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Friday 12 July 2024
California Man Pleads Guilty to Federal Cares Act FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that NIPUN DESAI (“DESAI”), formerly of Hammond, La., but now a California resident, age 55, pleaded guilty on July 10, 2024 before U.S. District Judge Wendy B. Vitter to making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
On March 27, 2020, the President of the United States signed into law the CARES Act, which provided emergency assistance, administered by the United States Small Business Administration (SBA), to small business owners affected by the Coronavirus (COVID-19) pandemic. The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL) program.
According to court records, on or about January 25, 2021, DESAI made false statements to an approved lender in order to obtain an SBA backed PPP loan in the amount of $146,947.50 for the Fairbridge Hotel in Metairie, LA. At the time of the loan application, DESAI’s hotel was permanently closed and had no employees or payroll.
DESAI is to be sentenced on October 8, 2024. At that time, he faces up to five years in prison, a fine of up to $250,000, up to three years of supervised release, and the payment of a $100 mandatory special assessment fee.
For more information on the Department of Justice’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.
As part of the Pandemic Response Accountability Committee (PRAC) Task Force, this investigation was conducted by U.S. Department of Veterans Affairs - Office of Inspector General. The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
U.S. Attorney Evans praised the work of the U.S. Department of Veterans Affairs - Office of Inspector General, the Department of Labor – Office of Inspector General, and the U.S. Bankruptcy Trustee’s Office (Region 5) in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.
Buffalo man who threatened to blow up the VA sentencedRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Demont Coston, 56, of Buffalo, NY, who was convicted of assault upon a federal employee, was sentenced to time served by U.S. Magistrate Judge Michael J. Romer.
Assistant U.S. Attorney Andrew J. Henning, who handled the case, stated that on September 12, 2023, Coston called the U.S. Veterans Affairs Crisis Line and made repeated threats to blow-up the Buffalo VA facility. Later that same day Coston again called the VA Crisis Line and stated that “I should go blow... I should go burn the building down.” On September 14, 2023, Coston texted the Crisis Line that “The VA haven't done (expletive) for me in 30 years, it’s time to get rid of it, by any means necessary.” Coston also said that he would be “Taking out all V.A. facilities, but I have 1 n mind first” and “I'm in DC, near the main VA ha ha ha good, I know where to hit them.”
The sentencing is the result of an investigation by the VA Medical Center Police, under the direction of Chief Richard King and the VA Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Christopher Algieri.
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Broward County Man Sentenced to Prison for Making False Statements During a Firearms Purchase and Illegally Possessing a FirearmRead the Press Release
MIAMI – Robert Zildjian Mondragon, 31, of Margate, Fla., was sentenced to 33 months in prison, to be followed by 3 years of supervised release, after being convicted of making a false statement during a firearm purchase and possession of a firearm by an unlawful user of a controlled substance. Mondragon was sentenced today by U.S. District Judge William P. Dimitrouleas during a hearing in Fort Lauderdale.
According to the specific findings of fact issued by the Court, on April 9, 2024, Mondragon stated in a Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Firearms Transaction Record, specifically ATF Form 4473, on June 18, 2019, that he was not an unlawful user of marijuana. Mondragon made the false statement in connection with the attempted purchase of a Radical Arms rifle in Miami with the intent to deceive the licensed firearm dealer and that false statement was material to the lawfulness of the sale. The Firearms Transaction Record, Form 4473, had in bold print a warning that the use or possession of marijuana remains a federal violation and it is unlawful even if marijuana had been legalized or decriminalized for medical purposes in the applicant’s state. Prior to that attempted purchase, Mondragon had established a years-long pattern of unlawful marijuana use.
On Nov. 14, 2021, Mondragon was photographed with another firearm. The year before, his phone contained references to weed on seventy-one days.
The sentencing hearing and related court filings referenced additional information regarding Mondragon’s conduct and background. As was addressed in court, since 2013, Mondragon has made multiple threats to commit a mass shooting. In 2018, the Florida Legislature enacted the Marjory Stoneman Douglas High School Public Safety Act, which allowed members of law enforcement to seek a court order restricting firearm and ammunition possession by a person who poses a danger to themselves or others, and on March 29, 2018, City of Corals Springs officers sought a temporary risk protection order against Mondragon which was granted after a hearing. That order remains in place and was in effect when he attempted to purchase a firearm in June 2019.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the ATF, Miami Field Office, and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) made the announcement.
ATF and BSO investigated the case. Assistant U.S. Attorneys Anita White and Ajay Alexander prosecuted it. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
This prosecution is a part of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through the PSN program, a broad spectrum of law enforcement and community stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.
If you have information about a possible threat and/or the unlawful possession of a firearm, contact your local law enforcement agency (911).
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-60196.
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Boston Man Sentenced to 21 Months in Prison for Firearm Trafficking ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced today for conspiring to illegally transport firearms from Alabama into Massachusetts.
Kobe Smith, 25, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 21 months in prison and three years of supervised release. In March 2024, Smith pleaded guilty to one count of conspiracy to illegally transport firearms. Smith was indicted by a federal grand jury in July 2022 along with co-defendants Jahquel Pringle, Jarmori Brown and Brandon Moore.
Smith, Pringle, Brown and Moore conspired to obtain at least 24 firearms from Alabama, where Moore lived, and then transport them to Boston. Smith would place orders with Moore for firearms. In January 2020, after making arrangements with Smith, Moore personally delivered at least one firearm obtained in Alabama to Pringle in Boston. In February 2020, Smith attempted to obtain one or two additional firearms from Moore. In two separate trips in July and August 2020, Pringle traveled from Boston to Alabama on a commercial bus to pick up firearms from Moore and then transported them, concealed in luggage, back to Boston. Pringle was joined by Brown for the August trip. At least seven of the firearms have been recovered from the streets of Boston and surrounding communities.
In July 2023, Brown was sentenced to 18 months in prison and three years of supervised release. In May 2024, in the Middle District of Alabama, Moore was sentenced to 18 months in prison and three years of supervised release. In June 2024, Pringle was sentenced to 42 months in prison and three years of supervised release.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. This case was prosecuted by the Major Crimes Unit.
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.Beckley Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Liteef Hughes, 43, of Beckley, was sentenced today to eight years in prison, to be followed by three years of supervised release, for the distribution of cocaine base, also known as “crack.”
According to court documents and statements made in court, on April 28, 2022, Hughes sold a quantity of crack to a confidential informant at his Beckley residence. On May 5, 2022, law enforcement officers executed a search warrant at Hughes’ residence and found quantities of cocaine and crack and $1,667. Hughes admitted to possessing the cocaine and crack, and further admitted that the $1,667 was proceeds obtained from drug trafficking. The investigation revealed that Hughes had distributed cocaine for approximately two and a half years.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-105.
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Beckley Man Sentenced to 10 Years in Prison for Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Steven Marvin Lawson Jr., also known as “Bali,” 30, of Beckley, was sentenced today to 10 years in prison to run consecutively to his current state sentence, which includes a life term with no chance for parole, for being a felon in possession of a firearm.
According to court documents and statements made in court, on September 28, 2020, Lawson fatally shot the 17-year-old mother of his child with a Springfield Armory model XD .45-caliber pistol at a residence in Jumping Branch. With another individual, Lawson dismembered the minor female’s body following the murder and discarded the body parts across several states.
Lawson falsely told investigators that he dismantled the firearm, which was stolen, and threw the parts away at different locations. Investigators recovered the firearm intact from the mother of Lawson’s other children at her Georgia residence, where Lawson had hidden the firearm in a bag of laundry. Analysis by the West Virginia State Police Forensic Laboratory confirmed that the recovered firearm fired the bullet that killed the minor female.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Lawson was prohibited from possessing a firearm because of his prior felony convictions for two counts of theft by receiving stolen property in Gwinnett County, Georgia, Superior Court on May 13, 2016.
Lawson has a long criminal history dating from when he was 17 that also includes more than a half-dozen convictions for misdemeanor offenses. A Summers County Circuit Court jury found Lawson guilty of first-degree murder, child abuse resulting in death by a parent, guardian or custodian, concealment of a dead body and conspiracy to conceal a dead body in the death of the 17-year-old on March 15, 2024.
“If Mr. Lawson had not possessed a loaded firearm that he knew he was not allowed to possess, the 17-year-old minor might still be alive,” said United States Attorney Will Thompson. “He then helped to dismember and discard her as if she was a disposable object and not a person who mattered. He also showed a complete disregard for how his actions would devastate her family and loved ones, including his own child with her. Today’s sentence reflects the heinous nature of this offense, is appropriate given Mr. Lawson’s repeated criminal conduct, and protects the public from further crimes by him.”
Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the West Virginia State Police-Bureau of Criminal Investigation (BCI).
“This case serves as a grim reminder that convicted felons and domestic abusers should not possess firearms,” said ATF Special Agent in Charge Shawn Morrow of the Louisville Division which covers all of West Virginia. “A 17-year-old mother has been taken from her family, and our community suffered another senseless violent crime. We hope this sentence brings some sense of justice and sends a very clear message that ATF and our partners will use every tool available to protect our communities."
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Monica D. Coleman, Kathleen Robeson and Kristin F. Scott prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-217.
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Armstrong Group Agrees to Pay $6.5M to Settle False Claims Act Allegations Relating to Subsidies Under the Federal Communications Commission’s High-Cost ProgramRead the Press Release
Butler, Pennsylvania, based Armstrong Group has agreed to pay $6.5 million to resolve allegations that it violated the False Claims Act by knowingly violating the Federal Communications Commission’s (FCC) rules governing the agency’s High-Cost Program and submitting improper costs in order to inflate the subsidies it received from the federal Universal Service Fund (USF).
The FCC established the USF to help ensure that all people in the United States have access to rapid, efficient, nationwide communications service with adequate facilities at reasonable charges. The High-Cost Program is one of four programs that comprise the USF and aims to ensure that consumers in rural, insular, and high-cost areas have access to modern communications networks capable of providing reasonably comparable voice and broadband service, both fixed and mobile, at rates that are reasonably comparable to those in urban areas. In pursuit of that goal, the High-Cost Program provides federal funds to qualified eligible telecommunications carriers, including incumbent local exchange carriers (ILECs), that receive subsidies to expand connectivity infrastructure within the United States.
The United States alleged that, between 2008 and 2023, five ILECs owned by Armstrong Group (Armstrong Telephone Company – Maryland, Armstrong Telephone Company – New York, Armstrong Telephone Company – Northern Division, Armstrong Telephone Company – Pennsylvania, and Armstrong Telephone Company – West Virginia) failed to comply with FCC regulations that governed what costs they were allowed to report for purposes of claiming subsidy payments from the government, and as a result these companies received greater subsidy payments than those to which they were entitled.
“Telecommunications providers that seek to participate in important FCC programs like the High-Cost Program must comply with applicable rules, including those governing how they report the costs used to calculate their subsidies,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to protect the integrity of the FCC’s operations and services.”
“When providers like the Armstrong Group fail to follow federal law and FCC regulations, they jeopardize not only critical government programs but also consumers’ ability to access a modern lifeline — rapid, reliable, and efficient telecommunications services,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “Today’s settlement demonstrates our office’s dedication to ensuring the business community plays fairly, particularly with respect to public funds, and further assures our rural neighbors throughout the district that we will work vigorously to protect their access to essential services that many people take for granted.”
“In the digital age, it is critical for everyone, everywhere to have access to reliable, high-speed broadband, including in rural and underserved areas. That is why we are laser-focused on pursuing waste, fraud, and abuse in these critical programs and ensuring that available funds flow to companies that play by the rules,” said General Counsel Michele Ellison for the FCC. “I applaud the continuing collaboration among the Office of General Counsel, the Office of the Inspector General, and the U.S. Department of Justice toward this important objective.”
“Carriers receiving support from the USF or any FCC benefit program must understand that actions undermining the claims process will not be tolerated and will be investigated vigorously,” said Inspector General Fara Damelin of the FCC. “The FCC Office of Inspector General will continue to work with our law enforcement partners and the FCC to ensure the integrity of the FCC’s programs. I would like to thank the Department of Justice and the United States Attorney’s Office for the Western District of Pennsylvania for their unrelenting dedication to this case.”
Contemporaneous with the civil settlement, Armstrong Group has entered into a robust corporate compliance agreement with the FCC, requiring Armstrong to adopt concrete changes in the company’s internal controls and implement comprehensive oversight and monitoring mechanisms.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by James Ranko, Armstrong Group’s former Controller. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any subsequent recovery. The qui tam case is captioned U.S. ex rel. Ranko v. Armstrong Group of Companies, et. al., Case No. 17-1052 (W.D. Pa.). The whistleblower will receive $1,267,500 as his share of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Western District of Pennsylvania and the FCC’s Office of Inspector General, with assistance from the FCC’s Office of General Counsel.
Senior Trial Counsel Benjamin C. Wei and Assistant U.S. Attorney Paul E. Skirtich for the Western District of Pennsylvania handled the matter. Investigative Attorneys Elliot Lowenstein and Peter Feinberg of the FCC Office of Inspector General provided investigation support.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementArmstrong Group Agrees to Pay $6.5M to Settle False Claims Act Allegations Relating to Subsidies Under the Federal Communications Commission’s High-Cost ProgramRead the Press Release
Butler, Pennsylvania, based Armstrong Group has agreed to pay $6.5 million to resolve allegations that it violated the False Claims Act by knowingly violating the Federal Communications Commission’s (FCC) rules governing the agency’s High-Cost Program and submitting improper costs in order to inflate the subsidies it received from the federal Universal Service Fund (USF).
