian E. Flanaghan and Rebecca A. Caruso of the Tax Division and Assistant U.S. Attorney Jonathan Storage for the Southern District of West Virginia 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.
West Virginia Business Owner Charged with Employment Tax Offenses and Not Filing Personal Tax ReturnsRead the Press Release
CHARLESTON, W.Va. – A federal grand jury in Charleston, West Virginia, returned an indictment today charging a West Virginia man with not paying employment taxes and not filing his personal tax returns.
According to the indictment, since 1994, Dean Dawson, of Hurricane, owned and operated Real Property Consulting Group LLC, a real estate appraisal business. The indictment charges that from the third quarter of 2018 to 2023, Dawson did not pay to the IRS the Social Security, Medicare and federal income taxes that were withheld from employees’ paychecks or file quarterly tax returns reporting those withholdings, as required by law. Though Dawson allegedly provided his employees with Forms W-2, Wage and Tax Statement, he did not file those forms with the Social Security Administration. Dawson allegedly used his business bank account to pay his personal expenses and directed funds to his wife who was not an employee. The indictment further alleges that Dawson did not file personal tax returns from 2018 to 2023.
Dawson was charged with 19 counts of failing to collect and pay over employment taxes and six counts of willfully failing to file personal tax returns. If convicted, he faces a maximum penalty of five years in prison for each employment tax count and a maximum penalty of one year in prison for each count of failure to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney William S. Thompson for the Southern District of West Virginia made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Brian E. Flanaghan and Rebecca A. Caruso of the Tax Division and Assistant U.S. Attorney Jonathan Storage for the Southern District of West Virginia 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.
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. 3:24-cr-120.
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Utah Based Drug Trafficking Ringleader Sentenced to 240 Months’ ImprisonmentRead the Press Release
Salt Lake City, Utah – Joe Robert Rael, 55, of Salt Lake City was sentenced to 20 years’ imprisonment, and a term of 60 months’ supervised release for engaging in a conspiracy to traffic narcotics and launder money.
The sentence, imposed by U.S. District Court Judge Howard C. Nielson, Jr., took place on July 18, 2024, after Rael, who also goes by the alias “Jojo,” pleaded guilty February 9, 2023, following a 34-count indictment that involved over 25 defendants in 2021. See prior release here.
According to court documents and statements made at the change of plea hearing, from May 2020 to May 2021, Rael and his 26 co-defendants engaged in a conspiracy to traffic methamphetamine, heroin, fentanyl, and launder money. During the investigation, law enforcement learned that Rael was a main supplier of heroin and methamphetamine in the District of Utah. Agents further learned Rael had several sources of supply for narcotics, including co-defendants. The investigation also revealed some of the narcotics were obtained directly from the Mexican Drug Cartel Jalisco New Generation (CJNG). Once Rael obtained the heroin and methamphetamine from his sources, he distributed the narcotics to several other co-conspirators. The investigation demonstrated a clear link between street gangs in Utah and Mexican Drug Cartels trafficking narcotics in the United States.
During the investigation, agents estimated more than 420 pounds of methamphetamine and 50 pounds of heroin flowed through the drug trafficking conspiracy in a one-year time period. For example, in February 2021, agents demonstrated that Rael received more than 11 pounds of methamphetamine and about two pounds of heroin within a few days.
Rael is the 23rd defendant out of 26 defendants to be sentenced. So far, sentences have ranged from 24 months to 192 months’ imprisonment.
“Mr. Rael is a career offender. He has been convicted in both state and federal court for trafficking methamphetamine and heroin, causing substantial harm within our community,” said U.S. Attorney Trina A. Higgins of the District of Utah. “Protecting our citizens is one of our top priorities. Taking Mr. Rael off the streets and dismantling the operation he and his coconspirators participated in furthers this priority. We will continue to work with our law enforcement partners to prosecute those who choose to distribute poison in our communities.”
“The sentencing of Rael is an important milestone in DEA’s focus on targeting the most prolific drug trafficking organizations distributing poison in our communities. This DEA investigation, like many others that are on-going, was a collaborative effort with other federal, state, and local law enforcement agencies in Utah. Together, our investigators will continue to work tirelessly to dismantle these drug trafficking networks and to protect Utah’s communities,” said DEA Rocky Mountain Field Division Special Agent in Charge Jonathan Pullen.
"ATF, DEA, and our local law enforcement partners have concentrated our resources on disrupting the Norteño gang pipeline responsible for delivering deadly drugs into our communities," said ATF Special Agent in Charge Brent Beavers. "The illegal trafficking of drugs tends to run hand-in-hand with the illegal possession of firearms and contributes to deadly gun violence. We hope this 20-year federal prison sentence serves as a strong deterrent to those who contemplate perpetuating violent crime in our communities.”
“The Metro Gang Unit works hand in hand with our federal partners to reduce the narcotics and violence in our community. This case is another example of the success of that partnership,” said Salt Lake County Sheriff Rosie Rivera. “We are grateful for the collaboration and diligent work by the U.S. Attorney’s Office in seeing this case through.”
“At IRS Criminal Investigation, we are very proud to have worked together with our many skilled law enforcement partners and bring justice in this case and protection for the community,” said IRS:CI Special Agent in Charge Carissa Messick. “These criminal enterprises only operate because of the significant financial benefits to the participants. We at the IRS specialize in tracing these finances to disrupt those benefits. In working with our partners at the DEA, ATF, and locally we can each use our expertise to dismantle these conspiracies from every angle and hopefully bring security to Utah communities.”
The case was investigated jointly by The United States Drug Enforcement Administration (DEA), The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Internal Revenue Service, Criminal Investigation (IRS-CI), and the Salt Lake County Sheriff’s Office Metro Gang Unit (MGU).
Assistant United States Attorney Stewart M. Young of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit https://www.justice.gov/ocdetf.
Attachments:
joe_robert_rael_sentencing_memorandum_v.1.pdfUnion County Woman Charged with Embezzling Hundreds of Thousands of Dollars from SynagogueRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, woman was charged in connection with her role in embezzling more than $350,000 from a Union County synagogue, U.S. Attorney Philip R. Sellinger announced today.
Stacy Margaritondo, 51, of Scotch Plains, New Jersey, is charged by complaint with one count of wire fraud. She appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In 2010, Margaritondo began working at a synagogue in Union County, New Jersey. She was promoted to office manager and bookkeeper in July 2020. Margaritondo’s duties included accounting/bookkeeping, payroll, preparing checks for accounts payable, and reporting to the synagogue’s board of directors regarding the synagogue’s financial condition. From December 2019 through May 2023, Margaritondo abused this position of trust by engaging in a fraudulent scheme to misappropriate approximately $350,000 from the synagogue’s accounts. Margaritondo routinely issued unauthorized checks made payable to herself drawn on the synagogue’s bank accounts; obtained unauthorized additional funds to conceal the embezzlement scheme by fraudulently using the synagogue’s name, bank statements, and balance sheet to obtain short-term financing from cash advance companies; and intentionally kept inaccurate accounting records and altered bank statements that she provided to the board of directors to conceal her scheme.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charge. He also thanked the Scotch Plains Police Department, under the direction of Chief Jeffrey J. Briel.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
margaritondo.complaint.pdfTwo Dominican Nationals Extradited in Connection with Grandparent ScamRead the Press Release
Two residents of Santiago de los Caballeros, Dominican Republic, were extradited to the United States last week and made their initial appearance in Newark federal court yesterday on charges relating to their participation in a sprawling “grandparent scam” that defrauded elderly Americans out of millions of dollars.
Rafael Ambiorix Rodriguez Guzman, also known as Max Morgan, 59, and Felix Samuel Reynoso Ventura, also known as Fili and Filly The Kid, 37, are among 11 Dominican Nationals charged in a 19-count indictment filed in the U.S. District Court for the District of New Jersey that was unsealed on April 29. Following their initial appearance yesterday, the court ordered both men detained pending trial.
According to the indictment, Rodriguez Guzman, Reynoso Ventura and their co-conspirators engaged in a long-running “grandparent” or “family in need of bail” scam against hundreds of seniors across the United States, including in New Jersey, New York, Pennsylvania and Massachusetts. Both Rodriguez Guzman and Reynoso Ventura are alleged to have worked in the call centers in the Dominican Republic from which the scam operated, where they phoned elderly Americans and sought to steal their money.
As detailed in court filings, members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested in connection with an accident and needed help.
Once openers tricked victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers” — including Rodriguez Guzman and Reynoso Ventura — allegedly impersonated defense attorneys, police officers or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones. The cash was typically retrieved by couriers sent to the victims’ homes or mailed by victims at the direction of the closers.
Rodriguez Guzman and Reynoso Ventura each face multiple charges, including mail and wire fraud conspiracy, wire fraud, mail fraud and conspiracy to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison for each count, a maximum fine of $250,000 for each count of the mail and wire fraud charges and a maximum fine of $500,000 for money laundering conspiracy.
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue criminals who defraud victims through so-called ‘grandparent scams,’” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable Americans from abroad. We thank the government of the Dominican Republic for extraditing these defendants to the United States to face charges.”
“As alleged, these two defendants played a role in a scheme that relied on the love and devotion of elderly victims in order to cheat them out of millions of dollars,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “In this ‘grandparents’ scam,’ some of the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. Conspirators like Rodriguez Guzman and Reynoso Ventura allegedly impersonated a variety of people – police officers, lawyers and others – to convince the victims to pay up, which the panic-stricken grandparents often did. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.”
“These defendants and their co-conspirators are accused of heartlessly robbing countless elderly victims of their precious time and often their life savings – all from more than 1,500 miles away, said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “Rafael Ambiorix Rodriguez Guzman and Felix Samuel Reynoso Ventura were among the 16 individuals charged in this appalling scheme, which spanned at least four U.S. states and allegedly threatened hundreds of innocent Americans’ livelihoods. The merciless greed of perpetrators is boundless, but is no match for HSI New York’s El Dorado Task Force, its Cyber Intrusion Group and the greater law enforcement community. I am proud to stand alongside our global partners in our relentless commitment to the safety and overall wellbeing of the vulnerable public."
