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Thursday 13 June 2024
Interpol Washington and Panama Enhance Border Security Through Project TerminusRead the Press Release
INTERPOL Washington’s Project TERMINUS, in collaboration with the National Central Bureau (NCB) Panama, has significantly enhanced Panama's border security by integrating INTERPOL data into the newly established Border Information and Analysis Targeting Unit (BIATU).
“Through international collaboration, we have significantly increased our Panamanian partners’ ability to detect and disrupt threats, increasing the security in both of our nations,” said INTERPOL Washington Acting Director Jeffrey Grimming. “By better enabling the BIATU to provide timely, relevant, and actionable intelligence to border security leaders, we have collectively made significant strides toward building a safer region and safer world for us all.”
The Panama Ministry of Security recently established BIATU to provide critical intelligence at both strategic and operational levels to law enforcement. This U.S. Embassy-vetted unit operates with the support of a U.S. Customs and Border Protection advisor, who collaborates closely with BIATU personnel to address security vulnerabilities and threats.
However, during an initial site survey by PROJECT Terminus at the BIATU fusion center, it was determined that the center lacked direct access to INTERPOL databases managed by NCB Panama, causing significant gaps and delays in information exchange.
With funding from the U.S. Department of State, Project TERMINUS facilitated the direct connection of BIATU to critical INTERPOL data through NCB Panama, significantly enhancing operational efficiency. This integration not only strengthens Panama's overall security but also reinforces its relations with partner nations.
Project TERMINUS provides expert technical assistance to countries across the world seeking to integrate access to INTERPOL databases into their national border security information-sharing systems. This assistance helps nations screen against the illicit international travel of transnational criminals and terrorists.
Houstonian admits to filing over $500,000 in fraudulent disaster relief loansRead the Press Release
HOUSTON – A 26-year-old woman has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
From March 2020 until June 2021, Khalia Douglas conspired with others to submit false and fraudulent applications to the Federal Emergency Management Agency (FEMA), Small Business Administration (SBA), the U.S. government and a bank for financial assistance.
As part of her plea, Douglas admitting to using her Instagram account “GoGettaKaee” to post multiple stories advertising her involvement in filing fraudulent SBA COVID-19 Economic Injury Disaster Loan (EIDL) applications. Such posts include “SBA is back open. $350 for method. Yes im doing applications $100 upfront & $2k when your money hit. You’ll need a real bank account.”
Douglas accepted payment for her services via CashApp where her clients would make payments to her and send a screenshot of the completed payment as proof.
She also submitted false EIDL applications for herself and false Paycheck Protection Program (PPP) applications for another.
Further investigation revealed Douglas filed eight FEMA disaster assistance applications related to Hurricane Laura.
Additionally, Douglas committed several other fraudulent acts like filing false unemployment benefits in Kansas, using another person’s name to rent her apartment and using another person’s bank account to deposit counterfeit checks.
Authorities discovered her phone and computer contained a multitude of various documents and discussions of fraud in text messages, emails relating to fraudulent applications, false tax documents, images of counterfeit government identification documents and more.
Due to her actions, the EIDL, PPP and the bank lost a total of $351,007 with an attempted loss amount of $514,415.
Douglas received approximately $23,775 for her services.
U.S. District Judge Alfred H. Bennett has set sentencing for Sept. 26. At that time, Douglas faces up five years in federal prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending sentencing.
The Department of Homeland Security-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
Houston felon gets max for illegal gun possessionRead the Press Release
HOUSTON – A 22-year-old local man has been ordered to federal prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Avery Frank Bass Jr. pleaded guilty March 22.
U.S. District Judge David Hittner has now ordered Bass to serve the statutory maximum of 15 years in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted Bass was a true danger to the community.
Law enforcement arrested Bass as part of the Houston Violent Crime Initiative announced in September 2023.
“Removing violent individuals who use firearms from our communities is one of the top priorities of my office,” said Hamdani. “The Houston Violent Crime Initiative is an innovative program aimed at reducing violent crime by employing federal laws to prosecute gang members and associates in the southwest and southeast areas of Houston. The result in this case demonstrates that we are making progress in our fight to reduce violent and firearms crimes in the Southern District of Texas.”
