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Tuesday 23 July 2024
Boston Man Arrested on Firearm Smuggling ChargesRead the Press Release
BOSTON – A Boston man was arrested and charged last week in federal court in Boston in connection with illegal firearm smuggling between the United States and the Dominican Republic.
Alexis Lara Herrera, 26, was charged with one count of smuggling goods from the United States; aiding and abetting. Herrera made an initial appearance in federal court in Boston last Friday and pleaded not guilty. He is currently being held in federal custody pending trial.
According to the charging documents, on or about March 18, 2023, local law enforcement in the Port of Haina in the Dominican Republic conducted security examinations of international freight in the port. In their search of a shipping container from Brooklyn, New York, they discovered a shipping manifest indicating the container contained household goods. During a search of the container, four Glock firearms and 500 rounds of ammunition were found inside an air conditioner. Further investigation revealed that the shipping container originated in Boston.
It is alleged that Herrera purchased four Glock firearms seized in the Dominican Republic from federally licensed firearms dealers. Herrera was also allegedly in communication with multiple co-conspirators throughout the shipment. A search of his phone allegedly showed his engagement in firearms smuggling, including texts and a photo of multiple guns. Additional evidence recovered from the forensics of Herrera’s cell phone indicated that he allegedly discussed numerous shipments of firearms to the Dominican Republic, including one in June of 2023 after authorities seized this shipment.
The charge of smuggling goods from the United States; aiding and abetting provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations, in New England; and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Boston Police Department. Assistant U.S. Attorney Luke Goldworm of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Benton Harbor Armed Felon, Prosecuted Under Summer Gun Violence Program, Sentenced to 88 Months in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Darell William Craft, Jr., 30, of Benton Harbor, was sentenced to 88 months in federal prison for possessing a stolen firearm with a high-capacity magazine as a convicted felon, while on probation for a prior conviction. At sentencing, U.S. District Court Judge Paul Maloney imposed a sentence above the advisory sentencing range, adding that Craft presented “a major risk to the law-abiding public.”
Craft was charged last October under Safe Summer 2023, a gun-violence enforcement program under which the U.S. Attorney’s Office committed to prosecute all firearms offenders who possess crime guns (that is, guns previously fired in the commission of a crime).
“Craft exhibited a stunning disregard for human life, and today’s sentence reflects the seriousness of his crimes,” said U.S. Attorney Mark Totten. “No level of violence is acceptable. The people of Benton Harbor, like people in every community across Michigan, deserve the right to walk their streets, relax in their homes, and carry out their lives without the fear of shots fired. We will continue to focus our efforts on people like Darell Craft who are driving violence in their communities.”
In July 2023, following a series of apparently related shootings, police approached a parked car with Craft and his girlfriend inside. They searched it and found a loaded pistol with a high-capacity magazine. Police also searched Craft’s girlfriend’s phone and found videos of Craft holding and pointing the pistol. Ballistics testing showed the pistol had been used in three recent shootings.
U.S. Attorney Mark Totten announced the Safe Summer 2024 program on May 23, 2024 in a press release and press conferences in Benton Harbor, Kalamazoo, Lansing, and Grand Rapids. Under this program, the U.S. Attorney’s Office will prosecute all cases that satisfy two criteria. First, the case must involve a federal firearms offense. The two most common offenses are felon in possession, which prohibits previously convicted felons from possessing a gun, and possession of a machine gun, which generally prohibits persons from possessing fully automatic guns. Second, the case must involve a crime gun, which is any gun previously fired in the commission of a crime. These criteria focus federal efforts on the few individuals driving gun violence in their communities.
Gun violence is an acute problem across the United States. In 2021, for the first time ever, firearm-related injuries became the leading cause of death for American children, ages birth to 19, according to the New England Journal of Medicine (see also here). According to the Centers for Disease Control and Prevention, the U.S. firearm homicide rate in 2021 was the highest documented since 1993. While the numbers have declined since 2021, they remain high.
Moreover, while gun violence has the potential to impact everyone, recent studies show that gun violence has a disparate impact on people of color. A study in the Journal of the American Medical Association shows that the disparity in shooting injuries among children before and after the pandemic in four major cities approximately tripled as between white children and children of color (Black, Hispanic, Asian).
This case was investigated by ATF, the Federal Bureau of Investigation, the Michigan State Police, the Benton Township Police Department, and the Benton Harbor Department of Public Safety. It was prosecuted by Patrick Castle, Assistant U.S. Attorney, working with Victoria Pedri, 2L student at the University of Michigan Law School.
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 Justice.gov/PSN.
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Abington Man Sentenced to Five Years in Prison for Oxycodone ConspiracyRead the Press Release
BOSTON – An Abington man was sentenced on June 18th in federal court in Boston for conspiring to distribute oxycodone pills.
Kenneth Veiga, 32, was sentenced by U.S. District Court Judge Denise J. Casper to 60 months in prison to be followed by three years of supervised release. In April 2024, Viega pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone pills.
Between November 2022 and May 2023, intercepted communications revealed that Veiga and others were involved in an oxycodone drug trafficking organization. During a search of Veiga’s previous residence in July 2023, oxycodone pills along with a polymer-80 9 mm pistol and nine rounds of commercially manufactured ammunition were seized. Additionally, fentanyl pills, oxycodone pills and approximately $58,000 were seized during a separate search of Veiga’s current apartment.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives; United States Coast Guard Investigative Service; Barnstable County Sheriff’s Office; and the Barnstable, Dennis, Bourne, Falmouth, Mashpee, Yarmouth and Sandwich Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Criminal Division is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Monday 22 July 2024
Woodbridge man convicted again for possessing child sexual abuse materialRead the Press Release
ALEXANDRIA, Va. – A federal judge convicted a Woodbridge man today on charges of receipt and possession of child sexual abuse material (CSAM).
According to court records and evidence presented at trial, on April 23, 2023, agents with Homeland Security Investigations (HSI) executed a federal search warrant at the residence of Matthew Scott Rocco, 38. At the time of the search, Rocco was on federal supervised release for a 2017 conviction in the Eastern District of Virginia for possession of CSAM. HSI agents and officers from the United States Probation Department encountered Rocco on the driveway exiting the garage of the residence and located a cellphone in his back pocket.
The phone was seized and manually and forensically searched. In the notes section of the phone, darknet addresses were listed, most of which providing links to child pornography. The phone contained a download history in the “My Files DB” database showing filenames indicative of CSAM and thumbnail images of Rocco’s personal documents, such as payroll records and CSAM among other files. A folder titled “Balalaika_1,” contained ten videos, downloaded on Feb. 16 and 17, 2023, each depicting minors engaged in sexually explicit conduct.
The phone kept a history of what videos had been played that included files indicative of CSAM. The files Rocco accessed included CSAM ranging from Jan. 23, 2023, to April 21, 2023, two days before the date of the federal search. The search also revealed that several files with names indicative of CSAM were viewed on the phone using an external drive.
Rocco faces a mandatory minimum of 15 years and up to 40 years in prison when sentenced on Oct. 31. 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, and Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Michael S. Nachmanoff returned the verdict.
Assistant U.S. Attorney Alessandra Serano and Special Assistant U.S. Attorney Nadia Prinz, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-25.
Westfield Woman Sentenced for Making Hoax Bomb Threat Against Boston Children's HospitalRead the Press Release
BOSTON – A Westfield woman was sentenced on July 18, 2024 in federal court in Boston for calling in a hoax bomb threat against Boston Children’s Hospital.
Catherine Leavy, 38, was sentenced today by U.S. District Court Judge Leo T. Sorokin to three years’ probation. In September 2023, Leavy pleaded guilty to one count of making a false bomb threat and one count of intentionally conveying false or misleading information that a bomb was on the way to Boston Children’s Hospital.
In August 2022, law enforcement began monitoring threats made against Boston Children’s Hospital and its employees. Among the wide range of healthcare services it provides, Boston Children’s Hospital is home to the Gender Multispecialty Service (GeMS) program – a healthcare program focused on gender-diverse and transgender adolescents.
On Aug. 30, 2022, Boston Children’s Hospital received a telephonic bomb threat in which the caller said, “There is a bomb on the way to the hospital, you better evacuate everybody you sickos.” As a result of the call, the hospital and surrounding area was placed on lockdown status and a bomb squad was dispatched. An investigation determined that there were no explosive devices located at the hospital. Subscriber and call detail records and location information for the phone number that called in the threat determined that the phone number was subscribed in Leavy’s name. In addition, cell tower data indicated the phone was nearby Leavy’s residence at the time the bomb threat was made.
During a search of Leavy’s residence on Sept. 15, 2022, the phone used to make the threat was recovered. According to court records, in an on-scene interview with law enforcement, Leavy expressed disapproval of Boston Children’s Hospital on multiple occasions. Leavy also admitted that she called in the threat to Boston Children’s Hospital on Aug. 30, 2022, but stated that she had no plan or intention to actually bomb the hospital.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement. Valuable assistance was provided by the Westfield Police Department. Assistant U.S. Attorney Jared C. Dolan, Deputy Chief of the National Security Unit, prosecuted the case.
Waterbury Man Sentenced to Federal Prison for Role in Drug Trafficking RingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that OSCAR PENA-CRESPO, also known as “Boti,” 29, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for trafficking narcotics.
According to court documents and statements made in court, the FBI’s Waterbury Safe Streets Gang Task Force and other law enforcement agencies investigated two drug trafficking organizations based in the city of Waterbury. One organization operated in the area of William Street and the other operated in the area of Maple Avenue. The investigation, which included court-authorized wiretaps on multiple phones, video surveillance, GPS tracking of vehicles, and numerous controlled purchases of narcotics, revealed that the two organizations distributed cocaine, crack, and fentanyl through a network of sellers. The organizations shared sources of supply and worked together to further their operations.
Pena-Crespo coordinated the distribution of narcotics for the Maple Avenue-based organization. Between January and June 2023, investigators conducted multiple controlled purchases of fentanyl and crack cocaine from Pena-Crespo.
Seventeen individuals were charged with federal offenses as a result of the investigation. Pena-Crespo and several codefendants were arrested on November 29, 2023. In association with the arrests, investigators executed multiple search warrants and seized approximately 700 grams of crack cocaine, more than 900 vials (“caps”) of crack, approximately 200 grams of loose fentanyl, more than 1,600 dose bags of fentanyl/heroin, two stolen firearms, numerous rounds of ammunition, and more than $39,000 in cash.
Pena-Crespo has been detained since his arrest. On April 3, 2024, he pleaded guilty to conspiracy to distribute and to possess with intent to distribute controlled substances.
The FBI’s Waterbury Safe Streets Gang Task includes members from the FBI, the Waterbury Police Department, the Naugatuck Police Department, and the Connecticut Department of Correction. The DEA, U.S. Marshals Service, Homeland Security Investigations (HSI), Connecticut State Police, Wolcott Police Department, and Meriden Police Department have assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Natasha Freismuth and Shan Patel through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney Avery thanked the Waterbury State Attorney’s Office for its cooperation in the investigation and prosecution of this case.
U.S. Attorney Announces Non-Prosecution Agreement with International Bus Parts Supplier CBMRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Christopher A. Scharf, the Special Agent in Charge of the Northeast Region of the U.S. Department of Transportation, Office of the Inspector General (“DOT-OIG”); and Daniel Cort, the Inspector General of the Metropolitan Transportation Authority (“MTA-IG”), announced that international bus parts supplier CBM entered into a non-prosecution agreement (the “NPA”) with the U.S. Attorney’s Office. Under the NPA, CBM agreed to pay significant monetary penalties for engaging in a scheme to defraud U.S. transit authority customers through false and misleading statements about the sources of contracted-for bus parts during the period from approximately 2010 to April 2021. Specifically, the NPA requires CBM to forfeit $463,243.41 to the United States, representing its profits from the scheme, and pay a fine of $1,500,000. In addition, CBM has agreed to pay restitution to victims who submit claims and to revert unclaimed funds up to $438,859.52 to the Crime Victims Fund, administered by the Department of Justice’s Office for Victims of Crime. The NPA also requires that for at least two years from the date of the agreement, CBM will further cooperate with the United States, self-report any future violations of U.S. law, and continue its ongoing efforts to implement and maintain an adequate compliance program. In the event that CBM violates the NPA, the U.S. Attorney’s Office may prosecute CBM for any newly discovered criminal activity and for the conduct that gives rise to the NPA.
This corporate action reflects a careful weighing of factors relevant to the appropriate corporate resolution. The NPA recognizes that, although CBM’s serious misconduct was reported to the U.S. Attorney’s Office before CBM self-disclosed it, (i) CBM US cooperated extensively with the U.S. Attorney’s Office, including through detailed disclosures and accountings of conduct not already known when CBM’s cooperation began; (ii) the most serious wrongdoing at CBM was limited to two individuals, though they were at the highest levels of the company; (iii) CBM has no history of criminal conduct, including any resolved through prior NPAs or deferred prosecution agreements; (iv) CBM has undertaken extensive remedial measures to ensure that similar conduct does not occur or go undetected in the future; and (v) CBM has taken full responsibility and agreed to make full restitution to all victims that seek compensation.
U.S. Attorney Damian Williams said: “CBM, primarily through the actions of a limited number of managers outside of the United States, represented to U.S. transit authorities that CBM was providing bus parts from specific suppliers and under specific brand names. Fortunately, none of the transactions at issue involved parts that bear on the safety of any affected buses. Since this Office’s investigation came to CBM’s attention, the company has cooperated fully and taken significant and commendable steps to remediate the institutional failures that allowed this situation to occur in the first place. But this NPA also ensures that CBM is held financially accountable for its conduct and that victims will be made whole. It should serve as a reminder to all companies that it will lose its profits, and then some, when this Office becomes aware of business practices like CBM’s in this case.”
DOT-OIG Special Agent in Charge Christopher A. Scharf said: “This NPA is an important step in remedying the harm caused by CBM when it misled U.S. transit authority customers. DOT OIG remains committed to holding transportation industry suppliers accountable for their actions that compromise the integrity of contracted goods and services.”
MTA Inspector General Daniel Cort said: "The MTA must have faith in the integrity of its supply chain, and any breach of that trust is unacceptable. I thank our federal partners for holding vendors accountable for deceptive behavior."
