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Monday 1 July 2024
United States Obtains Consent Decree Against Gristedes Supermarkets for Violating Refrigerant Management RegulationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York announced today that the United States filed a civil lawsuit against GRISTEDE’S FOODS NY, INC. (“GRISTEDES”) alleging violations of the Clean Air Act and the Environmental Protection Agency’s (“EPA”) Recycling and Emissions Reduction Rule (“RER Rule”) due to GRISTEDES’ failure to comply with regulations designed to limit the emission of refrigerants from appliances at its store into the atmosphere. The United States and GRISTEDES simultaneously entered into a Consent Decree resolving that lawsuit. The Consent Decree requires GRISTEDES to pay a $400,000 civil penalty and to undertake millions of dollars of repairs to reduce its future emissions of refrigerants that are greenhouse gasses.
U.S. Attorney Damian Williams said: “Between 2019 and 2021, Gristedes systematically violated EPA refrigerant regulations, resulting in greenhouse gas emissions at a rate far higher than others in the industry. To give a sense of scale, Gristedes’ emissions had a global warming effect equal to driving a car 140,000,000 miles. As a result of our lawsuit, Gristedes is now required to reduce its emissions by over 70% from their 2020 levels to offset at least some of the damage it has caused, and it will face significant additional penalties under the Consent Decree if it fails to do so.”
The Clean Air Act and the RER Rule impose requirements on the owners and operators of commercial refrigeration appliances to prevent the emission of regulated refrigerants into the atmosphere. Many refrigerants (including those utilized in GRISTEDES stores) are powerful greenhouse gases that contribute to global climate change when emitted. They also deplete the ozone layer and are toxic to humans when present in the air in large quantities.
As alleged in the United States’ Complaint filed in Manhattan federal court:
GRISTEDES has owned and operated a chain of approximately 20 supermarkets in New York City. Between 2019 and 2021, despite utilizing regulated refrigerants known as hydrochlorofluorocarbons and hydrofluorocarbons at its supermarkets, GRISTEDES systematically failed to comply with key aspects of the RER Rule — failing to calculate the rate at which its appliances were leaking when adding new refrigerants, failing to timely repair leaks, failing to conduct verification testing after repairing appliances, failing to retrofit or retire leaking appliances, and failing to report chronically leaking appliances to EPA.
As a result, GRISTEDES’ refrigerators have leaked refrigerants into the atmosphere at a rate far higher than industry standards. These leaks have emitted more than 40,000 pounds of regulated climate-impacting refrigerants, with a greenhouse gas effect equivalent to driving an average, gasoline-powered vehicle an extra 140,000,000 miles.
In the Consent Decree, GRISTEDES admits, acknowledges, and accepts responsibility for the following conduct between 2019 and 2021:
- Failing failed to adopt or implement refrigerant management practices that were consistent with the RER Rule.
- Failing to calculate the leak rates for appliances upon addition of refrigerants to those appliances and to maintain records of the same.
- Failing to repair appliances that had leak rates above applicable thresholds under the RER Rule and to maintain records of the same.
- Failing to perform initial and follow-up verification tests to ensure that the repairs were successful, to perform subsequent leak inspections at intervals required by the RER Rule, and to maintain records of the same.
- Failing to implement retrofit or retirement plans for the appliances that had uncontrolled leaks or to maintain records of the same.
- Failing to submit reports to EPA related to chronically leaking appliances.
- Maintaining corporate-wide leak rates of 40%, 59%, and 46% in 2019, 2020, and 2021, respectively, resulting in the emission of 42,094 pounds of refrigerants, in total.
Pursuant to the Consent Decree, GRISTEDES will pay a penalty of $400,000, an amount based on the company’s documented inability to pay the full civil penalty for which it otherwise would be liable. Further, the Consent Decree requires GRISTEDES to undertake repairs of its commercial refrigeration equipment with an estimated cost of $13,500,000, to adopt a comprehensive refrigerant compliance management plan, to convert three stores to utilize advanced refrigerants with low global warming potential, and to lower its corporate leak-rate below 16%. Failure to comply with the Consent Decree will give rise to significant additional penalties.
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To provide public notice and afford members of the public the opportunity to comment on the Consent Decree, the Consent Decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval.
Mr. Williams thanked the attorneys and enforcement staff at EPA’s Region 5 for their critical work in this matter.
This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorneys Zack Bannon and Dominika Tarczynska are in charge of the case.
U.S. Marshals Find 200 Missing Children Across the Nation During Operation We Will Find You 2Read the Press Release
The U.S. Marshals Service (USMS), along with federal, state, and local agencies in seven federal judicial districts and geographical locations across the United States, led a six-week national operation that resulted in finding 200 critically missing children, which includes endangered runaways and those abducted by noncustodial persons.
Operation We Will Find You 2 (OWWFY2), the second-of-its-kind nationwide missing child operation, was conducted from May 20 to June 24 and focused on geographical areas with high clusters of critically missing children. Children who go missing may be in serious danger and can be vulnerable to child sex trafficking, abuse, exploitation, and other crimes against children.
With technical assistance from the National Center for Missing and Exploited Children (NCMEC), OWWFY2 resulted in the recovery and removal of 123 children from dangerous situations. An additional 77 missing children were located and found to be in safe locations, according to law enforcement or child welfare agencies. Of the 200 children found, 173 were endangered runaways, 25 were considered otherwise missing, one was a family abduction, and one was a non-family abduction. The youngest child recovered was five months old. 14 of the children were found outside the city where they went missing. Additionally, of the missing children recovered, 57% were recovered within seven days of the USMS assisting with the case.
“There are no words to describe the terror felt by missing children, their families, and their communities,” said Attorney General Merrick B. Garland. “I am grateful to the dedicated professionals of the U.S. Marshals Service and the National Center for Missing and Exploited Children who worked to find 200 critically missing children during this six-week operation, and who work every day to keep children safe.”
“One of the most sacred missions of U.S. Marshals Service is locating and recovering our nation’s critically missing children,” said USMS Director Ronald L. Davis. “This is one of our top priorities as there remain thousands of children still missing and at risk.”
“Operation We Will Find You is a shining example of the results we can achieve when we unite in our mission to find missing children,” said President and CEO Michelle DeLaune of NCMEC. “We are grateful that vulnerable children have been recovered as part of this operation, and we commend the U.S. Marshals Service and all the agencies involved for their commitment to protect youth and ensure these children are not forgotten. Behind every statistic, there is a child who deserves to grow up safe from harm.”
The operation was conducted from the following locations: District of Arizona (Phoenix, Glendale, Goodyear, Tucson, South Tucson, and Pima counties); Eastern District of California (San Joaquin County, Stockton, and Sacramento County); Southern District of Florida (Broward, St. Lucie, Martin, Palm Beach and Miami-Dade counties); Western District of Michigan (Kent, Lake, Ingham, and Ottawa counties); Eastern District of North Carolina (New Hanover, Brunswick, Harnett, Onslow, Pitt, Wake, Johnston, Robeson, Cumberland, Sampson, Nash, and Pender counties); Southern and Eastern Districts of New York (New York City); and District of Oregon (Multnomah, Washington, and Deschutes counties, as well as Portland and Eugene, and the Warm Springs Reservation).
The goal of OWWFY2 was to highlight partnerships amongst government and non-government agencies to develop a multi-disciplinary team whose focus was to pull together resources to find critically missing children and to bring more attention to the epidemic of missing children in America. During the operation, the USMS worked with their respective federal, state, and local law enforcement partners, NCMEC, the Department of Children and Family Services, and other agencies to safely find missing children at risk of endangerment. These missing children were considered some of the most challenging recovery cases in the area, based on indications of high-risk factors such as victimization of child sex trafficking, child exploitation, sexual abuse, physical abuse, and medical or mental health conditions. In addition, other children who had been reported missing were located at the request of law enforcement to ensure they were safe and to confirm the child’s location.
The Justice for Victims of Trafficking Act of 2015 enhanced the USMS’ authority to assist law enforcement with recovering endangered missing children, regardless of whether a fugitive or sex offender was involved. The USMS established a Missing Child Unit to oversee and manage the implementation of its enhanced authority under the Act. Members of the USMS Sex Offender Investigations Branch, Behavioral Analysis Unit, and Missing Child Unit began training personnel in the participating locations months before the operation to ensure that case selection, vetting, and all pre-operational requirements were met.
Operation We Will Find You Links:
- B-roll links:
- Miami B-roll: https://vimeo.com/964878547?share=copy
- North Carolina B-roll: https://vimeo.com/958138308?share=copy
- Photos and posters: https://www.flickr.com/gp/usmarshals/d44Ch0J1q3
Significant Recoveries:
Western District of Michigan:
On Jan. 11, a 16-year-old female child was reported missing from her home in Edwardsburg, Michigan, by her legal guardian. Information obtained through interviews showed the child was likely with a 30-year-old adult male somewhere in the state of Indiana. The investigation showed the child was likely being controlled and abused by the adult male. During the investigation, operation personnel learned information that the child had either attempted to get away from the adult male multiple times or the child wanted to do so. The child was in a difficult and dangerous situation, especially since she had traveled across state lines and was now in a new state, a long distance from where she was first reported missing. The adult male had recent photos of cash and firearms on his social media profile, including one photo where the adult male is apparently pointing a handgun with an extended magazine at the missing child. USMS identified multiple warrants for the adult male from multiple states, including Michigan. The USMS determined a likely location for the adult male and the child in Indiana. A collateral lead request was sent by the Western District of Michigan to the Northern District of Indiana and the Great Lakes Regional Fugitive Task Force. On June 13, USMS personnel attempted to arrest the adult male and recover the child at an apartment in Hammond, Indiana. The adult male jumped out of a window and attempted to flee the area—but was apprehended by a Police K-9 before his eventual arrest. USMS personnel located the child safely inside the apartment and released her to child protective services.
Southern District of Florida:
On May 13, a 15-year-old female was reported missing by her legal guardian. Information indicated that she might be staying at other people's houses or sleeping in parks in Miami-Dade, Florida. During the investigation, it was discovered the child had become a victim of human trafficking in the Miami-Dade area. On June 7, personnel from the U.S. Marshals Service, in collaboration with detectives from the Miami Police Department, located the child in an apartment complex in Miami-Dade after an extensive investigative search throughout the city. Upon being recovered, she was debriefed by Florida State Attorney’s Office Human Trafficking personnel and subsequently returned to the Florida Department of Child and Family Services custody.
District of Arizona:
On April 16, a 16-year-old was reported missing after she ran away from her group home in Phoenix. The female has a history of being sex trafficked. The investigation revealed the child was in Los Angeles, possibly being sex trafficked. The suspected trafficker was murdered in Los Angeles on May 25. The child told a family member she was going on vacation to Miami but when she got there her new “trafficker” dropped her off at the beach and told her to make money. On June 11, the child was located by USMS in Flint, Michigan, in a hotel, and was taken into custody on an outstanding arrest warrant for a probation violation. Her male associate was arrested on local charges for driving without a license and insurance. An additional 20-year-old female was identified in the hotel. The suspected trafficking case was referred to Homeland Security Investigations and they will continue to investigate the case.
New York/New Jersey Regional Task Force:
On Nov. 3, 2023, a 16-year-old female was reported in the National Crime Information Center as missing from New York City, New York Administration for Children’s Services (ACS), and was a prior victim of human trafficking. On May 1, 2024, the New York City Police Department Missing Persons Unit (NYPD MPU) requested USMS assistance in recovering the missing child. On June 3, New York USMS Regional Fugitive Task Force Members executed two arrest warrants for a 27-year-old male who was the primary subject of an ongoing investigation into the whereabouts of the missing minor who was being sexually exploited by the adult male. Upon execution of the warrant, the child was found in the male’s bedroom, and evidence of sexual exploitation was found at the premise. The child was placed in the care of ACS and transported to the hospital for medical treatment.
Eastern District of North Carolina:
On April 29, a one-year-old was reported missing to the Raleigh, North Carolina, Police Department (RPD), after her mother neglected to surrender her to the Department of Social Services (DSS). The RPD requested assistance from the USMS in finding the missing child. The child’s mother was previously convicted for her actions in the strangulation, assault, and death of one of her children, a four-year-old boy. Additionally, she was wanted on a felony probation violation pertaining to the original charge of cruelty toward a child. On May 15, USMS personnel and RPD personnel arrested the child’s mother without incident in Raleigh. The missing one-year-old was subsequently safely recovered in Raleigh by USMS investigators and handed over to DSS custody.
Eastern District of California:
On Oct. 26, 2023, a 17-year-old female was reported missing by her legal guardian. Information obtained revealed that she was likely staying with her older adult sister who was a known prostitute. The child’s older sister was recently arrested and on pretrial release for Human Trafficking, Pimping, and Pandering. On May 30, USMS personnel determined that the child and her adult sister were staying at a known prostitution and trafficking motel in Oakland, California. USMS personnel from the Eastern District of California coordinated with USMS personnel in the Northern District of California to establish a location for the child and her sister. Management at the hotel confirmed that both sisters had two rooms and had been staying there for some time with an unknown adult male. At one point, USMS observed the three individuals leave the rooms and begin packing their car. Once inside the vehicle, the USMS was able to safely move in and detain all three individuals. The child was then turned over to authorities.
District of Oregon
On May 21, a 12-year-old female went missing from her family home in Portland, Oregon, and had reported allegations of sexual abuse by family members. Law enforcement officers contacted the child through her cell, and she agreed to meet them at a grocery store in the Portland area. The officers received a call back from the child and a friend stating that her father was trying to pull her into his car, and she was scared. USMS investigators were able to intervene and separate the endangered child from her father. The child told law enforcement that she had been raped by two Hispanic males and that her father touched her inappropriately. On May 24, the child was safely recovered and placed in a foster home while the Oregon Department of Human Services (DHS) investigated the allegations. Within 24 hours of being placed in foster care, the foster family kicked the child out of their home. The child then called a Deputy U.S. Marshal (DUSM) that had built rapport with her to ask for assistance. The DUSM subsequently contacted DHS to report the incident. As a result, DHS placed the child in a state-run shelter.
Additional information about the USMS can be found at www.usmarshals.gov.