Local law enforcement was executing an arrest warrant for Bass for aggravated robbery in August 2023. At that time, they discovered a loaded American Tactical AR pistol and a loaded 9mm Glock 17 on the driver’s side floorboard where Bass had been sitting. A review of his criminal history showed that he had three prior felony convictions for robbery, all of which involved the use of a firearm.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and the Houston Police Department conducted the investigation.
Assistant U.S. Attorney Kelly Zenon-Matos prosecuted the case along with Trial Attorneys Ralph Paradiso and Shelia Lafferty of the Justice Department’s Violent Crime and Racketeering Section.
Georgian Sentenced to Life Imprisonment for Armed Fentanyl Trafficking in MaconRead the Press Release
MACON, Ga. – A confirmed member of a local criminal street gang was sentenced to life in prison this week for his role in a prolific armed drug organization in Middle Georgia dealing kilograms of fentanyl and other deadly street drugs often mixed with the lethal synthetic opioid.
Kenneth Emanuel Pertillo, Jr. aka “Fat Boy,” 40, of Gray, Georgia, and formerly of Macon, West Virginia and North Carolina, was sentenced to serve life in prison to be followed by ten years of supervised release by U.S. District Judge Ashley Royal on June 12. Pertillo was found guilty at trial on Oct. 2, 2023, of one count of conspiracy to possess with intent to distribute fentanyl, methamphetamine and heroin and one count of possession with intent to distribute fentanyl, methamphetamine, heroin, cocaine and cocaine base. His co-defendant at trial, Johnifer Dernard Barnwell, 37, of Macon, was found guilty of one count of conspiracy to possess with intent to distribute fentanyl, methamphetamine and heroin; one count of possession with intent to distribute fentanyl, methamphetamine, heroin, cocaine and cocaine base; and one count of possession of a firearm in furtherance of a drug trafficking crime. Barnwell faces a maximum of life in prison and his sentencing date will be determined by the Court. There is no parole in the federal system.
“This armed criminal organization was pushing large amounts of fentanyl and other lethal combinations of street drugs mixed with fentanyl into our neighborhoods, putting many people at risk of death and degrading the safety of all,” said U.S. Attorney Peter D. Leary. “Working alongside law enforcement at every level, our office will continue to leverage every available investigative and prosecutorial tool to reduce violent crime and keep communities safe.”
“Gangs wreak havoc on local residents by engaging in violence and peddling dangerous drugs that devastate communities and families," said Senior Supervisory Special Agent Robert Gibbs of FBI Macon. "As this lengthy sentence demonstrates, the FBI and our partners will do whatever is necessary to dismantle violent criminal enterprises and keep our communities safe."
According to court documents and evidence presented at trial, FBI began investigating a large-scale fentanyl, heroin and methamphetamine distribution organization in Macon and the Central Georgia region in March 2020. Federal agents identified Pertillo and Barnwell as distributors and part of the MOB (Money Over Bitches) sect of the Mafia criminal street gang. To advance the investigation, agents conducted multiple controlled purchases from various defendants in the case and obtained orders authorizing wiretaps on five phones used by members of the organization, including Barnwell. Controlled purchases occurred at trap houses on Mimosa Drive and Culver Street, and at a local nightclub, among other locations. Illegal drugs being sold as “heroin” often tested as a fentanyl mix.