As part of the NPA, CBM agreed to a statement of facts describing its conduct and the remedial measures that it took in response to learning of that conduct.
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Mr. Williams praised the outstanding investigative work of the DOT-OIG and thanked the MTA-IG for its assistance.
This matter is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Frank Balsamello is in charge of the matter.
Two Southern Utah Men Sentenced in Cougar Hunting Crime in Violation of the Lacey ActRead the Press Release
SALT LAKE CITY, Utah – A U.S. District Court Judge sentenced the final defendant today in a crime that involved a Utah licensed big game outfitter and his employee/cougar hunting guide in the District of Utah. The two defendants were sentenced separately for their involvement in a crime that defrauded hunters by leading canned hunts for commercial gain, in violation of the Lacey Act.
Wade Lemon, 63, of Holden, Utah, was sentenced July 18, 2024, to two months’ imprisonment, ordered by the court to pay a $10,500 fine, and a one-year commercial ban on federal land. According to court documents, and statements made during his change of plea hearing, Lemon admitted to illegally participating in “canned” mountain lion hunts on January 24, 2021 and December 15, 2020 on Federal BLM and National Forest Service land. Utah law prohibits “canned hunts” of mountain lions. A canned hunt means that a cougar is treed, cornered, held at bay or its ability to escape is otherwise restricted to allow a person who was not a member of the initial hunting party to arrive and take the cougar. The federal Lacey Act prohibits selling in interstate commerce any wildlife taken or sold in violation of state law. The Lacey Act defines the “sale” of wildlife to include providing guiding or outfitting services.
Lemon owns and operates Wade Lemon Hunting based in Holden, Utah. Lemon advertises his business on his website and boasts nearly 100% success rates yearly. However, Lemon has cheated in illegal canned cougar hunts and has defrauded hunters.
Kacey Alan Yardley, 47, of Enoch, Utah, was sentenced July 22, 2024, to six months’ bench probation, after he pleaded guilty to his involvement in an illegal canned cougar hunt with Lemon. As part of his probationary terms, Yardley is banned from federal land for commercial purposes. According to court documents, and statements made at his change of plea hearing, Yardley worked for Lemon as a cougar hunting guide and houndsman. On December 15, 2020, while on the Bureau of Land Management (BLM) land, Yardley admitted that during a canned hunt, a cougar was held at bay and its ability to escape was otherwise restricted to allow a hunter who was not a member of the initial hunting party to arrive and attempt to take the cougar.
“This is a unique and important case because hunting is an important part of Utah’s culture,” said U.S. Attorney Trina A. Higgins of the District of Utah. “Canned hunts are illegal because they create an unfair advantage and can lead to inhumane treatment of the animals. It is also unfair to hunters who paid thousands of dollars for a guide and had no idea that they were participating in a canned hunt. My office and our law enforcement partners take these crimes seriously because they negatively impact our state and the hunting community.”
“The Forest Service issues special use permits to many outfitters and guides who provide a valuable service to the public. This case was important to help ensure the legitimacy of permitted services,” said Fishlake Forest Supervisor Mike Elson.
The case was investigated by the U.S. Forest Service and the Utah Attorney General’s Office.
Assistant United States Attorney Ruth Hackford-Peer and Special Assistant United States Attorney Ben Willoughby of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
Two Nashville Men Charged with Drug and Gun OffensesRead the Press Release
NASHVILLE – A federal grand jury has returned a superseding indictment charging two individuals for conspiracy and possession with intent to distribute approximately five pounds of methamphetamine in Nashville, Tennessee, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
The indictment charges Brian Antonio Dotson, 45, and Lavantrez Zarqua Johnson, 28, both of Nashville, with conspiracy to possess methamphetamine with intent to distribute and possession with the intent to distribute methamphetamine. Johnson is also charged with possession of cocaine with the intent to distribute and Dotson is charged with being a felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
On May 4, 2023, Dotson and Johnson were arrested in an operation by the Metro Nashville Police Department, Tennessee Bureau of Investigation and the Drug Enforcement Administration. MNPD detectives arranged to purchase five pounds of methamphetamine from Dotson. Dotson met with Johnson prior to the sale to obtain the methamphetamine. The defendants then drove separately to the neighborhood where the methamphetamine purchase would occur. Officers arrested Dotson at that time and a search of his car led to the recovery of five pounds of methamphetamine and two firearms.
After arresting Dotson, officers attempted to detain Johnson who fled in his car. Although officers deployed a spike strip that punctured his car’s tires, Johnson was able to escape. While fleeing, Johnson threw a bag out his car. When officers recovered the bag, they found three plastic bags containing a substance later confirmed to be cocaine. Officers apprehended Johnson a few miles away and discovered a four-year-old child in his car. Both defendants are detained in federal custody.
This case was investigated by the Drug Enforcement Administration, the Metropolitan Nashville Police Department and the Tennessee Bureau of Investigation.
Assistant United States Attorney Herbert L. Bunton III is prosecuting the case.
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Additional Romanian Men Sentenced to Federal Prison for Stealing Bank Card NumbersRead the Press Release
PENSACOLA, FLORIDA – Zamfir Nitu, 48, and Irinel Irimia, 42, both of Romania, were sentenced to 14 months in federal prison, after previously pleading guilty to conspiracy to steal bank card numbers, and possession of bank card numbers. Each defendant was ordered to serve a term of 1-year supervised release following their prison sentence and will face deportation. The sentences were announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“These cases demonstrate the success of cooperative investigations by federal and local agencies working to identify and arrest those attempting to profit from fraud and theft,’” said U.S. Attorney Coody. “The protection of our citizens’ financial information is paramount, and with the help of our law enforcement partners, we will hold criminals accountable, no matter their national origin.”
In April of 2023, the Eglin Federal Credit Union discovered that Nitu and Irimia had installed skimming devices at two of its ATMs and skimmed several hundred bank card numbers. The defendants then used the skimmed numbers to create fake bank cards and withdraw money from multiple ATMs in the area. They successfully obtained approximately $17,000 and were denied on attempts to withdraw another $35,000.
“This case underscores the importance of investigators from both local and federal law enforcement agencies working together to protect the financial well-being of our good, hardworking citizens,” said Sheriff Eric Aden. “The Okaloosa County Sheriff’s Office will continue to investigate and prosecute fraudulent activity compromising victims’ financial safety and security.”
“Crimes that steal people’s identities and threaten to destabilize their financial security and wellbeing of unsuspecting victims will not be tolerated,” said HSI Tallahassee Assistant Special Agent in Charge Nicholas Ingegno. “Alongside every state and local law enforcement partner, HSI vows to investigate criminals who pick the digital pockets of U.S. citizens by hiding behind the virtual anonymity of the internet.”
This case resulted from a joint investigation by the Okaloosa County Sheriff’s Office, the Santa Rosa County Sheriff’s Office, and Homeland Security Investigations. Additionally, the assistance of Eglin Federal Credit Union’s Fraud Investigation Division was critical in gathering the necessary evidence. Assistant United States Attorney Walter Narramore prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Topeka man charged with embezzlementRead the Press Release
TOPEKA, KAN. – A Kansas man made his initial appearance before a judge after a federal grand jury in Topeka returned an indictment charging him with financial fraud.
Matthew Waits, 39, of Topeka is charged with one count of thefts concerning a program receiving federal funds.
According to court documents, between January 2023 and December 2023, Waits is accused of using his position as program manager and director of the Prairie Band Potawatomi Nation’s Diabetes Prevention Program to embezzle $5,000 or more in federal grant money.
The Federal Bureau of Investigation (FBI) and the U.S. Department of Health and Human Services - Office of Inspector General are investigating the case.
Assistant U.S. Attorney Jared Maag is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Three Memphis Men Receive Significant Federal Sentences after Carjacking and Robbery SpreeRead the Press Release
Memphis, TN – Three Memphis men have been sentenced to a total of 66 years in federal prison after being convicted of three carjackings and three business robberies that occurred in the spring of 2022. Kevin G. Ritz, United States Attorney for the Western District of Tennessee, announced the sentences today.
According to the information presented in court, Jermiah Jones, 24, Kevontae Harper, 22, and James Payne, 21, participated in a crime spree that included three carjackings and a series of armed robberies of Memphis businesses. All three men pled guilty to three counts of carjacking, three counts of business robbery, and brandishing a firearm during a crime of violence.
United States District Court Judge Thomas L. Parker sentenced Harper to 25 years of imprisonment on February 14, 2024; Payne to 15 years of imprisonment on March 1, 2024; and Jones to 26 years of imprisonment on July 17, 2024. There is no parole in the federal system.
This case was investigated by the Federal Bureau of Investigation’s (FBI) Safe Streets Task Force, a collective comprised of federal, state, and local law enforcement personnel.
United States Attorney Kevin G. Ritz thanked Assistant United States Attorneys Elizabeth Rogers and Jermal Blanchard, who prosecuted this case, as well as the law enforcement partners who investigated this case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Texas Man Pleads Guilty to International Money Laundering Conspiracy Involving More Than $8,500,000 in Fraud Scheme FundsRead the Press Release
Baltimore, Maryland – Jon Briceno, age 42, of Katy, Texas, pleaded guilty Friday, July 19, 2024, to conspiracy to commit money laundering, relating to his laundering of more than $8,751,523.07 in proceeds of various frauds, such as romance schemes and business email compromise schemes.
The guilty plea was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Christina Bentham of the United States Secret Service (USSS), Baltimore Field Office; and Sheriff Matt Crisafulli of the Worcester County Sheriff’s Office.
According to the plea agreement, beginning around June 2020, at the latest, and continuing through the date of his arrest by federal law enforcement on February 20, 2024, Briceno entered into an illegal agreement with the individuals referred to as Person A and Person B in the Indictment and numerous other co-conspirators to conduct and attempt to conduct financial transactions affecting interstate and foreign commerce that constituted the fraud schemes.
The conspiracy involved the use of numerous shell companies formed by Briceno and his co-conspirators, as well as the opening of multiple bank accounts in the name of the shell companies that concealed his receipt and transfer of fraud proceeds. These shell companies assisted the conspiracy by allowing Briceno to receive and transfer fraud proceeds while concealing Briceno’s identity and that of his co-conspirators.
In connection with the scheme, Briceno and his co-conspirators each took a percentage of the proceeds from schemes, with the Briceno often taking 10-25% of the fraud proceeds.
Briceno was an organizer or leader of the money laundering conspiracy, which involved multiple participants around the nation. Indeed, the Briceno routinely directed co-conspirators across the county in connection with the scheme, including by (1) recruiting them to open bank accounts in their names or in the names of various purported businesses (shell companies) to launder the fraud proceeds; (2) informing them when proceeds of schemes of defraud were deposited into bank accounts they controlled; (3) directing the co-conspirators regarding the intermediate accounts to which the proceeds were to be transferred; and (4) directing the co-conspirators to provide confirmation to him that the co-conspirators had in fact received and then transferred the proceeds as requested, including (a) photographs of online bank statements and online wire transfer confirmations; (b) mobile device screenshots of confirmations of transfers of funds via Zelle; and (c) mobile device screenshots of online bank statements.
Among the financial transactions Briceno directed with his co-conspirators was their receipt of funds from a victim, the Worcester County Treasurer’s Office in Worcester County, Maryland—referred to as Victim 1 in the Indictment—on 12 separate instances beginning on November 20, 2020 and ending on January 21, 2021 in amounts ranging in size from $16.60 to $41,471.94. In total, Worcester County was fraudulently convinced to provide $167,745.18 in funds to a bank account controlled by Briceno as a result of a business email compromise scheme in which an accounting manager employed by Worcester County received fraudulent emails directing that payments be made in response to a bill be made to the account controlled by Briceno.
Moreover, during the broader timeframe of June 2020 to February 20, 2024, Briceno and his co-conspirators, used numerous accounts opened by Briceno and co-conspirators throughout the United States) to launder fraud proceeds obtained by numerous victims across the United States (including victims from California, Illinois, Virginia, Iowa, North Carolina, Texas, Missouri, Florida, New Jersey, New York, Indiana, South Carolina, Ohio, Alabama), as well as international victims Australia, Singapore, Luxembourg, Peru, the Dominican Republic and Thailand.
In total, Briceno laundered at least $8,751,523.07 in funds that were proceeds of wire fraud, and he personally received in excess of $1,250,000 as his share of the fraudulently obtained funds.
Mr. Briceno used the fraudulently obtained funds he received to purchase, among other things, numerous pieces of jewelry from Tiffany & Co., Cartier, Van Cleef & Arpels and others, numerous luxury items from designers such as Louis Vuitton, Gucci, Dior, and Christian Louboutin, and at least nine Rolex watches (valued at more than $10,000 each). He invested in crypto-currency using the funds and likewise frequently gambled with large amounts of it. Moreover, Briceno use the funds to lease office space, which he used as a space for running a poker room in Texas.
On June 15, 2022, Briceno’s residence, at the time located in Katy, Texas, was searched pursuant to a federal search warrant. During the search, law enforcement identified and seized numerous bank records, money order receipts, pawn shop receipts, several bankcards and articles of incorporation documents for various shell businesses used in connection with money laundering conspiracy, along with various electronic devices. One of these devices contained numerous WhatsApp messages and audio recordings of evidentiary value, including messages with co-conspirators concerning the money laundering conspiracy and numerous bank accounts used by Briceno, Person A, Person B, and others to launder fraud scheme funds, and numerous shell entities that were founded and used in connection with the conspiracy.
On February 20, 2024, law enforcement executed another search warrant at Briceno’s new home, also located in Katy, Texas, and Briceno was arrested. Numerous items of evidentiary value were seized during the search, including electronic devices with content reflecting the money laundering conspiracy with Person A, Person B, and others.
Briceno faces a maximum possible sentence of 20 years in prison followed by up to three years of supervised release. U.S. District Judge Matthew J. Maddox has scheduled sentencing for October 24, 2024 at 10:00 a.m.
