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Thursday 20 June 2024
Insurance Agent Admits to Fabricating Applications and Payment Forms for Unauthorized End-of-Life Policies in Order to Collect Commission PaymentsRead the Press Release
PROVIDENCE, RI – A North Attleboro, MA, insurance broker admitted to a federal judge in Rhode Island today that he submitted fabricated applications for end-of-life insurance policies in clients’ names and used their banking and personal information, all without their knowledge or authorization, in order to obtain insurance in their names and collect over $135,000 dollars in commissions, announced United States Attorney Zachary A. Cunha.
Bruno Francis Ragusa, 53, pleaded guilty to a charge of wire fraud.
Ragusa admitted that, without his clients’ knowledge, permission, or consent, he fabricated and submitted applications to purchase final expense policies in his clients’ names, using their personal identification information. Ragusa also admitted that he forged clients’ electronic signatures on the applications and directed that all policy correspondence be sent directly to him and not to the clients; that he used clients’ bank account and routing numbers to cause payment for the policies to be directly wired from their bank accounts without their knowledge; that he failed to advise his clients of the fact that policies had been issued in their names or that that payment was being drawn from their bank accounts; and that as a result of his criminal conduct, he collected $136,956.56 in sales commissions.
Ragusa is scheduled to be sentenced on September 9, 2024. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
On November 28, 2023, the Department of Business Regulation for the State of Rhode Island revoked Ragusa’s license to sell insurance in Rhode Island. Ragusa’s licenses to sell insurance in Massachusetts and Connecticut remain active.
The case is being prosecuted by Assistant United States Attorney Milind M. Shah.
The matter was investigated by the FBI. United States Attorney Cunha thanks the United States Attorney’s Office for the District of Massachusetts and the North Attleboro Police Department for their assistance.
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Illinois Bank President Admits Falsifying RecordsRead the Press Release
BENTON, Ill. – The president of a bank in southern Illinois on Thursday admitted a scheme to falsify bank records to facilitate real estate loans.
Steven Cook pleaded guilty in U.S. District Court in Benton to three felony counts of aiding and abetting the making of a false bank entry. Cook was the president of SouthernTrust Bank at the time, which has branches in Marion, Vienna and Goreville, Illinois. Cook was also on the bank’s board and was a member of its loan committee.
Cook admitted fraudulently facilitating three different sales of real estate to Lawler and Maze Properties LLC in 2022.
In one transaction, Cook approved a loan that funded the sale of seven commercial rental properties in Williamson and Franklin counties from Results Home Buyers 2 to Lawler and Maze, the plea agreement says. The transaction was a new purchase of real estate, not a refinance, and the buyers were not using any cash to fund the purchase.
During an April 6, 2022, meeting with the seller and buyer, Cook and the others agreed to fraudulently make it appear as if the loan was a refinancing, however, and the bank would supply the cash to make the purchase. They agreed to backdate documents to falsely indicate the buyer purchased the properties on Feb. 1, 2022, for a falsely inflated price of $545,152. The documents also falsely indicated that the bank was refinancing 80% of that loan, with the buyers bringing 20% in cash to the sale. The real sales price for the properties was $436,122, and the buyers were not bringing any cash to the transaction. The bank’s loan to the buyers was approved by the bank’s loan committee based upon the false information.
Results Home Buyers 2 is partially owned by former Williamson County State’s Attorney Brandon Zanotti, who was sentenced in May to two years of probation, a $5,000 fine and 20 hours of community service for his role in the scheme.
In August of 2022, Cook facilitated a second real estate transaction with Lawler and Maze involving four properties. Cook, Lawler and Maze and the seller agreed that the real estate contract would falsely list the sales price of $413,000 instead of the actual price of $330,400, and falsely stated that the buyer would supply $82,600 in cash.
Finally, during November of 2022, Cook facilitated an additional loan to Lawler and Maze for the purchase of a property in Marion. Bank documents falsely stated that the borrowers would supply $21,500 cash, and Cook was aware that the false loan details were presented to the bank board for approval.
“The lack of professional responsibility demonstrated by Steven Cook diminishes the faith consumers place in the banking process,” said FBI Springfield Field Office Acting Special Agent in Charge Shannon Fontenot. “Financial fraud is a serious crime with serious consequences and the FBI will investigate anyone who takes advantage of their trusted position of employment for their own personal gain.”
“The Federal Housing Finance Agency Office of Inspector General (FHFA OIG) is committed to investigating and prosecuting allegations of mortgage-related fraud, including fraud committed by officers of financial institutions who have a duty to conduct honest business,” said Korey Brinkman, Acting Special-Agent-in-Charge of FHFA OIG’s Midwest Regional Office. “We are proud to have partnered with our FBI colleagues on this case.”
Cook’s sentencing hearing has been set for September 19. His ultimate sentence will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
Lawler and Maze is owned by Justin Maze and David Lawler, who entered into a pretrial diversion program in which they acknowledged their involvement in the criminal conduct by aiding and abetting Zanotti and Cook. As a condition of pretrial diversion, Maze was required to resign from his position as Williamson County Circuit Clerk and agreed not to seek re-election to any public office. Lawler’s conduct was reported to the Illinois Attorney Registration and Disciplinary Commission.
The FBI Springfield Office and the Federal Housing Finance Agency Office of Inspector General investigated the case. The prosecution was handled by Special Attorney Hal Goldsmith from the Eastern District of Missouri. The U.S. Attorney’s Office for the Southern District of Illinois was recused from the case.
Hutchinson Woman Sentenced to Prison for Embezzling More Than $2 Million from EmployerRead the Press Release
MINNEAPOLIS – A Hutchinson woman has been sentenced to 41 months in prison, three years of supervised release, and ordered to pay restitution in full for embezzling over $2 million from her employer, announced U.S. Attorney Andrew M. Luger.
According to court documents, Jennifer Lee Rath, 53, worked as the financial controller at a heavy civil construction company located in Hutchinson, Minnesota. As the financial controller, Rath was responsible for managing the company’s payroll, accounts receivable, accounts payable, company credit cards, and corporate bank accounts. Over a six-year period, Rath used her position to embezzle funds and convert them to her own use and benefit. Rath routinely cut checks that appeared to cover the company’s liabilities, but then manipulated the checks to instead pay her own credit card debts, tax liabilities, and other personal expenses. Rath also processed electronic fund transfers from the company’s bank accounts to pay personal expenses and improperly charged personal expenses to company credit cards. Rath manipulated the company’s accounting software to conceal the money she stole, avoid detection, and prolong her fraud scheme.
In total, between August 2013 and December 2019, Rath knowingly and willfully embezzled $2,061,328.67 from her employer. Because of Rath’s embezzlement, the company’s business and reputation suffered, as employees lost their jobs, it could not pay vendors on time, and its credit suffered.
On September 7, 2023, Rath pleaded guilty to one count of mail fraud. She was sentenced on June 18, 2024, in U.S. District Court by Judge Jerry W. Blackwell. In pronouncing the sentence, Judge Blackwell commented that he was particularly troubled that Rath exploited a longtime family friend who had put her in a position of trust over a small business.
This case is the result of an investigation conducted by the FBI and the Hutchinson Police Department.
Assistant U.S. Attorney Jordan L. Sing prosecuted the case. Assistant U.S. Attorney Erin Secord and Paralegal Specialist Jessica Scott handled the asset investigation and restitution enforcement.
Houstonian sent to prison for nearly $1M international money laundering schemeRead the Press Release
HOUSTON – A 31-year-old local man has been sentenced following his conviction of conspiracy to commit money laundering, announced U.S. Attorney Alamdar S. Hamdani.
Baudelaire Tchouala pleaded guilty Dec. 7, 2023.
U.S. District Judge Alfred H. Bennett has now ordered Tchouala to serve 18 months in federal prison to be immediately followed by two years of supervised release. He must also pay $168,068 in restitution.
“Business email compromise (BEC) scams and the money launders that support them prey on all levels of society from corporations to people trying to buy their first homes,” said Hamdani. “Today our office along with the FBI removed a conduit for that system. Our office will continue to seek out these BEC networks and dismantle them piece by piece.”
“In just a few short months, Tchouala deliberately opened numerous accounts at multiple banks with the express purpose of laundering almost $1 million dollars in fraudulent funds,” said FBI Houston Special Agent in Charge Douglas Williams. “Working with other remorseless criminals, Mr. Tchouala ruined victims’ lives by stealing hard-earned down payments for homes and shattering their trust in our financial system. FBI Houston’s investigators will continue to relentlessly pursue brazen swindlers while also seeking to make fraud victims whole once more.”
From July 2018 to November 2018, Tchouala laundered money into several bank accounts and withdrew the money to send to others. He used a business account to conceal the fraudulent activity.
In BECs similar to this one, conspirators pose as business partners of corporate victims or individuals that owe money for professional services or loans and send fraudulent emails saying that the business’ bank account has changed. They then ask that payments be sent to a new bank account (an account the conspirators control). The victims think they are paying for legitimate expenses, services or invoices, with the real company unaware of the sent emails. The conspirators attempt to withdraw or wire the money to another account before it can be discovered and frozen.
The victims in this case believed they paid for goods and services from legitimate individuals and companies but were tricked into sending the money to Tchouala’s accounts. On July 23, 2018, a victim wired $64,000 from their bank account to Tchouala’s account based on instructions they received via email. This account was opened May 24, 2018. The victim sent the money, believing it was for the purchase of a house.
On Oct. 29, 2018, another victim directed $198,955 into Tchouala’s account for a down payment on a condominium. The receiving account was just opened Oct. 12, 2018.
In addition, several companies also fell victim to the scheme. One had communicated via email with someone pretending to be from another company. On Oct. 4, 2018, that person sent an email requesting that payment be sent to an updated bank account. Based on that email, the victim company sent approximately $645,711 to Tchouala’s bank account, which was only opened Aug. 21, 2018.
The victims reside in various countries including the United States, South Korea and Japan.
Tchouala withdrew most of the money via cash, card purchases, checks and transfers. Tchouala’s fraudulent financial activity totaled approximately $935,000.
Tchouala was permitted to remain on bond pending surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Shirin Hakimzadeh prosecuted the case.
Hospice Care Company Owner Sentenced on Health Care Fraud ChargesRead the Press Release
LAFAYETTE, La. – United States Attorney Brandon B. Brown announced that Kristal Glover-Wing, 51, formerly a resident of Broussard, Louisiana, and now living in California, has been sentenced for conspiracy to commit health care fraud and three counts of health care fraud. United States District Judge Robert R. Summerhays sentenced Glover-Wing to 72 months in prison, followed by 3 years of supervised release. She was also ordered to pay $3,675,948.42 in restitution.
"As federal prosecutors, we must protect the taxpayer dollar by taking cases of Medicare fraud seriously due to the overwhelming number of Americans that rely on such programs to literally survive,” said U.S. Attorney Brandon B. Brown. “The defendant in this case took advantage of elderly patients for the benefit of her company as opposed to her clients. We believe this is a fair sentence and we will continue to prosecute cases of fraud and corruption by those who seek to unjustly enrich themselves to the detriment of the elderly and federal government.”
“The sentence imposed today is an affirmation of our commitment to protect the integrity of our nation’s health insurance programs from those who illegally profit through their fraudulent activities,” said Special Agent in Charge Jason E. Meadows of the United States Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work closely with our federal law enforcement partners and bring to justice bad actors who defraud the Medicare program.”
Glover-Wing was convicted by a federal jury of the charges in April 2023 following a nearly four-week trial. Glover-Wing was the owner of Angel Care Hospice (“Angel Care”), a Louisiana corporation that purported to provide hospice services in Lafayette Parish and other parishes in the Western District of Louisiana. Through evidence presented at trial, jurors learned that from approximately 2009 through 2017, over 24 patients were placed on hospice by Angel Care without meeting the criteria required by Medicare.
During the time period that the patients were on hospice and under the care and supervision of Angel Care, none of them had been diagnosed with a terminal condition. In fact, many of the patients themselves, who are still alive and thriving many years later, as well as family members of other patients, testified that they never knew that they had been placed on hospice. One of the patients testified at trial that Medicare refused to cover a procedure he needed to have because unbeknownst to him, he was listed as a hospice patient. Many of these patients thought they were receiving some type of home health or free services, rather than being placed on hospice.