On July 20, 2021, FBI executed search warrants at eleven Macon addresses identified as trap houses or distribution locations on Mimosa Drive, Culver Street, Forest Hill Road, Riverside Park Boulevard, Lucerne Drive, Shurling Drive and Kingsview Drive. Agents found approximately eight kilograms of fentanyl, methamphetamine, heroin, cocaine and cocaine base plus 20 firearms, hundreds of rounds of ammunition, large-capacity firearm magazines and more than $50,000 cash. At one location—an apartment identified as a drug “lab” at 3990 Riverside Park Blvd. where Barnwell and Pertillo would mix fentanyl and heroin in a kitchen blender before selling it—agents found approximately 2.5 kilograms of methamphetamine, nearly one kilogram of pure fentanyl, more than one kilogram of a pure fentanyl chemical analogue and more than two kilograms of blends containing fentanyl, heroin and fentanyl analogue mix. Agents also found nearly half a kilogram of pure heroin, more than 280 grams of cocaine base, 80 grams of cocaine and 64 grams of ketamine. Agents seized several firearms, a fully loaded AR14 drum magazine, ammunition and $5,778 cash at that location.
In all, the organization is responsible for distributing or possessing with the intent to distribute more than three kilograms of fentanyl or fentanyl analogue, 2.5 kilograms of methamphetamine, nearly two kilograms of heroin and significant quantities of cocaine base and cocaine.
The following co-defendants have been sentenced:
Troy Truelle Williams, Sr., aka “Ty, 55, of Macon, was sentenced to serve 300 months in prison to be followed by five years of supervised release on March 13, after he previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl and heroin;
De’Kerio Ja’mel Coleman aka “Dee,” 36, of Macon, was sentenced to serve 220 months in prison to be followed by three years of supervised release on Feb. 13, after he previously pleaded guilty to distribution of fentanyl;
Christopher Leon Coleman aka “Slim,” 41, of Macon, was sentenced to serve 188 months in prison to be followed by five years of supervised release on Feb. 13, after he previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine;
Gregory Bernard Jolly aka “Stank,” 38, of Macon, was sentenced to serve 188 months in prison to be followed by three years of supervised release on May 15, after he previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine;
Joshua Antoine Green aka “J” or “Jay,” 33, of Macon, was sentenced to serve 160 months in prison to be followed by three years of supervised release on Jan. 24, after he previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine;
Romello Campbell, 22, of Macon, was sentenced to serve 120 months in prison to be followed by three years of supervised release on May 9, 2023, after he previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine;
Diamond Monique Thomas, 28, of Macon, was sentenced to serve 96 months in prison to be followed by three years of supervised release on July 11, 2023, after she previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine;
Jameliha Shalonda Coleman aka “Juicy,” 27, of Macon, was sentenced to serve 90 months in prison to be followed by three years of supervised release on June 9, 2023, after she previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine;
Recardo Keon Ray aka “Keon,” 39, of Macon, was sentenced to serve 70 months in prison to be followed by three years of supervised release on Feb. 13, after he previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine;
Johnnie B. Lowe, 68, of Macon, was sentenced to serve 63 months in prison to be followed by three years of supervised release on March 13, after he previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl;
Michael Clifford White, 41, of Macon, was sentenced to serve 63 months in prison to be followed by three years of supervised release on March 13, after he previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl;
Tiara Thomas aka “Red,” 23, of Macon, was sentenced to serve 60 months in prison to be followed by three years of supervised release on Jan. 24, after she previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl; and
Rochelle Oliver aka “Chelle,” 40, of Macon, was sentenced to three years of probation on Feb. 13, after she previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the FBI, with assistance from numerous agencies who participated in executing search warrants and conducting arrests, including the DEA, the GBI, the Bibb County Sheriff’s Office, the Butts County Sheriff’s Office, the Bleckley County Sheriff’s Office, the Houston County Sheriff’s Office, the Georgia Department of Corrections, the Perry Police Department and the Athens-Clarke County Police Department.
Assistant U.S. Attorney Joy Odom is prosecuting the case for the Government.
Founder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution and Health Care Fraud SchemeRead the Press Release
SAN FRANCISCO – The founder and CEO of a California-based digital health company and its clinical president were arrested today in connection with their alleged participation in a scheme to distribute Adderall over the internet, conspire to commit health care fraud in connection with the submission of false and fraudulent claims for reimbursement for Adderall and other stimulants, and obstruct justice.