United States Attorney Erek L. Barron commended the USSS and the Worcester County Sheriff’s Office for their work in the investigation. Assistant U.S. Attorney Paul A. Riley leads the prosecution of this federal case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Sixth Nigerian National Sentenced for International Scheme That Defrauded Elderly U.S. VictimsRead the Press Release
A Nigerian national was sentenced today to 85 months in prison for his role in a transnational inheritance fraud scheme. With today’s sentencing, each of the six defendants connected with this matter has been sentenced.
According to court documents, Amos Prince Okey Ezemma, 50, was a member of a group of fraudsters that sent personalized letters to elderly victims in the United States, falsely claiming that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who had died years before in Portugal. Victims were told that before they could receive their purported inheritance, they were required to send money for delivery fees and taxes and were instructed to make other payments. Victims sent money to the defendants through a complex web of U.S.-based former victims. The defendant and his co-conspirators also convinced former victims to receive money from new victims and then forward the fraud proceeds to others.
“The Justice Department’s Consumer Protection Branch will continue to pursue, prosecute and bring to justice transnational criminals responsible for defrauding U.S. consumers, wherever they are located,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This case is testament to the critical role of international collaboration in tackling transnational crime. I want to thank the members of the Postal Inspection Service and Homeland Security Investigations, as well as the Spanish National Police, National Crime Agency and Portuguese Judicial Police for their outstanding contributions to this case.”
“This investigation is a great example of the results the U.S. Postal Inspection Service (USPIS), the Justice Department and our law enforcement partners strive to achieve,” said Inspector in Charge Juan A. Vargas of the USPIS Miami Division. “We will continue to identify and dismantle transnational groups targeting American citizens and using the mail to further their schemes to defraud. Justice has no borders.”
“Targeting the elderly for pure financial gain is beyond shameful, it’s morally reprehensible,” said Special Agent in Charge Fransisco B. Burrola of Homeland Security Investigations (HSI) Arizona. “Protecting such a vulnerable population is not just the responsibility of family members but also law enforcement agencies like HSI and our partners. Together, we are a force multiplier committed to apprehending those who scam our seniors. Let these lengthy sentences serve as reminders that HSI will not tolerate criminals who are motivated by greed.”
Each of Ezemma’s five co-defendants has been sentenced to prison for their roles in the scheme. On June 21, 2023, the Honorable Kathleen M. Williams sentenced Emmanuel Samuel to 82 months in prison. On July 25, 2023, Judge Williams sentenced Jerry Chucks Ozor to 87 months in prison. On Aug. 29, 2023, Judge Williams sentenced Iheanyichukwu Jonathan Abraham to 90 months in prison. On Oct. 20, 2023, Judge Williams sentenced Kennedy Ikponmwosa to 87 months in prison. And on Nov. 2, 2023, Judge Williams sentenced Peter Ezennia Neboh to 128 months in prison. Judge Williams also ordered Ezemma and his co-defendants to pay more than $6 million in restitution to their over 400 victims.
The Consumer Protection Branch, USPIS and HSI investigated the case.
Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorneys Josh Rothman and Brianna Gardner of the Justice Department’s Consumer Protection Branch are prosecuting the case. The Justice Department’s Office of International Affairs, U.S. Attorney’s Office for the Southern District of Florida and Europol all provided critical assistance.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is 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 its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the Federal Trade Commission 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.
Shelbyville Woman Sentenced to over 3 Years in Federal Prison for Defrauding Former EmployerRead the Press Release
Louisville, KY – A Shelbyville, Kentucky woman was sentenced today to 3 years and 1 month in federal prison for engaging in a scheme to defraud her former employer.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Robert Holman of the United States Secret Service made the announcement.
According to court records, Amy Hall, 38, was sentenced to 3 years and 1 month in prison, followed by 3 years of supervised release, for seven counts of wire fraud. The charges in this case stemmed from Hall’s scheme in which, while employed as the Accounting Controller for a Louisville, Kentucky design and construction company, she used her access and position to make unauthorized payments totaling $262,897.69, for her own personal benefit and the benefit of others, on the company’s bank account, a related company’s bank account, and a company credit card without the companies’ knowledge or authorization.
Hall was also ordered to pay restitution to the two victim companies in the amount of $262,897.69.
There is no parole in the federal system.
The case was investigated by the United States Secret Service.
Assistant U.S. Attorney Nicole Elver prosecuted the case.
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Seminole Resident Pleads Guilty to Involuntary Manslaughter in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lucus Wayne Cullum, age 25, of Seminole, Oklahoma, entered a guilty plea to one count of Involuntary Manslaughter in Indian Country.
The Indictment alleged that, on November 23, 2022, Cullum killed the victim while failing to devote his full time and attention to driving.
The crime occurred in Seminole County, within the boundaries of the Seminole Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from investigations by the Seminole Nation Lighthorse Police Department, the Oklahoma Highway Patrol, and the Federal Bureau of Investigation.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Cullum was remanded to the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Kevin Gross represented the United States.
Self-Proclaimed “Wolf of Airbnb” Sentenced to 51 Months in Prison in Connection with Ppp and Real Estate Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that KONRAD BICHER was sentenced today by U.S. District Judge Lorna G. Schofield to 51 months in prison in connection with his fraudulent operation of real estate businesses, including by entering into lease agreements for residential apartment units in Manhattan on false and fraudulent pretenses and by making false statements to obtain loans guaranteed by the U.S. government. BICHER previously pled guilty to one count of wire fraud in connection with the scheme.
U.S. Attorney Damian Williams said: “For years, Bicher schemed to defraud New York City landlords and the U.S. Government. Bicher enriched himself by abusing Government programs and tenant protections intended to benefit people and businesses in need during one of the worst economic and public health crises in history. He bragged about his schemes to his friends and the media, proudly referring to himself as the ‘Wolf of Airbnb,’ but as today’s sentence underscores, those who partake in such callous and fraudulent conduct will answer for their crimes, no matter their self-given title.”
According to the allegations in the Complaint, Indictment, other court documents, and statements made in Court:
Beginning in at least February 2019, BICHER and/or individuals working in concert with BICHER, began renting apartment units (the “Units”) in Manhattan. The Units were leased pursuant to lease agreements which required that the lessee make monthly rental payments and also included clauses that prohibited the lessee from renting the Units to third parties on a short-term basis and/or included clauses that prohibited the lessee from subletting the Units to third parties without written consent of the owner. Despite the requirement to make monthly rental payments, BICHER failed to make payments as required by the lease agreements. For many of the Units, BICHER also refused to vacate the Units after the expiration of the lease agreements. During the period of time that BICHER failed to make required rental payments, including the period of time after a lease agreement expired and the premises had not been vacated, BICHER derived income by renting the Units on a short-term basis, including by posting the Units for rent on various online marketplaces, including Airbnb, Inc. (“Airbnb”).
Between in or about July 2019, and in or about April 2022, BICHER and his associates failed to make more than $1,000,000 in payments pursuant to the Lease Agreements or, for the period of time after the expiration of the Lease Agreements, based on the estimated fair market value for the Units. During this period, BICHER caused the Units to be listed for short-term rent on Airbnb and at least one other online marketplace for short-term rentals, resulting in at least $1,170,000 in rental income to BICHER and his associates.
Throughout the course of this scheme, the lessors of the Units made numerous efforts to recover rental payments from BICHER and/or to stop BICHER from continuing to rent the Units on a short-term basis, including by initiating civil litigation against BICHER. BICHER relied on legal protections intended to benefit tenants, including tenant protections adopted in connection with the COVID-19 pandemic, in order to oppose the lawsuits. Despite relying on tenant protections for New Yorkers in need, BICHER continued to generate revenue by renting certain Units on a short-term basis.
In addition, between at least in or about April 2021, until in or about July 2021, BICHER obtained Government-guaranteed loans through a loan program of the U.S. Small Business Administration designed to provide relief to small businesses during the COVID-19 pandemic, namely the Paycheck Protection Program (“PPP”). In furtherance of this scheme, BICHER submitted at least four applications for PPP loans on behalf of at least three entities and obtained over $565,000 in loan proceeds. These PPP applications contained fraudulent documents and false information. For example, in connection with the PPP applications, BICHER submitted tax documents which were purportedly filed with the Internal Revenue Service (“IRS”). These documents were falsified, in that the entities seeking PPP loans had not actually filed the purported tax returns with the IRS, and BICHER had not otherwise reported the purported income to the IRS.
During the course of the scheme, BICHER referred to himself as the “Wolf of Airbnb” and explained to media outlets that this nickname referred to the fact that he was “hungry and ruthless enough to get on top of the financial ladder” and had the “ferocity…of a wolf, because wolves are territorial, vicious, and show no mercy when provoked.”
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In addition to the prison term, BICHER, 32, of Hialeah, Florida, was sentenced to three years of supervised release. He was additionally ordered to forfeit $1,740,407.12 and pay restitution in the amount of $2,227,371.58.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Matthew Weinberg is in charge of the prosecution.
Savannah roundtable showcases agency collaboration to combat sexual harassment in housingRead the Press Release
SAVANNAH, GA: The U.S. Attorney’s Office for the Southern District of Georgia, the Justice Department’s Civil Rights Division, and the U.S. Department of Housing and Urban Development and its Office of Inspector General (HUD OIG) hosted a Savannah roundtable for community members and organizations as part of the Justice Department’s Sexual Harassment in Housing Initiative.
“Sexual harassment or abuse by a landlord is never acceptable,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “Our office will continue to vigorously pursue justice and compensation for vulnerable tenants who endure such predatory behavior.”
“Everyone deserves to live in a safe environment without fear of being sexually harassed or assaulted by their landlord or anyone in a position of power over their housing,” said HUD Inspector General Oliver Davis. “I am grateful to U.S. Attorney Steinberg for hosting this summit today. My office remains committed to working with her to hold accountable those who would prey on vulnerable tenants and housing applicants.”
Held at the Chatham County Library on Bull Street, the roundtable’s participants included representatives from the U.S. Department of Justice, the U.S. Department of Housing and Urban Development and HUD OIG, and representatives from fair housing organizations and related service providers.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations – single parents, individuals who have financial difficulties, and people who have suffered sexual violence in the past. These individuals often do not know where to turn for assistance.
The Justice Department’s Civil Rights Division launched the Sexual Harassment in Housing Initiative to combat sexual harassment in housing. The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
The U.S. Attorney’s Office for the Southern District of Georgia collaborates with the Civil Rights Division to raise awareness of the options that are available to help individuals experiencing sexual harassment in housing. Community organizations, such as legal services offices, fair housing organizations, domestic violence advocates, shelters, and transitional housing providers, can identify the misconduct and recommend reporting to the Justice Department, HUD and HUD OIG.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures. To date, the Justice Department has filed 42 lawsuits alleging sexual harassment in housing and recovered nearly $17 million for victims of such harassment through the Sexual Harassment in Housing Initiative.
Earlier this year, the Justice Department and the U.S. Attorney’s Office for the Southern District of Georgia secured a $600,000 settlement with a Savannah-area landlord to resolve allegations that he sexually harassed and retaliated against his female tenants for more than 15 years.
If you or someone you know has information about or has been a victim of sexual harassment, sexual assault, or sexual exploitation in housing – even if the events occurred years ago – report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline. You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at https://www.hud.gov/fairhousing/fileacomplaint.
Additionally, you can contact the U.S. Attorney’s Office by calling 912-652-4422 or emailing [email protected]; or the Justice Department’s Civil Rights Division by calling 844-380-6178 or emailing [email protected]. More information about the Justice Department’s Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Sandy Woman Sentenced to 15 Months’ Imprisonment After Assaulting Federal OfficersRead the Press Release
Salt Lake City, Utah – Melissa Lynn Trotter, 25, of Sandy, Utah was sentenced today to 15 months’ imprisonment, three years’ supervised release, and ordered to pay $7,952.67 in restitution after she assaulted federal officers with her car in February 2024.
The sentence was imposed by U.S. District Court Judge David Barlow for the District of Utah. In May 2024, Trotter admitted to assaulting federal officers with a deadly weapon.
According to court documents and statements made at the change of plea hearing, on February 7, 2024, Trotter violently assaulted several members of the United States Marshals Service Violent Fugitive Apprehension Strike Team (VFAST) with her vehicle outside a CVS in West Valley City. Members of VFAST identified themselves as law enforcement and were attempting to arrest Trotter’s fugitive boyfriend when she reversed her vehicle and rammed into a federal officer’s vehicle where Deputy United States Marshals were standing. Trotter than drove over a parking barrier, hitting the CVS building, and drove on a pedestrian sidewalk outside the store and violently rammed another federal officer’s vehicle while attempting to escape from law enforcement. See prior press release here.
“Trotter’s criminal actions were reckless and dangerous,” said U.S. Attorney Trina A. Higgins of the District of Utah. “My office is committed to doing everything we can to protect law enforcement while they work to protect our communities.”
“Unfortunately, when pursuing individuals who are wanted and have violent criminal records, incidents like this are all too common,” said Chief Deputy U.S. Marshal Nick Chournos for the District of Utah. “The United States Marshals Service Violent Fugitive Apprehension Strike Team (VFAST) along with state and local partners are committed to protecting our communities.”
The case was investigated by the U.S. Marshals Service.
Assistant United States Attorney Kevin L. Sundwall 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.
Philadelphia-Area Doctor Agrees to Resolve Civil Allegations of Improper Prescribing of Controlled SubstancesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Dr. David L. Mattingly, a doctor of osteopathic medicine in the Philadelphia area, has agreed to resolve allegations that he improperly prescribed opioid controlled substances to individuals. Dr. Mattingly will pay $72,000 to the United States and agree to strict limitations preventing him from prescribing almost all controlled substances, including drugs like oxycodone.
Under the Controlled Substances Act, physicians like Mattingly are registered with the DEA and are generally permitted to prescribe controlled substances only based on a valid prescription. A prescription is valid only when issued for a legitimate medical purpose and in the usual course of professional practice. That legal obligation applies to controlled substances broadly and includes drugs like the opioid oxycodone. The settlement between the United States and Mattingly resolves allegations that, from February 5, 2015, through September 1, 2018, Mattingly illegally prescribed opioid controlled substances like oxycodone without satisfying these important legal obligations as to a certain number of patients whose records were subpoenaed by the Drug Enforcement Administration (DEA). The settlement agreement covers liability under the Controlled Substances Act, which imposes substantial civil penalties for illegal controlled substance prescriptions.