The FCC established the USF to help ensure that all people in the United States have access to rapid, efficient, nationwide communications service with adequate facilities at reasonable charges. The High-Cost Program is one of four programs that comprise the USF and aims to ensure that consumers in rural, insular, and high-cost areas have access to modern communications networks capable of providing reasonably comparable voice and broadband service, both fixed and mobile, at rates that are reasonably comparable to those in urban areas. In pursuit of that goal, the High-Cost Program provides federal funds to qualified eligible telecommunications carriers, including incumbent local exchange carriers (ILECs), that receive subsidies to expand connectivity infrastructure within the United States.
The United States alleged that, between 2008 and 2023, five ILECs owned by Armstrong Group (Armstrong Telephone Company – Maryland, Armstrong Telephone Company – New York, Armstrong Telephone Company – Northern Division, Armstrong Telephone Company – Pennsylvania, and Armstrong Telephone Company – West Virginia) failed to comply with FCC regulations that governed what costs they were allowed to report for purposes of claiming subsidy payments from the government, and as a result these companies received greater subsidy payments than those to which they were entitled.
“Telecommunications providers that seek to participate in important FCC programs like the High-Cost Program must comply with applicable rules, including those governing how they report the costs used to calculate their subsidies,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to protect the integrity of the FCC’s operations and services.”
“When providers like the Armstrong Group fail to follow federal law and FCC regulations, they jeopardize not only critical government programs but also consumers’ ability to access a modern lifeline — rapid, reliable, and efficient telecommunications services,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “Today’s settlement demonstrates our office’s dedication to ensuring the business community plays fairly, particularly with respect to public funds, and further assures our rural neighbors throughout the district that we will work vigorously to protect their access to essential services that many people take for granted.”
“In the digital age, it is critical for everyone, everywhere to have access to reliable, high-speed broadband, including in rural and underserved areas. That is why we are laser-focused on pursuing waste, fraud, and abuse in these critical programs and ensuring that available funds flow to companies that play by the rules,” said General Counsel Michele Ellison for the FCC. “I applaud the continuing collaboration among the Office of General Counsel, the Office of the Inspector General, and the U.S. Department of Justice toward this important objective.”
“Carriers receiving support from the USF or any FCC benefit program must understand that actions undermining the claims process will not be tolerated and will be investigated vigorously,” said Inspector General Fara Damelin of the FCC. “The FCC Office of Inspector General will continue to work with our law enforcement partners and the FCC to ensure the integrity of the FCC’s programs. I would like to thank the Department of Justice and the United States Attorney’s Office for the Western District of Pennsylvania for their unrelenting dedication to this case.”
Contemporaneous with the civil settlement, Armstrong Group has entered into a robust corporate compliance agreement with the FCC, requiring Armstrong to adopt concrete changes in the company’s internal controls and implement comprehensive oversight and monitoring mechanisms.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by James Ranko, Armstrong Group’s former Controller. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any subsequent recovery. The qui tam case is captioned U.S. ex rel. Ranko v. Armstrong Group of Companies, et. al., Case No. 17-1052 (W.D. Pa.). The whistleblower will receive $1,267,500 as his share of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Western District of Pennsylvania and the FCC’s Office of Inspector General, with assistance from the FCC’s Office of General Counsel.
Senior Trial Counsel Benjamin C. Wei and Assistant U.S. Attorney Paul E. Skirtich for the Western District of Pennsylvania handled the matter. Investigative Attorneys Elliot Lowenstein and Peter Feinberg of the FCC Office of Inspector General provided investigation support.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementArmed Rocky Mount Narcotics Trafficker Who Fired Shots Sentenced to 50 YearsRead the Press Release
RALEIGH, N.C. – A Rocky Mount cocaine dealer was sentenced to 600 months in federal prison for conspiracy to distribute cocaine and possession of a firearm by a felon. On April 11, 2024, Andre Donnell Downey, age 37, pled guilty to the charges.
“This high-volume drug dealer, who previously served a federal sentence for trafficking cocaine, quickly returned to a life of crime following his release from prison,” said U.S. Attorney Michael Easley. “When arrested again, this time facing drug distribution and illegal gun charges, he sought to continue his criminal activities, including threatening the use of violence towards many individuals. His plan was foiled and now he’s facing the next five decades behind bars.”
“We appreciate our partnerships with the U.S. Attorney's Office and our federal partners as we continue to make Rocky Mount one of the safest places to live,” said Rocky Mount Police Chief Robert Hassell. “The outcome of Andre Donnell Downey's repeated offenses and disregard for the law goes to show drugs, guns, and violent crimes will not be tolerated.”
“The threat repeat offenders pose to our communities is serious,” said ATF Special Agent in Charge Bennie Mims. “ATF and our law enforcement partners remain committed to fighting back against violent crime and removing those individuals who continuously disregard the laws and the safety of the public.”
According to court documents and other information presented in court, in 2021, Downey was identified by investigators as a high-volume cocaine supplier to lower-level dealers in the Rocky Mount area. During the investigation, law enforcement officers observed Downey’s operation of multiple stash houses which he used to distribute cocaine. In December 2021, a search of one house uncovered cocaine, marijuana, and other drug paraphernalia along with nearly $3,000 cash on Downey’s person. By the spring of 2022, investigators began receiving information indicating that Downey had resumed selling drugs out of a stash house on Buena Vista Drive in Rocky Mount. On July 22, 2022, Rocky Mount Police Officers responded to an emergency call at a local convenience store. Downey was seen on the convenience store’s surveillance camera discharging a firearm through the front door of the store at an individual in the parking lot. Officers later collected a 9mm handgun from Downey that matched 9mm shell casings recovered from the scene of the shooting.
Through traffic stops, search warrants, and interviews of individuals who were supplied by Downey, investigators were able to establish that he was responsible for distributing over 60,000 grams of cocaine and 765 grams of crack from 2021 until Downey’s federal arrest in September 2023. After Downey’s federal arrest, he made more than 600 calls from jail within his first month of being in custody. A review of the calls by the Alcohol, Tobacco, Firearms and Explosives (ATF) task force officers found that Downey was discussing the restart of his drug activity following his release and managing his drug trafficking organization’s continued drug sales while in custody. The calls also revealed that Downey was orchestrating the use of violence against other drug traffickers that owed him money.
Downey has a 2009 federal conviction for conspiracy to distribute and possess with intent to distribute 50 grams or more of cocaine base (crack). He served a 70-month sentence for that crime as well as an additional nine months for violating his supervised release.
The prosecution of Downey was a part of the Organized Crime and Drug Enforcement Task Force Operation (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Rocky Mount Police Department, ATF, and the Nash County Sheriff’s Office investigated the case and Assistant U.S. Attorney Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00116-D-1.
Adair County Resident Sentenced to 12 Years for Kidnapping and Federal Firearm CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Justin Kyle Muskrat, age 38, of Bunch, Oklahoma, was sentenced to 151 months imprisonment for one count of Kidnapping in Indian Country, and 120 months for one count of Felon in Possession of Firearm and Ammunition. The counts were ordered to run concurrently.
The charges arose from an investigation by the Adair County Sheriff’s Office, the Cherokee Nation Marshal Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 11, 2023, Muskrat pleaded guilty to kidnapping and illegal possession of a firearm and ammunition. According to investigators, on March 15, 2023, Muskrat, armed with a machete, forced the victim from a Muskogee residence and into the trunk of a waiting car. At an Adair County residence, Muskrat bound, threatened, and brutally assaulted the victim. Muskrat released the victim only after learning that Adair County Sheriff’s deputies had identified Muskrat as the primary suspect in the kidnapping. At the time of Muskrat’s arrest, law enforcement discovered Muskrat knowingly in possession of a .380 semi-automatic pistol and multiple rounds of ammunition despite a prior conviction for a crime punishable by more than one year imprisonment.
The crimes occurred in Muskogee and Adair Counties, within the boundaries of the Muscogee (Creek) Nation Reservation and the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
“ATF is committed to working with its partners to go after evil amongst us. Mr. Muskrat, a multi-convicted felon, allowed his anger to cloud his better judgment when he decided to kidnap and victimize a fellow Oklahoman. A firearm found on Mr. Muskrat’s person during his arrest will extend his time behind bars to consider his actions for many years. Thanks to the hard work of the Adair County Sheriff’s Office, the Cherokee Nation Marshal Service, and the men and women of ATF, another violent offender is off the streets,” stated ATF Special Agent in Charge Jeffrey C. Boshek II.
“I commend the swift mobilization by the Adair County Sheriff’s Office, the Cherokee Nation Marshal Service, and the ATF in bringing Mr. Muskrat’s violent activity to a halt.” said United States Attorney Christopher J. Wilson. “This office stands firm in its relentless commitment to prosecuting those who would seek to disrupt the peace of our streets and homes.”
The Honorable William Paul Johnson, U.S. District Judge of the United States District Court for the District of New Mexico, sitting by assignment, presided over the sentencing hearing in Muskogee, Oklahoma. Muskrat will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys T. Cameron McEwen and Josh Satter represented the United States.
Adair County Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Devin Nakedhead, age 31, of Stilwell, Oklahoma, was sentenced to 51 months in prison for one count of illegal possession of a firearm and ammunition.
The charges arose from an investigation by the Stilwell Police Department and the Federal Bureau of Investigation.
On September 12, 2023, Nakedhead pleaded guilty to one count of Felon in Possession of a Firearm and Ammunition. According to investigators, on January 27, 2023, Nakedhead knowingly possessed a firearm and two rounds of ammunition after having been previously convicted of a crime punishable by more than one year imprisonment.
The Honorable William P. Johnson, Chief U.S. District Judge of the United States District Court for the District of New Mexico, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Nakedhead will remain in the custody of the U.S. Marshal pending transportation to a facility to serve his non-paroleable sentence of incarceration.
Assistant United States Attorney Jonathan E. Soverly represented the United States.
Activity in the U.S. Attorney's OfficeRead the Press Release
Drug Trafficking
Martin Anthony Martinez, Jr., 32, of Cheyenne, Wyoming, was sentenced to 77 months in federal prison for possession with intent to distribute fentanyl. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jul. 9. Based on court documents, beginning in June 2023, Martinez came to the attention of Task Force Officers with the Wyoming Division of Criminal Investigation (DCI) and Drug Enforcement Administration (DEA) when Martinez kept coming up during investigative interviews. On Jul. 5, 2023, a state search warrant was executed on his property which resulted in the seizure of approximately 4,000 fentanyl pills, 16 grams of methamphetamine, and a loaded Glock 32 semiautomatic handgun. Martinez pleaded guilty to the charge of possession with intent to distribute fentanyl on Mar. 24. This case was prosecuted by Timothy J. Forwood.
Victor Paul Gonzalez Brizo, 41, of Tepic, Nayarit, Mexico, was sentenced to 121 months in federal prison for possession with intent to distribute fentanyl. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Jul. 12. According to court documents, in the Spring of 2023, Task Force Officers (TFOs) with the DEA were investigating a conspiracy to distribute fentanyl in the Cheyenne area. TFOs learned that a gray Chevrolet Cruze driven by a Hispanic male, who was later identified as the defendant, was the courier. On Nov. 3, 2023, the DEA obtained a search warrant, and with assistance from the Thornton Police Department, arrested Brizo outside of his residence in Thornton, Colorado. During the search, investigators located and seized a large quantity of U.S. currency, approximately 2,800 fentanyl pills, 106 grams of methamphetamine, 39 grams of heroin, suspected drug ledgers, and packaging with drug residue. This case was prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
Thursday 11 July 2024
Wewoka Resident Sentenced for Federal Drug CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Chelsea Shiron Murray, age 44, of Wewoka, Oklahoma, was sentenced to 48 months in prison for one count of possessing with the intent to distribute methamphetamine.
The charge arose from an investigation by the Drug Enforcement Administration and the Seminole Police Department.
On August 9, 2023, Murray pleaded guilty to possessing with the intent to distribute methamphetamine. According to investigators, on November 30, 2022, a vehicle driven by Murray was stopped by an officer with the Seminole Police Department for a traffic violation. During the stop, the officer discovered a bag containing over 200 grams of methamphetamine and a set of electronic scales. Murray admitted to driving to Oklahoma City, Oklahoma, to purchase the methamphetamine.
The Honorable William P. Johnson, U.S. Chief Judge in the United States District Court for the District of New Mexico, sitting by assignment, presided over the hearing in Muskogee. Murray will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Jordan Howanitz and Ryan Bondura represented the United States.
Warren County Man Pleads Guilty to Attempted Online Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Robert Cutter, age 44, of Lake George, New York, pled guilty today to the attempted online enticement of a minor.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Cutter admitted that on June 27, 2023, he exchanged sexually explicit text messages with someone he believed was an adult offering the sexual services of a 12-year-old girl in an attempt to entice the child into engaging in sexual acts with him. Cutter also admitted that on that same date, he travelled to a pre-determined location in Warren County, New York, with the intent to engage in sexual acts with the 12-year-old girl. Cutter was arrested by law enforcement shortly after arriving at the location.
At sentencing on November 11, 2024, before United States District Mae A. D’Agostino, Cutter faces at least 10 years and up to life in prison. The judge will also be required to impose a term of post-release supervision of at least 5 years and up to life. The court may also impose a fine of up to $250,000, restitution, and forfeiture of the smartphone Cutter used to commit his offense. 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. Cutter will also have to register as a sex offender upon his release from prison.
This case was investigated by the FBI Child Exploitation Task Force, comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police and Warren County Sheriff’s Office. Assistant U.S. Attorney Allen J. Vickey is prosecuting the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Wapato Man Sentenced to Federal Prison for Violent AssaultRead the Press Release
Yakima, Washington - Chief United States District Judge Stanley A. Bastian sentenced Nicholas Dean Elwell, age 40, of Wapato, Washington, to 46 months in federal prison on one count of Assault Resulting in Serious Bodily Injury. Chief District Judge Bastian also imposed 3 years of federal supervision after Elwell is released from prison.
