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20 August 2024
Pittsburgh Man Indicted on Methamphetamine, Fentanyl, and Cocaine Trafficking ChargeRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Eric Gerome Clancy, 38, of Pittsburgh’s East Hills neighborhood as the sole defendant.
According to the Indictment, on or about May 15, 2024, Clancy knowingly possessed with intent to distribute crack cocaine, powder cocaine, and a mixture containing methamphetamine and fentanyl. Following a stop for traffic violations by Mt. Lebanon police and subsequent search of Clancy’s vehicle, officers discovered nine “bricks” containing a mixture of methamphetamine and fentanyl. Officers also recovered from the vehicle several ounces of crack and powder cocaine, as well as a scale, in addition to finding a large amount of U.S. currency on Clancy.
At the time of the offense, Clancy was on federal supervised release following a 90-month sentence in federal prison for a drug trafficking and firearms conviction.
The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney V. Joseph Sonson is prosecuting this case on behalf of the government.
The Mt. Lebanon Police Department and Drug Enforcement Administration conducted the investigation leading to the Indictment.
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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Payroll Company Owner Sentenced for Employment Tax Crimes and Embezzling from Employees’ 401(k) PlansRead the Press Release
A Maryland woman was sentenced today to one year and one day in prison for not paying employment taxes to the IRS and embezzling from an employee benefit plan.
According to court documents and statements made in court, Michelle Leach-Bard, of Lutherville-Timonium, was the owner and sole corporate officer of iProcess Online Inc., a third-party accounting company that specialized in payroll, human resources and bookkeeping. From at least October 2016 through the end of 2021, she was, as iProcess’ sole corporate officer, responsible for withholding Social Security, Medicare and income taxes from employees’ wages and paying those taxes to the IRS. Though the taxes were withheld, Leach-Bard did not pay them to the IRS, as she was required to do.
In total, Leach-Bard caused a tax loss to the IRS of $2,663,264.12.
In addition, iProcess had a Section 401(k) Profit Sharing and Retirement Plan for the benefit of some of its employees. Contributions to the 401(k) Plan were deducted from participating employees’ wages. Beginning in or around 2007, Leach-Bard did not pay those employee contributions to the 401(k) Plan. In total, Leach-Bard did not pay to the 401(k) plan approximately $207,180.41 in employee withholdings. Additionally, Leach-Bard did not make approximately $18,740.37 in employer matching contributions for certain employees.
In addition to the term in prison, U.S. District Judge Stephanie A. Gallagher ordered Leach-Bard to serve two years of supervised release and to pay $2,663,264.12 in restitution to the United States and approximately $207,180.41 in restitution to her former employees.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS Criminal Investigation and the U.S. Department of Labor, Employee Benefits Security Administration investigated the case.
Trial Attorneys Catriona Coppler and Jeffrey McLellan of the Tax Division prosecuted the case.
Pair of Clearfield County Men Charged in Connection with Targeted Bombing Resulting in Death of Victim Who Owed One Defendant Drug DebtRead the Press Release
JOHNSTOWN, Pa. – Two residents of Clearfield County, Pennsylvania, Clint Addleman, 47, and Kris Joseph Nevling, 47, have been indicted by a federal grand jury in Johnstown on charges of conspiracy to maliciously destroy property by explosive or fire and possession of an unregistered destructive device, United States Attorney Eric G. Olshan announced today. Addleman is also charged with malicious destruction of property by explosive or fire resulting in death, and conspiracy to distribute methamphetamine. The four-count Superseding Indictment was returned today against Addleman of Morrisdale, Pennsylvania, and Nevling, of Houtzdale, Pennsylvania.
According to the Superseding Indictment, Addleman was a drug dealer operating in and around Clearfield, Pennsylvania, who obtained large quantities of methamphetamine, a Schedule II controlled substance, from one or more sources of supply and sold and redistributed the methamphetamine to his customers, including co-defendant Nevling and a Clearfield resident identified as S.L.C. In and around the summer of 2019, Addleman “fronted” several hundred dollars’ worth of methamphetamine to S.L.C.—i.e., he provided the drugs to S.L.C. without an upfront payment. As alleged, S.L.C. did not repay the drug debt owed to Addleman during the following months. On multiple occasions, Addleman allegedly threatened violence against S.L.C. in connection with her failure to repay him.
The Superseding Indictment further alleges that, in and around early October 2019, Nevling and Addleman aided and abetted each other in the construction and possession of a destructive device—a bomb—which was subsequently concealed inside a package addressed to S.L.C. using her nickname. In the early morning hours of October 4, 2019, the package containing the bomb, pictured below, was delivered to a multi-unit rental property in Clearfield, where S.L.C. rented an apartment on the first floor.
Later that morning, the bomb detonated inside S.L.C.’s apartment, killing S.L.C. and causing significant damage to the property, including by fire. A picture of the building after the fire was extinguished appears below:
“As alleged, Clint Addleman and Kris Joseph Nevling were responsible for building a bomb that was used to murder one of Addleman’s methamphetamine customers and almost completely leveled the building where she lived,” said U.S. Attorney Olshan. “This conduct—involving lethal retaliation over nothing more than an outstanding drug debt—shocks the conscience and has no place in our communities or anywhere else. We stand shoulder to shoulder with our law enforcement partners in our shared commitment to investigate and prosecute those whose conduct presents such a clear and present danger to others, whether in the form of distributing illegal drugs, building and detonating deadly bombs, or, in this case, both.”
“Our ATF Special Agents worked tirelessly alongside our federal, state, and local partners to seek justice in this brutal murder case,” said Eric DeGree, Special Agent in Charge of ATF’s Philadelphia Field Office. “The perpetrators tried to hide their crime through the illegal use of explosives, but using our unique forensic tools, we were still able to recover the evidence that ultimately indicted them.”
The law provides for a sentence of up to life in prison, a fine of up to $1 million for Addleman and $250,000 for Nevling, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Addleman is currently incarcerated serving an unrelated state sentence, and Nevling remains detained after being arrested on his original Indictment last fall.
Assistant United States Attorneys Maureen Sheehan-Balchon and Shaun E. Sweeney are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Superseding Indictment.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Insurance Firm Sentenced to 10 Years in Prison for $40 Million Scheme to Steal Client Healthcare Funds and Defraud LendersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ANTHONY RICCARDI, an owner and manager of the Connecticut insurance firm Employee Benefit Solutions LLC (“EBS”), was sentenced to 10 years in prison for conspiring to commit wire fraud and bank fraud. Between 2015 and 2019, RICCARDI and his co-conspirators used EBS as part of a widespread, $40 million scheme to misappropriate and steal client healthcare funds and defraud multiple lenders. RICCARDI previously pled guilty on February 21, 2023, before U.S. District Judge Philip M. Halpern, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “For years, Anthony Riccardi schemed to abuse his position of trust by stealing millions in fiduciary money that was meant to pay for important employee healthcare expenses. He used this stolen money to fund a lavish lifestyle that included luxury cars and a sprawling mansion. To keep the scheme going, Riccardi also defrauded lenders out of millions. Today’s sentence underscores that no matter how complex the scheme, those who use their positions defraud others and enrich themselves will answer for their crimes.
According to the Indictment, the Complaint, other court filings, and statements made during court proceedings:
From at least 2015 and continuing through 2019, RICCARDI was the 50% co-owner and Executive Vice President of EBS, which offered a variety of healthcare insurance-related services to clients. EBS, among other things, provided third party healthcare claims administration (“TPA”) services to clients that elected to “self-fund” (or self-insure) their employee healthcare plans. As a TPA, EBS would purportedly administer, process, and pay healthcare claims for its clients’ employees in exchange for an administrative fee.
Between at least 2015 and continuing through 2019, EBS represented an automobile dealership chain (“Company-1”) headquartered in Westchester County, New York. EBS served as a TPA for Company-1’s self-funded employee healthcare program and purported to process and pay claims to medical providers that treated Company-1’s employees. To do this, EBS generated bimonthly “check register” invoices for Company-1 that listed all employee healthcare expenses from healthcare providers during that two-week period. EBS also administered a bank account on Company-1’s behalf for the express purpose of paying Company-1 healthcare claims. Company-1 would fund each check register by paying the invoiced amount, expecting that EBS would promptly pay the claims to the healthcare providers. During this period, Company-1 transferred approximately $26 million to EBS for the payment of healthcare claims.
In reality, a significant number of purported checks listed on the EBS “check register” invoices were never actually deposited by the healthcare providers. Instead, approximately $17.87 million in Company-1 healthcare payments were misappropriated with the overwhelming majority simply transferred by EBS into its own operating account, where they were used for non-healthcare expenses by the managers and owners of EBS. For example, a review of bank records indicates that Company-1 healthcare funds were used by RICCARDI and his co-conspirators to pay their home mortgage expenses as well as a personal credit card account with expenses relating to boating, luxury cars, and golf.
EBS, through RICCARDI and his co-conspirators, made decisions on what few Company-1 healthcare claims they did pay based on which healthcare providers were likely to complain if they did not receive payment or if the claims were connected to Company-1 executives.
The “check registers” sent to Company-1 also contained millions of dollars in fraudulent or inflated healthcare claims that were eventually paid by Company-1. EBS routinely inflated the Company-1 check registers at the direction of RICCARDI and his co-conspirators. Such efforts were typically accomplished through RICCARDI and his co-conspirators instructing others to manually create fraudulent entries in the EBS claims processing software, including fake claims under the name of a business controlled by RICCARDI. RICCARDI and his co-conspirators also took steps to conceal their fraud from Company-1 by creating and sending manipulated and fabricated bank statements and checks to create the appearance that healthcare claims were being paid by EBS, when in reality, they were not.
By mid-2017, as EBS buckled under mounting outstanding fiduciary obligations, RICCARDI and his co-conspirators began an elaborate effort to conceal and perpetuate the ongoing fraud on Company-1 by applying for multiple fraudulent bank loans and merchant cash advances designed in part to pay various fiduciary obligations that EBS owed to Company-1. RICCARDI and his co-conspirators fraudulently applied for and received millions of dollars in loans under the auspices of financing the purchase of upgraded billing software for EBS, which included RICCARDI and his co-conspirators submitting fabricated invoices from a fake company that supposedly sold the billing software.
* * *
In addition to the prison term, RICCARDI, 46, of New Canaan, Connecticut, was sentenced to three years of supervised release. He was additionally ordered to pay $14,870,653.36 in restitution and forfeit $2,000,000.00.
RICCARDI’s co-defendant, Patricia Riccardi, was previously sentenced to 30 months in prison following her guilty plea to one count of conspiring to commit wire fraud and bank fraud before Judge Halpern.
RICCARDI’s co-conspirator, Erin Verespy, was previously sentenced to 66 months in prison following her guilty plea to one count of conspiring to commit wire fraud and bank fraud before U.S. District Judge Cathy Seibel.
Mr. Williams praised the outstanding investigative work of the U.S. Postal Inspection Service and the Special Agents of the U.S. Attorney’s Office. Mr. Williams also thanked the U.S. Department of Labor, Employee Benefits Security Administration; the U.S. Department of Labor, Office of Inspector General; and the U.S. Secret Service, which are assisting in the investigation, as well as the U.S. Attorney’s Office for the District of Connecticut.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Nicholas S. Bradley is in charge of the prosecution.
Owensboro Man Federally Indicted for Sexually Exploiting ChildrenRead the Press Release
Owensboro, KY – A federal grand jury sitting in Bowling Green, Kentucky, returned a nine-count indictment on August 14, 2024, charging an Owensboro, Kentucky man with numerous offenses related to the sexual exploitation of children.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Commissioner Phillip Burnett, Jr. of the Kentucky State Police made the announcement.
According to the indictment, Matthew D. Constant, 52, was charged with two counts of online enticement of a minor, three counts of receipt of child pornography, two counts of sexual exploitation of a minor, and two counts of transferring obscene material to a minor.
The defendant made an initial court appearance on August 19, 2024, before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. The Court ordered the defendant detained pending trial. If convicted, Constant faces a minimum sentence of 15 years and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by FBI Owensboro and the Kentucky State Police.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, is prosecuting this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The FBI Louisville Field Office is seeking to identify potential victims of Mathew D. Constant. If you are your minor dependent(s) have information about Constant, please contact the FBI at [email protected]. Your responses are voluntary but may be useful in the federal investigation in identifying you or your child as a potential victim. Victims may be eligible for certain services, restitution, and rights under federal and/or state law.
