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Friday 21 June 2024
North Port Man Gets Life in Federal Prison for Using Hidden Cameras to Produce Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Gregory Allen Williamson (59, North Port), a/k/a “Vlad Vlad,” to life in federal prison for enticing a minor to engage in sexual activity, and for the production, distribution, and possession of child sexual abuse material. Williamson was found guilty following a jury trial on March 13, 2024.
According to testimony and evidence presented at trial, Williamson isolated and groomed a vulnerable 12-year-old victim, and recent immigrant from Eastern Europe, to engage in sexual activity. Using the alias “Vlad Vlad,” Williamson sent the victim anonymous and graphic sexually explicit emails, including ones containing child sexual abuse material. Williamson later gifted the victim cellphone chargers which, unbeknownst to the victim, contained hidden cameras. Williamson used the chargers to surreptitiously record and produce sexually explicit images of the victim when the victim was naked in the victim’s bedroom. One of the cellphone chargers with a hidden camera is pictured below.
“Life in prison will keep this depraved individual from hurting another child. Our special agents, task force officers, and analysts work these investigations with compassion and dogged determination to ensure the innocent are protected from predators,” said FBI Tampa Acting Special Agent in Charge Rodney Crawford.
This case was investigated by the Federal Bureau of Investigation Tampa Division − Sarasota Resident Agency and the North Port Police Department, with substantial assistance from the Sarasota County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Erin Claire Favorit and Lindsey Schmidt.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Midlothian Man Sentenced in One of Two Cases Involving Fraud, BriberyRead the Press Release
SAN ANTONIO – A Midlothian man was sentenced in federal court to 25 months in prison for falsifying court documents and bribing a Veteran’s Administration contracting officer.
According to court documents, Javor McCoy, 43, attempted to avoid a civil court appearance in Dallas by transmitting a criminal summons to an employee with the Dallas County Court showing he had to appear in court for a Western District of Texas federal indictment. The summons contained the false and fraudulent electronic signature of a United States magistrate judge and had been altered to display a fictitious appearance date for McCoy.
The criminal summons altered by McCoy was related to charges he faced for bribery of a public official. In that case, court documents reveal that McCoy owned Ready 2 Go Transport Central LLC (R2G Central), a purported Service-Disabled Veteran Owned Small Business, providing transportation for veterans, including ambulance and wheelchair transportation. McCoy’s co-defendant in the bribery case, Glenn Dartone Johnson, 50, of San Antonio, was a contracting officer with the Department of Veteran’s Affairs (VA). McCoy paid Johnson approximately $100,000 for information regarding the VA bid process and for Johnson’s assistance in influencing the VA bid process to help R2G Central win competitive bids from the VA.
McCoy pleaded guilty to charges in both cases in January. U.S. District Judge Orlando Garcia ordered the Defendant sentenced to 25 months on each case, to be served concurrently. McCoy will also be subject to a term of supervised release of three years.
Johnson pleaded guilty on Dec. 20, 2023, to one count of conspiracy to commit bribery of a public official and is scheduled to be sentenced Sept. 19, 2024.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The FBI and VA-OIG investigated the case.
Assistant U.S. Attorney Justin Chung and Special Assistant U.S. Attorney Jay Porier prosecuted the case.
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Methamphetamine Traffickers Sentenced to a Combined 368 Months in PrisonRead the Press Release
TEXARKANA – A central Arkansas man and woman were sentenced yesterday to a combined total of more than 30 years in federal prison for methamphetamine trafficking and related crimes. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings, which took place in the United States District Court in Texarkana.
According to court records, on February 28, 2021, Lynnel Antwan Watkins, age 36, of North Little Rock, and Haillie Marie Hendrickson, age 25, of Lonoke, were in a vehicle stopped by the Arkansas State Police on Interstate 49, in Miller County. The driver, Watkins, accelerated away from the scene of the stop at high speed, resulting in a short vehicle pursuit. When their vehicle became disabled, Watkins and his passenger, Hendrickson, were taken into custody on outstanding warrants. Officers then recovered more than nine (9) pounds of methamphetamine from the vehicle’s rear seat. Three firearms were also found in the vehicle, including two stolen AR-15’s, one of which was equipped with a loaded, 100-round drum magazine.
On July 20, 2023, Watkins pleaded guilty to Possession of More than 500 Grams of Methamphetamine with Intent to Distribute, and to Possessing a Firearm in Furtherance of a Drug Trafficking Crime. One day later, Hendrickson plead guilty to Possession of Methamphetamine with Intent to Distribute.
For those crimes, Watkins was sentenced today to 248 months, in federal prison followed by five years of supervised release. Hendrickson was sentenced to 120 months, in federal prison followed by three years of supervised release.
U.S. Attorney David Clay Fowlkes made the announcement.
The Arkansas State Police and the Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Graham Jones prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.
Metairie Man Indicted for Receipt and Distribution of Child Sexual Abuse Material and Obscene Visual Representations of Child Sexual AbuseRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that KEVIN LILLIS, age 50, a resident of Metairie, Louisiana, was indicted today for distributing child sexual abuse material (CSAM), in violation of Title 18, United States Code, Section 2252(a)(2) (Count 1), receiving child sexual abuse material (CSAM), in violation of Title 18, United States Code, Section 2252(a)(2) (Count 2), and receiving obscene visual representations of the sexual abuse of children, in violation of Title 18, United States Code, Section 1466A (Count 3).
According to the indictment, LILLIS distributed visual depictions of minors, including children as young as approximately four (4) years old, engaging in sexually explicit conduct, such as one depiction of a prepubescent female bound and unclothed. LILLIS also received visual depictions of minors, as young as less than one (1) week old, engaging in sexually explicit conduct, including a newborn female with severe discoloration and bruising being victimized by an adult male. LILLIS also received visual depictions of minors engaging in obscene conduct.
LILLIS faces a mandatory minimum of five (5) years in prison, and a maximum term of imprisonment of twenty (20) years as to each of Counts 1, 2, and 3. LILLIS also faces at least five years, and up to a lifetime, of supervised release and up to a $250,000 fine for each count. He may also be required to register as a sex offender.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Massachusetts Man Charged with Wildlife TraffickingRead the Press Release
BOSTON – A Reading, Mass. man has been charged with allegedly trafficking in wildlife parts from endangered and protected species.
Adam Bied, 39, is charged with two counts of conspiracy to smuggle goods into the United States, specifically, illegally imported wildlife parts, and three counts of violating the Lacey Act which prohibits trafficking in wildlife. It is alleged that the wildlife was protected by the Endangered Species Act (ESA) as well as the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
“The illicit trafficking of endangered wildlife for financial gain is a grave offense that poses a significant threat to global conservation efforts and preservation of these species. Mr. Bied’s alleged conduct reflects a blatant disregard for the laws in place to safeguard our planet’s biodiversity. These laws and international treaties exist to protect endangered species from exploitation and to maintain ecological balance,” said Acting United States Attorney Joshua S. Levy. “In addition to the criminal charges, our office is seeking to forfeit the hundreds of animal parts seized from Mr. Bied’s home and a storage unit, including orangutan skulls, tiger skulls and jaguar skins. This forfeiture action sends a clear message that we will not only prosecute those who engage in illegal wildlife trafficking, but also take legal actions to strip them of their ill-gotten gains.”
According to court filings, beginning at least from January 2018 until June 2021, Bied bought, sold and traded in wildlife parts and products, with knowledge that many of the transactions were in violation of U.S. laws and regulations and knowingly failed to declare this wildlife upon importation into the United States.
Specifically, Bied allegedly placed orders with individuals in Cameroon and Indonesia who were in the businesses of killing and acquiring wildlife – including endangered and protected species – which he then resold or traded to customers in the United States. Bied did not possess a United States Fish and Wildlife Service (USFWS) import/export license or necessary CITES permits, and allegedly failed to declare the wildlife to the USFWS upon import.
The United States Attorney’s Office also filed a civil forfeiture complaint seeking to forfeit over 100 wildlife parts from endangered, threatened, or protected species seized by the USFWS in July 2021 from Bied’s residence, storage unit, and a vehicle. As alleged in the civil forfeiture complaint, many of the seized wildlife parts required a CITES permit and/or a USFWS declaration for lawful import and a USFWS import/export license to import wildlife for commercial purposes. Other wildlife parts are alleged to have been acquired in violation of the ESA or the Marine Mammal Protection Act (MMPA). The civil forfeiture complaint alleges that the wildlife parts are subject to civil forfeiture under federal law.
The wildlife parts identified in the civil forfeiture complaint include:
- Orangutan skulls;
- Tiger skulls;
- Leopard skin, skulls and claw;
- Jaguar skin and skull;
- African lion skulls;
- Polar bear skull;
- Narwhal tusk;
- Otter skeleton;
- Harp seal skull;
- South American fur seal skull;
- Elephant seal skull;
- Babirusa skulls;
- Mandrillus skulls;
- Wallaby skull; and
- Jackal skull.
Federal wildlife statutes and regulations prohibit international and illegal trade in vulnerable wildlife species. The ESA, the Lacey Act and CITES, as well as the accompanying regulations, prohibit the import, export, possession, transport, purchase and sale of protected species. The restrictions apply to live and dead wildlife specimens, as well as the skins, parts and products made in whole or in part from listed species. Additional documents are also required for wildlife protected by the CITES treaty, which regulates trade in endangered or threatened species through permit requirements.
The lawful importation of vulnerable wildlife species requires a CITES permit(s). The lawful importation of any foreign species requires a USFWS wildlife declaration. Individuals are also required to have a USFWS import/export license to import wildlife for commercial purposes.
The charges of conspiracy as well as the charges under the Lacey Act each provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and Ryan Noel, Special Agent in Charge of U.S. Fish and Wildlife Service, Office of Law Enforcement, Northeast Region, made the announcement today. This case was worked jointly with the United States Marshals Service and the Department of Justice’s Environment and Natural Resources Division’s Environmental Crimes Section. Assistant U.S. Attorneys Nadine Pellegrini, Chief of the National Security Unit, is prosecuting the case. Assistant U.S. Attorney Carol E. Head, Chief of the Asset Recovery Unit is prosecuting the civil forfeiture case.
The details contained in the charging document and civil forfeiture complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The United States must establish that the wildlife parts are subject to forfeiture by a preponderance of the evidence.
Maryann Manning Pleads Guilty to Stealing Social Security Benefit PaymentsRead the Press Release
Burlington, Vermont – The United States Attorney for the District of Vermont announced that Maryann Manning, 63, of Wolcott, Vermont, pleaded guilty yesterday in United States District Court in Burlington to fraudulently converting tens of thousands of dollars in Social Security benefit payments. Chief U.S. District Judge Geoffrey W. Crawford released Manning on conditions pending sentencing, which will be scheduled at a later date.
On May 13, 2024, the U.S. Attorney filed a one-count information charging Manning with receiving stolen government money. Manning made her initial appearance in federal court today and pleaded guilty to that charge. According to court records, Manning’s brother received disability insurance benefit payments from the Social Security Administration (SSA). Manning’s brother died in October 2015 at which time his SSA benefits should have terminated. Following his death, however, Manning collected her brother’s benefits from SSA by withdrawing the money from his accounts. The total loss to the Social Security Administration is more than $119,000.
Manning faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
This case was investigated by the Social Security Administration’s Office of the Inspector General.
Manning is represented by Robert Behrens, Esq. The government is represented by Assistant United States Attorney Zachary Stendig.
Leader, Members of Galloping Goose Motorcycle Club Indicted for Criminal Racketeering EnterpriseRead the Press Release
JEFFERSON CITY, Mo. – Seven area residents, including the leader and several members of the Galloping Goose Motorcycle Club, have been indicted by a federal grand jury for their roles in an ongoing criminal enterprise that involved acts of violence, drug trafficking, and illegally possessing firearms.
Tonka Way Con Ponder, 53, and his wife, Carolynn L. Ponder, 47, both of Preston, Mo., and Tretch Lucius Lawrence, also known as “Travis Dewain Shankle,” 48, Keith Dewayne Nolen Jr., also known as “Seg,” 34, Paul Leon Gardner, 52, Daniel Scot Kurtzenborn, 41, and Robert Russell Warren, also known as “Russ,” 54, all of whom have unknown addresses, were charged in a 25-count indictment returned under seal by a federal grand jury in Jefferson City on Tuesday, June 18.
That indictment was unsealed and made public today following the arrests of six of the defendants (with the exception of Warren). Tonka Ponder, Lawrence, Nolen and Kurtzeborn remain detained in federal custody pending a detention hearing on Tuesday, June 25. Gardner and Carolynn Ponder were released on bond.
The federal indictment alleges that Tonka Ponder, Lawrence, Nolen, Gardner and Kurtzeborn are members of the Lake of the Ozarks chapter of the Galloping Goose outlaw motorcycle gang, an organized criminal enterprise. Members of the Galloping Goose, says the indictment, engaged in acts of violence, including assault, attempted robbery, and extortion.
According to the indictment, Tonka Ponder was the leader of the local chapter of the Galloping Goose, which has a clubhouse in Camdenton, Mo.
The federal indictment charges Tonka Ponder, Lawrence, Shankle, Nolen, Kurtzeborn and Gardner with committing a violent crime in aid of racketeering. They allegedly assaulted another person with a deadly weapon on Dec. 12, 2020.
The federal indictment charges Tonka Ponder, Lawrence, Nolen, and Kurtzeborn with committing a violent crime in aid of racketeering. They allegedly conspired to assault members of the Mongols Motorcycle Club and the Iron Celtics Motorcycle Association, resulting in serious physical injuries, on July 15, 2021.
Tonka Ponder is charged with two counts of committing a violent crime in aid of racketeering and two counts of discharging a firearm in furtherance of a crime of violence. Tonka Ponder allegedly shot two persons, resulting in serious physical injury, on July 15, 2021.
Kurtzeborn is charged with one count of committing a violent crime in aid of racketeering and one count of discharging a firearm in furtherance of a crime of violence. Kurtzeborn allegedly attempted to assault a victim by shooting at him on July 15, 2021.