Ruthia He, the founder and CEO of Done Global Inc., was arrested in Los Angeles and will make her initial appearance at 1:30 p.m. PDT/4:30 p.m. EDT in Los Angeles. David Brody, the clinical president of Done Health P.C. (collectively, Done), was arrested in San Rafael, California, and will make his initial appearance at 10:30 a.m. PDT/1:30 p.m. EDT in San Francisco, California.
“As alleged, these defendants exploited the COVID-19 pandemic to develop and carry out a $100 million scheme to defraud taxpayers and provide easy access to Adderall and other stimulants for no legitimate medical purpose,” said Attorney General Merrick B. Garland. “Those seeking to profit from addiction by illegally distributing controlled substances over the internet should know that they cannot hide their crimes and that the Justice Department will hold them accountable.”
“The individuals charged today allegedly disregarded the first rule of medical care—do no harm—in order to maximize profits, and there is no place for such fraud in our healthcare system,” said Secretary of Homeland Security Alejandro N. Mayorkas. “The indictment levied against these individuals sends a clear message: the Department of Homeland Security, our Homeland Security Investigations personnel, and our partners across the federal government will hold accountable those providers and prescribers who prey on their patients.”
“The internet is a place of remarkable innovation, allowing its users to make innumerable types of transactions with greater ease. Such transactions, however, must always be legal,” said Deputy Chief of the Criminal Division Matthew Yelovich for the Northern District of California. “The indictment alleges that He and Brody used an internet-based infrastructure to illegally distribute drugs and to conspire to commit health care fraud. This office will always prosecute health care fraud and illegal drug distribution on the internet as vigorously as we do traditional frauds and illegal drug distribution.”
According to court documents, He and Brody allegedly conspired with others to provide easy access to Adderall and other stimulants in exchange for payment of a monthly subscription fee. The indictment alleges that the conspiracy’s purpose was for the defendants to unlawfully enrich themselves by, among other things, by increasing monthly subscription revenue and thus increasing the value of the company. Done allegedly arranged for the prescription of over 40 million pills of Adderall and other stimulants, and obtained over $100 million in revenue.
“As alleged in the indictment, the defendants provided easy access to Adderall and other stimulants by exploiting telemedicine and spending millions on deceptive advertisements on social media. They generated over $100 million in revenue by arranging for the prescription of over 40 million pills,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “These charges are the Justice Department’s first criminal drug distribution prosecutions related to telemedicine prescribing through a digital health company. As these charges make clear, corporate executives who put profit over the health and safety of patients—including by using technological innovation—will be held to account.”
He and Brody allegedly obtained subscribers by targeting drug seekers and spending tens of millions of dollars on deceptive advertisements on social media networks. They also allegedly intentionally structured the Done platform to facilitate access to Adderall and other stimulants, including by limiting the information available to Done prescribers, instructing Done prescribers to prescribe Adderall and other stimulants even if the Done member did not qualify, and mandating that initial encounters would be under 30 minutes. To maximize profits, He allegedly put in a place an “auto-refill” function that allowed Done subscribers to elect to have a message requesting a refill be auto-generated every month. He wrote that Done sought to “use the comp structure to dis-encourage follow-up” medical care by refusing to pay Done prescribers for any medical visits, telemedicine consultation, or time spent caring for patients after an initial consultation, and instead paying solely based on the number of patients who received prescriptions.
“The defendants in this case operated Done Global Inc., an online telehealth website that prescribed Adderall and other highly addictive medications to patients who bought a monthly subscription. The defendants allegedly preyed on Americans and put profits over patients by exploiting telemedicine rules that facilitated access to medications during the unprecedented COVID-19 public health emergency,” said DEA Administrator Anne Milgram. “Instead of properly addressing medical needs, the defendants allegedly made millions of dollars by pushing addictive medications. In many cases, Done Global prescribed ADHD medications when they were not medically necessary. In 2022 the FDA issued a notice of shortages in prescription stimulants, including Adderall. Any diversion of Adderall and other prescription stimulant pills to persons who have no medical need only exacerbates this shortage and hurts any American with a legitimate medical need for these drugs. The DEA will continue to hold accountable anyone, including company executives, that uses telehealth platforms to put profit above patient safety.”