According to court documents and information disclosed at sentencing, on June 3, 2023, the victim, who is an enrolled member of the Yakama Nation, went to Elwell’s home in Wapato, Washington. Elwell accused the victim of cheating on her and became upset. Elwell, who was wearing steel toed boots, repeatedly kicked the victim in her face and torso, grabbed the victim by her hair and punched her several times. Elwell also stomped on the victim’s stomach. The victim told investigators she could not eat for a week because of the pain from that injury. The victim was eventually able to escape out a bathroom window.
When law enforcement encountered the victim later that night, investigators observed one of the victim’s eyes was almost swollen shut, there was swelling on the victim’s forehead and both sides of her face. Additionally, there was blood on her lips. Law enforcement also observed dried blood on Elwell’s clothing, left boot, and bedsheets.
“I want to commend the courage of the victim in this case for coming forward and engaging with law enforcement to hold her abuser accountable,” stated United States Attorney Vanessa Waldref. “By working with our tribal and federal law enforcement partners, we can continue to build trust and foster safer and stronger communities on Tribal lands and throughout Eastern Washington.”
“Without the cooperation of the victim in this case, Mr. Elwell may not have been held accountable for his horrific actions.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Fortunately, the victim was able to escape the extreme violence of the attack. I want to commend the efforts of our investigators and partners to help reduce violent crime against our state’s indigenous population.”
This case was investigated by the Federal Bureau of Investigation and the Yakama Nation Police Department. It was prosecuted by Assistant United States Attorney Courtney R. Pratten.
U.S. Attorney’s Office Testifies Before D.C. Council in Support of the “Enhancing Mental Health Crisis Support and Hospitalization Amendment Act of 2024”Read the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia testified today at a committee hearing before the Council of the District of Columbia on proposed legislation, Bill 25-0692, addressing the “Enhancing Mental Health Crisis Support and Hospitalization Amendment Act of 2024.”
USAO-DC strongly supports Bill 25-0692, the “Enhancing Mental Health Crisis Support and Hospitalization Amendment Act of 2024.” This bill will enhance the procedures relating to how the civil and criminal systems address the treatment and commitment of people with mental illnesses, when they are dangerous because of that mental illness. This bill will streamline processes and provide more tools to treatment providers and the courts both to address a person’s mental illness and to protect the community. This bill is a crucial tool that will help to address the overlap between mental health, civil commitment processes, and criminal justice.
In addition to appearing before the Council’s Committee on the Judiciary and Public Safety, Elana Suttenberg, Special Counsel to the U.S. Attorney, and Jennifer Mika, U.S. Attorney’s Office for the District of Columbia’s Pretrial Mental Health Coordinator, provided written remarks, available in the accompanying attachment .
U.S. Attorney, Albuquerque FBI Charge Habitual Offender with Domestic AssaultRead the Press Release
ALBUQUERQUE – A Utah man was charged by indictment with assaulting a victim with a knife while she was holding her daughter in Sheep Springs, New Mexico.
Kubert Yanito, 51, an enrolled member of the Navajo Nation, appeared before a federal judge today for an arraignment and detention hearing, and will remain in custody pending trial, which has not been scheduled.
According to the indictment, on October 11, 2023, Yanito allegedly assaulted Jane Doe 1 with a knife while she was holding her daughter, Jane Doe 2. Yanito had previously been convicted of domestic violence, making him a habitual offender.
If convicted of the current charges, Yanito faces up to 10 years in prison.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the Navajo Nation Department of Criminal Investigations. This case is being prosecuted by Assistant United States Attorney Nichola J. Marshall.
View the IndictmentAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney Secures 87 Month Prison Sentence for Violent Attack on Family HomeRead the Press Release
ALBUQUERQUE – A Fruitland man was sentenced to 87 months in federal prison for firing 18 rounds at a family home occupied by eight people, including five young children.
There is no parole in the federal system.
According to court records, on April 28, 2022, Nathaniel Begay, 31, an enrolled member of the Navajo Nation, drove to a residence within the exterior boundaries of the Navajo Nation after becoming angry while swimming at Morgan Lake. Armed with two semi-automatic handguns, Begay fired multiple rounds at the home, which contained eight family members including five young children.
After briefly leaving, Begay returned and fired a second volley of shots at family members as they attempted to take cover. No one was injured.
Begay was arrested later that night following a domestic dispute with his wife. A knife and 9mm bullet were found on his person at the time of arrest.
Upon his release from prison, Begay will be subject to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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U.S. Attorney Secures 78-Month Sentence for Armed Felon in Immigrant Smuggling SchemeRead the Press Release
ALBUQUERQUE – A Tularosa man was sentenced to 78 months in federal prison for illegally possessing a firearm while engaged in a scheme to transport undocumented immigrants.
There is no parole in the federal system.
According to court documents, on January 18, 2023, a U.S. Border Patrol Agent observed suspicious driving behavior from a vehicle traveling northbound on Highway 185 near Las Cruces, New Mexico. The vehicle was moving slower than the posted speed limit and drifting across lanes. After making evasive maneuvers, the vehicle eventually stopped near an abandoned residence outside Las Cruces.
The agent made contact with the driver, identified as Castulo Amaya, 39, and explained that he had stopped to conduct a welfare check. During the interaction, Amaya exhibited increasingly erratic behavior, yelling at the vehicle occupants to record the encounter and claiming harassment.
When questioned, Amaya claimed that the vehicle's occupants were his children and relatives. However, upon inspection, the agent determined that six individuals in the rear seat were aliens illegally present in the United States. All provided rehearsed responses claiming they were from Las Cruces. The front seat passenger was identified as Vanessa Rodriguez-Solorio, a U.S. citizen. Rodriguez-Solorio admitted to being hired by Amaya to transport people for money and pleaded guilty to conspiracy to transport illegal aliens.
During a search incident to arrest, a loaded semi-automatic pistol was found concealed under Amaya's sweatshirt. As a previously convicted felon, Amaya knew that he was prohibited from owning firearms or ammunition.
Upon his release from prison, Amaya will be subject to 3 years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Anthony “Scott” Good, Chief Patrol Agent of the U.S. Border Patrol El Paso Sector, made the announcement today.
The U.S. Border Patrol investigated this case. Assistant United States Attorney Ry Ellison is prosecuting the case.
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Two indicted for buying stolen goods and selling them online via Amazon or eBay for more than $3 millionRead the Press Release
Seattle – Two western Washington men, related by marriage, were indicted by a federal grand jury this week for 11 criminal counts related to their conspiracy to traffic in stolen goods, announced U.S. Attorney Tessa M. Gorman. Vitaliy F. Bobak, 52, of Federal Way, Washington and Andrey A. Balun, 57 of Bellevue, Washington and Las Vegas, jointly owned MBA Trading LLC which did business at a Burien, Washington storefront operating as “We Buy Gold, Silver, and Electronics.” An extensive law enforcement investigation alleges the storefront knowingly purchased goods stolen from area retailers which the pair then sold on Amazon or eBay for millions of dollars in profit. The two are scheduled for arraignment on August 1, 2024.
“The purchase and trafficking of these stolen goods fuels the organized retail theft that has so damaged our local retailers,” said U.S. Attorney Gorman. “If the “boosters,” as they are called, had no market for these stolen goods, they would stop their rampant theft from our retailers. We are committed to using our federal resources to put a dent in this illegal trafficking.”
“These aren’t just random shoplifters or boosters. These are thefts that are being coordinated as part of a sophisticated network that targets legitimate businesses, confusing consumers and creating a ripple effect that makes it more difficult for retailers to operate,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Through our many partnerships across law enforcement and the private sector, HSI will use every resource at our disposal to protect businesses while ensuring justice is served.”
According to the detailed indictment, between January 2018 and December 2023, the storefront the men operated purchased goods that were clearly stolen items. In many instances the goods still had anti-theft devices attached, and/or stickers saying for sale only at a particular retailer. The men bought the goods far below the retail price and then posted them for sale on two websites they operated on Amazon or eBay. The Amazon store was called “Medikus” and the eBay store was called “abcstore555.” The indictment traces the money from the online stores to the men’s bank accounts. The funds were then used by the men to operate the scheme by paying cash to the “boosters” (people who stole the goods) or payroll to employees who were involved in posting and shipping the goods for sale. The men also used the cash for their personal expenses such as paying $67,000 in cash for a new Lexus or making a large downpayment for a home in Las Vegas.
The scale of the sales was huge and both national and international. An analysis of the sales of the two online stores reveals that between January 1, 2022 and November 28, 2023, there were over 150,000 sale transactions through the abcstore555 eBay and Medikus Amazon stores, with a combined sales total of over $4.5 million. When search warrants were served and merchandise seized on December 19, 2023, the conspirators possessed more than 74,000 items of stolen merchandise valued at approximately $2.4 million.
The men are charged with conspiracy to transport stolen property in interstate commerce; interstate transportation of stolen property; conspiracy to commit money laundering; three counts of concealment money laundering; and five counts of money laundering.
Conspiracy to transport stolen property is punishable by up to five years in prison. Interstate transportation of stolen property is punishable by up to ten years in prison. Conspiracy to commit money laundering is punishable by up to 20 years in prison. The various money laundering counts are punishable by either up to ten years or 20 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Homeland Security Investigations (HSI), with significant assistance from the Renton Police Department, Seattle Police Department, and the IRS, and aided by investigators from numerous retailers. The case is being prosecuted by Assistant United States Attorney Sean Waite and Asset Forfeiture Assistant United States Attorney Krista Bush.
bobak_indictment.pdfThree Clermont Labs Agree to Pay $2.45 Million to Settle False Claims Act Liability for Manipulating Diagnosis CodesRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces today that Vista Clinical Diagnostics, LLC; Access Dermpath, Inc.; and Advanced Clinical Laboratories, Inc. have agreed to pay the United States, the State of Florida, the State of North Carolina, and the Commonwealth of Virginia $2,450,000 to resolve allegations that they violated the False Claims Act by submitting claims to Medicare and Medicaid that contained manipulated diagnosis codes.
According to the settlement agreement, Vista Clinical Diagnostics, along with Access Dermpath and Advanced Clinical Laboratories, billed Medicare and Medicaid for clinical laboratory services using diagnosis codes that were generated by a macro and inserted into beneficiaries’ reimbursement submissions. This allegedly occurred during the period from January 1, 2017, through December 31, 2021. According to the allegations, these diagnosis codes were generated by the Defendants and not provided by the beneficiaries’ physicians.
“My office is committed to investigating and federally prosecuting providers who submit false claims and attempt to cheat the system,” said U.S. Attorney Roger Handberg. “This case exemplifies our dedication to protecting our nation’s taxpayers from fraud.”
“Health care providers who receive Medicaid funds must be responsible stewards of taxpayers’ money,” said North Carolina Attorney General Josh Stein. “When they defraud North Carolinians, we will hold them accountable.”
“Medical providers who participate in federal health care programs must follow the law when billing federally funded health care programs such as Medicare and Medicaid,” said Special Agent in Charge Stephen Mahmood of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement illustrates HHS-OIG’s commitment to protecting the integrity of these taxpayer-funded programs and the people they serve. Working closely with the United States Attorney’s Office and our other law enforcement partners, we will continue to thoroughly investigate such schemes.”
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by Relator Balbina Castillo, a former employee of Vista Clinical Diagnostics, who sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting private citizens to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. The Relator will receive over $440,000.00 of the proceeds from the settlement with the Defendants.
The settlement agreement was subject to approval the by United States Bankruptcy Court for the Middle District of Florida. Vista Clinical Diagnostics filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code on October 2, 2023. That case is captioned In re: Vista Clinical Diagnostics, LLC, Case No. 6:23-bk-04109. The Bankruptcy Court approved the Settlement Agreement and confirmed Vista Clinical Diagnostic’s bankruptcy plan on July 9, 2024.
Contemporaneous with the settlement, Vista Clinical Diagnostics, Access Dermpath, and Advanced Clinical Laboratories have entered into a five-year Corporate Integrity Agreement with HHS-OIG, which requires the labs, among other obligations, to establish and maintain a compliance program meeting certain requirements and to submit to an Independent Review Organization’s review of the labs’ Medicare claims to determine whether such claims were medically necessary, appropriately documented, and correctly coded.
This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, Florida Office of the Attorney General Medicaid Fraud Control Unit (“MFCU”), North Carolina Office of the Attorney General MFCU, Virginia Office of the Attorney General MFCU, and the HHS Office of Inspector General. Assistant United States Attorneys Jeremy R. Bloor and Christopher Emden, Florida MFCU’s Senior Assistant Attorney General Matthew Vitale, North Carolina Special Deputy Attorney General Matthew Petracca, and Virginia Senior Assistant Attorney General Adele M. Neiburg led the investigation.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The False Claims Act case is captioned United States ex rel. Castillo v. Vista Clinical Diagnostics, LLC, et al., Case No. 6:20-cv-617-ORL-WWB. The settlement resolves the United States, the State of Florida, the State of North Carolina, and the Commonwealth of Virginia’s claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Texas Woman Sentenced to 5 Years for Fraud SchemeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Sarah Doherty, 35, Stephenville, Texas, was sentenced yesterday by U.S. District Judge William M. Conley to 5 years in federal prison for wire fraud and tax evasion. Doherty pleaded guilty to these charges on April 9, 2024. As part of her sentence, Doherty was ordered to pay $1,025,064.74 in restitution to Victim-1.
Between 2016 and 2020, Doherty executed a scheme to defraud Victim-1, who owned a small business in central Wisconsin. Doherty became friends with Victim-1 and gained access to his personal finances. She then used this access to steal money from Victim-1 and used the stolen money to pay her personal expenses, including a down payment on a property in Colorado and a seven-horse trailer.