Testimony at trial revealed that while on hospice care, many of the patients were living normal lives and although most of them did have medical conditions, none had been diagnosed as having a terminal condition. Evidence was introduced proving that there were patients who had been on hospice for more than five years and at the time of trial, were still alive.
The case was investigated by the Department of Health and Human Services, Office of Inspector General, and Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorneys Kelly P. Uebinger, Danny Siefker, and Lauren L. Gardner.
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Hopkinsville Man Sentenced to over 14 Years for Conspiracy to Traffic Methamphetamine and Fentanyl While on Federal SupervisionRead the Press Release
Paducah, KY - A Hopkinsville, Kentucky man was sentenced this week to a total of 14 years and 5 months in federal prison for conspiring to possess with the intent to distribute methamphetamine and fentanyl while on federal supervision from a previous federal conviction.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Erek G. Davodowich of the DEA Louisville Field Division, Christian County Sheriff Tyler DeArmond, and Chief Jason Newby of the Hopkinsville Police Department made the announcement.
According to court documents, Daniel Major, 43, of Hopkinsville, was sentenced to 11 years and 8 months in prison, followed by 5 years of supervised release, for one count conspiring to possess with the intent to distribute methamphetamine and one count of conspiring to possess with the intent to distribute fentanyl. Major received an additional sentence of 2 years and 9 months for violating his federal supervision on a previous conviction.
There is no parole in the federal system.
The case was investigated by the DEA Paducah Post of Duty, with assistance from the Christian County Sheriff’s Office and the Hopkinsville Police Department.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Haverhill Man Indicted for Allegedly Filing Fraudulent Pandemic Unemployment Assistance Claim for Brazilian ResidentRead the Press Release
BOSTON – A Haverhill man was indicted today for allegedly filing a Massachusetts Pandemic Unemployment Assistance (PUA) claim in 2020 for a man who was living in Brazil at the time, and therefore ineligible to receive PUA benefits.
Julio Roncaly Morais, 41, was charged with one count of wire fraud and one count of conspiracy to commit wire fraud. He will appear in federal court in Boston at a later date.
According to the charging documents, Morais filed a Massachusetts PUA claim on June 3, 2020, on behalf of a co-conspirator who was living in Brazil before and after the PUA claim was filed. In the PUA application, Morais allegedly certified under penalty of perjury that the co-conspirator was a resident of Massachusetts and was able and available to work in Massachusetts but was unable to due to the pandemic. As a result of this claim, the Massachusetts Department of Unemployment Assistance paid a total of $5,202 in benefits before suspending payments due to an inability to reach the co-conspirator.
The charges of wire fraud and conspiracy to commit wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in charge for the Homeland Security Investigations New England Field Office; Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistance in the investigation was provided by the Woburn and Norwood Police Departments. Assistant U.S. Attorneys Kelly Begg Lawrence, James D. Herbert, and Samuel R. Feldman of the Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Paterson Gang Members Charged with Drug Trafficking Conspiracy and One Charged for Attempted Robbery of Postal EmployeeRead the Press Release
NEWARK, N.J. – Four Passaic County, New Jersey, men have been charged in connection with their respective roles in a Paterson neighborhood street gang known as “100k” that distributed fentanyl, heroin, and cocaine, U.S. Attorney Philip R. Sellinger announced today.
Jazmeir Reyes, aka “Baby Joe,” aka “Joe,” 19, Kyzeik Robinson, aka “Doo Doo,” aka “King Sparks,” aka “Sparks,” 18, Michael Davis, aka “Baby Three,” 27, and Jacim Pitts, 24, all of Paterson, New Jersey, are charged by complaint with conspiracy to distribute fentanyl, heroin, and cocaine. Reyes is charged in a separate complaint with attempted Hobbs Act robbery, assaulting or impeding certain United States officers or employees, and brandishing a firearm during and in relation to a crime of violence, in connection with his holding a U.S. Postal Service employee at gun point.
Davis and Pitts appeared before U.S. Magistrate Judge James B. Clark III in Newark federal court and were detained. Reyes is scheduled to make his initial appearance on June 21, 2024. Robinson remains at large.
According to documents filed in this case and statements made in court:
From January 2022, law enforcement has been investigating the members and associates of a neighborhood street gang known as “100k” or “Down the Hill,” which operates primarily in the area of North Main and Jefferson streets in the First Ward of Paterson. Reyes, Robinson, and Davis are all known members of 100k and Pitts is a member of “So Icey,” a neighborhood street gang closely aligned with the 100k gang.
From August 2023 to April 2024, law enforcement used undercover officers to conduct controlled purchases of narcotics from Reyes and the other members and associates of 100k and seized in excess of 100 grams of fentanyl as well as quantities of heroin and cocaine.
On July 28, 2023, in Paterson, Reyes held a mail carrier at gun point in an attempt to steal the mail carrier’s arrow key, which is a key used to gain access to mailboxes within a certain geographic area or postal route.
The count of conspiracy charged in the complaint carries a mandatory minimum term of five years, a maximum of 40 years in prison, and a fine of at least $5 million.
On each of the counts of attempted Hobbs Act robbery and assaulting or impeding certain United States officers or employees, Reyes faces a maximum penalty of 20 years in prison and up to a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. On the count of brandishing a firearm in connection with a crime of violence, Reyes faces a mandatory minimum term of seven years and a maximum term of life imprisonment, which must run consecutively to any other prison sentence imposed, and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen; the Passaic County Sheriff’s Office, under the direction of Acting Sheriff Gary Giardina; the Jersey City Police Department, under the direction of Director of Public Safety James Shea; and the Paterson Police Department, under the direction of Officer In Charge Isa Abbassi with the investigation leading to today’s charges.
This case is part of the Paterson Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Bergen County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Organized Crime/Gang Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
reyesetal.complaint.pdf reyes.complaint.pdfFour Members of Notorious Cybercrime Group ‘FIN9’ Charged for Roles in Attacking U.S. CompaniesRead the Press Release
NEWARK, N.J. – An indictment was unsealed today charging four Vietnamese nationals for their involvement in a series of computer intrusions that caused victim companies to collectively suffer more than $71 million in losses, U.S. Attorney Philip R. Sellinger announced.
According to the indictment, Ta Van Tai, aka “Quynh Hoa,” aka “Bich Thuy;” Nguyen Viet Quoc, aka “Tien Nguyen;” Nguyen Trang Xuyen; and Nguyen Van Truong, aka “Chung Nguyen,” were members of a sophisticated international cybercrime group known as “FIN9.” From at least May 2018 through October 2021, the defendants hacked the computer networks of victim companies throughout the United States and used their access to steal or attempt to steal non-public information, employee benefits, and funds. The defendants caused their victims to suffer more than $71 million in losses.
U.S. Attorney Philip R. Sellinger“The FIN9 defendants were prolific international hackers who, for years, allegedly used phishing campaigns, supply chain attacks and other hacking methods to steal millions from their victims. They did all of this while hiding behind keyboards, VPNs, and fake identities, and even then, the Department of Justice found them. My office remains committed to its pursuit of justice for victims, and cybercriminals everywhere should take notice.”
“Cyber actors cloak themselves in the virtual world, hiding in a space most people can't see and don't understand,” FBI – Newark Special Agent in Charge James E. Dennehy said. “However smart these hackers believe they are at disguising themselves, these members of the FIN9 group couldn’t conceal their exfiltration of data from their victims’ companies. FBI Newark’s Cyber Task Force and our law enforcement partners use precision and innovative techniques to expose these people for what they are – simple thieves. We ask any business or company facing a similar attack to reach out to us immediately to protect your systems and to stop these criminals from moving on to the next victim.”
According to documents filed in this case and statements made in court:
Members of FIN9, including the defendants, obtained unauthorized access to the computer networks of victim companies through phishing campaigns or other methods, such as supply chain attacks – a type of cyberattack that seeks to damage an organization by targeting the computer networks of trusted third-party vendors who offer services or software vital to the supply chain. After gaining access to their victims’ networks, FIN9 members, including the defendants, used that access to exfiltrate or attempt to exfiltrate non-public information, employee benefits, and/or funds. For example, the defendants accessed employee benefit rewards programs maintained by their victims and re-directed digital employee benefits, such as gift cards, to accounts controlled by defendants. The defendants also stole gift card information stored on the computer networks of certain victims.
The defendants additionally stole personally identifiable information and credit card information associated with employees and customers of their victim companies. In an effort to hide their own identities, the defendants would, at times, use that information in furtherance of the conspiracy by, for example, registering online accounts at cryptocurrency exchanges or server hosting companies in the names of individuals whose identities were stolen. Tai, Xuyen, and Truong sold stolen gift cards to third parties, including through an account registered with a fake name on a peer-to-peer cryptocurrency marketplace, in order to conceal and disguise the source of the stolen money.
Tai, Quoc, Xuyen, and Truong are charged with one count of conspiracy to commit fraud, extortion, and related activity in connection with computers; one count of conspiracy to commit wire fraud; and two counts of intentional damage to a protected computer. If convicted, they face up to five years in prison for the conspiracy to commit fraud, extortion, and related activity in connection with computers; up to 20 years in prison for the conspiracy to commit wire fraud; and up to 10 years in prison on each count of intentional damage to a protected computer. Tai, Xuyen, and Truong were charged with one count of conspiracy to commit money laundering, which carries a mandatory maximum penalty of 20 years in prison. Tai and Quoc were also charged with one count of aggravated identity theft, which carries a mandatory consecutive term of two years in prison, and one count of conspiracy to commit identity fraud, which carries a maximum penalty of 15 years in prison.
U.S. Attorney Sellinger credited the FBI Newark’s Cyber squad, under the direction of Special Agent in Charge James E. Dennehy in Newark. He also thanked the FBI Little Rock Cyber squad, under the direction of Special Agent in Charge Alicia D. Corder.
The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Vinay S. Limbachia of the U.S. Attorney’s Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
fin9.indictment.pdfFour Indicted for Distribution of Fentanyl Resulting in the Death of A University of South Florida StudentRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Miguel Cintron (36, Tampa), Marquise Trant (35, Tampa), David Chudhabuddhi (37, Tampa), and Darrius Gustafson (20, Tampa) with conspiracy to distribute fentanyl, resulting in death. All four are also charged with additional distributions of fentanyl over 40 grams. Cintron is further charged with possession with intent to distribute over 5 kilograms of cocaine and with being a felon in possession of a firearm. If convicted on all counts, each faces a minimum mandatory sentence of 20 years, up to life, in federal prison. The indictment also notifies the defendants that the United States intends to forfeit all assets which are alleged to be traceable to proceeds of the offense. All four defendants were arrested, made their initial appearances in federal court, and have been ordered detained pending trial.
According to the indictment and court documents, on February 16, 2024, Cintron, Trant, Chudhabuddhi, and Gustafson distributed a lethal amount of fentanyl that resulted in the death of Victim-1. Subsequent to Victim-1’s death, all four individuals continued to distribute fentanyl to undercover deputies and detectives with the Hillsborough County Sheriff’s Office.
On April 10, 2024, a search warrant was executed at Cintron’s residence where law enforcement recovered firearms, several rounds of ammunition, more than 7 kilograms of cocaine, 1 kilogram of black tar heroin, 1 kilogram of heroin, 1,200 pressed pills containing fentanyl, and over $200,000 in cash.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the University of South Florida Police Department, the Hillsborough County Sheriff’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hillsborough County Medical Examiner’s Office. It will be prosecuted by Assistant United States Attorney Candace Garcia Rich.
Fort Smith Arms Dealer Neil Ravi Mehta and his company Federal Armament LLC Sentenced for Various Criminal ViolationsRead the Press Release
FORT SMITH – A Fort Smith man, Neil Ravi Mehta, age 32, was sentenced today to 57 months in federal prison followed by three years of supervised release and ordered to pay $659,825.52 in restitution, on one count of Possession of an Unregistered Firearm that was a Destructive Device, one count of Fraud and False Statements related to Tax Returns, and one count of False Declaration Before a Court.