- B-roll links:
U.S. Attorney Announces Six Charged in Raleigh Kidnapping and Robbery Conspiracy as part of Federal Violent Crime StrategyRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment, filed on Friday, June 21, 2024, charging six Raleigh men with kidnapping, robbery, use of a firearm during a violent crime and conspiracy. Some of the individuals were also charged with separate gun and drug offenses.
“Two years ago, we launched a new multi-agency partnership to drive down violent crime in Raleigh,” said U.S. Attorney Michael Easley. “Today’s announcement shows the next phase of our strategy: a proactive focus on federal charges for violent offenders. We want Raleigh citizens to know our partners are working around the clock to keep our city safe.”
“This is another example of how collaborative relationships between the RPD and our Federal partners facilitated through the Violent Crime Action Plan (VCAP) reduce the drivers of violence by focusing on prolific offenders and the criminal activity they propagate. Violence that wreaks havoc on our community will not be tolerated. I thank U.S. Attorney Michael Easley, the Department of Justice, and our multi-agency partners for their continued support in combating violent crime in Raleigh. This case reinforces our unwavering commitment to the safety of our residents and the relentless pursuit of justice for crime victims,” said Raleigh Police Chief Estella Patterson.
According to the indictment, Mario Scott, also known as "Homicide" or "Homi," age 21, Tyferia Shakur Sherrod, also known as "2 Wop" or "Wop," age 23, Donta Lamont Bush Jr., "Gonzo" or "Zo," age 24, Hasheem Langston, also known as "Tek," age 23, Quest Jaquan Davis, also known as "Tek," age 29, and Deivon Jalil Spidle, also known as "BDay," age 22, conspired to kidnap and rob an adult victim.
Conspirators allegedly attached a GPS tracking device to the victim’s car in order to track and target him prior to the crimes. On the night of January 15, 2024, conspirators allegedly confronted the victim and held him at gunpoint, stealing jewelry and cash from his person. Conspirators then allegedly forced the victim into a vehicle and drove him to other locations in Wendell and Knightdale as they attempted to force the victim to get family members to give the kidnappers more money. During the course of the kidnapping, conspirators allegedly tied the victim’s hands and feet with duct tape and put a trash bag over his head. Some of the conspirators also allegedly used the victim’s apartment access information to break into his home and steal additional items. Eventually, when the victim’s family members did not provide additional money, the indictment alleges the victim was told he would be killed. The victim fought one of the conspirators and was able to escape a moving vehicle. One of the conspirators allegedly shot the victim as he escaped.
Mario Scott, Tyferia Shakur Sherrod, Donta Lamont Bush, Jr., Hasheem Langston, Quest Jaquan Davis, and Deivon Jalil Spidle are charged with conspiracy to commit kidnapping, kidnapping and aiding and abetting, conspiracy to commit Hobbs Act robbery, Hobbs Act robbery and aiding and abetting, and use and discharge of a firearm during a crime of violence and aiding and abetting. If convicted as charged, each faces a mandatory minimum of ten years’ imprisonment and a maximum possible term of life imprisonment.
Additionally, Davis is charged with possession with intent to distribute cocaine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted as charged, he faces a mandatory minimum of fifteen years’ imprisonment and a maximum possible term of life imprisonment. Respectively, Spidle is charged with possession of a firearm by a convicted felon. If convicted as charged, he faces a mandatory minimum of ten years’ imprisonment and a maximum possible term of life imprisonment.
On July 12, 2022, U.S. Attorney Easley announced a new federal violent crime strategy in partnership with the RPD, FBI, ATF, USMS, and Wake County DAs Office to prioritize cases against the most significant drivers of violence in the City of Raleigh. This indictment is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, interagency coordination, and intelligence-led policing. Since inception, there have been 63 cases indicted on federal charges.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation and Raleigh Police Department are investigating the case and Assistant U.S. Attorneys Sarah E. Nokes and Charles E. Loeser are prosecuting the case.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Three Former Executives Sentenced for $1B Corporate Fraud SchemeRead the Press Release
Three former executives of Outcome Health (Outcome), a Chicago-based health technology start-up company, were sentenced for their roles in a fraud scheme that targeted the company’s clients, lenders, and investors and involved approximately $1 billion in fraudulently obtained funds.
- Rishi Shah, 38, a co-founder and former CEO of Outcome, was sentenced on June 26 to seven years and six months in prison.
- Shradha Agarwal, 38, a co-founder and former president of Outcome, was sentenced yesterday to three years in a half-way house.
- Brad Purdy, 35, the former chief operating officer and chief financial officer of Outcome, was also sentenced yesterday to two years and three months in prison.
“Outcome’s former executives deceived their clients, their auditor, their lenders, and their investors for years,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Their sentences should serve as yet another reminder that ‘faking it until you make it’ is not an acceptable practice for any business, whether that company is a technology start-up or a well-established corporation. Lying about your revenue to obtain customers or financing is fraud, plain and simple. The Criminal Division is committing to holding companies and their executives accountable for their misconduct.”
“The defendants’ vast scheme defrauded the clients, investors, and lenders who supported their business,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “Although they sought to hide the fraud by silencing whistleblowers and duping auditors, a jury rightly held the defendants accountable for their extensive fraud scheme. Our office will continue to work tirelessly with our law enforcement partners to deliver justice for the victims of complex fraud schemes.”
According to court documents and evidence presented at trial, Outcome, which was founded in 2006 and known as Context Media prior to January 2017, installed television screens and tablets in doctors’ offices across the United States and then sold advertising space on those devices to clients, most of which were pharmaceutical companies. Shah, Agarwal, and Purdy sold advertising inventory the company did not have to Outcome’s clients and then under-delivered on its advertising campaigns. Despite these under-deliveries, the company still invoiced its clients as if it had delivered in full. Shah, Agarwal, and Purdy lied or caused others to lie to conceal the under-deliveries from clients and make it appear as if the company was delivering advertising content to the number of screens in the clients’ contracts. Purdy and others at Outcome also inflated metrics that purported to show how frequently patients engaged with Outcome’s tablets installed in doctors’ offices. According to the trial evidence, the scheme targeting Outcome’s clients began in 2011 and lasted until 2017, and resulted in at least $45 million of overbilled advertising services.
“This was an elaborate, billion-dollar fraud scheme by three people who were supposed to be leaders of the company,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response, and Services Branch. “Instead, these now former executives attempted to illegally line their own pockets. This type of fraud and abuse takes critical resources out of our health care system, and the FBI will always work with our law enforcement partners to investigate and prosecute anyone who intends to defraud the American public.”
Shah, Agarwal, and Purdy also defrauded Outcome’s lenders and investors. The under-delivery to Outcome’s advertising clients resulted in a material overstatement of Outcome’s revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because Purdy caused others to fabricate data to conceal the under-deliveries from the auditor. Shah, Agarwal, and Purdy then used the inflated revenue figures in Outcome’s 2015 and 2016 audited financial statements to raise $110 million in debt financing in April 2016, $375 million in debt financing in December 2016, and $487.5 million in equity financing in early 2017. The $110 million debt financing resulted in a $30.2 million dividend to Shah and a $7.5 million dividend to Agarwal, and the $487.5 million in equity financing resulted in a $225 million dividend that benefited Shah and Agarwal.
“The defendants in this case have been brought to justice for their actions in deceiving Outcome Health’s clients and fraudulently obtaining approximately $1 billion from its lenders and investors,” said Assistant Inspector General for Investigations Shimon R. Richmond of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “The FDIC-OIG will continue to work alongside our law enforcement partners to hold accountable individuals who harm lenders, investors, and clients by committing such fraudulent acts."
A federal jury convicted Shah, Agarwal, and Purdy in April 2023. Shah was convicted of five counts of mail fraud, 10 counts of wire fraud, two counts of bank fraud, and two counts of money laundering. Agarwal was convicted of five counts of mail fraud, eight counts of wire fraud, and two counts of bank fraud. Purdy was convicted of five counts of mail fraud, five counts of wire fraud, two counts of bank fraud, and one count of false statements to a financial institution.
Three other former Outcome employees pleaded guilty prior to trial. Ashik Desai, the former chief growth officer, pleaded guilty to one count of wire fraud. Kathryn Choi, a former senior analyst, and Oliver Han, a former analyst, both pleaded guilty to conspiracy to commit wire fraud. Desai will be sentenced on Sept. 20. Choi and Han will be sentenced on Oct. 4 and Oct. 11, respectively.
The FBI and FDIC-OIG investigated the case. The U.S. Securities and Exchange Commission provided assistance in the case.
Assistant Chief Kyle C. Hankey of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jason Yonan, Corey Rubenstein, and William Hogan for the Northern District of Illinois prosecuted the case. Former Assistant Chief William E. Johnston of the Criminal Division’s Fraud Section and former Assistant U.S. Attorneys Matthew F. Madden and Saurish Appleby-Bhattacharjee for the Northern District of Illinois also prosecuted the case through trial.
Texas Couple Serving Decades in Federal Prison for Importing, Distributing MethRead the Press Release
DEL RIO, Texas – A Texas man was sentenced in a federal court in Del Rio to 37 years in prison for conspiracy to import and distribute methamphetamine.
According to court documents, Joseph Ivy, 45, and his spouse, Yvette Contreras, 35, imported and sold large amounts of methamphetamine. Deputies from the Dimmit County Sheriff’s Office conducted a search warrant on their home in Catarina Aug. 18, 2020, discovering 1.5 kgs of methamphetamine, $7,389 in cash, two firearms, and a ledger documenting narcotic transactions. On Aug. 21, 2023, DCSO deputies apprehended Ivy during a traffic stop and found 2.4 kgs of methamphetamine in his vehicle.
Ivy admitted to transporting three kgs of methamphetamine to Moorhead, Minn. and four kgs to Charlotte, Texas. He and Contreras also admitted to working with a third conspirator, Margaret Charles Garcia. On at least two occasions, Garcia imported methamphetamine from Mexico at the instruction of Ivy.
Contreras was sentenced April 13, 2023 to 25 years in prison for her role in the conspiracy. Garcia pleaded guilty March 7, 2022 to one count of conspiracy to possess with intent to distribute methamphetamine. Garcia’s sentence hearing is scheduled for Oct. 2.
“These traffickers worked directly with Mexican drug cartels to bring loads of harmful narcotics into our communities and peddle them for a profit,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office remains committed, along with our local, federal and state partners, to dismantling criminal organizations and holding their personnel accountable for these serious offenses.”
“This Texas couple pushed large amounts of methamphetamine onto South Texas streets, and this lengthy prison sentence officially puts them out of business,” said Deputy Special Agent in Charge Alejandro Amaro for the Homeland Security Investigations San Antonio Division. “HSI is committed to disrupting prolific drug traffickers like Joseph Ivy and Yvette Contreras - criminals with no regard for the incredible damage they inflict on so many lives and communities.”
HSI and the DCSO investigated the case.
Assistant U.S. Attorneys Brett Miner and Zach Bird prosecuted the case.
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Suburban Chicago Physician Pleads Guilty to Federal Health Care Fraud ChargesRead the Press Release
CHICAGO — A suburban Chicago physician has pleaded guilty to federal health care fraud charges for billing Medicaid and private insurers for nonexistent services.
MONA GHOSH owned and operated Progressive Women’s Healthcare, S.C., a medical office in Hoffman Estates, Ill., specializing in obstetrics and gynecology services. From 2018 to 2022, Ghosh submitted and caused her employees to submit fraudulent claims to Medicaid, TRICARE, and numerous other insurers for procedures and services that were not provided or were not medically necessary, some of which were performed without patient consent. Ghosh also fraudulently overstated the length and complexity of in-office and telemedicine visits and submitted claims using billing codes for which the visits did not qualify in order to seek higher reimbursement rates, her plea agreement states. Ghosh admitted in the plea agreement that she prepared false patient medical records to support the fraudulent reimbursement claims.
Ghosh, 51, of Inverness, Ill., pleaded guilty Thursday to two counts of health care fraud. Each count is punishable by up to ten years in federal prison. U.S. District Judge Franklin U. Valderrama set sentencing for Oct. 22, 2024.
It is the government’s position that Ghosh is accountable for at least $2.4 million in fraudulently obtained reimbursements. Ghosh admitted in the plea agreement that she is accountable for more than $1.5 million of such fraudulently obtained reimbursements. The final amount will be determined by the Court at sentencing.
The plea agreement was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Darrin K. Jones, Special Agent-in-Charge of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Southeast Field Office; Mario Pinto, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Health and Human Services, Office of Inspector General; and Kwame Raoul, Illinois Attorney General. The government is represented by Assistant U.S. Attorney Misty N. Wright.
Ghosh plea agreementStatement of U.S. Attorney Zachary A. Myers on the Passing of Former Assistant U.S. Attorney Charles Goodloe Jr.Read the Press Release
INDIANAPOLIS- Zachary A. Myers, United States Attorney for the Southern District of Indiana, issued the following statement on the death of former Assistant U.S. Attorney Charles Goodloe Jr.:
Mr. Charles Goodloe, Jr., was a native of Greenfield, Indiana, and earned his undergraduate and law degrees at Indiana University. He joined the U.S. Attorney’s office in 1971 as a law clerk and was appointed as an Assistant U.S. Attorney upon passing the bar exam that year. Mr. Goodloe was the first Black person to ever serve as an AUSA in the state of Indiana and was the office’s longest-ever serving attorney when he retired in 2008.
“The U.S. Attorney’s Office is deeply saddened to learn of Charles Goodloe Jr.’s passing. Mr. Goodloe was an extraordinarily talented trial attorney, dedicated public servant, and trailblazer who opened doors of opportunity for others,” said U.S. Attorney Myers. “Charles Goodloe prosecuted many complex, important, and difficult cases, including complex fraud prosecutions of corporate executives and what turned out to be the final prosecution of the Indiana leader of the Ku Klux Klan. Ever the gentleman, he approached his work with dignity, kindness, attention to detail, and tremendous skill. Mr. Goodloe was an inspiration and mentor to me and many others who followed in his footsteps. His impact was so significant he was the first person to have a conference room in our office dedicated in their honor. We offer our heartfelt condolences to Mr. Goodloe’s family, friends, and colleagues who join us in mourning his passing and celebrating his legacy.”