Doherty also created fictitious identities and controlled those identities to defraud and manipulate Victim-1 into sending her money that she spent personally. For example, Doherty created “Cindy Lou,” a matchmaker who Victim-1 paid to set him up on dates with women. Cindy Lou set up Victim-1 with numerous fictitious women who would communicate with Victim-1 by email. In many instances, the fictitious women, who were in fact Doherty, would then request financial help from Victim-1 to assist with various fictitious tragedies. The money Victim-1 sent to these fictitious women was received and spent by Doherty. Doherty also created a fictitious travel agent and investment advisor and used these alter egos to obtain more money from Victim-1.
During 2019, Doherty also had direct access to a credit card for Victim-1’s business and used funds from the credit card to pay her personal expenses. As part of her plea agreement, Doherty admitted that she failed to report the income she received from the credit card in 2019 on her 2020 federal tax return.
While Doherty was on release and awaiting trial in the case, she continued to engage in fraudulent conduct while under the supervision of the United States Pretrial Services. During a hearing on March 19, 2024, Magistrate Judge Stephen Crocker ordered Doherty into custody as a result of her multiple violations of pretrial release.
At the sentencing hearing, Judge Conley stated that Doherty’s fraud scheme was a “web of misrepresentations” that had a devasting impact on Victim-1 and his business. Judge Conley stated that Doherty had consistently demonstrated a “pathological affinity for fraudulent conduct.” Judge Conley also noted that he had never seen “a more dismal performance by a white-collar defendant on pretrial supervision.”
The charges against Doherty were a result of an investigation conducted by IRS Criminal Investigation and the Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Tampa Man Indicted for Sex Trafficking of A MinorRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Dontae Burton (39, Tampa) with sex trafficking of a minor. If convicted, Burton faces a maximum penalty of life in federal prison.
According to court documents, Burton coordinated commercial sex acts on behalf of a minor victim after posting photographs of her on adult escort websites. Burton told the minor victim how the dates worked and the portion of money that he would receive from the dates. Burton transported the minor victim for the dates and received proceeds from her commercial sexual activity.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Hillsborough County Sheriff’s Office and Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Courtney Derry.
If you suspect human trafficking, call the HSI Tip Line at 877-4-HSI-TIP. Callers may remain anonymous. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Tahlequah Resident Sentenced to Life in Prison for First Degree MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Isaac Newman Sockey, age 39, of Tahlequah, Oklahoma, was sentenced to life in prison for first degree murder stemming from a fatal knife attack on September 8, 2023, at a Tahlequah residence.
Sockey was found guilty of one count of First Degree Murder in Indian Country on December 12, 2023, following a jury trial in the United States District Court for the Eastern District of Oklahoma. Sentencing was held July 10, 2024.
According to evidence and testimony presented at trial, on the day of the murder, Sockey retrieved a butterfly knife from his bedroom, placed the knife to the victim’s throat, and threatened the victim in response to a verbal insult. The victim pushed the knife away and attempted to disarm Sockey. Sockey then stabbed the victim more than twenty times, including in the neck, head, and torso. Despite life-saving measures, the victim died from injuries sustained in the attack.
The crime occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The charge arose from investigations by the Tahlequah Police Department and the Federal Bureau of Investigation.
“Senseless tragedies such as this reverberate through our communities, and those who perpetrate these acts must be brought to justice,” said Acting Special Agent in Charge Jason Kaplan of the FBI Oklahoma City Field Office. “The FBI and our law enforcement partners remain committed to preventing violent crime in Indian country by removing offenders like Mr. Sockey from our streets.”
“I want to commend the Tahlequah Police Department and the Federal Bureau of Investigation who conducted the investigation, and the Assistant U.S. Attorneys who indicted and prosecuted this case,” said United States Attorney Christopher J. Wilson. “Because of their dedication and commitment, Sockey will pay for his vicious and senseless act of violence.”
The Honorable Ronald A. White, Chief Judge for the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Sockey will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Kevin Gross and Gregory Dean Burris represented the United States.
Stilwell Resident Sentenced to Two Years for ArsonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Arron Lee Gonzalis, age 28, of Stilwell, Oklahoma, was sentenced to 24 months in prison for one count of Arson in Indian Country.
The charge arose from investigations by the Stilwell Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On October 31, 2023, Gonzalis pleaded guilty. According to investigators, Gonzalis was captured on video intentionally setting fire to a cardboard box next to a commercial building in Stilwell, Oklahoma, on July 20, 2023. The fire caused minor damage to the building and the building’s gas meter. The crime occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge for the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Gonzalis will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kevin Gross represented the United States.
South Portland Man Sentenced to 2+ Years for Possessing a Firearm After Domestic Violence ConvictionRead the Press Release
PORTLAND, Maine: A South Portland man was sentenced today in U.S. District Court in Portland for possessing a firearm after being convicted of a misdemeanor crime of domestic violence.
Chief U.S. District Judge John D. Levy sentenced Willie Richard Minor, 63, to the two years, eight months, and ten days he had served before an earlier conviction was vacated.
According to court records and evidence presented at trial, in June 2010, Minor was convicted in Maine Superior Court of domestic violence. The U.S. Attorney’s Office does not identify victims of crime and is limiting identifying information to protect the victim’s privacy. As a result of that conviction, Minor was prohibited by federal law from possessing firearms and ammunition. In November 2016, Minor admitted to having a gun in an interview with the Auburn Police Department. The police recovered the gun from his apartment in Auburn.
Minor was originally convicted and sentenced on the federal charge after a trial in December 2017. While the case was pending on appeal, the Supreme Court of the United States issued a decision, Rehaif v. United States, that changed what the government is required to prove in certain federal firearm possession cases. As a result, the parties agreed to have the original conviction vacated, and the case was remanded for a new trial. Minor was again convicted after a trial in February 2020, and in September 2020, he was sentenced to time served and three years of supervised release.
In March 2023, the U.S. Court of Appeals for the First Circuit found that the jury had been incorrectly instructed in Minor’s second trial. The Court of Appeals clarified what the government is required to prove under the Supreme Court’s Rehaif decision, leading to the third trial. Minor was again found guilty by a federal jury following a two-day trial in April 2024.
“This office will continue to prioritize prosecutions against those convicted of domestic violence who illegally possess firearms,” said U.S. Attorney Darcie N. McElwee. “Anyone convicted of abuse – and those they choose to victimize – should understand that illegal gun possession by domestic abusers will not be tolerated.”
The Auburn Police Department; Maine State Police Crime Laboratory; Bureau of Alcohol, Tobacco, Firearms and Explosives; and FBI investigated the case.
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South Lake Tahoe Man Convicted of Impersonating Federal OfficersRead the Press Release
SACRAMENTO, Calif. — After a three-day trial, a federal jury found Anton Andreyevich Iagounov, 38, of South Lake Tahoe, guilty of four counts of impersonating a federal officer, U.S. Attorney Phillip A. Talbert announced.
Iagounov pretended to be a federal law enforcement agent by creating and sending counterfeit investigative documents, which he signed in the name of a fictional federal agent, seeking highly protected information from the Department of Defense.
“The defendant impersonated federal officers and tried multiple times to obtain protected information using fake court documents,” said U.S. Attorney Talbert. “Many federal agencies like NASA have devoted law enforcement officers, and we will continue to partner with those agencies to ensure their officers are not illegally impersonated.”
“Usurping public trust, Mr. Iagounov pretended to be an agent of the National Aeronautics and Space Administration’s (NASA) Office of Inspector General creating fake investigative documents in an attempt to obtain sensitive government information,” said Michael Graham, NASA-OIG Acting Assistant Inspector General for Investigations. “This verdict demonstrates the commitment of NASA-OIG, the USAO, and our law enforcement partners to aggressively investigate, prosecute, and hold accountable those who undermine justice.”
On July 5, 2022, Iagounov sent a search warrant he had created to the U.S. Capitol Police, falsely claiming it was signed by a Special Agent of NASA Office of Inspector General (NASA-OIG) and appearing to be authorized by a U.S. District Court judge for the District of Columbia. The Capitol Police investigated the document, determined it was fake, and referred it to NASA-OIG for further investigation.
On July 11, 2022, Iagounov again pretended to be the same fictional NASA-OIG agent, and sent the warrant to the U.S. District Court for the Central District of California. This time, he sent it without a judge’s signature, indicating it was for an “emergency filing” and required a judge’s signature. He sent it from an email address designed to look like it was from a United States government agency, but which the defendant owned and had named to look like a government agency’s internet domain.
On July 18, 2022, Iagounov again sent the fake search warrant, purporting to be signed by the same fictitious NASA-OIG agent. He sent it to the U.S. Bankruptcy Court for the Middle District of Georgia, again indicating that it was for an emergency filing and needed a judge’s signature immediately.
Finally, on July 24, 2022, Iagounov faxed a letter, under the name of a real NASA-OIG supervising agent, to the U.S. District Court for the Northern District of Florida. In that letter, he claimed to be following up on the warrant, stating that an “exigent circumstance” required a judge’s signature immediately. The faxed letter included an anonymous email address for the agent that actually belonged to Iagounov. Several days earlier, on July 15, Iagounov had sent his warrant to the U.S. Bankruptcy Court for the Northern District of Florida, but had received no response.
In each case, given the apparently sensitive nature of the materials the defendant’s warrant sought, the receiving personnel for the Courts referred the matter to NASA-OIG for review and investigation.
This case is the product of an investigation by the Federal Bureau of Investigation and the NASA Office of Inspector General, with assistance by the South Lake Tahoe Police Department and the Carson City Sheriff’s Office. Assistant U.S. Attorney James Conolly and Audrey Hemesath are prosecuting the case.
Iagounov is scheduled to be sentenced by U.S. District Judge Daniel J. Calabretta on Oct. 17, 2024. Iagounov faces a maximum statutory penalty of three years in prison and a $250,000 fine, per count of conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Slync Founder Sentenced to 20 Years in Federal Prison for FraudRead the Press Release
Slync founder Christopher Kirchner was sentenced today to 20 years in federal prison for defrauding investors of tens of millions of dollars, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Mr. Kirchner, 37, who founded supply chain management software company Slync in 2017 and held the position of CEO until his termination by the Board of Directors in 2022, was initially charged in February 2023. Just 11 months later, a jury convicted him of four counts of wire fraud and seven counts of engaging in monetary transactions in property derived from specified unlawful activity. He was sentenced Thursday to 240 months in federal prison by U.S. District Judge Mark Pittman, who also ordered him to pay more than $65 million in restitution.
“Even as his company was circling the drain, Chris Kirchner was spending millions of his investors’ money on himself. Apparently, projecting personal prosperity was more important to him than making payroll,” said U.S. Attorney Leigha Simonton. “His duplicity earned him 20 years in prison. We are proud to hold him accountable for his crimes and are committed to pursuing all businesspeople engaged in criminal conduct.”
"Mr. Kirchner fraudulently raised money from investors and embezzled those funds from the company he led to fund a lavish lifestyle. Today’s sentence underscores the gravity of those crimes. He acted without any regard for how it would affect the company, employees, or investors," said FBI Dallas Special Agent in Charge Chad Yarbrough. “The FBI is committed to working with our partners to investigate any allegation of financial misconduct. We will hold individuals accountable who use their positions of trust for personal profit.”
According to evidence presented at the sentencing hearing, between 2020 and 2022, Mr. Kirchner fraudulently raised more than $71 million from numerous investors based on false representations and promises about Slync’s business operations, false representations about Slync’s financials, false representations about Slync’s customers, and fantastical revenue projections. As the jury’s verdict indicated, Mr. Kirchner then misappropriated over $25 million of the investor funds in various ways.
Between April 2020 and March 2022, Mr. Kirchner initiated nearly 100 wire transfers moving money from Slync’s Silicon Valley Bank account into the company’s account at JPMorgan Chase Bank – an account only he had access to. He then wired much of the money from the Chase account to his personal bank accounts. In addition, Mr. Kirchner wired $20 million directly from Slync’s Silicon Valley Bank account into his personal checking account. Mr. Kirchner then used the misappropriated funds to buy, among other things, a $16 million private jet, a suite at AT&T Stadium, exotic vehicles including a Rolls Royce and Mercedes Benz G-Class, and jewelry including a $500,000 Richard Mille watch, several Rolex watches, and a Cartier necklace.
When Slync, drained of funds, struggled to make payroll in the spring of 2022, Mr. Kirchner attempted to replace some of the money he had misappropriated by convincing at least four investors to wire approximately $850,000 to Slync as part of a purported Series C investment round. Slync’s Board of Directors never authorized a Series C investment round.
In the meantime, Mr. Kirchner offered various explanations for Slync’s payroll issues – all of which were untrue. Mr. Kirchner also fired a Slync employee after the employee reported to the Board of Directors that Mr. Kirchner may have falsely exaggerated Slync’s financial performance to investors.
Immediately following his suspension by the Board of Directors in late July 2022, Mr. Kirchner removed certain IT administrator privileges from key Slync employees, preventing the employees from accessing Slync’s computer systems. He then attempted to delete approximately 18 gigabytes of Slync data, including emails.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Joshua D. Detzky, Nashonme Johnson, and Jay Weimer prosecuted the case. Assistant U.S. Attorney Dimitri Rocha handled the forfeiture; Assistant U.S. Attorney Katie Carr Jacobs worked on restitution. Assistant U.S. Attorney Brian McKay served as appellate liaison.
Sioux City Man to Federal Prison for 24 years for Meth Conspiracy ConvictionsRead the Press Release
Johnnie A. Cannon, 38, from Sioux City, Iowa, formerly from Osceola, Arkansas, was sentenced on July 9, 2024, in federal court in Sioux City.
On January 18, 2024, after a 3-day jury trial, Cannon was convicted, by jury verdict, of one count of conspiracy to distribute methamphetamine and three counts of distributing and aiding and abetting another in the distribution of methamphetamine.