In a separate case, Federal Armament LLC, which was owned by Neil Ravi Mehta, was sentenced to five years of probation and ordered to pay a fine of $500,000.00 on one count of Unlawfully Importation and Receipt of Firearms and one count of Filing False or Misleading Electronic Export Information. Federal Armament LLC was also ordered to forfeit the illegally imported firearms.
The Honorable Judge P.K. Holmes, III presided over the sentencing hearings, which were held in the U.S. District Court in Fort Smith.
According to court documents in the Neil Ravi Mehta case, on January 31, 2023, federal law enforcement officers executed a search warrant on Mehta’s residence in Fort Smith, Arkansas. Mehta was present at the residence when officers announced their intent to enter the residence but fled from the residence prior to officers making entry into the residence. Mehta was later arrested after a six-day manhunt, in which the public’s assistance was solicited in locating the defendant, who was assumed to be armed and dangerous.
During the execution of the search warrant, officers discovered and seized a destructive device located in the top left corner of the kitchen island of the residence. The destructive device was not registered as required by law and therefore unlawfully possessed by Mehta.
As to the tax charge, Mehta substantially underreported his income by failing to report millions of dollars of business activities for Federal Armament LLC, a business headquartered in Fort Smith, Arkansas which engaged in the manufacturing and selling ammunition, firearms, and other related items. None of the gross receipts of Federal Armament LLC were reported on any of Mehta’s IRS Forms 1040 for 2018, 2019, 2020, and 2021.
As to the charge of False Declaration Before a Court, on December 14, 2021, a deposition under oath was taken from Mehta in connection with a civil suit brought against Mehta and Federal Armament LLC by the United States Department of Labor alleging violations of the Fair Labor Standards Act. During the deposition Mehta made false statements under oath regarding matters that were material to the civil suit.
According to court documents in the Federal Armament LLC case, on January 31, 2023, federal law enforcement officers executed a search warrant on Federal Armament LLC in Fort Smith, Arkansas. During the search warrant officer located and seized 3,185 firearms that Federal Armament LLC unlawfully imported due to excess magazine capacity or because the firearms lacked required engraving marks.
As to the export charge, on June 27, 2022, Federal Armament LLC submitted to the U.S. Department of Commerce a license application for approval to export certain firearms to Poland. The export license application contained false and misleading information by naming an individual as contact person who was neither employed by nor acting as the contact person for Federal Armament LLC.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
This was a joint investigation involving the following federal law enforcement agencies: the Federal Bureau of Investigation (FBI); the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the U.S. Department of Commerce (DOC), Bureau of Industry and Security (BIS), Office of Export Enforcement (OEE); the Internal Revenue Service-Criminal Investigation (IRS-CI); and the U.S. Department of Labor, Office of the Inspector General (DOL-OIG).
First Assistant U.S. Attorney Kenneth Elser and Assistant U.S. Attorney Steven Mohlhenrich prosecuted the case.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Former U.S. Postal Service Employee Sentenced to Prison for Stealing MailRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SHAWN R. FULLER, 37, of West Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months of imprisonment, followed by three years of supervised release, for stealing mail while he was a U.S. Postal Service employee.
According to court documents and statements made in court, Fuller, while employed by the U.S. Postal Service as a mail carrier in Meriden, was under investigation for stealing mail packages. On April 17, 2023, an investigator observed Fuller at the Meriden post office opening two mail packages, removing two items from the packages, and placing them in the trunk of his car. He then notified his supervisors that he had to leave work for the day. Hamden Police subsequently stopped Fuller’s car. After a police K9 alerted officers to the possible presence of narcotics, a search of the trunk of the car revealed approximately four kilograms of a substance containing cocaine. Fuller was arrested at that time.
On February 16, 2024, Fuller pleaded guilty to theft of mail by a postal employee.
Fuller, who is released on a $100,000 bond, is required to report to prison on August 20.
This matter was investigated by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force and the Drug Enforcement Administration, with the assistance of the Hamden and West Haven Police Departments. The Task Force includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden, and Town of Groton Police Departments. The case was prosecuted by Assistant U.S. Attorneys Robert S. Dearington and Brendan J. Keefe.
Former Tucson Resident Sentenced to Prison for Scheme to Defraud RefugeesRead the Press Release
TUCSON, Ariz. – Nidal Awawdah, aka Kifah Dalia, 34, of Bakersfield, California (and formerly of Tucson), was sentenced last week by United States District Judge Rosemary Márquez to 14 months in prison, followed by three years of supervised release. Awawdah pleaded guilty to one count of Bank Fraud on January 25, 2024.
From approximately December 2016 through August 2017, Awawdah established herself as a trusted resource to several Syrian refugees. Awawdah befriended the refugees, acted as a translator, and assisted them in establishing their new lives in the Tucson community. Awawdah then used her position of trust to defraud the victims. Awawdah gained access to the victims’ personal information and stole their identities. Awawdah opened credit card accounts in the victims’ names and made thousands of dollars in unauthorized purchases using the fraudulently obtained credit cards. Awawdah also used at least one stolen identity to unlawfully obtain student loans.
The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-01033-TUC-RM
RELEASE NUMBER: 2024-077_Awawdah# # #
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.Former Oglala Sioux Tribe President Sentenced to Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Linda R. Reade has sentenced a Batesland, South Dakota, man convicted of six counts of Wire Fraud, one count of Larceny, and one count of Embezzlement and Theft from an Indian Tribal Organization. The sentencing took place on June, 20, 2024.
Julian Bear Runner, 39, was sentenced to 22 months in federal prison on each count to run concurrently, followed by three years of supervised release, and ordered to pay a $800 special assessment to the Federal Crime Victims Fund and $82,483.71 in restitution to the Oglala Sioux Tribe.
Bear Runner was indicted by a federal grand jury in September of 2022. He was found guilty of wire fraud, larceny, and embezzlement following a three-day jury trial in April of 2024.
Between January of 2019 and January of 2020, at Pine Ridge, Bear Runner, while acting in his capacity as President of the Oglala Sioux Tribe, fraudulently submitted travel vouchers for official business travel and received payment for travel that he was not entitled to as he was not actually traveling. Bear Runner submitted multiple travel authorizations to different locations outside South Dakota, including New Mexico, Montana, Ohio, North Carolina, New York, and Arizona, claiming the need to travel for official business. As a result of the fraudulently submitted travel authorizations, Bear Runner received more than $80,000 in advance travel payments but did not go on the travel. Instead, Bear Runner cashed the checks at a casino, gambled, and stayed in local hotels.
This case was brought pursuant to the Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: the FBI; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; IRS Criminal Investigation; U.S. Postal Inspection Service; and the U.S. Postal Service, Office of Inspector General.
For additional information about the Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
This case was investigated by the Department of Health and Human Services, Office of Inspector General, and the FBI. Assistant U.S. Attorneys Benjamin Patterson and Megan Poppen prosecuted the case.
Bear Runner was immediately remanded to the custody of the U.S. Marshals Service.
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 Federal Investigator Convicted and Sentenced for Fabricating Dozens of Background Check Interviews he Never ConductedRead the Press Release
INDIANAPOLIS- Christopher B. Laughlin, 37, of Whiteland, Indiana, has been sentenced to one year of federal probation and must pay restitution in the amount of $69,846.44 after pleading guilty to making false statements in the course of his government employment.
Federal employees, contractors, and military members must undergo a background investigation to determine their suitability for serving in a position of trust and obtaining any required security clearance. The extent of the investigation will depend on the type of job and the degree of harm the person in that job could cause. Background investigators conduct interviews, review documents, and record the information they find in reports of investigation. Federal agencies rely on these reports to determine suitability of subjects for sensitive positions and security clearance.
The Defense Counterintelligence and Security Agency (DCSA) is responsible for conducting background investigations of certain individuals who are either employed by or seeking employment with federal agencies or government contractors. DCSA utilizes a variety of internal controls to verify the work of investigators and help ensure the integrity of its investigations.
According to court documents, Christopher Laughlin began working at the United States Office of Personnel Management as a federal background investigator in May of 2018. His position was transferred to DCSA on September 30, 2019.
On August 2, 2021, as part of DCSA’s internal control process, an individual reported that Laughlin never interviewed them, contrary to Laughlin’s statements in an investigation report. DCSA investigated and identified three other sources Laughlin claimed to have interviewed in the same investigation who all stated they’d never been interviewed. DCSA’s Office of the Inspector General then initiated a formal investigation into Laughlin’s conduct.
Investigators determined that between February 18 and September 1, 2021, Laughlin submitted at least 22 false reports containing fabricated statements from at least 43 interviews that never actually happened. The reports included statements that the sources purportedly made to Laughlin by people he never spoke with. DCSA spent $69.846.214 in payroll and travel to conduct the investigations that Laughlin fabricated.
“The safety and security of our country depends on the trustworthiness and integrity of federal employees and contractors,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “This defendant’s decision to falsify reports and fabricate statements compromised the integrity of these important investigations, and increased the risk that unsuitable individuals are put in positions that could compromise our government and our national security. I commend DCSA OIG, DCIS, and our federal prosecutor for their commitment to protect the public and hold officials accountable for criminal violations of their oaths to serve and protect the public.”
“Compromising the integrity of the security clearance process puts our country’s most sensitive information at unnecessary risk,” said Darrin K. Jones, Special Agent-in-Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS, along with our investigative partners, will continue to aggressively pursue bad actors whose actions threaten to undermine the public’s trust.”
The Defense Counterintelligence and Security Agency, Office of Inspector General and Department of Defense Office of Inspector General, Defense Criminal Investigative Service investigated this case. The sentence was imposed by U.S. District Court Judge Richard L. Young.
U.S. Attorney Myers thanked Assistant U.S. Attorney James Warden, who prosecuted this case.
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Former Boston Police Sergeant Sentenced for Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police Sergeant was sentenced on June 18, 2024 for his involvement in a long running overtime fraud scheme at the Boston Police Department’s (BPD) evidence warehouse.
William Baxter, 63, of Hyde Park, was sentenced by U.S. District Court Judge Patti B. Saris to three years of supervised release, with seven months to be served in home detention. Baxter was also ordered to pay a fine of $20,000 and restitution of $9,223. In June 2021, Baxter pleaded guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds.
From March 2015 through June 2016, Baxter submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Baxter claimed to have worked from 4 – 8 p.m., but he routinely left at 6 p.m., and sometimes earlier. Additionally, Baxter knowingly endorsed the fraudulent overtime slips of his subordinates who, allegedly, also left early from this shift. For the “kiosk” shift, Baxter and, allegedly, others routinely submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, allegedly, other members of the unit, only worked three-to-four hours of those shifts.
Between March 2015 and June 2016, Baxter personally collected approximately $9,223 for overtime hours he did not work.
Baxter was one of 15 police officers charged in connection with committing overtime fraud at the Boston Police Department’s evidence warehouse, 10 of whom were convicted either by guilty plea or jury verdict. Of the remaining officers charged, four were acquitted in April 2023 and one officer passed away while charges were pending.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
Acting United States Attorney Joshua S. Levy; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Mark Grady and Kunal Pasricha of the Criminal Division prosecuted the case.
Former Boston Police Officer Sentenced for Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police officer was sentenced today for his involvement in a long running overtime fraud scheme at the Boston Police Department’s (BPD) evidence warehouse.
Joseph Nee, 50, of Taunton, was sentenced by U.S. District Court Judge Patti B. Saris to two years’ probation. Nee was also ordered to pay a $2,000 fine and restitution of $12,636. In June 2021, Nee pleaded guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds.
From at least January 2015 through August 2017, Nee submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Nee claimed to have worked from 4 – 8 p.m., but he routinely left at 6 p.m., or earlier. For the “kiosk” shift, Nee submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, other members of the unit only worked three-to-four hours of those shifts. As a result, between January 2015 and August 2017, Nee personally collected approximately $12,636 for overtime hours he did not work.
Nee was one of 15 police officers charged in connection with committing overtime fraud at the Boston Police Department’s evidence warehouse, 10 of whom were convicted either by guilty plea or jury verdict. Of the remaining officers charged, four were acquitted in April 2023 and one officer passed away while charges were pending.