“As more health care needs are met through telemedicine, we will not tolerate fraud schemes that seek to recklessly exploit digital technologies,” said Honorable Christi A. Grimm of the Department of Health and Human Services Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to protect the enrollees of federal health care programs by ensuring that requirements for the appropriate, legal prescribing of stimulants and other drugs are always met, and those who choose to violate them are held accountable.”
He and Brody allegedly persisted in the conspiracy even after being made aware that material was posted on online social networks about how to use Done to obtain easy access to Adderall and other stimulants, and that Done members had overdosed and died. They also allegedly concealed and disguised the conspiracy by making fraudulent representations to media outlets to forestall government investigations and action and induce third parties to continue doing business with Done.
“Healthcare fraud is not a victimless crime. It levies a tremendous cost on our nation’s healthcare systems and economy,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “Today’s announcement should serve as a reminder that it is only a matter of time before anyone engaging in fraudulent activity is caught and brought to justice.”
“Instead of prioritizing the health of their customers, He and Brody’s telemedicine company allegedly prioritized profits—more than $100 million worth—by fraudulently prescribing medications like Adderall and other stimulants,” said Chief Guy Ficco of IRS Criminal Investigation. “This led customers to addiction, abuse, and overdoses, which the company tried to conceal by making false representations to the media in order to deter oversight by government agencies.”
He, Brody, and others also conspired to defraud pharmacies and Medicare, Medicaid, and the commercial insurers to cause the pharmacies to dispense Adderall and other stimulants to Done members in violation of their corresponding responsibility; Medicare, Medicaid, and the commercial insurers to pay for the cost of these drugs; and Done members to continue to pay subscription fees to Done. He and others allegedly made false and fraudulent representations about Done’s prescription policies and practices to induce the pharmacies to fill Done’s prescriptions. As a result, Medicare, Medicaid, and the commercial insurers paid in excess of approximately $14 million.
The indictment also alleges that He and Brody conspired to obstruct justice after a grand jury subpoena was issued to another telehealth company and in anticipation of a subpoena being issued to Done, including by deleting documents and communications, using encrypted messaging platforms instead of company email, and ultimately failing to produce documents in response to a subpoena issued to Done by a federal grand jury.
If convicted, He and Brody each face a maximum penalty of 20 years in prison on the conspiracy to distribute controlled substances and distribution of controlled substances counts.
The DEA, HHS-OIG, HSI, and IRS Criminal Investigation are investigating the case.
Assistant U.S. Attorneys Kristina Green, Katherine Lloyd-Lovett, and Lloyd Farnham for the Northern District of California and Principal Assistant Chief Jacob Foster and Trial Attorney Raymond Beckering III of the DOJ’s Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Any patient of Done or medical professional who has been involved with the allegedly illegal conduct should call to report this conduct to the DEA hotline at 646-466-5159.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
dkt_1_he_brody_indictment.pdfFounder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution and Health Care Fraud SchemeRead the Press Release
The founder and CEO of a California-based digital health company and its clinical president were arrested today in connection with their alleged participation in a scheme to distribute Adderall over the internet, conspire to commit health care fraud in connection with the submission of false and fraudulent claims for reimbursement for Adderall and other stimulants, and obstruct justice.
Ruthia He, the founder and CEO of Done Global Inc., was arrested in Los Angeles and will make her initial appearance at 1:30 p.m. PDT/4:30 p.m. EDT in Los Angeles. David Brody, the clinical president of Done Health P.C. (collectively, Done), was arrested in San Rafael, California, and will make his initial appearance at 10:30 a.m. PDT/1:30 p.m. EDT in San Francisco, California.
“As alleged, these defendants exploited the COVID-19 pandemic to develop and carry out a $100 million scheme to defraud taxpayers and provide easy access to Adderall and other stimulants for no legitimate medical purpose,” said Attorney General Merrick B. Garland. “Those seeking to profit from addiction by illegally distributing controlled substances over the internet should know that they cannot hide their crimes and that the Justice Department will hold them accountable.”