The evidence in this case showed that Cannon conspired with others to distribute at least 19 pounds of methamphetamine from January 2021 through March 14, 2023. Evidence further showed that on at least three occasions in February and March 2023, during three control drug purchase operations, Cannon was observed to provide ¼, ½ and ½ pounds of methamphetamine to a co-conspirator, who then in turn, distributed the methamphetamine to an individual cooperating with law enforcement. On March 14, 2023, during a traffic stop immediately following the last drug purchase operation, Cannon was found in possession of $3000 in pre-serialized, buy money used by law enforcement in the drug purchase. In 2007 and 2008, respectively, Cannon was convicted of delivery of crack cocaine in Arkansas. In 2010, in the Northern District of Iowa, he was federally convicted of conspiracy to distribute cocaine and possession with intent to distribute cocaine. Cannon was released from federal prison in 2019 and was on federal supervised release at the time he committed his new offenses.
Sentencing was held before United States District Court Judge Leonard T. Strand. Cannon was sentenced to 299 months’ imprisonment – 262 months on his new offense, plus 37 months’ consecutive thereto for revocation of his federal supervised release from his 2010 offense. Cannon must serve a ten-year term of supervised release following imprisonment. There is no parole in the federal system. Cannon remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4023. Follow us on Twitter @USAO_NDIA.
Shiprock Man Pleads Guilty to Assault and Federal Firearms OffenseRead the Press Release
ALBUQUERQUE – A Shiprock man pleaded guilty in federal court to assault and firearms charges after shooting a victim in the stomach during a late-night confrontation on the Navajo Nation reservation.
According to publicly available court documents, on May 29, 2023, Tyrell Willie, 38, an enrolled member of the Navajo Nation, drove to John Doe's residence within the Navajo Nation reservation. When John Doe exited his home, Willie turned off his headlights and fired two shots from the driver's seat, with one round striking Doe in the stomach. Willie then fled the scene.
Shortly after, Navajo Nation Police Officers conducted a high-risk stop on Willie's vehicle. Willie exited the truck holding a loaded shotgun but dropped it after being commanded to do so by officers. He was then taken into custody.
The victim suffered serious bodily injury requiring immediate life-saving surgery.
The Court ordered that Willie remain in custody pending sentencing, which has not been scheduled.
At sentencing, Willie faces between 7 and 12 years in prison. Upon his release from prison, Willie will be subject to up to five years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
FBI Farmington Agency investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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Shelbyville, Illinois, Man Sentenced to 210 Months in Federal Prison for Production, Receipt, and Possession of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A Shelbyville, Illinois, man, Brett J. Simpson, 30, was sentenced on July 10, 2024, to 210 months in the Bureau of Prisons, to be followed by seven years of supervised release. Simpson was also ordered to pay $15,500 in restitution to victims. He is now required to register as a sex offender under the Sex Offender Registration and Notification Act.
Simpson previously pleaded guilty to persuading a minor victim to engage in sexually explicit conduct for the purpose of producing child pornography, receiving child pornography, and possessing child pornography between December 2021 and May 2022.
At the sentencing hearing in front of U.S. District Judge Collen R. Lawless, the government established that Simpson portrayed himself as a minor on social media platforms to entice children to produce and send him elicit images and videos. Simpson persuaded one child to produce sexual images in exchange for a gift card and another child sent Simpson, at his request, a video containing nude images of that child. The evidence also showed that Simpson possessed thousands of other images of child pornography, including 250 images depicting children under 12 years of age.
“This sentence once again affirms the commitment of the U. S. Attorney’s Office for the Central District of Illinois to the protection of children and the vigorous prosecution of those who prey upon children,” said Assistant U.S. Attorney Sierra Senor-Moore.
“This substantial sentence effectively ends Simpson’s ability to sexually exploit children and underscores the FBI’s commitment to keep our children safe by going after those who seek to take advantage of a child’s innocence,” said FBI Acting Special Agent in Charge Jermaine Deans.
“The Shelbyville Police Department would like to thank the Springfield Office of the FBI for assisting our department with the arrest of Brett Simpson back in May of 2022,” said Shelbyville Police Chief Chad Brachbill. “In an effort to keep our community safe from predators, the FBI has been paramount in assisting us from keeping dangerous people from exploiting children in our community over the internet. We look forward to partnering with them in the future to continue keeping our youth safe from criminal activity of any kind, especially internet sex crimes.”
Simpson was indicted in June 2022 and has remained in the custody of the U.S. Marshals since his arrest in May 2022. The statutory penalties for production of child pornography are no less than 15 years and up to a maximum of 30 years’ imprisonment; for receipt of child pornography no less than five years and up to 20 years’ imprisonment; and for possession of child pornography a maximum of 20 years’ imprisonment. The maximum possible fine was $250,000 per count.
The Federal Bureau of Investigation, Springfield Field Office, with assistance from the Shelbyville Police Department and Shelby County Sheriff’s Office, investigated the case. Assistant U.S. Attorney Senor-Moore represented the government in the prosecution.
The case against Simpson was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Seventeen Plead Guilty in Drug Trafficking ConspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Seventeen people have pled guilty to drug distribution charges following an investigation into a Baltimore-based trafficking organization.
United States Attorney William Ihlenfeld announced that since an indictment was returned in January against Gary Brown, Jr. and eighty-one others, many of those charged in the conspiracy have admitted to their role in an operation that caused substantial amounts of fentanyl, methamphetamine, and cocaine to be distributed in Berkeley and Jefferson Counties.
“Thanks to the excellent work of federal prosecutors and local, state, and federal investigators, numerous defendants in this case have accepted responsibility for their crimes and will be held accountable for endangering our communities through the distribution of illicit drugs,” said U.S. Attorney Ihlenfeld. “There’s more work to be done, but significant progress has been made.”
Those who have entered pleas of guilty thus far are as follows:
- Zachary Thomas Doman, age 24, of Martinsburg;
- Marissa Huntoon-Gregory, 34, of Summit Point;
- Connor James McLaughlin, 31, of Ranson;
- Alyssa Rose McIntyre, 28, of Harpers Ferry;
- Daniel Lee Corbin, Jr., 35, of Martinsburg;
- Eric Lyn Custer, 38, of Charles Town;
- John Wesley Yates, 36, of Bunker Hill;
- Haile Madalynn Speaks, 21, of Charles Town;
- Kimberly Ann Barrett, 44, of Harpers Ferry;
- Brenda Henry, 57, of Charles Town;
- John Ernest LeCluse, 39, of Harpers Ferry;
- Michael Lee Engle, 46, of Harpers Ferry;
- Joshua Paul Barrett, 44, of Harpers Ferry;
- Gregory O’Brien Long, Jr. 26, of Charles Town;
- Jeffrey Scott Main, 53, of Harpers Ferry;
- Eva Louise Ashbaugh, 25, of Harpers Ferry; and
- Kayleigh Nicole Beavers, 38, of Winchester, Virginia.
Assistant U.S. Attorneys Lara Omps-Botteicher and Kyle Kane are prosecuting the case on behalf of the government.
U.S. Magistrate Judge Robert Trumble has presided over the plea hearings.
The trial for the remaining defendants is scheduled for February 4, 2025, before Judge Gina M. Groh.
Investigative agencies include the Federal Bureau of Investigation (Pittsburgh Field Division and Baltimore Field Division); the Drug Enforcement Administration; the U.S. Department of Homeland Security Investigations; the United States Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshals Service; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the West Virginia Air National Guard; the Jefferson County Sheriff's Office; the Berkeley County Sheriff's Office; Ranson Police Department; Martinsburg Police Department; Charles Town Police Department; the Berkeley County Prosecuting Attorney’s Office; Stafford County Sheriff's Office (Virginia); Frederick County Sheriff's Office (Maryland); Frederick County Sheriff's Office (Virginia); Winchester Police Department; and the Clarke County Sheriff's Office (Virginia).
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.
Sentences Handed Down for Multi-Year Scheme to Subvert Commercial Fishing RegulationsRead the Press Release
PORTLAND, Maine: Eight men from Maine and one from New Hampshire – comprised of the owner, captains, and crew members of a commercial fishing vessel, the Western Sea, and owners of local Maine fisheries – have been sentenced for knowingly subverting commercial fishing reporting requirements. The final six sentences in the complex case were handed down this week by U.S. District Judge Jon D. Levy in U.S. District Court in Portland.
The Western Sea is a fishing vessel that operated out of Rockland and fished for Atlantic herring. Atlantic herring is the primary bait fish for Maine’s lobster industry. Operators of fishing vessels in the Atlantic herring fishery must comply with restrictions on fishing areas, seasonal access, gear usage, and limits on the quantity or weight of fish caught. To ensure a sustainable fishery for a particular species, the National Oceanic and Atmospheric Administration (NOAA) has authority to set quotas and catch limits for commercial fishing vessels, and the vessels must complete a Fishing Vessel Trip Report (FVTR) at the end of each fishing trip reporting all species caught, the weight of each catch, and the dealers to whom the catch is sold.
According to court records, from June 2016 through September 2019, members of the Western Sea crew conspired to submit false FVTRs to NOAA. The Western Sea, acting through its owner, captains, and crew, sold Atlantic herring to purchasers who paid the crew directly via check or cash, including to some purchasers that were not federally permitted dealers of Atlantic herring. Members of the crew received shares of this money at the end of fishing weeks. Some sales were of unreported Atlantic herring, including when the vessel landed more than the quantity of herring allowed under weekly catch limits. False FVTRs were submitted to NOAA to conceal the conduct and Western Sea, Inc. issued inaccurate 1099 forms to crew members that failed to report all income.
>Sentenced this week:
- Glenn Robbins (77, Eliot; Owner Western Sea, Inc. & Captain R. Herring; Captain of the Western Sea)
- Pleaded guilty on 03/11/24 to conspiracy to submit false information to the Secretary of the U.S. Department of Commerce and his/her designees regarding the catch and sale of Atlantic herring and failure to pay taxes.
- Sentenced on 07/11/24 to 2 years of probation, $25,000 fine.
- Western Sea, Inc. (Eliot)
- Pleaded guilty on 03/11/24 to falsification of records.
- Sentenced on 07/11/24 to 2 years of probation, $175,000 fine.
- Jason Parent (51, Owls Head; Crew member)
- Pleaded guilty on 03/11/24 to conspiracy to submit false information to the Secretary of the U.S. Department of Commerce and his/her designees regarding the catch and sale of Atlantic herring and failure to pay taxes.
- Sentenced on 07/10/24 to 2 years of probation, $2,000 fine, 50 hours of community service, restitution of $28,685.58.
- Stephen Little (59, Warren; Crew member)
- Pleaded guilty on 03/11/24 to conspiracy to submit false information to the Secretary of the U.S. Department of Commerce and his/her designees regarding the catch and sale of Atlantic herring and failure to pay taxes.
- Sentenced on 07/10/24 to 2 years of probation, $42,834.93 restitution.
- Neil Herrick (48, Rockland; Crew member)
- Pleaded guilty on 03/11/24 to conspiracy to submit false information to the Secretary of the U.S. Department of Commerce and his/her designees regarding the catch and sale of Atlantic herring and failure to pay taxes.
- Sentenced on 07/10/24 to 2 years of probation, 50 hours of community service, $32,889.43 restitution.
- Ethan Chase (46, Portsmouth, NH; Part-time captain of the Western Sea)
- Pleaded guilty on 03/11/24 to conspiracy to submit false information to the Secretary of the U.S. Department of Commerce and his/her designees regarding the catch and sale of Atlantic herring and failure to pay taxes.
- Sentenced on 07/09/24 to 2 years of probation, 50 hours of community service, $2,000 fine, $39,289.39 restitution.
Previously sentenced:
- Glenn Lawrence (70, Owls Head; Owner of fishing/transport vessel the Double Eagle)
- Pleaded guilty on 11/07/23 to unlawful purchase of fish in interstate commerce, and aiding and abetting (Lacey Act Violation).
- Sentenced on 05/03/24 to 2 years of probation, $9,500 fine, 50 hours community service.
- Duston Reed (42, Waldoboro; Owner New Moon Fisheries, Inc.)
- Pleaded guilty on 12/27/23 to unlawful purchase of fish in interstate commerce, and aiding and abetting (Lacey Act Violation).
- Sentenced on 04/29/24 to 2 years of probation, $25,000 fine, 100 hours community service.
- New Moon Fisheries, Inc. (Friendship)
- Pleaded guilty on 12/27/23 to unlawful purchase of fish in interstate commerce, and aiding and abetting (Lacey Act Violation).
- Sentenced on 04/29/24 to 2 years of probation, $15,000 fine.
- Samuel Olsen (73, Cushing; Owner Sam’s Seafood LLC)
- Pleaded guilty on 10/17/23 to unlawful purchase of fish in interstate commerce, and aiding and abetting (Lacey Act Violation).
- Sentenced on 04/12/24 to 1 year of probation, $9,500 fine, 50 hours community service.
- Andrew Banow (37, Rockport; Crew member)
- Pleaded guilty on 03/14/24 to conspiracy to submit false information to the Secretary of the U.S. Department of Commerce and his/her designees regarding the catch and sale of Atlantic herring and failure to pay taxes.
- Sentenced on 04/12/24 to 1 year of probation, $1,000 fine, $20,177 restitution.
“Atlantic herring is a vital resource in Maine, particularly to the thousands of people involved in the lobster industry in the state. Led by Glenn Robbins and Western Sea, the defendants in this case subverted regulations for the sole purpose of lining their own wallets – regulations that are in place to ensure Atlantic herring are not overfished and are available for future generations of fishermen and safeguard the viability of the marine ecosystem,” said U.S. Attorney Darcie N. McElwee. “I commend the investigators on this case, including those from NOAA, for their efforts to ensure the sustainable management of an industry so vital to all that is Maine.”