Acting United States Attorney Joshua S. Levy; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Mark Grady and Kunal Pasricha of the Criminal Division prosecuted the case.
Former Bank Senior Vice President Pleads Guilty to Bank FraudRead the Press Release
OKLAHOMA CITY – JOHN PADILLA, 44, of Lawton, has pleaded guilty to bank fraud, announced U.S. Attorney Robert J. Troester.
On May 7, 2024, Padilla was charged by Information with bank fraud. According to the Information, between February 2013 and December 2019, Padilla served as senior vice president and commercial loan officer for a federally insured bank located in Lawton. During that time, Padilla executed a scheme in which he recruited borrowers to apply for loans, many of which were not creditworthy and were in fact Padilla’s friends and associates. Padilla told the borrowers he would use the loan proceeds to invest in his real estate ventures, and that he would pay the borrowers a percentage of the profit.
The Information further alleges that Padilla would use most of the loan proceeds to support his gambling habit, while also using proceeds to make payments toward prior loans issued as part of the scheme. In all, Padilla’s actions cost the bank more than $1,000,000.
On June 17, 2024, Padilla pleaded guilty, and admitted to recruiting an associate to apply for a loan, knowing the proceeds were for his own personal use. At sentencing, Padilla faces up to 30 years in federal prison and a fine of up to $1,000,000.
This case is the result of an investigation by the Federal Deposit Insurance Corporation – Office of Inspector General, and the Federal Housing Finance Agency – Office of Inspector General. Assistant U.S. Attorney Charles Brown is prosecuting the case.
Reference is made to public filings for additional information.
Florida Man Charged with Embezzling $5.7 Million from EmployerRead the Press Release
BOSTON – A Florida man was indicted today for allegedly embezzling at least approximately $5.7 million from his employer, a Florida-based portfolio company owned by a Massachusetts investment firm.
Paul Schnitzer, 51, of Clermont, Fla., was indicted on one count of wire fraud. He will appear in federal court in Boston at a later date. Schnitzer was previously arrested and charged by criminal complaint on May 21, 2024.
According to the charging documents, Schnitzer worked as the finance director for the portfolio company. It is alleged that between January 2022 and May 2024, Schnitzer made over 100 transfers, most disguised as “equity distributions,” from the company’s operating account into his personal account. To hide these transfers, Schnitzer allegedly provided falsified financial reports with inflated cash balances for the company to the investment firm. It is also alleged that Schnitzer secretly used a line of credit to replenish the company’s operating account after he had stolen from it.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000, or twice the loss to the victim. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Fleeing Felon Pleads Guilty to Possessing A FirearmRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Dominick Yvon Louissaint (19, Lake Mary) has pleaded guilty to possessing a firearm as a convicted felon. Louissaint faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to court documents, Louissaint has previously been convicted of felonies on three occasions, including robbery and firearms offenses. On January 24, 2024, officers with the Sanford Police Department responded to a call about a suspected burglary. The officers encountered Louissaint at the scene and ordered him to show his hands. Instead, Louissaint attempted to flee from the officers and was later apprehended. The officers located a loaded Taurus pistol concealed in Louissaint’s pant leg and a box of ammunition in his pocket. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
As a result of his plea, Louissaint will forfeit the firearm and ammunition involved in the offense.
This case was investigated by the Federal Bureau of Investigation, with valuable assistance from the Sanford Police Department. It is being prosecuted by Assistant United States Attorney Richard Varadan.
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.
Five Men Convicted for Operating Major Illegal Streaming ServiceRead the Press Release
A federal jury in Las Vegas convicted five men this week for their roles in running one of the largest unauthorized streaming services in the United States, which generated millions of dollars in subscription revenue while causing substantial harm to television program copyright owners.
According to court documents and evidence presented at trial, beginning as early as 2007, Kristopher Dallmann, Douglas Courson, Felipe Garcia, Jared Jaurequi, and Peter Huber operated an online, subscription-based streaming service known as Jetflicks. The Jetflicks group used sophisticated computer scripts and software to scour pirate websites for illegal copies of television episodes, which they then downloaded and hosted on Jetflicks servers. The group reproduced hundreds of thousands of copyrighted television episodes without authorization, amassing a catalog larger than the combined catalogues of Netflix, Hulu, Vudu, and Amazon Prime. Dallmann and his co-conspirators made millions of dollars streaming and distributing this catalogue of stolen content to tens of thousands of paid subscribers.
“The defendants operated Jetflicks, an illicit streaming service they used to distribute hundreds of thousands of stolen television episodes,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Their scheme generated millions of dollars in criminal profits, while causing copyright owners to lose out. These convictions underscore the Criminal Division’s commitment to protecting intellectual property rights by prosecuting digital piracy schemes and bringing offenders to justice.”
“The defendants conspired to operate an online streaming service that unlawfully reproduced and distributed thousands of copyrighted television programs for their own personal gain,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “This case is another example of our steadfast commitment to combat intellectual property theft and to hold accountable those who violate intellectual property rights laws.”
“The defendants ran a platform that automated the theft of TV shows and distributed the stolen content to subscribers,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “When complaints from copyright holders and problems with payment service providers threatened to topple the illicit multimillion-dollar enterprise, the defendants tried to disguise Jetflicks as an aviation entertainment company. Digital piracy is not a victimless crime. As these convictions demonstrate, the FBI will indeed investigate those who illegally profit from the creative works of others.”
The jury convicted Dallman, Courson, Garcia, Jaurequi, and Huber of conspiracy to commit criminal copyright infringement. The jury also convicted Dallmann of two counts of money laundering by concealment and three counts of misdemeanor criminal copyright infringement. Courson, Garcia, Jaurequi, and Huber each face a maximum penalty of five years in prison, and Dallmann faces a maximum penalty of 48 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office investigated the case, with assistance from the FBI Las Vegas Field Office.
Trial Attorneys Michael Christin, Christopher Merriam, and Matthew Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Jessica Oliva and Edward Veronda for the District of Nevada are prosecuting the case, with assistance from the CCIPS Paralegal Edie Britman.
Five Men Convicted for Operating Major Illegal Streaming ServiceRead the Press Release
LAS VEGAS - A federal jury in Las Vegas convicted five men this week for their roles in running one of the largest unauthorized streaming services in the United States, which generated millions of dollars in subscription revenue while causing substantial harm to television program copyright owners.
According to court documents and evidence presented at trial, beginning as early as 2007, Kristopher Dallmann, Douglas Courson, Felipe Garcia, Jared Jaurequi, and Peter Huber operated an online, subscription-based streaming service known as Jetflicks. The Jetflicks group used sophisticated computer scripts and software to scour pirate websites for illegal copies of television episodes, which they then downloaded and hosted on Jetflicks servers. The group reproduced hundreds of thousands of copyrighted television episodes without authorization, amassing a catalog larger than the combined catalogues of Netflix, Hulu, Vudu, and Amazon Prime. Dallmann and his co-conspirators made millions of dollars streaming and distributing this catalogue of stolen content to tens of thousands of paid subscribers.
“The defendants operated Jetflicks, an illicit streaming service they used to distribute hundreds of thousands of stolen television episodes,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Their scheme generated millions of dollars in criminal profits, while causing copyright owners to lose out. These convictions underscore the Criminal Division’s commitment to protecting intellectual property rights by prosecuting digital piracy schemes and bringing offenders to justice.”
“The defendants conspired to operate an online streaming service that unlawfully reproduced and distributed thousands of copyrighted television programs for their own personal gain,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “This case is another example of our steadfast commitment to combat intellectual property theft and to hold accountable those who violate intellectual property rights laws.”
“The defendants ran a platform that automated the theft of TV shows and distributed the stolen content to subscribers,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “When complaints from copyright holders and problems with payment service providers threatened to topple the illicit multimillion-dollar enterprise, the defendants tried to disguise Jetflicks as an aviation entertainment company. Digital piracy is not a victimless crime. As these convictions demonstrate, the FBI will indeed investigate those who illegally profit from the creative works of others.”
The jury convicted Dallman, Courson, Garcia, Jaurequi, and Huber of conspiracy to commit criminal copyright infringement. The jury also convicted Dallmann of two counts of money laundering by concealment and three counts of misdemeanor criminal copyright infringement. Courson, Garcia, Jaurequi, and Huber each face a maximum penalty of five years in prison, and Dallmann faces a maximum penalty of 48 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office investigated the case, with assistance from the FBI Las Vegas Field Office.
Trial Attorneys Michael Christin, Christopher Merriam, and Matthew Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Jessica Oliva and Edward Veronda for the District of Nevada are prosecuting the case, with assistance from the CCIPS Paralegal Edie Britman.
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Federally Licensed Firearms Dealer Sentenced to Three Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Angel Ruben Hernandez, Jr. (75, Altamonte Springs) to three years in federal prison for failing to record required information about firearms purchases. Hernandez entered a guilty plea on January 22, 2024.
According to court documents, Hernandez was an owner and responsible party for Arms Hill LLC, a federally licensed firearms dealer (FFL or Federal Firearms Licensee) from 2019 through 2023. In 2022, the FBI obtained information that Hernandez was supplying firearms to an individual who was unlawfully selling them to drug dealers and convicted felons and that Hernandez was falsifying paperwork in connection with supplying those firearms. FFL dealers who operate within the law require purchasers to complete specific forms (ATF Form 4473) and answer numerous questions about the buyer’s background and eligibility to purchase firearms.
Beginning in April 2023, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), through a cooperating source, conducted a series of undercover purchases from Hernandez. On April 20 and 24, 2023, and May 1, 2023, Hernandez sold nine firearms to the ATF’s source. Hernandez charged above-market prices for the firearms while also creating false ATF Form 4473 forms documenting fake sales to Hernandez’s relatives. On May 19, 2023, during the execution of a search warrant, ATF agents found pre-filled ATF 4473 forms with information from Hernandez’s relatives that had been pre-populated and prepared for future fake sales. Hernandez’s FFL records indicate that nearly a quarter of his sales as an FFL from 2019-2023, including more than 260 firearms, were recorded as though they were sold to his relatives.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Federal Bureau of Investigation, the Apopka Police Department, and the Altamonte Springs Police Department. It was prosecuted by Assistant United States Attorneys Dana E. Hill and Noah P. Dorman.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Fake ID Producers IndictedRead the Press Release
PHOENIX, Ariz. – Jonathan De La Riva-Lorenzo, 46, and Fernando Minkes-Rodriguez, 48, both undocumented noncitizens residing in Phoenix, were indicted last week by a federal grand jury in Phoenix. Each was charged with one count of Conspiracy to Commit Fraud in Connection with Production of Identification Documents and two counts of Aggravated Identity Theft, Aiding and Abetting.
The indictment alleges that De La Riva-Lorenzo and Minkes-Rodriguez conspired, produced, and possessed false identification documents that were made to appear to have been issued by the United States.
De La Riva-Lorenzo and Minkes-Rodriguez worked together to make fraudulent identity documents, including lawful permanent resident cards (“green cards”), social security cards and state identification cards for undocumented noncitizens. De La Riva-Lorenzo and Minkes-Rodriguez required their customers to provide their biographical information, along with a headshot, which was used in producing the documents.
On May 14, 2024, special agents with Homeland Security Investigations executed federal search warrants at several locations in Arizona associated with De La Riva-Lorenzo and Minkes-Rodriguez. Agents seized a multitude of fraudulently made documents, as well as supplies to make fraudulent documents, such as industrial printers, laminate, and ink cartridges. Additionally, multiple erroneous fraudulent identity documents were discovered in Minkes-Rodriguez’ garbage.
A conviction for Conspiracy to Commit Fraud in Connection with Production of Identification Documents carries a maximum penalty of 15 years in prison, a $250,000 fine, and up to three years of supervised release. A conviction for Aggravated Identity Theft, Aiding and Abetting carries a mandatory consecutive term of two years in prison, a maximum fine of $250,000, and up to three years of supervised release.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Homeland Security Investigations conducted the investigation in this case. Special Assistant U.S. Attorney Sydney Yew and Assistant U.S. Attorney Michael Shaw, District of Arizona, Phoenix, are handling the prosecution.