Tonka Ponder and Lawrence are charged with one count of attempted extortion. The indictment alleges that, from July 1, 2020, to July 15, 2021, they attempted to obtain the property of the Iron Celtics Motorcycle Association by threatened use of force, violence, and fear.
The federal indictment charges Tonka Ponder, Carolynn Ponder, and Warren with participating in a conspiracy to distribute methamphetamine in Camden and Miller Counties from Aug. 1 to Oct. 31, 2022. Tonka Ponder is also charged with five counts of distributing methamphetamine, one count of possessing a firearm in furtherance of a drug-trafficking crime, and four counts of traveling across state lines to facilitate the illegal distribution of methamphetamine.
Tonka Ponder is charged with two counts of using his cell phone to facilitate a drug-trafficking conspiracy. Carolynn Ponder is charged with one count of using her cell phone to facilitate a drug-trafficking conspiracy.
Kurtzeborn and Nolen are each charged with one count of being a felon in possession of a firearm. Kurtzeborn allegedly possessed a Taurus .357-caliber revolver on July 15, 2021. Nolen allegedly possessed a Taurus 9mm handgun on Aug. 24, 2023.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Aaron M. Maness and Cecily L. Hicks. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the FBI, the Missouri State Highway Patrol, the Jefferson City, Mo., Police Department, the Lake of the Ozarks, Mo., Police Department, the Miller County, Mo., Sheriff’s Department, and the Camden County, Mo., Sheriff’s Department.
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, Mississippi Men Sentenced to Life in Prison for Murder, Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man and a Crowder, Mississippi, man have been sentenced in federal court for their roles in a drug-trafficking conspiracy that included two murders.
Shawn Burkhalter, also known as “Deuce,” 35, of Kansas City, Mo., was sentenced today by U.S. District Judge Brian C. Wimes to life in federal prison without parole. Co-defendant Joshua Nesbitt, also known as “T,” 30, was sentenced yesterday to life in federal prison without parole.
On Aug. 28, 2023, Burkhalter and Nesbitt each were found guilty at trial of one count of conspiracy to distribute cocaine and marijuana, one count of possessing cocaine with the intent to distribute, one count of possessing marijuana with the intent to distribute, one count of robbery, two counts of discharging a firearm in furtherance of a crime of violence and a drug-trafficking crime, one count of brandishing a firearm in furtherance of a crime of violence, one count of being felons in possession of a firearm, one count of conspiracy to commit witness and evidence tampering, one count of murdering a potential witness, and one count of evidence tampering. Additionally, Burkhalter was found guilty of one count of witness tampering.
Burkhalter and Nesbitt participated in a decade-long conspiracy to distribute cocaine and marijuana from 2008 to Feb. 20, 2018. Six more co-defendants pleaded guilty and have been sentenced for their roles in the drug-trafficking conspiracy.
Trial evidence showed that on Sept. 10, 2015, Burkhalter and Nesbitt stole cocaine from Danny Lamont Dean, and in the process of that robbery, shot and killed Dean with a Rock River Arms AR-15, 5.56-caliber semi-automatic rifle.
On Oct. 4, 2015, Nesbitt and others stole marijuana from Anthony Dwayne Johnson, and in the process of that robbery, Nesbitt shot and killed Johnson with the same Rock River Arms AR-15, 5.56-caliber semi-automatic rifle, all of which was at the direction of Burkhalter (who was detained in custody at the time of the murder). Trial evidence showed Johnson was murdered because Burkhalter suspected him of providing information to investigators about Burkhalter’s involvement in Dean’s murder.
Burkhalter and Nesbitt robbed a Kansas City, Mo., business on Sept. 8, 2015, brandishing the same AR-15 rifle.
The government also presented evidence at yesterday’s sentencing hearing that Nesbitt repeatedly assaulted staff members at detention facilities while incarcerated and awaiting trial.
Co-defendants Sharika Hooker and Autry Hines, both of Kansas City, Mo.; Joslyn Lee, also known as “Bless,” and Nickayla Jones, both of Blue Springs, Mo.; Rachel Ryce of Raytown, Mo.; and Anthony Peltier, also known as “A-1,” of Lawrence, Kansas, have pleaded guilty and previously been sentenced.
This case was prosecuted by Assistant U.S. Attorneys David Raskin, Patrick C. Edwards, and David Wagner. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Opens Application Period for Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
The Justice Department today announced the opening of the application period for federally recognized Tribes and intertribal consortia to participate in the Tribal Access Program (TAP) for National Crime Information. TAP improves public safety by providing federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes, such as the FBI’s National Crime Information Center (NCIC).
“The Department’s Tribal Access Program is a critical asset that Tribes can deploy to increase safety and justice in their communities,” said Deputy Attorney General Lisa Monaco. “Year in and year out, TAP’s value – enabling Tribes to access and exchange federal criminal justice information – has proven indispensable in advancing Tribal public safety across the country. I encourage all eligible Tribes to participate.”
“The Tribal Access Program is a highly valuable resource which aids in facilitating additional support to law enforcement partners and the communities they serve,” said FBI Deputy Director Paul Abbate. “TAP gives Tribal partners a mechanism to share and collaborate on time-sensitive information that can be used to help better serve and protect their communities. The program has already experienced tremendous success and this application period offers an opportunity to further expand this important tool to even more partners.”
The Department will accept TAP applications from June 24 to Aug. 30. Tribes selected to participate will be notified in September. There are currently 132 federally recognized Tribes participating in TAP.
The program provides software, hardware, and training, as well as a web-based application and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems.
Using TAP, Tribes have shared information about missing persons; entered domestic violence orders of protection for nationwide enforcement; registered convicted sex offenders; run criminal histories; located fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
“The Cherokee Nation has been participating in TAP for many years,” said Senior Director Justice Services Suzanne Drywater of the Cherokee Nation. “From sex offender registrations, law enforcement, foster home certification, human resources, and child support, our Tribe has been able to exercise our sovereignty, and TAP has proven to be an invaluable resource that we use daily in a multitude of ways.”
“TAP provides the Suquamish Tribal Police Department with access to national criminal justice information to properly conduct criminal investigations and to make NICS entries to prevent persons with legal restrictions from purchasing firearms,” said Administrative Services Manager Lisa Sparks of the Suquamish Tribal Police Department.
For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities. Webinars will be offered throughout July and August. For more information about TAP, including webinar dates, times, and access information, visit www.justice.gov/tribal/tribal-access-program-2024-applications.
To qualify for funding, federally recognized Tribes must have – and agree to use TAP for – at least one of the following:
- A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act;
- A Tribal law enforcement agency that has arrest powers;
- A Tribal court that issues orders of protection; or
- A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking; the Office of Community Oriented Policing Services; the Office for Victims of Crime; and the Office on Violence Against Women. TAP is co-managed by the Department’s Office of the Chief Information Officer and Office of Tribal Justice.
Jury Finds District Woman Guilty of Robbery and Conspiracy for Christmas Day OffensesRead the Press Release
WASHINGTON – Derricka Burton, 20, of Washington, D.C., was found guilty by a Superior Court jury of a Christmas Day robbery, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
The verdict was returned on June 20, 2024, following a trial in the Superior Court of the District of Columbia. The Honorable Robert Salerno scheduled sentencing for August 23, 2024.
According to the government’s evidence, at around 2:38 p.m. on December 25, 2023, Burton and three co-conspirators saw the victims, a couple spending time together at the Alethia Tanner Park, located at 227 Harry Thomas Way Northeast. Video footage showed Burton and her co-conspirators huddle together before two of her co-conspirators walked up to the victims and robbed them. Burton’s co-conspirators pointed a gun at the victims and demanded the victims’ Canada Goose brand jacket, cellphone, and other items. The co-conspirators then walked back to Burton and the other co-conspirators. The group conferred with each other and left together. As they did so, one of the co-conspirators dropped some of the stolen property, which Burton picked up before she left with the group. Police arrested Burton on February 12, 2024.
In announcing the verdict, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. Assistant U.S. Attorneys Michael Toogun and Katrenia Shelly prosecuted the case.
Jeffersonville Man Sentenced to 25 Years in Federal Prison for Secretly Recording Minor Victim in Shower and Dressing AreasRead the Press Release
NEW ALBANY- Joseph Grant Flamion, 47, of Jeffersonville, has been sentenced to 25 years in federal prison, followed by 15 years of supervised release, after pleading guilty to sexual exploitation of a child and possession of child sexual abuse material.
According to court documents, in 2021 and 2022, Flamion secretly used electronic devices to record or to attempt to record a child victim in places where Flamion knew the child would be undressing or nude. Flamion placed a hidden camera in the child’s bathroom and bedroom and routinely held a cell phone camera or another device under the doors to record the child fully nude or undressing. Flamion had custody, care, or supervisory control of the child, who was 13 and 14 years old when Flamion made the recordings.
In October of 2021, Flamion brought a hidden camera with him when he took the child to Florida for a vacation. Flamion placed the hidden camera in the bathroom of the hotel and recorded the child when the child was showering.
The minor victim and a witness became aware that Flamion was attempting to create nude recordings of the victim and disclosed his conduct to the Indiana Department of Child Services. The Department of Child Services notified Flamion of what it had learned, and he subsequently destroyed or disposed of the hidden camera that he used to make recordings of the victim before they could be seized by law enforcement officers.
On July 5, 2022, the Jeffersonville Police Department conducted court-authorized searches of Flamion’ s person and residence. Police seized electronic devices, including a laptop that contained secretly recorded videos of the victim nude or partially nude, and had been used to search for topics such as “hidden camera” and “real life cam.” Investigators also found videos of the victim nude or partially nude on Flamion’s iPhone and MicroSD card. In his guilty plea, Flamion admitted that he created the recordings of the child for his own sexual gratification.
“All children deserve to live in a home that is a place of safety and love. This defendant used his proximity to a child to secretly invade their safety and dignity, sexually exploiting them for his own gratification,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Those who seek to sexually exploit children must be identified and held accountable for the trauma they inflict on victims and their families. Thanks to the outstanding efforts of the Jeffersonville Police Department, FBI, and our federal prosecutor, the public will be protected from this defendant while he serves a very serious sentence in federal prison.”
“The defendant took advantage of a child’s vulnerability in their own home – a place where they should feel safe and protected – and not have to live in constant fear of being exploited,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI and our partners will continue to work diligently to protect our children from those engaging in such heinous crimes.”
“I want to thank the Indiana State Police Digital Forensic Examiners, FBI Indianapolis Field Office, and the U.S. Attorney’s Office for the Southern District of Indiana for their assistance in the investigation and the thorough prosecution of Mr. Flamion,” said Col. Kenny Kavanaugh, Chief of Police of the Jeffersonville Police Department. “His predatory actions impacted not only the victims in this case but caused a ripple effect across our community. Our partnership with these agencies enabled us to conduct a sound investigation which led to a successful prosecution.”
The FBI, Indiana State Police, and Jeffersonville Police Department investigated this case. The sentence was imposed by Chief U.S. District Judge Tanya Walton Pratt. Judge Pratt also ordered Flamion to pay $10,000 in restitution, $7,500 in fines, and to register as a sex offender wherever he lives, works, or goes to school.
U.S. Attorney Myers thanked Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
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Illegal sale of firearms and ammunition buys prison time for local felonsRead the Press Release
McALLEN, Texas – Two Rio Grande City residents have been sentenced for being felons in possession of firearms and for attempting to sell multiple firearms and ammunition, announced U.S. Attorney Alamdar S. Hamdani.
Jesus Maria Salazar Jr., 29, and Filiberto Martinez Jr., 42 pleaded guilty on Oct. 20, 2023.
U.S. District Judge Ricardo H. Hinojosa has now imposed a 30-month term of imprisonment for Salazar, while Martinez received 22 months. Both must also serve 2 years of supervised release following their sentences. At the hearing, the Court heard additional evidence including that both Salazar and Martinez had federal convictions for smuggling ammunition. In handing down the prison terms, Judge Hinojosa noted their prior convictions.
On March 2, 2023, Salazar sold three AK-47 variant rifles, one AR-15 variant rifle and approximately 5,900 rounds of ammunition to an ATF undercover agent.
The investigation revealed Martinez stored three of the firearms for Salazar prior to the sale.
Salazar and Martinez are both prohibited from possessing a firearm or ammunition following their respective federal convictions for illegally smuggling ammunition to Mexico.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Assistant U.S. Attorney Cahal P. McColgan prosecuted the case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Illegal Firearm Possession by Convicted Felon Lands Oklahoma City Man in Federal Prison for Eight YearsRead the Press Release
OKLAHOMA CITY – DONALD EDWARD HILL, JR., 24, of Oklahoma City, has been sentenced to serve 96 months in federal prison for illegally possessing a firearm after a previous felony conviction, announced U.S. Attorney Robert J. Troester.
On August 9, 2023, Hill was charged by Information with being a felon in possession of a firearm. According to an affidavit in a previously filed criminal complaint, in March 2023, an arrest warrant was issued for Hill in Oklahoma County District Court related to a shooting incident. When law enforcement executed a search warrant at the Edmond apartment where Hill was arrested, they located a pistol in a pair of Hill’s pants.
According to public record, Hill has multiple prior felony convictions, including assault and battery with a dangerous weapon, discharging a firearm into a dwelling, and possession of a firearm after juvenile adjudication, all in Oklahoma County District Court case number CF-2017-6085; placing bodily fluids upon a government employee in Oklahoma County District Court case number CF-2018-1014; and possession of a firearm after juvenile adjudication in Oklahoma County District Court case number CF-2019-543.
On September 11, 2023, Hill pleaded guilty, and admitted he possessed the firearm, despite knowing he was prohibited from doing so because of his felony convictions.
At the sentencing hearing on June 18, 2024, U.S. District Judge Jodi W. Dishman sentenced Hill to serve 96 months in federal prison, followed by three years of supervised release. In announcing the sentence, the Court noted Hill’s extensive criminal history and his lack of respect for the law, as well as the need to protect the public from further crimes committed by the defendant.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorney Danielle M. Connolly 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. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
Hampton man pleads guilty to recording videos of minors in amusement park restroomRead the Press Release
NORFOLK, Va. – A Hampton man pled guilty today to possession of child sexual abuse material (CSAM).