“Protecting our nation's honest fishermen is, and will always be, a top priority for NOAA. Egregious acts that undermine the sustainable management of our fisheries resources and steal from those in the industry who follow the rules will not be tolerated,” said Michael Henry, Assistant Director for NOAA’s Office of Law Enforcement's Northeast Division.
“The sentencing of all involved with the Western Sea investigations sends a powerful message to the commercial fishing industry,” said IRS CI Special Agent in Charge Harry T. Chavis Jr. “This investigation demonstrates IRS-CI’s commitment to investigating and prosecuting all those that violate the U.S. Tax Code, no matter who they are.”
NOAA, IRS – Criminal Investigation, and the Maine Marine Patrol investigated the case.
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*Updated 07/12/24 to correct fine amount for defendant Glenn Lawrence
- Glenn Robbins (77, Eliot; Owner Western Sea, Inc. & Captain R. Herring; Captain of the Western Sea)
Sacramento Resident Indicted for Possession of Stolen Mail and Intent to DefraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Stephanie Lynn Fahlgren, 47, of Sacramento, charging her with possession of stolen mail, unlawfully possessing a mail key or lock, and unauthorized possession of 15 or more access devices, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 20, 2024, Fahlgren was in possession of stolen mail, mail keys or locks, and more than 15 debit or credit cards, which are counterfeit and unauthorized access devices. Fahlgren possessed those devices with intent to defraud her victims.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Alex Cárdenas is prosecuting the case.
If convicted, Fahlgren faces a maximum statutory penalty of five years in prison for possession of stolen mail, 10 years in prison for possession of mail key or lock and 20 years in prison for unlawful possession of 15 or more access devices. Each count carries a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rite Aid Corporation and Affiliates Agree to Settle False Claims Act and Controlled Substance Act Allegations Related to Opioid DispensingRead the Press Release
The Justice Department announced that Rite Aid Corporation (Rite Aid) and 10 subsidiaries and affiliates have agreed to settle the government’s allegations under the False Claims Act (FCA) and Controlled Substances Act (CSA) asserted in United States ex rel. White et al. v. Rite Aid Corp., et al., No. 1:21-cv-1239 (N.D. Ohio). Under the settlement, the government will be paid $7.5 million and have an allowed, unsubordinated, general unsecured claim of $401.8 million in Rite Aid’s bankruptcy case that is pending in the District of New Jersey. During the relevant time period, Rite Aid operated one of the country’s largest retail pharmacy chains with over 2,200 retail pharmacies in 17 states.
“Filling unnecessary prescriptions for powerful and addictive opioids, as the government alleged here, not only takes a toll on our communities, but also violates the law,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As today’s settlement illustrates, the Justice Department is committed to holding pharmacies accountable for their role in the nation’s opioid crisis.”“Pharmacies and pharmacists have an affirmative legal duty to ensure that the prescriptions they fill are legitimate,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “When they disregard this responsibility and instead ignore red flags indicating that prescriptions for addictive painkillers are invalid, they violate the public’s trust and harm the community they are supposed to serve — all to make a buck. Our settlement with Rite Aid reinforces the Northern District of Ohio’s continued commitment to combatting the opioid crisis. My office and our law enforcement partners will continue to battle this epidemic by ensuring that corporate actors comply with their legal obligations, which help to restrict unwarranted public access to highly addictive medications, and thereby fight to keep vulnerable members of our communities from becoming addicted to opioids.”
The government’s complaint alleges that, from May 2014 through June 2019, Rite Aid knowingly dispensed at least hundreds of thousands of unlawful prescriptions for controlled substances that (1) lacked a legitimate medical purpose and were not issued in the usual course of professional practice and/or (2) were not valid prescriptions, were not for a medically accepted indication or were medically unnecessary. These unlawful prescriptions included, for example, prescriptions for the dangerous, highly diverted combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as highly addictive oxycodone and fentanyl, and prescriptions issued by prescribers who Rite Aid pharmacists had repeatedly identified internally as suspicious and as writing unlawful, unnecessary prescriptions. The government further alleges that Rite Aid filled these prescriptions despite clear “red flags,” which highly indicated the prescriptions were unlawful and which pharmacists are trained to recognize. Rite Aid also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions, including specific concerns raised by its pharmacists, and intentionally deleted internal notes about suspicious prescribers written by Rite Aid pharmacists, such as “writing excessive dose[s] for oxycodone,” and “DO NOT FILL CONTROLS.” By knowingly dispensing unlawful prescriptions for controlled substances, the government alleges that Rite Aid violated the CSA and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the FCA.
Along with Rite Aid Corporation, the government’s complaint names as defendants the following Rite Aid subsidiaries: Rite Aid Hdqtrs Corp.; Rite Aid of Connecticut Inc.; Rite Aid of Delaware Inc.; Rite Aid of Maryland; Rite Aid of Michigan; Rite Aid of New Hampshire; Rite Aid of New Jersey; Rite Aid of Ohio; Rite Aid of Pennsylvania and Rite Aid of Virginia.
“Pharmacies and pharmacists have a critical responsibility to ensure controlled substances are dispensed lawfully and safely to the public. This includes highly addictive opioids as we continue to see the impact of the opioid crisis,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is entering into a Corporate Integrity Agreement with Rite Aid, which includes a prescription drug claims review to have an Independent Review Organization determine whether prescription drugs are properly prescribed, dispensed, and billed. HHS-OIG will continue to work with our law enforcement partners to hold providers accountable that put the public at risk.”
“America continues to live through the worst opioid epidemic we have ever seen. Rite Aid contributed to this crisis by ignoring obvious red flags and dispensing hundreds of thousands of unnecessary opioids,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “DEA will continue to do everything in our power to protect the health and safety of Americans and to end the opioid epidemic.”
The civil settlement includes the resolution of claims that certain Rite Aid pharmacies in Washington State violated the CSA by filling prescriptions written by prescribers who lacked proper controlled substance prescribing authority. The settlement also resolves claims brought in 2019 under the qui tam, or whistleblower, provisions of the FCA by Andrew White, Mark Rosenberg and Ann Wegelin, who all previously worked for Rite Aid at various pharmacies. The FCA authorizes private parties to sue on behalf of the United States for false claims and share in any recovery and permits the United States to take over the lawsuit, as it did here in part. The relators will receive 17% of the government’s FCA recovery in this matter.
In addition to the civil settlement, Rite Aid has entered into agreements with DEA and HHS-OIG to address its obligations going forward. Rite Aid and DEA entered a memorandum of agreement (MOA) designed to increase communication between the company, its retailers and DEA. Employees will receive additional training to help them identify illegitimate prescriptions and minimize the risk of drug diversion. The MOA also requires Rite Aid to create and keep materials relevant to DEA investigations for a minimum of five years. Rite Aid further commits to implementing and managing an anonymous hotline for employees, patients and the public to report suspected illegal dispensing of highly diverted controlled substances as well as suspected violations of the CSA. Rite Aid has also entered into a corporate integrity agreement (CIA) with HHS-OIG. The CIA includes a prescription claims drug review to have an Independent Review Organization to determine whether prescription drugs are properly prescribed, dispensed and billed.
The settlement was approved on June 28 by the bankruptcy court as part of Rite Aid’s plan of reorganization, which is expected to become effective later this summer. The amount the government will recover on its unsecured claim under the settlement will depend on the ultimate amount of assets available to the bankruptcy estate for distribution to unsecured creditors.
The Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Ohio handled this matter. The DEA Cleveland Division, FBI Cleveland Field Office and HHS-OIG provided substantial assistance in the investigation.
Senior Trial Counsel Christopher Wilson of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Patricia Fitzgerald, Elizabeth Berry and Kathryn Andrachik for the Northern District of Ohio handled the White matter. Trial Attorneys Mary Schmergel, Gregory Werkheiser and Ryan Lamb of the Civil Division’s Corporate/Financial Litigation Section handled the Rite Aid bankruptcy case.
This settlement illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the HHS at 800-HHS-TIPS (800-447-8477).
The claims asserted against the defendants are allegations only. There has been no determination of liability.
Settlement
Rapid City Man Sentenced for Sexual Exploitation of a MinorRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Rapid City, South Dakota, man for Sexual Exploitation of a Minor. The sentencing took place on June 7, 2024.
Charles Nichols, 51, was sentenced to 24 years and 5 months in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Nichols was indicted for Sexual Exploitation of a Minor and Attempted Enticement of a Minor by a federal grand jury in March 2023. He pleaded guilty to Sexual Exploitation of a Minor on March 28, 2024.
Nichols admitted that he communicated with a minor, who was then aged 16 and 17, over Instagram for several months. He then offered her alcohol, marijuana, and vape pods in exchanged for sexual activity between August and October of 2022. Nichols used his cellular phone to record some of these sexual acts with the minor. Nichols was arrested after he drove to the Monument Arena in October of 2022, during the Black Hills Pow Wow, to exchange a vape pen for sexual acts with a different minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations and the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Heather Knox prosecuted the case.
Nichols was immediately remanded to the custody of the U.S. Marshals Service.
Raleigh Man Charged with Defrauding COVID Relief Program for over $1 MillionRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment yesterday charging a Raleigh man with defrauding the Paycheck Protection Program (PPP) for over $1 million. The indictment was unsealed today.
“We are devoting more resources than ever to prosecuting white collar fraud, especially on taxpayer-funded relief programs meant to serve the needy,” said U.S. Attorney Michael Easley. “Fairness in federally funded programs is fundamental to public trust and the rule of law.”
According to the indictment, Wilson Alfredo Olivera Borda, 44, received nine PPP loans in the names of five separate businesses—The Insurance Centers.Com Inc., The Insurance Centers LLC, Realty Vestors LLC, US-Kaizen LLC, and Ecobuild LLC—by allegedly falsely claiming on PPP applications that each business had substantial employees and operations. The indictment alleges that Olivera bolstered these fraudulent misrepresentations by submitting fabricated tax returns to PPP lenders.
The indictment also alleges that Olivera made additional false statements to obtain forgiveness on the loans and that all nine loans were fully forgiven and paid off by the U.S. Small Business Administration.
Olivera is charged with nine counts of wire fraud involving disaster-related benefits. If convicted, he faces a maximum of 30 years in prison.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation is investigating the case and Assistant U.S. Attorney Chris Cogburn is prosecuting the case.
The Fraud Section leads the Criminal Division's prosecution of fraud schemes that exploit the Paycheck Protection Program (PPP). Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at Justice.gov/OPA/pr/justice-department-takes-action-against-covid-19-fraud.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Prior Felon Sentenced to 96 Months in Federal Prison for Possession of A Firearm in Relation to Shooting IncidentRead the Press Release
TALLAHASSEE, FLORIDA – Tamylon Williams, 28, of Tallahassee, Florida, has been sentenced to 96 months in federal prison after previously pleading guilty for possession of a firearm by a convicted felon. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The investigation and prosecution of violent crime – in this case a fatal, mass casualty shooting by an armed repeat offender – is central to our mission to protect the public,” said U.S. Attorney Coody. “This sentence illustrates our shared resolve to keep our communities safe and the significant consequences associated with such federal crimes of violence.”
On October 29, 2022, at approximately 11:48 p.m., Tallahassee Police Department (TPD) Officers responded to gunshots being fired from the area of Half Time Liquors at 2101 West Pensacola Street in Tallahassee, Florida. TPD found several people who were wounded during the incident, and one individual who was killed by the gunfire.
“We are grateful that justice has prevailed, ensuring that Williams will be held accountable for his senseless actions and face the consequences," said Tallahassee Police Chief Lawrence Revell. “Following this tragic shooting, TPD officers and detectives worked tirelessly to uncover the truth and provide closure for the victim’s families. Today, we find solace in knowing that our justice system stands firm in prosecuting those who seek to disrupt our safety and harm our community.”
Video evidence from Half Time Liquors was obtained which shows Williams walking in the parking lot with the barrel of a rifle protruding out of the bottom of his jacket; other video shows Williams taking a stance consistent with firing a gun. Williams is later seen entering a vehicle and placing an AK-style rifle into the backseat. Officers located the vehicle at a gas station within a couple hours of the shooting, and the rifle was recovered from the backseat. Williams had prior felony convictions prohibiting him from possessing the rifle.
Williams is still pending related charges in State Court for the 2nd Judicial Circuit, where he is presumed innocent.
Williams’ prison sentence will be followed by 3 years of supervised release.
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.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
This conviction was the result of an investigation by the Tallahassee Police Department, Florida Highway Patrol, Leon County Sheriff’s Office, and the Bureau of Alcohol Tobacco & Firearms. The case was prosecuted by Assistant United States Attorney Meredith L. Steer.
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 for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pennsylvania Man Convicted of Conspiring to Launder Cybercrime Fraud ProceedsRead the Press Release
Birmingham, Ala. – A jury has convicted a recidivist money launderer from Pennsylvania for his role in an international money laundering conspiracy, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton Peeples.
The jury returned a guilty verdict against Toochukwu Michael Okorie, 46, of Bristol, Pennsylvania, after three days of testimony and argument before U.S. District Court Judge L. Scott Coogler. Okorie was convicted of conspiracy to commit money laundering. Okorie had previously been convicted of wire fraud and money laundering in the Eastern District of Pennsylvania in 2011.
“This conviction shows that juries see through money launderers’ attempts to disguise the movement of fraud proceeds as legitimate business transactions,” U.S. Attorney Escalona said. “My office will continue to prosecute those who knowingly help move fraud proceeds, especially those who’ve been previously convicted of fraud and money laundering.”