CASE NUMBER: CR-24-1000-PHX-MTL
RELEASE NUMBER: 2024-078_De La Riva# # #
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.Executives for Fresno-Based Business American Labor Alliance Convicted of Multi-Million Dollar Fraud Following Five-Week TrialRead the Press Release
FRESNO, Calif. — Following a 19-day trial, on Tuesday, a jury convicted Fresno residents Marcus Asay, 68; Antonio Gastelum, 53; and their company, Agricultural Contracting Services Association dba American Labor Alliance (ALA), of committing a multi-year pension fraud scheme, U.S. Attorney Phillip A. Talbert announced.
The jury also convicted Asay and ALA of committing separate workers’ compensation and hardship exemption fraud schemes. The hardship exemption fraud scheme involved a supposed exemption from the Affordable Care Act’s requirement that people obtain health insurance or pay a significant shared responsibility payment when they file their taxes. Finally, the jury convicted Asay of laundering money that he received from the pension fraud scheme.
According to court documents and evidence presented at trial, Asay was the founder and chairman of ALA, and Gastelum was the company’s Chief Operating Officer, Chief Financial Officer, and Compliance Officer. Gastelum is also the former city manager for the City of Parlier. From 2011 through 2019, the defendants offered three sham products: retirement plan, workers’ compensation coverage, and hardship exemption.
Pension Fraud Scheme
For the pension fraud scheme, Asay, Gastelum, and ALA falsely represented to over 3,000 people that they would protect and invest their retirement money through a 401(k) Plan when, in fact, they used the money for improper business and personal expenses. The improper expenses included restaurants, travel, credit cards, rare coins, transfers to Asay’s personal retirement account, online companion websites, and rent for Asay’s lakefront house in Fresno. The defendants then covered up the fact that the retirement money was gone by taking money the company received from the workers’ compensation fraud scheme and holding those funds out as pension funds. The loss caused by the pension fraud scheme was over $750,000.
Workers’ Compensation Fraud Scheme
For the workers’ compensation fraud scheme, Asay and ALA falsely represented that national insurers backed the workers’ compensation coverage that the company offered in several states, including California. The defendants did so by listing the national insurers on the certificates of insurance and policy declarations that the company issued to customers. The accuracy of the certificates of insurance and policy declarations was important to the customers because they needed to present these items to their own customers and regulators as proof of having workers’ compensation coverage in order to continue doing business. When government authorities began investigating the workers’ compensation fraud scheme, the defendants sent letters to customers telling them not to cooperate. The loss caused by the workers’ compensation fraud scheme was over $2,250,000.
Hardship Exemption Fraud Scheme
For the hardship exemption fraud scheme, Asay and ALA falsely represented that for a few hundred dollars they could provide people with an exemption that would protect them from The Affordable Care Act’s shared responsibility payment for not having health insurance when, in fact, only government agencies could issue such exemptions. Moreover, the exemptions were free to those who qualified.
This case is the product of an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration and Office of Labor-Management Standards, the Federal Bureau of Investigation, the IRS Criminal Investigation, and the Social Security Administration Office of Inspector General. Assistant U.S. Attorneys Michael Tierney, Joseph Barton, and Stephanie Stokman are prosecuting the case.
The defendants are scheduled to be sentenced on Oct. 21, 2024, by U.S. District Judge Dale A. Drozd. Asay and Gastelum face up to 20 years in prison for each count of conviction as well as maximum fines ranging from $250,000 to $500,000 per count. ALA faces up to an $8.5 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
El Departamento de Justicia llega a un acuerdo con una agencia internacional de dotación de personal para resolver acusaciones de discriminación en la contratación en los Estados UnidosRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con eTeam, Inc. (eTeam), una agencia de dotación de personal en línea que presta servicios a empresas por todo Estados Unidos y el mundo. El acuerdo resuelve la determinación del Departamento que eTeam discriminó a no ciudadanos de los EE. UU. con permiso para trabajar en los Estados Unidos cuando los excluyó de oportunidades laborales con base en su ciudadanía o estatus migratorio, en contra de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
«Las empresas de dotación de personal no pueden participar en prácticas de contratación y reclutamiento que excluyan o disuadan ilegalmente a personas con permiso para trabajar en los Estados Unidos debido a su ciudadanía o estatus migratorio», comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá responsabilizando a las empresas por participar en prácticas que creen barreras al empleo, en contra de las leyes federales de derechos civiles de nuestra nación».
La investigación de la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División de Derechos Civiles determinó que, durante varios meses en el año 2021, eTeam distribuía regularmente anuncios de empleo que contenían restricciones de contratación ilegales basadas en el estatus de ciudadanía o que de otro modo seleccionaba a los candidatos en función de su estatus de ciudadanía. Estas acciones perjudicaron a residentes permanentes legales e individuos a los que se les ha otorgado el asilo o el estatus de refugiado al disuadirles de presentar una solicitud para los anuncios de trabajo y no considerar, de forma significativa, a aquellos que sí solicitaron un trabajo.
En virtud de los términos del acuerdo, eTeam pagará $232,500 en sanciones civiles a los Estados Unidos y destinará otros $325,000 para compensar a los trabajadores afectados. El acuerdo también requiere que eTeam capacite a su personal en cuanto a los requisitos de la INA, que revise sus políticas de empleo y que se someta a los requisitos de supervisión y declaración departamentales.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, por lo general, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación en la contratación y el reclutamiento en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; enviar un correo electrónico a [email protected]; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
El Departamento de Justicia llega a un acuerdo con la Fiscalía Estatal de Florida para resolver alegaciones de discriminación contra imputados hispanosRead the Press Release
El Departamento de Justicia ha anunciado hoy que ha llegado a un acuerdo con la Fiscalía Estatal de Florida para el Segundo Circuito Judicial (SAO, por sus siglas en inglés) que resuelve las alegaciones de infracciones del Título VI de la ley de Derechos Civiles de 1964 (Título VI).
En concreto, el acuerdo resuelve las alegaciones de discriminación contra imputados hispanos acusados de conducir sin una licencia de conducir válida al proporcionarles ofertas de declaración de culpabilidad menos favorables que a imputados no hispanos acusados del mismo delito. El Título VI prohíbe la discriminación por motivos de raza, color de piel y origen nacional por parte de entidades que reciben apoyo financiero federal.
«Para garantizar la equidad, el tratamiento equitativo y la seguridad pública, los fiscales estatales y federales deben proporcionar un trato igualitario en todos los aspectos de la administración de la justicia, incluidos los acuerdos de declaración de culpabilidad», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «A través de este acuerdo, el Fiscal Estatal de Florida para el Segundo Circuito Judicial está tomando medidas que ayudarán a garantizar que se sirva a la comunidad sin sesgos ni discriminación».
La investigación del Departamento fue impulsada por alegaciones de que la SAO publicó pautas para ofertas de declaración de culpabilidad discriminatorias, basadas en la nacionalidad de origen, al proporcionar ofertas de declaración de culpabilidad más severas para individuos hispanos que conducen sin una licencia válida en comparación con otros individuos en una situación parecida.
La SAO cooperó plenamente con la consulta del Departamento y, en virtud de los términos del acuerdo, acordó tomar una serie de medidas para garantizar que no habría discriminación en el enjuiciamiento, incluida la implementación de una nueva política antidiscriminatoria y la capacitación de su personal en cuanto a las obligaciones antidiscriminatorias.
Además, la SAO se comprometió a convocar a un grupo de trabajo de partes interesadas de la comunidad para ayudar con los esfuerzos continuos de la SAO por desarrollar mejores prácticas para trabajar con la comunidad a la que sirve. La SAO también enviará una carta a los demandados que puedan haberse visto afectados por la supuesta política discriminatoria, ofreciéndoles la oportunidad de buscar una disposición alternativa de su cargo. La carta se traducirá para los imputados con un dominio limitado del inglés. La SAO ha declarado que sigue comprometida a garantizar que ningún imputado se discrimine con respecto a ofertas de declaración de culpabilidad hechas por el cargo de conducir sin una licencia de conducir válida.
Hay más información sobre la División de Derechos Civiles en su sitio web en a www.justice.gov/crt. Los miembros del público pueden denunciar posibles infracciones de los derechos civiles en civilrights.justice.gov/report/.
Davenport Man Sentenced to 120 Months in Federal Prison for Conspiracy to Distribute MethRead the Press Release
Davenport, Iowa – A Davenport man was sentenced today to 120 months in federal prison for Conspiracy to Distribute 500 Grams or More of Methamphetamine.
According to public court documents and evidence presented at sentencing, on April 25, 2019, Illinois State Police initiated a traffic stop of a van. Henry Earl Dinkins, 51, was a passenger in the van. The van was searched after a canine alerted to the presence of narcotics. Troopers found three bags containing a total of approximately 5,600 ecstasy pills, found to contain methamphetamine, which Dinkins intended to redistribute in the Davenport area. In September 2019, a confidential source bought pills containing methamphetamine from Dinkins.
Dinkins’ sentence is to be served consecutively to his convictions for first-degree murder and first-degree kidnapping in the Iowa District Court in Scott County, in which he received life sentences without the possibility of parole. After completing his federal term of imprisonment, Dinkins will be required to serve supervised release for a term of life. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Illinois State Police and the Scott County Sheriff’s Office.
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.
Columbus man sentenced to prison for fraud crimes related to stealing identities for lines of creditRead the Press Release
COLUMBUS, Ohio – A Columbus man was sentenced in federal court here today to 30 months in prison for committing fraud crimes related to stealing identities to get more than $100,000 in fraudulent lines of credit.
Siyuan Ye, 24, of Columbus, pleaded guilty in February 2024 to mail fraud and aggravated identity theft.
According to court documents, between January 2022 and August 2023, Ye stole the identities of at least 15 victims. Ye repeatedly obtained Ohio and Florida driver licenses of other individuals without their authorization and then used the licenses to fraudulently obtain credit from retailers in the victims’ names.
He used the fraudulent credit to purchase a Chevrolet Corvette Stingray, three motorcycles and a variety of electronics.
For example, in April 2023, Ye used a stolen identity and fraudulent line of credit to purchase $8,400 worth of goods from a Micro Center in Columbus. Ye bought graphics cards, laptops and an Apple watch.
That same month, Ye used the same Ohio victim’s identity to buy a Suzuki motorcycle at Iron Pony Motorsports in Westerville.
Ye also used another victim’s identity to rent an apartment and obtain renter’s insurance.
Ye has no legal status in the United States; he entered the country in 2017 on a student visa to attend The Ohio State University. He did not complete his degree and unlawfully remained in the United States.
As part of his sentence, the defendant was ordered to pay more than $78,000 in restitution.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Jared Murphy, Acting Special Agent in Charge, Homeland Security Investigations (HSI) Detroit, announced the sentence imposed today by U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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Co-Worker Who Sold His Friend Fentanyl Pills Causing His Death Sentenced to 84 Months in Federal PrisonRead the Press Release
BOISE – Tanner Lee Goforth, 38, of Nampa, was sentenced to seven years in federal prison for selling a co-worker fentanyl that led to his overdose death, U.S. Attorney Josh Hurwit announced today.
According to court records, on May 17, 2022, Goforth met his friend and co-worker, the victim, at a local gas station where Goforth sold the victim ten fentanyl pills. The victim went home, ingested the fentanyl intravenously, and died almost immediately. Nearly a half hour later, his girlfriend found him in their bathroom, called 911, and began performing CPR. Nampa Police Department officers and Nampa Fire Protection District arrived on scene and attempted life-saving measures including the administration of Narcan. Unfortunately, the victim was unable to be resuscitated.
“This case tragically illustrates the toll that fentanyl is taking in Idaho,” said U.S. Attorney Hurwit. “All of our communities need to know how deadly fentanyl is and individuals need to know that we will hold them accountable if they distribute fentanyl to others.”
“This case should serve as a warning of just how lethal fentanyl can be, even if obtained from a trusted friend,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “The overdose epidemic has taken too many lives. The FBI and our partners will relentlessly pursue those who profit from addictions and contribute to the harm in our communities.”