According to court documents, on Sept. 4, 2021, Corey Thomas Mason, 29, used a cell phone to record two videos of exposed minors in a restroom stall at an amusement park.
On Feb. 8, 2022, the Norfolk Naval Shipyard (NNSY) Police Department requested assistance from the Naval Investigative Criminal Service (NCIS) with conducting a review of Mason’s cellphone relating to a video voyeurism that had recently occurred on NNSY in Portsmouth. Investigators conducted a digital forensic extraction on Mason’s cellphone. An initial review of the cellphone extraction revealed several suspected recordings of males while utilizing bathroom stalls. On Feb. 14, 2022, further review identified the two videos of minors.
On April 13, 2022, NCIS obtained a federal search warrant to review the forensic extraction and found 141 voyeuristic videos taken in what appear to be bathroom stalls, including the two videos of minors.
Mason is scheduled to be sentenced Oct. 18 and faces up to 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Mack Hickman, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after Senior U.S. District Judge John A. Gibney Jr. accepted the plea.
Assistant U.S. Attorney Matthew Heck is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:24-cr-48.
This release was edited on June 22, 2024, to reflect that the defendant pled guilty to possession of CSAM, not production.
Great Falls man admits trafficking methamphetamine and fentanylRead the Press Release
GREAT FALLS — A Great Falls man admitted on June 20 to trafficking methamphetamine and fentanyl after a law enforcement investigation determined he was dealing large quantities of drugs in the community and found two pounds of meth wired under his truck, U.S. Attorney Jesse Laslovich said.
The defendant, John Mead Ogburn, 45, pleaded guilty to an information charging him with conspiracy to distribute and to possess with intent to distribute meth and fentanyl. Ogburn faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release.
Under the terms of a plea agreement, the parties agreed that a prison sentence in the range of 12 years and seven months to 15 years and eight months is an appropriate sentence to resolve the case.
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 Oct. 24. Ogburn was detained pending further proceedings.
In court documents, the government alleged that in September and October 2023, drug task officers in Great Falls learned Ogburn was a source of supply of meth and fentanyl. In November 2023, officers intercepted a UPS package that contained 1,757 fentanyl pills. The package was intended to be delivered to a Great Falls address of an individual, who admitted knowing the package contained fentanyl and who identified Ogburn as arranging for the shipment. In December 2023, officers received information that another individual possessed a large quantity of fentanyl powder. Officers executed a search warrant on the individual’s residence and recovered approximately one pound of meth and 55 grams of fentanyl powder. Officers observed Ogburn at the individual’s home before and after the search, and the individual later told officers that the drugs were intended for Ogburn. On Feb. 9, law enforcement conducted an interdiction stop on Interstate 90 of two vehicles associated with Ogburn, an Acura and a Dodge truck. A search of the vehicles found approximately two pounds of meth wired under the truck. Ogburn admitted on a recorded jail call that he was responsible for placing the meth under the truck.
The U.S. Attorney’s Office is prosecuting the case. The FBI, Russell Country Drug Task Force, Montana Division of Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department, Cascade County Sheriff’s Office and Montana Highway Patrol conducted the investigation.
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.
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Former State Senator and Sister/Business Owner Charged with Obstruction of JusticeRead the Press Release
BOSTON – An indictment was unsealed today in federal court in Boston charging former Massachusetts State Senator Dean Tran and his sister for allegedly attempting to cover up a sham job offer from the sister’s company to Tran.
Tran, 48, of Fitchburg, was indicted on one count of obstruction of justice and one count of making a false statement. His sister, Tuyet T. Martin, 54, of Pelham, N.H., was indicted on two counts of obstruction of justice and one count of perjury. Martin was arrested this morning and will appear in federal court in Boston this afternoon. Tran will appear at a later date.
In November 2023, Tran was arrested and charged in 28-count federal indictment for his alleged fraudulent collection of Pandemic Unemployment Assistance benefits and his willful omission of consulting and rental income from his tax returns in 2020, 2021 and 2022.
“The charges against Dean Tran and his sister represent a serious breach of public trust,” said Acting United States Attorney Joshua S. Levy. “Their alleged calculated effort to defraud the government and deceive federal investigators demonstrate a disturbing disregard for the law. Our office remains committed to uncovering and prosecuting fraud and corruption, as this case makes clear.”
“Anyone who obstructs a federal investigation is attempting to subvert the course of justice,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today, former Massachusetts State Senator Dean Tran and his sister Tuyet Martin are accused of doing exactly that, in an effort conceal Mr. Tran’s alleged attempts to steal tens of thousands of dollars from public assistance programs at the expense of those in need. Make no mistake, the FBI and our partners will not hesitate to bring to justice anyone foolish enough to try to interfere with our cases.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving the U.S. Department of Labor’s (DOL) unemployment insurance program as well as allegations involving the obstruction of DOL investigations, including those conducted by the Office of Inspector General. We will continue to work with our law enforcement partners to aggressively investigate these types of allegations,” said Special Agent-in-Charge Jonathan Mellone, Northeast Region, U.S. Department of Labor, Office of Inspector General.
“The indictment and arrest of Tuyet T. Martin demonstrates the IRS’s commitment to not only prosecuting those who break the law but also those who knowingly and willfully obstruct Federal investigations,” said Special Agent in Charge, Harry T. Chavis Jr., Internal Revenue Service’s Criminal Investigations, Boston Field Office. “Martin lied to Special Agents in an effort to obstruct an ongoing Federal investigation. Martin attempted to protect her brother, former State Senator Dean Tran, from being arrested but now she must face justice for her actions.”
According to the indictment, as part of the investigation into Tran’s unemployment benefits and tax fraud schemes, an investigation began into a purported job offer from Martin to Tran at Alecon Enterprises, Inc., where Martin was an owner and the CEO. In June 2022, during the execution of a search warrant at Tran’s residence, it is alleged that Tran made false statements to agents about a job offer letter from Martin and whether Martin had actually written the letter and her signature on it. It is further alleged that Martin concealed and attempted to delete emails between her and Tran regarding the employment offer letter. Additionally, Martin allegedly provided false testimony before a federal grand jury in July 2023 regarding the employment offer letter.
The charge of obstruction of justice provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of perjury provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, FBI SAC Cohen, DOL-OIG SAC Mellone and IRS-CI SAC Chavis made the announcement today. Assistant U.S. Attorneys John T. Mulcahy and Dustin Chao of the Public Corruption & Special Prosecutions Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Kentucky Sheriff’s Deputy Sentenced for Abusing ArresteesRead the Press Release
A former Kentucky sheriff’s deputy was sentenced today to 110 months in prison for violating the constitutional rights of multiple people he arrested during his tenure as a law enforcement officer.
Former Boyle County Sheriff’s Deputy Tanner M. Abbott, 31, was convicted by a federal jury in March of five felonies and one misdemeanor related to using excessive force against four arrestees, performing an illegal search and writing and conspiring to write false police reports to cover up his abuse.
“This defendant habitually and routinely abused his authority and used his badge to shield himself from accountability for years,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence should send a loud message that such abuses by law enforcement will not be tolerated. The Justice Department is steadfast in its commitment to hold law enforcement accountable when they violate the civil and constitutional rights of people in their country.”
“Instead of protecting and serving the community, the defendant was physically abusing people — even bragging about the injuries he caused,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “That is not law enforcement; that is brazen criminal conduct. The community deserved better. Fortunately, he now has a criminal sentence that he deserves.”
At the sentencing hearing, the government presented evidence that the crimes for which Abbott was convicted were part of a larger pattern of abuse of authority spanning his career. An investigator testified that, during its two-year investigation of numerous allegations against Abbott, the FBI discovered evidence that Abbott frequently used excessive force against suspects. This evidence included text messages recovered from Abbott’s work-issued cell phone in which Abbott bragged, sometimes in graphic and vulgar terms, about causing injuries to people he had arrested. The government also presented cell phone evidence showing that Abbott sometimes took photographs of injuries he had caused and sent the photographs to friends and acquaintances, but never included or submitted them in official police documents. Two additional witnesses testified that they had been physically abused by Abbott while being arrested.
The court also found that Abbott obstructed justice during his trial by testifying falsely in his own defense.
The FBI Louisville Field Office investigated the case.
Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Chairman of Nevada-Based Publicly Traded Health Care Company Found Guilty of Multimillion-Dollar Insider Trading SchemeRead the Press Release
LOS ANGELES – The former CEO and chairman of the board of directors of Ontrak Inc., a Henderson, Nevada-based publicly traded health care company, was found guilty by a jury today of engaging in an insider trading scheme, using Rule 10b5-1 plans, to avoid losses of more than $12.5 million.
Terren Scott Peizer, 64, a resident of Puerto Rico and Santa Monica, was found guilty of one count of securities fraud and two counts of insider trading.
“Corporate executives and other insiders hold major power in our economy, but with that power comes responsibility,” said United States Attorney Martin Estrada. “It is important that executives, such as this defendant, be held accountable when they line their own pockets at the expense of shareholders. That is why I created our office’s Corporate and Securities Fraud Strike Force. Today’s verdict sends a clear message that everyone, including corporate executives, must abide by the law.”
“When Terren Peizer learned significant negative news about Ontrak, he set up Rule 10b5-1 trading plans to sell shares before the news became public and to conceal that he was trading on inside information,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “With today’s verdict, the jury convicted Peizer of insider trading. This is the Justice Department’s first insider trading prosecution based exclusively on the use of a trading plan, but it will not be our last. We will not let corporate executives who trade on inside information hide behind trading plans they established in bad faith.”
According to evidence presented at a 10-day trial, Peizer avoided losses of approximately $12.5 million by entering into two Rule 10b5-1 trading plans while in possession of material, non-public information concerning the serious risk that Ontrak’s then-largest customer would terminate its contract.
In May 2021, Peizer entered into his first 10b5-1 trading plan shortly after learning that the relationship between Ontrak and the customer was deteriorating and that the customer had expressed serious reservations about continuing its contract with Ontrak. Peizer later learned that the customer informed Ontrak of its intent to terminate the contract. Then, in August 2021, Peizer entered into his second 10b5-1 trading plan approximately one hour after Ontrak’s chief negotiator for the contract confirmed to Peizer that the contract likely would be terminated.
In establishing his 10b5-1 plans, Peizer refused to engage in any “cooling-off” period—the time between when he entered into the plan and when he sold stock—despite warnings from two brokers, a senior Ontrak executive, and attorneys. Instead, Peizer began selling shares of Ontrak on the next trading day after establishing each plan. On August 19, 2021, just six days after Peizer adopted his August 10b5-1 plan, Ontrak announced that the customer had terminated its contract and Ontrak’s stock price declined by more than 44%.
“As a CEO, Mr. Peizer abdicated his responsibilities by using his position to conceal trading on material non-public information in order to avoid the losses shareholders suffered,” said Acting Assistant Director in Charge Krysti Hawkins of the FBI Los Angeles Field Office. “The FBI is committed to investigating illegal trading practices and holding offenders accountable in order to ensure fairness and trust in the marketplace.”
United States District Judge Dale S. Fischer scheduled an October 21 sentencing hearing, at which time Peizer will face a statutory maximum penalty of 25 years in prison on the securities fraud count and up to 20 years in prison on each of the insider trading counts.
The case is part of a data-driven initiative led by the Criminal Division’s Fraud Section to identify executive abuses of 10b5-1 trading plans. Rule 10b5-1 trading plans can offer an executive a defense to insider trading charges. However, the defense is unavailable if the executive is in possession of material, non-public information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5-1.
The Corporate and Securities Fraud Strike Force is designed to expand and prioritize complex corporate and securities fraud investigations, some of which involves corporate executives and other individuals involved in criminal conduct. Members of the Strike Force examine accounting fraud, insider trading, and other matters that directly impact the financial system and trading markets.
The FBI investigated the case, with substantial assistance from FINRA’s Criminal Prosecution Assistance Group.
Assistant United States Attorney Ali Moghaddas of the Corporate and Securities Fraud Strike Force and Trial Attorneys Matthew Reilly and Della Sentilles of the Justice Department’s Criminal Division’s Fraud Section are prosecuting this case.
Florida promoter sentenced to 20 years for duping investors in fraudulent Southfork Ranch concert schemeRead the Press Release
SHERMAN, Texas – An Orlando, Florida man has been sentenced to 20 years in federal prison for wire fraud in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
James Walker Watson, Jr., 68, pleaded guilty to wire fraud in May 2023 and was sentenced to 20 years in federal prison by U.S. District Judge Amos L. Mazzant, III, on June 20, 2024. Judge Mazzant announced restitution to victims would be determined at a separate hearing.
According to information presented in court, from 2016 to 2020, Walker devised and carried out a scheme to commit fraud against multiple individuals in the North Texas area by representing to them that he was a successful concert promoter and was looking for investors to give him money to put on concert events, including two purported concerts at the Southfork Ranch in Plano, Texas. Walker took the victims’ money but failed to return the investments as he had promised. He would often tell investors that, without further investment and involvement with his ventures, they would not receive any of their money back. The fraudulent activity resulted in a loss to victims of approximately $3 million.
“The U.S. Attorney's Office will continue to bring charges against and prosecute those who commit fraud and steal money from victims in our district,” said U. S. Attorney Damien M. Diggs. “These crimes often take advantage of individuals who trust the defendants with their hard-earned savings and investments, only to lose them forever. We appreciate the work of the FBI in investigating and partnering with the U.S. Attorney’s Office to bring this defendant to justice.”
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Jay Combs.
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Florida Fisherman Pleads Guilty to Tax EvasionRead the Press Release
A Florida man pleaded guilty yesterday to evading taxes on income he earned from commercial fishing in Massachusetts.