An 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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Oregon Man Charged in Swatting and Bomb Threats Scheme That Targeted Jewish Hospitals in New York City and Long IslandRead the Press Release
Earlier today, an indictment was unsealed charging Domagoj Patkovic with conspiring to make and making threats concerning explosives, conspiring to transmit and transmitting threatening communications, and conveying false information concerning explosives. Patkovic was arrested this morning at his residence in Portland, Oregon and will make his initial appearance before U.S. Magistrate Judge Youlee Yim Yu in U.S. District Court of Oregon later today.
Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, the defendant and his coconspirators, motivated by their hatred of Jewish people, targeted Jewish hospitals and care centers in New York City and on Long Island with hoax bomb threats, needlessly endangering patients and staff by creating chaos and alarm,” stated United States Attorney Peace. “Our highest priority is ensuring all members of our community are protected and we will use all resources possible to prosecute dangerous bomb threats and swatting schemes to the fullest extent of the law.”
Mr. Peace expressed his appreciation to the New York City Police Department, Nassau County Police Department and the U.S. Attorney’s Office for the District of Oregon for their assistance on the case.
“Domagoj Patkovic allegedly issued a series of false bomb threats against Jewish healthcare facilities that prompted repeated emergency responses from local law enforcement and a partial evacuation from at least one hospital. These alleged actions incited unnecessary hysteria and redirected limited resources to mitigate a false alarm. The FBI will not tolerate those who utilize hoax bomb threat schemes to satisfy their anti-Semitic beliefs and endanger the wellbeing of our communities,” stated FBI Acting Assistant Director in Charge Curtis.
As set forth in the indictment and in court filings, beginning at least as early as May 2021, the defendant and others made anonymous phone calls in which they made violent threats, including threats to detonate explosive devices, to Jewish hospitals and care centers within the Eastern District of New York, among other targets throughout the United States.
The defendant himself made threats in at least six separate calls to hospitals and on a call with local law enforcement who had responded to a 911 notification from one of the hospitals. The defendant livestreamed the calls to others on an online social media and electronic communications service. On several occasions, local police responded to the scene and conducted bomb sweeps. On at least one occasion in September 2021, the hoax bomb threat resulted in a partial evacuation and lockdown of an entire hospital on Long Island. No explosive devices were ultimately found in any of the locations.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, he faces up to 155 years’ imprisonment.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Laura Zuckerwise, and Andrew D. Reich are in charge of the prosecution, with assistance from Trial Attorney James Donnelly of the National Security Division’s Counterterrorism Section and Paralegal Specialist Wayne Colon.
The Defendant:
DOMAGOJ PATKOVIC
Age: 31
Portland, OregonE.D.N.Y. Docket No. 24-CR-317 (RER)
Opa-Locka Felon Pleads Guilty to Stealing FirearmRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Gee Seymour (31, Opa-Locka) has pleaded guilty to possessing a firearm as a convicted felon and possessing a stolen firearm. Seymour faces a maximum penalty of 15 years in federal prison for each offense. A sentencing date has not yet been set.
According to the court documents, on December 13, 2023, Seymour entered a pawn shop in Clearwater and stole a Ruger LC9 9mm pistol from a display case. The next day, the store owner called the ATF Tampa office and the Clearwater Police Department to report the stolen firearm. Just after midnight, Seymour’s vehicle was stopped by officers from the St. Petersburg Police Department due to the vehicle having no operable lights. During the traffic stop, officers smelled the odor of marijuana and searched Seymour’s vehicle. The officers located the firearm he had stolen from the pawn shop the day before. On December 21, 2023, ATF agents interviewed Seymour who admitted that he had stolen the firearm and was a convicted felon at the time. As a convicted felon, Seymour is prohibited from possessing a firearm of ammunition under federal law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clearwater Police Department, and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney David W.A. Chee.
Ocala Man Indicted for Attempting to Entice A 15-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Ocala, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Jhon Astudillo (45, Ocala) with attempted enticement of a minor to engage in sexual activity. If convicted, Astudillo faces a minimum mandatory sentence of 10 years, up to life, in federal prison.
According to court documents, on July 24, 2024, an undercover detective with the Marion County Sheriff’s Office (MCSO) posed as a 15-year-old girl on an online messaging application. Astudillo contacted the undercover detective’s account, and after learning the fictitious minor was 15 years old, Astudillo responded, “I like young girls like you.” Astudillo then sent multiple sexually explicit messages to the
“child.” Astudillo told her that he likes young girls because they are “perverted;” he described what he has done sexually with girls her age; he inquired about what she has done sexually with older men; and he asked to see her breasts so he could “rate” them. Astudillo arranged to meet the “child” that night at a predetermined location in Marion County. When Astudillo arrived at the location, he was arrested by law enforcement.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 Homeland Security Investigations, the Marion County Sheriff’s Office, the Ocala Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Belkis H. Callaos.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New Haven Man Pleads Guilty to Firearms and Narcotics OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SHAYQUAN GRAY, also known as “Scooby,” 23, of New Haven, pleaded guilty yesterday before U.S. Magistrate Judge Robert M. Spector in New Haven to unlawfully possessing a firearm, ammunition, and narcotics in New Haven.
According to court documents and statements made in court, on March 14, 2024, Gray, who had an active state arrest warrant, was observed participating in a drug transaction and was arrested on the state warrant. At the time of the arrest, he was found to be in possession of a Ziploc bag containing 80 small individual bags of cocaine, a Polymer 80 “ghost gun” loaded with six rounds of ammunition in the magazine, and over $1,200 in cash.
Gray pleaded guilty to possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. Possession with intent to distribute cocaine carries a maximum term of imprisonment of 20 years and possession of a firearm in furtherance of a drug trafficking crime carries a consecutive mandatory minimum term of imprisonment of five years and up to life imprisonment.
Gray has been detained since his arrest on March 14, 2024. Sentencing is scheduled for November 12, 2024 in Hartford.
This matter is being investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Christopher Lembo.
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. In May 2021, the Justice 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 www.justice.gov/psn.
Nationwide Home Healthcare and Hospice Provider to Pay $3.85M to Resolve False Claims Act AllegationsRead the Press Release
Intrepid U.S.A. Inc., headquartered in Dallas, and various wholly-owned subsidiaries (Intrepid) have agreed to pay $3,850,000 to resolve allegations that Intrepid violated the False Claims Act in connection with two lines of its business: first, that Intrepid knowingly submitted claims to Medicare for home healthcare services for patients who did not qualify for the Medicare home healthcare benefit or where services otherwise did not qualify for Medicare reimbursement; and second, that Intrepid knowingly submitted claims to Medicare for patients who did not qualify for the hospice benefit. The settlement is based on Intrepid’s ability to pay.
The United States alleged that, between 2016 and 2021, 19 Intrepid home healthcare facilities submitted claims to Medicare for home healthcare services for patients who did not qualify or were not properly certified as eligible for the Medicare home healthcare benefit, where the services provided were not reasonable or medically necessary, where the services were provided by untrained staff, or where services were not performed. Separately, the United States alleged that, between 2016 and 2021, three Intrepid hospice facilities admitted patients to hospice care who were ineligible for the Medicare hospice benefit because they were not terminally ill or continued providing services to patients who should have been discharged because they no longer met the requirements for the Medicare hospice benefit.
“Medicare’s hospice and home healthcare benefits provide critical services to vulnerable patient populations across the country,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement reflects our commitment to ensuring that these benefits are used to care for those who need them and not just to enrich those who seek to provide them.”
“The Medicare Program provides vital health insurance to the elderly and disabled population,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “Our office will vigorously pursue unscrupulous providers who choose to illegally and improperly bill the Medicare Program.”
“Businesses who engage in improper Medicare billing practices undercut the legitimate provision of healthcare services for patients in need,” said U.S. Attorney Andrew Luger for the District of Minnesota. “This settlement reinforces the importance of holding accountable health care providers who seek financial gain above quality patient care.”
“Home health is designed to increase health care access for our most vulnerable populations with mobility limitations, while hospice care aims to provide comfort and relief for the terminally ill. Exploiting these systems for financial gain is intolerable,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to pursue health care providers who jeopardize the integrity of these services by prioritizing profit over medically necessary palliative care.”
The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act in two different lawsuits. One qui tam action was brought by Jennifer Jones, a former travel nurse, and Pamela Joffe, a former Director of Quality Assessment Performance Improvement and New Business Development, for Intrepid. The qui tam case is captioned U.S. ex rel. Jones v. Intrepid USA Healthcare Inc., No. 19-sc-2973 (D. Minn.). The second qui tam action was brought by Marsha Rigney, a former Director of Clinical Excellence and Integrity, and Janet Watts, a former Regional Manager of Clinical Excellence, for Intrepid. This qui tam case is captioned U.S. ex rel. Rigney v. Intrepid U.S.A. Inc., No. 3:20-cv-95-RGJ (WDKY). Under the provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. Relators Jones and Joffe will receive $333,985 from the settlement proceeds, and Relators Rigney and Watts will receive $359,014 from the settlement proceeds.
The resolution of these matters 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 Kentucky and U.S. Attorney’s Office for the District of Minnesota. HHS-OIG assisted in the investigations.
The investigation and resolution of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney Anthony Gill of the Civil Division’s Commercial Litigation Branch, Fraud Section, Assistant U.S. Attorney Benjamin Schecter for the Western District of Kentucky and Assistant U.S. Attorney Kristen Rau for the District of Minnesota investigated the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementNationwide Home Healthcare and Hospice Provider to Pay $3.85M to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – Intrepid U.S.A. Inc., headquartered in Dallas, and various wholly-owned subsidiaries (Intrepid) have agreed to pay $3,850,000 to resolve allegations that Intrepid violated the False Claims Act in connection with two lines of its business: first, that Intrepid knowingly submitted claims to Medicare for home healthcare services for patients who did not qualify for the Medicare home healthcare benefit or where services otherwise did not qualify for Medicare reimbursement; and second, that Intrepid knowingly submitted claims to Medicare for patients who did not qualify for the hospice benefit. The settlement is based on Intrepid's ability to pay.
The United States alleged that, between 2016 and 2021, 19 Intrepid home healthcare facilities submitted claims to Medicare for home healthcare services for patients who did not qualify or were not properly certified as eligible for the Medicare home healthcare benefit, where the services provided were not reasonable or medically necessary, where the services were provided by untrained staff, or where services were not performed. Separately, the United States alleged that, between 2016 and 2021, three Intrepid hospice facilities admitted patients to hospice care who were ineligible for the Medicare hospice benefit because they were not terminally ill or continued providing services to patients who should have been discharged because they no longer met the requirements for the Medicare hospice benefit.
“Medicare’s hospice and home healthcare benefits provide critical services to vulnerable patient populations across the country,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement reflects our commitment to ensuring that these benefits are used to care for those who need them and not just to enrich those who seek to provide them.”
“The Medicare Program provides vital health insurance to the elderly and disabled population,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “Our office will vigorously pursue unscrupulous providers who choose to illegally and improperly bill the Medicare Program.”
“Businesses who engage in improper Medicare billing practices undercut the legitimate provision of healthcare services for patients in need,” said U.S. Attorney Andrew Luger for the District of Minnesota. “This settlement reinforces the importance of holding accountable health care providers who seek financial gain above quality patient care.”
“Home health is designed to increase health care access for our most vulnerable populations with mobility limitations, while hospice care aims to provide comfort and relief for the terminally ill. Exploiting these systems for financial gain is intolerable,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to pursue health care providers who jeopardize the integrity of these services by prioritizing profit over medically necessary palliative care.”