“The harm being done by fentanyl in our communities is devastating,” said Nampa Chief of Police Joe Huff. “Families and friends are suffering as they lose their loved ones to this deadly drug. Those responsible must be held accountable.”
U.S. District Judge Amanda K. Brailsford also ordered Goforth to pay a $1,000 fine and to serve three years of supervised release following his prison sentence. Goforth pleaded guilty to the charge on March 7, 2024.
U.S. Attorney Hurwit commended the investigations by the Nampa Police Department, the Drug Enforcement Administration, the Canyon County Coroner’s Office, and the Federal Bureau of Investigation, which led to the charges. Assistant U.S. Attorney David Morse prosecuted the case.
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Chattanooga Man Sentenced to More Than 6 Years’ Imprisonment for Possessing “Glock Switch” and Fentanyl PillsRead the Press Release
CHATTANOOGA, Tenn. – June 20, 2024, Christian J. Williams, 22, was sentenced to 75 months in prison by the Honorable Charles E. Atchley, Jr., United States District Judge, in the United States District Court for the Eastern District of Tennessee at Chattanooga. Following his incarceration, Williams will be on supervised release for three years.
As part of the plea agreement filed with the court, Williams agreed to plead guilty to one count of possession a machinegun in violation of Title 18, U.S.C. § 922(o) and one count of possession of fentanyl with the intent to distribute, in violation of Title 21, U.S.C. §§ 841(a)(1) and 841(b)(1)(C).
According to filed court documents, in December 2021, Chattanooga Police Officers attempted to conduct a traffic stop on a stolen vehicle. The vehicle fled and ultimately crashed. Williams exited the passenger-side door and fled on foot. Officers gave chase, caught Williams, and found him in possession of fentanyl pills and a Glock, Model 27, .40 caliber pistol with an installed machinegun conversion device, colloquially known as a “switch.”
The “switch” enabled the pistol to fire “fully automatic,” that is, fire multiple rounds by a single pull of the trigger. Possession of a “switch” is illegal under Federal law, as the National Firearms Act classifies the “switch” itself as a machine gun.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) made the announcement.
The criminal indictment was the result of an investigation by the ATF Chattanooga Field Office, the ATF Firearms Technology Branch, and the Chattanooga Police Department.
Assistant United States Attorney Kevin T. Brown represented the United States.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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California man and Miami woman charged in the murder of a victim at Aladdin Hotel in MiamiRead the Press Release
MIAMI – On June 20, Jimmy Sanchez, 36, of San Diego, Calif., and Tsvia Kol, 36, of Miami were charged in the execution-style murder of a victim at the Aladdin Hotel in Miami. The indictment charges both Sanchez and Kol with conspiracy to possess with intent to distribute a controlled substance, discharge of a firearm in furtherance of a drug trafficking offense, and causing a death in the course of the drug trafficking conspiracy.
On November 29, 2022, the victim was lured to the Aladdin Hotel by Kol, who demanded to know the whereabouts of a missing methamphetamine package she believed the victim stole. Kol arranged for Sanchez to fly to Miami, from San Diego, to assist her with locating the missing package and the subsequent murder of the victim. Law enforcement discovered the victim lying in the hotel room with two gunshot wounds to the face and head.
If convicted at trial, Sanchez and Kol face a mandatory sentence of life in prison, up to life of supervised release, and up to $10,000,000 in fines.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, and Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD) made the announcement.
DEA Miami Field Division and MDPD investigated the case. FBI, Homeland Security Investigations (HSI), Miami, and U.S. Postal Inspection Service (USPIS), Miami Division assisted with this matter. Assistant U.S. Attorneys Yara Dodin and Monica Castro are prosecuting it. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-20149.
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Burlington County Man Admits Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Burlington County, New Jersey, man today admitted possessing multiple images and videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Dennis Nerolich, 68, of Burlington, New Jersey, and formerly of New Egypt, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with possession of child pornography.
According to documents filed in this case and statements made in court:
From March 2016 to May 1, 2018, Nerolich possessed multiple images and videos of child sexual abuse. Nerolich received the images and videos from his roommate or landlord at the time, Frank Maile.
On Sept. 6, 2023, Maile pleaded guilty before Judge Martinotti to Count Four of a five-count indictment, charging him with travelling in foreign commerce and engaging in illicit sexual conduct, that is, a sexual act with a person under 18 years of age, a commercial sex act, and production of child pornography. Maile is scheduled to be sentenced on June 27, 2024.
The charge of possession of child pornography carries a statutory maximum of 10 years in prison, and a $250,000 fine. Sentencing is scheduled for Nov. 6, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Camden.
nerolich.information.pdfBridgeport Felon Admits Possessing Gun with Extended Magazine While on Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that on June 18, 2024, JORGE MORALES, also known as “Capone,” 38, of Bridgeport, pleaded guilty before U.S. District Judge Stefan R. Underhill in Bridgeport to unlawful possession of a firearm by a felon.
According to court documents and statements made in court, in January 2017, Morales was sentenced in Bridgeport federal court to 46 months of imprisonment and three years of supervised release for distributing heroin. The investigation revealed that in April 2016 Morales distributed heroin to a 21-year-old woman who died of an overdose from the drug. Morales was released from federal prison in September 2019.
On December 17, 2021, while Morales was on federal supervised release, Bridgeport Police conducted a traffic stop of an SUV Morales was driving because the vehicle had been spotted near the scene of a shooting incident and homicide on Barnum Avenue earlier that day. Before the SUV came to a complete stop, a juvenile girl ran from it carrying an object close to her chest. As officers apprehended the girl, she dropped a loaded Glock 22 semi-automatic handgun with an extended magazine. The investigation revealed that the gun belonged to Morales and that, as he was being pulled over, he told the girl to take the gun and run.
In addition to his prior federal conviction, Morales’ criminal history includes state convictions for drug and firearm felony offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
Judge Underhill scheduled sentencing for September 10, 2024, at which time Morales faces a maximum term of imprisonment of 10 years for unlawfully possessing the firearm. He also faces penalties for violating the conditions of his supervised release.
Morales has been detained since his arrest.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, the Bridgeport Police Department, and the Stratford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Daniel George and Karen Peck.
The prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
Billings man sentenced to two years in prison for bank robberyRead the Press Release
BILLINGS — A Billings man convicted for his role in two bank robberies within days of each other was sentenced today to two years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Steven Whitecloud, 88, pleaded guilty in February to bank robbery.
U.S. District Judge Susan P. Watters presided. The court also ordered $3,092 restitution. Whitecloud was ordered to report to the U.S. Marshals Service pending designation to a Bureau of Prisons medical facility.
The government alleged in court documents that on Aug. 24, 2023, co-defendant Patrick Justice entered U.S. Bank, on Grand Avenue in Billings, presented the teller a note that demanded money, received money and fled in a Ford Taurus. Four days later, on Aug. 28, 2023, Justice entered Wells Fargo Bank, on Main Street, and again presented a demand note to the teller and told the teller he was “strapped,” which the teller interpreted as he was armed with a gun. The teller gave Justice money, and he fled. As officers responded to the scene, they spotted a green Taurus matching the description from the first bank robbery. Officers attempted to stop the vehicle, and, after a pursuit, pulled over the vehicle and detained Justice and Whitecloud. Whitecloud told officers he suggested he and Justice rob banks to make money, as he had done in the past. Whitecloud was convicted in 2008 of bank robbery. Whitecloud admitted he showed Justice what banks to rob and acted as the getaway driver. Justice was sentenced to two years in prison for his conviction in the case.
The U.S. Attorney’s Office prosecuted the case. The Billings Police Department conducted the investigation.
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Averhealth to Pay over $1.3 Million to Resolve False Claims Act Allegations Related to Drug Tests Used in Michigan’s Children’s Protective Services & Foster Care ProgramsRead the Press Release
DETROIT– United States Attorney Dawn N. Ison announced today that Avertest, LLC, a forensic drug testing company based in Richmond, VA, and which does business nationwide under the name Averhealth, has agreed to pay $1,344,621 to settle allegations that it knowingly violated the False Claims Act (FCA) by submitting to the Michigan Department of Health and Human Services (MDHHS) improper claims for payment for drug tests.
Joining in the announcement was Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG).
In 2019, Averhealth began performing drug screening and confirmation testing for the State of Michigan’s Children’s Protective Services and Foster Care programs under a contract with MDHHS. To pay for these services, MDHHS utilized funds from the Social Services Block Grant, which provides annual federal assistance to states to support social services programs and is administered by the U.S. Department of Health and Human Services Administration for Children and Families.
The settlement announced today resolves allegations that from May 15, 2019, through November 30, 2020, Averhealth violated the FCA when it knowingly submitted, or caused the submission of, claims for payment to MDHHS, and knowingly made statements material to those claims, which concerned positive drug test results for oral fluid samples that were not confirmed using a mass spectrometric method analytically different from the screening method, and did not conform to the terms of the contract between Averhealth and MDHHS.
“Averhealth failed to meet its commitments to MDHHS yet continued to claim entitlement to payment for its nonconforming services,” said U.S. Attorney Ison. “This outcome highlights our Office’s continued commitment to hold accountable any business or person who is dishonest in their dealings with programs funded by the Federal Government.”
The civil settlement includes the resolution of claims brought by Dr. Sarah Riley under the qui tam or whistleblower provisions of the False Claims Act. These provisions allow a private party, known as a relator, to file an action on behalf of the United States and receive a portion of any recovery. Dr. Riley will receive $228,586 as part of the settlement. The qui tam case is captioned U.S. ex rel. Riley v. Avertest, LLC d/b/a Averhealth, No. 2:21-cv-10560 (E.D. Mich.).
This matter was handled by Assistant U.S. Attorney Anthony Gentner from the United States Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability
Attack on officer in downtown Houston sends local man to prisonRead the Press Release
HOUSTON – A 38-year-old Houston resident has been sentenced for assault of a federal officer after damaging two downtown buildings, announced U.S. Attorney Alamdar S. Hamdani.
Justin Wade Prophet pleaded guilty March 25.
U.S. District Judge David Hittner has now ordered Prophet to serve 150 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted Prophet’s childhood and mental health challenges made this sentencing one of the most difficult cases he has had. However, the court emphasized the seriousness of the offense warranted a higher term of imprisonment. The court felt the sentence was appropriate given the need to enforce respect for the law and to protect the public from future crimes.
On Oct. 26, 2023, Prophet was outside the federal courthouse in Houston during the early morning hours when he smashed a window with a long metal pole. He then walked to another building across the street, broke another window with the same pole and gained entry. While inside, he attempted to assault an individual who was on his way to work. He also damaged additional property.
Authorities from the federal courthouse confronted him shortly thereafter, at which time Prophet struck one of them with the pole. The officer shot Prophet in his lower extremities. Law enforcement immediately took Prophet into custody and transported him to the hospital.
Prophet will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Homeland Security - Federal Protective Service and Houston Police Department conducted the investigation. Assistant U.S. Attorney Barri Dean handled the sentencing.
Alamogordo Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
ALBUQUERQUE – An Alamogordo man pleaded guilty in federal court to charges related to the unregistered weapon used to shoot and kill Alamogordo Police Officer Anthony Ferguson.
According to publicly available court documents, Jonah Apodaca, 31, provided a “sawed-off” shotgun to Dominic Cruz De La O which he later used to shoot and kill Alamogordo Police Officer Anthony Ferguson. Apodaca’s DNA was located on the shotgun shell recovered from the chamber of the shotgun and ammunition from the magazine tube.
The Court ordered that Apodaca remain in custody pending sentencing, which has not been scheduled.
At sentencing, Apodaca faces up to 15 years in prison. Upon his release from prison, Apodaca will be subject to up to three years of supervised release.
De La O was charged with possession of a firearm not registered with the National Firearm Registration and Transfer Record and possession of a firearm not identified by a serial number. De La O remains in custody pending trial.
U.S. Attorney Alexander M.M. Uballez and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement today.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Alamogordo Police Department, New Mexico State Police, and the Otero County Sheriff’s Office. Assistant U.S. Attorneys Maria Y. Armijo and Ry Ellison are prosecuting the case.