According to court documents and statements made in court, Christopher Garraty, of New Port Richey, and formerly of Newport and East Greenwich, Rhode Island, worked as a commercial fisherman and deckhand for fishing companies operating out of New Bedford, Massachusetts. Despite earning substantial income working as a fisherman, Garraty did not file until 2012 any federal income tax returns for tax years 2002 through 2011. When he filed the delinquent returns, he reported that he owed a total of approximately $234,497 in taxes for those nine years. But even after reporting that he owed taxes, Garraty did not make any payments to the IRS. In addition, Garraty did not file returns for 2015 through 2018 despite earning approximately $600,000 in fishing income across those years and owing approximately $179,382 in taxes.
To thwart the IRS from assessing or collecting his outstanding taxes, Garraty regularly cashed his paychecks at the issuing bank to conceal the source and disposition of his income. Garraty did not deposit a significant portion of his cashed paychecks into his bank accounts. Moreover, when his paycheck was over $10,000, Garraty frequently cashed the paycheck at the issuing bank and then immediately made multiple cash deposits of less than $10,000 into his bank account to avoid triggering the bank’s reporting requirements. He used the cash to fund his lifestyle to further conceal his financial activity.
In total, Garraty caused a tax loss to the IRS of approximately $413,879.
Garraty is scheduled to be sentenced on Sept. 17 and faces a maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties. A federal judge for the U.S. District Court for the District of Massachusetts will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division and Assistant U.S. Attorney Victor Wild for the District of Massachusetts are prosecuting the case.
Federal Inmate Sentenced to Additional 32 Months in Prison for Possessing Improvised WeaponRead the Press Release
TERRE HAUTE- Javon Britton, 44, of Georgia, has been sentenced to an additional 32 months in federal prison after being found in possession of a weapon while in prison.
According to court documents, in 2015, Britton was convicted of robbery and two counts of brandishing a firearm during a crime of violence and a judge in the Middle District of Georgia sentenced him to 11.5 years in federal prison. He has been serving his prison sentence at the Terre Haute Federal Correctional Complex inmate since 2017.
On April 29, 2019, Britton exited the prison dining hall and passed through a walk-through metal detector. The metal detector alerted staff to an object on Britton’s person. A Bureau of Prisons Officer patted Britton down and located a homemade weapon in his right jacket pocket. The weapon consisted of a combination padlock attached to a belt. Britton ran and was tackled by multiple officers, who removed the weapon. Improvised weapons are illegal to possess in federal prison and pose a significant risk to the safety of fellow inmates and correctional staff.
The Special Investigation Services branch of the Bureau of Prisons investigated this case. The sentence was imposed by U.S. District Judge James R. Sweeney.
U.S. Attorney Myers thanked Assistant U.S. Attorneys James M. Warden and Jayson W. McGrath, who prosecuted this case.
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Erie Resident Who Led Large-Scale Drug Trafficking Organization Pleads Guilty to Narcotics, Firearms, and Money Laundering ChargesRead the Press Release
JOHNSTOWN, Pa. – A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics, firearms, and money laundering laws, United States Attorney Eric G. Olshan announced today.
John Christopher Bisbee, 44, pleaded guilty before Senior United States District Judge Kim R. Gibson to Counts Two, Three, Thirteen, and Fourteen of the Superseding Indictment.
In connection with the guilty plea, the Court was advised that, from in and around July 2019 to in and around June 2020, in the Western District of Pennsylvania, Bisbee conspired with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine. Bisbee, who led and directed the drug trafficking organization’s activity in Erie and surrounding areas, including New York, was intercepted on a federal wiretap obtaining kilogram quantities of methamphetamine that he distributed to others. Through a source of supply in Atlanta, Bisbee imported dozens of kilograms of methamphetamine at a time, packaged it for final distribution, and provided it to a network of distributors below him to distribute and collect proceeds from the drugs.
During the execution of a search warrant at Bisbee’s residence in June 2020, law enforcement agents seized two handguns and more than 100 rounds of ammunition. Under federal law, Bisbee is prohibited from possessing any firearms or ammunition based on previous felony convictions for drug trafficking. In this case, Bisbee also pleaded guilty to possessing these firearms in furtherance of the instant federal drug trafficking crime.
Bisbee additionally acknowledged that, from in and around July 2019 to in and around June 2020, he conspired with others to commit money laundering by using drug proceeds to purchase real estate with cash.
Judge Gibson scheduled sentencing for October 22, 2024. The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation that led to the prosecution of Bisbee. Additional agencies participating in this investigation included the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service–Criminal Investigation, United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Eleven Men Plead Guilty to Conspiring to Distribute Fentanyl, Methamphetamine and Marijuana in Tennessee and Other StatesRead the Press Release
NASHVILLE – Eleven members of a drug trafficking conspiracy pled guilty to conspiring to distribute and possess with the intent to distribute controlled substances in middle Tennessee, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
Davontay Holt, 30, of Columbia, Tennessee, pled guilty on April 8, 2024
Ricardo Molinero-Alcarez, 29, of Santa Rosa, California, pled guilty on April 9, 2024
Khyre McClain, 21, of Columbia, Tennessee, pled guilty on May 17, 2024
Marcus Johnson, 26, of Santa Rosa, California, pled guilty on May 29, 2024
Ethan Kimes, 22, of Columbia, Tennessee, pled guilty on May 29, 2024
Jahari Armstrong, 22, of Columbia, Tennessee, pled guilty on May 29, 2024
Jaydan Armstrong, 22, of Columbia, Tennessee, pled guilty on May 29, 2024
Mathew Cox, 28, of Santa Rosa, California, pled guilty on June 7, 2024
Tristain Orr, 24, of Columbia, Tennessee, pled guilty on June 17, 2024
Jonny Rodriguez-Gonzalez, 25, Elmira, California, pled guilty on June 17, 2024
Quortez Duncan, 36, of Columbia, Tennessee, pled guilty on June 18, 2024
According to charging and plea documents, agents with the Drug Enforcement Administration and Homeland Security Investigations were investigating the distribution of methamphetamine, marijuana and counterfeit fentanyl-laced Oxycodone tablets with the inscription “M30” which were being shipped from the Santa Rosa, California, area to Tennessee and more than a dozen other states. Subsequent investigation, including surveillance and the review of social media sites and mobile payment records, identified members of the drug distribution network. Law enforcement officers in Columbia, Tennessee, executed several search warrants of the defendants’ residences and recovered loaded firearms and blue tablets inscribed “M30.”
On July 25, 2022, HSI agents seized a package from a UPS Store in Sebastopol, California, which was destined for Nashville. This package contained thousands of counterfeit fentanyl-laced Oxycodone “M30” tablets weighing over two kilograms. The package also contained more than eight pounds of methamphetamine.
On August 9, 2022, HSI agents intercepted two additional packages from the Santa Rosa area which were destined for residences in Nashville. One package contained 472 grams of the counterfeit fentanyl-laced Oxycodone “M30” tablets and the other package contained approximately four pounds of methamphetamine.
The defendants will be sentenced before United States District Judge Waverly D. Crenshaw, Jr., in the spring of 2025. Cox, Johnson, Molinero-Alcarez, McClain, Rodriguez-Gonzalez, and Duncan face up to life imprisonment and a $10,000,000 fine. Holt, Orr, Kimes, Jahari Armstrong, and Jaydan Armstrong face up to 20 years’ imprisonment and a $1,000,000 fine.
This case was investigated by the Drug Enforcement Administration; Homeland Security Investigations; the U.S. Postal Inspection Service; the Federal Bureau of Investigation, Memphis Field Office, Nashville Resident Agency; and the Columbia Police Department. Assistant U.S. Attorneys Ahmed Safeeullah and Rachel Stephens are prosecuting the case.
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Doctor Convicted of Unlawful Distribution of Controlled SubstancesRead the Press Release
A federal jury convicted a Maine doctor today for unlawfully distributing controlled substances, including oxycodone, hydromorphone, and fentanyl.
According to court documents and evidence presented at trial, Dr. Merideth Norris, 53, of Kennebunk, distributed controlled substances to patients at her practice without a legitimate medical purpose and outside the usual course of professional practice. Norris prescribed controlled substances despite the fact that some of these patients suffered from opioid use disorder, tested positive for addictive substances that were not prescribed to them, or appeared to be diverting the drugs into the community. Norris was warned about her prescribing on numerous occasions, including by way of pharmacists who refused to fill prescriptions she wrote and letters from an insurance company covering one of her patients. Walmart pharmacies also issued a “central block,” or a nationwide ban, on filling prescriptions written by Norris. When asked by Maine’s Board of Osteopathic Licensure (the “Board”) to justify her prescribing, Norris submitted an incomplete patient file to the Board, and otherwise deceived the Board about her prescribing practices.
The jury convicted Norris of 15 counts of unlawfully distributing controlled substances. She faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Darcie N. McElwee for the District of Maine; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Special Agent in Charge Jodi Cohen of the FBI Boston Division; Assistant Administrator Thomas Prevoznik of the DEA’s Diversion Control Division; and Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Boston Region made the announcement.
The FBI, DEA, and HHS-OIG investigated the case.
Trial Attorneys Thomas Campbell and Danielle Sakowski of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from Assistant U.S. Attorney Nicholas Scott for the District of Maine.
The Fraud Section partners with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout the country to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Anyone needing access to opioid treatment services can contact HHS-OIG’s Substance Abuse and Mental Health Services Administration 24/7 National Helpline for referrals to treatment services at 1-800-662-4359.
Defendants Sentenced for Shooting at Hopi Police Officers During Car ChaseRead the Press Release
PHOENIX, Ariz. –Two defendants were sentenced by Senior United States District Judge David G. Campbell last week for their role in shooting at Hopi police officers while fleeing from tribal law enforcement. Ryan Adelbert Johnson, 39, of Dilkon, was sentenced to 209 months in prison, followed by three years of supervised release. Mike Duffy, III, 41, of Ganado, was sentenced to 161 months in prison, followed by three years of supervised release.
After a five-day jury trial in September 2023, Johnson and Duffy were each convicted of two counts of Assault with a Dangerous Weapon; Johnson also was convicted of Discharging a Firearm During a Crime of Violence; and Duffy also was convicted of Possession of a Firearm During a Crime of Violence.
In addition to the convictions at trial, Johnson and Duffy, who are convicted felons, both pleaded guilty to one count each of Felon in Possession of a Firearm.
On February 3, 2021, Johnson and Duffy were driving through the Hopi Indian Reservation when they ran a stop sign and nearly collided with a Hopi Law Enforcement Services (HLES) police vehicle. Johnson and Duffy then fled and refused repeated commands by law enforcement to pull over. While Duffy drove, Johnson used an AM-15 rifle to fire multiple shots at the pursuing officers, who narrowly avoided being hit. Johnson and Duffy are enrolled members of the Navajo Nation.
“Too often law enforcement is confronted with gun violence as a part of their duties,” said United States Attorney Gary Restaino. “This sentence sends a message that when the violence is directed at them, it will not be tolerated.”
“This shooting was without justification and threatened the lives of police officers who work every day to keep their community safe,” said Daniel Mayo, acting special agent in charge of the FBI’s Phoenix Field Office. “An attack like this has serious consequences as proven by the sentences handed down to the defendants.”
The Phoenix Field Office of the Federal Bureau of Investigation and Hopi Law Enforcement Services conducted the investigation in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, and the Navajo Division of Public Safety. Assistant U.S. Attorneys Alanna Kennedy and Christina Reid-Moore, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-08057-PCT-DGC
RELEASE NUMBER: 2024-079_Duffy# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Convicted Drug Trafficker Sentenced to 4 Years After Bangor Police Find Him with a Firearm, Drugs During Traffic StopRead the Press Release
BANGOR, Maine: A Bangor man was sentenced today in U.S. District Court in Bangor for being a prohibited person in possession of a firearm and ammunition and to possessing controlled substances with the intent to distribute them.
Chief U.S. District Judge Lance E. Walker sentenced Andrew Blais, 37, to 48 months imprisonment to be followed by three years of supervised release. Blais pleaded guilty on March 15, 2024.
According to court records, in October of 2023, Bangor police officers encountered Blais during a traffic stop and identified an active warrant for his arrest. Officers observed drug paraphernalia in open view in the vehicle and recovered bundles of cash and a loaded handgun on Blais’ person. A further search at the Penobscot County Jail revealed 38 individual bags containing fentanyl concealed underneath his clothing. Blais was prohibited from possessing a firearm or ammunition due to a prior felony drug trafficking conviction.
The Bangor Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Drug Enforcement Administration investigated the case.
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Columbia Man Sentenced to Federal Prison for Gun ChargeRead the Press Release
COLUMBIA, S.C. — Deandre Lamar Davis, 35, of Columbia, was sentenced to more than eight years in federal prison after pleading guilty to felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on May 5, 2021, Columbia Police Department officers arrested Davis on outstanding state arrest warrants for kidnapping and domestic violence. A loaded 9mm pistol was found tucked into Davis’s waistband along with approximately 2.8 grams of crack cocaine in his pants pocket. This was the third time Davis was arrested while in unlawful possession of a firearm or illegal drugs since 2020. Davis had prior convictions for aggravated assault and battery, burglary, possession with intent to distribute marijuana, domestic violence, second degree and assault and battery, second degree. At the time of the May 2021 incident, Davis was on state probation for his most recent assault and battery conviction.
United States District Judge Sherri A. Lydon sentenced Davis to 100 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
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 (ATF) and the Columbia Police Department. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Colorado man pleads guilty in crypto investment fraud schemeRead the Press Release
ALEXANDRIA, Va. – A Colorado man pled guilty today to wire fraud relating to his scheme to fleece investors through a series of misrepresentations and high-pressure tactics.
According to court documents, on Sept. 4, 2023, Robert Wesley Robb, 46, advertised on a social media chat an opportunity to invest in a Maximum Extractable Value (MEV) cryptocurrency trading bot. Robb invited individuals that had “$100-$200k+ sitting around” and wanted to “participate in some next-level MEV stuff” to send him a direct message to learn more.