The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act in two different lawsuits. One qui tam action was brought by Jennifer Jones, a former travel nurse, and Pamela Joffe, a former Director of Quality Assessment Performance Improvement and New Business Development, for Intrepid. The qui tam case is captioned U.S. ex rel. Jones v. Intrepid USA Healthcare Inc., No. 19-sc-2973 (D. Minn.). The second qui tam action was brought by Marsha Rigney, a former Director of Clinical Excellence and Integrity, and Janet Watts, a former Regional Manager of Clinical Excellence, for Intrepid. This qui tam case is captioned U.S. ex rel. Rigney v. Intrepid U.S.A. Inc., No. 3:20-cv-95-RGJ (WDKY). Under the provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. Relators Jones and Joffe will receive $333,985 from the settlement proceeds, and Relators Rigney and Watts will receive $359,014 from the settlement proceeds.
The resolution of these matters 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 Kentucky and U.S. Attorney’s Office for the District of Minnesota. HHS-OIG assisted in the investigations.
The investigation and resolution of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney Anthony Gill of the Civil Division’s Commercial Litigation Branch, Fraud Section, Assistant U.S. Attorney Benjamin Schecter for the Western District of Kentucky and Assistant U.S. Attorney Kristen Rau for the District of Minnesota investigated the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
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Nationwide Home Healthcare and Hospice Provider to Pay $3.85M to Resolve False Claims Act AllegationsRead the Press Release
MINNEAPOLIS – Intrepid U.S.A., Inc., headquartered in Dallas, Texas, and various wholly-owned subsidiaries (Intrepid) have agreed to pay $3,850,000 to resolve allegations that Intrepid violated the False Claims Act in connection with two lines of its business: first, that Intrepid knowingly submitted claims to Medicare for home healthcare services for patients who did not qualify for the Medicare home healthcare benefit or where services otherwise did not qualify for Medicare reimbursement; and second, that Intrepid knowingly submitted claims to Medicare for patients who did not qualify for the hospice benefit. The settlement is based on Intrepid’s ability to pay.
The United States alleged that between 2016 and 2021, 19 Intrepid home healthcare facilities submitted claims to Medicare for home healthcare services for patients who did not qualify or were not properly certified as eligible for the Medicare home healthcare benefit, where the services provided were not reasonable or medically necessary, where the services were provided by untrained staff, or where services were not performed. Separately, the United States alleged that between 2016 and 2021, three Intrepid hospice facilities admitted patients to hospice care who were ineligible for the Medicare hospice benefit because they were not terminally ill or continued providing services to patients who should have been discharged because they no longer met the requirements for the Medicare hospice benefit.
“Medicare’s hospice and home healthcare benefits provide critical services to vulnerable patient populations across the country,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement reflects our commitment to ensuring that these benefits are used to care for those who need them and not just to enrich those who seek to provide them.”
“The Medicare Program provides vital health insurance to the elderly and disabled population,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “Our office will vigorously pursue unscrupulous providers who choose to illegally and improperly bill the Medicare Program.”
“Businesses who engage in improper Medicare billing practices undercut the legitimate provision of healthcare services for patients in need,” said U.S. Attorney Andrew Luger for the District of Minnesota. “This settlement reinforces the importance of holding accountable health care providers who seek financial gain above quality patient care.”
“Home health is designed to increase health care access for our most vulnerable populations with mobility limitations, while hospice care aims to provide comfort and relief for the terminally ill. Exploiting these systems for financial gain is intolerable,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to pursue health care providers who jeopardize the integrity of these services by prioritizing profit over medically necessary palliative care.”
The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act in two different lawsuits. One qui tam action was brought by Jennifer Jones, a former travel nurse, and Pamela Joffe, a former Director of Quality Assessment Performance Improvement and New Business Development, for Intrepid. The qui tam case is captioned U.S. ex rel. Jones v. Intrepid USA Healthcare Inc., No. 19-sc-2973 (D. Minn.). The second qui tam action was brought by Marsha Rigney, a former Director of Clinical Excellence and Integrity, and Janet Watts, a former Regional Manager of Clinical Excellence, for Intrepid. This qui tam case is captioned U.S. ex rel. Rigney v. Intrepid U.S.A. Inc., No. 3:20-cv-95-RGJ (W.D. Ky.). Under the provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. Relators Jones and Joffe will receive $333,985 from the settlement proceeds, and Relators Rigney and Watts will receive $359,014 from the settlement proceeds.
The resolution of these matters 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 Kentucky and the U.S. Attorney’s Office for the District of Minnesota. HHS-OIG assisted in the investigations.
The investigation and resolution of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney Anthony Gill of the Civil Division’s Commercial Litigation Branch, Fraud Section, Assistant U.S. Attorney Benjamin Schecter for the Western District of Kentucky and Assistant U.S. Attorney Kristen Rau for the District of Minnesota investigated the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
NIRP and founder to pay nearly $9M to resolve alleged kickback referral violationsRead the Press Release
HOUSTON – National Interventional Radiology Partners PLLC (NIRP) along with its founder and its CEO have agreed to pay to the United States $8,884,091 to resolve Federal False Claims Act (FCA) and Anti-Kickback Statute violation allegations, announced U.S. Attorney Alamdar S. Hamdani.
The settlement claims NIRP and Dr. Andrew Gomes, 48, Sugar Land, illegally paid physicians for referrals to clinics established to surgically treat patients with Peripheral Arterial Disease (PAD), a circulatory disease which causes plaque build-up in the arteries. It most commonly affects the lower legs of elderly individuals.
Beginning in 2015, Gomes established a number of clinics throughout Texas under the NIRP umbrella to surgically treat PAD. Gomes raised capital for these clinics from physicians who had medical practices that would provide a strong patient base for Medicare referrals including primary care physicians, doctors of podiatric medicine and family practitioners.
Gomes’ pitch to the investor physicians was that they could ensure high returns on their investment in each surgical center from referring significant numbers of patients for treatment. Gomes told the investing physicians that more patient referrals would lead to more revascularization surgeries and higher profits – which funnels back to the investing physicians as monthly dividends.
Gomes also told the physicians that once the surgical centers were up, running and profitable, they could be sold which would create additional value for investors. Surgeries such as arteriograms, angiograms, angioplasties and atherectomies that revascularize the lower limbs of patients with PAD are highly compensated procedures.
“Healthcare providers that pursue patient referrals through improper financial arrangements will be held accountable,” said Hamdani. “These types of improper financial arrangements corrupt medical decision making, increase costs and undermine the integrity of federally funded health programs. Patients deserve care based upon their specific medical needs and not on an individual physician’s financial interest or gain.”
“Medical providers and others who unlawfully accept kickbacks for patient referrals undermine the integrity of medical decision-making and waste taxpayer dollars,” said Special Agent in Charge Jason E. Meadows of Department of Health and Human Services-Office of Inspector General (DHHS-OIG). "We remain committed to working with our law enforcement partners and prosecutors to hold those who defraud Medicare accountable and restore the integrity of the Medicare trust fund.”
“Dr. Gomes and NIRP clearly prioritized greed above the health and well-being of their elderly patients,” said FBI Houston Special Agent in Charge Douglas Williams. “We applaud the qui tam whistleblower who exposed this scheme and encourage others to report illegal medical practices. FBI Houston will continue to identify and investigate those who would undermine the integrity of our healthcare system for their own financial gain.”
This civil settlement resolves claims brought under the qui tam or whistleblower provisions of the FCA. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of the recovery. In this instance, the whistleblower filed his complaint in late 2018, which triggered this investigation. The whistleblower will receive 19 percent of the recovery or $1,687,977. The FCA is one of the most powerful tools that the federal government has in its arsenal combat health care fraud.
The investigation and resolution of the allegations was the result of a coordinated effort between the U.S. Attorney’s Office for the Southern District of Texas, DHHS-OIG and FBI.
Former Assistant U.S. Attorneys Andrew Bobb and Julie Redlinger handled the case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Monroe Man Is Sentenced to Prison for Operating an Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Christon Jermaine Brewer, 39, of Monroe, N.C., was sentenced today to 33 months in prison followed by three years of supervised release and was ordered to pay restitution in the amount of approximately $210,000 for operating an investment scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to court records and court proceedings, from 2018 to 2022, Brewer executed a scheme to defraud at least ten victim-investors of more than $200,000. Brewer’s victims, including friends and acquaintances, were induced to invest in the scheme after Brewer promised he would invest their funds in the stock market. Brewer represented himself to victims as a wealthy investor, who had access to investment opportunities that would return profits and yield guaranteed returns. Relying upon Brewer’s false and fraudulent representations, victims sent thousands of dollars to the defendant in cash, or via mobile peer-to-peer payment methods, such as Apple Pay or Cash App.
Contrary to promises he made to his victims, Brewer did not invest their money as agreed. Instead, he used it to pay for various personal expenses to support his lifestyle. While he was spending the victims’ money, Brewer convinced victims into believing their investments were safe, by sending them text messages that provided purported updates on their investments and screenshots falsely showing the high returns on their investments.
On June 26, 2023, Brewer pleaded guilty to wire fraud. He is currently released on bond and will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
The FBI led the investigation. Assistant U.S. Attorney William Bozin of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Missouri Man Sentenced to 10 Years in Prison for Selling Fentanyl to Overdose VictimRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a man who sold fentanyl to someone who later suffered a fatal overdose to 10 years in prison.
Dylan C. McMikle provided several lines of powdered fentanyl that the 25-year-old victim snorted early on the morning of Dec. 16, 2022. The victim left McMikle’s home at approximately 6 a.m., after buying a capsule containing fentanyl. The victim, who had been struggling with a serious addiction, died of a drug overdose that evening.
After the victim’s death, investigators found messages between the victim and McMikle about obtaining fentanyl. McMikle consented to a search of his home and officers found a small baggie of fentanyl powder and several fentanyl pills.
McMikle, 22, of Jackson, Missouri, pleaded guilty in February to one felony count of distribution of fentanyl. Another man pleaded guilty last year and admitted buying fentanyl from McMikle.
The case was investigated by the Drug Enforcement Administration, the Southeast Missouri Drug Task Force and the Sikeston Department of Public Safety. Assistant U.S. Attorney Jack Koester prosecuted the case.
Middlesex County Man Charged with Production and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was charged with producing and possessing photos depicting child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Anthony Lagotta Jr., 54, of Plainsboro, New Jersey, is charged by complaint with one count each of production and possession of child pornography. He had his initial appearance before U.S. Magistrate Judge Stacey D. Adams in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
Approximately 15 years ago, Lagotta sexually assaulted two minor victims and took photos depicting that abuse. In July 2022, Lagotta uploaded approximately 30 of those images to a child pornography website hosted on the darknet. During a search of Lagotta’s residence on Aug. 19, 2024, authorities discovered on Lagotta’s computer approximately 700 images depicting sexual abuse of one of those two minor victims, including some of the same images that Lagotta had previously posted on the darknet forum.
The charge of production of child pornography carries a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited FBI Newark’s Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. U.S. Attorney Sellinger also thanked the Plainsboro Police Department and the Middlesex County Prosecutor’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government is represented by Assistant U.S. Attorney Ariel Douek of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
lagotta.complaint.pdfMexican National Charged with Illegal Reentry After Committing an Aggravated FelonyRead the Press Release
MINNEAPOLIS – A Mexican national has been indicted for unlawful reentry of a deported alien after committing an aggravated felony, announced U.S. Attorney Andrew M. Luger.
According to court documents, Jonathan Chavez-Galarza, 27, was found in the United States after having been previously deported following a Second-Degree Assault with a Dangerous Weapon conviction in Hennepin County on December 5, 2018.
The indictment charges Chavez-Galarza with one count of reentry of removed alien after an aggravated felony. Chavez-Galarza made his initial appearance on August 14, 2024, in U.S. District Court before Magistrate Judge Elizabeth Cowan Wright.
This case is the result of an investigation conducted by U.S. Immigration and Customs Enforcement (ICE) and the United States Marshals Service.
Assistant U.S. Attorney David Green is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Member of Russian cybercrime group charged in OhioRead the Press Release
CINCINNATI – A member of a Russian cybercrime group has been charged federally and appeared in U.S. District Court in Cincinnati today.
A federal grand jury indicted Deniss Zolotarjovs, 33, of Moscow, Russia, charging him with conspiring to commit money laundering, wire fraud and Hobbs Act extortion.
He was arrested by law enforcement in the country of Georgia in December 2023 and has remained in custody since. Georgia extradited Zolotarjovs to the United States this month.