“The grandparent scam is a cruel fraud scheme that deliberately preys on elderly and vulnerable persons within society. Perpetrators, often cowardly operating off-shore, cause extreme emotional and financial harm to the innocent people they target in commission of this crime,” said Acting Special Agent in Charge Bradley Parker of the Social Security Administration Office of the Inspector General (SSA-OIG) Boston New York Field Division. “SSA OIG proudly joined HSI, the FBI, the Justice Department and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries and we appreciate the diligence of the U.S. Marshals Service in facilitating the extradition of these defendants from the Dominican Republic to New Jersey to hold them accountable for their actions.”
“We are now one step closer to holding accountable the alleged fraudsters who financially exploited hundreds of elderly Americans,” said Commissioner Edward A. Caban of the New York City Police Department (NYPD). “This should serve as a reminder to other criminals about the extensive reach of New York law enforcement and our unwavering commitment to delivering justice to all victims. I applaud our NYPD investigators and all of our federal partners for their dedication to this important case.”
HSI, SSA-OIG, NYPD and the FBI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from the Dominican Republic of the defendants with assistance from the United States Marshals Service. Justice Department officials also recognized the critical cooperation of the Dominican government in effecting the extradition of Rodriguez Guzman and Reynoso Ventura pursuant to the treaty between the two countries.
Trial Attorneys Jason Feldman, Joshua Ferrentino and Emily Powers of the Civil Division's Consumer Protection Branch and Assistant U.S. Attorney Carolyn Silane for the District of Jersey are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Dominican Nationals Extradited in Connection with Grandparent ScamRead the Press Release
NEWARK, N.J. – Two residents of Santiago de los Caballeros, Dominican Republic, were extradited to the United States and made their initial appearance in Newark federal court on charges relating to their participation in a sprawling “grandparent scam” that defrauded elderly Americans out of millions of dollars, the U.S. Attorney’s Office for the District of New Jersey and the Justice Department announced today.
Rafael Ambiorix Rodriguez Guzman, also known as “Max Morgan,” age 59, and Felix Samuel Reynoso Ventura, also known as “Fili” and “Filly The Kid,” age 37, are among eleven Dominican Nationals charged in a 19-count indictment filed in the United States District Court for the District of New Jersey that was unsealed on April 29, 2024. Following their initial appearance on July 22, 2024, before U.S. Magistrate Judge André M. Espinosa both defendants were detained pending trial.
According to the indictment:
Rodriguez Guzman, Reynoso Ventura, and their co-conspirators engaged in a long-running “grandparent” or “family in need of bail” scam against hundreds of seniors across the United States, including in New Jersey, New York, Pennsylvania, and Massachusetts. Both Rodriguez Guzman and Reynoso Ventura are alleged to have worked in the call centers in the Dominican Republic from which the scam operated, where they phoned elderly Americans and sought to steal their money.
As detailed in court filings, members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren, or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested in connection with an accident, and needed help.
Once openers tricked victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers”—including Rodriguez Guzman and Reynoso Ventura—allegedly impersonated defense attorneys, police officers, or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones. The cash was typically retrieved by couriers sent to the victims’ homes or mailed by victims at the direction of the closers.
Rodriguez Guzman and Reynoso Ventura each face multiple felony charges, including mail and wire fraud conspiracy, wire fraud, mail fraud, and conspiracy to commit money laundering. If convicted, they face a maximum penalty 20 years in prison for each count, a maximum fine of $250,000 for each count of the mail and wire fraud charges and a maximum fine of $500,000 for money laundering conspiracy.
U.S. Attorney Philip R. Sellinger“As alleged, these two defendants played a role in a scheme that relied on the love and devotion of elderly victims in order to cheat them out of millions of dollars. In this ‘grandparents’ scam,’ some of the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. Conspirators like Rodriguez Guzman and Reynoso Ventura allegedly impersonated a variety of people – police officers, lawyers and others – to convince the victims to pay up, which the panic-stricken grandparents often did. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.”
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue criminals who defraud victims through so-called ‘grandparent scams,’” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable Americans from abroad. We thank the government of the Dominican Republic for extraditing these defendants to the United States to face charges.”
“These defendants and their co-conspirators are accused of heartlessly robbing countless elderly victims of their precious time and often their life savings – all from more than 1,500 miles away, said Special Agent in Charge Ivan J. Arvelo of HSI New York. “Rafael Ambiorix Rodriguez Guzman and Felix Samuel Reynoso Ventura were among the 16 individuals charged in this appalling scheme, which spanned at least four U.S. states and allegedly threatened hundreds of innocent Americans’ livelihoods. The merciless greed of perpetrators is boundless, but is no match for HSI New York’s El Dorado Task Force, its Cyber Intrusion Group, and the greater law enforcement community. I am proud to stand alongside our global partners in our relentless commitment to the safety and overall wellbeing of the vulnerable public."
“The grandparent scam is a cruel fraud scheme that deliberately preys on elderly and vulnerable persons within society. Perpetrators, often cowardly operating off-shore, cause extreme emotional and financial harm to the innocent people they target in commission of this crime,” said Acting Special Agent in Charge Bradley Parker of the Social Security Administration Office of the Inspector General (SSA-OIG), Boston New York Field Division. “SSA OIG proudly joined HSI, the FBI, the Justice Department, and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries and we appreciate the diligence of the U.S. Marshals Service in facilitating the extradition of these defendants from the Dominican Republic to New Jersey to hold them accountable for their actions.”
“We are now one step closer to holding accountable the alleged fraudsters who financially exploited hundreds of elderly Americans,” said Commissioner Edward A. Caban of the New York City Police Department (NYPD). “This should serve as a reminder to other criminals about the extensive reach of New York law enforcement and our unwavering commitment to delivering justice to all victims. I applaud our NYPD investigators and all of our federal partners for their dedication to this important case.”
HSI, SSA-OIG, NYPD, and the FBI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from the Dominican Republic of the defendants with assistance from the United States Marshals Service. Justice Department officials also recognized the critical cooperation of the Dominican government in effecting the extradition of Rodriguez Guzman and Reynoso Ventura pursuant to the treaty between the two countries.
Assistant U.S. Attorney Carolyn Silane for the District of Jersey and Trial Attorneys Jason Feldman, Joshua Ferrentino, and Emily Powers of the Civil Division's Consumer Protection Branch are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Twelfth Defendant Pleads Guilty in Transnational Scheme to Defraud Spanish-Speaking U.S. ConsumersRead the Press Release
MIAMI – A Peruvian national pleaded guilty today for his participation in a transnational mail and wire fraud conspiracy.
According to court documents, Jose Alejandro Zuñiga Cano, 40, of Lima, Peru, was the operator of a Peruvian call center that defrauded and extorted Spanish-speaking U.S. residents by falsely threatening them with arrest, court proceedings and immigration consequences. Zuñiga was extradited from Peru in March to face charges related to the scheme.
Zuñiga is the 12th defendant to be convicted in connection with a $15 million transnational fraud scheme that defrauded and threatened Spanish-speaking U.S. consumers, claiming they would suffer legal consequences if they did not pay for English-language learning products they never requested. The scheme was responsible for defrauding more than 30,000 Spanish-speaking residents of the United States. Many of the victims were recent immigrants who had expressed interest in learning English.
The 12 defendants include eight Peruvian call center owner-operators and four distribution center owner-operators who processed payments, distributed products and facilitated the fraud in the United States. Many of the defendants shared strategies on how to defraud Spanish-speaking residents of the United States.
“The long arm of the American justice system has no limits when it comes to reaching fraudsters who prey on our nation’s most vulnerable populations, to include the elderly and recent immigrants,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will not allow transnational criminals to use fear tactics and intimidation to steal money from the public we serve. Individuals who defraud American consumers will be brought to justice, no matter where they are located.”
“The Justice Department’s Consumer Protection Branch is dedicated to protecting vulnerable U.S. consumers from fraudsters, including those who reside beyond our borders,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Individuals who defraud our immigrant communities will be brought to justice and held accountable in U.S. courts.”
“This investigation attests that justice will be pursued relentlessly to protect U.S. consumers,” said Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS) Miami Field Division. “The U.S. Postal Inspection Service, Justice Department’s Consumer Protection Branch and the U.S. Attorney’s Office worked steadfastly to uphold the integrity of our legal system and the postal system. Today’s 12th conviction should send a strong message to those who exploit the mail for criminal use. You will be brought to justice.”
According to court documents, Zuñiga owned and operated a call center in Lima that placed unsolicited calls to Spanish-speaking consumers in the United States and falsely claimed that they had won or qualified for free products, including computer tablets and English language courses. On later calls, Zuñiga and his co-conspirators falsely claimed that victims were contractually obligated to pay large sums to receive the products. Zuñiga and his co-conspirators impersonated lawyers, court officials, police officers and representatives of a supposed “minor crimes court” to intimidate victims and force them to send payments. Zuñiga and his co-conspirators threatened victims with court proceedings, arrest and immigration consequences if they did not pay.
Victims who paid were later re-victimized by Zuñiga and his co-conspirators with a related restitution scheme. According to court documents, the defendant and his co-conspirators placed additional calls to victims who had already paid and, while posing as lawyers for a U.S. court, falsely represented that victims were entitled to restitution payments and would receive their money back if they paid the lawyer who purportedly brought the case on their behalf. In reality, there was no lawyer, no restitution order and no funds returned to the victims who made those additional payments. Instead, Zuñiga kept those additional victim payments for himself.
On June 13, Zuniga pleaded guilty to conspiracy to commit mail and wire fraud. A sentencing hearing is scheduled for Oct. 10. Zuniga faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Zuñiga is the eighth defendant to be extradited from Peru and plead guilty in federal court to conspiracy to commit mail and wire fraud related to Peruvian call centers. In 2021 and 2022, U.S. District Judge Robert N. Scola, Jr. sentenced Henrry Milla, Carlos Espinoza, Jerson Renteria, Fernan Huerta, Omar Cuzcano, Evelyng Milla and Josmell Espinoza to sentences ranging from 88 to 110 months in prison. Additionally, four other co-conspirators who facilitated the operations of these call centers have also been sentenced. Most recently, in March 2023, U.S. District Judge Patricia A. Seitz sentenced Luis Rendon, the operator of a U.S. distribution center that facilitated a substantial part of the fraud scheme, to 65 months in prison.
USPIS and the Consumer Protection Branch investigated the case.
Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorney Carolyn Rice of the Consumer Protection Branch are prosecuting the case and Assistant U.S. Attorney Annika Miranda for the Southern District of Florida is handling asset forfeiture. The Federal Trade Commission, Justice Department’s Office of International Affairs, U.S. Attorney’s Office for the Southern District of Florida, State Department’s Diplomatic Security Service, U.S. Marshals Service, Peruvian National Prosecutor General’s Office and Peruvian National Police provided critical assistance.
The Justice Department continues to investigate and bring charges in other similar matters involving threats against Spanish-speaking residents of the United States.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Additional information about the Consumer Protection Branch and its fraud enforcement efforts can be found at https://www.justice.gov/civil/consumer-protection-branch.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-CR-20552.
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Twelfth Defendant Pleads Guilty in Transnational Scheme to Defraud Spanish-Speaking U.S. ConsumersRead the Press Release
A Peruvian national pleaded guilty today for his participation in a transnational mail and wire fraud conspiracy.
According to court documents, Jose Alejandro Zuñiga Cano, 40, of Lima, Peru, was the operator of a Peruvian call center that defrauded and extorted Spanish-speaking U.S. residents by falsely threatening them with arrest, court proceedings and immigration consequences. Zuñiga was extradited from Peru in March to face charges related to the scheme.
Zuñiga is the 12th defendant to be convicted in connection with a $15 million transnational fraud scheme that defrauded and threatened Spanish-speaking U.S. consumers, claiming they would suffer legal consequences if they did not pay for English-language learning products they never requested. The scheme was responsible for defrauding more than 30,000 Spanish-speaking residents of the United States. Many of the victims were recent immigrants who had expressed interest in learning English.
The 12 defendants include eight Peruvian call center owner-operators and four distribution center owner-operators who processed payments, distributed products and facilitated the fraud in the United States. Many of the defendants shared strategies on how to defraud Spanish-speaking residents of the United States.
“The Justice Department’s Consumer Protection Branch is dedicated to protecting vulnerable U.S. consumers from fraudsters, including those who reside beyond our borders,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Individuals who defraud our immigrant communities will be brought to justice and held accountable in U.S. courts.”
“The long arm of the American justice system has no limits when it comes to reaching fraudsters who prey on our nation’s most vulnerable populations, to include the elderly and recent immigrants,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will not allow transnational criminals to use fear tactics and intimidation to steal money from the public we serve. Individuals who defraud American consumers will be brought to justice, no matter where they are located.”
“This investigation attests that justice will be pursued relentlessly to protect U.S. consumers,” said Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS) Miami Field Division. “The U.S. Postal Inspection Service, Justice Department’s Consumer Protection Branch and the U.S. Attorney’s Office worked steadfastly to uphold the integrity of our legal system and the postal system. Today’s 12th conviction should send a strong message to those who exploit the mail for criminal use. You will be brought to justice.”
According to court documents, Zuñiga owned and operated a call center in Lima that placed unsolicited calls to Spanish-speaking consumers in the United States and falsely claimed that they had won or qualified for free products, including computer tablets and English language courses. On later calls, Zuñiga and his co-conspirators falsely claimed that victims were contractually obligated to pay large sums to receive the products. Zuñiga and his co-conspirators impersonated lawyers, court officials, police officers and representatives of a supposed “minor crimes court” to intimidate victims and force them to send payments. Zuñiga and his co-conspirators threatened victims with court proceedings, arrest and immigration consequences if they did not pay.
Victims who paid were later re-victimized by Zuñiga and his co-conspirators with a related restitution scheme. According to court documents, the defendant and his co-conspirators placed additional calls to victims who had already paid and, while posing as lawyers for a U.S. court, falsely represented that victims were entitled to restitution payments and would receive their money back if they paid the lawyer who purportedly brought the case on their behalf. In reality, there was no lawyer, no restitution order and no funds returned to the victims who made those additional payments. Instead, Zuñiga kept those additional victim payments for himself.
Today, Zuñiga pleaded guilty to conspiracy to commit mail and wire fraud. A sentencing hearing is scheduled for Oct. 10. Zuñiga faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Zuñiga is the eighth defendant to be extradited from Peru and plead guilty in federal court to conspiracy to commit mail and wire fraud related to Peruvian call centers. In 2021 and 2022, U.S. District Judge Robert N. Scola Jr. sentenced Henrry Milla, Carlos Espinoza, Jerson Renteria, Fernan Huerta, Omar Cuzcano, Evelyng Milla and Josmell Espinoza to sentences ranging from 88 to 110 months in prison. Additionally, four other co-conspirators who facilitated the operations of these call centers have also been sentenced. Most recently, in March 2023, U.S. District Judge Patricia A. Seitz sentenced Luis Rendon, the operator of a U.S. distribution center that facilitated a substantial part of the fraud scheme, to 65 months in prison.
USPIS and the Consumer Protection Branch investigated the case.
Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorney Carolyn Rice of the Consumer Protection Branch are prosecuting the case. Assistant U.S. Attorney Annika Miranda for the Southern District of Florida is handling asset forfeiture. The Federal Trade Commission, U.S. Attorney’s Office for the Southern District of Florida, State Department’s Diplomatic Security Service, U.S. Marshals Service, Peruvian National Prosecutor General’s Office and Peruvian National Police provided critical assistance.
The Justice Department's Office of International Affairs provided valuable assistance in securing the extradition of Zuñiga from Peru.
The Justice Department continues to investigate and bring charges in other similar matters involving threats against Spanish-speaking residents of the United States.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Additional information about the Consumer Protection Branch and its fraud enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
St. Louis County Woman Sentenced for Helping Her Son Fake a DisabilityRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Tuesday sentenced a St. Louis County, Missouri woman to five years of probation and 18 months of house arrest and ordered her to repay $131,155 for helping her son fake a mental disability for more than 13 years as well as defrauding the Social Security Administration to obtain benefits for herself.
Zella Rives, 57, of Edmundson, bolstered her son’s false claims of disability from 2010 to 2013 by concealing his lies and acting as representative payee for him. Zella Rives fraudulently confirmed Gino Rives’ eligibility in 2019, concealing his ownership of multiple houses and vehicles, his ability to earn income and his relationship with his girlfriend, her plea agreement says.
Zella Rives pleaded guilty in February to five counts of theft of government funds and one count of making a false statement.
“Zella Rives held a position of trust for 13 years as a representative payee, which she misused in fraudulently obtaining Supplemental Security Income benefits for her son. She concealed that he was not disabled, and falsely reported about his employment and resources so his benefits would continue,” said Elena Torres Burfield, Special Agent in Charge, Social Security Administration Office of the Inspector General, Midwestern Cooperative Disability Investigations Division. “This sentence demonstrates that her criminal actions are punishable under the law and my office will continue to protect SSA’s disability programs for those who are truly eligible to receive them. I thank the U.S. Secret Service for their work in this investigation and the U.S. Attorney’s Office for prosecuting this case.”
In June, Judge Clark sentenced Gino Rives, 36, of Edmundson, to 87 months in prison for the disability fraud case and a separate case involving his financial exploitation of two elderly women. Gino Rives obtained four vehicles and checks totaling more than $855,000 from one woman and used her debit card for personal purchases for himself and his family. He executed a quit claim deed and transferred a house belonging to the other victim into his name before.
The Social Security Administration Office of Inspector General and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Tracy Berry prosecuted the case.
Springfield Sex Offender Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man who is a registered sex offender pleaded guilty in federal court today to receiving and distributing child pornography.
Ronald Lee Goins, 43, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of receiving and distributing child pornography. Goins has a prior conviction for furnishing pornographic material to a minor under the age of 14, and two prior convictions for failing to register as a sex offender.
According to today’s plea agreement, law enforcement officers found a cell phone in an abandoned vehicle in an alley at 2044 N. Avenue in Springfield on July 22, 2023. Investigators examined the phone and found files that contained child pornography on a micro-SD card that had been inserted into the phone.
Investigators determined the images of child pornography had last been modified in 2020 and 2021, at which time the phone belonged to Goins. There were also self-produced images of Goins, documents, and other files indicating that Goins was the user of the cell phone during 2020 and 2021. Two CyberTip Reports from Snapchat and Instagram, which involved child pornography uploads, were associated with the email address located on the micro-SD card.
Goins was arrested on Oct. 30, 2023, on outstanding arrest warrants in a separate case.
Under federal statutes, Goins is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Greene County, Mo., Sheriff’s Department, Homeland Security Investigations, the Springfield, Mo., Police Department and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South Carolina Individuals Sentenced for Roles in Gun Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – Six South Carolina individuals have been sentenced for conspiring to illegally sell firearms, including nine handguns, in New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Kendell McFadden, 31, of Florence, South Carolina, was sentenced today by U.S. District Judge Michael E. Farbiarz in Newark federal court to 48 months in prison for his role in the scheme after previously pleading guilty to the conspiracy.
His conspirators – Laronmir McFadden, Savon Harrison, Dontavian Jones, Michael Gamble, and Donjanea McClary – were previously sentenced after each of them had also previously pleaded guilty to the conspiracy. Laronmir McFadden, 30, had also pleaded guilty to unlawfully possessing a firearm by a convicted felon, and was sentenced to 49 months in prison. Harrison, 27, was sentenced to 30 months in prison; Jones, 26, was sentenced to 22 months in prison; Gamble, 33, was sentenced to 14 months in prison; and McClary was sentenced to 2 years of probation.
According to documents filed in this case and statements made in court:
From August 2019 through September 2021, the defendants conspired to traffic firearms from South Carolina to New Jersey. Although Kendell McFadden was prohibited from possessing a firearm as a prior convicted felon, he and his conspirators utilized straw purchasers to purchase firearms in South Carolina and then transport the firearms to Paterson, New Jersey, and elsewhere for resale. On Sept. 26, 2021, law enforcement intercepted a vehicle containing Kendell McFadden, Laronmir McFadden, Harrison, and Jones travelling from South Carolina to New Jersey and recovered nine firearms.
In addition to the prison term, Judge Farbiarz sentenced Kendell McFadden to three years of supervised release and fined $1,000.
U.S. Attorney Sellinger credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Ross A. Marchetti in the Newark Field Division and Special Agent in Charge Bennie Mims in the Charlotte Field Division; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Casey S. Smith of the General Crimes Unit in Newark.