In addition to his accomplishments as a prosecutor, Mr. Goodloe served our country in the United States Army for two years. Charles was a beloved husband and father, an avid reader, and incredibly generous with his time and talent. He will be missed.
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Starr County justice of the peace and another sent to prison for roles in drug trafficking organizationRead the Press Release
McALLEN, Texas – Two Starr County residents, one a former justice of the peace (JP), are now headed to federal prison for their roles in a drug-trafficking organization, announced U.S. Attorney Alamdar S. Hamdani.
Roel Valadez Jr., 33, and Diego Alberto Reyes-Roiz, 43, both of Rio Grande City, pleaded guilty March 18 and March 25, respectively.
Chief U.S. District Judge Randy Crane has now ordered Reyes-Roiz to serve a total of 22 years in prison, while former JP Valadez must serve 21 months. Reyes-Roiz must also serve five years of supervised release following release from prison. Valadez will be on supervised release for three years.
In handing down the sentence, Judge Crane found Reyes-Roiz was the leader of a drug-trafficking organization that imported substantial quantities of drugs into the United States from Mexico which was then distributed throughout Texas. Reyes-Roiz was found responsible for the importation of approximately 43 kilograms of meth from Mexico into the United States in addition to large amounts of cocaine and marijuana.
The Court learned about how Valdez had been doing favors for Ignacio Garza - one of the heads of the drug trafficking organization. Garza had received information that authorities had stopped and apprehended one of his drug couriers. Valadez, a JP since 2018, made a series of phone calls to the Starr County jail to see if the courier had been booked, and if so, by whom and reached out to another Justice of the Peace to see if he could be released on his own recognizance.
“As an elected official in Starr County, a judge none the less, Valadez swore an oath to uphold the law,” said Hamdani. “However, he betrayed his oath of office and the citizens of Starr County when he abused his office to assist and protect a local drug-trafficking organization.”
At the time of his plea, Valadez admitted he had possessed with intent to distribute less than 100 kilograms of marijuana. He also acknowledged he had used his JP position to assist another person in obtaining a low bond for one of his workers that law enforcement had detained.
Reyes-Roiz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Valadez was permitted to remain on bond and voluntarily surrender at a later date.
Garza, 53, Rio Grande City, also pleaded guilty and is set for sentencing Sept. 5. At that time, he faces up to life in federal prison as well as a possible $10 million fine. He remains in custody.
The Drug Enforcement Administration, FBI, Homeland Security Investigations and IRS Criminal Investigations conducted the Organized Crime and Dug Enforcement Task Forces (OCDETF) investigations with the assistance of local task force officers. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. Assistant U.S. Attorneys Patricia Cook Profit and Ted Parran prosecuted the cases.
Standing Pine Man Sentenced to Almost 4 Years in Prison for Domestic Violence Assault on Choctaw Indian ReservationRead the Press Release
Jackson, Miss. – A Standing Pine man was sentenced to 46 months in in federal prison for a domestic assault resulting in serious bodily injury.
According to court documents, Kendall D. Ben, 31, physically assaulted his girlfriend in the Standing Pine Community of the Choctaw Indian Reservation.
Ben was indicted by a federal grand jury on January 25, 2022. He pled guilty on February 17, 2023, to assault resulting in serious bodily injury.
U.S. Attorney Todd Gee and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The Choctaw Police Department and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorneys Kevin J. Payne and Brian K. Burns prosecuted the case.
St. Louis Man Admits Receiving Drugs in Mail, Shipping Drug CashRead the Press Release
ST. LOUIS –A St. Louis, Missouri man on Monday admitted receiving drugs shipped to St. Louis and mailing out the resulting drug proceeds.
Timothy Carter, 35, pleaded guilty to one felony count of conspiracy to distribute and possess with the intent to distribute fentanyl. His co-defendant, A.D. Harris, 31, of St. Louis County, pleaded guilty to the same charge in December.
Both men admitted receiving drugs in the mail and mailing the proceeds of the drug sales. On Aug. 23, 2021, investigators spotted a suspicious package being mailed to an address in the 4800 block of Allemania Street in St. Louis. The package was shipped in a retail box for a microwave. Harris then took the package to Carter’s home in the 7300 block of Hampshire Drive.
On Sept. 8, 2021, investigators spotted a microwave box being mailed from St. Louis to Texas. A court-approve search uncovered $28,500 in drug proceeds heavily wrapped inside the shell of a microwave, Carter’s plea agreement says. Fingerprints of Harris and Carter were on the microwave, the wrappings that concealed the currency, or both.
Investigators later identified another microwave box that was being shipped to an address associated with a Harris relative. On October 4, Harris picked up the package. When law enforcement tried to stop Harris, he fled at high speed to Carter’s house. Agents followed Harris into the garage and arrested both Harris and Carter.Investigators seized Harris’ vehicle, along with $11,000, several mobile devices, and a notebook with a drug ledger and receipts, including a receipt for the purchase of a microwave on Sept. 7, 2021. Agents recovered $4,000 in drug proceeds from a Harris relative and a package containing $7,000 in drug proceeds. A package in Harris’ vehicle contained 406.92 grams of fentanyl.
Carter is scheduled to be sentenced September 30. Harris was sentenced in March to 87 months in prison.
The U.S. Postal Inspection Service, Homeland Security Investigations and the FBI investigated the case. Assistant U.S. Attorney Stephen Casey is prosecuting the case.
St. Louis Felon Caught Twice with Guns Sentenced to 100 Months in PrisonRead the Press Release
ST. LOUIS –U.S. District Judge Matthew T. Schelp on Monday sentenced a convicted felon from St. Louis, Missouri who was caught twice with a firearm and drugs to 100 months in prison.
Dawon Hennings, 40, pleaded guilty in March to two counts of being a felon in possession of a firearm. He admitted being caught with a 9mm handgun and methamphetamine on April 12, 2022 by Saint Louis County Police Department officers engaged in a special enforcement detail within the North County Precinct. Officers had spotted a Kia Optima without a front license plate and pulled the vehicle over.
After Hennings was indicted and a warrant was issued for his arrest, detectives with the St. Louis County Police Department saw him walking on Lookaway Drive in St. Louis County on Dec. 26, 2022. Detectives arrested Hennings and found a stolen Glock .380 caliber semi-automatic pistol in his pocket, as well as a baggie containing meth and another containing a small amount of a mixture of cocaine, heroin and fentanyl.
The St. Louis County Police Department investigated the case. Assistant U.S. Attorney J. Christian Goeke 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.
St. Louis County Man Admits Fatally Shooting Acquaintance Before Stealing DrugsRead the Press Release
ST. LOUIS –A man pleaded guilty Monday to three felony charges and admitted shooting a sleeping acquaintance in the head in a St. Louis County, Missouri home before stealing his jewelry and drugs.
Terry W. Winebarger, 52, pleaded guilty in U.S. District Court in St. Louis to possession with the intent to distribute methamphetamine, discharge of a firearm in furtherance of a drug-trafficking crime resulting in death and being a felon in possession of a firearm.
Winebarger admitted fatally shooting an acquaintance, referred to in the indictment as “J.S.,” in the head with J.S.’s 10mm Glock handgun on Feb. 18, 2023, in a home in Hanley Hills. Winebarger then stole the victim’s gun, jewelry and some methamphetamine that J.S. had bought earlier. J.S. was asleep when he was shot.
Winebarger had been picked up in Overland, Missouri, by the victim and his roommate earlier in the evening. Investigators later apprehended Winebarger leaving a bar.
Winebarger is scheduled to be sentenced on Sept. 30, 2024.
The Drug Enforcement Administration, the St. Louis County Police Department, the Major Case Squad and the North County Police Cooperative investigated the case, with assistance from the St. Louis Metropolitan Police Department and the St. Charles County Police Department.
St. Louis County Man Accused of Robbing Three BanksRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri who has been accused of robbing at least three banks appeared in court Monday.
Derrick Snulligan, 61, of Velda Village Hills, was charged by complaint in U.S. District Court in St. Louis on June 28 with bank robbery. Charging documents accuse Snulligan, also known as Derrick Jackson, of robbing a credit union in Florissant, Missouri and another in St. Louis, Missouri on June 27, as well as a credit union in Hazelwood on June 24.
In each robbery, Snulligan handed a threatening note to a teller demanding cash, the charging documents say.
Charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI, the Florissant Police Department, the St. Louis Metropolitan Police Department and the Northwoods Police Department investigated the case. Assistant U.S. Attorney Paul D’Agrosa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
St. Francis Man Sentenced for AssaultsRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Robert A. Lange, U.S. District Court, has sentenced a St. Francis, South Dakota man convicted of two counts of Assault Resulting in Serious Bodily Injury. The sentencing took place on July 1, 2024.
Charles Cordier, age 25, was sentenced to five years in federal prison, followed by three years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Cordier was indicted by a federal grand jury in June of 2023. He pleaded guilty on April 1, 2024.
On February 12, 2023, Cordier was in St. Francis when he struck a man in the face with a metal bar. The victim suffered a mandible fracture and received medical care in Rosebud and in Rapid City for the injuries. For most of the month of March, 2023, Cordier had been quarreling with another man. On March 26, 2023, their feud came to a head when they encountered each other and the victim was armed with a chain and Cordier had a pistol. Cordier fired his gun at the other man and struck him, fracturing a bone in his forearm. This victim received medical care in Rosebud and Rapid City to treat his injuries. Both assaults occurred within the Rosebud Reservation.
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 matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Cordier was immediately remanded to the custody of the U.S. Marshal to serve his sentence.
Sierra Leone Man Pleads Guilty to Car Loan Fraud SchemeRead the Press Release
CONCORD – A Sierra Leone man pleaded guilty today in federal court to orchestrating a fraudulent car loan scheme, U.S. Attorney Jane E. Young announces.
Solomon Yarteh, 50, pleaded guilty to three counts of bank fraud. U.S. District Court Judge Paul J. Barbadoro scheduled sentencing for October 7, 2024. Co-defendants Donna Silva, Niurka Lebron, and Robosteur St. Felix previously all pled guilty and were sentenced in 2022.
Yarteh was the owner and President of Allied Imports, a car wholesaler located in Manchester. As a wholesaler, Allied Imports was not licensed to conduct retail sales of vehicles and could only sell to dealers. Allied Imports was located next to Cap’s Auto Sales, a business licensed to sell cars. Cap’s Auto was controlled by St. Felix.
Between February 2019 and July 2019, Yarteh led a scheme to fraudulently obtain multiple car loans from multiple financial institutions. The loans were supposed to be secured by vehicles being sold by Allied Imports or Cap’s Auto. Yarteh and his co-conspirators used fraudulent documents to trick lenders into believing that Allied Imports or Cap’s Auto owned and held title to the vehicles when the cars actually belonged to other companies. The loan proceeds were deposited into accounts Yarteh controlled. Yarteh was able to fraudulently obtain over $430,000 through this scheme.
Yarteh was originally indicted in 2021, but had already left the United States. INTERPOL then issued a red notice for his arrest. In spring 2023, authorities in the United Arab Emirates arrested Yarteh in Dubai. With the cooperation of the Emirati government, Yarteh was removed to the United States in late November 2023. He has continuously been in custody since.
The charging statute provides a sentence of no greater than 30 years in prison, 5 years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The case was investigated by the United States Secret Service and United States Postal Inspection Service. The New Hampshire Banking Department, INTERPOL, Department of Justice’s Office of International Affairs, and Government of the United Arab Emirates provided valuable assistance. Assistant U.S. Attorneys Alexander S. Chen and Charles L. Rombeau are prosecuting the case.
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Sherwood Woman Sentenced to Federal Prison for Money LaunderingRead the Press Release
LITTLE ROCK—Karen Hoskins will spend 15 months in federal prison for money laundering. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by Chief United States District Judge Kristine G. Baker.
On February 3, 2021, Brian Jeffrey Litton and eight others were indicted on conspiracy to distribute methamphetamine and other charges. Litton is the son of Hoskins, 63, of Sherwood. Litton was subsequently released to home detention with electronic monitoring. Litton’s bond conditions required him to reside in the Eastern District of Arkansas and to maintain regular contact with his United States Probation Officer and his defense attorney.
An investigation revealed that in May 2021, Litton failed to report to the United States Probation Office and failed to maintain contact with his defense counsel, and his whereabouts became unknown. Litton was declared a fugitive and a warrant was issued for his arrest. Later in May, Hoskins, who denied knowing Litton’s location, returned his electronic monitoring equipment, and represented that Litton removed the monitoring equipment and was missing.
In August 2021, Litton was determined to be living in a wooded area of Pulaski County, and Hoskins was observed meeting with Litton in this remote location. Evidence in the case, including text communications, revealed that Hoskins knew Litton’s whereabouts beginning in July 2021, and that she intentionally concealed Litton from law enforcement.
Through the investigation, it was learned that during 2020 and 2021 Hoskins engaged in a money laundering scheme with her son, in which Hoskins received drug proceeds from Litton in the amount of $2,000 to $5,000 cash on a weekly basis. Hoskins, who knew that her son’s drug trafficking activity was the source of the cash, concealed the drug proceeds at her house to avoid seizure of the money by law enforcement. Litton would retrieve the cash he needed from Hoskins’ home to purchase multiple pound quantities of methamphetamine which he and others distributed in central Arkansas. Hoskins provided Litton with an American Express card to use for living expenses and paid her son’s bills using the drug proceeds. During 2020 and 2021, Hoskins used more than $150,000 in drug proceeds to fund her gambling habit.
On October 6, 2021, Hoskins was charged in a Superseding Indictment with harboring a fugitive. On July 6, 2022, a Second Superseding Indictment was returned charging Hoskins with conspiracy to money launder, as well as five counts of money laundering in connection with her son’s drug trafficking activity. Hoskins pleaded guilty on August 14, 2023, to one count of money laundering.
Chief Judge Baker also sentenced Hoskins to two years of supervised release, and Hoskins was ordered to pay a money judgment in the amount of $200,000 as part of the plea agreement. There is no parole in the federal system.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The investigation was conducted by the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Anne Gardner.