On Sept. 7, 2023, Investor A, a resident of Brambleton, Virginia, sent a direct message to Robb and discussed the opportunity. Robb told Investor A that the investment must total at least $100,000 and described the MEV bot as capable of delivering very high returns. Robb insisted that Investor A must invest within a “day or two,” because he expected the bot to be operational “soon (likely early next week).”
Robb provided Investor A an Ethereum virtual currency address to send his initial investment and on Sept. 8, 2023, Investor A sent Robb $100,000.
On Oct 27, 2023, Robb falsely told Investor A that a new investor was interested in making a $300,000 investment that would dilute Investor A’s profits, and that he was giving Investor A the chance to make an additional investment to insulate Investor A from dilution. In truth, Robb had already spent Investor A’s initial investment on personal expenses. On Oct. 28, 2023, Investor A sent an additional $50,000 to Robb’s Ethereum virtual currency address.
On Nov. 8, 2023, Robb falsely claimed that the bot had not yet conducted any transactions because it was still “warming up.” Investor A requested a refund from Robb because there were neither any returns nor evidence Robb had created the MEV bot.
The government’s investigation identified more than ten investors in Robb’s scheme alleging losses totaling more than $2.2 million. Despite Robb’s representations that investor funds would be used as trading capital for the MEV bot, they were funneled instead to Robb’s virtual currency exchange accounts and bank accounts. The vast majority of the funds were used for personal expenses, including airline tickets, vacations, gambling, cars, and other luxury items. For example, Robb used $204,423 to lease an executive suite at the Denver Broncos’ Mile High Stadium, $117,570 to purchase a 2023 Jeep Wagoneer, and $46,914 to send his girlfriend and her extended family to a resort in the Bahamas.
Robb is scheduled to be sentenced Oct. 2 and faces up to 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after Senior U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorneys Zoe Bedell and Katherine E. Rumbaugh are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-141.
Chicago Consultant Sentenced to a Year in Federal Prison for Tax OffensesRead the Press Release
CHICAGO — A Chicago consultant was sentenced today to a year in federal prison for underreporting and failing to file federal income taxes.
ANNAZETTE COLLINS, 62, of Chicago, willfully filed a false individual tax return for the calendar years 2014 and 2015, and willfully failed to file an individual income tax return for the calendar year 2016. Collins also willfully failed to file a corporate income tax return for the calendar year 2016 on behalf of her consulting and lobbying business, Chicago-based Kourtnie Nicole Corp. Prior to operating her consulting business, Collins served in the Illinois General Assembly as a Representative and Senator.
A jury earlier this year convicted Collins on federal tax charges. In addition to the prison sentence, U.S. District Judge Jorge L. Alonso ordered Collins to pay $110,852 in restitution.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Jason Bushey, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorneys Michelle J. Parthum and Amarjeet S. Bhachu.
Charlotte Man Is Sentenced to Eight Years in Prison for Possession of A Firearm by A FelonRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that Bryan Dequan Ledbetter, 48, of Charlotte, was sentenced on Monday to 96 months in prison for possession of a firearm by a convicted felon.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to documents filed in the case and court proceedings, on September 25, 2022, in the early morning hours, Ledbetter used a bedroom window to enter the home of a female victim who was known to Ledbetter. Upon hearing Ledbetter attempting to enter her home, the victim called 911. While she was on the phone with the dispatcher, the victim managed to escape and run toward the neighbor’s home. Ledbetter caught up with the victim on the neighbor’s porch, placed his hands around the victim’s neck and began to squeeze her neck. Ledbetter then dragged the victim on the neighbor’s yard while keeping his hands around her neck. Court records show that, while Ledbetter held the victim down, he pulled out a firearm and fired into the air. Ledbetter then dragged the victim in the nearby bushes where he placed the muzzle of the firearm against the victim’s head and under her neck. When officers arrived at the scene, they ordered Ledbetter to surrender. At first, Ledbetter refused and continued to press his firearm against the victim’s head. Ledbetter eventually threw down his firearm and he was arrested on scene.
On March 14, 2023, Ledbetter pleaded guilty to possession of a firearm by a convicted felon. Ledbetter has prior state convictions that include assault on a female and felony assault by strangulation, and he is prohibited from possessing a firearm or ammunition.
Ledbetter is in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Chairman of Publicly Traded Health Care Company Convicted of Insider TradingRead the Press Release
A federal jury in Los Angeles convicted the former CEO, executive chairman, and chairman of the board of directors of Ontrak Inc., a publicly traded health care company, for engaging in an insider trading scheme using Rule 10b5‑1 trading plans.
“When Terren Peizer learned significant negative news about Ontrak, he set up Rule 10b5-1 trading plans to sell shares before the news became public and to conceal that he was trading on inside information,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “With today’s verdict, the jury convicted Peizer of insider trading. This is the Justice Department’s first insider trading prosecution based exclusively on the use of a trading plan, but it will not be our last. We will not let corporate executives who trade on inside information hide behind trading plans they established in bad faith.”
“Corporate executives and other insiders hold major power in our economy, but with that power comes responsibility,” said U.S. Attorney Martin Estrada for the Central District of California. “It is important that executives, such as this defendant, be held accountable when they line their own pockets at the expense of shareholders. That is why I created our office’s Corporate Crime and Securities Fraud Strike Force. Today’s verdict sends a clear message that everyone, including corporate executives, must abide by the law.”
According to court documents and evidence presented at trial, Terren S. Peizer, 64, a resident of Santa Monica, California, and Puerto Rico, avoided more than $12.5 million in losses by entering into two Rule 10b5-1 trading plans while in possession of material non-public information concerning the serious risk that Ontrak’s then-largest customer would terminate its contract. In May 2021, Peizer entered into his first Rule 10b5-1 trading plan shortly after learning that the relationship between Ontrak and the customer was deteriorating and that the customer had expressed serious reservations about continuing its contract with Ontrak. Peizer later learned that the customer informed Ontrak of its intent to terminate the contract. Then, in August 2021, Peizer entered into his second Rule 10b5-1 trading plan approximately five minutes after Ontrak’s chief negotiator for the contract informed Peizer that the contract likely would be terminated.
“As a CEO, Mr. Peizer abdicated his responsibilities by using his position to conceal trading on material non-public information in order to avoid the losses shareholders suffered,” said Acting Assistant Director in Charge Krysti Hawkins of the FBI Los Angeles Field Office. “The FBI is committed to investigating illegal trading practices and holding offenders accountable in order to ensure fairness and trust in the marketplace.”
In establishing his Rule 10b5-1 plans, Peizer refused to engage in any “cooling-off” period—the time between when he entered into the trading plan and when he sold Ontrak stock—despite warnings from multiple brokers, Ontrak’s Insider Trading Compliance Officer, and several attorneys. Instead, Peizer began selling shares of Ontrak on the next trading day after establishing each plan. On Aug. 19, 2021, just six days after Peizer adopted his second Rule 10b5-1 plan, Ontrak announced to the public that the customer had terminated its contract and Ontrak’s stock price declined by more than 44%.
The jury convicted Peizer of one count of securities fraud and two counts of insider trading. He is scheduled to be sentenced on Oct. 21 and faces a maximum penalty of 25 years in prison on the securities fraud count and 20 years in prison on each of the insider trading counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is part of a data-driven initiative led by the Criminal Division’s Fraud Section to identify executive abuses of 10b5-1 trading plans. A Rule 10b5-1 trading plan, which allows a corporate insider of a publicly traded company to set up a plan for selling company stock, can offer an executive a defense to insider trading charges. However, the defense is unavailable if the executive is in possession of material, non-public information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5-1.
The FBI investigated the case. The Justice Department appreciates the substantial assistance of FINRA’s Criminal Prosecution Assistance Group.
Trial Attorneys Matthew Reilly and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ali Moghaddas for the Central District of California are prosecuting the case.
Central Pennsylvania Man Sentenced to Prison for Hobbs Act RobberiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that U.S. District Judge Christopher C. Conner sentenced Kyle Jaden Morales, age 21, of Harrisburg, Pennsylvania to 230 months’ imprisonment following his conviction for robberies of businesses engaged in interstate commerce (Hobbs Act robbery), bank robbery, and brandishing a firearm during and in relation to a crime of violence.
According to United States Attorney Gerard M. Karam, Morales previously pleaded guilty to these offenses, which involved Morales’ robberies of McDonald’s restaurants, Sheetz convenience stores, and United Bank in March 2022 during a 12-day crime spree in the states of Pennsylvania, Georgia, North Carolina, and South Carolina. As part of these robberies, Morales pointed a handgun at employees and took money by means of actual and threatened force, violence, and fear of injury. Judge Conner also ordered Morales to pay $5,094 in restitution to the McDonald’s Corporation, Sheetz, Inc., and United Bank, to pay a special assessment of $400, and to serve five years of supervised release after he completes his prison sentence.
The case was investigated by the Federal Bureau of Investigation, the East Pennsboro Township Police Department, and the Pennsylvania State Police, and prosecuted by Assistant U.S. Attorneys David C. Williams and Samuel S. Dalke.
COVID-19 stimulus check theft sends Houston resident to prisonRead the Press Release
HOUSTON – A 50-year-old man has been sentenced for committing fraud in connection with stimulus checks, announced U.S. Attorney Alamdar S. Hamdani.
Ndem Oduu pleaded guilty March 14.
U.S. District Judge Charles R. Eskridge has now ordered Oduu to serve 45 months in federal prison to be immediately followed by three years of supervised release. Oduu was also ordered to pay restitution in the amount of $1,867. At the hearing, the court heard additional evidence that showed Oduu possessed thousands of pages of documents in his apartment related to his efforts to defraud the government through fraudulent loans and tax credits. In handing down the sentence, the court noted he hoped Oduu would lead a productive life upon release.
At the time of his plea, Oduu admitted to appropriating a victim’s Economic Impact Payment, also referred to as a stimulus check, in the amount of $1,200 and depositing the check into his own account.
The U.S. government offered these payments to the general public in response to the economic harm of the COVID-19 pandemic.
Oduu has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Social Security Administration-Office of Inspector General and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.
CEO of Health Care Center Indicted for Stealing Federal Grant MoneyRead the Press Release
LAS VEGAS – A federal grand jury indicted the Chief Executive Officer of Silver State Health Services, LLC, for allegedly stealing federal grant funding intended for the health care center to provide services to indigent persons.
According to allegations contained in the indictment, David Ryan Linden, 35, was the Chief Executive Officer of Silver State Health Services, LLC, a not-for-profit limited liability corporation in Las Vegas. On behalf of Silver State Health Services, LLC, Linden applied for federal grant money from the U.S. Health Resources and Services Administration. As part of the grant application, Linden represented that $735,200 of the budgeted costs would be used to meet projected personnel costs for the health center. In February 2019, Silver State Health Services, LLC was awarded $735,200 in grant funding.
As alleged, on June 10, 2019, Silver State Health Services, LLC withdrew in excess of $357,000 from the grant and deposited the funds into a bank account belonging to Silver State Health Services, LLC. Then, on June 16, 2019, Linden became a signatory on a bank account belonging to a company named Freedom Infusions, LLC, which was not affiliated with the grant or Silver State Health Services, LLC. Further alleged, on June 24, 2019, Linden transferred $340,000 of federal grant funds from the Silver State Health Services, LLC bank account to the bank account for Freedom Infusions. The $340,000 was allegedly used for the benefit of others.
A jury trial has been scheduled to begin on August 27, 2024, before United States District Judge Jennifer A. Dorsey. If convicted, Linden faces the maximum statutory penalty of 10 years in prison.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI and the U.S. Department of Health and Human Services, Office of Inspector General investigated the case. Assistant United States Attorneys Steven Myhre and Justin Washburne are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Beebe Man Sentenced to 35 Years in Federal Prison for Production of Child Pornography, Transfer of Obscene Material to a Minor, and Attempted Sex Trafficking of A MinorRead the Press Release
LITTLE ROCK—Zachary Bradley will spend 35 years in federal prison for production of child pornography, transfer of obscene materials to a minor, and attempted sex trafficking of a minor. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on Thursday, June 20, 2024, by Chief United States District Judge Kristine G. Baker.
On approximately October 6, 2021, the minor victim’s stepfather made a report to the Beebe Police Department that the minor victim was raped by Bradley. An investigation revealed that Bradley provided the minor victim with marijuana and alcohol and that he passed out. Once the minor victim woke up, Bradley was performing sexual acts on him. Bradley told the minor victim that if he would continue to engage in sex acts with him, he would give him an allowance.
The investigation further revealed that Bradley had multiple videos on his phone that contained child pornography of another minor, believed to be approximately 13 years old. Another video located on Bradley’s phone was a FaceTime conversation between Bradley and the minor. The video depicted a display of the minor’s genitals to Bradley during the conversation. An additional video from a FaceTime conversation depicted Bradley with his shorts pulled down to reveal his genitals to the minor.
On December 8, 2021, Bradley, 33, of Beebe, was indicted by a federal grand jury on seven counts: Counts One, Two, Four, Five, and Six: production of child pornography, Count Three: transfer of obscene material to a minor, and Count Seven: attempted sex trafficking of a minor. On July 27, 2023, Bradley, pleaded guilty to all seven counts in the Indictment.
The maximum penalty Bradley faced on Counts One, Two, Four, Five, and Six was not less than 15 years and not more than 30 years in prison. The maximum penalty Bradley faced on Count Three was not more than 10 years in prison. For Count Seven, Bradley faced a maximum penalty of not less than 10 years to life in prison.
Chief Judge Baker also sentenced Bradley to a lifetime of supervised release. Bradley faced a maximum of supervised release of five years to life and a fine of $250,000. There is no parole in the federal system.