South Bend Man Sentenced to 84 Months in PrisonRead the Press Release
HAMMOND- Frank Stork, 45 years old, of South Bend, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Stork was sentenced to 84 months in prison followed by 2 years of supervised release.
According to documents in the case, on January 3, 2021, law enforcement observed Stork driving a vehicle while committing multiple traffic violations. When they stopped him, he physically resisted the officers. A loaded .45 caliber firearm which had been reported stolen in 2019 was recovered from the vehicle. Stork’s criminal history revealed he had six prior felony convictions, any one of which prohibited him from possessing the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force with assistance from the Hobart Police Department. This case was prosecuted by Assistant United States Attorney Caitlin M. Padula.
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.
Six Individuals Charged in Cocaine Distribution Conspiracy, Including Alabama State TrooperRead the Press Release
MONTGOMERY, ALABAMA – Today, United States Attorney Jonathan S. Ross announced that a federal grand jury in Montgomery, Alabama indicted six individuals for their roles in a conspiracy to distribute cocaine.
According to the indictment, 57-year-old Jim Carter, Jr., from Montgomery, Alabama; 38-year-old Francisco Lopez, from Texas; 40-year-old Maria Beatriz Palomo-De Lopez, a Mexican national; 63-year-old Saundra S. Curry, from Deatsville, Alabama; 37-year-old Bryce Johnson, from Union Springs, Alabama; and 52-year-old Michael Anthony Evans, an Alabama State Trooper from Montgomery, Alabama, are charged with conspiring to distribute cocaine. The conspiracy began at an unknown date and continued through at least June 10, 2024. The indictment further alleges that Jim Carter, Jr., and Francisco Lopez are each responsible for at least five kilograms of cocaine involved in the conspiracy.
In addition, the indictment charges Jim Carter, Jr., Francisco Lopez, and Maria Beatriz Palomo-De Lopez with possessing cocaine with intent to distribute. Lastly, the indictment alleges that Maria Beatriz Palomo-De Lopez illegally re-entered the United States after being deported in 2013.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Due to the amount of cocaine alleged against Jim Carter, Jr. and Francisco Lopez in the indictment, they each face a sentence of ten years to life in prison. The other defendants are facing a sentence of up to 20 years. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Drug Enforcement Administration investigated the case, with cooperation from the Alabama Law Enforcement Agency. Assistant United States Attorney Mark E. Andreu is prosecuting this case.
Sioux City Man Who Attempted to Flee Traffic Stop Sentenced for Illegal Possession of FirearmRead the Press Release
A Sioux City man who tried to run from law enforcement, but didn’t get far, was sentenced today to more than 10 years in federal prison.
Jeremy Martin, age 45, originally from El Paso, Texas, received the prison term after a March 11, 2024, guilty plea to felon in possession of a firearm.
Evidence in the case revealed that on January 26, 2023, Sioux City Police attempted to stop the vehicle Martin was operating for speeding. Martin attempted to flee, getting the vehicle high centered and stuck in snow. Martin then fled on foot but was promptly apprehended by officers from the Sioux City Police Department. Martin admitted to the arresting officer to having a firearm in his jacket, a box of ammunition containing 100 rounds, that had been stolen, a syringe, scale and a baggie that contained more than 3 grams of methamphetamine.
Martin’s criminal history included a felony, which prohibited him from legally possessing firearms.
Martin was sentenced in Sioux City by United States District Court Judge Leonard T. Strand to 126 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Martin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by Sioux City, Iowa Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4017.
Follow us on Twitter @USAO_NDIA.
Shakopee Man Pleads Guilty to Feeding Our Future Jury Bribery SchemeRead the Press Release
MINNEAPOLIS – A Shakopee man has pleaded guilty to his role in providing a $120,000 bribe to a juror in the Feeding Our Future trial, announced United States Attorney Andrew M. Luger.
According to court documents, on April 22, 2024, seven defendants went to trial before U.S. District Judge Nancy E. Brasel for their roles in the Feeding Our Future fraud scheme. During the trial, Abdimajid Mohamed Nur, 23, and four others conspired with each other to provide a cash bribe to one of the jurors in exchange for the juror returning a not guilty verdict in the trial.
As part of the scheme, Nur and his co-defendants decided to target Juror 52 because she was the youngest juror and they believed her to be the only juror of color. Nur and his co-defendants conducted online research to obtain Juror 52’s personal information, including her home address and information about her background and family members. They conducted surveillance of Juror 52 to confirm her home address and obtain information about Juror 52’s daily habits. Nur recruited his co-defendant, Ladan Ali, to deliver the bribe money to Juror 52. During the trial and at Nur’s direction, Ali flew from Seattle to Minneapolis to meet with Nur and discuss the plan to bribe Juror 52. Ali agreed to deliver the bribe money to Juror 52 in exchange for a $150,000 cash payment.
According to court documents, on May 30, 2024, Ali flew from Seattle to Minneapolis to carry out the bribery scheme. On May 31, 2024, at the direction of Nur, Ali attempted to follow Juror 52 home as she left a downtown Minneapolis parking ramp at the conclusion of the first day of closing arguments in the trial. Nur had previously provided Ali with a photo of Juror 52’s car and a map of the parking ramp.
According to court documents, on June 1, 2024, Ali told Nur —falsely—that she had approached Juror 52 at a bar and that Juror 52 was interested in taking the bribe but wanted $500,000 in exchange for returning a not guilty verdict. Ali told Nur that Juror 52 wanted Ali to deliver the money at a specific time when Juror 52 would be home alone. In reality, Ali did not speak with Juror 52, and Juror 52 never agreed to accept a bribe. Nevertheless, Nur believed Ali and relayed the information to another co-defendant, Abdiaziz Farah, who said that he would obtain the bribe money. On June 2, 2024, Abdiaziz Farah instructed Nur to meet him at Said Farah’s business, Bushra Wholesalers, to pick up the bribe money. When Nur arrived, Said Farah brought him a cardboard box containing $200,000 in cash to bribe Juror 52. Later that day, Nur met Ali in a parking lot in Bloomington and gave her the cardboard box containing the $200,000 in cash. Ali took the cash out of the box and put it into a Hallmark gift bag. Nur then instructed Ali to meet Abdulkarim Farah at a location near Juror 52’s house. Nur understood that Abdulkarim Farah would accompany Ali to Juror 52’s house and video record her delivery of the bribe as proof that the bribe money was delivered and Juror 52’s acceptance of the bribe.
According to court documents, later that night, Nur received the video of Ali delivering the bribe money from Abdulkarim Farah via an encrypted messaging app. Nur later deleted the video in order to conceal his involvement in the bribery scheme. Nur also deleted the encrypted messaging app and other evidence of the scheme from his phone.
Nur pleaded guilty today in U.S. District Court before Judge David S. Doty to one count of bribery of a juror. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI with assistance from IRS – Criminal Investigations, the U.S. Postal Inspection Service, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorneys Joseph H. Thompson, Matthew Ebert, Harry Jacobs, Chelsea Walcker, and Daniel Bobier are prosecuting the case.
abdimajid_nur_plea_agreement.pdfSchenectady County Man Pleads Guilty to Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Timothy “Mitch” Duell, age 47, of Schenectady County, New York, pled guilty today to possessing child pornography. United States Attorney Carla B. Freedman and Special Agent in Charge Matthew Scarpino of Homeland Security Investigations (HSI), Buffalo, New York Field Office, made the announcement.
Duell admitted that he possessed sexually explicit images of a child under the age of 12, and engaged in chats where he discussed his interest in engaging in sex acts with that child.
At sentencing scheduled for November 26, 2024, before United States District Judge Mae D’Agostino, Duell faces a statutory maximum imprisonment term of 20 years. Additionally, Duell will be required to serve a post-imprisonment term of supervised release of between 5 years and life, must register as a sex offender upon release, pay restitution to the victim of his offense, and forfeit the device he used to commit it. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.
HSI and the New York State Police investigated this case, and Assistant United States Attorney Michael D. Gadarian prosecuted this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Rockford Man Sentenced to Six and a Half Years in Federal Prison for Possession of Child PornographyRead the Press Release
ROCKFORD — A Rockford man has been sentenced to six and a half years in federal prison for possession of child pornography.
GREGORIO BACINO, 27, admitted in a plea agreement that in 2021 he knowingly possessed on his cellular telephone over 1,000 images and videos of minors, including those as young as infants, engaged in sexually explicit conduct.
U.S. District Court Judge Iain D. Johnston on Friday sentenced Bacino to six and a half years in federal prison, to be followed by 25 years of court-supervised release. Bacino also must register as a sex offender.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The government was represented by Assistant U.S. Attorney Robert S. Ladd.
Riverside County Chiropractor Agrees to Pay $180,000 to Resolve Allegations of Health Care FraudRead the Press Release
FRESNO, Calif. — Chiropractor Kevin Michael Brown, of Menifee, has agreed to pay $180,000 to resolve allegations that he violated the False Claims Act by submitting hundreds of false claims to Medicare for surgically implanted neurostimulators, U.S. Attorney Phillip A. Talbert announced today.
As part of the settlement, Brown stipulated that, through his companies, Revive Medical of San Diego and Revive Medical LLC, located in Oklahoma City, he submitted claims to Medicare for surgically implanted neurostimulator devices, even though his companies did not perform surgery or implant neurostimulators. Brown stipulated that he and his companies instead taped a disposable “electroacupuncture” device called “Stivax” to their patients’ ears. Stivax devices do not require surgical implantation and are not reimbursable by Medicare. The United States alleges that this conduct violated the False Claims Act. In addition to paying the civil settlement, Brown agreed to a five-year exclusion period from Medicare, Medicaid, and all other federal health care programs.
“In addition to the clinics in San Diego and Oklahoma City, Revive Medical personnel performed Stivax procedures at a pain clinic in Chico, which is in the Eastern District of California,” said U.S. Attorney Talbert. “As this case demonstrates, we are committed to vigorously pursuing those who defraud Medicare and will use all tools available to us, including civil enforcement remedies. The investigation into false claims involving Stivax is ongoing.”
“Health care professionals who fraudulently bill Medicare for services never actually provided divert taxpayer funding meant to pay for medically necessary services for Medicare enrollees,” stated Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG will continue to work with our law enforcement partners to protect the integrity of federal health care programs and those served by those programs.”