The settlement agreement permanently prevents Mattingly from prescribing almost all controlled substances, including oxycodone. Mattingly also entered into an administrative agreement with the DEA that includes additional compliance measures, such as continuing education courses.
“Doctors like Mattingly have a responsibility to their patients and the community when they prescribe controlled substances, particularly opioids like oxycodone,” said U.S. Attorney Romero. “It is critical that physicians uphold that responsibility and focus on the safety and well-being of their patients. When they do not and they violate the law by illegally prescribing controlled substances like oxycodone, my office will not hesitate to hold them accountable.”
“Doctors are required to satisfy a two-prong standard when prescribing controlled substances; the first of which is that the prescription be issued for a legitimate medical purpose and the second being that it is done in the usual course of professional practice,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “As part of his obligations under the Controlled Substances Act, Dr. Mattingly was required to ensure that both of these standards were met when he prescribed powerful painkillers such as oxycodone.”
The case was investigated by the Philadelphia Field Division of the DEA. The civil investigation and settlement were handled by Assistant United States Attorney Anthony D. Scicchitano, Investigator Jeffrey Braun, and Auditor Dawn Wiggins.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Palmer man charged with multiple aviation violationsRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment charging a Palmer man with illegally operating an aircraft.
According to court documents, William Marsan, 56, is allegedly the owner and pilot of a private aircraft in Alaska. In June 2023, the Federal Aviation Administration (FAA) received a report that Marsan did not radio his intention to take off from an airport in Palmer and operated the aircraft against the flow of landing traffic, resulting in a near mid-air collision with another aircraft attempting to land.
Law enforcement investigated the June 2023 incident and discovered that Marsan was allegedly operating an aircraft without a valid license or valid registration. They also discovered he had allegedly obscured the identification number on the side of the aircraft with stickers.
As a result of the investigation, the FAA issued an Emergency Order of Revocation of the defendant’s Airline Transport Pilot Certificate, which required the immediate surrender of his pilot license or the filing of an appeal of the decision within 10 days. Marsan allegedly failed to file an appeal or surrender his license but has continued to operate his aircraft until the date of this indictment.
Marsan is charged with one count of operating an aircraft without an airman certificate in violation of 49 U.S.C. §46306(b)(7), one count of operating an unregistered aircraft in violation of 49 U.S.C. §46306(b)(6)(A) and one count of operating an aircraft displaying a false registration mark in violation of 49 U.S.C. §46306(b)(3). The defendant was arrested on July 18 and will make his initial court appearance on July 23 before U.S. Magistrate Judge Scott A. Oravec of the U.S. District Court for the District of Alaska. If convicted, he faces a maximum penalty of three years in prison and a $250,000 fine for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska, Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office and Regional Administrator Michael O’Hare of the FAA, Alaska Region made the announcement.
The FBI Anchorage Field Office and the FAA, Alaska Region are investigating the case.
Assistant U.S. Attorney Tom Bradley is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Owner of Home Health Care Company Convicted of Multimillion Dollar Health Care Fraud SchemeRead the Press Release
BOSTON – A Westford woman was convicted Friday, July 19, 2024 following a nine-day jury trial in federal court in Boston in connection with a home health care fraud scheme.
Faith Newton, 56, was convicted of one count of conspiracy to commit health care fraud, one count of health care fraud, and three counts of money laundering. The jury found the defendant not guilty on one count of money laundering conspiracy. Sentencing will be scheduled at a later date. Newton was arrested and charged along with co-defendant Winnie Waruru in February 2021.
“Ms. Newton deliberately orchestrated a scheme to defraud MassHealth and took advantage of her patients and their families in the process. She chose to violate the trust of government agencies and the broader community to treat herself to million-dollar cash bonuses, a lavish house and a Maserati. This conduct is unacceptable, and she will now pay the price for her choices,” said Acting United States Joshua S. Levy. “Newton billed for countless patient visits that never happened or were unnecessary. Our office is committed to protecting patients and our health care system from fraud and deception, and we will continue to hold those illegal actors accountable for their actions.”
“Newton orchestrated a massive $100 million health care fraud scheme that targeted the Medicaid program, funding her lavish lifestyle at the expense of the American taxpayers,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Today’s guilty verdict underscores the commitment of HHS-OIG and our partners to protecting the integrity of our federal health care system, and it should also serve as a stern warning to criminals who contemplate engaging in similar illegal schemes.”
“Faith Newton’s flagrant greed and theft orchestrated through her healthcare fraud scheme is disgraceful. The jury’s verdict further demonstrates IRS-CI’s commitment to not only protecting the America taxpayers but also the most vulnerable of citizens,” said Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations, Boston Field Office. “By stealing from MassHealth, Newton not only stole from federally-funded programs and taxpayers, but she then used those proceeds to fund a lavish lifestyle for herself. As a direct result of Newton’s scheme, these programs had fewer available funds to assist the individuals who truly needed the help.”
“As Faith Newton’s greed and wealth increased, her elaborate $100 million home health care fraud scheme collapsed. For years, her company billed taxpayers for home health services they did not provide, were not authorized, or were not medically necessary. She paid kickbacks, laundered illegal proceeds, and even bought a Maserati,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Our health care system is under constant attack by fraudsters who have pilfered billions of dollars from Medicare and other health care benefit programs. Today’s verdict should be a warning to others that committing healthcare fraud will not be tolerated.”
From January 2013 to January 2017, Newton was a part owner and operator of Arbor Homecare Services LLC. Newton and others engaged in a conspiracy to use Arbor to defraud MassHealth of at least $100 million.
Specifically, evidence at trial demonstrated that Arbor, through Newton and others, failed to train staff, billed for home health services that were never provided or were not medically necessary and billed for home health services that were not authorized. Arbor, through Newton and others, paid kickbacks for patient referrals, regardless of medical necessity. They also entered sham employment relationships with patients’ family members to provide home health aide services that were not medically necessary and routinely billed for fictitious visits that Newton knew did not occur.
Newton used the laundered proceeds of the $100 million scheme to purchase a house and a Maserati.
Newton’s co-defendant, Waruru, pleaded guilty to her role in the conspiracy in September 2022. She is scheduled to be sentenced on Sept. 18, 2024 before U.S. Senior District Court Judge George A. O’Toole Jr.
Newton’s previous trial, beginning on June 26, 2023, ended in a mistrial during jury deliberations on July 10, 2023.
The charges of health care fraud, conspiracy to commit health care fraud, and money laundering each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the amount of the money involved in the laundering. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Levy; HHS SAC Coviello; IRS SAC Chavis; and FBI SAC Cohen, made the announcement today. Assistant U.S. Attorneys Bill Brady and Christopher Looney of the Health Care Fraud Unit are prosecuting the case.
Operation Smoke and Mirrors Update: California Man Sentenced to 14 Years in Prison for Role in Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – Ildiberto Gonzalez Jr., 30, of San Bernadino, California, was sentenced today to 14 years in prison, to be followed by three years of supervised release, for conspiracy to distribute a quantity of methamphetamine. Gonzalez admitted to his role in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, on March 18, 2023, Gonzalez was directed by co-conspirator Alejandro Gallegos to deliver approximately 196 pounds of methamphetamine and four kilograms of cocaine from California to Bluefield, West Virginia. Gonzalez transported the controlled substances in his 2009 Freightliner semi-truck with attached trailer. On March 22, 2023, Gonzalez met a West Virginia co-conspirator in a Bluefield parking lot. There, Gonzalez exchanged the shipment with a box that he believed contained approximately $400,000 as payment for the controlled substances.
Gonzalez was driving away from the transaction in his semi-truck when law enforcement pulled him over. Gonzalez notified Gallegos by phone during the traffic stop. Officers seized his cell phone and a loaded 9mm pistol that Gonzalez also had in the truck’s cab.
Gonzalez admitted that he previously delivered boxes containing controlled substances in approximately January 2023 from California to the individual in Bluefield at the direction of Gallegos. Gonzalez admitted he received cash for that transaction that he took back to California and gave to Gallegos.
Gonzalez and Gallegos are among 32 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 400 pounds of methamphetamine as well as 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash.
Gallegos, also known as “Alex,” “Rooster,” “G” and “Primo,” 41, of Hacienda Heights, California, pleaded guilty on June 20, 2024, to conspiracy to distribute 500 grams or more of methamphetamine and 500 grams or more of a mixture and substance containing a detectable amount of cocaine. Gonzalez and Gallegos are among 29 defendants who have pleaded guilty. Another defendant, Mark Leslie Lively, 57, of Kenna, was found guilty on July 17, 2024, by a federal jury of conspiracy to distribute 50 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine. Indictments against the remaining defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department..
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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. 1:23-cr-32.
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Oklahoma Doctor Convicted after Stealing Controlled Substances from HospitalRead the Press Release
OKLAHOMA CITY – A federal jury has convicted John Nedza, 35, of Edmond, of 18 counts of obtaining a controlled substance by deceit or subterfuge, announced U.S. Attorney Robert J. Troester.
On September 19, 2023, a federal grand jury charged Nedza with 18 counts of obtaining a controlled substance by deceit or subterfuge. On July 11, a federal jury found Dr. Nedza guilty on all counts.
Dr. Nedza worked as a contract anesthesiologist at an Oklahoma City based hospital through March 2022. Testimony presented at trial indicated that Dr. Nedza had exploited his role at the hospital to divert controlled substances, including fentanyl, ketamine, dilaudid, and midazolam, over a long period of time. Evidence presented at trial proved that, on at least six different occasions in early March 2022, Dr. Nedza pulled out large amounts of controlled substances by claiming the drugs were for patient surgeries. However, Dr. Nedza was not scheduled to perform—and did not perform—those surgeries. Instead, he claimed to dispose of the drugs, but kept them for his own personal purposes.
Following his conviction, Nedza faces up to four years in federal prison per count for a total possible sentence of 72 years in federal prison.
This case is the result of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorneys Thomas B. Snyder and Elizabeth M. Bagwell are prosecuting the case.
Reference is made to public filings for additional information.
Oklahoma City Man Sentenced to Serve 25 Years in Federal Prison for Fentanyl TraffickingRead the Press Release
OKLAHOMA CITY – LAMMON RUSSELL BLONNER, 27, of Oklahoma City, has been sentenced to serve 300 months in federal prison for his role in a conspiracy to traffic over 46 pounds of fentanyl-laced pills, announced U.S. Attorney Robert J. Troester.
According to an affidavit in a previously filed criminal complaint, in July 2023, law enforcement intercepted a shipment of fentanyl-laced pills which was en-route to Oklahoma City. Authorities coordinated a controlled delivery with fake “fentanyl pills,” which were picked up by an individual and taken to an Oklahoma City residence. When law enforcement knocked on the door, Blonner attempted to flee out of a back window of the home before he was arrested. At the residence, law enforcement found fentanyl pills, methamphetamine, cocaine, and four firearms.
According to public record, while in custody, Blonner harassed, threatened, and lied to police officers. Public record also reflects that Blonner has a previous felony conviction for robbery with a dangerous weapon in Oklahoma County District Court case number CF-2013-7880. Blonner had been out of prison less than a year when he was arrested in this case.
On August 16, 2023, a federal grand jury returned an eight-count Indictment against Blonner, charging him with drug conspiracy, possession of methamphetamine, cocaine, and fentanyl with intent to distribute, possession of firearms in furtherance of a drug-trafficking crime, being a felon in possession of firearms, maintaining a drug-involved premises, and possession of methamphetamine with intent to distribute where a minor is present.
On October 5, 2023, Blonner pleaded guilty to Counts 1 & 6 of the Indictment, and admitted to conspiring with others to distribute fentanyl, and to possessing a firearm despite his previous felony conviction.
At the sentencing hearing on July 18, 2024, U.S. District Judge Jodi W. Dishman sentenced Blonner to serve 300 months in federal prison, followed by five years of supervised release. In announcing the sentence, Judge Dishman noted Blonner’s serious criminal history and the fact that he began trafficking fentanyl less than one year after his release from state prison.
This case is the result of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Travis Leverett prosecuted the case.
Reference is made to public filings for additional information.
Oklahoma City Man Sentenced to Serve 15 Years in Federal Prison following Two Armed Robberies in Two DaysRead the Press Release
OKLAHOMA CITY – ZACHARY SCOTT, JR., 33, of Oklahoma City, has been sentenced to serve 180 months in federal prison for carrying out two armed robberies, announced U.S. Attorney Robert J. Troester.
On October 3, 2023, a federal grand jury returned a three-count Indictment against Scott, charging him with two counts of interference with commerce by robbery, and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. According to public record, in August 2023, Scott attempted two armed robberies in the span of two days. In both robberies, Scott threatened employees with his firearm, telling one such employee he would kill them if they didn’t give him cash from the register. Scott was arrested by Oklahoma City Police on August 16, 2023, and officers located a loaded handgun in the vehicle he was driving.
On December 1, 2023, Scott pleaded guilty to the two counts of interference with commerce by robbery, and admitted he carried out the robberies by force using a firearm.
At the sentencing hearing on July 16, 2024, U.S. District Judge Jodi W. Dishman sentenced Scott to serve 180 months in federal prison, followed by three years of supervised release. In announcing the sentence, Judge Dishman noted that Scott had committed the robberies just a couple months after discharging a sentence for similar offenses of robbery with a dangerous weapon, assault and battery with a dangerous weapon, and kidnapping in Oklahoma County District Court case number CF-14-8050.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorney Daniel Gridley prosecuted the case.
Reference is made to public filings for additional information.
New York Man Convicted of Traveling to have Sex with Minor, Production of Child Pornography, and Other ChargesRead the Press Release
CAMDEN, N.J. – A New York man was found guilty today on charges stemming from his travel to have sex with a 13-year old New Jersey resident and his production and possession of child pornography, U.S. Attorney Philip R. Sellinger announced.
Zachary Williams, 37, of New York, was convicted of two counts of interstate travel to engage in illicit sexual conduct with a minor, production of and possession of child pornography, and coercion and enticement of a minor, following a 13-day trial before U.S. District Judge Christine P. O’Hearn in Camden federal court.