The investigation was conducted by the Federal Bureau of Investigation, with assistance from the Beebe Police Department and Arkansas State Police Crimes Against Children Division. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
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Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
X (formerly known as Twitter):
@USAO_EDAR
Baltimore Man Sentenced to Fourteen Years in Federal Prison for Committing Armed Robberies of Three Cellphone Stores in Howard County, Anne Arundel County and Baltimore County, MarylandRead the Press Release
Baltimore, Maryland – United States District Judge Brendan A. Hurson today sentenced Gary Leon Holloway, age 46, of Baltimore, Maryland, to fourteen years in federal prison, followed by four years of supervised release, for the armed robberies of cellphone stores located in Howard County, Anne Arundel County, and Baltimore County, Maryland.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division, Chief Gregory Der of the Howard County Police Department, Chief Amal E. Awad of the Anne Arundel County Police Department, Chief Robert McCullough of the Baltimore County Police Department and Commissioner Richard Worley of the Baltimore Police Department.
According to his guilty plea, in January 2020, Holloway and his co-conspirators planned and committed armed robberies of three commercial businesses. Specifically, on January 4, January 15, and January 22, Holloway and at least one of his co-defendants robbed cellphone stores in Ellicott City, Glen Burnie, and Dundalk, Maryland, respectively. Holloway brandished a gun in each robbery and he and his co-defendant stole cellphones and other electronic devices. In the first robbery, Holloway and his co-defendant also stole the wallets of two employees and in the third robbery, they forced the employees to open and empty the safe and stole cash in addition to the cellphones and electronic devices. After the third robbery, Holloway and two co-defendants were arrested in Baltimore County.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Barron commended the ATF, the Howard County Police Department, the Anne Arundel Police Department, the Baltimore County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys John W. Sippel, Jr., and Adey Adenrele, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Ava Man Sentenced to 58 Years in Prison for Sexual Exploitation of Two Child VictimsRead the Press Release
SPRINGFIELD, Mo. – An Ava, Mo., man has been sentenced in federal court after images of his repeated sexual assaults of two child victims were discovered by workers while they were demolishing his former residence.
Harold Lloyd Blair, Jr., 67, was sentenced by U.S. District Judge Roseann Ketchmark on Thursday, June 20, to 58 years in federal prison without parole.
On Jan. 30, 2024, Blair pleaded guilty to two counts of the sexual exploitation of a minor. Blair has also been implicated in the sexual abuse of two additional child victims.
The investigation began on Dec. 2, 2022, when workers employed by Douglas County, Mo., were tearing down Blair’s former residence after he sold it to the county. The workers discovered a filing cabinet that contained numerous pages of images of a young girl engaged in sexual acts with an older man. The workers contacted the Douglas County, Mo., Sheriff’s Department and Blair was questioned by investigators.
Blair admitted that he was the man portrayed in the photos, which were taken in 2012 and 2013, when the two child victims each were approximately 11 to 12 years old. In total, there were 52 photographs that were taken by Blair with a digital camera and printed from his computer. Blair told investigators that, if he had remembered those photographs were in the house, he would have destroyed them.
Investigators also searched Blair’s storage unit and found more images of child pornography. Investigators found a total of 743 images of child pornography in the house and storage unit, most of which were images of the sexual assault of two child victims.
Blair admitted that he sexually assaulted one of the child victims two to three times a day. Blair showed adult pornography to each of the child victims so they could imitate what was happening in the videos.
Blair also admitted to investigators that he sexually abused a 13-year-old girl whom he moved from state to state in an attempt to find a state that would allow him to marry a minor without her parents’ consent. Another victim told investigators that Blair sexually abused her when she was approximately three years old.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Douglas County, Mo., Sheriff’s Department, Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the West Plains, Mo., Police Department, with assistance from the Douglas County, Mo., Prosecuting Attorney.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Attorney General Merrick B. Garland Statement on Supreme Court’s Decision in United States v. RahimiRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the Supreme Court’s decision in United States v. Rahimi:
“The Supreme Court’s decision today in United States v. Rahimi upholds Congress’s longstanding prohibition on the possession of firearms by people subject to domestic-violence restraining orders. That law protects victims by keeping firearms out of the hands of dangerous individuals who pose a threat to their intimate partners and children.
As the Justice Department argued, and as the Court reaffirmed today, that commonsense prohibition is entirely consistent with the Court’s precedent and the text and history of the Second Amendment.
The Justice Department will continue to enforce this important statute, which for nearly 30 years has helped to protect victims and survivors of domestic violence from their abusers. And we will continue to deploy all available resources to support law enforcement, prosecutors, courts, and victim advocates to address the pervasive problem of domestic violence.”
Thursday 20 June 2024
Yosemite National Park Rape ChargedRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Nathan Baptista, 36, charging him with aggravated sexual abuse, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 31, 2024, Baptista forcibly raped and strangled a fellow Yosemite Hospitality employee after meeting her that night.
This case is the product of an investigation by the National Park Service. Assistant U.S. Attorney Arin C. Heinz is prosecuting the case.
If convicted, Baptista faces a maximum statutory penalty of life in prison and 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.
Woodbridge fentanyl dealer pleads guilty in death of teenage victimRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man pled guilty today to distribution of fentanyl resulting in death.
According to court documents, on April 23, 2022, Maurice Lamont Gordon, 37, sold counterfeit pressed pills containing fentanyl that resulted in the overdose death of a 15-year-old victim. The victim and another individual walked to Gordon’s apartment to purchase “percs,” a street name for Percocet or counterfeit pills containing fentanyl and made to resemble Percocet and other legitimate oxycodone pills. The victim provided money to the other individual to make the purchase and was provided with his share of the “percs” sold by Gordon. After the purchase, the victim returned home and never left.
The following day, the victim was found nonresponsive in his home and was pronounced dead by Prince William County Emergency Medical Services. Officers with the Prince William County Police Department found narcotics paraphernalia near the victim’s body, including burnt aluminum foil with fentanyl residue. The Virginia Office of the Chief Medical Examiner ruled that the victim died of Accidental Fentanyl Intoxication after an autopsy found fentanyl and despropionylfentanyl, a metabolite of fentanyl, in the victim’s blood with no other drugs or alcohol present.
On Oct. 12, 2022, law enforcement executed a search warrant on Gordon’s residence. During the search, law enforcement seized marijuana, cocaine, a large quantity of counterfeit pressed pills containing fentanyl, a Polymer 80 semi-automatic “ghost gun” bearing no serial number, and ammunition. The seized pills totaled over 1,100 and weighed approximately 130 grams.
Gordon is scheduled to be sentenced Oct. 3 and faces a mandatory minimum penalty of 20 years and up to life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David J. Scott, Special Agent in Charge of the FBI Washington Field Office’s Criminal and Cyber Division; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Peter Newsham, Chief of Prince William County Police, made the announcement after U.S. District Judge Michael S. Nachmanoff accepted the plea.
Special Assistant U.S. Attorney Lauren Hahn is prosecuting the case. Assistant U.S. Attorney Kristin Starr assisted in the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-138.
Weatherly Man Charged with Making False Statements During the Attempted Purchase of a Firearm and Unlawful Possession of a FirearmRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Feliciano-Seize, age 60, of Weatherly, Pennsylvania was indicted on June 18, 2024, by a federal grand jury for making a false statement during the purchase of a firearm and unlawful possession of a firearm.
According to United States Attorney Gerard M. Karam, the indictment alleges that Feliciano-Seize, who had previously been sentenced to 10 years of imprisonment for an armed robbery conviction, attempted to purchase an assault rifle by falsely representing that he had never been convicted of a crime punishable by a term of imprisonment exceeding one year. The indictment further alleges that in 2023, Feliciano-Seize unlawfully possessed a firearm.
This matter was investigated by the Federal Bureau of Investigations (FBI). Assistant United States Attorney Sarah R. Lloyd is prosecuting the case.
The maximum penalty under federal law for making a false statement during the attempted purchase of a firearm is 10 years imprisonment, 3 years supervision, and a fine. The maximum penalty under federal law for unlawful possession of a firearm is 15 years imprisonment, 3 years supervision, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Waltham Man Sentenced to 15 Years in Prison for Attempted Sex Trafficking of A ChildRead the Press Release
BOSTON – A Waltham man was sentenced today in federal court in Boston for attempted sex trafficking of a 12-year-old girl.
Misael Fabian Medina, 38, was sentenced by U.S. District Court Judge Denise J. Casper to 15 years in prison. Medina will be subject to deportation proceedings to Guatemala upon completion of his sentence. In March 2024, Medina was convicted by a federal jury of one count of attempted sex trafficking of a child; and one count of attempted coercion and enticement.
“Children are sold for sex far too often in our society. Our office has prosecuted several individuals who have trafficked minors, often highly vulnerable girls. This prosecution is squarely aimed at addressing the demand that fuels this despicable practicing of selling sex with kids. Medina showed up at a hotel with $200 in his hand in order to have sex with a 12-year-old girl. This sting operation should send a message to every person using a smart phone to troll for sex with minors, that the federal government is out there aggressively enforcing the laws against this reprehensible conduct,” said Acting United States Attorney Joshua S. Levy.
“Misael Fabian Medina was ready to pay to sexually abuse a 12-year-old child before he was arrested by HSI special agents. Today’s sentence will keep him off the streets and away from children he could harm,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England. “Sex trafficking is driven by demand and we work every day with our partners to investigate and bring predators like Medina to justice.”
In November 2022, Misael Medina responded to an online advertisement offering sex with two young girls. Through an ensuing text conversation with undercover agents who were posing as the seller of the two girls, Medina agreed to pay $200 to engage in a sex act with a 12-year-old girl. Shortly thereafter, Medina went to a greater Boston hotel to meet with the purported seller. Once at the hotel, he met with an undercover agent and confirmed he had the money to pay for the commercial sex act. During that meeting, Medina was arrested and found to be in possession of a box of condoms.
If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].
Acting U.S. Attorney Levy and SAC Krol made the announcement today. Assistant U.S. Attorneys Brian A. Fogerty and Jason A. Casey of the Criminal Division prosecuted the case.
Virginia Man Sentenced to over Eleven Years in Federal Prison for Attempting to Entice A Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – U.S. District Judge Wendy W. Berger has sentenced Peter Papuchis (43, Norfolk, VA) to 11 years and 3 months in federal prison for attempted online enticement of a minor to engage in sexual activity. Papuchis was also ordered to serve a 20-year term of supervised release after his release from prison and register as a sex offender. Papuchis entered a guilty plea on February 21, 2024. He has been in federal custody since his arrest on May 4, 2023.
According to court documents, on April 15, 2023, a federal agent using an undercover persona began conducting an online undercover operation. The agent was using a free mobile application that permits individual users to meet online, engage in conversation through private messages, and share photographs and videos. The agent was using the persona of the parent of an 11-year-old girl. In his undercover capacity as a “parent” of the “minor child,” the agent posted a message within the group that Papuchis responded to privately. Papuchis told the undercover agent, “I’m a perv with pedo tendencies.” The “parent” exchanged several private messages with him on this same day and continued until April 22, 2023. The same day, Papuchis provided his username on another chat application, and they then began messaging on that application until April 23, 2023. During their chat conversation, Papuchis detailed his interest in meeting the “minor child” of the “parent” and engaging in sexual activity with the “minor child.” On April 23, 2023, Papuchis traveled to meet the “parent” of the “minor child” in St. Johns County. He was arrested after arriving at the predetermined meeting location and admitted to engaging in the chat conversations with the “parent” of the child and planning to engage in sexual activity with the “child.”
This case was investigated by the St. Johns County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ashley Washington.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Brings Federal False Claims Act Suit Against Pain Management Practice and Its PrincipalRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that the United States has filed a civil complaint against the Center for Interventional Pain and Spine, LLC (“CIPS”) and its principal, Dr. Chee H. Woo, in the United States District Court for the District of Delaware. The United States alleges that CIPS and Dr. Woo violated the False Claims Act by submitting claims to federal and state healthcare programs for thousands of diagnostic tests and services that were not ordered by healthcare providers, not medically necessary, and sometimes never performed.
CIPS is a pain management practice with multiple locations in Delaware and Pennsylvania. The complaint alleges that, from at least July 2018 through at least 2021, CIPS and Dr. Woo devised a scheme to bill Medicare, Medicaid, and the Federal Employee Health Benefit Program (“FEHB”) for medically unnecessary urine drug tests. The complaint further alleges that, between 2019 and 2021, CIPS and Dr. Woo caused Medicare, Medicaid, and FEHB to pay thousands of claims for psychological and neuropsychological testing that was not performed or was not medically necessary.
As a condition of reimbursement, Medicare, Medicaid, and FEHB each require participating providers to certify that all services rendered are necessary for the diagnosis and treatment of patients. As alleged in the complaint, CIPS and Dr. Woo developed and implemented a urine drug testing protocol that required all CIPS’ patients to submit to urine drug tests every three months, regardless of whether the testing was supported by individual patient or clinical need. The complaint alleges that CIPS’ health care providers did not order the urine drug tests and, in many cases, were not aware that the tests had been ordered, and that the results of the tests were not used to inform the diagnosis or treatment of CIPS’ patients. As a result, these tests were medically unnecessary, and CIPS’ certifications that it complied with Medicare, Medicaid, and FEHB requirements were false.
The complaint further alleges that CIPS submitted thousands of false claims for psychological and neuropsychological tests that were not performed. Instead, as alleged, CIPS asked patients to self-complete health screening questionnaires that were ineligible for reimbursement as psychological and neuropsychological tests. CIPS then allegedly failed to use the results of these questionnaires to treat patients, even when the results indicated that medical interventions were warranted.
“Providers and entities that participate in federal health care programs must comply with the rules intended to protect the integrity of those public programs,” U.S. Attorney Weiss said. “Billing federal health care programs for services that are not medically necessary and that are not actually provided undermines the quality of patient care and increases the costs of these taxpayer funded programs. We are committed to holding accountable those medical providers who seek to exploit these programs for their own benefit. Today’s civil complaint demonstrates that this office will aggressively work to recover public money from those who fraudulently seek to overcharge the federal government.”
The allegations in the complaint were identified during a government investigation that arose from a proactive analysis of Medicare claims data.
The investigation and litigation are being handled by Assistant United States Attorneys Shamoor Anis and Jacob Laksin.
The complaint contains allegations only, and there has been no determination of liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 24-cv-711-JLH.