The investigation was conducted with the U.S. Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Emilia P. E. Morris handled the case for the United States.
Riverhead Man Sentenced to 25 Years' Imprisonment for Conspiring to Distribute Large Quantities of Narcotics, Including Fentanyl, on the East End of Long IslandRead the Press Release
Earlier today, in federal court in Central Islip, Marquis Douglas, a narcotics trafficker who operated a narcotics business that was responsible for the distribution of large quantities of cocaine, fentanyl and other illicit substances throughout the North Fork of Long Island, was sentenced by United States District Judge Joanna Seybert to 25 years’ imprisonment. Douglas pleaded guilty in November 2023 to conspiring with others to distribute and possess with the intent to distribute more than five kilograms of cocaine, more than one kilogram of heroin, more than 280 grams of crack cocaine, more than 40 grams of fentanyl and a quantity of fentanyl analogue (fluorofentanyl), and distribution of cocaine and fluorofentanyl on or about August 12, 2021, which resulted in the overdose deaths of four people.
Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Raymond A. Tierney, Suffolk County District Attorney, announced the sentence.
“Douglas’s singular contribution to the opioid epidemic on Long Island is horrific as the drugs he distributed contributed to the deaths of four human beings,” stated United States Attorney Peace. “Today’s lengthy sentence should serve as a deterrent to those endangering our communities by distributing potentially lethal drugs. It is my hope that holding the defendant accountable for the terrible consequences of his actions will bring a measure of closure to the victims’ families.”
U.S. Attorney Peace also extended his thanks to the Riverhead Police Department, the Southold Police Department, the Shelter Island Police Department and the New York State Police for their assistance with the investigation.
“Marquis Douglas’s unlawful narcotics trafficking operation resulted in the deaths of four individuals on Long Island and posed a significant threat to the welfare of its citizens. His actions fueled an ongoing epidemic by supplying lethal drugs to our community. The FBI is committed to disrupting the flow of these illicit substances in our streets to prevent future unnecessary fatalities,” stated FBI Acting Assistant Director in Charge Curtis.
“This defendant dealt multiple kilograms of various deadly drugs, resulting in four tragic overdose deaths. This underscores why New York State needs to adequately address the opioid overdose epidemic plaguing communities throughout NY state and the country,” said District Attorney Tierney. "Thankfully, the strong collaboration between our office and our federal law enforcement partners allowed this case to be charged federally and provide justice for the families of these victims.”
On August 13, 2021, four men were found dead on the East End of Long Island after using cocaine that had been laced with a fentanyl analogue. An investigation by the Southold Police Department, the Shelter Island Police Department, the Suffolk County District Attorney’s Office and the FBI determined that Douglas was the source of the lethal narcotics. In August of 2021, Douglas’ operation distributed a quantity of cocaine laced with a fentanyl analogue in Greenport, New York. When this product was re-distributed at the street level, it ultimately led to four fatal overdoses on a single day in Greenport and Shelter Island. Douglas had distributed multiple kilograms of cocaine over the years, as well as kilogram level quantities of heroin and large quantities of fentanyl. At the time of his arrest in May of 2022, Douglas was found in possession of 105 grams of fentanyl and 135 grams of cocaine.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Michael R. Maffei and Andrew P. Wenzel, along with Special Assistant United States Attorney Dana Gremaux, are in charge of the prosecution.
The Defendant:
MARQUIS DOUGLAS
Age: 39
Riverhead, Long IslandE.D.N.Y. Docket No. 22-CR-246 (JS)
Prysmian Cables Settles Allegations of Falsified Test Results and Failure to Test Cable Used in Military VehiclesRead the Press Release
Prysmian Cables and Systems USA LLC (Prysmian), located in Abbeville, South Carolina, has agreed to pay $920,000 to settle allegations that it violated the False Claims Act by knowingly falsifying test results and failing to conduct required testing on military cable, known as M13486 cable, that was used in vehicles manufactured for use by the military. The alleged misconduct took place from approximately 2005 to 2021 at a facility in Paragould, Arkansas. Prysmian acquired the Paragould facility in 2018. The settlement resolves allegations disclosed by Prysmian under the Federal Acquisition Regulation (FAR)’s mandatory disclosure rule that Prysmian and prior owners of the Paragould facility had failed to conduct several required tests and, instead, had prepared and submitted to the United States falsified test results and false certifications of compliance.
In early 2021, a Defense Logistics Agency employee noticed discrepancies between the cable manufacturing and testing dates on test data submitted by Prysmian and refused to accept the test data, which triggered an internal investigation at Prysmian. As a result of its investigation, Prysmian terminated four employees involved in the alleged misconduct, including its quality manager, quality systems coordinator, quality engineer and product development supervisor. Prysmian also repurchased all suspect cable that had been shipped to its distributor and made a mandatory disclosure under the FAR. Prysmian cooperated with the United States’ subsequent investigation.
“Companies who do business with the United States must comply with their contractual commitments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable government contractors who knowingly fail to perform required services or misrepresent their performance of such services, including mandatory testing requirements.”
“The manufacturing of defective products, including ones intended for use in military vehicles, creates a significant risk to America’s warfighters,” said Acting Special Agent in Charge Ryan Settle of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southwest Field Office. “DCIS remains committed to working with our law enforcement partners and the Justice Department to hold accountable those who commit fraudulent activity that impacts the Department of Defense.”
DCIS and the Army Criminal Investigation Division investigated the case.
Senior Trial Counsel Alicia J. Bentley of the Civil Division handled the matter.
The claims against Prysmian resolved by the settlement are allegations only and there has been no determination of liability.
Settlement
Pittston Man Sentenced to 1.5 Years in Prison for Accessing Child Sexual Abuse MaterialRead the Press Release
BANGOR, Maine: A Pittston man was sentenced today in U.S. District Court in Bangor for accessing child pornography with intent to view.
Chief U.S. District Judge Lance E. Walker sentenced Robert Brandt, 39, to 18 months in prison to be followed by five years of supervised release. He was also ordered to pay $18,000 in restitution. Brandt pleaded guilty on January 26, 2024.
According to court records, between October 2022 and October 2023, Brandt accessed computer files that contained child sexual abuse material. He did so by frequenting a pornography-oriented website where he knew internet addresses for child pornography would be posted. He followed links until he reached the files he targeted. The images and videos he accessed showed children under the age of 12 begin sexually abused by adult men.
Homeland Security Investigations (HSI) investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – referred to in legal term as "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.
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Pell City Man Sentenced to 71 Months in Prison for Financial Fraud SchemeRead the Press Release
BIRMINGHAM, Ala – A Pell City man has been sentenced in a scheme to defraud more than 40 investors in his various companies out of more than $4.7 million, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
Chief U.S. District Court Judge R. David Proctor sentenced John Michael Golden, 48, to 71 months in prison followed by three years of supervised release. In April 2024, Golden pleaded guilty to one count of wire fraud.
According to the plea agreement and information provided at sentencing, Golden was the founder and owner of Wolf-Tek, LLC; MountainTop Timber, LLC; and DroneTek, Inc. Between January 2018 and at least October 2023, Golden devised a scheme to persuade individuals to invest in his companies. He made various misrepresentations to the investors, including telling them his businesses were about to be sold for millions of dollars to companies such as Amazon, he had timber leases and an ability to harvest timber for profit, and he had hundreds of pre-orders for drones that he simply needed capital to fulfill. Golden also gave some investors Promissory Notes in which he falsely promised lucrative returns on investments within a short period of time. Golden even defrauded a new victim eight days after originally signing a plea agreement.
To continue his scheme, Golden placated victims by sending them text messages falsely claiming that their money was available and would arrive on specific future dates. Golden subsequently had his bond revoked for contacting victims and making false promises to them regarding repayment. Golden ultimately defrauded investors in his companies out of more than $4.7 million. He used the funds to pay back prior investors and for personal expenses.
The Federal Bureau of Investigation investigated the case, with assistance from the Alabama Securities Commission. Assistant United States Attorney Ryan Rummage prosecuted the case.
Operation Clean Sweep II Indicts More than 25 Child Predators and Checked-in on More than 525 Sex OffendersRead the Press Release
TULSA, Okla. – Today, U.S. Attorney Clint Johnson announced that law enforcement has indicted 25 defendants, and several others have been identified and are still being investigated after the launch of Operation Clean Sweep II in April.
Operation Clean Sweep II (operation) aims to hold accountable child predators throughout the Northern District of Oklahoma. This operation is partnered with the Tornado Alley Child Exploitation and Trafficking Task Force (TACETT), created by Homeland Security Investigations (HSI). More than 15 federal, state, and tribal law enforcement partners helped prevent, identify, investigate, and ultimately prosecute child exploitation.
“Data collected by the National Center for Missing and Exploited Children shows a 300% increase of online coercion and enticements of minors across the United States,” said U.S. Attorney Clint Johnson. “My office is committed to working with law enforcement to help train, educate online safety, and actively pursue those who try to exploit children within the Northern District of Oklahoma.”
“The production and dissemination of child sexual abuse materials is a reprehensible offense that has no place in our society,” said HSI Dallas Special Agent in Charge Lester R. Hayes Jr. “HSI, working alongside our partners in the Tornado Alley Child Exploitation and Trafficking Task Force, will persist in our mission to apprehend those who seek to exploit our children via social media platforms.”
The National Center for Missing and Exploited Children (NCMEC) analyzed 476 missing children enticed online between 2020 and 2023. Fifty-nine percent of child victims were younger than 15 years old. The offender made their first contact with the child through social media and gaming sites. It was most common for an offender to travel to the child. However, older teens went to the offender. Statics showed they were provided travel tickets, used rideshare apps, and sent funds through a money app by the offender. While many victims were female children, there has also been an increase in online sextortion of teenage boys. Sextortion can happen without ever meeting an offender. NCMEC has more information about sextortion here: NCMEC.org/sextortion.
During this operation, the U.S. Marshal Service, the Muscogee Creek Nation Lighthorse Police Department, the Cherokee Nation Marshal Service, and the Mayes County Sheriff's Office conducted compliance checks on those required to register as a sex in the Northern District of Oklahoma. The Sex Offender Registration and Notification Act (SORNA) provides a comprehensive set of standards for sex offender registration and notification in the United States. More than 525 individuals were checked, and law enforcement found that over 50 individuals were not compliant with SORNA standards.