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24 Federally Indicted in San Antonio for Alleged Drug and Firearm TraffickingRead the Press Release
SAN ANTONIO – U.S. Attorney Jaime Esparza for the Western District of Texas announced at a press conference Thursday that 24 alleged members and associates of the Mexican American prison gang Hermanos de Pistoleros Latinos were indicted in San Antonio for criminal charges related to their alleged drug and firearm trafficking.
Law enforcement arrested 19 alleged gang members and associates Tuesday in an operation involving federal, state and local agencies. Five of the 24 defendants were already in federal or state custody prior to Tuesday’s arrests.
The indictment carries 24 counts including conspiracy to possess with intent to distribute methamphetamine; conspiracy to possess with intent to distribute heroin; conspiracy to possess with intent to distribute cocaine; conspiracy to possess firearms in furtherance of drug trafficking; conspiracy to traffic firearms; and more. If convicted, the defendants face varying ranges of time in prison, from maximum sentences of 15 or 20 years to penalties of five years to life in prison.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Thank you to our federal, state and local law enforcement partners, led by the FBI and DEA in this case, for their ongoing commitment to investigating these issues in our communities and for their continued commitment to reducing violence, and firearm and drug crimes that plague our communities,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Their professionalism, determination, and expertise help protect the safety of our citizens and allow our federal prosecutors to keep violent criminals out of our communities for years.”
“We are truly safer today because there are fewer firearms in the hands of bad actors — fewer kilos of meth, heroin and cocaine for sale in our community and one less trafficking organization doing business in South Texas,” said Special Agent in Charge Aaron Tapp of the FBI's San Antonio Field Office. “The FBI remains committed working with our partners in whatever way we can to reduce violent crime in our communities, throughout the state of Texas – and across the country.”
“These arrests will put a dent into HPL’s drug trafficking activities that have been their main source of income,” said Special Agent in Charge Daniel Comeaux for the Drug Enforcement Administration Houston Division. Members rely on the money made outside to fund members behind bars and help HPL as an organization thrive at the devastating expense of our communities.”
The defendants arrested Tuesday are:
- Daniel Natividad aka “Danny Boy,” 50, of Hebronville
- Brian Zepeda aka “Get Down”, 39, of San Antonio
- Roberto Ibarra aka “Bobby,” 44, of Laredo
- Mike Rayas Carrillo aka “Gordo,” 37, of San Antonio
- Jesus Mendoza Jr. aka “Chivo,” 50, of San Antonio
- Gilberto Garcia aka “Gibo,” 42, of San Antonio
- Ramon Lozoya aka “Bulldog,” 41, of San Antonio
- Maximo Flores Jr., 44, of San Antonio
- Miguel Zamora Rosas aka “Eight Ball”, 39, of San Antonio
- Paul Garcia aka “Baby Paul”, 38, of San Antonio
- Abraham Pagan aka “Shank,” 44, of San Antonio
- Mark Anthony Avila, 43, of San Antonio
- Rudy Hugo Lopez, 34, of San Antonio
- Robert Davalos Alvarado aka “Pork Chop,” 41, of San Antonio
- Raymond Medina aka “Crime”, 35, of San Antonio
- Roger Hilburn, 33, of San Antonio
- Armando Perales aka “Pitbull,” 54, of San Antonio
- Ruben Rivera, 36, of San Antonio
- JR Perales, 31, of San Antonio
The following defendants were already in custody:
- Antonio Rios Jr. aka “Tone”, 33, of San Antonio
- Vidal Morales Jr. aka “Moe”, 49, of San Antonio
- Ronald Mendoza aka “Ronnie,” 41, of San Antonio
- Carlos Bernal aka “Guero,” 46, of San Antonio
- Adrian Calvillo aka “Token,” 40, of San Antonio
The FBI and DEA are leading the investigation with valuable assistance from the U.S. Marshals Service, IRS-Criminal Investigations, Customs and Border Protection, Texas National Guard Counter Narcotics Taskforce, Texas Department of Public Safety, Texas Department of Criminal Justice - Office of the Inspector General, Bexar County District Attorney’s Office, Bexar County Sheriff’s Office, San Antonio Police Department, Boerne Police Department, and the New Braunfels Police Department.
Assistant U.S. Attorneys Brian Nowinski and Fidel Esparza III are prosecuting the case.
This operation 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Wednesday 19 June 2024
Texas Doctor Sentenced to 7 Years in Pill Mill SchemeRead the Press Release
A Texas doctor who prescribed hydrocodone and other controlled substances to drug-seekers without legitimate medical purpose was sentenced to seven years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Dr. Leovares Mendez, 59, and his coconspirators, Dr. Cesar Pena-Rodriguez, 56, and recruiter Jorge Hernandez, 35, were indicted in February 2020. Dr Pena-Rodriguez and Mr. Hernandez pleaded guilty to trial, but Dr. Mendez elected to stand trial by jury. He was convicted in February 2024 of one count of conspiracy to distribute a controlled substances and six counts of unlawful distribution of controlled substances and sentenced Monday by Chief U.S. District Judge David Godbey.
“This defendant wasn’t practicing medicine – he was dealing drugs, plain and simple,” said U.S. Attorney Leigha Simonton. “The vast majority of doctors prescribe opioids to ease suffering. But when medical professionals abuse their DEA registrations in ways that cause suffering, the Justice Department will bring the full force of the law to bear.”
“We will continue to investigate and seek prosecution against medical professionals who break the law and simply put, deal drugs,” said DEA Dallas Special Agent in Charge Eduardo A. Chávez. “Not only did Dr. Mendez flagrantly dismiss his professional and ethical duties, evidence showed he attempted to conceal his criminal conduct by suggesting methods to thwart law enforcement intervention. He failed. DEA will continue to hold these rouge doctors responsible for their reckless and illegal behavior.”
According to evidence presented at trial, Dr. Mendez and Dr. Pena-Rodriguez, owners of Cumbre Medical Center, prescribed hydrocodone, alprazolam, and tramadol to “patients” including those brought to them by recruiter Jorge Hernandez.
They wrote the prescriptions for no legitimate medical purpose, without conducting medical exams, in return for cash payments of between $200 and $250.
In video and audio recordings introduced into evidence, undercover officers posing as patients requested medications by name and received prescriptions despite never having complained of pain. The undercover officers received the illegal prescriptions on multiple visits that spanned almost two years. On multiple occasions, Dr. Mendez coached the undercover officers about what to say if ever contacted law enforcement, but urged them to keep a low-profile so as not to attract the attention of any potential investigators.
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation. Assistant U.S. Attorneys Donna Max, Rachael Jones, Marty Basu, and Renee Hunter prosecuted the case, with help from appellate liaisons Gail Hayworth and Amy Mitchell.
South Carolina Man Is Sentenced to 13 Years for String of Armed RobberiesRead the Press Release
CHARLOTTE, N.C. – Daquan Hampton, 27, of Clover, South Carolina, was sentenced on Monday to 13 years in prison followed by three years of supervised release for a string of armed robberies in Charlotte, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed court documents and the sentencing hearing, on June 8, 2022, at approximately 11:22 p.m., a Waffle House employee was in the parking lot of the restaurant in Charlotte when two masked men approached him with guns drawn. The two men forced the employee inside the restaurant and demanded money from the cash registers. The employee replied that he was not able to open the safe without a key. At one point, one of the suspects, later identified as Hampton, used his firearm to pistol-whip the victim in the side of the head and took the victim’s fanny pack. Hampton and the other individual then exited the Waffle House through the back door.
Court records show that two days later, on June 10, 2022, a distraught Domino’s Pizza employee placed a call to 911 to report that two men had robbed the business at gunpoint, stealing cash. According to the victim, two masked men armed with black handguns had approached the victim, who was a delivery driver, while he was sitting in a car. The suspects forced the victims inside the restaurant at gunpoint. Upon entering, the suspects encountered another employee and held him at gunpoint as well while they demanded that the employees open the safe. One of the employees said it would take a while, and at that point Hampton started counting down from five, causing the employees to believe that they were going to be shot. Hampton then pistol‐whipped one of the employees in the back of the head. Hampton then fired three rounds at the safe, and shrapnel from the shots struck one of the employees in the hand, causing lacerations and bleeding. Hampton and his accomplice then forced both employees to the back of the business with guns pointed at their heads. Hampton and his accomplice fled with $125 in cash they had stolen from the business and $100 they took from an employee.
Approximately 18 hours after the Domino’s Pizza robbery, two masked men entered through the front door of a Papa John’s Pizza restaurant located in Charlotte. One of the men demanded money and ordered all six occupants to the back room where he made them get on the floor. The second man remained with the victims at gunpoint while the other had employees access the cash registers and safe. The employee could not open one of the registers, so one of the men pistol‐whipped him, causing a laceration to the victim’s head. The men took $880 from the store’s registers and fled out of the back door on foot.
On June 14, 2022, a CMPD officer conducted a traffic stop of Hampton’s vehicle for a traffic violation. Hampton was arrested after the officer recovered a firearm Hampton had attempted to discard during the traffic stop. Inside Hampton’s vehicle, law enforcement found marijuana, $1,417 in cash, and two loaded Glock 23 magazines.
On August 1, 2023, Hampton pleaded guilty to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery and aiding and abetting, and possession and discharging of a firearm in furtherance of a crime of violence.
Hampton is currently in federal custody and 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 FBI and CMPD for their investigation of the case.
Assistant U.S. Attorneys Alfredo De La Rosa and Regina Pack 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.
Kuna Man Sentenced to 9 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
BOISE – Justin Pedersen, 43, of Kuna, was sentenced to 9 years in federal prison for distribution of methamphetamine in the Treasure Valley, U.S. Attorney Josh Hurwit announced today.
According to court records, between November and December 2023, Pedersen distributed methamphetamine to another person on four separate occasions, totaling 309 grams of methamphetamine. Law enforcement also searched Pedersen’s residence as part of the investigation and located an additional pound of methamphetamine hidden in the wall of his residence.
Pedersen has a lengthy criminal history, which includes felony convictions for possession of a controlled substance, witness intimidation, and domestic battery with traumatic injury.
“Idaho enjoys strong partnerships between federal and local law enforcement and, together, we will continue to target and remove dangerous drug dealers from our communities,” said U.S. Attorney Hurwit. “If you deal drugs in Idaho, you will face the consequences.”
“I am grateful for the hard work of our federal partners, and specifically the Boise Police Department’s narcotics detectives who work hard every day to target for investigation, those who facilitate the importation and sale of dangerous and deadly illegal substances in our community,” said Boise Chief of Police Ron Winegar.
Senior U.S. District Judge B. Lynn Winmill also ordered Pedersen to serve three years of supervised release following his prison sentence. Pedersen pleaded guilty to the charge in March 2024.
U.S. Attorney Hurwit commended the work of Drug Enforcement Administration, the Boise Police Department, and the Boise Area Narcotics and Drug Interdiction Team, which led to the charges. Assistant U.S. Attorney Erin Blackadar prosecuted the case.
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Former Vice President and Branch Manager of Popular Bank Convicted of Fraud and Money Laundering ChargesRead the Press Release
Anuli Okeke, the former vice president and manager of a New York branch of Popular Bank was convicted yesterday afternoon by a federal jury in Brooklyn of all four counts of an indictment charging her with conspiracy to commit bank and wire fraud, wire fraud, bank fraud and money laundering conspiracy. The charges arose out of a scheme the defendant led to fraudulently obtain millions of dollars from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program during the height of the COVID-19 pandemic. The verdict followed a one-week trial before United States District Judge Frederic Block. When sentenced, Okeke faces up to 30 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York; Principal Deputy Assistant Attorney General Nicole M. Argentieri, Head of the Justice Department’s Criminal Division; Gail S. Ennis, Inspector General for the Social Security Administration (SSA-OIG); James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation New York Field Office (FBI); Patricia Tarasca, Special Agent-in-Charge, Federal Deposit Insurance Corporation Office of Inspector General, New York Regional Office (FDIC OIG); Brian Tucker, Special Agent-in-Charge, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, Eastern Region; and Amaleka McCall-Brathwaite, Special Agent-in-Charge, Office of the Inspector General of the U.S. Small Business Administration, Eastern Region Office (SBA-OIG), announced the verdict.