According to court documents, Zolotarjovs is a member of a known cybercriminal organization that attacks computer systems of victims around the world. Among other things, the Russian cybercrime group steals victim data and threatens to release it unless the victim pays ransom in cryptocurrency. The group maintains a leaks and auction website that lists victim companies and offers stolen data for download.
It is alleged that Zolotarjovs was an active member of the Russian cybercrime group, communicating with other members, laundering cryptocurrency received from victims, and extorting victims. Zolotarjovs is the first alleged group member to be arrested and extradited to the United States.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. U.S. Attorney Parker and SAC Iatarola commend the FBI offices in Cleveland, San Diego, Richmond and Salt Lake City for their vital roles in the investigation and officials in Georgia for their role in the extradition. Assistant United States Attorney Megan Gaffney Painter is representing the United States in this case. The Justice Department’s Office of International Affairs provided significant assistance in securing Zolotarjovs’s extradition from Georgia.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Maryland felon pleads guilty to federal firearms offense in VirginiaRead the Press Release
RICHMOND, Va. – A Maryland man pled guilty today to being a felon in possession of a firearm.
According to court documents, on Nov. 8, 2023, Damontae James Garner, 24, of Silver Spring, was driving a stolen Cadillac when Virginia State Police observed him making erratic lane changes. When the trooper attempted to initiate a traffic stop, Garner accelerated. Garner drove the stolen vehicle over stop sticks that had been deployed by another trooper, puncturing the tires and stopping the car when it collided with the rear guard of a parked tractor trailer in a weigh station. Garner and a female passenger got out of the Cadillac and briefly fled on foot before troopers detained them.
While conducting an inventory search to tow the Cadillac, a trooper found a backpack containing a 7.62 caliber, semi-automatic firearm loaded with 26 rounds of ammunition. Garner admitted in today’s plea that he possessed the firearm. As a previously convicted felon, Garner cannot legally possess a firearm or ammunition.
Garner is scheduled to be sentenced on Jan. 8, 2025. He faces up to 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after U.S. District Judge Roderick C. Young accepted the plea.
Assistant U.S. Attorney Jessica Wright is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-49.
Man Sentenced to 20 Years in Prison for Drug-Linked Murder in Butler CountyRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a man who fatally shot someone in Butler County, Missouri to protect a heroin conspiracy to 20 years in prison.
James Odell Johnson pleaded guilty in U.S. District Court in Cape Girardeau to one count of conspiracy to distribute heroin and one count of conspiracy to possess and discharge a firearm in furtherance of a drug trafficking crime. He admitted shooting a man in Poplar Bluff at the behest of Shanesha “Nikki” Burns in connection with a heroin distribution conspiracy. The victim’s body was discovered on May 20, 2018.
The heroin conspiracy involving Johnson and Burns began at least as early as 2018, according to their guilty pleas. James Michael Cohen and others would transport heroin from St. Louis, Missouri to Butler County twice a month. Cohen and others would then sell the heroin. Members of the conspiracy used Burns’ home just outside Poplar Bluff to sell and store heroin. Burns also sold heroin. Johnson obtained heroin for his own use and for resale from Cohen and others in half-ounce to ounce quantities. Cohen also supplied firearms to Johnson at various times during the conspiracy.
Two days before Johnson’s victim’s body was discovered, the Missouri State Highway Patrol learned that heroin was being processed and packaged at Burns’ home. The Southeast Missouri Drug Task Force and the Butler County Sheriff’s Office went to the house and Burns agreed to let them perform a search. They found marijuana, heroin and cocaine base. Burns believed that someone who had just left the home had tipped off police and told Johnson that she wanted him killed. Johnson lured the victim to the home with drugs supplied by Burns and Cohen, and then invited the victim to a rural area to go shooting. When the victims’ gun jammed, Johnson shot him with his own 9mm handgun. Johnson was later arrested with murder weapon.
Cohen was found in the possession of drugs and guns multiple times. On Jan. 28, 2019, police stopped him and digital scales, a 9mm semi-automatic handgun, methamphetamine, heroin and $2,494 in cash. On Oct. 8, 2020, he was caught with another handgun, as well as about 444 grams of meth. On Feb. 23, 2021, Cohen was arrested at a St. Louis hotel with about 468 grams of fentanyl and 778 grams of meth. He had a pistol in his car.
Burns, now 37, pleaded guilty to conspiracy to distribute heroin and conspiracy to possess a firearm in furtherance of a drug trafficking crime and Judge Schelp sentenced her in March to 20 years in prison. Cohen, 37, of St. Louis County, pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute heroin. He was sentenced to 18 years in prison in February.
The sentence for Johnson runs consecutive to a 10-year term that he received for a 2018 case in which he shot a Poplar Bluff police detective / Drug Enforcement Administration task force officer in the arm. Johnson received a total of 30 years in prison in that 2018 case.
The Southeast Missouri Drug Task Force, the Poplar Bluff Police Department, the Butler County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missouri State Highway Patrol investigated the case.
This effort 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.
Los Angeles Man Admits Conspiring to Launder MoneyRead the Press Release
NEWARK, N.J. – A California man today admitted conspiring to launder money obtained from internet-related fraud, U.S. Attorney Philip R. Sellinger announced.
Charles Singleton, 64, of Los Angeles, California, pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of conspiracy to commit money laundering (Count One).
According to documents filed in this case and statements made in court:
From September 2018 to August 2020, Singleton worked with conspirators to launder money obtained through business email compromises, a method of wire fraud often targeting businesses or individuals working on business transactions involving high-dollar wire transactions. The fraud is carried out by compromising, hacking, or “spoofing” legitimate email accounts through social engineering or computer intrusion techniques to cause employees of a target company, or other individuals involved in legitimate business transactions, to conduct unauthorized transfers of funds, most often to accounts controlled by the fraud perpetrators.
Singleton opened several business bank accounts in the names of companies he controlled and received proceeds of wire fraud in those accounts. Singleton and his conspirators then withdrew and transferred money from various bank accounts and shared among themselves the account information of bank accounts. Singleton also executed at least one fraudulent contract with a conspirator for a wire of $70,000. As part of the plea, Singleton agreed to forfeit over $1.1 million constituting proceeds derived from the conspiracy.
The charge of money laundering conspiracy carries a maximum term of 20 years in prison and a fine of up to $500,000 or twice the value of the funds involved in the transfer, whichever is greater. Sentencing is scheduled for Jan. 28, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, Woodland Park Office, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the U.S. Attorney’s Office’s Criminal Division in Newark.
singleton.indictment.pdfLarge-Scale Hartford-Area Fentanyl Distributor Sentenced to 10 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOHNNY MILNER, also known as “Blaze” and “O.G.,” 46, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 10 years of imprisonment, followed by four years of supervised release, for trafficking fentanyl.
According to court documents and statements made in court, the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department received information from various sources that Milner was distributing fentanyl to street-level narcotics dealers in the SANA apartment complex located on Main Street in Hartford, which is commonly referred to as the “Sands,” and that he was using locations on Prospect Avenue and Bellevue Street in Hartford to store and distribute narcotics. On February 21 and March 15, 2023, investigators made controlled purchases of approximately 100 grams of fentanyl from Milner at a liquor store he operated on Hillside Avenue in Hartford.
On March 29, 2023, investigators conducted court-authorized searches of locations in Hartford and New Britain connected to Milner. A search of the Bellevue Street apartment revealed packaged fentanyl, numerous items used to process and package narcotics, and a loaded .22 caliber Ruger rifle. A search of an apartment on Chestnut Street in New Britain that Milner used revealed approximately 64 grams of xylazine-laced fentanyl, several digital scales, a money-counting machine, and $221,301 in cash. Milner was arrested at the New Britain apartment.
Milner has been detained since his arrest. On March 12, 2024, he pleaded guilty to possession with intent to distribute, and distribution of, 40 grams or more of fentanyl.
On January 22, 2024, Milner’s associate, James Jones, 42, who lived at the Bellevue Street apartment, pleaded guilty to possession with intent to distribute fentanyl. He awaits sentencing.
In July 2021, during a separate drug trafficking investigation conducted by the Drug Enforcement Administration, investigators observed Milner carrying a shopping bag and entering the passenger side of a car that had just arrived at the Bellevue Street apartment. He then exited the car without the bag, but carrying a backpack. Investigators followed the car as it drove away, stopped it, and found the shopping bag. It contained $141,030 in cash, and was seized as suspected narcotics proceeds.
This matter was investigated by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department, with the assistance of the Drug Enforcement Administration’s Hartford Task Force. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Robert S. Ruff.
Laredo felon indicted for trafficking fentanyl and possessing various firearmsRead the Press Release
LAREDO, Texas – A 39-year-old man has been charged with conspiracy to distribute fentanyl, distribution of fentanyl, being a felon in possession of a firearm and possession of a machine gun, announced U.S. Attorney Alamdar S. Hamdani.
A federal grand jury has now returned a four-count indictment against Rolando Soliz. Previously in custody upon the filing of a criminal complaint Aug. 1, he is set to appear for his arraignment on the indictment in the near future.
According to the charges, over the course of two days, law enforcement conducted surveillance on Soliz. During the surveillance, authorities witnessed him allegedly perform multiple hand-to-hand narcotics transactions. Law enforcement stopped one of his customers who they searched and arrested for possession of fentanyl, according to the charges.
The charges further allege the customer had previously purchased fentanyl from Soliz. On previous occasions, he had also allegedly seen large quantities of fentanyl in Soliz’s apartment.
On July 31, authorities executed two search warrants for properties associated with Soliz and found 10 firearms including a short-barrel rifle with no serial number with modifications to operate as a machine gun, according to the charges.
As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.
In addition to the firearms, law enforcement allegedly discovered nearly 25 grams of fentanyl and seized $16,311 in U.S. currency.
If convicted, Soliz faces up to 20 years in federal prison and a possible $1 million maximum fine.
The Drug Enforcement Administration conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Customs and Border Protection, Webb County Attorney’s Office and Webb County Constables.
Assistant U.S. Attorney Andrew P. Hakala-Finch is prosecuting the case.
Justice Department Announces Civil Rights Investigation into Conditions at Tennessee’s Trousdale Turner Correctional CenterRead the Press Release
The Justice Department announced today that it has opened an investigation into the conditions at Trousdale Turner Correctional Center, a Tennessee Department of Correction facility operated by the private correctional management company CoreCivic. Trousdale Turner, located approximately an hour outside of Nashville, is Tennessee’s largest correctional facility.
Based on an extensive review of publicly available information and information gathered from stakeholders, the department has found significant justification to open this investigation, including state audits that have flagged dangerous understaffing and safety concerns since Trousdale Turner first opened in 2016. The investigation will examine whether Tennessee protects those incarcerated at Trousdale Turner from harm, including physical violence and sexual abuse.
“People are incarcerated at Trousdale Turner as punishment for their crimes, but in our legal system, punishment does not and cannot include violence and sexual abuse,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is launching this comprehensive investigation to determine if there are systemic constitutional violations regarding the treatment of people in this privately-run correctional facility. We are committed to protecting the constitutional rights of people held inside jails and prisons across our country.”
“Publicly available information suggests that Trousdale Turner has been plagued by serious problems since it first opened its doors,” said United States Attorney Henry C. Leventis. “This includes reports of staffing shortages, physical and sexual assaults, murders, and a 188% turnover rate among prison guards just last year. Although CoreCivic owns and operates Trousdale, the State of Tennessee is ultimately responsible for the safety of the people incarcerated there. This investigation seeks to determine whether Tennessee is meeting its constitutional obligations.”
The Justice Department notified State officials of the investigation earlier today and pledged that the department will work cooperatively with them in conducting the investigation and identifying solutions to any problems that are uncovered.
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act. This statute gives the department the authority to investigate systemic violations of the rights of individuals in institutional settings, including prisons.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorney’s Office for the Middle District of Tennessee. Individuals with relevant information are encouraged to contact the department via phone at 888-392-7031 or by email at [email protected].
Additional information about the Civil Rights Division’s work regarding correctional facilities is available on its website at www.justice.gov/crt/rights-persons-confined-jails-and-prisons.