Operation Clean Sweep II is led by Assistant U.S. Attorneys Christopher J. Nassar and Ashley Robert. The law enforcement who participated in the operation are personnel from the HSI Tulsa office, the U.S. Marshal Service, the FBI, the Muscogee Creek Nation Lighthorse Police Department, the Cherokee Nation Marshal Service, the Oklahoma State Bureau of Investigations, the Oklahoma Bureau of Narcotics, the Tulsa Police Department, Rogers County Sheriff’s Office, the Texas Department of Public Safety, Broken Arrow Police Department, Owasso Police Department, Sapulpa Police Department, Bristow Police Department, Mayes County Sheriff's Office, and the U.S. Attorney’s Office.
If you or someone you know is a victim of child exploitation, confidential help is available. Resources and contact information for child exploitation are available through the National Center for Missing and Exploited Children.
Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. The U.S. Attorneys' Offices and Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Oneonta Man and Former Healthcare Executive Convicted of Mail Fraud for Stealing from his EmployerRead the Press Release
SYRACUSE, NEW YORK – Kevin Harrington, age 50, of Oneonta, New York, pled guilty to a federal indictment charging him with two counts of mail fraud, United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) announced.
At his change of plea, Harrington admitted that he was the former executive director at First Community Care of Bassett, LLC (an affiliate of Bassett Healthcare Network). During his employment, Harrington submitted fraudulent expense reports seeking reimbursement for the purchase of continuous positive airway pressure (CPAP) machines. As part of the scheme, Harrington provided invoices to his employer that falsely claimed he had paid thousands of dollars for medical equipment when no such equipment was ever purchased. Unaware that the invoices were fraudulent, First Community Care of Bassett issued and mailed checks to Harrington for reimbursement. In total, Harrington admitted to stealing over $150,000 from his former employer.
At sentencing on November 21, 2024, Harrington faces a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
FBI is investigating the case and Special Assistant U.S. Attorney Paul Tuck is prosecuting the case.
Ocean County Man Sentenced to 40 Years in Prison for Series of Violent Assaults on Members of Orthodox Jewish CommunityRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 480 months in prison for a series of violent assaults on members of the Orthodox Jewish community in and around Lakewood, New Jersey, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced today.
Dion Marsh, 29, of Manchester, New Jersey, previously pleaded guilty before U,S. District Judge Zahid N. Quraishi to a six-count information charging him with five counts of violating the federal Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act and one count of carjacking. With respect to the hate crimes violations, Marsh admitted to willfully causing bodily injury to five victims, and attempting to kill and cause injuries with dangerous weapons to four of them, all because they were Jewish.
U.S. Attorney Philip R. Sellinger“The threat from hate-fueled violence is a sad reality that impacts far too many people across our state and our nation. This defendant previously admitted to violently attacking five men, driving a car into four of them, stabbing one of them in the chest, and attempting to kill them simply because they were visibly identifiable as Orthodox Jews. The sentence imposed today holds Marsh accountable for his brutal and hate-filled rampage. We have no higher priority than protecting the civil rights of our New Jersey residents.”
“Enough is enough – hate-fueled attacks on the Orthodox Jewish community are abhorrent, unlawful and contrary to our values as Americans” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As we aggressively work to confront and eradicate antisemitic violence, we recognize the unique vulnerabilities faced by Orthodox Jews who are often targeted because of religious clothing and yarmulkes. The Justice Department will continue to vigorously investigate and prosecute senseless hate crimes and we will protect people exercising their constitutional right to practice their religion.”
“These victims were targeted by Marsh because of the way they were dressed, which is in accordance with their religious beliefs,” FBI – Newark Special Agent in Charge James E. Dennehy said. “They have that right in this country. Marsh, however, did not have the right and broke federal law, when he attacked, stabbed and carjacked innocent people. The rise of hate crimes in our communities has become a noxious disease. FBI Newark and our law enforcement partners will aggressively pursue anyone who violates someone’s constitutionally protected civil rights to simply be who they are. We ask anyone who thinks they've been a victim, or knows someone who is, to contact us so we can help them.”
According to documents filed in this case and statements made in court:
At 1:18 p.m. on April 8, 2022, Marsh forced a visibly identifiable Orthodox Jewish man out of his car in Lakewood, assaulting and injuring him in the process. Marsh took control of the man’s car and drove away. A surveillance video in the area captured Marsh arriving in the area prior to the carjacking and assault.
At 5:20 p.m., Marsh was in Lakewood driving a different car when he deliberately struck another visibly identifiable Orthodox Jewish man with the vehicle, attempting to kill the victim.
At 6:06 p.m., Marsh then used that second vehicle to deliberately strike another visibly identifiable Orthodox Jewish man, attempting to kill the victim and causing him to suffer several broken bones.
At 6:55 p.m., Marsh, once again driving the vehicle that he had stolen from the first victim, attempted to kill another visibly identifiable Orthodox Jewish man. Marsh used the stolen vehicle to deliberately strike the man, who was walking in Lakewood. Marsh got out of the vehicle and stabbed the man in the chest with a knife, causing the victim to suffer a stab wound and other injuries.
At 8:23 p.m., Marsh, still driving the vehicle that he had stolen from the first victim, used it to deliberately strike another visibly identifiable Orthodox Jewish man who was walking in nearby Jackson Township, New Jersey, attempting to kill the man and causing him to suffer several broken bones and internal injuries.
In addition to the prison term, Judge Quraishi sentenced Marsh to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; officers of the Lakewood Police Department, under the direction of Chief of Police Gregory H. Meyer; officers of the Jackson Township Police Department, under the direction of Chief of Police Matthew Kunz; officers of the Ocean County Sheriff’s Office, under the direction of Sheriff Michael G. Mastronardy; prosecutors and detectives of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko, Deputy Chief of the U.S. Attorney’s Office’s Civil Rights Division, with assistance from the Justice Department’s Civil Rights Division.
Nigerian National Sentenced to More Than 12 Years in Federal Prison for Cyber ScamsRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Bamidele Omotosho (42, Nigeria) to 12 years and 7 months in federal prison for conspiracy to commit wire fraud, conspiracy to commit money laundering, and computer intrusion. The court also ordered Omotosho to pay $2,051,108.70 in restitution to victims of his offenses. Omotosho entered a guilty plea on November 2, 2022.
According to court documents, in 2017 and 2018, Omotosho, a Nigerian citizen and resident, conspired with others to purchase stolen access credentials (i.e. usernames and passwords) and stolen personal identifying information (“PII”) of U.S. citizens, including names, dates of birth, and Social Security numbers, on xDedic, a darknet criminal marketplace that has since been seized and shut down. Omotosho, and a group of coconspirators he led, then used the stolen credentials and PII to commit at least six different fraudulent schemes totaling over $7.5 million in intended losses and over $2 million in actual losses.
For example, in June 2017, the conspiracy used that stolen information to hack into the Employees Retirement System of Texas (“ERS”) internet portal. Omotosho and his co-conspirators created fraudulent accounts and diverted retirement payments meant for legitimate ERS participants into accounts that the conspiracy controlled.
In 2017 and 2018, Omotosho and his co-conspirators purchased unauthorized access to computer networks for multiple accounting firms around the United States, including in the Western District of Texas (“WDTX”) and the Middle District of Florida (“MDFL”). With that access, Omotosho and his co-conspirators obtained PII for accounting firm clients, which they used to file fraudulent tax returns with the IRS.
During the same time period, Omotosho and his co-conspirators also engaged in identity theft, using stolen PII to apply for credit cards; romance fraud, in which they swindled vulnerable victims out of their savings; and a business e-mail compromise fraud against a pharmaceutical company that resulted in a loss of $250,000.
Omotosho and his co-conspirators laundered their proceeds by depositing them onto prepaid debit cards or into accounts at financial institutions that Omotosho and his co-conspirators had opened with stolen PII. In some instances they used their proceeds to purchase used vehicles, which they shipped to Nigeria for resale.
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the Texas Department of Public Safety’s Texas Rangers Public Integrity Unit. It is being jointly prosecuted by the United States Attorney’s Offices for the Middle District of Florida and the Western District of Texas by Assistant United States Attorneys Michael M. Gordon (MDFL) and Michael C. Galdo (WDTX). The Department of Justice’s Office of International Affairs also provided vital assistance in securing the extradition of Omotosho from the United Kingdom, where he was arrested.
Newport News fraudster pleads guilty after stealing service member’s identityRead the Press Release
NEWPORT NEWS, Va. – A Newport News woman pled guilty today to using a service member’s identity to commit bank fraud.
According to court documents, in late 2022, Ceara Smith, 25, was in contact with a victim, identified as “A.D.,” an active-duty member of the United States Air Force. Smith represented to A.D., who is a musician, that she was a music concert promoter and led A.D. to believe that he would have the opportunity to perform as an opening act at a concert. A.D. was instructed to pay a fee and to provide his personal information. When A.D. was unable to complete the fee payment using peer-to-peer payment applications, he provided his username and password for PayPal to allow her to make the payment. A.D. was never hired to perform at a concert as promised.
In 2022, Smith contacted A.D. again, claiming to be an ambassador for car rental company Turo, telling A.D. that if he completed a training program with Turo, they would both benefit financially. Smith offered to complete the training program on A.D.’s behalf. A.D. created an online account with Turo, submitted his debit card banking information, and uploaded a photograph of his driver license. A.D. then provided his Turo username and password to Smith, who told A.D. to expect a payment between $10,000 and $20,000. He never received any payment.
In January 2023, Smith submitted an online inquiry in A.D.’s name to purchase a 2015 Dodge Charger from Your Kar Company in Norfolk. Impersonating A.D., Smith attempted to secure funding to purchase the vehicle through the regular financing used by Your Kar Company and through secondary financing options but was unsuccessful. Instead, on Jan. 10, 2023, Smith electronically submitted to Langley Federal Credit Union (LFCU) a vehicle loan application in the amount of $25,005 using A.D.’s name and other personal identifying information (PII), including his social security number, driver license number, and date of birth.