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Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
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Schuylkill County Man Sentenced to 84 Months’ Imprisonment for Conspiracy to Commit RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joshua Marsh, age 29, of Pottsville, Pennsylvania, was sentenced today to 84 months’ imprisonment by United States District Court Judge Malachy E. Mannion for conspiracy to interfere with commerce by robbery.
According to United States Attorney Gerard M. Karam, Marsh previously pleaded guilty to one count of conspiracy to interfere with commerce by robbery. As part of his guilty plea, Marsh admitted that on August 30, 2020, he participated in an armed home-invasion robbery in Mahanoy City, Pennsylvania. During that robbery, Marsh, along with his co-conspirators Joushton Rodriguez and Solomon Rodriguez, entered the victims’ home and robbed the victims of a lockbox containing drug proceeds. All three perpetrators were masked and Joushton Rodriguez was armed with a homemade AR-15 style machinegun. The ringleader of the conspiracy, Steven Wong, along with four remaining co-conspirators, are still awaiting sentencing.
The charges stem from an investigation involving the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Pennsylvania State Police, the Mahanoy City Police Department, the Schuylkill Haven Police Department, the Pottsville Police Department, the Shillington Police Department, the Reading Police Department, and the Lehigh County District Attorney’s Office. The case was prosecuted by Assistant United States Attorneys James Buchanan, Jenny Roberts, and Sarah Lloyd.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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San Francisco Man Faces Federal Charges for Embezzling More Than $1.2 Million from His EmployersRead the Press Release
SAN FRANCISCO – A federal grand jury has returned an indictment charging a San Francisco man with bank fraud and other crimes relating to a scheme in which he embezzled more than $1.2 million from his employers, local law firms.
U.S. Attorney Ismail J. Ramsey for the Northern District of California and FBI San Francisco Division Special Agent-in-Charge Robert K. Tripp made the announcement.
According to the indictment unsealed today, Tony Archuleta-Perkins, 48, started a non-profit organization called “Murrieta Valley High School 1994” (MVHS 1994), in 2013.
From 2017 to 2023, Archuleta-Perkins worked for two San Francisco law firms. He held various roles at the firms, eventually becoming Chief Financial Officer (CFO). As the CFO, Archuleta-Perkins was in a position of trust and had access to the law firms’ end-to-end payments automation platform.
The indictment alleges that from at least May 2018 through December 2023, Archuleta-Perkins used the access he had as an employee in a position of trust at the law firms to cause the law firms to make false and fraudulent payments to MVHS 1994 that had not been authorized by the law firms’ management and were not for any legitimate business purpose.
Once the stolen funds were in MVHS 1994’s bank account, Archuleta-Perkins would sometimes directly issue payments to vendors and accounts for personal expenses that had nothing to do with the stated purposes of MVHS 1994 or the law firms. On other occasions, he wrote checks from MVHS 1994 to himself and deposited those checks into his personal bank account.
Additionally, on at least one occasion, Archuleta-Perkins falsely endorsed a $41,663.69 U.S. Treasury check made out to one of the law firms, deposited it into a bank account belonging to MVHS 1994 and then wrote himself a check for the same amount.
The indictment further alleges that Archuleta-Perkins used the stolen money for personal expenses, including payments on Best Buy and Home Depot credit cards, and towards the purchase, renovation, and improvement of at least three properties in California.
In sum, the indictment charges Archuleta-Perkins with eight counts of bank fraud, in violation of 18 U.S.C. § 1344(2), and five counts of engaging in monetary transactions in property derived from specified unlawful activity (otherwise known as money laundering), in violation of 18 U.S.C. § 1957.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Archuleta-Perkins faces a maximum statutory sentence of 30 years in prison on each of the bank fraud counts and a maximum statutory sentence of 10 years in prison on each of the money laundering counts. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Special Agents of the FBI arrested Archuleta-Perkins in San Francisco this morning. He subsequently appeared in federal court and was released pending trial on a $500,000 bond.
Archuleta-Perkins’s next court appearance is scheduled on July 31, 2024 before United States District Judge Jacqueline Scott Corley.
Assistant U.S. Attorney Nikhil Bhagat is prosecuting the case with the assistance of Madeline Wachs. Deputy Assistant Attorney General Lisa H. Miller of the Justice Department’s Criminal Division provided valuable assistance. The prosecution is the result of an investigation by the FBI.
Saginaw Man Sentenced to Federal Prison for Sexually Exploiting MinorsRead the Press Release
BAY CITY – Eric Hartman, 34, of Saginaw was sentenced to 19½ years in federal prison for sexually exploiting children, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the Federal Bureau of Investigation’s Detroit Field Office.
United States District Court Judge Thomas L. Ludington imposed sentence on Hartman, on June 27, 2024, following his guilty plea to sexual exploitation and attempted sexual exploitation of a minor. Judge Ludington also sentenced Hartman to five years of federal supervised release following his release from incarceration.
Hartman’s crimes became known in 2023 when a 13-year-old reported to the Federal Bureau of Investigation that Hartman was threatening her and forcing her to send sexually explicit images and videos to him online. Law enforcement traced Hartman to Saginaw, and the FBI executed a search warrant at Hartman’s residence where they recovered multiple electronic devices. The FBI analyzed the devices and found numerous online conversations between Hartman and minors where Hartman requested the minors send him sexually explicit videos. They also found numerous images and videos of other child sexually abusive material.
“This case came to light through the bravery of a young victim who came forward to bring her predator to justice. This sentence justly punishes the defendant for preying on children and hopefully will encourage others to seek help from trusted adults and law enforcement if they are being coerced into sending explicit images online,” U.S. Attorney Ison said.
"Mr. Hartman is a glaring example of the manipulative nature of sexual predators, underscoring the relentless efforts of the FBI to apprehend these criminals and safeguard our children," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "His actions were despicable, and those who perpetrate such crimes will face justice. The FBI urges anyone with knowledge of child sexual exploitation to report it at tips.fbi.gov or by calling 1-800-CALL-FBI."
This case was investigated by the FBI. The case was prosecuted by Assistant U.S. Attorney Katharine Hemann.
Sacramento Man Charged with Serial Production of Child Sexual Abuse MaterialRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment on June 6, 2024, against Sean Ryan Angelo Grace, 32, of Sacramento, charging him with producing images and videos depicting child sexual abuse material, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between August 2021 and August 2023, Grace convinced at least five underage female victims to send him images and videos depicting themselves engaging in sexually explicit conduct.
This case is the product of an investigation by the Internet Crimes Against Children Unit of the Sacramento Valley Hi-Tech Crimes Task Force, which includes the Folsom Police Department. Assistant U.S. Attorney Sam Stefanki is prosecuting the case.
If convicted, on each count, Grace faces a mandatory minimum penalty of 15 years in prison and a maximum statutory penalty of 30 years in prison, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 U.S. 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 those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Reynosa man sent to prison for attempting to smuggle several firearms to MexicoRead the Press Release
McALLEN, Texas – A 24-year-old resident of Reynosa, Mexico, has been sentenced for attempting to smuggle multiple firearms to Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Guadalupe Mendiola-Urbina pleaded guilty March 21, 2023.
Chief U.S. District Judge Randy Crane has now ordered Mendiola-Urbina to serve 38 months in federal prison. Not a U.S. citizen, Mendiola-Urbina is expected to face removal proceedings following his imprisonment.
On May 18, 2022, Mendiola-Urbina entered the United States through the Hidalgo Port of Entry in a vehicle. He was found to be in possession of $4,000 at the time he entered. That same day, Mendiola-Urbina attempted to leave the United States and enter Mexico through the Hidalgo Port of Entry in the same vehicle.
Upon inspection, authorities discovered seven Glock pistols and eight firearm magazines concealed in his vehicle. Mendiola-Urbina admitted to hiding the firearms and magazines in the vehicle to take them to Mexico.
Mendiola-Urbina will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Customs and Border Protection conducted the joint investigation.
Assistant U.S. Attorney Cahal P. McColgan prosecuted the case.
Prominent Ghanaian “Influencer” Sentenced to One Year in Prison for Receiving Romance Scam ProceedsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MONA FAIZ MONTRAGE was sentenced to 12 months and one day in prison by U.S. District Judge J. Paul Oetken on June 28, 2024. MONTRAGE previously pled guilty on February 21, 2024, to conspiracy to receive stolen money.
U.S. Attorney Damian Williams said: “Mona Faiz Montrage knowingly received illegal funds from older Americans who were victims of romance scams and now faces serious consequences for her actions. Romance scams such as Montrage’s harm vulnerable, elderly victims not only in the cruel betrayal of trust in the realization that their online romantic connection was fiction, but by also callously stealing their money. This Office and our law enforcement partners are relentless in bringing fraudsters who target Americans to justice, no matter where they are.”
As alleged in the Indictment and statements made in public filings and public court proceedings:
From at least in or about 2013 through in or about 2019, MONTRAGE was a member of a criminal enterprise (the “Enterprise”) based in West Africa that committed a series of frauds against individuals and businesses in the U.S., including romance scams.
Many of the Enterprise’s romance scam victims were vulnerable, older men and women who lived alone. The Enterprise frequently conducted the romance scams by sending the victims emails, text messages, and social media messages that deceived the victims into believing that they were in romantic relationships with a person who was, in fact, a fake identity assumed by members of the Enterprise. Once members of the Enterprise had successfully convinced victims that they were in a romantic relationship and had gained their trust, they convinced the victims, under false pretenses, to transfer money to bank accounts the victims believed were controlled by their romantic interests, when, in fact, the bank accounts were controlled by members of the Enterprise.
MONTRAGE is a Ghanaian public figure who rose to fame as an influencer through her Instagram profile under the username “Hajia4Reall,” which at one point had approximately 3.4 million Instagram followers and was among the top 10 most followed profiles in Ghana.
MONTRAGE received money from approximately forty victims of romance frauds, whom members of the Enterprise tricked into sending money. Among the false pretenses used to induce victims to send money to MONTRAGE were payments to transport gold to the U.S. from overseas, payments to resolve a fake Federal Bureau of Investigation (“FBI”) investigation, and payments to assist a fake U.S. Army officer in receiving funds from Afghanistan.
In total, MONTRAGE controlled bank accounts that received over $2 million in fraudulent funds for the Enterprise.
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In addition to the prison term, MONTRAGE, 32, of Accra, Ghana, was sentenced to three years of supervised release and order to forfeit $216,475 and pay restitution in the amount of $1,387,458.
Mr. Williams praised the outstanding work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Mitzi Steiner and Kevin Mead are in charge of the prosecution.
Plattsburgh Man Sentenced to 120 Months in Prison for Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK –Jason Miller, age 33, of Plattsburgh, New York, was sentenced today to serve 120 months in federal prison for possession of child pornography.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his guilty plea, Miller admitted that on March 17, 2021, he possessed images on his cell phone of minors engaged in sexually explicit conduct. The defendant’s conduct was uncovered during a joint law enforcement investigation into an online group sharing images of child pornography on Kik, a social media messaging application. The defendant admitted to receiving, distributing, and possessing child pornography on Kik.
United States District Judge Mae A. D’Agostino also imposed a term of 15 years of supervised release, which will start after Miller is released from prison. Miller will also be required to register as a sex offender.
Miller was previously convicted on May 16, 2016, in Clinton County Court of disseminating indecent material to minors in the first degree. Following multiple violations of probation, he was sentenced to 16 months to 4 years’ imprisonment.
The FBI investigated this case as part of Project Safe Childhood. Assistant U.S. Attorney Carling Dunham prosecuted the case.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Northeast Kingdom Man Sentenced in Drug Conspiracy CaseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on June 28, 2024, Clair Deslandes, 65, of Island Pond, Vermont, was sentenced by United States District Judge Christina Reiss to a term of 30 months’ imprisonment to be followed by a 3-year term of supervised release. Deslandes previously pleaded guilty to conspiring with others to distribute fentanyl and cocaine base pursuant to a plea agreement with the United States.
According to court records, Deslandes became associated with his codefendant Juan Carlos “JC” Ortiz in late 2021 while Ortiz was staying at multiple residences in and around Orleans County, Vermont, for the purpose of distributing drugs. Deslandes purchased controlled substances from Ortiz, both for his own consumption and for distribution to others in the Northeast Kingdom. Witnesses explained that Deslandes allowed Ortiz and other drug dealers to periodically stay at his Island Pond residence, which was used to store and distribute controlled substances to customers. Deslandes appears to have continued his drug interactions with Ortiz until Ortiz was arrested in August 2022. Earlier in this case, Judge Reiss sentenced Ortiz to 95 months’ imprisonment for his role in the conspiracy.
The sentencing hearing followed a long-term investigation conducted by multiple local, county, state and federal agencies that was led by the Northeastern Vermont Drug Task Force (NEVDTF) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). NEVDTF and ATF were assisted in this investigation by agents with Homeland Security Investigations, detectives and troopers from the Vermont State Police; members of the Orleans and Essex County Sheriff’s Departments, the Newport Police Department; aviators with the Air & Marine Operations component of United States Customs & Border Protection; and the Federal Bureau of Investigation (FBI). United States Attorney Nikolas P. Kerest commended the collaboration of federal, state, county and local law enforcement agencies during the investigation and prosecution of the case.
The United States is represented in this matter by Assistant U.S. Attorney Matthew Lasher. William Kraham, Esq. represented Clair Deslandes.
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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Nine Individuals Charged in Middle District of Florida in Connection with Health Care Fraud SchemesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces criminal charges against nine individuals in connection with alleged schemes to defraud programs entrusted for the care of the elderly and disabled, and to obtain controlled substances through fraud. The charges filed in the Middle District of Florida (MDFL) are part of the Department of Justice’s 2024 National Health Care Fraud Enforcement Action.
“The U.S. Attorney’s Office is committed to working with our federal, state, and local partners to investigate and prosecute health care fraud,” said U.S. Attorney Handberg. “This enforcement action demonstrates my office’s resolve, and that of the Department of Justice, to protect these programs and the people they benefit from exploitation.”
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
The MDFL cases are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets.
The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces 32 U.S. Attorneys’ Offices are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The MDFL has worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: U.S. Department of Health and Human Services-Office of Inspector General; Federal Bureau of Investigation; Internal Revenue Service - Criminal Investigation; Drug Enforcement Administration; Homeland Security Investigations; and Food and Drug Administration - Office of Criminal Investigations.