Justice Department Announces Civil Rights Investigation into Conditions at Tennessee's Trousdale Turner Correctional CenterRead the Press Release
NASHVILLE – United States Attorney for the Middle District of Tennessee Henry C. Leventis and Assistant Attorney General Kristin Clarke of the Justice Department’s Civil Rights Division announced today that the Justice Department has opened an investigation into the conditions at Trousdale Turner Correctional Center, a Tennessee Department of Correction facility operated by the private correctional management company CoreCivic. Trousdale Turner, located approximately an hour outside of Nashville, is Tennessee’s largest correctional facility.
Based on an extensive review of publicly available information and information gathered from stakeholders, the department has found significant justification to open this investigation, including state audits that have flagged dangerous understaffing and safety concerns since Trousdale Turner first opened in 2016. The investigation will examine whether Tennessee protects those incarcerated at Trousdale Turner from harm, including physical violence and sexual abuse.
“Publicly available information suggests that Trousdale Turner has been plagued by serious problems since it first opened its doors,” said United States Attorney Henry C. Leventis. “This includes reports of staffing shortages, physical and sexual assaults, murders, and a 188% turnover rate among prison guards just last year. Although CoreCivic owns and operates Trousdale, the State of Tennessee is ultimately responsible for the safety of the people incarcerated there. This investigation seeks to determine whether Tennessee is meeting its constitutional obligations.”
“People are incarcerated at Trousdale Turner as punishment for their crimes, but in our legal system, punishment does not and cannot include violence and sexual abuse,” said Assistant Attorney General Kristen Clarke. “The Justice Department is launching this comprehensive investigation to determine if there are systemic constitutional violations regarding the treatment of people in this privately-run correctional facility. We are committed to protecting the constitutional rights of people held inside jails and prisons across our country.”
The Justice Department notified State officials of the investigation earlier today and pledged that the department will work cooperatively with them in conducting the investigation and identifying solutions to any problems that are uncovered.
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act. This statute gives the department the authority to investigate systemic violations of the rights of individuals in institutional settings, including prisons.
The U.S. Attorney’s Office for the Middle District of Tennessee is conducting this investigation jointly with the Civil Rights Division’s Special Litigation Section. Individuals with relevant information are encouraged to contact the department via phone at 888-392-7031 or by email at [email protected].
Additional information about the Civil Rights Division’s work regarding correctional facilities is available on its website at www.justice.gov/crt/rights-persons-confined-jails-and-prisons.
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Jury convicts federal inmate for punching and injuring deputy U.S. marshalRead the Press Release
HOUSTON – A federal jury has returned a guilty verdict against a man with ties to the Humble area for the assault of federal officer resulting in bodily injury, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately two hours before finding Cedric Tyrone Walker, 42, guilty after a two-day trial.
The jury heard that on Dec. 27, 2022, authorities learned that on two occasions Walker failed to return in a timely manner to the residential reentry center (RRC), also referred to as a halfway house, where he was serving a federal prison sentence.
Law enforcement told the RRC Walker should be transported back to a federal detention center. However, Walker was reluctant to comply with instructions from authorities and struck a deputy U.S. marshal (DUSM) in the mouth with a closed fist.
A struggle ensued on the ground, and authorities restrained Walker after two taser deployments. Law enforcement then took Walker to a federal detention center and refused medical attention.
The injured DUSM arrived at the emergency room where he received treatment for a laceration on his lip which required 12 stitches. As a result of the assault, he also sustained two chipped teeth.
“The U.S. Marshals Service is the oldest federal law enforcement agency, and for over 200 years they have performed some of law enforcement’s most dangerous work,” said Hamdani. “While Walker may have not known that long history, he should have known that striking a DUSM with a closed fist comes with severe consequences and would not go unnoticed. We noticed when we brought this case against Walker and so did 12 of his fellow citizens in handing down today’s guilty verdict.”
The defense attempted to convince the jury Walker did not cause the injury. They did not believe those claims and found him guilty as charged.
U.S. District Judge George C. Hanks presided over the trial and set sentencing for Oct. 31. At that time, Walker faces up to 20 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
The FBI conducted the investigation. Assistant U.S. Attorneys Carrie Wirsing and Anna Swanson are prosecuting the case.
Jackson Man Sentenced to 12 Years in Federal Prison for Selling FentanylRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a man who sold fentanyl to a federal informant to 12 years in prison.
Rodney G. Harris, 45, of Jackson, Missouri, pleaded guilty to distribution of fentanyl and admitted that he sold fentanyl to an individual in Cape Girardeau County twice in 2022. Unbeknownst to Harris at the time, the individual purchasing the fentanyl was working as an informant for law enforcement officials. According to court documents, Harris has multiple felony convictions, including several convictions for methamphetamine-trafficking offenses. At the time he sold the fentanyl, Harris was on parole supervision through the State of Missouri stemming from a 2013 conviction for distributing methamphetamine. After serving the 12-year sentence, Harris will be placed on a 3-year term of supervised release.
This case was investigated by the Cape Girardeau County Sheriff’s Office, the Southeast Missouri Drug Task Force and the Drug Enforcement Administration . Assistant United States Attorney Jack Koester handled the prosecution for the Government.
Hot Springs Woman Sentenced to More Than 15 Years in Federal Prison for Drug Trafficking OffenseRead the Press Release
HOT SPRINGS – A Hot Springs woman was sentenced yesterday to 188 months in prison followed by five years of supervised release on one count of Possession with Intent to Distribute More Than Fifty (50) Grams of Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs.
According to court documents, Teri Lee Patton, age 41, was identified by law enforcement to be distributing methamphetamine in the Hot Springs, Arkansas area.
Between the months of February of 2023 and March of 2023, investigators were able to conduct multiple controlled purchases of methamphetamine from Patton.
On March 15, 2023, a search was conducted at Patton’s residence, resulting in investigators locating and seizing approximately 448.54 grams of pure methamphetamine. The methamphetamine seized during the search warrant and from the controlled purchases was subsequently forwarded to the Drug Enforcement Administration Laboratory for confirmatory testing and determined to be a total of 523.27 grams of pure methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Drug Enforcement Administration and Hot Springs Police Department investigated the case.
Assistant U.S. Attorney Bryan Achorn prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov.
Hays County man sentenced to Life in federal prison for sexually exploiting children onlineRead the Press Release
PLANO, Texas – A San Marcos man has been sentenced to Life in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Christopher Scott Little, 48, pleaded guilty to coercion and enticement of minors and was sentenced to Life in federal prison by U.S. District Judge Sean D. Jordan on August 19, 2024.
According to information presented in court, in the summer of 2021, a child living in North Texas reported being extorted by individuals online. The Texas Rangers and FBI began investigating and discovered that Little had been targeting the child in North Texas from his residence in San Marcos. At the time of his arrest, Little was found to be communicating with hundreds of individuals on social media applications, most of whom appeared to be minors. In each conversation, Little used the same strategy – identifying himself as a young girl named “Amber,” who was deaf and mute, and thus unable to engage in videochatting. Amber would then coerce and entice the children into taking pictures of their nude bodies and recording videos of themselves engaged in sexually explicit conduct. Amber also introduced the children to her cousin, “Brandon,” also actually Little, and encouraged the children to sexually submit to Brandon in order to please Amber. If the children refused to comply, Amber and Brandon threatened them with harm, including threatening to kill the children and their families. To date, 10 children have been identified as Little’s victims. Little has been convicted of multiple offenses against children, stretching back almost 20 years.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the FBI and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Marisa Miller.
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Hagerstown Woman Sentenced to Twenty Years in Federal Prison for the Sexual Exploitation of MinorsRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar today sentenced Ashley Marie Tibbs, age 34, of Hagerstown, Maryland, to 20 years in federal prison, followed by lifetime supervised release, for sexual exploitation of a child. Judge Bredar also ordered that, upon her release from prison, Tibbs will be required to register as a sex offender in the places where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Michael S. McCarthy of Homeland Security Investigations (HSI) Baltimore; Chief Paul Joey Kifer, Chief of the Hagerstown Police Department; and Frederick County State’s Attorney J. Charles Smith, III.
According to Tibbs’ guilty plea and other court documents, Tibbs sexually abused two minor victims, who were then between the ages of 2 and 5. On each occasion, Tibbs sexually abused the victims, produced videos of the abuse, and sent the videos to co-defendant John Balch in exchange for money. Balch paid Tibbs $38,325 via Cash App.
Balch was previously sentenced to 60 years in federal prison for his exploitation of six minors. Co-defendants Jane Campbell and Amber Ricketts were also sentenced to more than 17 years and 10 years in federal prison, respectively, for distribution of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended HSI, the Hagerstown Police Department, and the Frederick County State’s Attorney’s Office for their work in this investigation. U.S. Attorney Barron also recognized the U.S. Attorney’s Offices for the Northern District of West Virginia and the Middle District of Florida, and the FBI’s Pittsburgh Field Office for their assistance. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Joyce King, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Gary Man Convicted of Drug Conspiracy and Using a Firearm to Commit MurderRead the Press Release
HAMMOND- Devonte Hodge, 32 years old, of Gary, Indiana, was found guilty of conspiring to distribute and possess with intent to distribute controlled substances (cocaine and 100 grams of heroin) and using a firearm to commit murder following a 6-day jury trial presided over by United States District Court Judge Philip P. Simon, announced United States Attorney Clifford D. Johnson.
Hodge is scheduled for sentencing December 5, 2024. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This case was investigated by the FBI/GRIT Task Force and the ATF/HIDTA Task Force with the assistance of the Hobart Police Department, the Indiana State Police, the Lake County Sheriff’s Department, the Gary Police Department, the Kokomo Police Department, and the Lake County Prosecutor’s Office. The case is being handled by Assistant U.S. Attorneys David J. Nozick and Joel Mathur.
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.
Former Sutter County Church Administrator Sentenced to 5 Years in Prison for Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Chanell Easton, 38, of Oklahoma City, Oklahoma, was sentenced today by U.S. District Judge John A. Mendez to five years and one month in prison for a multi‑year embezzlement scheme, U.S. Attorney Phillip A. Talbert announced.
In October 2023, Easton pleaded guilty to 22 counts of wire fraud, and on March 5, 2024, and following a bench trial, she was found guilty of on two counts of aggravated identity theft.
According to court documents and evidence presented at trial, from 2013 to 2018, Easton worked as the church administrator at a church in Yuba City. During her employment, Easton stole over $360,000 from the church, including from its food pantry and youth ministry, during a years-long embezzlement scheme. Easton used credit cards associated with the church to make personal purchases — at a hair salon, retail stores, online retailers, a vacation rental service, and to buy VIP concert tickets — and then paid off the resulting balance with the church’s money. One of the credit cards Easton used during her scheme belonged to the church’s youth minister, and Easton used his identity to make thousands of dollars in unauthorized personal purchases on Zappos.com. Easton’s use of the youth minister’s identity allowed her to obscure her embezzlement and to shift suspicion away from herself, thereby allowing her fraudulent scheme to continue.
Easton also transferred money directly from the church’s bank accounts to her own personal account, paid down the balance of her own personal credit card, and paid her cellphone provider for her personal bills and for new phones. Easton also stole money from the church by writing checks to others for personal expenses and by writing checks to herself, on which she forged the signatures of the church’s treasurer or the head volunteer of the church’s food pantry.
A hearing to determine restitution was set for Nov. 19, 2024.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Elliot Wong prosecuted the case.
Former Mail Carrier Convicted of Receiving Bribes, Fraud Conspiracy and Drug ConspiracyRead the Press Release
CAMDEN, N.J. – A former U.S. Postal Service (USPS) mail carrier has been convicted of bribery, fraud, and conspiracy charges, U.S. Attorney Philip R. Sellinger announced today.
Emerson Pavilus, 49, of Union, New Jersey, was convicted on Aug. 15, 2024, on all three counts of an indictment charging him with receiving bribes as a public official, conspiring to defraud the United States, and conspiring to possess with intent to distribute controlled substances. The jury returned the verdict following a trial before U.S. Circuit Court Judge Stephanos Bibas, sitting by designation in the U.S. District Court for the District of New Jersey.