United States Attorney’s Office Recognizes World Elder Abuse Awareness DayRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Carla B. Freedman joined national, state, local, and Tribal leaders in recognizing World Elder Abuse Awareness Day (WEAAD) on June 15, 2024. Since 2006, WEAAD has been commemorated to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk.
Highlighting the partnership between law enforcement and the public, U.S. Attorney Freedman recorded a message highlighting the need for continued attention to address elder abuse and the work her office has done to address financial fraud that victimizes older Americans, along with enforcement efforts to address grossly substandard care in nursing homes.
United States Attorney Carla Freedman stated: “Elder abuse is rampant and, unfortunately, it comes in many forms. My office will continue to work with our law enforcement partners to promote awareness of elder abuse and to bring criminal and civil actions against those who prey on older Americans.”
Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.
The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration impostor schemes, scammers impersonate government administrators and falsely report suspicious activity to request that the victims provide their Social Security number for confirmation. In tech support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services. In lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.
To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.
The U.S. Attorney’s Office for the Northern District of New York continues to work with federal, state, local, and Tribal law enforcement partners to investigate and prosecute elder abuse crimes.
Representative past examples include the following:
- In May 2024, the Secret Service seized a web domain, used in a “Pig Butchering” Scheme, which used dating applications and social media websites to direct victims to fraudulent cryptocurrency platforms.
- In May 2024, the United States and the State of New York announced the recovery of $6.3 million in restitution, which will go to the victims of an investment advisor and attorney who defrauded their clients.
- In October 2023, JoAnne Natalie was sentenced to 3 months in jail for misappropriating the funds of a veteran as his appointed fiduciary.
- In February 2023, four individuals paid $7,168,000, and were excluded from federal healthcare programs, for providing worthless services to nursing home residents
- In January 2023, Kirtankumar Dalwadi was sentenced to 15 months in prison for his role in a law enforcement impersonation scheme.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
U.S. Attorney’s Office, FBI Recover Millions for Elderly Fraud VictimsRead the Press Release
NEWS RELEASE SUMMARY – June 20, 2024
SAN DIEGO – Because of a new and aggressive effort to thwart criminals who target seniors, the U.S. Attorney’s Office and the San Diego FBI have recovered more than $3 million lost by victims of sophisticated fraud schemes that primarily targeted the elderly.
The ongoing operation, launched at the beginning of the year, is a collaboration led by the U.S. Attorney’s Office and the FBI with assistance from state and local agencies. The operation uses a data-driven approach to target and seize money on behalf of victims of fraud. Since January 2024, investigators have obtained over 40 seizure warrants written for more than $5.6 million in seizures, with $3,339,273.58 recovered so far.
“By getting reports of suspected fraud early, we have been able to interrupt millions of dollars in transactions and recover victims’ money before it’s too far gone,” said U.S. Attorney Tara McGrath. “We are using every tool at our disposal to support victims of these sophisticated scams, and bring those who prey on the elderly to justice. But our efforts depend on early reporting – so if you think you may have been contacted by a scammer, report it immediately.”
“It is imperative that we are relentless in our fight against scammers who seek to defraud our most vulnerable citizens,” said FBI San Diego Acting Special Agent in Charge Jamie Arnold. “Our best defense is educating the public about how to avoid becoming a victim of these schemes, and encouraging those that fall victim to a scam to immediately report it to law enforcement.”
June 15 was World Elder Abuse Awareness Day, meant to draw attention to the abuse and neglect affecting the older generations. Approximately one in ten people over the age of 60 have experienced some form of elder abuse, including financial exploitation. And such crimes are still widely underreported.
Cyber-enabled fraud is a nationwide menace, but it uniquely impacts California, including the citizens of the Southern District of California. According to the recently published 2023 FBI IC3 report, in 2023, California led the nation in both number of victims (more than 77,000) and the amount of victim loss ($2.1 billion). But population alone is not the reason for these troubling statistics. While California has 30 percent more population than Texas, the next most populous state, California has 63 percent more victims and more than double the victim loss in comparison.
Some recent prosecutions related to schemes that victimized seniors:
- United States v. Xilin Sun, 24CR1007-BTM - Man Charged in $1.49 Million Scam Involving Bitcoin ATM Deposits and Bulk Gold Purchases; Victim is Retiree who Lost Life Savings
- United States v. Jiaci Liu, 24MJ1929-DDL - Man Charged in Scams Targeting Seniors
In terms of loss amounts, cryptocurrency investment scams have the highest loss amounts. These schemes involve victims being targeted through messages on mobile messaging apps or social media. It starts as a text message or a chat message from a stranger, often with an attractive profile photo, with a simple “hello” or what seems like confusion about why your phone number is in the person’s contacts. Once a victim responds to these messages, the conversation is steered over time to an online investment. After building the trust of the victim, the scammers suggest that they can show the victim how to make money by investing online in cryptocurrency, for example. In reality, the victim unknowingly transfers money to the scammers, who first pretend that the victim is making incredible gains, and then ultimately disappear with the money.
In terms of number of victims, the most prevalent scams are tech support/government impersonation/bank impersonation scams. These scams specifically target victims over 60 years old. These scams, alone or layered on top of one another, involve unsolicited pop-up ads on a computer or spam emails or phone calls. The scam may involve allegations that the victim’s computer is compromised. In other instances, victims receive emails claiming the victim made a purchase or subscribed to some service the victim did not subscribe to. Victims are then directed to call a phone number to address the issue. When the victim calls, they unwittingly connect to a scam call center that often then instructs the victim to download commercially available remote desktop software, which the scammers use to perpetuate the fraud. Ultimately, victims are defrauded into sending wire transfers, bulk cash in express mail packages, or to purchase gift cards for the scammers. Once a victim is successfully scammed, they are often repeatedly targeted until they no longer have any money. For that reason, it is critical for victims to report the scams to the FBI IC3 (www.ic3.gov), as well as local law enforcement.
The last major category of scams affecting Americans are business email compromise (“BEC”). These scams involve spoofing an email address of a business, such as a realtor or escrow company or some other entity owed significant amounts of money. The scammers then pretend to be that business by creating email addresses that are very similar to the legitimate business’s email address. Victims are then told that the wire instructions have been changed and are instructed to wire money to the new account. In reality, victims are defrauded out of thousands (often hundreds of thousands) of dollars when they send the wire transfer to the scammers’ bank accounts. Individuals involved in purchases of real estate are particularly vulnerable, since they are often dealing with realtors and escrow companies on a one-off basis and may not notice the person emailing the wire instructions is a fraud. If you receive wire instructions, especially involving high dollar amounts, it is best to confirm those instructions are real by contacting the other parties in the transaction by phone and using phone numbers you have already verified.
The U.S. Attorney’s Office requests that the following warnings be distributed or announced to the general public in an effort to engage and educate those who may be targeted:
- Legitimate companies DO NOT typically seek to access to computers or phones remotely, that is, you should not be asked to share your computer screen with a legitimate company.
- Legitimate companies DO NOT request that customers provide User ID or Passwords for the representative to log into your account for you.
- Legitimate companies DO NOT ask customers to send cash through the mail, deliver gold bars or precious metals, or make deposits into cryptocurrency ATMs.
- Legitimate companies DO NOT ask customers to mail money or wire funds in order to refund alleged overpayments.
If you are asked to do any of these things, HANG UP the phone.
If you are concerned – HANG UP. It is ok to GET OFF THE PHONE AND CALL A FRIEND OR FAMILY MEMBER TO DOUBLE CHECK if a call is suspicious.
A legitimate company will want you to be sure and careful.
If you think you’ve been contacted by a scammer, report it quickly at IC3.gov. There is a team standing by. The faster the report comes in, the more likely we are to stop the transaction and recover your money.
Ways to help prevent elder abuse and neglect:
• Listen to older adults and their caregivers to understand their challenges and provide support.
• Check-in on older adults who may have few friends and family members.
• Look for unusual financial transactions – unexplained withdrawals, purchases of gold bars or cryptocurrency, or uncharacteristic efforts to wire large amounts of money.
• And report abuse or suspected abuse to local adult protective services, long-term care ombudsman, or the police.
For other non-life-threatening emergencies, call the National Elder Fraud Hotline at 1-833-FRAUD-11, or go to the Department of Justice’s Elder Justice Initiative website for more information:
www.justice.gov/elderjustice.
U.S. Attorney's Office Highlights Efforts to Enhance Community Safety During the Summer Months Through Prosecutions, Partnerships and PreventionRead the Press Release
CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King announced the U.S. Attorney’s Office’s efforts to enhance safety across communities in Western North Carolina, especially during the summer months when violent crime historically increases. These efforts include federal prosecutions, collaborations with law enforcement and local communities, and proactive prevention programs aimed at strengthening public safety.
“We are closely monitoring a potential increase in criminal activity during the summer months,” said U.S. Attorney King. “My Office is fully committed to protecting our neighborhoods by identifying and prosecuting violent offenders, armed drug traffickers, and felons illegally possessing firearms, and leveraging the new criminal provisions of the Bipartisan Safer Communities Act to pursue charges against straw gun purchasers and gun traffickers. Our dedication to community safety extends far beyond the courtroom. We are actively collaborating with our federal, state, local, and Tribal law enforcement partners to identify cases for federal prosecution, provide essential training, and utilize technology to combat violent crime. Furthermore, we are enhancing community involvement by partnering with organizations, youth groups, law enforcement, and other stakeholders to develop and support prevention programs that address the causes of violence.”
Prosecution Successes: Our prosecutions aim to enhance community safety, deliver justice for crime victims, and hold accountable those individuals responsible for perpetuating violence within our communities. The cases below were indicted this week and underscore our commitment to public safety:
U.S. v. Jose Maria Quijada-Ortega – On Tuesday, a federal grand jury in Charlotte returned a criminal indictment, charging Jose Quijada-Ortega, 26, of Charlotte, with possession of a machinegun. According to allegations in the indictment, on October 6, 2023, Quijada-Ortega knowingly and willfully possessed a machinegun, that being a Glock, Model 23, .40 caliber pistol, with an affixed machinegun conversion device, commonly referred as a “Glock Switch.”
U.S. v. Allison et al. – The grand jury in Charlotte has also returned a criminal indictment against Desmoria Deoria Allison, 24, Mustafa Dajron Howie, 30, and Kinyona Jenae McClain, 22, all of Shelby, North Carolina, for federal firearms violations related to straw purchasing and illegal possession of firearms. McClain is charged with two counts of straw purchase of a firearm and making a false statement during the purchase of a firearm. Allison is charged with two counts of making a false statement during the purchase of a firearm, and Howie is charged with two counts of possession of a firearm by a felon. The indictment alleges that, in October 2023, and again in February 2024, McClain straw purchased two firearms, on behalf of, or at the request or demand of Howie, knowing that Howie had previously been convicted of a crime. The indictment also alleges that, in March 2023, Allison made false and fictitious written statements in connection with the acquisition of two firearms from two licensed firearms dealers. The indictment further alleges that Howie illegally possessed the firearms that had been straw purchased by McClain and Allison.
U.S. v. Jadarius Connell Potts – Jadarius Connell Potts, 31, of Charlotte, was indicted with one count of dealing in firearms without a license and three counts of possession of a firearm by a felon. As alleged in the indictment, between August and September 2023, Potts engaged in the business of dealing in firearms without a license. The indictment alleges that Potts illegally possessed three firearms, an AM-15 rifle and two pistols, knowing that he had previously been convicted of at least one crime punishable by imprisonment exceeding one year.
U.S. v. Wade Bolton – A federal grand jury in Charlotte indicted Wade Bolton, 33, of Charlotte, of possession of a firearm by a prohibited person, possession with intent to distribute fentanyl and methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. According to allegations in the indictment, in December 2023, Bolton allegedly possessed three firearms, knowing that he had previously been convicted of at least one crime punishable by imprisonment exceeding one year. It is further alleged that Bolton knowingly possessed with the intent to distribute fentanyl and methamphetamine and possessed one or more firearms in furtherance of the drug trafficking activities.
U.S. v. Melvin Baylor – Melvin Bolton, 38, of Charlotte, was indicted for possession of a firearm by a convicted felon. As alleged in the indictment, in December 2023, Baylor illegally possessed two firearms, that being a Smith and Wesson M&P 15 Rifle, and an AK-47, along with all the associated magazines and ammunition, knowing that he had previously been convicted of at least one crime punishable by imprisonment exceeding one year.
In addition to this week’s indictments, the U.S. Attorney’s Office announced the sentencing outcomes for additional defendants convicted in separate cases involving firearms offenses, drug trafficking, and armed robbery. The defendants received prison terms ranging from over 3 years to more than 34 years. Press releases with additional information on these cases can be found here.
Trainings and Technology-Driven Strategies: As part of the Project Safe Neighborhoods (PSN) initiative, the U.S. Attorney’s Office partners with our federal, state, local and Tribal law enforcement, prosecutors, community leaders, and other stakeholders to identify the most pressing crime problems in a community and develop comprehensive solutions to address them. An important component of PSN is providing training to law enforcement that can enhance investigations for federal prosecution.
Another important component of PSN is the use of technology and data-driven strategies to target crime hotspots and identify repeat offenders. For example, the Crime Gun Intelligence Center (CGIC) in Charlotte coordinates comprehensive tracing and ballistics analysis. The CGIC focuses exclusively on investigating and preventing gun violence in local communities, using eTrace systems and the National Integrated Ballistic Information Network, or NIBIN. NIBIN is an incredibly powerful tool used in investigations that involve firearms. Part of the U.S. Attorney’s Office’s role is to work with our federal, state, local, and Tribal partners to facilitate the submission of ballistics evidence to the NIBIN system on a timely basis that can assist with turning evidence into concrete leads.
Furthermore, U.S. Attorney King and Assistant U.S. Attorneys from the Charlotte and Asheville Divisions continue to foster relationships by regularly meeting with local law enforcement and state and Tribal prosecutors to determine training needs and identify cases for federal prosecution. Also, as part of the U.S. Attorney’s Office’s violent crime reduction strategy, members of the office meet with community leaders to discuss community concerns and develop collaborative strategies with stakeholders to improve public safety.