At various times between Jan. 10 and Jan. 17, 2023, Smith contacted LCFU and Your Kar Company pretending to be A.D. or an LFCU employee. Smith repeatedly used deception and misrepresentations to fraudulently provide authorizations and to avoid having to appear in person for identity verification. The car loan application ultimately was approved by LFCU and received by Your Kar Company. Pretending to be A.D., Smith completed the paperwork for purchasing the 2015 Dodge Charger online and over the phone and, pretending to be A.D.’s sister, dropped off the paperwork and took possession of the car.
On Jan. 17, 2023, Smith applied for and received two credit cards and a debit card with LFCU in A.D.’s name. Smith immediately took an $800 cash advance on one of the cards and then used another card to make several purchases. She attempted to use another card to make a purchase, but the card was declined as suspected fraud. The following day, Smith impersonated A.D. to request that LFCU issue new credit cards. LFCU issued new cards as requested and, over the next two days, Smith used one of those credit cards to make several more purchases and to take two additional cash advances in the amounts of $500 and $400.
When that credit card was flagged for suspected fraud, Smith contacted LFCU to attempt to unblock the card and again impersonated both A.D. and LFCU employees. On Jan. 20, 2023, LFCU was able to contact the real A.D. and informed him that he may have been the victim of identity theft. On March 20, 2023, an LFCU collections representative attempted to contact A.D. at the phone number on file, which was used by Smith, because no payments had been made to either credit card issued in A.D.’s name. Smith, pretending to be A.D., expressed concern that the credit cards had been blocked and asked when they could be used again, claiming that A.D. was going to be deployed soon.
On June 23, 2023, LFCU repossessed the 2015 Dodge Charger after payments were not made on the loan obtained in A.D.’s name. LFCU provided permission for law enforcement to search the vehicle, and law enforcement recovered from the Dodge Charger, among other items, a debit card in A.D.’s name, receipts from purchases made on May 17 and 20, 2023, using a debit card in A.D.’s name, a FedEx package addressed to A.D. at an address in Hampton, and a photograph of Smith and an unknown individual.
Smith pleaded guilty to bank fraud and aggravated identity theft and is scheduled to be sentenced on Dec. 3. She faces a maximum penalty of 30 years in prison for bank fraud and a mandatory term of two years in prison for aggravated identity theft, to be served consecutively with any other term of imprisonment imposed. 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; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea.
Special Assistant U.S. Attorney Alyson C. Yates, an Assistant Attorney General with the Virginia Attorney General’s Office, is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:24-cr-45.
New Jersey Man Sentenced for Series of Violent Assaults on Members of the Orthodox Jewish CommunityRead the Press Release
A New Jersey man was sentenced today to 40 years in prison to be followed by five years of supervised release for committing a series of bias-motivated violent assaults on members of the Orthodox Jewish community in and around Lakewood, New Jersey.
Dion Marsh, 29, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to an information charging him with five counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act and one count of carjacking. With respect to the Shepard Byrd Act violations, Marsh admitted to willfully causing bodily injury to five victims and attempting to kill and cause injuries with dangerous weapons to four of the victims because they are Jewish.
“Enough is enough – hate-fueled attacks on the Orthodox Jewish community are abhorrent, unlawful and contrary to our values as Americans” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As we aggressively work to confront and eradicate antisemitic violence, we recognize the unique vulnerabilities faced by Orthodox Jews who are often targeted because of religious clothing and yarmulkes. The Justice Department will continue to vigorously investigate and prosecute senseless hate crimes and we will protect people exercising their constitutional right to practice their religion.”
“The threat from hate-fueled violence is a sad reality that impacts far too many people across our state and our nation,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “This defendant previously admitted to violently attacking five men, driving a car into four of them, stabbing one of them in the chest, and attempting to kill them simply because they were visibly identifiable as Orthodox Jews. The sentence imposed today holds Marsh accountable for his brutal and hate-filled rampage. We have no higher priority than protecting the civil rights of our New Jersey residents.”
“These victims were targeted by Marsh because of the way they were dressed, which is in accordance with their religious beliefs,” said Special Agent in Charge James E. Dennehy of the FBI Newark Field Office. “They have that right in this country. Marsh, however, did not have the right and broke federal law, when he attacked, stabbed and carjacked innocent people. The rise of hate crimes in our communities has become a noxious disease. FBI Newark and our law enforcement partners will aggressively pursue anyone who violates someone’s constitutionally protected civil rights to simply be who they are. We ask anyone who thinks they've been a victim, or knows someone who is, to contact us so we can help them.”
According to court documents and statements made in court, on April 8, 2022, Marsh carried out a series of violent assaults on members of the Orthodox Jewish Community in and around Lakewood. Each of Marsh’s victims were attired in traditional garments worn by members of the Orthodox Jewish community and were assaulted because they were visibly identifiable Orthodox Jews.
Specifically, at 1:18 p.m. on April 8, 2022, Marsh forced a visibly identifiable Orthodox Jewish man out of his car in Lakewood, assaulting and injuring him. Marsh took control of the man’s car and drove away.
At 5:20 p.m., Marsh was in Lakewood driving a different car when he deliberately struck another visibly identifiable Orthodox Jewish man with the vehicle, attempting to kill the victim.
At 6:06 p.m., Marsh used that second vehicle to deliberately strike another visibly identifiable Orthodox Jewish man, attempting to kill the victim and causing him to suffer several broken bones.
At 6:55 p.m., Marsh, once again driving the vehicle that he had stolen from the first victim, attempted to kill another visibly identifiable Orthodox Jewish man who was walking in Lakewood by deliberately striking him with the vehicle. Marsh got out of the vehicle and stabbed the man in the chest with a knife, causing the victim to suffer a stab wound and other injuries.
At 8:23 p.m., Marsh, still driving the vehicle that he had stolen from the first victim, used it to deliberately strike another visibly identifiable Orthodox Jewish man who was walking in nearby Jackson Township, New Jersey, attempting to kill the man and causing him to suffer several broken bones and internal injuries.
The FBI Newark Field Office, Red Bank Resident Agency, Lakewood Police Department, Jackson Township Police Department, Ocean County Sheriff’s Office, Ocean County Prosecutor’s Office and New Jersey State Police investigated the case.
Assistant U.S. Attorney and Deputy Chief of the Civil Rights Division R. Joseph Gribko for the District of New Jersey prosecuted the case with assistance from the Justice Department’s Civil Rights Division.
New Jersey Man Pleads Guilty to Robbing Two U.S. Postal Carriers at Knife Point, Burglarizing Two Post OfficesRead the Press Release
PORTLAND, Maine: An Orange, New Jersey man pleaded guilty today in U.S. District Court in Portland to burglarizing two Maine post offices and robbing at knifepoint two U.S. Postal Service (USPS) letter carriers.
According to court records, during a one-week period in January 2024, Winston McLeod, 30, and a coconspirator broke into the Paris and North Monmouth post offices and stole money order printers, mail, computers, post office box keys, and other items. The two men then robbed two Lewiston postal carriers in quick succession on January 20, 2024, threatening to stab each of them with a knife unless they turned over their postal keys.
The two men were arrested by law enforcement following a traffic stop. A search of the occupants and the vehicle, a white Jeep that matched a vehicle seen in videos from each crime scene, revealed a black butterfly knife, black ski mask, large sums of cash, and several checks determined to have been stolen from the Paris post office. When responding to the Paris location, Postal Inspectors also found two iPhones in the snow directly beneath the broken window used to access the post office. Investigators were able to identify McLeod through a photo of him on the lock screen of one of the phones. Law enforcement recovered additional stolen items at and near the address where the two men had been staying.
McLeod faces up to five years in prison and a maximum fine of $250,000 on one charge of conspiracy to rob postal carriers and burgle a U.S. Post Office and two charges of burglary of a post office. He faces up to 25 years imprisonment and a maximum fine of $250,000 on each of two charges of robbery of a postal carrier. Any sentence will be followed by up to five years of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service investigated the case, with assistance from FBI’s Safe Streets Task Force and the Rumford, Lewiston, Paris and Monmouth police departments.
“The U.S. Postal Inspection Service is committed to keeping the U.S. Mail, its employees, and customers safe. Today’s plea is the culmination of exceptional teamwork between our local and federal law enforcement partners. The swift response by responding officers and their ongoing support were instrumental in making this a successful investigation,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Ensuring the safety of our employees is a top priority, Postal Inspectors will continue to thoroughly investigate any robberies of our employees and burglaries of our facilities.”
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Updated 07/23/24 to correct Winston McLeod's current age
New Castle Men Plead Guilty in Puerto Rico/Western Pennsylvania Region Drug Trafficking OperationRead the Press Release
PITTSBURGH, Pa. – Two residents of New Castle, Pennsylvania pleaded guilty to charges of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today. Kevin Tulla Torres, age 28, pleaded guilty to distributing and conspiring to distribute cocaine. Luis Rivera Otero, age 37, pleaded guilty to conspiring to distribute cocaine. Tulla Torres, with the help of Rivera Otero, managed a drug trafficking operation that sold drugs in Western Pennsylvania, specifically in the New Castle/Lawrence County area. The arrests of Tulla Torres, Rivera Otero, and another co-conspirator, as well as 14 others charged by separate Indictment, were the result of a 13-month investigation into drug trafficking in and around Lawrence County.
According to information presented to the Court, members of the group utilized the United States Postal Service to receive drug shipments from a supplier in Puerto Rico. Tulla Torres, Rivera Otero, and others then worked together to sell the cocaine as part of an ongoing criminal drug-trafficking conspiracy within Western Pennsylvania.
With regard to Tulla Torres, the law provides for a maximum total sentence of life in prison, a fine of up to $10,000,000, or both for the most serious offense. The total maximum sentence for Rivera Otero is not more than 40 years in prison and a fine of up to $5,000,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of each defendant.
Assistant United States Attorney Carl J. Spindler is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration conducted the investigation leading to the Indictments in this case in close collaboration with the Lawrence County High Intensity Drug Trafficking Area (HIDTA) Task Force, United States Postal Inspection Service, Internal Revenue Service – Criminal Investigations, Federal Bureau of Investigation, New Castle City Police Department, Ellwood City Police Department, Pennsylvania Office of Attorney General, United States Department of Agriculture, Union Township Police Department, Pittsburgh Bureau of Police, Homeland Security Investigations, and Pennsylvania State Police.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Lawrence County is one of six western Pennsylvania counties officially designated as a High Intensity Drug Trafficking Area by the White House’s Office of National Drug Control Policy. The county received its HIDTA designation in July 2022, allowing it to receive dedicated federal resources to coordinate federal, state, and local governments in fighting drug trafficking and abuse.