The following individuals have been charged in Middle District of Florida:
- Ma Gracia Cadet, 53, of Kissimmee, Florida, was charged by information with conspiracy to commit health care fraud in connection with an alleged scheme to fraudulently obtain over $9.3 million in Medicare funds. According to the information, Cadet, the owner of durable medical equipment (“DME”) companies KGA Medical Supply LLC and Sapphire Medical Supply LLC, caused the submission of false and fraudulent claims to Medicare for DME that was medically unnecessary and ineligible for reimbursement by Medicare. Cadet offered and paid illegal kickbacks to her co-conspirators at purported telemedicine companies in exchange for signed doctors’ orders for medically unnecessary orthotic braces that were ultimately billed to Medicare. The case is being prosecuted by Trial Attorney Jessica A. Massey of the Florida Strike Force.
- Eva LeBeau, 65, of Clearwater, Florida, and Lori Lebrecht, 60, of Largo, Florida, were charged by indictment with conspiracy to defraud the United States and to pay and receive illegal health care kickbacks, as well as with paying illegal health care kickbacks to patient recruiters, all in connection with an alleged scheme to refer Medicare beneficiaries to Prestigious Senior Home Health Care, Inc. and to submit false and fraudulent claims totaling over $2 million for home health services. LeBeau owned Prestigious and Lebrecht was Prestigious’ Director of Nursing. The indictment alleges that LeBeau and Lebrecht conspired to pay, and paid, patient recruiters per patient referral that Prestigious to billed to Medicare. Medicare paid approximately $1.3 million based on the false and fraudulent claims. The case is being prosecuted by Trial Attorneys Reginald Cuyler Jr. and Charles D. Strauss of the Florida Strike Force.
- Robert Desselle, 46, of Sarasota, Florida was charged by indictment with conspiracy to defraud the United States and to pay and receive health care kickbacks, and with paying illegal health care kickbacks, in connection with a scheme to pay illegal health care kickbacks to patient recruiters in exchange for referring Medicare beneficiaries. The alleged scheme involved Desselle, through his company Desselle’s Sky High Enterprise, LLC, paying marketers on a per-patient basis to recruit Medicare beneficiaries for cancer genetic testing (“CGx”) tests which were not medically necessary. As a result of the charged scheme, Medicare paid approximately $4.5 million on CGx claims billed for these beneficiaries. The case is being prosecuted by Trial Attorney Charles D. Strauss of the Florida Strike Force.
- Marques Elijah Green, 29, of Windermere, Florida, was charged by information with conspiracy to commit health care fraud in connection with an alleged scheme to fraudulently obtain over $3.4 million in Medicare funds. According to the information, Green, owner of durable medical equipment (“DME”) companies Onyx Medical Supply LLC and AquaMed Supply LLC, caused the submission of false and fraudulent claims to Medicare for DME that was medically unnecessary and ineligible for reimbursement by Medicare. Green offered and paid kickbacks to his co-conspirators at purported telemedicine companies in exchange for signed doctor’s orders for medically unnecessary orthotic braces that were ultimately billed to Medicare. The case is being prosecuted by Trial Attorney Jessica A. Massey of the Florida Strike Force.
- Lisa Williams, 56, of Lithia, Florida, was charged by indictment with six counts of tampering with a consumer product and six counts of obtaining a controlled substance by fraud in connection with her unlawfully acquiring and tampering with fentanyl infusion bags at a hospital. The case is being prosecuted by Assistant U.S. Attorney Greg Pizzo of the U.S. Attorney’s Office for the Middle District of Florida.
- Lawrence Waldman, 57, of Miami, Florida, was charged by indictment with conspiracy to defraud the United States and to solicit and receive illegal kickbacks and bribes, as well as with illegal monetary transactions, in connection with a scheme to submit false and fraudulent claims to Medicare. As alleged in the indictment, Waldman worked for ASAP Lab, LLC as a sales representative. Waldman used his position with ASAP to travel throughout the State of Florida, and elsewhere, to obtain genetic test and respiratory viral panel test swabs from Medicare beneficiaries. Waldman and his coconspirators used the test swabs, along with requisition forms containing forged and unauthorized signatures of medical practitioners, to obtain approximately $380,000 in illegal kickbacks and bribes for causing the submission of false and fraudulent claims for reimbursement from Medicare. The case is being prosecuted by Assistant U.S. Attorney Tiffany E. Fields of the U.S. Attorney’s Office for the Middle District of Florida.
- Erin Kim, 54, of Orlando, Florida, was charged by indictment with conspiracy to distribute controlled substances and distribution of controlled substances, in connection with her role in an unlawful scheme to distribute Adderall and other stimulants. As alleged in the indictment, Kim was a nurse practitioner employed by Done, a California-based digital health company. In the course of her employment with Done, Kim prescribed Adderall and other stimulants that were not for a legitimate medical purpose in the usual course of professional practice. The indictment further alleges that Kim and others fabricated patient files and signed prescriptions for Adderall and other stimulants where Done patients did not meet the requisite diagnostic criteria for attention-deficit/hyperactivity disorder, where the prescriptions posed a risk of diversion, and where the dosages went beyond what was normally prescribed. In total, Kim is alleged to have prescribed over 1.5 million pills of Adderall and other stimulants, for which she was paid by Done over $800,000. Trial Attorney Raymond Beckering III of the National Rapid Response Strike Force is prosecuting the case.
- Eric Brewer, 28, of Lakeland, Florida, was charged by indictment with tampering with a consumer product and obtaining a controlled substance by fraud in connection with his unlawfully acquiring and tampering with fentanyl infusion bags. As alleged in the indictment, Brewer, a registered nurse who worked in intensive care units, engaged in two similar criminal schemes to divert fentanyl at five different Tampa-area hospitals across seven different dates. In the first scheme, which Brewer executed on several occasions, Brewer stole fentanyl by checking out 100 mL bags of liquid fentanyl from locked controlled substance cabinets but keeping the bags for himself rather than administering them to patients or returning them. In the second scheme, Brewer used hospital computers to research which patients were receiving fentanyl intravenously, entered those patients’ rooms even when he had no medical reason to do so, and surreptitiously siphoned fentanyl from their IV drip bags into his own vessel; Brewer would then go to the hospital bathroom, where he would inject himself with stolen fentanyl. Sometimes, Brewer tried to cover his theft by replacing the fentanyl he withdrew with an equivalent volume of saline, but sometimes he did not. In both scenarios, however, Brewer’s actions deprived the most vulnerable patients of needed medicine. Brewer was caught when colleagues observed him acting impaired during a shift and the person who entered the bathroom immediately after Brewer exited found a bloody paper towel and needle inside. Hospital officials subsequently examined records and video and discovered Brewer’s pattern of diversion. The case is being prosecuted by Assistant U.S. Attorney Mike Gordon of the U.S. Attorney’s Office for the Middle District of Florida.
- Waymon Wallace, 63, of Cincinnati, Ohio, was charged by information with conspiracy to solicit and receive illegal kickbacks and bribes in connection with a scheme to submit false and fraudulent claims to Medicare. Wallace, a licensed physician and an enrolled Medicare provider agreed to sign, and authorize the use of his signature on, laboratory requisition forms for medically unnecessary genetic and respiratory panel tests in exchange for cash. Wallace and his coconspirators caused over $500,000 in false and fraudulent claims for reimbursement to be submitted to Medicare. The case is being prosecuted by Assistant U.S. Attorney Tiffany E. Fields of the U.S. Attorney’s Office for the Middle District of Florida.
A complaint, indictment, or information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Orleans man sentenced to federal prison for Vidor carjackingRead the Press Release
BEAUMONT, Texas – A New Orleans, LA, man has been sentenced to over 12 years in federal prison for a 2022 violent carjacking in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Aubrey Young, 37, pleaded guilty to carjacking and was sentenced to 150 months in federal prison by U.S. District Judge Marcia A. Crone on July 1, 2024.
According to information presented in court, on October 26, 2022, Young approached two people in Vidor asking if they had any work for him. When they said they did not, Young pulled a firearm from his backpack and demanded the keys from the victims. Young then fled in their vehicle. The car was spotted near Anahuac and a high-speed chase ensued. Young was arrested and a firearm was located in the stolen vehicle.
On April 18, 2024, U.S. Attorney Diggs announced the newly formed Carjacking Task Force in the Eastern District of Texas. The U.S. Attorney’s Office, FBI, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), will work alongside state and local law enforcement partners to more effectively address the threat of carjackings in Southeast Texas.
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 Vidor Police Department, the Chambers County Sheriff’s Office, and the Texas Department of Public Safety. This case was prosecuted by Assistant U.S. Attorney Rachel Grove.
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New Orleans Man Sentenced for Being Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that DAVID COULTER, age 34, of New Orleans, was sentenced on June 27, 2024 by U.S. District Judge Wendy B. Vitter to the statutory maximum of 120 months incarceration after he previously pled guilty to being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
Judge Vitter also ordered that COULTER be placed on supervised release for three (3) years following his release from imprisonment and pay a $100 mandatory special assessment fee.
According to court documents, COULTER has a prior conviction for possessing cocaine and multiple convictions for being a felon in possession of a firearm or weapon in Orleans Parish. Due to this criminal history, he is prohibited from having a firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and New Orleans Police Department. Assistant U.S. Attorney Mike Trummel of the Violent Crime Unit prosecuted this matter.
National Health Care Fraud Enforcement Action Results in 193 Defendants Charged and over $2.75 Billion in False ClaimsRead the Press Release
Today, Assistant U.S. Attorney Matthew Yelovich, Deputy Chief of the Criminal Division of the U.S. Attorney’s Office for the Northern District of California, announced criminal charges against four defendants in connection with an alleged scheme to defraud federal health care benefit programs including Medicare and Medicaid. The charges filed in federal court are part of the Department of Justice’s 2024 National Health Care Fraud Enforcement Action. The charges stem from an alleged conspiracy to provide prescriptions for Adderall and other stimulants to customers of an online health care service without a legitimate medical purpose for doing so. According to the several informations and the indictment filed against the defendants, they each had a role in enabling members of an online telehealth company to obtain Adderall and other stimulants from pharmacies by illegitimate means including making false and fraudulent representations to pharmacies, seeking to obstruct efforts by pharmacies to exercise their corresponding responsibility, and causing pharmacies to submit false and fraudulent claims for reimbursement to health care insurance plans.
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
“We allege that each defendant played a role in a scheme to submit fraudulent requests to Medicare and Medicaid to obtain reimbursements for drugs that were improperly prescribed through online services,” said Deputy Chief Yelovich. “Making controlled substances available to persons without a legitimate medical purpose is drug dealing and knowingly facilitating bogus reimbursements from federal programs is fraud. This office will vigorously prosecute both.”
The charges announced today by Deputy Chief Yelovich are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets.
The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District to Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of New Jersey, Eastern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Eastern District of Tennessee, Middle District of Tennessee, Eastern District of Texas, Northern District of Texas, Southern District of Texas, Eastern District of Virginia, Western District of Virginia, Southern District of West Virginia, and Eastern District of Wisconsin; and State Attorney Generals’ Offices for Arizona, California, Illinois, Indiana, Louisiana, New York, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The Northern District of California, in particular, worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: Drug Enforcement Administration, Homeland Security Investigations, the U.S. Department of Health and Human Services Office of Inspector General, and IRS Criminal Investigation.
The following individuals are charged in the Northern District of California:
• Riley Levy, 30, of Peoria, Arizona, was charged by information with conspiracy to distribute controlled substances in connection with his role in an unlawful scheme to distribute Adderall and other stimulants. As alleged in the information, in the course and scope of his work for Done Health, P.C. and Done Global Inc. (“Done”), Levy, Done’s Executive Leader, Operations and Strategy, conspired to distribute Adderall and other stimulants by means of the Internet that were not for a legitimate medical purpose in the usual course of professional practice. Health Care Fraud Unit Principal Assistant Deputy Chief Jacob Foster, Trial Attorney Raymond Beckering III of the National Rapid Response Strike Force, and Assistant U.S. Attorneys Kristina Green and Katherine Lloyd-Lovett of the U.S. Attorney’s Office for the Northern District of California are prosecuting the case.
• Christopher Lucchese, 58, of Plano, Texas, was charged by information with conspiracy to defraud the United States and distribute controlled substances in connection with his role in an unlawful scheme to distribute Adderall and other stimulants. As alleged in the information, in the course and scope of his work for Done Health, P.C. and Done Global Inc., Lucchese, a medical doctor, issued prescriptions for Adderall and other stimulants that were not for a legitimate medical purpose in the usual course of professional practice. Health Care Fraud Unit Principal Assistant Chief Jacob Foster, Trial Attorney Raymond Beckering III of the National Rapid Response Strike Force, and Assistant U.S. Attorneys Kristina Green and Katherine Lloyd-Lovett of the U.S. Attorney’s Office for the Northern District of California are prosecuting the case.
• Yina Cruz, 37, of Glenwood, New Jersey, was charged by information with conspiracy to defraud the United States and distribute controlled substances in connection with her role in an unlawful scheme to distribute Adderall and other stimulants. As alleged in the information, in the course and scope of her work for Done Health, P.C. and Done Global Inc., Cruz, a nurse practitioner, issued prescriptions for Adderall and other stimulants, including to Medicare and Medicaid beneficiaries, that were not for a legitimate medical purpose in the usual course of professional practice. Health Care Fraud Unit Principal Assistant Chief Jacob Foster, Trial Attorney Raymond Beckering III of the National Rapid Response Strike Force, and Assistant U.S. Attorneys Kristina Green and Katherine Lloyd-Lovett of the U.S. Attorney’s Office for the Northern District of California are prosecuting the case.