“While the global pandemic caused widespread economic and personal harm for so many, the defendant abused her trusted position at a bank to steal millions of dollars from programs designed to keep small businesses afloat and workers on payroll,” stated United States Attorney Peace. “This verdict reaffirms that our Office and law enforcement partners continue to bring to justice those who took advantage of a global crisis to commit crimes.”
“The jury’s verdict confirms that Anuli Okeke’s actions were not only criminal but also exploitive, damaging the integrity of programs put in place to help those suffering during a time of national crisis. My office will continue to work with our law enforcement partners to investigate those who misuse the identities of others for their selfish devices,” stated SSA Inspector General Ennis. “I commend our law enforcement partners for their outstanding work in this investigation and the U.S. Attorney’s Office for prosecuting this case and holding Ms. Okeke accountable for her crimes.”
“Today the defendant in this case was held accountable for abusing her position of trust as a banker to facilitate millions of dollars of fraudulent Paycheck Protection Program loans in exchange for kickbacks. The defendant used these stolen funds to enrich herself while small businesses were struggling during the pandemic,” stated FDIC-OIG Special Agent-in-Charge Tarasca. “The FDIC OIG remains committed to working with our law enforcement partners to protect the Nation’s financial system and hold accountable those individuals, like Ms. Okeke, who steal benefits designated to help those in need.”
“Anuli Okeke used her position to defraud the federal government of pandemic relief funds for her own personal gain and will now pay the price for her crimes,” stated Special Agent-in-Charge Tucker, Office of Inspector General for the Board of Governors of the Federal Reserve System. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to hold Ms. Okeke accountable.”
“The abuse of critical resources, intended to support small businesses during a time of unprecedented need, will not be tolerated,” stated SBA-OIG Special Agent-in-Charge McCall-Braithwaite. “Today’s verdict is a testament to our unwavering dedication to protecting the integrity of SBA’s programs. Our collaboration with the U.S. Attorney’s Office and our law enforcement partners is essential to ensuring that those who defraud the government are brought to justice and the taxpayer interest are protected.”
COVID-19 Relief Overview
The CARES Act was enacted to provide emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
Another source of relief provided by the CARES Act was the EIDL program, which provided low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters. Under the program, EIDL recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL (EIDL Advance). The amount of an EIDL Advance was determined based on the number of employees working for the applicant. The EIDL Advance did not have to be repaid.
Criminal Conduct
As proven at trial, Okeke, and her co-conspirators, both from within and outside the bank fabricated loan and tax documents and stole funds from the PPP and EIDL programs. Despite knowing that the PPP and EIDL applications contained false statements, and helping applicants make those false statements, Okeke signed each PPP loan application on behalf of the bank and submitted them for approval. Once the loan proceeds were disbursed to the borrowers, Okeke and her co-conspirators took kickbacks from the loan proceeds. The defendant also submitted her own fraudulent EIDL loan that contained false information. In addition, the defendant also took unauthorized commissions from legitimate PPP recipients.
As shown at trial, the defendant boasted about her earnings from the scheme. In handwritten notes found at her desk at work, the defendant wrote “I am making more than enough money,” “money comes to me easily,” “I am grateful I make $15k every month,” and “I have an extra $5000 every month.” Around the time of the scheme, the defendant’s bank accounts saw an influx of cash deposits.
Prior to the defendant’s conviction at trial, seven other co-conspirators pled guilty to wire and bank fraud conspiracy in connection with the defendant’s pandemic aid fraud conspiracy at the bank.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section as well as the Criminal Division’s Fraud Section. Assistant United States Attorneys Chand Edwards-Balfour and Adam Amir and Trial Attorney Jennifer Bilinkas are in charge of the prosecution, with assistance from Paralegal Specialists Samuel Ronchetti, Michaela Ausbrooks, and April Ward.
The Defendant:
ANULI OKEKE
Age: 52
Bronx, New YorkE.D.N.Y. Docket No. 22 CR 20 (FB)
Convicted Felon Is Sentenced to Prison for Illegal Possession of A FirearmRead the Press Release
CHARLOTTE, N.C. – On Monday, U.S. District Judge Robert J. Conrad Jr. sentenced Deddrick Ray Ervin, 35, of Charlotte, to 46 months in prison followed by two years of supervised release for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
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 with the court and court proceedings, on December 12, 2022, law enforcement encountered Ervin while patrolling an area in Charlotte that had received numerous complaints and calls for service relating to criminal activity. Law enforcement encountered Ervin and attempted to stop Ervin’s vehicle, but Ervin did not comply. According to court records, law enforcement later located Ervin hiding in a shed and he was arrested. Law enforcement located a backpack in the shed that contained fentanyl, methamphetamine, and marijuana, and recovered a firearm from the scene.
On August 8, 2023, Ervin pleaded guilty to possession of a firearm by a convicted felon. Ervin has a prior conviction in Georgia of felon in possession of a firearm, and a South Carolina state conviction for kidnapping, and he is prohibited from possessing a firearm.
Ervin 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 Alfredo De La Rosa 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.
Co-owners of Rhode Island Health Care Centers Charged with Health Care FraudRead the Press Release
PROVIDENCE, RI – The co-owners of a Warwick-based holistic health care center have been charged in federal court with allegedly defrauding federal and private health care insurance providers out of nearly $1.9 million dollars by submitting fraudulent claims for reimbursement for services that were not provided, announced United States Attorney Zachary A. Cunha.
Brandon Nowak, 32, of Providence, and Jason Simmons, 32, of Foster, co-owners of Alternative Integrated Medicine, LLC (doing business as AIM Health), made initial appearances on Tuesday before a U.S. Magistrate Judge on charges of health care fraud conspiracy, health care fraud, and filing false claims. The defendants were released on unsecured bond.
AIM Health is based in Warwick, with satellite offices located in Pawtucket, North Kingstown, and East Providence. Nowak serves as President and CEO, and. Simmons acts as the Vice President, Chief Financial Officer, and Compliance Office of the company.
It is alleged in charging documents that, at Nowak’s direction, and with Simmons’ knowledge, AIM Health electronically submitted for payment claims for services that did not occur or were not covered, including such treatment as infrared therapy, hot and cold therapy, therapeutic activity, and self-care/home management training.
Additionally, it is alleged that AIM Health submitted reimbursement claims for acupuncture and evaluation and management office visits when the actual services provided were massages given by licensed massage therapists (a non-covered service); that the company billed for high complexity office visits without providing that level of service; that AIM modified codes on reimbursement forms to avoid triggering automatic denials for payment for services that were either not provided nor medically necessary; and that AIM billed for covered and non-covered services rendered by uncredentialed providers under the provider numbers of credentialed providers.
As a result of this conduct, it is alleged that AIM Health fraudulently obtained $1,872,330 in payments from government and private insurers to which AIM was not entitled to receive.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorneys John P. McAdams and Rachna Vyas.
The matter was investigated by the U.S. Department of Health and Human Services-Office of Inspector General and the FBI, with assistance from the Defense Criminal Investigative Service and the Department of Veterans Affairs-Office of Inspector General.
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Charlotte Man Is Sentenced to 34+ Years for Armed RobberyRead the Press Release
CHARLOTTE, N.C. – Robert Lee Barringer, 49, of Charlotte, was sentenced on Monday to 412 months in prison followed by five years of supervised release, for the armed robbery of a Charlotte-area business, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, on July 26, 2021, at approximately 10:15 p.m., CMPD officers responded to the Fish House North, a business engaged in adult arcade games, in reference to a shooting and robbery. Officers encountered three victims on the scene, an employee, his wife, and a security guard who worked for the establishment. All three victims had suffered gunshot wounds and had sustained serious and extensive injuries. According to court documents, the victims stated that an individual, later identified as Barringer, had robbed the business. The victims indicated that Barringer had approached the business and as he was trying to force his way into the business, he began to shoot at the victims striking them. After Barringer entered the business, he shot his firearm several more times at the victims. Barringer then ordered one of the victims to hand over the keys to the register and forced another victim to open the register. Barringer stole $3,500 from the business and fled the scene.
After speaking with the victims, law enforcement determined that Barringer was a former employee who had been fired approximately a month prior. Crime scene investigators recovered 17 cartridge casings from the scene and observed multiple bullet holes within the business. On July 28, 2021, law enforcement located and arrested Barringer at a hotel in Charlotte.
On August 5, 2022, Barringer was found guilty to interference with commerce by robbery, and use, carry, and possession of a firearm during and in relation to a crime of violence. Barringer has a lengthy criminal history for federal and state convictions, including assault with a deadly weapon and possession of a firearm by a felon, and he is prohibited from possessing firearms or ammunition.
Barringer will remain in federal custody pending designation of a federal facility by the federal Bureau of Prisons.
In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorneys Christopher Hess and Timothy Sielaff 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.
Armed Fentanyl Trafficker Is Sentenced to 12+ Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Chad Clay, 31, of Charlotte, was sentenced on Monday to 151 months in prison for distribution of fentanyl and methamphetamine and possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
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 court documents and court proceedings, from July of 2022 through October of 2022, Clay sold fentanyl and methamphetamine on multiple occasions to an undercover officer (UC) in Charlotte. In addition to the drugs, Clay sold the UC several firearms, including a handgun that had been reported stolen and a rifle with two high capacity magazines. Court records show that Clay has multiple prior convictions, including conspiracy to commit common law robbery and assault with a deadly weapon inflicting serious injury. Due to these criminal convictions, Clay is prohibited from possessing firearms or ammunition.
On March 16, 2023, Clay pleaded guilty to three counts of distribution of fentanyl, one count of distribution of methamphetamine, and one count of possession of a firearm by a convicted felon. Clay will remain in the custody of the U.S. Marshals Service pending transportation to a designated federal Bureau of Prisons’ 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 Timothy Sielaff 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.
Tuesday 18 June 2024
Zuni Man Sentenced for Sexual Abuse Against ChildrenRead the Press Release
ALBUQUERQUE – A Zuni man was sentenced to 15 years in federal prison for sexually abusing two young girls on the Pueblo of Zuni reservation in New Mexico.
There is no parole in the federal system.
According to court documents, Rodney Waikaniwa, 51, an enrolled member of the Zuni Pueblo, sexually assaulted two minor victims, Jane Doe 1 and Jane Doe 2. Jane Doe 1 was assaulted between September 21, 2000, and September 20, 2001. Jane Doe 2 was assaulted between January 1, 2013, and December 31, 2015. He committed the crimes at shared residences with the victims within the Pueblo of Zuni. Jane Doe 1 was approximately 8 years old at the time of the abuse and Jane Doe 2 was approximately 6 years old at the time of the abuse.
Upon his release from prison, Waikaniwa will be subject to a 15-year term of supervised release and must register as a sex offender.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Mark A. Probasco is prosecuting the case.
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Woman going to prison for her role in narcotics conspiracy operating in Jamestown, NY, areaRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Kylie Reeves, 31, of Jamestown, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, 50 grams or more of methamphetamine, was sentenced to serve 108 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joshua A. Violanti, who handled the case, stated that Reeves was part of a drug trafficking ring led by co-defendant Rocco Beardsley. Reeves distributed methamphetamine and heroin for Beardsley, who controlled the supply and set the prices. Reeves also allowed Beardsley to utilize her residence in Jamestown and she communicated with others on his behalf. In March 2020, Beardsley was arrested on New York State warrants following a traffic stop. Law enforcement officers recovered large quantities of methamphetamine, fentanyl, cocaine, crack cocaine, hydrocodone, and other controlled substances from Beardsley’s vehicle. Investigator’s then searched Beardsley’s residence, recovering methamphetamine, a glass plate with white powder material, digital scale, and $185.00 in United States currency. Reeves and her three minor children also lived at the residence. Following Beardsley’s arrest, Reeves conducted drug trafficking activities on his behalf, communicating with co-conspirators, associates, suppliers, and customers in order to continue receiving proceeds. Beardsley was previously convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the Jamestown Police Department and the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division.
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