According to documents filed in this case and the evidence at trial:
In September 2020, Williams met the minor via Snapchat. He lied about his age, telling the victim that he was 17 years old, when he was in fact 33 years old. Williams asked the victim for nude photographs of the victim, after receiving them, began to “sextort” the minor by threatening to send the nude photographs to the minor’s friends and family. He ultimately convinced the minor to meet him at a hotel in Atlantic County, New Jersey, and agreed to allow the victim to delete the nude photographs from his phone. On Oct. 2, 2020, Williams traveled to a hotel in Atlantic County and, two days later, engaged in sexual intercourse with the minor in his hotel room. Afterward, despite his earlier promises, Williams continued to send messages to the minor threatening to expose the minor’s nude photographs.
Law enforcement officers arrested Williams in March 2021 in a sting operation through which they lured him to the same Atlantic County hotel by posing as the minor victim. Williams’ phone contained numerous images of child pornography, which have led to the identification of additional child victims in both the Eastern District of New York and the District of Connecticut, where additional charges remain pending against Williams.
Williams faces a maximum of 30 years in prison on each of the two counts of interstate travel to engage in illicit sexual conduct with a minor, a mandatory minimum of 15 years and a maximum of 30 years on the production of child pornography, a maximum of 20 years on the possession of child pornography, and a maximum of 10 years on the coercion and enticement of a minor. In addition, Williams faces a $250,000 fine, mandatory restitution to the victims, and lifetime supervised release. Sentencing is scheduled for Dec. 4, 2024.
U.S. Attorney Sellinger credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; and officers from the Galloway Township Police Department, under the direction of Chief Richard D. Barber, and also recognizes the efforts of the Atlantic City Police Department under the direction of Chief James Sarkos and the Atlantic County Prosecutor’s Office under the direction of Prosecutor William Reynolds, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Patrick C. Askin of the Criminal Division, Camden.
New York Man Admits Role in KidnappingRead the Press Release
NEWARK, N.J. – A Queens, New York, man today admitted his role in a Paterson, New Jersey, kidnapping, U.S. Attorney Philip R. Sellinger announced today.
Reginald Law, 38, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an indictment charging him with kidnapping and Hobbs Act robbery.
According to documents filed in this case and statements made in court:
On Oct. 8, 2020, Law and his conspirator, Maurice Cottman, entered a retail store in Paterson, where they accosted the victim, who was working in the store. Law and Cottman dragged the victim from the store, threw him into the back of a U-Haul truck, and drove him from Paterson to New York. The victim suffered serious bodily injury from the kidnapping. Law admitted that during the kidnapping, he and Cottman called the victim’s family, told them that he had the victim, and demanded ransom for his return.
That afternoon, law enforcement officers saw the U-Haul parked in Harlem, New York. When the officers approached, Law and Cottman fled in the U-Haul and a motor-vehicle pursuit ensued. Law and Cottman crashed the U-Haul and tried to flee on foot. Officers apprehended Cottman, but Law got away. Officers retrieved the victim from the back of the U-Haul. Law was a fugitive until his arrest on May 26, 2021.
The kidnapping charged in Count One is punishable by a maximum penalty of life in prison. The Hobbs Act robbery charged in Count Two is punishable by a maximum penalty of 20 years in prison. Both are also punishable by a fine of $250,000, or twice the gross loss or gain, whichever is greatest. Sentencing is scheduled for Jan. 7, 2025.
Cottman previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an Information charging him with one count of kidnapping. On March 29, 2022, Judge Chesler sentenced Cottman to 15 years in prison with five years of supervised release.
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 guilty plea. He also thanked the FBI New York Field Office and the Paterson Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit.
law.indictment.pdfNew Orleans Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – WILL WILLIS (“WILLIS“), age 34, a resident of New Orleans, was sentenced on July 18, 2024 by U.S. District Judge Barry W. Ashe for violating the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to court records, in June 2023, the New Orleans Police Department conducted video surveillance in New Orleans, when an officer saw WILLIS with a bulge in his waistband consistent with a firearm. When police officers responded, WILLIS and another individual, ran. WILLIS attempted to discard his gun, but it discharged. After police arrested WILLIS, they found two handguns, a Glock Model 27, .40 caliber semi-automatic handgun and a nine-millimeter handgun, along with one spent shell casing, in his flight path. WILLIS admitted to possessing one of the guns, after having been convicted of four prior felony offenses.
Judge Ashe sentenced WILLIS to 46 months of imprisonment and three years of supervised release after imprisonment. Judge Ashe also ordered WILLIS to pay a mandatory special assessment fee of $100.
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 investigated by the Federal Bureau of Investigation and the New Orleans Police Department. The case was prosecuted by Assistant United States Attorney David Haller, Senior Litigation Counsel and PSN Coordinator.
New Orleans Man Pleads Guilty to Possession of a MachinegunRead the Press Release
NEW ORLEANS, LOUISIANA – XAVION WATTS (“WATTS”), age 21, a resident of New Orleans, pled guilty on July 17, 2024, before United States District Judge Lance M. Africk to Possession of a Machinegun, in violation of Title 18, United States Code, Section 922(o).
The Possession of a Machinegun charge carries a maximum term of imprisonment of 10 years, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.00. Judge Africk scheduled sentencing for October 30, 2024.
Court documents reveal that on October 29, 2022, NOPD patrol officers on foot patrol in the 400 block of Bourbon Street saw a pistol handle shaped object resembling a concealed firearm, protruding from under WATTS’s shirt. When officers approached WATTS, he fled on foot but was apprehended. Officers recovered the firearm/machine gun, specifically, a Glock Model 17, nine-millimeter, with a fully automatic switch, that had fallen out of his waistband during arrest. The firearm was loaded with one live round in the chamber and twenty-one live rounds in the extended magazine. Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agents tested the pistol and found it functioned as a fully automatic machine gun, due to the Glock conversion device it contained.
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 investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Orleans Police Department. Assistant United States Attorney Mark A. Miller of the Narcotics Unit is assigned the prosecution.
New Orleans Man Indicted for Federal Drug and Weapons OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that DJOHN BRYANT (“BRYANT”), age 31, of New Orleans, was indicted on July 19, 2024 for violations of the Federal Controlled Substances and Gun Control Acts.
BRYANT is charged in Count 1 of the indictment with possession with intent to distribute cocaine, fentanyl, methamphetamine, oxycodone, tapentadol, and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D). He is charged in Count 2 with possessing a firearm in furtherance of that drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i) and he is charged in Count 3 with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
As to Count 1, BRYANT faces up to twenty years in prison, up to a $1,000,000 fine, and at least three years of supervised release. As to Count 2, he faces a mandatory minimum sentence of five years up to life in prison, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. As to Count 3, he faces up to fifteen years in prison, up to a $250,000 fine, and at least three years of supervised release. Each count also carries a mandatory special assessment fee of $100.
According to court documents, on or about February 4, 2024, BRYANT possessed with the intent to distribute cocaine, fentanyl, methamphetamine, oxycodone, tapentadol, and marijuana within the Eastern District of Louisiana. BRYANT also illegally possessed a Glock Model 27, .40 caliber handgun and ammunition, in furtherance of his possession with intent to distribute those drugs. As a previously convicted felon, BRYANT was prohibited from possessing the firearm and ammunition.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Special Assistant United States Attorney James Ollinger of the Violent Crime Unit is in charge of the prosecution.
New Orleans Man Charged with Violating Federal Gun Control ActRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that DENZEL LEE (“LEE”), age 34, from New Orleans, was indicted on July 19, 2024 for being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8) in May of 2024. LEE had previously been convicted of three felonies.
If convicted, LEE faces a maximum sentence of fifteen (15) years imprisonment, a fine of up to $250,000, a term of supervised release for up to three years, and a mandatory $100.00 special assessment fee.
According to court documents, on or about May 5, 2024, LEE illegally possessed a Mossberg & Sons Model MC2SC, nine-millimeter caliber semi-automatic handgun. Due to his criminal history, LEE knew that he was prohibited from possessing a firearm. LEE’s criminal history included a prior federal conviction for being a felon in possession of a firearm.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Maria Carboni of the Financial Crimes Unit is in charge of the prosecution.
Montrose Man Pleads Guilty to Adult Webcam Business Scam that Conned Victim Investors Out of Nearly $1.2 MillionRead the Press Release
LOS ANGELES – A Montrose man pleaded guilty today to defrauding investors out of more than $1 million by making false promises that they would receive an ownership interest in several adult entertainment webcam websites and then using their money on personal expenses, including luxury items.
Patrick Khalafian, 54, pleaded guilty to one count of wire fraud.
According to his plea agreement, from November 2009 to October 2016, Khalafian solicited investments for businesses – including 168 Entertainment LLC, Empire Entertainment Group Inc., and EEG LLC – that purportedly developed and operated adult entertainment websites.
Khalafian falsely represented to victims that their investments would be used for business operations, including developing software and the platform for the proposed websites, paying for computer servers, hiring employees, and purchasing advertising. He also falsely promised that the victims would be repaid for their investments by a specific date, that they would receive ownership interests in the companies, and would receive a share of the companies’ profits.
Rather than investing the victim’s money, Khalafian instead used their funds to pay off his debts, including to prior victims, and to fund his own lifestyle, including to pay for gambling expenses and luxury shopping sprees.
To lull the victims into believing that their funds were being used as he had promised, Khalafian lied to his victims about the status of the adult entertainment websites purportedly being developed by the companies in which they had invested. Khalafian eventually stopped responding to victims and disconnected and changed his phone number and email address to evade their inquiries.
For example, in July 2015, Khalafian met with one victim at Mastro’s Steakhouse in Beverly Hills and falsely represented at the meeting that a $1 million investment from the victim would be used to pay for business expenses such as computer servers, employees, and advertising for the adult webcam business. Later that month, the victim – relying on Khalafian’s false promises – wired $1 million to a Khalafian-controlled bank account.
On the same day he received the funds, Khalafian transferred $200,000 of the victim’s money to an account to pay his rent, for luxury cars, and other personal expenses. The day after he received these funds, Khalafian used $66,000 of the victim’s money to purchase a new Ford F-150 truck. He also used more than $100,000 of the victim’s money at casinos, to pay back another investor, to pay his rent, and on luxury shopping sprees at retailers such as Tiffany, Barney’s, Fendi, Saks Fifth Avenue, and Louis Vuitton. Khalafian never paid the victim back any of his investment, and he stopped responding to the victim’s messages in October 2016.
Khalafian also admitted to conning two other victims in 2015 and 2016 out of $80,000 and $90,000, respectively, using their money on personal expenses and not his adult webcam business. Khalafian paid back neither victim any of their money.
In total, Khalafian’s fraud caused a total loss of at least $1.17 million.
United States District Judge André Birotte Jr. scheduled a February 21, 2025 sentencing hearing, at which time Khalafian will face a statutory maximum sentence of 20 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Roger A. Hsieh of the Major Frauds Section is prosecuting this case.
Mississippi Man Indicted for Impersonating Deputy United States MarshalRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that WILLIAM GILCHRIST (“GILCHRIST”), a resident of Greenville, Mississippi was indicted on July 19, 2024 for impersonating a deputy United States Marshal, in violation of Title 18, United States Code, Section 912.
According to the indictment, on or about June 19, 2024, GILCHRIST falsely assumed and pretended to be a Fugitive Task Force Officer with the United States Marshals Service.
GILCHRIST faces a sentence of up to 3 years imprisonment, up to 1 year of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of Homeland Security Investigations and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Middle District of Florida Task Force Continues to Combat COVID-19 FraudRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the results achieved by the Middle District of Florida to combat fraud related to COVID-19. This work has included complementary efforts by the United States Attorney’s Office’s (USAO-MDFL) Criminal, Asset Recovery, Appellate, and Civil Divisions, along with federal, state, and local law enforcement agencies.
“The Middle District of Florida United States Attorney’s Office continues to pursue, investigate, prosecute, and recover money from those who were engaged in fraud schemes designed to steal benefits intended for Americans coping with the myriad impacts of the COVID-19 pandemic,” said U.S. Attorney Roger Handberg.
On the criminal enforcement front, the USAO-MDFL and federal, state, and local law enforcement agencies combined resources in March 2020 to form the Middle District of Florida COVID-19 Fraud Task Force to identify, investigate, and prosecute fraud related to the ongoing COVID-19 pandemic. Since its inception through June 30, 2024, the Task Force has prosecuted 89 defendants for fraud schemes designed to exploit federal programs including the Paycheck Protection Program (“PPP”), Economic Injury Disaster Loans (“EIDL”), Unemployment Insurance (“UI”), the Main Street Lending Program (“MSLP”), the Emergency Rental Assistance Program (“ERAP”), as well as government Healthcare programs such as Medicare. Collectively, these defendants sought to defraud the United States of over $84.5 million. Sixty-seven of those defendants have already been found guilty, while prosecution remains pending against 22 defendants. (See chart for criminal case details.)
For example, in April 2024, a federal jury found Barrett Purvis guilty of wire fraud and money laundering. According to court records, Purvis applied for and received a $500,000 EIDL in May 2021. Although he applied on behalf of a legitimate small business he owned and operated, Purvis never intended to use any of the loan proceeds on working capital as required by the terms of the loan agreement. Instead, Purvis spent approximately half of the proceeds on gambling debt and the rest on other personal debt, including debt incurred on his girlfriend’s three credit cards. Within two weeks of receiving the loan, Purvis had used nearly all the proceeds on personal expenses, unrelated to any legitimate business.
Additionally, in June 2024, Evan Graves was sentenced to 18 months in federal prison and ordered to forfeit approximately $1.35 million and five Fort Myers properties he purchased using his fraudulently obtained EIDL. According to court records, between June 20 and July 23, 2020, Graves submitted 10 EIDL applications to the SBA on behalf of his various Fort Myers-based companies. To qualify for large loan amounts and advance funding, Graves falsely represented his companies’ number of employees, gross revenue, and lost rental income due to the COVID-19 disaster. In total, Graves’s fraudulent representations caused the SBA to approve all 10 loans and deposit approximately $1.35 million into bank accounts he controlled. Following disbursement of the EIDL funding, Graves unlawfully used the money to pay off personal credit card debt, fund personal investment accounts, satisfy mortgages, and purchase real estate.