• Katrina Pratcher, 70, of Altadena, California, was charged by information with conspiracy to defraud the United States and distribute controlled substances in connection with her role in an unlawful scheme to distribute Adderall and other stimulants. As alleged, in the course and scope of her work for Done Health, P.C. and Done Global Inc., Pratcher, a nurse practitioner, issued prescriptions for Adderall and other stimulants, including to Medicare and Medicaid beneficiaries, that were not for a legitimate medical purpose in the usual course of professional practice. Health Care Fraud Unit Principal Assistant Chief Jacob Foster, Trial Attorney Raymond Beckering III of the National Rapid Response Strike Force, and Assistant U.S. Attorneys Kristina Green and Katherine Lloyd-Lovett of the U.S. Attorney’s Office for the Northern District of California are prosecuting the case.A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Multiple Orleans Parish Residents Indicted for Violating the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that on June 27, 2024 a ten-count indictment charging the following Orleans Parish residents:
- WILBERT SMITH, (“SMITH”), age 44
- DAVID KELLUP, (“D. KELLUP”), age 44
- IVAN KELLUP, (“I. KELLUP”), age 41
- VINCENT HENDERSON, (“HENDERSON”), age 50
- ELI MATHINS, (“MATHINS”), age 36
- DEONTAE DORSEY, (“DORSEY”), age 43
- RONALD KELLUP, (“R. KELLUP”), age 76
SMITH, D. KELLUP, I. KELLUP, HENDERSON, MATHINS, and DORSEY were indicted in Count 1 of the indictment, charging them with Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), 841(b)(1)(C), and 846. If convicted of Count 1, they face a minimum of 10 years and up to life imprisonment, up to a $10,000,000 fine, and at least 5 years of supervised release following imprisonment.
SMITH and D. KELLUP were indicted in Count 2 of the indictment, charging them with Possession with intent to distribute over 40 grams of fentanyl and a quantity of cocaine and heroin, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), and § 841(b)(1)(C). If convicted of Count 2, they face a minimum of 5 years and up to 40 years imprisonment, up to a $5,000,000 fine, and at least 4 years of supervised release following imprisonment.
HENDERSON was indicted in Count 3 of the indictment, charging him with Possession with Intent to Distribute a quantity of fentanyl and cocaine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C). If convicted of Count 3, HENDERSON faces up to twenty years imprisonment, up to a $1,000,000 fine, and at least 3 years of supervised release following imprisonment.
HENDERSON was also indicted in Count 4 along with SMITH, D. KELLUP, I. KELLUP, MATHINS, and DORSEY for possessing firearms in furtherance of these drug trafficking crimes, in violation of 18 U.S.C. § 924(c)(1). A conviction on Count 4 carries a mandatory minimum sentence of 5 years up to life imprisonment, up to a $250,000 fine, and up to 5 years of supervised release following imprisonment. Any sentence on Count 4 must run consecutive to any other sentence.
D. KELLUP, SMITH, and MATHINS were also indicted in Counts 5, 6, and 7, respectively, for possessing firearms as convicted felons, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(8). They face up to 15 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release following imprisonment. All eight individuals were indicted in Count 8 for maintaining a drug-involved premises, in violation of 21 U.S.C. § 856(a) and 18 U.S.C. § 2. Count 8 carries up to 20 years imprisonment, up to a $500,000 fine, and at least 3 years of supervised release following imprisonment. All eight counts also carry a $100 mandatory special assessment fee.
According to the indictment, beginning on a time unknown but continuing until at least May 8, 2024, these seven individuals maintained three residences in the Algiers neighborhood of New Orleans for the purpose of packaging and distributing narcotics, including fentanyl, cocaine, and heroin. Several of the individuals furthered their drug trafficking conspiracy by possessing firearms, which they are prohibited from doing under federal law and also due to their prior felony convictions.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of a defendant must be proven beyond a reasonable doubt.
United States Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, the Federal Bureau of Investigation, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
Monroe County Man Sentenced to 147 Months’ Imprisonment for Drug Trafficking and Firearms ViolationsRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that James Williams, III, aka “Dilly,” age 45, of East Stroudsburg, Pennsylvania, was sentenced on June 26, 2024, to 147 months in prison by U.S. District Court Judge Robert D. Mariani, for drug trafficking and firearms charges.
On April 20, 2023, following a jury trial, Williams was convicted of two counts of distribution and possession with intent to distribute cocaine within 1,000 feet of a school, possession with intent to distribute over 500 grams of cocaine, possession of a firearm in furtherance of drug trafficking, felon in possession of a firearm, and possession or a stolen firearm.
According to United States Attorney Gerard M. Karam, on March 29, 2018, and April 18, 2018, law enforcement made two controlled purchases of cocaine from Williams in a commercial parking lot adjacent to Stroudsburg High School property. On May 3, 2018, law enforcement executed a search warrant at Williams’s residence and recovered multiple firearms, over 600 grams of cocaine, drug packing materials and over $21,000 in U.S. currency.
The case was investigated by the Federal Bureau of Investigation, Stroud Area Regional Police Department, and the Monroe County District Attorney’s Office. Assistant U.S. Attorneys Jenny P. Roberts and Sean A. Camoni 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.
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Mexican National Indicted for Making False Statements in Passport ApplicationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on June 27, 2024, DARVELIO ALVARO (“ALVARO”), age 24, a citizen of Mexico, was indicted for making false statements in an application for a United States passport in violation of 18 U.S.C. § 1542.
According to court documents, on or about July 2, 2023, ALVARO provided a false name and social security number and falsely claimed he was born in Puerto Rico, to apply for a United States passport.
If convicted, ALVARO faces up to 10 years imprisonment, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Department of State, Diplomatic Security Service. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Massachusetts Man Pleads Guilty to Stealing over $30,000 in Postage Stamps Using Fraudulent ChecksRead the Press Release
SYRACUSE, NEW YORK – William Soto, age 32, of Springfield, Massachusetts, pled guilty today to a federal indictment charging him with twelve counts of theft of government property, United States Attorney Carla B. Freedman and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS) announced.
During the plea, Soto admitted that, on twelve separate occasions, he used fraudulent checks to purchase more than $30,000 worth of United States Postal Service postage stamps over the course of two days in Oneida County, Oswego County, and Onondaga County in August 2023. In one instance, he bought $9,438.00 in stamps from a post office in Oswego County using a fake check.
Sentencing is scheduled for October 29, 2024. Soto faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The USPIS is investigating the case with the help of the City of Fulton Police Department and Special Assistant U.S. Attorney Paul Tuck is prosecuting the case.
Massachusetts Man Pleads Guilty to Stealing Funds Intended to Help At-Risk VeteransRead the Press Release
CONCORD – A Massachusetts man pleaded guilty today in federal court to defrauding a nonprofit health care provider to obtain funds designated for reducing suicide rates among veterans, U.S. Attorney Jane E. Young announces.
David Duren, a/k/a Dawud Hakiem Duren, 48, pleaded guilty to wire fraud. U.S. District Court Judge Joseph N. Laplante scheduled sentencing for October 10, 2024.
Duren was a program manager for a nonprofit health care provider in Nashua, New Hampshire. He was in charge of overseeing a program funded by a $750,000 Staff Sergeant Fox Suicide Prevention Grant. The grant was awarded by the United States Department of Veterans Affairs to provide treatment and services to veterans at risk of suicide. At Duren’s recommendation, the health care provider hired a company called “E3 Foundation” to provide services funded by the Staff Sergeant Fox grant. E3 Foundation was in turn purportedly led by a “Dr. Michael Rapp.” However, unbeknownst to the health care provider, Duren controlled E3 Foundation and was pretending to be “Dr. Michael Rapp” on emails and calls.
Duren was able to fraudulently obtain almost $50,000 in Staff Sergeant Fox program funds and tried to obtain an additional $25,000 before being discovered. He used a website called “Invoice Generator” to create fake invoices. Duren and E3 Foundation also did not provide the services and products that he billed for.
The charge of wire fraud provides for a sentence of up to 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Department of Veterans Affairs’ Office of the Inspector General and Federal Bureau of Investigation led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
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Major Drug Dealer Found Guilty of Multiple Drug and Weapons OffensesRead the Press Release
BAY CITY – Ricardo Delgado, II, the leader of a large-scale drug conspiracy operating in the Saginaw-Bay area, was convicted by a federal jury of multiple drug and weapons offenses, including drug conspiracy and possession with to intent to distribute kilogram quantities of cocaine and fentanyl, possession of multiple machineguns, and for being a felon in possession of a firearm, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan.
Following a week-long trial, the jury convicted Delgado, 51, of conspiracy to possess with intent to distribute and to distribute at least five kilograms of cocaine; possession with intent to distribute at least five kilograms of cocaine; possession with intent to distribute at least 400 grams of fentanyl; possession of a machinegun in furtherance of a drug trafficking crime; possession of a firearm in furtherance of a drug trafficking crime; possession of a machinegun; felon in possession of a firearm; possession of an unregistered silencer; and, use of communication facility to commit a drug offense.
Evidence at trial established that Delgado was involved in a wide-ranging drug conspiracy that involved the importation of numerous kilograms of cocaine and fentanyl from Mexico for distribution in the Saginaw-Bay area. During the course of the investigation, FBI agents learned from a court-authorized wiretap that Delgado was seeking retaliation for the theft of his drugs from a subordinate and that he ordered that subordinate to exact revenge. However, this plan was thwarted by authorities. In addition, following Delgado’s arrest, law enforcement officers seized 13 kilograms of cocaine, 2 kilograms of fentanyl, 12 firearms, including two machineguns, two silencers, and over $200,000 in cash from Delgado’s residence.
“The collaboration between federal and local law enforcement partners demonstrated in this case speaks to our overall commitment to rid our community of dangerous drugs and violent offenders,” stated United States Attorney Ison.
“Mr. Delgado’s conviction today emphasizes the FBI’s unwavering commitment to pursuing dangerous drug traffickers to stop further harm to our communities,” stated Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The death toll associated with illegal drugs and the fentanyl epidemic continues to rise. We are resolute in our determination to collaborate with our law enforcement partners to address this critical issue and collectively ensure those who contribute to the drug poisoning crisis while trafficking illegal firearms in our communities are brought to justice.”
Delgado faces a mandatory minimum sentence of 55 years and a maximum of life in prison when he is sentenced by United States District Judge Thomas L. Ludginton.
This investigation was conducted by special agents of the FBI Detroit Division (Bay City Office), the Bay Area Narcotics Enforcement Team (BAYANET), the Bureau of Alcohol, Tobacco, Firearms & Explosive (ATF), and law enforcement officials from Michigan State Police, Midland Police Department, Saginaw Police Department, Saginaw Township Police Department, Bridgeport Police Department, and the Strike Team Investigative Narcotics Group (STING).
The case was prosecuted by Assistant U.S. Attorneys Tim Turkelson and William Orr.
Madera County Man Sentenced to 10 Years in Prison for Supplying Fentanyl that Caused Death to a Person Under 21 Years of AgeRead the Press Release
FRESNO, Calif. — Yovany Ramirez, 29, of Madera, was sentenced today by U.S. District Judge Jennifer L. Thurston to 10 years in prison for distribution of fentanyl to a person under age 21, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 13, 2021, Ramirez distributed the fentanyl pills that caused the death of D.D., a 19-year-old Madera man. D.D. suffered a fatal overdose just hours later. Upon further investigation, law enforcement recovered additional evidence that Ramirez was dealing drugs and firearms.
This case was the product of an investigation by Homeland Security Investigations and the Madera Police Department. Assistant U.S. Attorney Antonio J. Pataca prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Lincoln County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Jeffrey R. Lambert, 63, of Ranger, pleaded guilty today to possession with intent to distribute 5 grams or more of methamphetamine and a quantity of fentanyl.
According to court documents and statements made in court, on August 2, 2022, law enforcement officers executed a search warrant at Lambert’s residence and found approximately 186 grams of methamphetamine, approximately 57 grams of fentanyl and fentanyl analogues, several firearms, and $4,402. Lambert admitted that he possessed and intended to distribute the seized controlled substances.
Lambert further admitted to selling a total of approximately 70 grams of methamphetamine on four occasions between July 25, 2022 and August 1, 2022, each time to a confidential informant in the Ranger area of Lincoln County.
Lambert is scheduled to be sentenced on October 2, 2024, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the U.S. Route 119 Drug Task Force, which consists of members of the Mingo County Sheriff's Office, the Logan County Sheriff's Office, the Boone County Sheriff's Office, and the West Virginia State Police.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-14.
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Lexington Man Sentenced for Armed Drug TraffickingRead the Press Release
FRANKFORT, Ky. – A Lexington, Ky., man, Chris Williams, 29, was sentenced on Monday, by U.S. District Judge Gregory Van Tatenhove, to 200 months, for possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute 10 grams or more of a fentanyl analogue, distribution of fentanyl, and two counts of possession of a firearm in furtherance of drug trafficking.
In August 2022, detectives with the Kentucky State Police received information that Chris Williams was distributing large quantities of fentanyl. During a month-long investigation, KSP purchased approximately 74 grams of fentanyl from Williams. In September 2022, detectives seized a loaded firearm, approximately 76 grams of fentanyl, and approximately 20 grams of pressed fentanyl analogue pills from Williams. Williams admitted he possessed the firearm in furtherance of his drug trafficking.
Then, in August 2023, detectives with the Lexington Police received information that Williams was again distributing narcotics. In September 2023, following a second investigation, a search warrant was executed at Williams’ residence. There, detectives located approximately 60 grams of fentanyl and two firearms. Williams again admitted he possessed the firearms in furtherance of drug trafficking.
Under federal law, Williams must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for four years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge of the DEA Louisville Field Division; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by DEA, KSP, and Lexington Police Department. Assistant U.S. Attorney Cynthia Rieker prosecuted the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Lackawanna County Man Sentenced to 151 Months of Imprisonment for Drug TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Emmanuel Batista, age 32, of Scranton, Pennsylvania, was sentenced on July 1, 2024, to 151 months in prison by U.S. District Court Judge Malachy E Mannion, for drug trafficking charges.
According to United States Attorney Gerard M. Karam, Batista owned and operated DMB Dumpster and Construction Company, located in Scranton, Pennsylvania. Between November 2022 and January 2023, Batista used this company as a front for his drug distribution. Law enforcement made multiple controlled purchases of fentanyl from a subordinate drug dealer working for Batista. Batista also made large amounts of methamphetamine available for purchase during this time. Batista used a vacant property that he was allegedly remodeling as a stash house for his drugs. He also would pay some of his employees in drugs. In a three-month period, Batista was responsible for distributing over 400 grams of fentanyl.