Nevada Man Arrested and Indicted for Threatening to Murder Federal Officials and State EmployeesRead the Press Release
A grand jury returned a 22-count indictment charging Spencer Christjencody Gear, 32, of Las Vegas, Nevada, with threatening to assault and murder federal officials, including federal judges, and state employees in Washington, D.C., New York, New Jersey and Montana.
“The citizens we rely on to serve the public must be able to do their jobs without fearing for their lives,” said Attorney General Merrick B. Garland. “The Justice Department has no tolerance for acts and threats of violence targeting public servants, and we will stop at nothing to find and bring to justice those responsible.”
“The FBI will not tolerate individuals who threaten government officials for doing their jobs and who create a climate of fear,” said Executive Assistant Director Robert Wells of the FBI National Security Branch. “As this case demonstrates, we will work with our partners to investigate and hold accountable all those who threaten or interfere with government officials as they carry out their duties.”
According to court documents, between Nov. 30, 2023, and July 7, Gear made threatening phone calls and sent a threatening email to assault and murder eight federal officials with intent to impede, intimidate and interfere with the officials while engaged in the performance of official duties, and with intent to retaliate against the officials on account of the performance of official duties. Gear also threatened three state employees.
Gear was arrested and made his initial court appearance today. He is charged with 10 counts of threatening a federal official and 12 counts of transmitting a communication containing a threat to injure. A jury trial has been scheduled for Sept. 24.
If convicted, Gear faces a maximum penalty of 10 years for each count of threatening a federal official and five years for each count of transmitting a threat to injure.
The FBI, United States Marshals Service and U.S. Capitol Police are investigating the case.
Assistant U.S. Attorney Jacob Operskalski for the District of Nevada and Trial Attorney Jacob Warren of the National Security Division’s Counterterrorism Section 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.
Nashua Felon Pleads Guilty to the Illegal Possession of Firearms and AmmunitionRead the Press Release
CONCORD – A Nashua man pleaded guilty today in federal court to firearm offenses, U.S. Attorney Jane E. Young announces.
Robert Reidy, 32, pleaded guilty to one count of possession of firearms and ammunition by a prohibited person and one count of possession of unregistered firearms. U.S. District Court Steven McAuliffe scheduled sentencing for October 29, 2024.
On December 5, 2023, members of the Nashua Police Department arrived at Reidy’s residence to execute a state search warrant. Reidy refused multiple commands to exit his residence, and ultimately surrendered after chemical munitions were deployed into his residence. Reidy admitted to possessing “ghost guns.” Law enforcement ultimately located one short-barreled AR-style rifle with a silencer threaded onto the barrel, three additional disassembled firearms hidden in the attic that all appeared to be privately manufactured, as well as 160 rounds of ammunition. Reidy was prohibited from possessing firearms and ammunition by virtue of a prior felony conviction for Escape from a Penal Institution in 2017. Reidy also did not register the short-barreled rifle or silencer as required by the National Firearm Act.
The charge of possession of firearms and ammunition by a prohibited person provides for a maximum sentence of up to 15 years in prison, up to a 3-year term of supervised release, and a fine of up to $250,000. The charge of possession of unregistered firearms provides for a maximum sentence of up to 10 years in prison, up to a 3-year term of supervised release, and a fine of up to $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Nashua Police Department led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorney Tiffany Scanlon is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Missouri-Based Defense Department Contractor Sentenced for FraudRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Tuesday sentenced a former Defense Department contractor from St. Charles County, Missouri to five years of probation and fined him $50,000 for illegally obtaining parts for the military overseas.
David Murar, 73, has already repaid $166,710.
Murar undercut domestic suppliers by obtaining parts from China and other foreign countries. He violated the law by providing diagrams of necessary parts and other “military critical technical data,” which was restricted and protected information, to foreign individuals and/or entities to obtain those parts. He did so despite signing agreements not to provide access to that data to anyone other than his employees or other eligible persons and comply with U.S. export control laws and regulations. He also agreed to comply with laws and other restrictions requiring certain items purchased by the Defense Department to be domestically sourced.
The parts were sent to his home. Murar then discarded their original packaging and repackaged them to conceal their origin overseas, his plea says.
Murar also fraudulently used his wife’s name to gain a competitive advantage for one of his companies by claiming it was a woman-owned small business, when he was really the actual owner and operator.
From roughly April through October of 2022, Murar bid on and received at least nine U.S. government contracts by way of fraudulent misrepresentations. Murar fraudulently obtained contracts worth at least $333,465 for parts including nuts, bolts, washers, sleeves, and tools. Murar owned three businesses: Midwest Metals, St. Louis Loft Metals, and Florence Metals.
In a statement read to the court, the Defense Logistics Agency said it must now obtain replacements from responsible contractors while the military services wait for parts to support their weapon systems. “It is, of course, always possible that the non-conforming parts make their way into weapon systems before DLA can identify them, which may affect safety and military readiness,” the statement said. The agency said it does “not believe there is a way to quantify the harm, but the impacts to national security are nonetheless tangible and real.”
Assistant U.S. Attorney Cort VanOstran said in court that Murar’s crime “risked potential for danger to the United States Armed Forces.”
Murar pleaded guilty in February in U.S. District Court in St. Louis to one felony count of conspiracy to commit wire fraud. He had already been suspended from government contracting.
“Today’s outcome demonstrates the commitment of the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), and our partners, to safeguard the DoD supply chain and ensure the safety of the warfighter,” stated Acting Special Agent in Charge Ryan Settle, DCIS Southwest Field Office. “DCIS will continue to pursue companies who supply substandard products, circumvent export control laws, and fraudulently represent products as U.S. made. These violations put the warfighter at risk and seriously undermine military readiness and security.”
The General Services Administration Office of Inspector General, the Department of Defense Office of Inspector General's Defense Criminal Investigative Service, the Department of Commerce’s Office of Export Enforcement, the U.S. Air Force Office of Special Investigations, the U.S. Army Criminal Investigation Division, Fraud Field Office and Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Matthew Drake and Cort VanOstran prosecuted the case.
Minneapolis Man Pleads Guilty to Bombing a Minneapolis Hair SalonRead the Press Release
MINNEAPOLIS – A Minneapolis man has pleaded guilty for maliciously using explosives to damage a Minneapolis hair salon, announced United States Attorney Andrew M. Luger.
According to court documents, on November 20, 2022, at approximately 2:49 AM, a homemade explosive device detonated at a hair salon located in Minneapolis, causing damage to the exterior and interior of the business. A Ring video camera recording from the salon showed an adult male, later identified as Michael Allen Francisco, 59, placing the explosive device on the window of the salon. Francisco fled the area in a vehicle after the device detonated.
Almost a year later, on November 6, 2023, video footage captured Francisco vandalizing the same hair salon. Francisco threw a landscaping rock through the window of the salon, causing the window to break, before fleeing the scene. Investigators were able to collect DNA and other evidence that connected Francisco to both incidents. On March 28, 2024, officers and agents executed a search warrant at Francisco’s residence. Law enforcement recovered the jacket Francisco was wearing on November 6, 2023, during the brick incident; multiple explosive components including suspected energetic powders and fuses; a .32 caliber revolver, with ammunition; and methamphetamine.
Francisco pleaded guilty today in U.S. District Court before Judge Ann D. Montgomery to one count of malicious use of explosive materials to damage and destroy, by means of fire and explosives, a Minneapolis-based property engaged in interstate commerce by means of an explosive device.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Bradley M. Endicott is prosecuting the case.
Milwaukee Man Pleads Guilty to Attempted Armed CarjackingRead the Press Release
MINNEAPOLIS – A Milwaukee man has pleaded guilty to the attempted armed carjacking of an elderly victim, announced United States Attorney Andrew M. Luger.
According to court documents, on September 1, 2023, William Jones, 32, attempted to carjack an elderly victim at gunpoint in south Minneapolis. Jones, and a co-conspirator who served as the get-away driver, drove to a market near the intersection of Chicago and Franklin Avenues. Jones approached the 79-year-old victim, who was sitting in the driver’s seat of his vehicle, placed a gun against the victim’s head and demanded the keys. The victim grabbed Jones’s gun and as the two wrestled over the gun, Jones discharged the gun, injuring the victim’s finger. The victim ran away after being injured and Jones took the victim’s keys and cell phone. Jones tried to start the victim’s vehicle but, unbeknownst to Jones, the keys he had taken from the victim did not include the key to the vehicle. Jones fled the scene in the get-away vehicle that was parked across the street. Jones discarded his gun and the victim’s cell phone in an alley several blocks away.
Jones pleaded guilty today in U.S. District Court before Judge David S. Doty to one count of attempted carjacking. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI And the Minneapolis Police Department.
Assistant U.S. Attorney Michael P. McBride is prosecuting the case.McKees Rocks Resident Sentenced to Prison for Violation of Federal Firearm LawRead the Press Release
PITTSBURGH, Pa. – A resident of McKees Rocks, Pennsylvania, was sentenced in federal court on July 23, 2024, to 51 months in prison, to be followed by three years of supervised release, after pleading guilty to violating a federal firearms law, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Darnell Maurice Manson, 23.
According to information presented to the Court, Manson possessed a firearm after being convicted of several felonies for conduct that occurred in or around October 2018 in the Allegheny County Court of Common Pleas. Under federal law, a convicted felon is prohibited from possessing a firearm or ammunition.
On or about August 8, 2021, pursuant to a search warrant following a traffic stop, Brentwood Borough Police Department discovered a Smith & Wesson Model 9 M&P Shield, 9mm caliber pistol, and 9mm ammunition, as well as stamp gangs of heroin in the vehicle that Mason was driving.
On February 2, 2023, a federal grand jury in Pittsburgh indicted Manson for this conduct. On October 4, 2023, Manson pleaded guilty to being a felon in possession of a firearm, which is a violation of federal firearms law.
Manson’s federal sentence will be imposed consecutively to his state sentence of 24 months for violating his conditions of state parole.
Assistant United States Attorney Nicole A. Stockey prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Brentwood Borough Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Manson.
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.