According to documents filed in this case and the evidence presented at trial:
Pavilus was a mail carrier at the post office in Flanders, New Jersey. From at least 2015 to 2020, Pavilus received cash payments in exchange for helping individuals intercept packages containing illegal narcotics and other illicit materials. Pavilus provided his conspirators with addresses for vacant houses along his mail route to which they could ship illegal packages. Pavilus then intercepted those packages from the mail stream and personally delivered them to his conspirators in exchange for bribe payments at places other than the addresses listed on the packages.
The bribery charge is punishable by a maximum potential penalty of 15 years in prison and a maximum fine of $250,000 or twice the gross gain from the offense, or three times the monetary equivalent of the bribe amount, whichever is greatest. The conspiracy to defraud the United States charge carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain from the offense, whichever is greater. The narcotics offense carries a maximum potential penalty of five years in prison, and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; the USPS Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi; and the U.S. Postal Inspection Service, in Newark, under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the guilty verdict. He also thanked the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Jordann R. Conaboy and Mark J. McCarren.
Former Blackberry Volunteer Fire Chief Pleads Guilty to COVID-19 FraudRead the Press Release
PIKEVILLE, Ky.— The former Fire Chief of the Blackberry Volunteer Fire Department (BVFD) in Pike County, Christopher Chapman, 35, pleaded guilty, on Tuesday, before U.S. District Judge Karen Caldwell to theft of public funds.
In 2021, as part of the American Rescue Plan Act, to support communities and local governments that were struggling due to the COVID-19 pandemic, the federal government distributed emergency funding to local governments to maintain vital local services. In Spring 2022, Pike County local government authorized the distribution of $50,000 of these funds through grants that were allocated for the purchase of turnout gear for fire and rescue, along with equipment and building maintenance. Chapman applied for these grants on behalf of BVFD, and the local government awarded the full amount of the grants.
According to his plea agreement, on April 11, 2022, Chapman created a company named Rural Public Safety Equipment, LLC. (RPSE), as the sole organizer and member, and registered it with the West Virginia Secretary of State. Chapman then informed members of the BVFD that he could obtain fire safety equipment at cost from a safety equipment company, and he failed to disclose that he was the owner of the company. The fire department pre-paid and ordered $76,854.50 worth of fire and safety equipment from RPSE. Instead of using the prepayments from BVFD to fulfill the orders, Chapman never fulfilled any fire and safety equipment orders, spent all the money on his own personal use, and withdrew $61,500 in cash from the RPSE bank account.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Bruce Roberts, Interim Executive Director, Kentucky Fire Commission, jointly announced the guilty plea.
The investigation was conducted by the FBI and the Kentucky Fire Commission. Assistant U.S. Attorney Brittany Dunn-Pirio is prosecuting the matter on behalf of the United States.
Chapman is scheduled to appear for sentencing on November 25, 2024. He faces a maximum of 10 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Five Individuals Sentenced for Possession of Glock Switches and Other Gun CrimesRead the Press Release
TUSCALOOSA, Ala. - Five individuals have been sentenced for possession of “Glock switches” and other gun crimes in the City of Tuscaloosa and surrounding areas, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
Donterio Nickson, 23, of Tuscaloosa, was sentenced to 57 months in prison. In April, Nickson pleaded guilty to possession of a machine gun conversion device—commonly referred to as a “Glock switch.” Assistant U.S. Attorney Benjamin A. Keown, Sr. prosecuted the case.
Jahleo Pugh, 20, of Tuscaloosa, was sentenced to 20 months in prison. In April, Pugh pleaded guilty to possession of a machine gun. Assistant U.S. Attorney Darius C. Greene prosecuted the case.
Kemontay Smith, 19, of Tuscaloosa, was sentenced to 24 months in prison. In April, Smith pleaded guilty to possession of a machine gun. Assistant U.S. Attorney William R. McComb prosecuted the case.
Markeias Thompson, 19, of Tuscaloosa, was sentenced to 24 months in prison. In April, Thompson pleaded guilty to possession of a machine gun. Assistant U.S. Attorney William R. McComb prosecuted the case.
Keyonte Howard, 21, of Tuscaloosa, received 36 months’ probation following his conviction in May for providing false information in connection with the purchase of a firearm. Assistant U.S. Attorney Darius C. Greene prosecuted the case.
These sentences are the result of collaborative efforts by the ATF, Tuscaloosa Police Department, Tuscaloosa County Sheriff’s Office, and Tuscaloosa District Attorney’s Office to identify and focus enforcement on individuals who illegally possess “Glock switches” and firearms in the Northern District of Alabama.
The cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Fentanyl Importer/Supplier and Sex Trafficker Sentenced to Life in PrisonRead the Press Release
Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Joseph Marion (41, St. Petersburg) to life in federal prison for conspiracy to distribute fentanyl, heroin, methamphetamine, and crack cocaine; distributing fentanyl; distributing a mixture of fentanyl and heroin that resulted in serious bodily injury; and possessing fentanyl, heroin, methamphetamine, and crack cocaine with the intent to distribute it. As part of his sentence, the court also ordered Marion to forfeit the $13,190 that was recovered from his pocket at the time of his arrest, which represented proceeds from his criminal conduct.
According to testimony and evidence presented at trial and sentencing, Marion imported fentanyl and fentanyl analogues from China via the U.S. mail. Marion blended and packaged the fentanyl himself and then sold fentanyl, heroin, methamphetamine, and crack cocaine to multiple street dealers, each of whom further distributed those drugs to users. During the trial, one of those street dealers testified that she bought 40-100 bags of fentanyl from Marion each day, every day, for several years. Marion sold between 7.1 and 17.8 kilograms of fentanyl, enough to kill over 70,000 people, to just this one street dealer.
In November 2019, a woman who was with Marion in his apartment snorted Marion’s fentanyl, thinking it was heroin, and nearly died. Paramedics arrived at the apartment and saved her life, though she was hospitalized for days afterward.
In addition to importing and selling drugs, Marion also trafficked women for sex. He often recruited women who were addicted to his drugs and then advertised and “managed” them as prostitutes.
This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, the United States Secret Service, the Pinellas County Sheriff’s Office, the St. Petersburg Police Department, and the Clearwater Police Department. It was prosecuted by Assistant United States Attorney Michael M. Gordon.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. 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 www.justice.gov/OCDETF.
Federal Jury Convicts Man of Possessing Multiple Firearms While Trafficking Fentanyl in Chicago SuburbsRead the Press Release
CHICAGO — A federal jury has convicted a man on drug and firearm charges for possessing multiple guns while trafficking fentanyl and other narcotics in the Chicago suburbs.
The jury on Friday found OMARI ANDREWS, JR. guilty of possessing an AR-15 style firearm and three handguns while trafficking fentanyl, heroin, cocaine, crack cocaine, and marijuana in Mt. Prospect, Ill., in 2023. The jury returned its verdicts after a week-long trial in U.S. District Court in Chicago. Prior to trial, Andrews pleaded guilty to distributing fentanyl and heroin in Westmont, Ill., Villa Park, Ill., Des Plaines, Ill., and Hillside, Ill., in 2022 and 2023.
Andrews, 24, of Mt. Prospect, Ill., has been detained in federal custody since his arrest in 2023. U.S. District Judge Edmond E. Chang set sentencing for Dec. 18, 2024. Andrews faces a maximum sentence of life in federal prison.
The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The Skokie, Ill. and Evanston, Ill. Police Departments provided valuable assistance. The government is represented by Assistant U.S. Attorneys Alejandro G. Ortega and Sean Hennessy.
Holding firearm and drug offenders accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Federal Inmate Indicted for Possession with the Intent to Distribute MethamphetamineRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Jessie Wooden (36, Miami) on a two-count indictment charging him with possession with the intent to distribute 50 grams or more of methamphetamine and possession of contraband by a federal prisoner. If convicted, Wooden faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A federal grand jury had returned the indictment on Wooden on May 28, 2024.
According to the indictment, on March 10, 2024, Wooden was a federal inmate at the Coleman Federal Correctional Complex. He possessed at least 50 grams of methamphetamine with the intent to distribute it. He also was in possession of marijuana, tetrahydrocannabinol (a Schedule I controlled substance), and buprenorphine (a Schedule III controlled substance).
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being prosecuted as part of a United States Department of Justice task force aimed at rooting out contraband and misconduct in the Federal Bureau of Prisons. The task force was led by the Federal Bureau of Prisons and the DOJ Office of the Inspector General, with support from the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Attorney’s Office for the Middle District of Florida. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Federal Grand Jury in Louisville Returns 5 Indictments Charging 37 Defendants with Drug Trafficking and Firearms OffensesRead the Press Release
Charges Include Methamphetamine, Cocaine, and Fentanyl
Louisville, KY – On August 6, 2024, a federal grand jury in Louisville charged a total of 37 defendants from across Kentucky and California in five separate indictments involving methamphetamine, fentanyl, and cocaine trafficking offenses and firearms offenses. The indictments were the result of a lengthy investigation conducted as part of the Organized Crime and Drug and Enforcement Task Force (OCDETF).
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Sheila G. Lyons of the DEA Chicago Field Division and Assistant Special Agent in Charge Michael Gannon of the DEA Indianapolis District Office, Special Agent in Charge Karen Wingerd of the Cincinnati Field Office, IRS Criminal Investigation, and Chief Art Ealum of the Owensboro Police Department made the announcement.
According to the first indictment, 14 defendants are all charged with one count of conspiracy to possess with the intent to distribute controlled substances. Beginning as early as March 2023 and continuing through August 5, 2024, the defendants conspired to possess with the intent to distribute 50 grams or more of methamphetamine and 5 kilograms or more of cocaine. The defendants charged in the first indictment are:
- D’Andre Williams, 40, of Adelanto, California,
- Djuan Truss, 42, of Louisville,
- Rayshawn Spearman Sr., 39, of Louisville,
- Elmondo Elliott, 55, of Los Angeles, California,
- Desmond Knox, 50, of Menifree, California,
- Rayshawn Spearman Jr., 26, of Louisville,
- Brandan Arnold, 42, of Louisville,
- Antonio Arnold, 44, of Louisville,
- Dwayne Evans, 35, of Louisville,
- Melanie Surrell, 45, of Louisville,
- Antionio Evans, 42, of Louisville,
- Davonte Hoskins, 28, of Louisville,
- Gardner Webb, 31, of Louisville, and
- Tanaja Lee, 23, of Louisville.
Williams, Truss, Spearman Sr., and Elliott are also each charged with possession with the intent to distribute 500 grams or more of a methamphetamine mixture and possession with the intent to distribute 5 kilograms or more of cocaine. According to a federal criminal complaint filed in relation to these charges on July 7, 2024, members of the DEA Evansville Resident Office and Louisville Division Office received information from a confidential source regarding the possible distribution of large quantities of crystal methamphetamine and cocaine. Through follow up investigation, members of the surveillance team observed a transaction between Williams and Truss at a Love’s gas station in Shepherdsville, Kentucky. According to the complaint affidavit, members of the Kentucky State Police made contact with Williams and Truss and conducted further investigation. Law enforcement ultimately seized cardboard boxes containing approximately 252.9 pounds of methamphetamine and 12 kilograms of cocaine.
According to the second indictment, 8 defendants are all charged with one count of conspiracy to possess with the intent to distribute methamphetamine. Beginning as early as March 2023 and continuing through August 5, 2024, the defendants conspired to possess with the intent to distribute 50 grams or more of methamphetamine. The defendants charged in the second indictment are:
- Richard Boarman, 48, of Owensboro, Kentucky,
- Joshua Estap, 40, of Owensboro, Kentucky,
- Justin Riley, 41, of Owensboro, Kentucky,
- Bobby Douglas, 56, of Lexington, Kentucky,
- Jamie Voyles, 44, of Owensboro, Kentucky,
- Gregory Nuckols, 61, of Owensboro, Kentucky,
- Zachariah Nance, 44, of Utica, Kentucky, and
- Hope Warsinsky, 39, of Owensboro, Kentucky.
According to the third indictment, 3 defendants are all charged with one count of conspiracy to possess with the intent to distribute methamphetamine. Beginning as early as March 2023 and continuing through August 5, 2024, the defendants conspired to possess with the intent to distribute 50 grams or more of methamphetamine. The defendants charged in the third indictment are:
- Cameron Jackson, 24, of Owensboro, Kentucky,
- Damone McGuire, 29, of Owensboro, Kentucky, and
- Tyler Vinson, 32, of Owensboro, Kentucky.