“Individuals who engage in this type of illegal activity continue to refine and develop new ways to launder ill-gotten proceeds and play a significant role in the circle of criminal activity which continues to plague our communities,” said Special Agent in Charge Carlton Peeples of the Birmingham Division. “The FBI will continue to work with our law enforcement partners, the public and private sector, and communities, to aggressively pursue those engaged in money laundering and hopes this sentence serves as a warning to others.”
According to evidence presented at trial, from June 2017 through May 2019, Okorie helped launder hundreds of thousands of dollars in fraud proceeds through two front companies: TMO Consulting LLC and Collective Intelligence Forensics LLC. During the conspiracy, Okorie and his co-conspirators would receive wire transfers from business email compromise, romance scam, and other frauds—including from victims in the Northern District of Alabama. Okorie and his co-conspirators would then move the fraud proceeds among bank accounts in an effort to disguise their origin and conceal their fraudulent nature. After paying themselves a commission, members of the conspiracy would ultimately wire the proceeds to bank accounts in Nigeria or use them to purchase automobiles that were shipped overseas.
U.S. District Court Judge Anna M. Manasco previously sentenced two other individuals involved in the money laundering conspiracy: On January 20, 2022, Paulinus Ebhodaghe, 40, of Clementon, New Jersey, was sentenced to 37 months in prison; and Ohimai Asikhia, 37, of Glassboro, New Jersey, was sentenced to 18 months in prison.
The maximum penalty for conspiracy to commit money laundering is 10 years in in prison.
The FBI investigated the case. Assistant U.S. Attorneys Edward J. Canter and John M. Hundscheid are prosecuting the case.
The U.S. Secret Service Cyber Fraud Task Force provided assistance during the investigation.
For more resources on cybercrime, visit www.ic3.gov.
Pennsylvania Man Charged with Alien Smuggling & Human TraffickingRead the Press Release
Salt Lake City, Utah – A federal grand jury returned an indictment yesterday charging a dual citizen, living in Pennsylvania, who traveled to Salt Lake City for the purpose of paying for and obtaining tourist visas to promote the illegal smuggling of foreign nationals into the United States.
According to court documents, Sivarupan Sivaramalingam, 43, of Malvern, PA, was arrested on June 20, 2024, following a criminal investigation into a human smuggling organization. Working in an undercover capacity, an agent with the Department of Homeland Security Investigations was introduced to Sivaramalingam. Sivaramalingam believed that the undercover agent could provide means of entry into the United States for foreign nationals. Communicating through a mobile application used for instant messaging and voice-over-IP service, Sivaramalingam told the undercover agent he would pay approximately $12,500 U.S dollars, per foreign national, for an entry visa or some other valid document to enter the United States.
On April 8, 2024, Sivaramalingam traveled to Salt Lake City to meet the undercover agent and further discuss the illegal services mentioned for foreign nationals. Sivaramalingam provided the undercover agent hard copies of five Sri Lankan nationals’ passports and asked the agent to process the foreign nationals to obtain entry into the United States. During the meeting, Sivaramalingam and the undercover agent agreed to an initial down payment for the services in the amount of approximately $5,000 to start the process. On April 18, 2024, Sivaramalingam sent a picture of a bank receipt for $5,000 to the undercover agent via the phone app. The next day, the undercover agent received and confirmed that the $5,000 bank transfer was successfully deposited into his account. During May and June, communication continued between Sivaramalingam and the undercover agent and the undercover agent notified Sivaramalingam that he had acquired B1/B2 tourist visas for all five Sri Lankan nationals. B1/B2 tourist visas are not actually valid entry documents, nor authorized, for travel or entry into the U.S.
On June 20, 2024, Sivaramalingam and the undercover agent met again in Salt Lake City for Sivaramalingam to receive the tourist visas and pay another $6,000 for the undercover agent’s services. It was agreed the rest would be paid upon successful entry of the foreign nationals into the U.S. During the exchange, the undercover agent told Sivaramalingam that the process of getting the visas was not legal or legitimate.
As alleged in the complaint, the human smuggling organization is believed to be based in the United States, but is smuggling foreign nationals into the U.S. from all over the world, namely India and Sri Lanka.
Sivaramalingam is charged with Alien smuggling, and human trafficking with respect to involuntary servitude and forced labor. His initial appearance on the indictment is scheduled for July 12, 2024, at 1:00 p.m. in courtroom 8.4 at the United States District Courthouse in downtown Salt Lake City.
United States Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated jointly by the Department of Homeland Security (DHS), U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Oparations (ERO), and Homeland Security Investigations (HSI).
Assistant United States Attorney Carlos Esqueda of the U.S. Attorney’s Office for the District of Utah 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.
Park City Businessman Sentenced to 12 Months’ Imprisonment for $1.7M Wire Fraud SchemeRead the Press Release
Salt Lake City, Utah – Timothy Andrew Nemeckay, 64, of Park City, Utah, was sentenced yesterday to 12 months’ and one day imprisonment, and 24 months supervised release. In September 2023, Nemeckay admitted to wire fraud, which involved misappropriating approximately $1.7 million from investors investing in the development of a brewery and restaurant in Utah and California.
Nemeckay’s sentence was imposed by U.S. District Court Judge David Barlow, who also ordered Nemeckay to pay $1,705,778.00 in restitution, and the forfeiture of $308,893.53 in proceeds from the sale of his home in Park City.
According to court documents and statements made at the change of plea hearing, from early 2013 to 2020, Nemeckay lied to investors that Mine Shaft Brewing was raising funds to develop a brewery and restaurant in Park City and later in Santa Clarita, California. Nemeckay was the founder and manager of Mine Shaft Brewing. He lied to investors about what he would do with their money, and he concealed information about his background, including the fact that he was banned from raising securities statewide by the Utah State Securities Division.
Between 2014 and 2019, Nemeckay misappropriated approximately $1.7 million from 100 investors by comingling funds into his personal and business-related accounts. For example, he used investor money to pay himself, previous securities violations, personal bills and utilities, personal mortgage payments, luxury items at Louis Vuitton and Christian Louboutin, concert tickets, swingers clubs, strip clubs, and vacations to Hawaii and Cancun, Mexico.
United States Attorney Trina A. Higgins made the announcement.
The case was investigated by the Utah Division of Securities and the FBI Salt Lake City Field Office.
Assistant United States Attorneys Brian Williams and Jacob Strain from the U.S. Attorney’s Office for the District of Utah prosecuted the case.
Orlando Man Charged with Possession of A MachinegunRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Jeremiah Cundiff (19, Orlando) with possession of a machinegun. If convicted, Cundiff faces a maximum penalty of 10 years in federal prison. The indictment also notifies Cundiff that the United States intends to forfeit a Glock GMBH 23 .40 caliber pistol, a machinegun conversion device, and associated ammunition.
According to the indictment, on October 23, 2023, Cundiff possessed a machinegun.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with valuable assistance from the Orange County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Noah P. Dorman.
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.
Oklahoma City Man who Shot Police Officer Responding to Domestic Call Sentenced to Federal PrisonRead the Press Release
OKLAHOMA CITY –JOEL KEENAN LEWIS, 67, of Oklahoma City, has been sentenced to serve the statutory maximum, 120 months, in prison for being a drug user in possession of a firearm, with credit for time served in state custody, announced U.S. Attorney Robert J. Troester.
According to public record, on January 23, 2021, an officer with the Oklahoma City Police Department responded to Lewis’s home on a domestic call. Moments after the officer arrived, Lewis exited the home, pointed a pistol directly at the officer’s chest, and fired it at point-blank range at the officer. The officer was hit in both the chest and hand. The officer sustained minor injuries, in large part due to the safety armor beneath his uniform.
On August 1, 2023, a federal grand jury charged Lewis—who had a long history of marijuana use—with being a drug user in possession of a firearm. On October 23, 2023, Lewis pleaded guilty and admitted to using marijuana in January of 2021, despite not having a medical marijuana card, and to possessing firearms during this same time.
At the sentencing hearing on July 8, 2024, U.S. District Judge Stephen P. Friot sentenced Lewis to serve the statutory maximum, 120 months, in confinement, with credit for time served in a related conviction for shooting with intent to kill in Oklahoma County District Court case CF-2021-401. Judge Friot also ordered Lewis to serve three years of supervised release upon his release from federal prison. In announcing the sentence, Judge Friot noted the dangerous combination of chronic drug abuse and firearms and the risk that combination poses to the community.
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. Attorneys Jacquelyn M. Hutzell and David McCrary prosecuted the case.
Reference is made to public filings for additional information.
Ohio Man Sentenced to 65 Months in Prison for Swapping Fentanyl, Cash for Counterfeit PillsRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Thursday sentenced an Ohio man who arranged to buy 200,000 counterfeit pills to 65 months in prison.
On June 27, 2021, Matthew Prunty, 31, of the Dayton area, sent another man to exchange $46,000 and 2,000 pills containing fentanyl for 200,000 counterfeit prescription pills at a state park in Franklin County, Missouri. The exchange had been arranged via an encrypted messaging app with an account that had been taken over by the FBI. Prunty’s courier and co-defendant, De Vonte Cole, was arrested after the exchange by the Missouri State Highway Patrol on Interstate 44. The pills Cole delivered contained a total of more than 240 grams of fentanyl.
Prunty pleaded guilty in January in U.S. District Court in St. Louis to conspiracy to distribute a controlled substance. Cole is serving a 30-month sentence after also pleading guilty.
The FBI, Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Postal Inspection Service and the Missouri State Highway Patrol investigated the case. Assistant U.S. Attorney John Ware prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (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.
Oahu Man Sentenced to 188 Months in Prison for Distributing Child PornographyRead the Press Release
HONOLULU – Casey Young, 4o, of Kaneohe, Hawaii was sentenced on July 10, 2024, by Senior United States District Judge Helen Gillmor to 188 months in prison and a lifetime of supervised release as a registered sex offender for distributing child pornography. Young previously pleaded guilty in on December 14, 2023.
According to information produced to the court, by at least January 2023, Young was an avid user of multiple end-to-end encrypted messaging applications that he had downloaded on his cellphone and other devices. Using an anonymous screen name, at the time of his arrest in September 2023, Young was part of over 75 groups that involved other anonymous individuals who shared images and videos of child pornography and messaged about child pornography and child sex abuse. Each group or room in which Young was a member catered to a particular type of child pornography, ranging all ages and genders. As a member of a room, that individual generally had access to all the child pornography that was shared in the room from other members.
Generally, for entry into any child pornography room, an individual had to be vetted first by a moderator of the room and share with the moderator at least two images or videos of child pornography on theme with the room. Among other things, a moderator of a room had control over vetting, adding new members, and removing members from rooms for lurking, that is, not sharing enough child pornography over a period of time. Young moderated over a dozen rooms across two encrypted applications. Young also downloaded thousands of images and videos of child pornography onto his devices. In January and March 2023, an undercover FBI agent on one of the applications observed Young distribute child pornography videos in two different rooms.
“This conduct is another confirmation of sexual predators utilizing social media to exploit children, as well as storing pornographic images on electronic media,” said U.S. Attorney Clare E. Connors. “The law provides substantial prison terms for sexual exploitation of children, and such a penalty was appropriately imposed in this case.”
“This sentence should serve notice to others that the FBI does not tolerate those who prey on our keiki,” said FBI Special Agent in Charge Steven Merrill. “We take these types of cases seriously and will do whatever it takes to bring child predators to justice.”
This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Rebecca Perlmutter handled the prosecution.
North Louisiana Men Convicted of Illegal Possession of Methamphetamine and Firearms Receive Hefty Federal Prison SentencesRead the Press Release
MONROE, La. – United States Attorney Brandon B. Brown announced the sentencing of three defendants for violations of drug and firearms offenses. Chief United States District Judge Terry A. Doughty sentenced the three defendants as follows:
Tyrone L. Singleton, 41, of Ruston, Louisiana, was sentenced to 288 months (24 years) in prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine. Singleton pleaded guilty to the charge on March 14, 2024. This charge is the result of an investigation into drug trafficking activities in the Ruston area. In June 2023, law enforcement agents executed a search warrant of his residence. Inside the residence, agents found methamphetamine, a digital scale, and a Taurus .45 caliber revolver. The suspected narcotics were submitted to the crime lab for testing, and it was determined to be methamphetamine with a weight of at least 50 grams.
This case was investigated by U.S. Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Union Parish Sheriff’s Office, and Lincoln Parish Narcotics Enforcement Team, and prosecuted by Assistant United States Attorney Jessica D. Cassidy.
Justin Stampley, 26, of West Monroe, was sentenced to 144 months (12 years) in prison, followed by 3 years of supervised release, for possession with intent to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking offense. On May 24, 2023, law enforcement agents executed a controlled purchase of methamphetamine and hydrocodone from Stampley at his home in West Monroe. Agents observed Stampley handle multiple firearms during the purchase and on the next day, obtained a search warrant for his residence. The search warrant was executed at Stampley’s residence on May 25, 2023, and during the search, agents recovered approximately 61.70 grams of methamphetamine and four firearms, including a Chinese SKS rifle, a Bersa 9mm pistol, a F.I.E. .25 caliber pistol, and a NEF .32 caliber revolver. Stampley pleaded guilty on March 21, 2024, to the two counts listed above.
This case was investigated by the DEA, ATF and Ouachita Parish Sheriff’s Office and prosecuted by Assistant United States Attorney William C. Gaskins.
Robert Luther Sherman, 48, of Choudrant, was sentenced to 18 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. On March 4, 2023, deputies with the Ouachita Parish Sheriff’s Office conducted a traffic stop of a vehicle in which Sherman was a passenger. Sherman was ordered to exit the vehicle and a pat-down search was conducted of his person. Inside Sherman’s front pocket was a North American Arms .22 magnum revolver. Deputies learned that Sherman had a previous felony conviction for attempted possession of a Schedule II controlled substance. During a subsequent interview with law enforcement agents, Sherman admitted that he knew he was prohibited from possessing any firearm or ammunition and he pleaded guilty to the charge on March 11, 2024.