The case was investigated by Homeland Security Investigations, and the Pennsylvania Office of Attorney General, Bureau of Narcotics Investigations. Assistant U.S. Attorney Jenny P. Roberts and Senior Deputy Attorney General Michelle Hardik 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.
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KC Business Owner Pleads Guilty to Wiring Drug-Trafficking Profits to MexicoRead the Press Release
KANSAS CITY, Mo. – The owner of an Olathe, Kansas, business pleaded guilty in federal court today to her role in a money-laundering conspiracy to transfer the proceeds of heroin and methamphetamine trafficking to Mexico. A Kansas City, Mo., woman also pleaded guilty to her role in the drug-trafficking conspiracy.
Ana Lilia Leal-Martinez, 48, a citizen of Mexico residing in Overland Park, pleaded guilty before U.S. Chief District Judge Beth Phillips to participating in a conspiracy to commit money laundering from May 23, 2020, to Sept. 20, 2022.
Leal-Martinez is the owner of Imagen Leal in Olathe, Kan., which offers money transfer services. By pleading guilty today, Leal-Martinez admitted that she accepted drug proceeds from co-conspirators, including Jose Jesus Sanchez-Mendez, also known as “Michoacano,” 41, a Mexican national. Those drug proceeds were then sent by wire transfer to individuals in Michoacan, Mexico.
Between Jan. 1, 2022, and June 8, 2022, Leal-Martinez sent wires totaling $83,850 to Mexico from her business in furtherance of the money-laundering conspiracy. These transfers were structured and sent under assumed names in order to avoid suspicion and detection.
Leal-Martinez, one of 44 defendants indicted in this case, was identified in 2022 after Homeland Security Investigations initiated the investigation of a drug-trafficking organization that distributed more than 335 kilograms of methamphetamine, 22 kilograms of heroin, cocaine, and fentanyl, among other drugs, sourced from Mexico in the Kansas City area. Investigators identified numerous bulk cash smugglers and drug traffickers working for the drug-trafficking organization as part of the $4.7 million conspiracy.
Co-defendant Flor Gonzalez-Celestine, 54, of Kansas City, Mo., also pleaded guilty today to participating in a $4.7 million conspiracy to distribute methamphetamine and heroin from Feb. 28, 2020, to Sept. 20, 2022. Gonzalez-Celestine participated in four controlled drug buys that were monitored by law enforcement. She sold more than a kilogram of methamphetamine to a confidential informant and was observed in possession of approximately 2.2 additional kilograms of methamphetamine.
Sanchez-Mendez has pleaded guilty to his role in a continuing criminal enterprise, to his role in the drug-trafficking and money-laundering conspiracies, and to illegally reentering the United States. A sentencing hearing has not yet been scheduled.
Under federal statutes, Leal-Martinez is subject to a sentence of up to 20 years in federal prison without parole. Gonzalez-Celestine is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Megan A. Baker. It was investigated by Homeland Security Investigations, U.S. Customs and Border Protection, the Drug Enforcement Administration, the Jackson County Drug Task Force, IRS-Criminal Investigation, the Kansas Bureau of Investigation, the Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department, the Missouri State Highway Patrol, the Kansas Highway Patrol, the Independence, Mo., Police Department, the Minnesota Bureau of Criminal Apprehension, the Minnesota State Patrol, the Olmsted County, Minn., Sheriff’s Office, the Texas Department of Public Safety, the FBI, the Clay County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Justin Gebo Sentenced to Federal Prison for Firearms OffensesRead the Press Release
CONCORD – A former Belmont man was sentenced today in federal court in connection with his possession of firearms as a prohibited person, U.S. Attorney Jane E. Young announces.
Justin Gebo, 29, was sentenced by U.S. District Court Judge Paul P. Barbadoro to 33 months in federal prison and three years of supervised release on two counts of being a prohibited person in possession of a firearm, including being in possession of a firearm while under indictment and being a felon in possession of a firearm.
“This case makes clear why felons cannot be trusted to possess firearms,” said U.S. Attorney Young. “The defendant’s unlawful receipt of the CZ Scorpion during a time he was under felony indictment was the beginning of that firearm’s path to the hands of a convicted felony where it was used to commit heinous crimes. The sentence imposed by the Court makes clear the significant consequences for those prohibited persons who possess guns.”
According to the charging documents, on or about January 1, 2023, Gebo was in receipt of a Ceska Zrojovka (“CZ”) model Scorpion EVO 3, S2, 9x19mm short-barreled rifle, with an attached armbrace, while he was under felony indictment for a crime punishable by imprisonment for a term exceeding one year. That firearm was later recovered during a homicide investigation on June 3, 2023, in Franklin, New Hampshire. In addition, on or about February 3, 2023, Gebo was in possession of a 17 Design and Manufacturing, model 17DM-15, multicaliber rifle, after he had been convicted of a crime punishable by imprisonment for a term exceeding one year.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives led the investigation. Valuable assistance was provided by the New Hampshire State Police and the Laconia Police Department. Assistant U.S. Attorney Geoffrey W.R. Ward is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Justice Department Secures Settlement in Discrimination Lawsuit for Blocking Affordable Housing Development in LouisianaRead the Press Release
The Justice Department announced today that the Town of Franklinton (Franklinton), Louisiana, has agreed to pay $230,000 in damages and civil penalties to settle allegations that it violated the Fair Housing Act when it blocked a proposed affordable housing development for low-income tenants in a predominantly white part of Franklinton.
Under the agreement, Franklinton will also facilitate the development of new affordable housing to replace the units that it previously blocked, amend its zoning ordinance to increase the amount of land available for the development of multi-family housing and create a land donation program to support the development of affordable housing.
“Developing affordable housing in high opportunity neighborhoods can have a transformative impact on the livelihoods of low-income residents of all races,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Fair Housing Act prohibits cities and towns from blocking low-income housing development because they believe that Black people will make up a large share of the future residents. Officials must ensure that affordable housing opportunities are made available and that all families have access to them regardless of race. The Justice Department will continue to hold jurisdictions accountable when they abuse their zoning power to deny equal access to housing opportunity.”
“Access to affordable housing free from discrimination is a right bestowed upon all Americans,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Denying affordable housing development for low-income individuals delays full achievement of the American Dream. The successful resolution of this Fair Housing Act matter provides low-income residents with the resources needed to achieve generational success.”
The complaint, filed on June 27, alleges that Franklinton discriminated because of race and color when it refused to approve zoning for a 40-unit development called Quail Run that would have been financed through the federal Low Income Housing Tax Credit (LIHTC), a tax incentive that subsidizes the construction and rehabilitation of rental housing affordable to low-income tenants. Franklinton is highly segregated, and although approximately 48% of its population is Black, that population is concentrated in the town’s north side. Quail Run would have been built on the south side, in a neighborhood that is over 80% white. Over 80% of Black households in Franklinton qualify as low-income and Black residents would have been significantly more likely than white residents to qualify to live in Quail Run. The construction of Quail Run would have disproportionately provided much needed housing opportunities to Black families in the part of Franklinton where the residents are predominantly white.
As alleged in the complaint, Franklinton’s Zoning Commission unanimously recommended that Franklinton grant zoning approval for the development of Quail Run. However, the Mayor refused to consider the Zoning Commission’s recommendation and the town later denied Quail Run’s zoning application without the City Council ever holding a vote on the matter. As a result of Franklinton’s action, the developers had to return the tax credits and were not able to develop housing and the land remained vacant. The developers filed a complaint with the Department of Housing and Urban Development (HUD), which later referred the matter to the Justice Department.
“Low-income residents should have equal access to affordable housing in well resourced, low poverty neighborhoods,” said Principal Deputy Assistant Secretary Diane Shelley of HUD’s Office for Fair Housing and Equal Opportunity. “Jurisdictions that deny the development of affordable housing in neighborhoods for fear that future residents will be a certain race perpetuate segregation and violate the Fair Housing Act, which remains as important today as it was in 1968. HUD is proud to work with the Justice Department to root out illegal discrimination and uphold civil rights law.”
Under the settlement, which was approved on Friday June 28 by the U.S. District Court for the Eastern District of Louisiana, Franklinton will, among other things:
- pay $205,000 in damages to Quail Run’s developers and $25,000 in a civil penalty to the United States;
- approve and support the development of at least 40 units of affordable housing to replace the number of units that would have been included in the Quail Run development;
- rezone at least 20 acres of available land to make it available for the development of affordable housing;
- create a land donation program to support the development of affordable housing;
- revise its zoning procedures to increase transparency and ensure that uniform non-discriminatory standards are applied in Franklinton’s residential land use decisions;
- provide training on fair housing and zoning procedures to its officials and employees who are involved in land use and zoning; and
- hold a public listening session on the town’s need for housing and host an educational program for Franklinton’s residents to learn about their fair housing rights.
Individuals who believe they have been victims of housing discrimination practices can file a complaint with HUD or a lawsuit in federal or state court. Individuals must file their complaint with HUD within one year of a housing discrimination incident or file a lawsuit in federal or state court within two years of an incident. To report discrimination in land use or zoning decisions, individuals may also contact Civil Rights Division’s Housing and Civil Enforcement Section at (833) 591-0291 or report a violation of civil rights online at www.civilrights.justice.gov/.
The department recently filed three Statements of Interest in land use and zoning cases alleging discrimination on the basis of race. More information about the application of the Fair Housing Act to state and local land use and zoning decisions can be found in the Justice Department and HUD’s Joint Statement. For more information about housing discrimination laws call (202) 514-4713 or visit the Justice Department website at www.justice.gov/crt/housing-and-civil-enforcement-section.
Johnstown Man Pleads Guilty to Possessing Methamphetamine and Cocaine with Intent to DistributeRead the Press Release
ALBANY, NEW YORK – Leon “Sam” Ostrander, age 50, of Johnstown, New York, pled guilty today to possessing with intent to distribute methamphetamine and cocaine.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Ostrander admitted that on January 17, 2024, he possessed over 400 grams of actual methamphetamine and 1.2 kilograms of cocaine seized by law enforcement during a search warrant executed at Ostrander’s home. Ostrander further admitted that he possessed the substances with the intent to sell them.
Ostrander will be sentenced on October 25, 2024 by United States District Judge Anne M. Nardacci. Ostrander faces at least 10 years and up to life in prison, a fine of up to $10 million, and a term of post-release supervision of between 5 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The DEA and the Johnstown Police Department investigated the case. Assistant U.S. Attorney Mikayla Espinosa is prosecuting the case.
Jefferson County man sentenced for COVID-Relief fraudRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced for federal violations related to a COVID-relief fraud scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Acheon King Aleidron, formerly known as Cameron Alexander, 35, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 57 months in federal prison by U.S. District Judge Marcia A. Crone on July 1, 2024. Aleidron was also ordered to pay $415,900.00 in restitution.
According to court documents, Aleidron used a Beaumont address for a business named The Fishing Factor, LLC to fraudulently obtain $415,000 under the Disaster Relief and Emergency Assistance Act for COVID-19 pandemic relief. Aleidron filed numerous fraudulent loan applications and received the funds which were intended to cover payroll, fixed debts, utilities, rent/mortgage, accounts payable and other bills incurred by qualifying businesses during and resulting from the COVID-19 pandemic. Aleidron opened five bank accounts with four different banks in in order to receive funds from the scheme. The government was able to seize $186,413.78 from Aleidron’s various bank accounts, which will be forfeited to pay back a portion of the loss.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses. In April 2020, Congress authorized over $300 billion in additional funding.
The Economic Injury Disaster Loan Program (“EIDL”) was a COVID-19 pandemic relief program administered by the SBA that provided loans to small businesses for job retention and certain other expenses. EIDL loans were intended to cover payroll, fixed debts, utilities, rent/mortgage, accounts payable and other bills incurred by qualifying businesses during, and resulting from, the COVID-19 pandemic. EIDL loans are processed outside the State of Texas. According to the SBA website (www.sba.gov), the stated purpose of an EIDL loan is “[t]o meet financial obligations and operating expenses that could have been met had the disaster not occurred.” EIDL loans are low interest loans and are not forgivable.
To obtain an EIDL loan, a qualifying business had to submit an EIDL loan application, which was signed by an authorized representative of the business. The EIDL loan application required the business (through its authorized representative) to acknowledge the program rules and make certain affirmative certifications to be eligible to obtain the EIDL loan, including that the business was in operation and needed the funds for working capital to alleviate economic injury caused by disaster occurring in the month of January 31, 2020, and continuing thereafter. For a business to be eligible for an EIDL loan, the business must have been in operation before February 1, 2020.
EIDL applications were submitted directly to the SBA and processed by the agency with support from a government contractor, Rapid Finance. EIDL loan applications were received by SBA servers located in Virginia, Iowa, or Washington. Once approved, the individual or business received the EIDL loan proceeds via an electronic funds transfer to a financial account under the control of the business.
The amount of the loan, if the application were approved, was determined based on the information provided by the applicant about employment, revenue, and cost of goods, as described above. Any funds issued under an EIDL advance were issued directly by the SBA. EIDL funds could be used for payroll expenses, sick leave, production costs, and business obligations, such as debts, rent, and mortgage payments.
This case was investigated by the SBA Office of Inspector General and prosecuted by Assistant U.S. Attorney Reynaldo P. Morin.
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Indianapolis Man Found Guilty of Masterminding Four Online Marketplace Armed Robberies, One of Which Resulted in DeathRead the Press Release
INDIANAPOLIS- A federal jury has convicted Demetris Campbell, 29, Indianapolis, of conspiracy to interfere with commerce by robbery, four counts of aiding the interference with commerce by robbery, and three counts of aiding the brandishing of a firearm in furtherance of a crime of violence, following a three-day trial.
According to court documents and evidence introduced at trial, between July 19 and July 28 of 2020, Campbell orchestrated at least four armed robberies of victims whom Campbell lured to an apartment complex under the false premise that they could purchase items via the online marketplaces LetGo and OfferUp.