Jackson is also with one count of possession with intent to distribute 50 grams or more of methamphetamine, 40 grams or more of fentanyl, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of drug trafficking. According to the indictment, on May 1, 2024, Jackson possessed a Trail Blazer Arms .22 caliber pistol, a Taurus 9-millimeter pistol, a Zastava Arms .762 caliber pistol, and ammunition. Jackson was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On December 16, 2019, in Daviess Circuit Court, Daviess County, Kentucky, Jackson was convicted of manslaughter in the second degree, receiving a stolen firearm, tampering with physical evidence, and possession of a controlled substance in the first degree, first offense (methamphetamine).
According to the fourth indictment, 8 defendants are all charged with one count of conspiracy to possess with intent to distribute methamphetamine. Beginning as early as March 2023 and continuing through August 5, 2024, the defendants conspired to possess with the intent to distribute 50 grams or more of methamphetamine. The defendants charged in the fourth indictment are:
- Jason Salyer, 50, of Louisville,
- Julia Parrish, 53, of Owensboro, Kentucky,
- Jonathan Hawkins, 43, of Owensboro, Kentucky,
- Jeramey Hawkins, 46, of Owensboro, Kentucky,
- Timothy Roach, 37, of Owensboro, Kentucky,
- Charles Nelson, 41, of Utica, Kentucky, and
- Joe Turner, 46, of Owensboro, Kentucky.
According to the fifth indictment, 4 defendants are all charged with one count of conspiracy to possess with the intent to distribute methamphetamine. Beginning as early as May 2023 and continuing through August 5, 2024, the defendants conspired to possess with the intent to distribute 50 grams or more of methamphetamine. The defendants charged in the fifth indictment are:
- Diana Miranda, 38, of Owensboro, Kentucky,
- Deandre Williams, 27, of Louisville,
- Timothy Roberts, 46, of Owensboro, Kentucky, and
- Shalonna Slaughters, 57, of Owensboro, Kentucky.
Thirty-one of the 37 defendants have been arrested or are otherwise in custody. Twenty-six defendants have made their initial court appearances before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky or the Central District of California. Six defendants, Jackson, Williams, Truss, Jeramey Hawkins, Hoskins, and Bermudez are currently in state custody and will make an initial appearance before a U.S. Magistrate Judge at a future date.
The following defendants have not yet been arrested: Brandan Arnold, Webb, Lee, and Williams.
If convicted, each of the defendants except Jackson face a minimum sentence of 10 years in prison. Jackson faces a minimum sentence of 15 years in prison. All the defendants face a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
The cases are being investigated by the DEA, IRS-CI, and the Owensboro Police Department, with assistance from the FBI, the Kentucky State Police, the Indiana State Police, the Louisville Metro Police Department, the Evansville Police Department, the DEA Evansville Resident Office River City Drug Task Force – Indiana HIDTA, and the Vanderburgh County Sheriff’s Office.
Assistant U.S. Attorneys Frank Dahl and Josh Porter are prosecuting the cases.
This effort 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 www.justice.gov/OCDETF.
An 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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Federal Firearms Licensee Pleads Guilty to Firearm Trafficking and Straw Purchasing ConspiracyRead the Press Release
BOSTON – A Federal Firearms Licensee (FFL) pleaded guilty yesterday in federal court in Boston to conspiring to illegally traffic and straw purchase firearms.
Cory Daigle, 29, of Revere, pleaded guilty to one count of trafficking in firearms; one count of illegal possession of a machine gun; one count of receipt or possession of unregistered firearm; one count of conspiracy to make false statements in records required to be kept by an FFL; and one count of aiding and abetting making false statements in records required to be kept by an FFL. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Nov. 20, 2024. Daigle was charged by criminal complaint in January 2023 along with Gustavo Rodriguez and Shakim Grant. He was subsequently indicted by a federal grand jury in March 2023.
Daigle was a licensed firearms dealer doing business as Steelworks Defense Solutions. From in or about August 2022 through November 2022, Daigle and Rodriguez conspired to create false entries in records required to be maintained by Daigle, an FFL, in order to conceal the illegal sale of multiple firearms via Grant to Rodriguez, who could not lawfully purchase or possess firearms. Specifically, Daigle and Grant made and signed false representations on required forms to disguise Rodriguez’s identity as the true firearm purchaser. Rodriguez is prohibited from possessing a firearm. Additionally, Daigle attempted to coverup the illegal straw purchase by providing false information to law enforcement. One of the guns sold by Daigle was used two weeks later in a shooting outside of Rodriguez’s residence. According to court documents, the same gun, was subsequently recovered from a juvenile in New Bedford by police. In January 2023, multiple guns were seized during a search of Daigle’s residence. They were found in numerous safes, as well as on furniture, in bedrooms, in drawers and in open areas throughout the residence.
Grant pleaded guilty in May 2023 and is scheduled to be sentenced on Oct. 18, 2024. Rodriguez pleaded guilty on Nov. 13, 2023 and is awaiting sentencing.
The charge of conspiracy to make false statements in records required to be kept by an FFL provides for a sentence of up to five years in prison, one year of supervised release and a fine of $250,000. The charge of aiding and abetting making false statements in records required to be kept by an FFL provides for a sentence of up to five years in prison, one year of supervised release and a fine of $250,000. The charge of trafficking in firearms provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of $250,000. The charge of illegal possession of a machine gun provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of receipt or possession of an unregistered firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance in the investigation was provided by the Revere Police Department. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
Drug Trafficker Who Hid Fentanyl Pills in Kid’s Stuffed Animal Sentenced to 8+ YearsRead the Press Release
A Dallas drug trafficker who stashed fentanyl pills inside his child’s stuffed bear was sentenced today to more than eight years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jorge Miguel Arteaga Medina, 23, was charged via criminal complaint in April 2023 and indicted later that month. He pleaded guilty in February to possession of a controlled substance with intent to distribute and was sentenced Tuesday by U.S. District Judge Ada Brown to 97 months confinement.
According to court documents, Mr. Arteaga Medina acquired fentanyl pills from a source of supply in Mexico known to agents as “22” and sold them to customers in the Dallas area.
In February 2023, a confidential source bought 171 grams of fentanyl pills from Mr. Arteaga Medina. During the meeting, which was recorded, the defendant advised the source to contact him if he/she needed more fentanyl pills in the future.
In April 2023, the confidential source again reached out to Mr. Arteaga Medina and asked to purchase more pills. The defendant said he had roughly 3,000 pills in his possession but would need to contact his superior in Mexico – believed to be “22” – if the source needed more than that.
Agents then approached Mr. Arteaga Medina and advised him of their investigation. He readily admitted to having a large quantity of pills in his apartment as well as a Smith & Wesson handgun inside the satchel strapped to his chest.
He brought the agents to his apartment, where his wife and small child lived, and showed them the pills. Some were in this bedroom closet, and the remainder were concealed in his child’s stuffed bear.
At Tuesday’s sentencing hearing, prosecutors introduced into evidence photographs of the pills inside the stuffed animal as well as posters Mr. Arteaga Medina kept in his home glorifying “Santa Muerte” (“Our Lady of Holy Death”), the skeletal so-called patron saint of drug dealers.
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation. Assistant U.S. Attorney George Leal prosecuted the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Additional photographs introduced into evidence at sentencing available upon request.
Devon Physician Agrees to Pay $8,000 to Resolve Alleged Controlled Substances Act ViolationsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Daniel Rubino, M.D., has agreed to pay $8,000 to resolve allegations that he violated the Controlled Substances Act (CSA) by dispensing and distributing Schedule III and Schedule IV controlled substances without an effective prescription issued for a legitimate medical purpose. The United States’ investigation involved Dr. Rubino’s self-prescribing practices at his medical office, Daniel T. Rubino, P.C., located at 176 E. Conestoga, Devon, Pa., 19333.
As part of the settlement, Rubino has entered into a two-year Memorandum of Agreement (MOA) with the Drug Enforcement Administration (DEA), which includes additional responsibilities regarding the handling of controlled substances. The MOA imposes compliance obligations significantly more stringent than those in the applicable laws and regulations.
Between March 2020 and December 2022, DEA investigators discovered that Rubino was self-prescribing Schedule III and IV medications while he treated patients at his medical office, specifically buprenorphine and eszopiclone. During this time period, DEA identified that Rubino had written approximately 44 prescriptions to himself, and that he had done so without the oversight of a prescribing physician and with no initial assessments, reevaluations, or routine monthly visits with a full assessment of his chronic pain and urinalysis. Accordingly, Rubino repeatedly dispensed or distributed Schedule III and IV controlled substances to himself without an effective prescription in violation of 21 U.S.C. § 829(b) and 21 C.F.R. § 1306.04.
Congress enacted the CSA to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications, and requires individuals and entities registered with the DEA to maintain complete and accurate records of all controlled substances and security systems so that controlled substances are no lost, stolen, or inappropriately dispensed.
“Physicians who dispense and distribute Schedule III and IV controlled substances to themselves are engaging in a form of diversion,” said U.S. Attorney Romero. “Physicians and pharmacists have a responsibility to ensure that all controlled substances are tracked through a distribution chain and are prescribed in the usual course of professional practice. Our office is committed to ensuring total compliance with the Controlled Substances Act and we will vigorously enforce violations whenever we find them. Self-prescribing by physicians is no exception.”
“The goal of DEA’s closed system of distribution is to create accountability for controlled substances – this includes accountability for physicians who self-prescribe controlled substances,” said Thomas Hodnett, Special Agent in Charge of DEA’s Philadelphia Field Division. “By self-prescribing numerous prescriptions for controlled substances over the course of more than two years, Rubino violated this closed system and created an environment where controlled substances could not be tracked through a distribution chain. As a pain management physician himself, Rubino should have known better.”
The government’s pursuit of this matter illustrates its emphasis on combating diversion of controlled substances. The dispensing and distributing requirements applicable to DEA registrants, including physicians, are the tools by which the DEA deters drug diversion.
The investigation was conducted by the DEA’s Philadelphia Field Division, and the investigation and settlement were handled by Assistant U.S. Attorneys Deborah W. Frey and Anthony Scicchitano.
Deltona Man Pleads Guilty to Transferring Unregistered FirearmsRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that James Edward Snider, Jr., (25, Deltona) has pleaded guilty to transferring unregistered firearms. Snider faces a maximum penalty of 10 years in federal prison, and sentencing is set for December 11, 2024.
According to court documents, Snider transferred one or more machinegun conversion devices that were not lawfully registered. A search of Snider’s residence located additional machinegun conversion devices and firearm silencers.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Adam J. Nate.
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.
Couple Admits COVID-19 Loan Fraud SchemeRead the Press Release
TRENTON N.J. – A New Jersey couple admitted fraudulently obtaining approximately $790,000 in federal Economic Injury Disaster Loans (EIDL) payments, U.S. Attorney Philip R. Sellinger announced today.
Diana Valteri, 42, and Edmond Haxhillari, 43, of Sparta, New Jersey, and Cypress, Texas, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court on Aug. 19, 2024, to informations charging them with wire fraud and money laundering.
According to documents filed in this case and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Valteri and Haxhillari are a married couple who from June 2020 through August 2020 participated in a fraudulent scheme to receive $790,000 in COVID-19 emergency relief loans and cash advances meant for distressed small businesses under the EIDL program. Valteri and Haxhillari submitted fraudulent loan applications on behalf of several businesses that purported to have employees and revenue, but were actually shell companies with no business operations. After receiving the EIDL funds based on their fraud, Valteri and Haxhillari diverted the proceeds for their own personal gain.