Further, the USAO-MDFL’s Asset Recovery Division and federal seizing agencies have completed the forfeiture of more than $20 million of EIDL, UI, and PPP funds that were fraudulently obtained, depriving the fraudsters of their ill-gotten gains and recovering the proceeds for the victims. More than $18 million in additional pandemic fraud proceeds have been seized and are pending civil or criminal forfeiture.
The U.S. Attorney General has established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Through the PPP, the federal government authorized over $600 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. The EIDL program provides economic relief to small businesses that are currently experiencing a temporary loss of revenue. The MSLP provided support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. UI programs provided unemployment benefits to eligible workers who became unemployed through no fault of their own.
The criminal cases charged by the Middle District of Florida COVID-19 Fraud Task Force have been investigated by the Federal Bureau of Investigation, the U.S. Secret Service, Internal Revenue Service—Criminal Investigation, the Department of Labor—Office of Inspector General, the U.S. Postal Service, the Federal Housing Finance Agency, the Small Business Administration, the Small Business Administration—Office of Inspector General, the Federal Deposit Insurance Corporation—Office of Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Special Inspector General for Pandemic Recovery, Federal Reserve Board—Office of Inspector General, Department of Health and Human Services—Office of Inspector General, the Metropolitan Bureau of Investigation, the Tampa Police Department, the Orlando Police Department, the Jacksonville Sheriff’s Office, the Manatee County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Sarasota County Sheriff’s Office, the Winter Park Police Department, the Osceola County Sheriff’s Office, the Seminole County Sheriff’s Office, and the Orange County Sheriff’s Office. The cases are being prosecuted by Assistant United States Attorneys throughout the Middle District of Florida.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (“NCDF”) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
United States Attorney’s Office for the Middle District of Florida
COVID Fraud Criminal Cases
Charged Cases
Defendant
Charge(s)
Max. Imprisonment
Type of Fraud*
Intended Loss
Amount
Tampa Division
Ellyn Pinkney
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$40k
Nicole Bramble-King
Wire fraud
Maximum Prison Term: 20 Years
PPP
$40k
Devontaie Deravil
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$480k
Jordan Ross
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
EIDL/PPP
$1.3M
Tommy Louisville
Wire fraud
Maximum Prison Term: 20 Years
PPP
$33k
Marquett James
Alyson Marquett
Conspiracy to commit wire fraud
Maximum Prison Term: 20 Years
Wire fraud
Maximum Prison Term: 20 Years
EIDL/PPP
$96k
Willie Murray Jr.
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
HCF
$5M
Charles Driver Jr.
Conspiracy
Maximum Prison Term: 5 years
Access device fraud
Maximum Prison Term: 10 years
UI
$175k
Eric Canonico
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$2.3M
Alexander Leszczynski
Wire fraud
Maximum Prison Term: 20 Years
Bank fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$1.1M
Capree Holmes
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$159k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Tiffany Fields, Greg Pizzo, Candace Rich, Jennifer Peresie, Michael Kenneth, and Merrilyn Hoenemeyer
Orlando Division
Evan Edwards
Joshua Edwards
Conspiracy to commit bank fraud
Maximum Prison Term: 30 years
Bank fraud
Maximum Prison Term: 30 years
Visa fraud
Maximum Prison Term: 10 years
False statements
Maximum Prison Term: 30 years
PPP
$8M
Emmet Bowens
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$740k
Latresia Wilson
False statements
Maximum Prison Term: 20 Years
HCF
$2.6M
Angela Chew
Conspiracy
Maximum Prison Term: 5 Years
Bribery of a public official
Maximum Prison Term: 15 Years
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$732k
These COVID Fraud cases from the Orlando Division are being handled by AUSAs Kara Wick, Amanda Daniels, and DOJ Trial Attorney Keith Clouser
Fort Myers Division
Venera Price
Mail fraud
Maximum Prison Term: 20 Years
ERAP
$82k
Timothy Jolloff
Wire fraud
Maximum Prison Term: 20 Years
Money laundering
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP/EIDL
$2.1M
Lisa Jolloff
Money laundering
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP/EIDL
$2.1M
Diop McKenzie
Bank fraud
Maximum Prison Term: 30 years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
EIDL/PPP
$237k
These COVID Fraud cases from the Fort Myers Division are being handled by AUSA Yolande Viacava and Trent Reichling
Ocala Division
Henry Wade
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$500k
This COVID Fraud case from the Ocala Division is being handled by AUSA Hannah Nowalk
Adjudicated Cases
Tampa Division
Joseph Abdo
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$500k
Keaujay Hornsby
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Demarius Wilson
Wire fraud
Maximum Prison Term: 20 Years
PPP
$18k
Kareem Spann
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Barrett Purvis
Wire fraud
Maximum Prison Term: 20 Years
Money laundering
Maximum Prison Term: 10 Years
EIDL
$499k
Bergeline Lexis
Conspiracy to commit wire fraud
Maximum Prison Term: 20 Years
EIDL/PPP
$68k
Jailyn Holmes
Wire fraud
Maximum Prison Term: 20 Years
PPP
$28k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs, Diego Novaes, Tiffany Fields, Jennifer Peresie, Greg Pizzo, Merrilyn Hoenemeyer, and Jay Trezevant
Orlando Division
Robert Burns
Wire fraud
Maximum Prison Term: 20 Years
PPP
$57k
This COVID Fraud case from the Orlando Division is being handled by Shannon Laurie
Jacksonville Division
James Wigg
Wire Fraud
Maximum Prison Term: 20 years
PPP
$476k
These COVID Fraud cases from the Jacksonville Division are being handled by AUSA, Michael Coolican, and Tysen Duva
Ocala Division
Passion Jackson
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20k
Nicole Harding
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20k
These COVID Fraud cases from the Ocala Division are being handled by AUSA Hannah Nowalk
Sentenced Cases
Tampa Division
Louis Thornton, III
Wire fraud
Sentence Imposed: 42 months in federal prison
EIDL/PPP
$815k
Kary Stevenson
Corey Quinn
Conspiracy to commit access device fraud and aggravated identity theft
Sentence Imposed: 5 years, 10 months in federal prison (Stevenson)
Sentence Imposed:7 years in federal prison (Quinn)
UI
$1M
Bridgitte Keim
Bank fraud
Sentence Imposed: 2 years in federal prison
PPP
$588k
Wayne Ganaway
Conspiracy to commit wire fraud
Sentence Imposed: 4 years in federal prison
EIDL
$300k
Eriaius Bentley
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: One year in federal prison
UI
$3M
Rolanda Wingfield
Access device fraud, aggravated identity theft
Sentenced Imposed: 3 years in federal prison
UI
$135k
Tywon Spann
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: 6 years and 9 months in federal prison
UI
$3M
Randy Jones
Wire fraud, aggravated identity theft
Sentence Imposed: 5 years and 1 month in federal prison
EIDL/UI
$250k
Julio Lugo
Conspiracy to commit money laundering
Sentence Imposed: 7 years and 6 months in federal prison
EIDL/PPP
$4.4M
Keith Nicoletta
Conspiracy to commit money laundering
Sentence Imposed: 24 months in federal prison
PPP
$1.9M
Rosenide Venant
Conspiracy to commit money laundering
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$413k
Melinda Hernandez
Conspiracy to commit wire fraud,
wire fraud and aggravated identity theft
Sentence imposed: Three years and six months in federal prison
UI
$1.5M
Bri’antina Mills
Wire fraud and theft of government funds
Sentence imposed: 15 months in federal prison
EIDL
$10K
Jorge Gutierrez Echeverria
Wire fraud
Sentence imposed: Two years and six months in federal prison
EIDL
$150k
Omar Esquivel Bello
Wire fraud
Sentence imposed: 15 months in federal prison
EIDL
$242k
Steve Moodie
Conspiracy to commit wire fraud, wire fraud, aggravated identity theft
Sentence imposed: 5 years and 10 months in federal prison
UI
$1.5M
Richard Simpkins
Conspiracy to commit money laundering
Sentence imposed: 5 years and 10 months in federal prison
PPP
$1.9M
Devaris McClain
Conspiracy to commit wire fraud, access device fraud
Sentence imposed: 5 years and 1 month in federal prison
UI
$85k
Jalissa McDuffy
Wire fraud
Sentence imposed: 3 years supervised release with 6 months home detention
PPP
$41k
Kieanna Garrett
Wire fraud
Sentence imposed: 60 days’ imprisonment
EIDL
$40k
Marqus Willard Johnson
Bank fraud
Money laundering
Sentence imposed: 18 months’ imprisonment followed by 60 moths supervised release
PPP
$500k
Mehdi Tazi
Conspiracy, Aggravated identity theft
Sentenced imposed: 5 years imprisonment followed by4 years supervised release
UI
$1.5M
Tyree Wingfield
Conspiracy, Aggravated identity theft
Sentenced imposed: 5 years and 10 months imprisonment followed by4 years supervised release
UI
$1.5M
Dawn Ogundele
Theft of government funds
Sentence imposed: 2 years’ probation
PPP
$20k
Alexander Alli
Wire fraud conspiracy
Sentence imposed: 13 months imprisonment
EIDL
$80k
Charles Cunningham
Bank fraud
Sentence imposed: 21 months imprisonment
PPP
$800k
These COVID Fraud cases from the Tampa Division were handled by AUSAs Rachel Jones, Greg Pizzo, Tiffany Fields, Diego Novaes, Jennifer Peresie, Merrilyn Hoenemeyer, SAUSA Chris Poor, and DOJ Trial Attorney John Scanlon
Orlando Division
Daniel Johnson
Conspiracy to commit wire fraud, aggravated identity theft, unlawful transfer of firearm
Sentence Imposed: 7 years, 6 months in federal prison
UI
$2.3M
Jacquavius Smith
Possession of short-barreled rifle; felon in possession of firearm; and aggravated identity theft
Sentence Imposed: 7 years, 1 month in federal prison
PPP
$10k
Johnson Eustache
Wire fraud
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$2.2M
Joseph Harrison
Conspiracy to commit wire fraud
Sentence Imposed: 12 months in federal prison
UI
$2.1M
Tomas Ziupsnys
Conspiracy to commit bank fraud; bank fraud; aggravated identity theft
Sentence Imposed: 5 years in federal prison
PPP
$2M
Holly Urban
Conspiracy to commit bank fraud
Sentence Imposed: 30 months in federal prison
PPP
$1.5M
Joel Greenberg
Conspiracy to commit wire fraud and other offenses while on pretrial release
Sentence Imposed: 11 years in federal prison
EIDL
$430k
Don Cisternino
Wire fraud, illegal monetary transactions, and aggravated identity theft
Sentence Imposed: 8 years and 6 months in federal prison
PPP
$7.2M
Keith Ingersoll
Conspiracy to commit wire fraud, wire fraud, aggravated identity theft
Sentence imposed: 9 years, 1 month in federal prison.
EIDL
$66k
Jaheim Davis
Access device fraud and aggravated identity theft
Sentence imposed: 3 years, 6 months in federal prison.
UI
$219k
Teresa McIntyre
Conspiracy to commit wire fraud and other offenses
Sentence Imposed: 5 years’ probation
EIDL
$730k
Brian Blake
Possession of device-making equipment, access device fraud, aggravated identity theft
Sentence Imposed: 9 years and 8 months in federal prison
PPP/UI
$832k
Joseph Faubert
Bank fraud
Sentenced Imposed: 5 years probation
PPP
$778k
These COVID Fraud cases from the Orlando Division were handled by AUSAs John Gardella, Amanda Daniels, Chauncey Bratt, Emily Chang, Shannon Laurie, and Jennifer Harrington, and U.S. Attorney Roger Handberg
Jacksonville Division
Jacob Byrd
Wire fraud
Sentence Imposed: 5 years’ probation
PPP
$10k
Deconna Burke
Wire fraud
Sentence Imposed: 5 years’ probation
PPP
$20k
Desmond Williams
Wire fraud conspiracy, wire fraud
Sentenced Imposed: 5 years’ probation
PPP
$40k
Kenneth Landers
Wire fraud and illegal monetary transaction
Sentence Imposed: 1 year in federal prison followed by 1 year of supervised release
PPP
$1.4M
Christopher Daragjati
Wire fraud , Theft of government funds, and Aggravated identity theft
Sentenced imposed: 5 years’cisternino imprisonment followed by 3 years’ supervised release.
PPP
$150k
This COVID Fraud case from the Jacksonville Division was handled by AUSA Kevin Frein and Michael Coolican
Fort Myers Division
Casey Crowther
Bank fraud, false statement to a financial institution, illegal monetary transaction
Sentence Imposed: 3 years, 1 month in federal prison
PPP
$2.7M
Anthony Bruey
Amber Bruey
Conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, illegal monetary transactions
Sentence Imposed:
Anthony Bruey: 4 years, 3 months in federal prison
Amber Bruey: 4 years in federal prison
PPP/EIDL
$881k
Edrica Leann Watson
False statement to a lending institution
Sentence Imposed: 15 months in federal prison
PPP
$392k
Daniel Joseph Tisone
Wire fraud, bank fraud, money laundering, aggravated identity theft, possession of ammunition by a prohibited person
Sentence Imposed: 7 years in federal prison
PPP/EIDL/MSLP
$10.7M
Liliana Gonzalez
Wire fraud
Sentence Imposed: 5 years of probation with 18 months of home confinement
PPP
$169k
Al Clint LaRoche
Bank fraud
Sentence Imposed: Two years in federal prison
PPP
$1M
Denis Casseus
Bank fraud and illegal monetary transaction
Sentence Imposed: 2 years in federal prison followed by 3 years’ supervised release
PPP
$298k
Evan Graves
Wire fraud
Sentence Imposed: 18 months in federal prison
EIDL
$1.3M
Ismaelle Manuel
Bank fraud
Sentence Imposed: Credit for time served followed by 5 years supervised release
PPP
$280k
These COVID Fraud cases from the Fort Myers Division were handled by AUSAs Trent Reichling, Michael Leeman, Jesus M. Casa, Simon Eth, and Yolande Viacava
Ocala Division
Lavelle Harris
Wire fraud
Sentence Imposed: Two years and three months in federal prison
PPP
$1.2M
This COVID Fraud case from the Ocala Division was handled by AUSA Hannah Nowalk
Types of Fraud*
Economic Injury Disaster Loan (EIDL)
Paycheck Protection Program (PPP)
Unemployment Insurance (UI)
Main Street Lending Program (MSLP)
Emergency Rental Assistance Program (ERAP)
Health Care Fraud (HCF)
Memphis Man Sentenced for SNAP Fraud and Identity TheftRead the Press Release
Memphis, TN – Willie Williams, Jr., also known as Willie Gary, 56, of Memphis, was sentenced to 104 months in federal prison in connection with a years-long scheme of filing false applications for SNAP benefits and then selling them to members of the community. United States Attorney Kevin G. Ritz announced the sentence today.