Victim Support and Restorative Justice: Our commitment to supporting victims of violence remains one of our core missions. The U.S. Attorney’s Office’s Victim Witness Unit provides comprehensive victim support services and advocates for justice at every phase of the litigation process, ensuring that victims are afforded all the rights and protections they are entitled to under the law, and stay informed as their case progresses through the court system. In addition, members of the Victim Witness Unit meet regularly with community organizations, service providers, victim advocates, allied professionals, and law enforcement counterparts to ensure that everyone in the community knows and understands where and how crime victims and survivors can access the support and resources they need to promote healing and recovery.
Prevention Initiatives and Long-Term Commitment: In collaboration with law enforcement agencies, community organizations, nonprofit entities, and school districts, we have launched and strengthened several violence prevention initiatives. Just last week, the U.S. Attorney’s Office, in partnership with the Asheville Police Department (APD), hosted an outreach event at My Daddy Taught Me That (MDTMT), a youth development program in Asheville, designed to support young people through advocacy, education, and mentoring. During the event, U.S. Attorney King introduced newly appointed APD Police Chief Michael Lamb to a group of young males and he spoke about his background, shared his life experiences, and talked about APD’s community engagement goals under his leadership.
U.S. Attorney King continues to actively engage with local school districts in the Western District and the Qualla Boundary, home to the Eastern Band of Cherokee Indians, to hold listening sessions and have impactful conversations with students on the causes and consequences of violence. Through these sessions, U.S. Attorney King educates students on how to effectively handle conflict resolution and emphasizes the importance of making positive choices. By fostering open dialogue, soliciting the students’ feedback, and providing insights into the legal consequences of violence, U.S. Attorney King aims to empower students with knowledge that can help prevent future incidents. Her proactive approach not only supports community safety but also encourages young people to become informed, responsible citizens committed to building safer neighborhoods for everyone.
In July, U.S. Attorney King will attend the National Recognition Week for the winners of the “Do the Write Thing” essay challenge in Washington, D.C. DtWT is organized by the National Campaign to Stop Violence and seeks to encourage middle school students to express the impact of violence in their lives through writing, and to empower students to become catalysts for positive change by sharing their ideas on ways to reduce youth violence. U.S. Attorney King serves as Chair of the DtWT Committee in Asheville. In this role, U.S. Attorney King accompanies National Student Ambassadors selected from Charlotte and Asheville schools to Washington, D.C., where students participate in planned events and engage in discussions on important topics such as the problem of youth violence.
Beyond the immediate summer months, federal prosecutors are dedicated to sustaining these efforts throughout the year, with the goal of putting in place lasting improvements in public safety and community well-being.
“We encourage everyone in our community to join us in these efforts,” said U.S. Attorney King. “Together, we can build safer, more resilient neighborhoods where every resident can thrive.”
U.S. Attorney King thanks all the law enforcement agencies involved in the aforementioned prosecutions and commends Assistant U.S. Attorneys Shavonn Bennette (U.S. v. Allison et al.), Brandon Boykin (U.S. v. Potts, U.S. v. Bolton, and U.S. v. Baylor), and Kenneth Smith (U.S. v. Quijada-Ortega) for handling the prosecution of these cases.
The defendants named in the indictments are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The U.S. v. Allison et al. case is being prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
For more information on our initiatives visit the U.S. Attorney’s Office’s website.
U.S. Attorney's Office Conducts Law Enforcement Training on Overdose Investigations and ProsecutionsRead the Press Release
CHARLOTTE, N.C. - Today, the U.S. Attorney’s Office conducted a training in Charlotte for law enforcement agencies, on the investigation and prosecution of fatal and near-fatal overdose cases, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The training is part of a broader effort by federal prosecutors to combat the opioid epidemic and ensure justice for victims and their families.
“Tackling the opioid crisis requires a comprehensive approach,” said U.S. Attorney King. “Today’s training provides law enforcement with the tools and knowledge they need to thoroughly investigate overdose cases, so those responsible for distributing lethal substances are held accountable in a court of law. But today’s training goes beyond enforcement. It’s also about saving lives and supporting our communities.”
Over the past decade, overdose deaths caused by powerful synthetic opioids like fentanyl have devastated communities nationwide, including in Western North Carolina. To build on recent courtroom successes and enhance the investigation and prosecution of fatal and near-fatal overdose cases, the U.S. Attorney’s Office developed today’s training, which is the first of its kind for the district. During the training, members of the U.S. Attorney’s Office’s Drug and Violent Crime Unit gave participants a comprehensive review of the legal tools that can be utilized to investigate and prosecute overdose cases, including applicable federal and state statutes, investigative avenues and resources, the challenges and complexities associated with the investigation of these cases, and tried-and-true methods to enhance investigative methods to ensure a successful outcome.
The audience consisted of investigators representing 17 federal, state, local, and Tribal law enforcement agencies throughout the Western District. A portion of the training analyzed the successful prosecution of recent fatal and near-fatal overdose cases prosecuted by federal prosecutors in Charlotte and Asheville. For example, in January 2024, two men were sentenced to prison for distributing fentanyl that resulted in a victim’s death. In April 2024, a woman was charged with selling fentanyl that led to an overdose death. In April 2023, a woman was sentenced to prison for distributing a substance that contained fentanyl that caused two near-fatal overdoses. The training concluded with a panel of experienced investigators discussing their first-hand experiences in successfully investigating these cases.
Additional trainings will be scheduled in the later part of the year. Law enforcement interested in participating in future training sessions may contact the U.S. Attorney’s Office’s Law Enforcement Coordinator at 704-344-6222.
U.S. Attorney Announces Extradition of Individual from Benin for His Role in an International Money Laundering NetworkRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DOMINIC FRANCIS LABIRAN, a citizen of the United Kingdom and Nigeria, was extradited Tuesday, June 18, from Benin. LABIRAN was charged with participating in an international money laundering conspiracy between March and June of 2019. LABIRAN was arrested in Benin on or about October 29, 2021, on an Interpol Red Notice and was presented and arraigned today before U.S. District Judge Katherine Polk Failla.
U.S. Attorney Damian Williams said: “As alleged, Dominic Francis Labiran participated in a conspiracy to launder millions of dollars. This extradition not only highlights the effectiveness of global cooperation, but shows that no matter where they are or how long it takes, law enforcement will find and hold accountable those who engage in fraudulent schemes and money laundering.”
According to the allegations in the Indictment:[1]
Beginning in at least 2013, one of LABIRAN’s co-conspirators, Alade Kazeem Sodiq, a/k/a “Eluku,” and others defrauded financial institutions by falsely representing themselves as bank accountholders in order to conduct financial transactions without the consent of the true accountholders. Beginning in or about January 2019, one of the participants in that scheme who had agreed to cooperate with law enforcement (“CW-1”) contacted Sodiq and said that CW-1 could fraudulently obtain funds from a U.S.-based business. CW-1 told Sodiq that CW-1 needed bank accounts in the U.S. through which CW-1 could launder the criminal proceeds. Sodiq agreed to provide bank accounts to CW-1 and introduced CW-1 to LABIRAN and another co-conspirator, Abdulai Kennedy Saaka, a/k/a “Kenny.” LABIRAN and Sakka agreed to provide accounts in their names or over which they exercised control in exchange for a fee of nearly 50% of the money that passed through the accounts. Law enforcement subsequently moved funds from a covert account to the designated accounts and then on to a second covert account, less the agreed-upon fees.
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LABIRAN, 62, a citizen of the United Kingdom and Nigeria, is charged with conspiracy to commit money laundering and money laundering, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI. He further thanked the Justice Department’s Office of International Affairs, the U.S. Embassy in Benin, and the Diplomatic Security Service, as well as authorities in Benin’s Ministry of Justice and Legislation and the Beninese Republican Police for their assistance in securing the defendant’s extradition from Benin.
This case is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorneys Jonathan Rebold and Andrew Rohrbach are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described should be treated as an allegation.
U.S. Attorney Announces $4.6 Million False Claims Act Settlement with Restaurants, Fur Apparel Companies, and Their Owners and Managers for Submitting False Information to Obtain Paycheck Protection Program LoansRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Amaleka McCall-Brathwaite, the Special Agent in Charge of the Eastern Regional Office of the U.S. Small Business Administration, Office of Inspector General (“SBA-OIG”), announced today that the United States has settled a civil fraud lawsuit against CHRISTOS SPYROPOULOS; IOANNIS GEORGIADES; GALATIA ASPROU; ARISTOTELIS SPYROPOULOS; IORDANIS SPYROPOULOS; LIMANI 51, LLC; ESTIATORIO LIMANI LLC; LML HOSPITALITY LLC; ONIRO TAVERNA LLC; BC INTERNATIONAL GROUP, INC.; and BCI SERVICES LLC (collectively, the “Defendants”) for including false information in their applications for Paycheck Protection Program (“PPP”) loans, in violation of the False Claims Act. The PPP, administered by the SBA, was created to provide forgivable loans to small businesses struggling to fund payroll and certain other qualifying business expenses because of the effects of the COVID-19 pandemic. The settlement resolves claims that the Defendants—four restaurants located in New York, two companies based in New Jersey that distribute, sell, and service fur apparel, and five individuals who owned/managed these businesses—inflated payroll figures in their PPP loan and forgiveness applications by, among other things, misrepresenting that family members and an acquaintance of the owners/managers were employed by the businesses when they were not, and listing the same individuals as “full-time employees” of multiple businesses.
Under the settlement approved today by U.S. District Judge Edgardo Ramos, the Defendants will pay the U.S. $4,646,700.21 and have admitted and accepted responsibility for conduct alleged in the Government’s Complaint. Specifically, the Defendants admitted that they misrepresented and inflated their payroll and employee headcounts in their PPP loan and forgiveness applications, and that they requested and received PPP loans for amounts that were substantially above what they were entitled to receive.
U.S. Attorney Damian Williams said: “The Paycheck Protection Program was created to help struggling small businesses weather the worst moments of the COVID-19 pandemic. These defendants submitted false information to artificially inflate the PPP loans they received. This Office will continue to hold accountable those who engaged in fraud to secure pandemic relief funds for which they were not eligible.”
SBA-OIG Special Agent in Charge Amaleka McCall-Brathwaite said: “This settlement reinforces our unwavering commitment to protecting the integrity of SBA’s programs. Wrongful practices, such as inflating payroll and employee numbers, divert essential funds from deserving businesses. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
As alleged in the Complaint filed in Manhattan federal court:
Under the PPP, eligible businesses could obtain SBA-guaranteed loans to spend on payroll costs, rent or mortgage, and other specified business expenses. The amount of PPP funds a business was eligible to receive was determined by the number of individuals employed by the business and their average payroll costs. Businesses applying for a PPP loan were required to provide documentation to confirm that they had in the past paid employees the compensation represented in the loan application. In addition, the PPP loan application required businesses (through their authorized representatives) to acknowledge the PPP Rules and make certain affirmative certifications in order to be eligible to obtain the PPP loan. The SBA also provided for forgiveness of PPP loans. To receive forgiveness, borrowers were required to submit signed loan forgiveness applications and documents containing certain information and certifications.
The six defendant companies applied for and received six first-draw PPP loans and six second-draw PPP loans for a total of more than $11.9 million, nearly all of which was fully forgiven. The five individual defendants were involved in preparing the PPP loan and forgiveness applications and personally signed the applications on behalf of their companies.
The Defendants improperly inflated the PPP loan amounts and the amounts forgiven by falsely claiming that six family members and one acquaintance of the individual defendants were bona fide employees of the businesses when, in fact, they were not (and distributing the PPP funds to these “no show” employees); falsely claiming that three of the individual defendants were full-time employees of LIMANI 51 when, in fact, they were not; falsely claiming that individuals were full-time employees of multiple businesses and including their full salaries in the calculation of the loan and forgiveness amounts for each of those businesses; and mispresenting that they were entitled to forgiveness for wages paid to certain owners and employees that exceeded the maximum amount permitted under the PPP Rules.
As part of the settlement, the Defendants admit, acknowledge, and accept responsibility for the following conduct:
- In their second-draw PPP loan application and first and second-draw PPP loan forgiveness applications, ESTIATORIO LIMANI, LIMANI 51, ONIRO TAVERNA, and LML HOSPITALITY misrepresented and inflated their payroll and employee headcounts by including wages attributable to six family members and an acquaintance of the individual defendants in the calculation of the PPP loan and PPP loan forgiveness amounts, even though the seven individuals were “no show” employees who never undertook any work for the corporate defendants and therefore were ineligible for consideration.
- In its second-draw PPP loan application and first and second-draw PPP loan forgiveness applications, LIMANI 51 misrepresented and inflated its payroll and employee headcounts by stating that three individual defendants were “full-time employees” of the entity when they were not.
- In their first-draw and second-draw PPP loan applications and PPP loan forgiveness applications, ESTIATORIO LIMANI, LIMANI 51, ONIRO TAVERNA, LML HOSPITALITY, BC INTERNATIONAL, and BCI SERVICES each misrepresented and inflated their payroll and headcounts by erroneously listing some of the same individuals as “full-time employees” of different companies and including their full wages in the PPP loan and forgiveness applications submitted for each of the companies. For example, in BC INTERNATIONAL and BCI SERVICES’ second-draw PPP loan forgiveness applications, they each simultaneously listed 13 individuals as “full-time employees” of both companies—and sought forgiveness for the employees’ full wages at both companies—resulting in $481,240.42 of loan proceeds being paid to these individuals, which was an improper use of funds.
- BC INTERNATIONAL and BCI SERVICES misrepresented in their loan forgiveness applications for their first-draw and second-draw PPP loans that they were entitled to forgiveness for wages paid to their owners and certain employees that exceeded the maximum amount permitted under the PPP Rules.
- As a result of the above-referenced conduct and misrepresentations, each of the six defendant companies requested and received PPP loans for amounts that were substantially above what they were entitled to receive.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.
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Mr. Williams praised the SBA-OIG for its assistance with this case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Adam M. Gitlin is in charge of the case.