In the first robbery, Victims C.D., a fifteen-year-old boy, and R.G., his father, communicated with Campbell, who was using the account “Man with a Plan” (MWTP) on Offer Up, with the intent to purchase an iPhone 11. Campbell provided the victims with a prechosen Indianapolis address to which he lured them to complete the fake transaction. Campbell also provided victims with a phone number that he could be reached at for further communication. The parties agreed on a price for the iPhone. Upon the victims’ arrival, three males, including Campbell’s co-conspirator, Angel Montano, approached the vehicle, showing what appeared to be the iPhone 11. The three robbers then brandished pistols and demanded the victims’ money.
In that robbery, the fifteen-year-old victim was struck in the face with a pistol. The robbers ultimately stole loose cash from the victims’ wallets as well as Nike Air Jordan tennis shoes the child was wearing.
In the second robbery, Campbell used the same Offer Up account to lure a mother and her two young children to the same apartment complex. Once there, his coconspirator, Angel Montano, reached into her vehicle and placed the muzzle of a pistol against her thigh, while her two juvenile children were in the car. He then stole the victims’ iPhones and cash.
In the third robbery, which occurred on July 22, 2020, Campbell used the LetGo “Simone” to lure a woman to the same apartment complex under the false premise that she was going to be able to purchase an iPhone 11. Upon her arrival, Angel Montano brandished a pistol and stated “I’ll shoot you! Give me the cash!” She complied by giving him $560 in cash that she had brought for the transaction, as well as her Samsung cell phone.
Between July 21 and 28 of 2020, Victim D.I. participated in ongoing contact with Campbell who was using the “Tony Reed” account on OfferUp regarding the advertised sale of two iPhone 11 Pro Maxes for $1400. They ultimately arranged to meet on July 28 at a location near Adams and 21 Street in Indianapolis. Victim D.I. brought his brother, E.I. Upon their arrival, the brothers felt uneasy and attempted to leave. Angel Montano then blocked them with his car, approached their vehicle, and fired into it killing E.I. and seriously wounding D.I.
The following morning, on July 29, 2020, IMPD officers arrested Campbell after tracing his name and location to the fake usernames used in the robberies. It was later discovered that Campbell was coordinating the schemes with Angel Montano, then selling the stolen phones and splitting the profit.
In February of 2023, Montano was sentenced to 40 years in federal prison after pleading guilty to two counts of interference with commerce by robbery and one count of brandishing a firearm in furtherance of a crime of violence.
The Federal Bureau of Investigation, U.S. Marshals Service, and IMPD investigated this case. Chief U.S. District Judge Tanya Walton Pratt presided over the trial and will sentence Campbell at a later date.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Tiffany J. Preston and Carolyn A. Haney, who prosecuted this case.
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Home Health Providers to Pay $4.5M to Resolve Alleged False Claims Act Liability for Providing Kickbacks to Assisted Living Facilities and DoctorsRead the Press Release
Guardian Health Care Inc., Gem City Home Care LLC and Care Connection of Cincinnati LLC, home health agencies operating in Texas, Ohio and Indiana, along with their owner Evolution Health LLC (together, the Companies), have agreed to pay $4,496,330 to resolve allegations that they violated the False Claims Act by knowingly providing illegal kickbacks to assisted living facilities and physicians in exchange for Medicare referrals.
This settlement resolves allegations that, from 2013 to 2022, Guardian Health Care, Gem City Home Care and Care Connection of Cincinnati provided lease payments and other valuable benefits, including wellness health services, sports tickets and meals, to numerous assisted living facilities and their residents, as well as certain health care providers, in exchange for referrals of Medicare beneficiaries. The home health agencies then billed Medicare for the home health services they provided to the referred patients.
The Anti-Kickback Statute prohibits the provision of remuneration with the intent to induce referrals of government health care program business. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives. Claims that are knowingly submitted in violation of the Anti-Kickback Statute are ineligible for payment and can violate the False Claims Act.
“It is imperative to ensure that improper financial incentives play no role in decisions regarding patient care,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s resolution demonstrates the department’s commitment to protecting the integrity of federal health care programs and the medical treatment received by their beneficiaries.”
The Companies received credit under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases. Among other actions, the Companies disclosed the conduct to the government, identified the individuals involved and assisted in the determination of losses caused to Medicare.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Trial Attorney Elizabeth A. Strawn of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Brandi Stewart for the Southern District of Ohio handled the matter.
The claims resolved by the settlement are allegations only. And there has been no determination of liability.
SettlementHeart Butte man admits stabbing employee in Glacier Peaks Casino and Hotel on Blackfeet Indian ReservationRead the Press Release
UPDATED to correct name of business as Glacier Peaks Casino and Hotel
GREAT FALLS — A Heart Butte man accused of stabbing an employee of the Glacier Peaks Casino and Hotel while in the business admitted to an assault charge today, U.S. Attorney Jesse Laslovich said.
The defendant, Kal William Runningcrane, 27, pleaded guilty to assault with a dangerous weapon. Runningcrane faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Nov. 7. Runningcrane’s release was continued pending further proceedings.
The government alleged in court documents that in the early morning hours of Feb. 25, Runningcrane stabbed a Glacier Peaks employee, identified as John Doe, with a knife. Runningcrane had been drinking for several hours with family and friends to celebrate his birthday. The group was listening to live music, and Doe was sitting alone at an adjacent table. Without provocation, Runningcrane walked to Doe’s table, approached from the side and stabbed Doe in the neck. Doe tried to stand and fight back, and Runningcrane stabbed him in the abdomen. Doe grabbed Runningcrane’s wrist, trying to disarm him, and was able to get away. The knife fell to the ground. Runningcrane left the scene and was arrested later that night miles from Browning, on the Blackfeet Indian Reservation, where the casino is located. Doe was rushed to the hospital and then life-flighted to Great Falls for treatment of wounds.
The U.S. Attorney’s Office is prosecuting the case. The FBI, Blackfeet Law Enforcement Services and Pondera County Sheriff’s Office conducted the investigation.
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Gulfport Man Pleads Guilty to Brandishing a Firearm at Postal CarrierRead the Press Release
Gulfport, Miss. -- A Gulfport man pled guilty to brandishing a firearm in furtherance of a crime of violence.
According to court documents, Rusty Holloway, 42, brandished a firearm on October 20, 2022, at a U.S. Postal employee mail carrier when she was delivering mail to a residence in Gulfport.
Holloway is scheduled to be sentenced on October 17, 2024, and faces a minimum penalty of seven years in prison and a maximum of life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Inspector in Charge Scott Pierce of the U.S. Postal Service Office of Inspector General, Southern Area Field Office, made the announcement.
The United States Postal Inspection Service is investigating the case.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
Georgia Man Pleads Guilty to Bank Fraud, Passport Fraud, and Aggravated Identity TheftRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Gary Dale Thrasher (56, Georgia) has pleaded guilty to five counts of bank fraud, three counts of passport fraud, and seven counts of aggravated identity theft. Thrasher faces a maximum penalty of 30 years in federal prison on each of the bank fraud counts; a maximum of 10 years’ imprisonment for each of the passport fraud offenses; and a 2-year minimum mandatory term of imprisonment for the aggravated identity thefts. Thrasher was indicted on March 27, 2024.
According to the plea agreement, between May and June 2023, Thrasher obtained and used, or attempted to use, fraudulent identification documents (including fraudulent United States passport cards) containing the identification of others. Thrasher used the fake documents as a means of identification to make cash withdrawals from multiple branches of four different federally insured financial institutions within the Middle District of Florida. As part of his guilty plea, Thrasher has agreed to forfeit $25,200—the proceeds of the fraud offenses.
This case was investigated by Homeland Security Investigations, the Ocala Police Department, the Wildwood Police Department, the Leesburg Police Department, and the Charlotte County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Gardena Street Gang Member Found Guilty of Participating in Fatal Shooting of Victim in Front of His Family’s HomeRead the Press Release
LOS ANGELES – A member of the Gardena 13 street gang was found guilty today by a jury of participating in the fatal shooting of a 29-year-old man who was murdered in front of his family home in November 2020.
Justin Arteaga, 23, a.k.a. “Hitta,” of Gardena, was found guilty of one count of violent crime in aid of racketeering (VICAR) murder. He has been in federal custody since December 2020.
“The victims of gang violence are most often the people living in the very neighborhoods the gangs claim as their own,” said United States Attorney Martin Estrada. “In this case, gang members once again committed a cowardly and senseless murder that ended the promise of a young life. The mandatory life sentence that will result for this defendant sends a clear message that my office is laser focused on holding perpetrators of violence accountable to the fullest account.”
“Gang violence has far too often senselessly transformed our family, friends, and neighbors into victims of crime. Sadly, this case was no different,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “My office has a long history of combatting gang violence, and I am extremely proud of the HSI special agents and our partners from the ATF, Gardena Police Department, Los Angeles Police Department, and the U.S. Attorney’s Office who were determined to seek justice for the family.”
“ATF targets trigger pullers by partnering with prosecutors, and law enforcement partners, to build cases against violent criminals,” said Special Agent in Charge of ATF Los Angeles Field Division Christopher Bombardiere. “ATF used its expertise in this investigation to link the evidence from the homicide firearms to the defendants. We will continue to pull and use all our resources to build cases against killers.”
According to evidence presented during a five-day trial, on November 13, 2020, the victim and his brother were seated in a parked car in front of their home when they were confronted by three men on foot – Arteaga, Antonio Yanez, 26, a.k.a. “Tank,” and George Hernandez, a.k.a. “Lil Vampy” – who were all armed with handguns. Yanez and George Hernandez were members of the Gardena 13 street gang, and Yanez was an associate of the gang. Following the victim’s perceived disrespect of Gardena 13 and the three assailants, all three assailants pulled out guns and began shooting the victim. After the victim had been shot, the victim’s father stepped out to help his son at which point a shootout between the victim’s father and the assailants, including Gardena 13 gang member Jesus Hernandez, 31, a.k.a. “Rowdy,” occurred.
Police and paramedics responded to the scene, where they treated the victim who died at the scene from gunshot wounds. George Hernandez, who was found lying on the street with gunshot wounds to his head and chest, was brought to a hospital, where he later died.
Arteaga was arrested four days later at Los Angeles International Airport as he was preparing to board a one-way flight to Mexico.
“The Gardena Police Department expresses its appreciation to the US Attorney's Office, the Department of Homeland Security Investigations, the ATF, and all other participating agencies in this thorough investigation and prosecution,” said Gardena Police Chief Michael Saffell. “We deeply value the dedication of our collaborative partners in ensuring justice and providing closure to the victim's family.”
Jesus Hernandez, who participated in the shootout, pleaded guilty in May 2022 to one count of being a felon in possession of a firearm and ammunition and is serving a 110-month prison sentence. Yanez pleaded guilty in February 2022 to one count of VICAR, one count of using a firearm in furtherance of a crime of violence resulting in death, and one count of being a felon in possession of a firearm and ammunition. He is expected to be sentenced in the coming months.
United States District Judge André Birotte Jr. scheduled a September 20 sentencing hearing, at which time Arteaga will face a sentence of life in federal prison.
Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Gardena Police Department investigated this matter.
Assistant United States Attorneys, including Kevin J. Butler of the Violent and Organized Crime Section and Varun Behl of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Fugitive receives significant sentence for synthetic narcoticsRead the Press Release
VICTORIA, Texas – A 38-year-old Sugar Land resident has been sentenced for conspiracy to possess with intent to deliver a synthetic cannabinoid and a separate charge for failure to appear, announced U.S. Attorney Alamdar S. Hamdani.
Naveed Rasheed Shike pleaded guilty April 2.
U.S. District Judge John D. Rainey has now ordered Shike to serve 208 months in federal prison for conspiracy to possess with intent to distribute a synthetic cannabinoid and another 54 months for failure to appear. The total 262-month prison term will be immediately followed by three years of supervised release. At the hearing, law enforcement presented testimony on the impact synthetic cannabinoids have on the local community, adverse effects of those substances and the imminent hazard the substances present to public safety. In handing down the sentence, the court noted and acknowledged the significant danger of synthetic cannabinoids as well as the large scale of the operation, specifically the volume of drugs Shike distributed and the significant number of affected individuals.
On Sept. 19, 2016, authorities conducted a traffic stop on U.S. Highway 77 south of Victoria. Law enforcement identified the driver as Henry Martinez and the front seat passenger as Shike.
During a search of the vehicle, authorities discovered over 1,400 retail packages of synthetic cannabinoids to be sold to and smoked. Shike admitted the synthetic cannabinoids were for delivery to individuals in Corpus Christi, and they were going to pick up $26,000. Shike admitted the “ledger” in the vehicle was from a prior trip and had done this several times.
Both Martinez and Shike were initially arrested and permitted release on bond.
On Oct. 2, 2019, Shike failed to appear at a scheduled court hearing before Judge Rainey, resulting in a warrant for his arrest. Authorities determined Shike had fled the United States to Karachi, Pakistani.
On Jan. 24, 2024, as part of Operation Lone Star, law enforcement engaged in a high-speed vehicle pursuit resulting in a bailout in Sullivan City. Authorities then tracked, located and arrested Shike. At the time of his arrest, Shike had been a fugitive for more than four years.
Laboratory analysis confirmed the presence of the synthetic cannabinoid FUB-AMB. Experts determined that based on the chemical structure and the pharmacological effects, FUB-AMB is a controlled substance under the Controlled Substance Analog Enforcement Act.
Synthetic cannabinoids are chemical compounds that mimic THC, the psychoactive ingredient in marijuana. After application to carrier mediums such as plant material, these chemical compounds are put into rolling papers, pipes, vaporizers or otherwise taken orally. Synthetic cannabinoids are usually sold in small, foil or plastic bags containing dried leaves (resembling potpourri) and marketed as incense for the purpose of smoking. It is commonly sold and known as synthetic marijuana, fake weed, legal and popular brand names including Kush, Spice, K2, Klimaxx and many other names.
Martinez, 48, Rosenberg, pleaded guilty Jan. 9, 2018, and received a 24-month sentence followed by two years of supervised release for conspiracy to distribute controlled substance analogs.
Shike has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance from the Drug Enforcement Administration, U.S. Marshals Service and Texas Department of Public Safety. Assistant U.S. Attorney Lance Watt prosecuted the case.