This case was investigated by the ATF and Ouachita Parish Sheriff’s Office and prosecuted by Assistant United States Attorney Leon H. Whitten.
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New Orleans Man Sentenced for Being Convicted Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DARRON BLUE (“BLUE”), age 27, a resident of New Orleans, was sentenced on July 10, 2024 to fifty-seven (57) months in prison, three years of supervised release and payment of a $100 mandatory special assessment fee, by U.S. District Judge Lance M. Africk, after previously pleading guilty to being a convicted felon in possession of a firearm.
According to court records, on October 1, 2023, New Orleans police officers developed BLUE as a suspect in a downtown New Orleans shooting and secured both an arrest warrant for him, and a search warrant for his residence. During the execution of the search warrant, police officers seized a Smith & Wesson Model SW40VE, .40 caliber semi-automatic pistol, as well as .40 and .45 caliber ammunition.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department for their work on this case. Assistant U.S. Attorney Troy L. Bell of the Violent Crimes Unit is in charge of the prosecution.
New Jersey Man Charged with Soliciting Destruction of Energy FacilitiesRead the Press Release
Note: View the criminal complaint here.
Andrew Takhistov, 18, of East Brunswick, New Jersey, was arrested yesterday and made his initial appearance in court today for allegedly soliciting another individual to destroy energy facilities.
“Andrew Takhistov was allegedly on his way to Ukraine to join the Russian Volunteer Corps when we arrested him on charges of recruiting an individual to destroy an electrical substation here in the United States in order to advance his white supremacist ideology,” said Attorney General Merrick B. Garland. “I am grateful to the FBI and the Joint Terrorism Task Force for their exceptional work disrupting this dangerous plot.”
“This complaint alleges that the defendant’s posts referenced Adolf Hitler, encouraged violence against Black and Jewish communities, praised mass shooters, and discussed causing death and destruction on a large scale,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The defendant was allegedly enroute to join the Russian Volunteer Corps, which he described as specializing in assassinations, attacks on power grids, and other infrastructure sabotage, so that he could act on his violent plans. We will not tolerate these kinds of alleged terroristic threats, and working with our partners, we will always be ready to root out and bring to justice anyone who attempts to carry out these acts.”
According to court documents, in January, Takhistov began communicating on a social messaging platform with an individual who, unbeknownst to Takhistov, was an undercover law enforcement employee. Takhistov had previously posted on the messaging platform (often posting in racially/ethnically motivated extremist [RMVE]-aligned channels), requesting advice about weapons, disseminating manuals on how to construct homemade weapons, and expressing interest in traveling overseas to engage in paramilitary-style training. Throughout these posts, Takhistov referenced Adolf Hitler, encouraged violence against various ethnic and religious communities (including Black and Jewish individuals), and praised mass shooters.
Throughout Takhistov’s communications with the undercover employee, Takhistov repeatedly referred to his RMVE ideology and his desire to advance that ideology through violent means. In May, Takhistov informed the undercover employee that he was planning to travel to Ukraine in July to join the Russian Volunteer Corps, explaining that he chose this organization because it was openly National Socialist and, more importantly, specialized in assassinations, attacks on power grids and other infrastructure sabotage.
Takhistov discussed infrastructure sabotage, specifically how to damage an electrical substation using Mylar balloons or Molotov cocktails, which Takhistov explained how to make. Takhistov told the undercover employee that, while Takhistov was in the Ukraine, the undercover employee needed to carry out at least one event of serious activism.
On two occasions in June and July, at Takhistov’s direction, Takhistov and the undercover employee drove to two different electrical substations in North Brunswick and New Brunswick, New Jersey. During these visits, Takhistov instructed the undercover employee on numerous aspects of how to conduct an attack on an electrical substation.
On July 5, during one of these meetings, Takhistov directed the undercover employee to take several photographs of the electrical substations so that Takhistov could send them to his Russian friend for additional advice on how to best sabotage the stations.
Takhistov was arrested Wednesday afternoon at Newark Liberty International Airport where he was planning to travel to Paris on his way to Ukraine.
Takhistov is charged with one count of soliciting another individual to engage in criminal conduct that involved destroying a public service enterprise group circuit breaker and substation. If convicted, he faces a maximum penalty of 10 years in prison and a $125,000 fine.
The FBI is investigating the case.
Assistant U.S. Attorney Vera Varshavsky for the District of New Jersey and Trial Attorney James Donnelly of the National Security Division’s Counterterrorism Section are prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Navy Detective Agrees to Resign After Pleading Guilty to Using Unreasonable Force and Making a False StatementRead the Press Release
NEWS RELEASE SUMMARY – July 11, 2024
SAN DIEGO – Jonathan Christopher Laroche, a detective with the Department of the Navy’s Criminal Investigations Division, pleaded guilty in federal court today, admitting that he used unreasonable force when he used a carotid restraint on a handcuffed man to the point of unconsciousness. Laroche admitted to later grabbing the man by the throat and pushing his head against a wall while the man was handcuffed to a bench.
Laroche also pleaded guilty to willfully concealing his prior record of excessive force at the El Cajon Police Department in order to be hired as a detective by the Navy.
In the hearing before U.S. Magistrate Judge Michelle M. Pettit, Laroche admitted that on November 14, 2023, while he was on duty, he encountered a man identified in court documents as G.D., who had been detained and transported to the security building aboard Naval Base San Diego by other Navy law enforcement personnel.
Although Laroche did not know why G.D. had been detained, he followed the other Navy law enforcement officers into a separate room. At the time, G.D.’s hands were handcuffed behind him, and he posed no threat to Laroche or anyone else in the room. Nevertheless, Laroche immediately took G.D. to the ground and used a carotid restraint that lasted approximately 17 seconds and caused G.D. to lose consciousness.
After G.D. regained consciousness, he was taken back into the main room of the security building, where Laroche handcuffed him to a bench. In a subsequent interaction, while G.D. remained handcuffed to the bench and was not a threat to anyone, Laroche grabbed G.D. by the throat and pushed his head against the wall. Laroche had to be pulled away from G.D. by a supervisor. Laroche admitted that during both of these incidents, he acted willfully and intentionally, depriving G.D. of his right to be free from unreasonable seizure, which includes the right to be free from the unreasonable use of force, under the Fourth Amendment to the U.S. Constitution.
According to his plea agreement, Laroche also admitted that he lied in his August 15, 2022, application to the Criminal Investigations Division about the circumstances under which he left his prior employment with the El Cajon Police Department. Specifically, Laroche represented to the Department of the Navy that he had left the El Cajon Police Department because he had been “hired by U.S. Department of Defense police.” On the application, he falsely indicated that he had not been reprimanded or disciplined while employed by El Cajon Police Department and had not “quit after being told [he] would be fired,” among other false statements.
In reality, Laroche resigned from the El Cajon Police Department in June 2018 after being informed he was going to be fired as a result of two separate incidents in 2017 where he was found to have used excessive force against civilians. He also received a letter of reprimand in September 2015 for an earlier incident in which he used excessive force. Laroche admitted that he knowingly and willfully provided this false information in his application to the Criminal Investigations Division.
“This defendant’s violent acts against someone who posed no threat are reprehensible,” said U.S. Attorney Tara McGrath. “Today, we stripped of power and held accountable an outlier who abused his authority and tarnished his badge.”
“The investigation into Mr. Laroche revealed that he betrayed his oath to protect and serve the Navy by using unreasonable force while on duty and by deliberately hiding his history of such offenses in order to be hired by the Navy,” said Special Agent in Charge Nicholas Carter of the NCIS Southwest Field Office. “NCIS remains committed to rooting out criminality that threatens the safety of Navy service members, civilians, and their families.”
As part of his plea agreement with the United States, Laroche must resign from his position with the Criminal Investigations Division and is prohibited from seeking or applying for any position of employment with a law enforcement agency in the future.
Laroche is scheduled to be sentenced on October 2, 2024, at 10 a.m. before U.S. District Court Judge John A. Houston.
This case is being prosecuted by Assistant U.S. Attorney Seth Askins in coordination with the Naval Criminal Investigative Service. Former Special Assistant U.S. Attorney Arne J. Bussler assisted in the investigation.
DEFENDANT Case Number 24cr1431
Jonathan Christopher Laroche Age: 40 Spring Valley, CA
SUMMARY OF CHARGES
False Statement – Title 18, U.S.C., Section 1001
Maximum penalty: Five years in prison and $250,000 fine
Deprivation of Rights Under Color of Law (misdemeanor) – Title 18, U.S.C., Section 242
Maximum penalty: One year in prison and $100,000 fine
INVESTIGATING AGENCY
Naval Criminal Investigative Service
Middlesex County Man Charged with Soliciting Destruction of Energy FacilitiesRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was arrested for allegedly soliciting another individual to destroy energy facilities, Attorney General Merrick B. Garland and U.S. Attorney Philip R. Sellinger of the District of New Jersey announced today.
Andrew Takhistov, 18, of East Brunswick, New Jersey, is charged by complaint with one count of soliciting another individual to engage in criminal conduct that involved destroying a Public Service Enterprise Group (PSE&G) circuit breaker and substation. Takhistov was arrested on July 10, 2024, appeared today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court, and was detained.
“Andrew Takhistov was allegedly on his way to Ukraine to join the Russian Volunteer Corps when we arrested him on charges of recruiting an individual to destroy an electrical substation here in the United States in order to advance his white supremacist ideology,” Attorney General Merrick B. Garland said. “I am grateful to the FBI and the Joint Terrorism Task Force for their exceptional work disrupting this dangerous plot.”
U.S. Attorney Philip R. Sellinger“This complaint alleges that the defendant’s posts referenced Adolf Hitler, encouraged violence against Black and Jewish communities, praised mass shooters and discussed causing death and destruction on a large scale. The defendant was allegedly enroute to join the Russian Volunteer Corps, which he described as specializing in assassinations, attacks on power grids, and other infrastructure sabotage, so that he could act on his violent plans. We will not tolerate these kinds of alleged terroristic threats, and working with our partners, we will always be ready to root out and bring to justice anyone who attempts to carry out these acts.”
“Imagine the chaos and number of life-threatening emergencies if a large population of people in New Jersey lost power in the middle of the current heat wave,” FBI – Newark Special Agent in Charge James E. Dennehy said. “We allege Takhistov, who is only 18 years old, planned to travel overseas so he could learn lessons from Russians fighting in Ukraine on how to destroy power grids and other critical infrastructure. His alleged conversations and planned actions are chilling and were inspired by racially motivated violent extremism. Disrupting all of our lives was the goal. I want to commend the agents and detectives of the Newark Joint Terrorism Task Force, other local and state law enforcement partners, and prosecutors who moved with exceptional speed in this investigation. Their work is saving lives.”
“This defendant exemplifies the threat posed by racially and ethnically motivated violent extremism,” NYPD Commissioner Edward A. Caban said. “Whether in his efforts to instruct our undercover officer on how to sabotage critical infrastructure, or in his attempted travel overseas to join a National Socialist paramilitary force, he sought to advance his ideological goals through destruction and violence. The NYPD and our law enforcement partners will remain relentless in our mission to identify, investigate, and inhibit anyone who has designs on plotting acts of terror.”
According to documents filed in this case and statements made in court:
In January 2024, Takhistov began communicating on a social messaging platform with an individual who, unbeknownst to Takhistov, was an undercover law enforcement employee. Takhistov had previously posted on the messaging platform (often posting in racially/ethnically motivated extremist [RMVE]-aligned channels), requesting advice about weapons, disseminating manuals on how to construct homemade weapons, and expressing interest in traveling overseas to engage in paramilitary-style training. Throughout these posts, Takhistov referenced Adolf Hitler, encouraged violence against various ethnic and religious communities (including Black and Jewish individuals), and praised mass shooters.
Throughout Takhistov’s communications with the undercover employee, Takhistov repeatedly referred to his RMVE ideology and his desire to advance that ideology through violent means. In May 2024, Takhistov informed the undercover employee that he was planning to travel to Ukraine in July 2024 to join the Russian Volunteer Corps (RVC), explaining that he chose this organization because it was openly National Socialist and, more importantly, specialized in assassinations, attacks on power grids, and other infrastructure sabotage.
Takhistov discussed infrastructure sabotage, specifically how to damage an electrical substation using Mylar balloons, or Molotov cocktails, which Takhistov explained how to make. Takhistov told the undercover employee that, while Takhistov was in the Ukraine, the undercover employee needed to carry out at least one event of serious activism.
On two occasions in June and July 2024, at Takhistov’s direction, Takhistov and the undercover employee drove to two different electrical substations in North Brunswick and New Brunswick. During these visits, Takhistov instructed the undercover employee on numerous aspects of how to conduct an attack on an electrical substation.
On July 5, 2024, during one of these meetings, Takhistov directed the undercover employee to take several photographs of the electrical substations so that Takhistov could send them to his Russian friend for additional advice on how to best sabotage the stations.
Takhistov was arrested Wednesday afternoon at Newark Liberty International Airport where he was planning to travel to Paris, France on his way to Ukraine.
The charge of solicitation to destruct an energy facility is punishable by a maximum penalty of 10 years in prison and a $125,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge Dennehy in Newark, and the New York City Police Department Intelligence Division, under the direction of Commissioner Caban, with the investigation leading to the arrest. He also thanked the East Brunswick Police Department, under the direction of Chief Frank LoSacco, the Milltown Police Department, under the direction of Chief Chris Johnson, the New Brunswick Police Department, under the direction of Chief Vincent Sabo, and the Port Authority Police Department, under the direction of Superintendent Edward T. Cetnar.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Office’s National Security Unit and Trial Attorney James Donnelly of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
takhistov.complaint.pdf