The wire fraud charge carries a maximum penalty of 20 years in prison, and the money laundering charge carries a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000, or twice the gross gain to the defendants or gross loss to the victim, whichever is greatest. Sentencing is scheduled for Jan. 22, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Bradley Parker, and special agents from the Small Business Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite, Eastern Regional Office, with the investigation leading to the charges.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano and Aja Espinosa of the Economic Crimes Unit in Newark.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
haxhillari.information.pdf valteri.information.pdfConvicted Felon Is Sentenced to Prison for Reoffending While on Federal Supervised ReleaseRead the Press Release
CHARLOTTE, N.C. – A previously convicted felon on federal supervised release was sentenced to prison today on drug and gun charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Charles Lee Farmer, 50, of Charlotte, was ordered to serve 46 months in prison followed by three years on supervised release, after pleading guilty to possession with intent to distribute cocaine and cocaine base, and possession of multiple firearms by a convicted felon. Additionally, Farmer was ordered to serve a consecutive six-month prison term for violating conditions of his supervised release, for a total sentence of 52 months in prison.
According to court documents and court proceedings, Farmer was previously convicted in the Western District of North Carolina for a firearms offense. After serving an active prison term, Farmer was placed on court-ordered supervised release under the U.S. Probation Office. On November 20, 2021, federal probation officers conducted a warrantless search of Farmer’s residence, after they received information that Farmer was dealing narcotics. During the search, probation officers located cocaine and cocaine base, digital scales, and other drug paraphernalia, and seized multiple firearms and multiple rounds of ammunition.
Farmer remains in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Probation Office in the Western District of North Carolina for their investigation of the case.
Assistant U.S. Attorney Regina Pack of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
City of Los Angeles to Pay $20.8 Million for Discharging More Than 12 Million Gallons of Untreated Wastewater into Santa Monica BayRead the Press Release
LOS ANGELES – The City of Los Angeles has agreed to pay a total of $20.8 million to fix issues at the Hyperion Water Reclamation Plant and to complete related environmental projects in connection with the discharge of millions of gallons of wastewater into Santa Monica Bay in 2021.
Hyperion, the City’s oldest and largest wastewater treatment facility, collects, treats, and disposes of wastewater for Los Angeles and several other municipalities, including Beverly Hills, Culver City, El Segundo, Santa Monica, San Fernando, and West Hollywood. Hyperion’s service area includes more than 4 million people.
Hyperion treats an average of 260 million gallons of wastewater per day, of which 225 million gallons are discharged through its 5-Mile Outfall to the Santa Monica Bay and 35 million gallons are conveyed to a water recycling facility for advanced treatment and reuse. Treatment of wastewater begins in a portion of the facility called the Headworks area, which involves the use of bar screens to remove large objects such as branches, plastics, and rags, from the entering wastewater.
“We in Southern California love our beaches and people in our community deserve clean waters free of contamination when they visit the beach,” said United States Attorney Martin Estrada. “This agreement requires the City to take concrete steps and commit substantial funds to improving the Hyperion facility and thereby prevent a disaster like this from reoccurring. Our office is committed to protecting our environment and we will continue to use our federal authority to ensure the safe use of our natural resources for future generations.”
In July 2021, the Headworks became inundated with debris, causing wastewater to flood that area. Hyperion’s relief system was triggered and approximately 12.5 million gallons of untreated wastewater was discharged through the Facility’s 1-Mile Outfall into the Santa Monica Bay. Offshore water quality testing and monitoring subsequently conducted around the 5-Mile Outfall showed exceedances of applicable water quality standards for total coliform bacteria, E. coli, and Enterococcus.
To resolve the U.S. Attorney’s criminal investigation, the City has agreed to spend no less than $20 million to perform and complete various projects at Hyperion, which the City agreed to perform under an Administrative Order On Consent previously issued by the EPA. That work includes improvements on Hyperion’s Distributed Control System, such as integrating bar screens, level sensors and other ancillary equipment, integrating the alarm or status screens software to remove the antiquated alarms, training Hyperion operators responsible for control room operations on the updates, and constructing high-level channel overflow manage improvements.
In addition, the City has agreed to continue and expand upon its water quality testing program in compliance with its permits and will add two additional water quality testing sites between Dockweiler Beach and King Harbor. The City will also complete its rapid bacteria testing study and seek accreditation from the U.S. Environmental Protection Agency so it can test for bacterial levels in ocean water on a more rapid basis. The City will also retain a qualified third-party auditor to conduct annual audits of Hyperion’s operations to determine whether it is in compliance with the work described above and the Clean Water Act
Finally, the City has agreed to perform a one-year community outreach service project in coordination with the Los Angeles Sanitation and Environmental Department and a nonprofit. That work will include meetings with local government officials and community members, developing an improved emergency communications plan, and coordinating educational outreach with residents and schools. The cost of the additional monitoring, rapid bacteria testing study, and the community outreach project is estimated to be no less than $800,000.
The United States Environmental Protection Agency Criminal Investigation Division is investigating this matter.
Assistant United States Attorneys Dennis Mitchell and Mark Williams of the Environmental Crimes and Consumer Protection Section, as well as Assistant United States Attorney Mack Jenkins, Chief of the Criminal Division, are prosecuting this case.
Cincinnati man sentenced to more than 13 years in prison for sex trafficking missing teenRead the Press Release
CINCINNATI – A Cincinnati man was sentenced in federal court here today to 162 months in prison for sex trafficking a missing teen girl.
As part of his conviction, Payton Jamar Brown, 26, was ordered to pay nearly $58,000 in restitution to the minor victim and forfeit his home on Niagara Street in Cincinnati. Proceeds of the sale of his forfeited home will be paid to Brown’s victim as restitution.
According to court documents, from June until October 2022 and again in February 2023, Brown sex trafficked the teenaged girl.
Brown met the victim online and began a relationship with her. The victim began to reside with Brown, who created prostitution advertisements of her. Brown would transport the victim to hotels for prostitution dates that he had arranged. Brown arranged at least 40 prostitution dates in this timeframe and collected the proceeds from the victim.
In October 2022, Colerain police officers responded to Brown’s residence and recovered the victim, who was subsequently taken to a juvenile facility in another state.
In February 2023, the juvenile escaped the facility and messaged Brown on Instagram to pick her up. Brown drove interstate to pick up the victim and her friend and bring them to his residence. Brown again created a prostitution advertisement of the victim and arranged sexual encounters with other men for money.
Throughout his time with the victim, Brown would regularly engage in sex acts with the minor and record those acts with a cell phone. He would then sell the photos and videos to others online.
Brown was arrested by the FBI in February 2023. He pleaded guilty in October 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Colerain Township Police Chief Edwin C. Cordie III; and members of the Regional Electronics and Computer Investigations (RECI) task force announced the sentence imposed today by U.S. District Judge Douglas R. Cole. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Chowan County Jail Escapee Sentenced to Nine Years on Federal Firearms ChargesRead the Press Release
RALEIGH, N.C. – An Albemarle man, who escaped from a Chowan County Jail, was sentenced to 108 months in prison for possession of a firearm by a convicted felon after he was apprehended two days after his escape with a loaded .40 caliber firearm. On April 16, 2024, Russell Heath, age 48, pled guilty to the charge.
According to court documents and other information presented in court, Heath escaped from the Chowan County Jail in the evening hours of October 19, 2022. He escaped by placing a correctional officer in a headlock and holding a shank to his neck while threatening to kill him if another correctional officer did not place his cell phone in a trash can. After the officers complied with his orders, Heath locked them in a jail cell and fled after changing into street clothes. On October 21, 2022, Currituck County Sheriff’s Deputies responded to a citizen call in Moyock (approximately 50 miles away) regarding a suspicious man, later identified as Heath, who was seen on residential video cameras. Deputies encountered Heath walking in the area and attempted to apprehend him. Heath began backing away and then struggled with deputies. They fell into a ditch where Heath was ultimately tased as he was grabbing towards his waistband. After tasing Heath a second time, Deputies noticed a loaded .40 caliber firearm on the ground near Heath. Deputies were able to safely take Heath into custody at that point. Heath provided a false name and date of birth to deputies.
Heath has a lengthy criminal history that includes a 2009 conviction for second-degree kidnapping, and a 2023 conviction for three counts of breaking and entering. Heath has pled guilty to two counts of second-degree kidnapping and one count of felony escape from a local jail in connection with his escape in October 2022.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. Currituck County Sheriff’s Office and ATF investigated the case and Assistant U.S. Attorney Phil Aubart 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. 2:23-CR-6-BO-RN.
Cape Girardeau Postal Worker Sentenced to Prison for Stealing MailRead the Press Release
CAPE GIRARDEAU – A former U.S. Postal Service mail carrier who both stole and failed to deliver customers’ mail was sentenced Tuesday to 14 months in prison.
U.S. District Judge Matthew T. Schelp also ordered Robert Gafford, 34, to pay a $5,000 fine and restitution of $1,605.
Gafford of Jackson, Missouri, was convicted by a jury in U.S. District Court in Cape Girardeau in February of one count of delaying or destroying mail and one count of embezzlement of mail.
Gafford worked out of the Cape Girardeau Post Office annex and was responsible for delivering mail on a rural route in or near Scott City, Missouri. In late 2021, the postmaster received complaints from a couple on Gafford’s route that they were not receiving mail and packages, according to evidence and testimony presented at the trial. The couple have Informed Delivery, a Postal Service program that provides pictures of the mail that is scheduled to be delivered that day. The couple sent postal officials images of missing mail. There were days when their mail was not delivered and officials found it at the Post Office and days in which the mail could not be located, according to evidence and trial testimony. When confronted by supervisors and told he must deliver the mail, Gafford said that he did not like the location of the victims’ mailbox, according to court records. He was also issued a written warning.
Frustrated when their mail was still not being delivered, the couple mailed an Apple AirTag tracking device to themselves and traced it to Gafford’s home after it wasn’t delivered, the trial showed. A special agent with the U.S. Postal Service Office of Inspector General then sent a test piece of mail with a tracking device. Investigators watched as Gafford stopped at his personal vehicle before leaving post office property in his mail vehicle that day. They also independently tracked Gafford’s postal vehicle as he skipped the couple’s mailbox. They tracked the test piece to Gafford’s personal vehicle after he left for the day, then pulled him over and seized the test piece and the couple’s other undelivered mail from his SUV’s glove box, the trial showed.
Gafford’s refusal to deliver the victims’ mail and eventual theft of their mail lasted months, despite postal officials “extraordinary efforts to simply get Gafford to do his job,” Assistant U.S. Attorney Paul Hahn wrote in a sentencing memo. “The victims of Gafford’s months long failure to deliver their mail endured constant apprehension of not receiving their mail, including packages ordered from Amazon, a victim’s operator’s license from the Missouri Department of Revenue, and other mail.”
The memo says Gafford continued to steal mail after the jury’s verdict. In early 2024, the postmaster reported receiving complaints about missing mail from residents on Dalhousie Drive in Cape Girardeau, Missouri, according to the sentencing memo. The postmaster and the mail carrier for that route placed an AirTag in a package and monitored the package. On April 23, 2024, the package disappeared and the postmaster traced it to Gafford’s home, the memo says. A court-approved search on May 2, 2024, revealed the package, and two Arrow keys, which unlock U.S. Postal Service collection boxes, cluster boxes and other locks, the memo says.
The U.S. Postal Service Office of Inspector General investigated the case. Assistant U.S. Attorneys Paul Hahn and Christopher Shelton prosecuted the case.
Buffalo man arrested on gun and drug chargesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Raekwon Gordon, 25, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking activities, and being a felon in possession of a gun. The charges carry a maximum penalty of life in prison.
Assistant U.S. Attorney Stacey Jacovetti, who is handling the case, stated that according to the complaint, on April 5, 2024, Buffalo Police attempted to conduct a traffic stop of a vehicle traveling at a high rate of speed on Bailey Avenue. The vehicle did not comply and fled. Throughout the pursuit, the vehicle was driven in a reckless manner, passing vehicles and ignoring traffic lights, and at a high rate of speed. Officers managed to follow the vehicle until it parked in the driveway of Roslyn Street residence. Officers discovered a loaded firearm in the front yard of the house next door, which they believe was likely thrown from the front passenger side of the vehicle. A second loaded machine gun was recovered on the sidewalk down the street.
Gordon and two other individuals were taken into custody at the scene. Officers recovered 336 fentanyl pills from the vehicle and $5,526 in cash from Gordon. Subsequent investigation determined that Gordon’s DNA was present on the machinegun. In 2018 and 2022, Gordon was convicted of felony charges and is legally prohibited from possessing a firearm.
Gordon made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was held pending a detention hearing.
The complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan miller, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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