According to information presented in court, from May 2020 through July 2023, Williams used the personally identifiable information of over 100 people to fraudulently obtain Supplemental Nutrition Assistance Program (SNAP) benefits. SNAP, formerly known as the Food Stamp Program, is a federally funded, national benefit program to help qualifying low and middle income families buy food, thus reducing hunger. Williams previously entered a guilty plea to Aggravated Identity Theft and Food Stamp Fraud.
As a part of the sentence imposed, Chief United States District Judge Sheryl H. Lipman also ordered Williams to pay $626,906 in restitution to the United States Department of Agriculture - Food and Nutrition Services and serve a three-year term of supervision after release from custody.
This case was jointly investigated by the Special Investigations Unit of the Tennessee Department of Human Services, Office of Inspector General; the United States Department of Agriculture, Office of the Inspector General; and the United States Postal Inspection Service.
United States Attorney Ritz said: “This defendant used other people’s identities to commit fraud on an important federal program. I deeply appreciate our federal and state partners for their work on this important prosecution. Our office will continue to use all the tools available to us to bring fraudsters to justice.”
“We are grateful for the partnerships with USDA/OIG, U.S. Postal Inspectors, and the U.S. Attorney’s Office for their guidance and assistance in pursuing prosecution of this SNAP Fraud case. TDHS-OIG continues to combat fraud, waste, and abuse in our public assistance programs, so that eligible recipients are protected,” said Richard Carr, Program Integrity Director for the TDHS’s Office of Inspector General.
“The United States Department of Agriculture, Office of Inspector General, actively investigates allegations of fraud in the Supplemental Nutritional Assistance Program (SNAP). This investigation serves as a warning to all individuals that SNAP Fraud and Identity Theft will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney’s Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer-funded programs,” said Miles Davis, Special Agent-in-Charge for USDA’s Office of Inspector General.
“This defendant used the U.S. Mail to take advantage of the Supplemental Nutrition Assistance Program (SNAP), which is a program developed to help families in need. This sentence will send a message that these crimes are serious and that our agency will continue to work to ensure these criminals are held accountable for their actions,” said Tommy D. Coke, Inspector in Charge for the United States Postal Inspection Service, Atlanta Division.
United States Attorney Kevin G. Ritz thanked Assistant United States Attorney Carroll L. André III and former Assistant United States Attorney Courtney Lewis, who prosecuted this case, as well as the law enforcement partners who investigated the case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
McAlester Resident Pleads Guilty to Illegal Possession of AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Arlo Christopher Jordan, age 26, of McAlester, Oklahoma, entered a guilty plea to an Information of one count of Felon in Possession of Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
The Information alleged that on or about January 11, 2024, Jordan knowingly possessed two rounds of Hornady-branded 270 ammunition after having been previously convicted of a crime punishable by more than one year in prison.
The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Federal Bureau of Investigation.
The Honorable Jason L. Robertson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Jordan was remanded into the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Michael E. Robinson represented the United States.
Marion County Man Pleads Guilty to Possessing Methamphetamine and Fentanyl with Intent to DistributeRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Terrance Maurice Washington (41, Ocala) has pleaded guilty to six counts of possession of a controlled substance (methamphetamine and fentanyl) with the intent to distribute. Washington faces a minimum mandatory sentence of 10 years, up to life, in federal prison on the five counts involving methamphetamine. On the remaining fentanyl offense, Washington faces a minimum mandatory penalty of 5 years, up to 40 years, in federal prison. His sentencing hearing is scheduled for October 18, 2024.
According to court documents, on multiple occasions between October 2023 and January 2024, Washington distributed methamphetamine and/or fentanyl to a confidential source who was cooperating with law enforcement. The drugs provided by Washington during the transactions ranged from gram quantities to upwards of a pound or more of methamphetamine. Washington bragged that the type of fentanyl he distributed was “dropping people.” Once law enforcement arrested Washington, a search at his residence revealed another two pounds of methamphetamine intended for distribution.
This case was investigated by Drug Enforcement Administration and the Marion County Unified Drug Enforcement Strike Team (UDEST). It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Man Sentenced to 30 Years in Prison for St. Louis County Cab Driver’s Fatal RobberyRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Monday sentenced a man who instigated the fatal robbery of a cab driver in Hazelwood, Missouri in 2022 to 30 years in prison.
Tywon Harris, now 21, was one of four teens involved in the robbery of Dewight Price, 54, on April 24, 2022. All four have pleaded guilty and been sentenced.
On April 24, 2022, after leaving a party in downtown St. Louis, Harris called for a cab. He and the three other teens had walked to a gas station in the 700 block of North Tucker Boulevard. Harris and Trishawn Jones were each armed with a semiautomatic handgun, but Harris gave his to Coron Dees to carry in a cross-body bag.
The four planned to take the taxi to a fake address near Jeremiah Allen’s home, then run away without paying. After learning that they would have to prepay for the ride, they began discussing plans to rob Price.
In court Monday, Assistant U.S. Attorney Jason Dunkel said Harris “took the lead in planning” the robbery, which led to everything that followed.
The teens told Price to drive to Hazelwood Central High School, thinking there would be no witnesses there at that time. Dees and Jones then robbed Price at gunpoint. After Price handed cash to Jones, Price grabbed a firearm he kept in his door. Allen warned the others that Price had a gun.
Price began to get out, but Harris opened his door, knocking Price to the ground. Jones saw Price’s gun and fired once, striking Price in the torso. The teens then ran away without aiding Price or calling for help.
Dees, now 21, and Allen, 20, pleaded guilty to a robbery charge. Jones, 20, and Harris pleaded guilty to one count of aiding and abetting in the commission of a murder.
Dees is serving a 17-year prison sentence. Jones was sentenced to 22 years in prison. Allen was sentenced to 12 ½ years in prison.
The St. Louis County Police Department and the FBI investigated the case. Assistant U.S. Attorney Jason Dunkel prosecuted the case.
Lincoln Man Sentenced for Methamphetamine DistributionRead the Press Release
United States Attorney Susan Lehr announced that Victor Aaron Gonzales, 39, of Lincoln, Nebraska, was sentenced on July 22, 2024, in federal court in Lincoln for conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine, 500 grams or more of meth mixture, and unspecified amounts of cocaine and marijuana; and possession with intent to distribute 50 grams or more of meth actual. Senior United States District Judge John M. Gerrard sentenced Gonzales to 240 months’ imprisonment on each count to run concurrently. There is no parole in the federal system. After Gonzales’s release from prison, he will begin a 5-year term of supervised release.
Information provided to law enforcement indicated Gonzales was involved in conspiracy to distribute meth, cocaine, and marijuana in the Lincoln area between February and November of 2022. He was held responsible for the distribution of more than six kilograms of met during that time.
On November 16, 2022, investigators obtained search warrants for two residences in Lincoln associated with Gonzales. Prior to executing one of the warrants at a residence which Gonzales shared with a girlfriend, investigators stopped Gonzales and searched his Jeep, finding a total of approximately 700 grams of meth mixture, later found to contain at least 660 grams of actual meth. During the search of the residence, investigators found a loaded rifle with a bump stock and ammunition along with scales, baggies, and a cash counter. On the following day, a search warrant was executed at a separate residence where Gonzales’s wife and children were living. At that location, marijuana, a scoop with meth residue, ammunition and over $69,000 in cash were found. The cash was later forfeited by the Federal Bureau of Investigation, (FBI).
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lee County Woman Sentenced to 10 Years in Prison for Role in Fentanyl and Methamphetamine Trafficking SchemeRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Christi Lynn Bien Aime (31, Alva) to 10 years in federal prison for attempting to possess with the intent to distribute 400 grams or more of fentanyl and 500 grams or more of methamphetamine. Bien Aime entered a guilty plea on March 27, 2024.
According to court records, in May 2021, Bien Aime solicited an acquaintance to receive a drug-laden package in the mail for her in exchange for cash. The package—which was shipped from California to Cape Coral, Florida, and addressed to a fake name—was intercepted in transit by agents from the Drug Enforcement Administration (DEA) before reaching its final destination. The package contained approximately 3½ kilograms of fentanyl, approximately 1½ kilograms of methamphetamine, and approximately one kilogram of p-Fluorofentanyl (a fentanyl analogue). DEA agents arranged to conduct a “controlled delivery” of the package and deliver it—after it was emptied of any real controlled substances—as it was originally intended to be delivered.
After an undercover DEA agent delivered the package to the residence in Cape Coral, Bien Aime’s acquaintance accepted the package and delivered it to a nearby gas station as she was instructed by Bien Aime. At the gas station, Bien Aime paid her acquaintance and opened the package, before being approached and detained by DEA agents.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Simon Eth.
Leader of $200 Million Ponzi Scheme Pleads Guilty to Mail and Wire Fraud Conspiracy and Faces 20 Years’ ImprisonmentRead the Press Release
MIAMI – Johanna Michely Garcia, 41, from Broward County, Fla., was the former Chief Executive Officer of MJ Capital Funding, LLC. On July 16, Garcia pled guilty to conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Sections 1349, 1343, and 1341. The conspiracy involved Garcia leading others, including Pavel Ramon Ruiz Hernandez, in an investment Ponzi fraud scheme totaling approximately $190,700,000.
According to court records, Garcia’s MJ Capital Funding was purportedly engaged in providing merchant cash advances, or MCAs, a type of short-term financing typically used by small businesses. Beginning in October 2020, and continuing through August 2021, Garcia conspired with others to fraudulently solicit money from investors to fund MJ Capital Funding’s MCAs. Garcia and her co-conspirators recruited other people to solicit investors for MJ Capital Funding’s investment offering and paid those recruiters commissions.
Court records state that Garcia and her co-conspirators, directly and indirectly, made false statements and fraudulent representations to investors concerning the nature of the MJ Capital Funding investment and the use of investor funds. Garcia and others falsely told investors that their money would be used to fund MCAs and that investor returns would be paid from the profits of MJ Capital Funding’s MCA business. However, the company made few loans and failed to earn anywhere near the profits it needed to pay the investors the promised returns. As a result, Garcia paid investors by running a large Ponzi fraud scheme, paying existing investors using new investor funds while misappropriating millions of dollars for her own personal benefit. Of the nearly $200 million raised, investors lost nearly $90 million.
According to Court records, after the FBI and Securities and Exchange Commission (SEC) effectively shut down MJ Capital Funding, in the fall of 2021, Garcia, Ruiz Hernandez, and others began operating a new Ponzi scheme that was identical to the MJ Capital Funding criminal enterprise. Garcia led this new scheme from its inception, up until her arrest, and after, while in Bureau of Prisons custody. The entities utilized by Garcia and her co-conspirators for the new fraud scheme included New Beginning Global Funding LLC, New Beginning Capital Funding LLC, Lion Heart Capital Group L.L.C., GMR Remodeling LLC, and Group Management LLC. Similar to the MJ Capital Funding fraud, Garcia and her partners told victims that their money would be used to fund commercial loans. In truth, the money raised was used to pay off previous investors, and fund Garcia and her coconspirators' lifestyles.
Garcia’s sentencing hearing is currently set for Sept. 20, 2024. U.S. District Court Judge Jose E. Martinez will determine Garcia's sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Ruiz Hernandez was charged in August 2022, pled guilty in April 2023, and was sentenced in September 2023 to 110 months’ imprisonment, followed by three years of supervised release.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Special Agent in Charge Jeffrey B. Veltri, FBI Miami, made the announcement.
FBI Miami investigated this case. SEC’s Miami Regional Office and Florida’s Office of Financial Regulation provided invaluable assistance. Assistant U.S. Attorney Roger Cruz is prosecuting the case. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
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 23-cr-20350.
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Lawton Man Sentenced to Serve 11 Years in Federal Prison for Possession of Drugs and FirearmRead the Press Release
OKLAHOMA CITY – SKYLER LEE PASLEY, 35, of Lawton, has been sentenced to serve 132 months in federal prison for possession of methamphetamine with intent to distribute and illegal possession of a firearm after a previous felony conviction, announced U.S. Attorney Robert J. Troester.
On September 6, 2023, Pasley was charged by Superseding Information with possession of methamphetamine with intent to distribute and with being a felon in possession of a firearm. An affidavit in previously filed criminal complaint alleges that on September 15, 2022, officers with the Lawton Police Department observed a vehicle driving recklessly. A state-certified K-9 was deployed during a traffic stop on the vehicle and alerted to the presence of drugs inside. During a subsequent search of his person, Pasley, the driver and sole occupant of the vehicle, was found to have a firearm in his waistband, methamphetamine in his sock, and various other drugs, including cocaine and fentanyl, wrapped in his hair.
Public record reflects that Pasley has a previous felony conviction for embezzlement in Comanche County District Court case number CF-2006-609. He was also convicted of possession of marijuana with intent to distribute, three counts of being a felon in possession of a firearm, interference with commerce by robbery, and carrying and brandishing a firearm during a crime of violence in Western District of Oklahoma District Court case number CR-08-289-R.
On September 15, 2023, Pasley pleaded guilty to the Superseding Information, admitting to possession of methamphetamine with intent to distribute and to possessing a firearm despite his felony convictions.
At the sentencing hearing on July 17, 2024, Chief U.S. District Judge Timothy D. DeGiusti sentenced Pasley to serve 132 months in federal prison, followed by five years of supervised release. In announcing the sentence, the Court noted the need to deter similar conduct and to protect the public.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lawton Police Department. Assistant U.S Attorney Danielle M. Connolly prosecuted the case.
Reference is made to public filings for additional information.
Last Defendant Pleads Guilty in Bank Fraud Conspiracy Targeting Capital Region Credit UnionRead the Press Release
ALBANY, NEW YORK – Evan Cutler, age 25, of Queensbury, New York, pled guilty today to conspiring to commit bank fraud and aggravated identity theft. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
In a plea before United States District Judge Anne M. Nardacci, Cutler admitted that between February and October 2022, he organized a conspiracy to defraud SEFCU by, among other things, applying for loans using stolen identities of other people, and withdrawing the loaned money in cash. Cutler admitted he and other members of the conspiracy applied for loans in other people’s names using fake New York driver licenses with their photographs but bearing the names and dates of birth of other people, and the proceeds were given to co-conspirator Allahson Allah. The conspirators also obtained customer account information from Caeshara Cannon, of Albany, a former Member Service Manager at SEFCU, and used that information to create counterfeit checks, which were presented for negotiation at SEFCU branches in the Northern District of New York.
Cutler further admitted that the conspiracy netted $113,800 in fraudulent cash withdrawals.
Cutler was previously charged by an indictment, along with Allahson Allah, Davon Parson, and Dnauticah Taylor-Sterman, all of Albany. Cutler is the last defendant in the conspiracy to plead guilty. Cannon has pled guilty as well.
At sentencing on November 19, 2024, Cutler faces at least 2 years and up to 32 years in prison, a fine of up to $1.25 million, and a supervised release term of up to 5 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.
HSI investigated the case, with assistance from the Bethlehem Police Department. Assistant United States Attorney Benjamin S. Clark is prosecuting this case.
Large-Scale Counterfeit Pill Manufacturer Charged with Drug Offenses and Pandemic Loan FraudRead the Press Release
BOSTON – A Cambridge man was arrested on July 18th in connection with an ongoing investigation of counterfeit pills containing fentanyl and methamphetamine. Over the course of the past four years, the defendant is alleged to have been responsible for the manufacturing of over 200 kilograms of counterfeit pills.
Schuyler Oppenheimer, a/k/a “SK,” a/k/a “Michael Sylvain,” 33, of Cambridge was charged with possession of 500 grams and more of a mixture and substance containing a detectable amount of methamphetamine and two counts of wire fraud. The defendant appeared in U.S. District Court and was detained pending further court hearings.
“The sprawling manufacturing of illegal drugs alleged in this case is as dangerous as it is appalling. It is alleged that Mr. Oppenheimer illegally manufactured hundreds of kilograms of lethal drugs in order to continue to saturate our streets with deadly drugs,” said Acting United States Attorney Joshua S. Levy. “Our office is dedicated to stopping the flow of fentanyl into our communities, which, as evidenced by these charges, includes shipments from China. This case is yet another example of the critical collaboration between federal law enforcement partners and the Massachusetts State Police to prevent illegal narcotics from reaching our streets.”
“The FBI’s North Shore Gang Task Force has arrested Schuyler Oppenheimer – an alleged large-scale counterfeit pill manufacturer – who’s accused of producing a massive number of pills that looked like regular prescription Adderall or Percocet, but in reality, contained methamphetamine or fentanyl. Each alleged sale was a potentially deadly transaction for customers – or anyone else who stumbled upon these deceptive drugs,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Drug dealers making money off the misery of others is bad enough, let alone this dangerous bait and switch. Taking Oppenheimer off the street should send a message that the FBI and our law enforcement partners will not cede our cities to drug manufacturers, traffickers, and other violent criminals. We’re working hard every day to make our communities safer.”
“Fentanyl and methamphetamine being distributed in the form of fake pills is causing tremendous damage to our community,” said Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “Those who distribute these drugs are endangering the safety of the citizens of the Massachusetts. The DEA will continue to work each day alongside our law enforcement partners to identify those who are responsible for distributing deadly drugs.”
“The defendant is accused of crimes that reflect his alleged disregard for the public's safety and wellbeing. He allegedly spearheaded a clandestine lab operation that included evidence of fentanyl precursors, and bore the potential to destroy countless lives,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England. “HSI New England is proud to stand alongside our law enforcement partners at the state, local, federal levels in confronting the deadly drug epidemic directly and forcefully.”
“Oppenheimer’s sophisticated operation has shown the utter disregard for the people in our communities.” said John Mawn, Colonel of the Massachusetts State Police. “I applaud the tireless work by the members of the MSP and our Law Enforcement partners assigned to the Task Force. Oppenheimer’s arrest will hopefully make a significant impact to the affected communities and stop the destruction of lives.”
Oppenheimer is alleged to be technically skilled in the chemical processes used in the synthesis of fentanyl, the compounding of controlled substances for distribution, and the manufacturing of counterfeit pills. As alleged in court documents, recipes, pill press molds used in the manufacturing process, documents and invoices demonstrating that Oppenheimer purchased numerous pill presses and parts for pill presses from online vendors were seized. It also alleged multiple packages shipped from China to Oppenheimer and various female associates of Oppenheimer that contained pill press parts, were also seized.
According to court documents, through the review of orders and invoices from companies selling powders and other substances used in the pill manufacturing process, it is alleged that since 2019, Oppenheimer obtained over 200 kilograms of these filler powders. According to the recipes recovered during the investigation, when manufactured into counterfeit pills, 200 kilograms of filler powder equates to millions of counterfeit pills containing fentanyl and methamphetamine.
Additionally, Oppenheimer is alleged to have communicated directly with an illegal chemical supplier based in China. During this conversation, Oppenheimer allegedly inquired about the availability of controlled substances and fentanyl precursor chemicals and sought to purchase kilogram quantities of these substances. Fentanyl precursor chemicals are substances that can be used to synthesize raw fentanyl in a laboratory setting. It is alleged that Oppenheimer sought to synthesize his own fentanyl through the importation of these fentanyl precursor chemicals.
Oppenheimer is also alleged to have obtained over $40,000 through two fraudulent Paycheck Protection Program loan applications that were submitted in April 2021 over the internet. Oppenheimer is also alleged to have submitted false statements concerning his income through self-employment for the 2019 tax years and provided false tax return documents substantiating that income.
During the execution of a search warrant on Parker Street in Cambridge, over five kilograms of suspected counterfeit Adderall pills containing methamphetamine and a loaded firearm were seized. Based on prior felony convictions, Oppenheimer is prohibited from possessing firearms.
The charge of possession with intent to distribute 500 grams or more of methamphetamine provides for a sentence of at least ten years and up to life in prison, five years and up to life of supervised release and a fine of up to $10,000,000. The charge of wire fraud provided for a maximum penalty of up to 20 years, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.Acting US Attorney Levy; FBI SAC Cohen; DEA Acting SAC Belleau; HSI SAC Krol; Jennifer B. De La O, Director of Field Operations, U.S. Customs and Border Protection; and Interim Colonel Mawn, Jr of the Massachusetts State Police made the announcement. Valuable assistance was provided by the Cambridge Police Department. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime and Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kingsport Man Sentenced to over 21 Years in Prison After Jury Trial ConvictionRead the Press Release
GREENEVILLE, Tenn. – On July 22, 2024, Eric Eugene Robinson, 55, of Kingsport, Tennessee, was sentenced to 262 months imprisonment by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville. Following his incarceration, Robinson will be on supervised release for a period of five years.
Robinson was convicted by a federal jury of being a felon in possession of a firearm in violation of 18 U.S.C. §922(g)(1), following a two-day trial in April 2024.
The evidence and testimony presented during the trial showed that in early September 2020, surveillance was conducted at the Dorothy Street residence, which determined that Robinson, a convicted felon, was in possession of a firearm. A search warrant was executed at the residence by the Kingsport Police Department and, during the search, a 9mm pistol, with a loaded magazine, was located beneath a couch in the living room of the residence. An agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) testified that the firearm was manufactured in Brazil and imported into Bainbridge, Georgia, before ultimately arriving in Tennessee.
United States Attorney Francis M. Hamilton, III of the Eastern District of Tennessee made the announcement.
Kingsport Police Department officer Mike Slater, formerly a Task Force Officer assigned to the ATF, led the investigation with assistance from the Tennessee Bureau of Investigation and the ATF.
Assistant United States Attorney B. Todd Martin and Special Assistant United States Attorney AnCharlene Davis represented the United States at trial.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options for prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crimes face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
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Keystone Heights Multi-Convicted Felon Sentenced to 5 Years for Possessing AmmunitionRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced Allen Tereal Grimes (34, Keystone Heights) to 5 years in federal prison for possessing ammunition as a convicted felon. Grimes was also ordered to forfeit the ammunition, which was traceable to his offense. Grimes made his initial appearance in federal court on March 4, 2024, and the court ordered him detained. Grimes entered a guilty plea on April 10, 2024.
According to court records, on August 11, 2023, Grimes was in possession of Winchester 9mm ammunition, among other ammunition. At the time of the incident, Grimes had seven prior felony convictions, including battery on a law enforcement officer, resisting arrest with violence, fleeing and eluding a police officer, felony battery, and assault with intent to commit to a felony. As a previously convicted felon, Grimes is prohibited from possessing ammunition under federal law.
This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It was prosecuted by Assistant United States Attorneys Kevin C. Frein and Kirwinn Mike.
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.
Kentucky Man Charged with Federal Hate Crime and Firearm Offenses for Threats Against Palestinian AmericanRead the Press Release
A Kentucky man was arrested today and charged with federal hate crime and firearms offenses for threatening a Palestinian American man with a loaded gun.
According to the indictment that was unsealed this morning, on or about March 28, Melvin P. Litteral III used force or the threat of force to intimidate and interfere with the victim – a Palestinian American man and practicing Muslim identified in the indictment by the initials O.S. – because of O.S.’s race, color, religion and/or national origin, and because O.S. was enjoying the goods, services and facilities of a local restaurant. The indictment also includes a weapons charge, alleging that the defendant brandished a firearm during the offense.
If convicted of the hate crime offense, Litteral faces a maximum penalty of 10 years in prison and a fine of up to $250,000. If convicted of the firearms charge, Litteral faces a mandatory minimum penalty of seven years in prison, to run consecutively to any sentence imposed for the hate crime offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.
The FBI Louisville Field Office is investigating the case.
Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Katherine G. DeVar of the Civil Rights Division are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kanawha County Man Sentenced to Prison for Conspiring to Fraudulently Obtain Unemployment and COVID-19 BenefitsRead the Press Release
CHARLESTON, W.Va. – Joshua Lambert, 36, of St. Albans, was sentenced today to six months in prison, to be followed by three years of supervised release, and ordered to pay $10,616 in restitution for conspiring to steal public money, property or records. Lambert admitted that he fraudulently obtained $10,616 in unemployment benefits, including COVID-19 supplementary funds, while in state and federal custody.
According to court documents and statements made in court, Lambert had been receiving legitimate unemployment benefits from June 2020 until on or about September 28, 2020, when he was incarcerated on state and federal charges. Lambert admitted that he conspired with a family member to receive unemployment benefits fraudulently while he was incarcerated. The family member accessed the WorkForce West Virginia website from a St. Albans residence for 32 consecutive weeks and falsely certified that Lambert was entitled to unemployment benefits. WorkForce West Virginia administers the unemployment compensation program for the State of West Virginia. Lambert admitted that he was not entitled to the benefits because he was incarcerated and unavailable to work.
Lambert was released from incarceration on or about April 8, 2024. Lambert admitted that he fraudulently applied for and received more than $10,616 in unemployment compensation benefits from at least September 2020 through at least May 2022. Lambert further admitted that the unemployment benefits he fraudulently obtained included supplementary funds provided by the Federal Pandemic Unemployment Compensation Program (FPUC) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Lambert has fully paid the $10,616 in court-ordered restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the WorkForce West Virginia Integrity Section and the Litigation Financial Analyst with the U.S. Attorney’s Office.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Andrew J. Tessman prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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.
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. 2:24-cr-39.
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Georgia Man with Seven Prior Felony Convictions Pleads Guilty to Armed Drug Trafficking ChargesRead the Press Release
ATHENS, Ga. – A Northeast Georgia resident with a lengthy criminal history pleaded guilty to armed drug trafficking charges in federal court today.
Mandrell Antwoin Hull, 43, of Winterville, Georgia, pleaded guilty to one count of possession with intent to distribute cocaine and one count of possession of a firearm by a convicted felon before U.S. District Judge Tilman E. Self, III on July 22. Hull faces a minimum mandatory of 15 years in prison up to a maximum sentence of life in prison. His sentencing date will be determined by the Court. There is no parole in the federal system.
“Repeat offenders who continually disregard the law and whose actions harm our communities must be held accountable,” U.S. Attorney Peter D. Leary. “Our office will continue to do everything in our power to support the efforts of local, state and federal law enforcement to uphold the law and keep our neighborhoods safe.”
"Criminals like Hull continue to plague our communities with blatant disregard for the safety of others and reckless indifference to the law. It is only through our local and federal partnerships that we are able to put a stop to these violent repeat offenders,” said Robert Gibbs, Senior Supervisory Special Agent of FBI Atlanta's Athens office. “This case is another example of how the FBI and our law enforcement partners are dedicated to keeping the streets of Georgia safe for everyone in our community.”
According to court documents and statements referenced in court, Hull was serving supervised release for a 2018 federal conviction for marijuana distribution in Case No. 3:17-CR-24-CAR. On April 11, 2023, officers with the United States Probation Office (USPO) reached out to the FBI in Athens to request their assistance in conducting a search of Hull’s residence in Oglethorpe County, Georgia, because USPO believed that Hull was storing illegal drugs inside his residence. That same day, agents and officers searched his Winterville property and located cocaine, $32,826 in drug proceeds and a loaded 9mm pistol. Records show that Hull has five prior felony convictions in the Superior Court of Athens-Clarke County and one prior felony conviction in the Superior Court of Gwinnett County, in addition to his prior federal felony conviction for which he was serving supervised release at the time of this crime. It is illegal for a convicted felon to possess a firearm.
This case is a 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 of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities and measuring the results.
The case was investigated by the FBI Athens Resident Agency Middle Georgia Safe Streets Gang Task Force and the Oglethorpe County Sheriff’s Office.
Assistant U.S. Attorney Mike Morrison is prosecuting the case for the Government.