“The individuals charged today allegedly disregarded the first rule of medical care—do no harm—in order to maximize profits, and there is no place for such fraud in our healthcare system,” said Secretary of Homeland Security Alejandro N. Mayorkas. “The indictment levied against these individuals sends a clear message: the Department of Homeland Security, our Homeland Security Investigations personnel, and our partners across the federal government will hold accountable those providers and prescribers who prey on their patients.”
“As alleged in the indictment, the defendants provided easy access to Adderall and other stimulants by exploiting telemedicine and spending millions on deceptive advertisements on social media. They generated over $100 million in revenue by arranging for the prescription of over 40 million pills,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “These charges are the Justice Department’s first criminal drug distribution prosecutions related to telemedicine prescribing through a digital health company. As these charges make clear, corporate executives who put profit over the health and safety of patients—including by using technological innovation—will be held to account.”
According to court documents, He and Brody allegedly conspired with others to provide easy access to Adderall and other stimulants in exchange for payment of a monthly subscription fee. The indictment alleges that the conspiracy’s purpose was for the defendants to unlawfully enrich themselves by, among other things, by increasing monthly subscription revenue and thus increasing the value of the company. Done allegedly arranged for the prescription of over 40 million pills of Adderall and other stimulants, and obtained over $100 million in revenue.
“The internet is a place of remarkable innovation, allowing its users to make innumerable types of transactions with greater ease. Such transactions, however, must always be legal,” said Deputy Chief of the Criminal Division Matthew Yelovich for the Northern District of California. “The indictment alleges that He and Brody used an internet-based infrastructure to illegally distribute drug sales and to conspire to commit health care fraud. This office will always prosecute health care fraud and illegal drug distribution on the internet as vigorously as we do traditional frauds and illegal drug distribution.”
He and Brody allegedly obtained subscribers by targeting drug seekers and spending tens of millions of dollars on deceptive advertisements on social media networks. They also allegedly intentionally structured the Done platform to facilitate access to Adderall and other stimulants, including by limiting the information available to Done prescribers, instructing Done prescribers to prescribe Adderall and other stimulants even if the Done member did not qualify, and mandating that initial encounters would be under 30 minutes. To maximize profits, He allegedly put in a place an “auto-refill” function that allowed Done subscribers to elect to have a message requesting a refill be auto-generated every month. He wrote that Done sought to “use the comp structure to dis-encourage follow-up” medical care by refusing to pay Done prescribers for any medical visits, telemedicine consultation, or time spent caring for patients after an initial consultation, and instead paying solely based on the number of patients who received prescriptions.
“The defendants in this case operated Done Global Inc., an online telehealth website that prescribed Adderall and other highly addictive medications to patients who bought a monthly subscription. The defendants allegedly preyed on Americans and put profits over patients by exploiting telemedicine rules that facilitated access to medications during the unprecedented COVID-19 public health emergency,” said DEA Administrator Anne Milgram. “Instead of properly addressing medical needs, the defendants allegedly made millions of dollars by pushing addictive medications. In many cases, Done Global prescribed ADHD medications when they were not medically necessary. In 2022 the FDA issued a notice of shortages in prescription stimulants, including Adderall. Any diversion of Adderall and other prescription stimulant pills to persons who have no medical need only exacerbates this shortage and hurts any American with a legitimate medical need for these drugs. The DEA will continue to hold accountable anyone, including company executives, that uses telehealth platforms to put profit above patient safety.”
“As more health care needs are met through telemedicine, we will not tolerate fraud schemes that seek to recklessly exploit digital technologies,” said Honorable Christi A. Grimm of the Department of Health and Human Services Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to protect the enrollees of federal health care programs by ensuring that requirements for the appropriate, legal prescribing of stimulants and other drugs are always met, and those who choose to violate them are held accountable.”
He and Brody allegedly persisted in the conspiracy even after being made aware that material was posted on online social networks about how to use Done to obtain easy access to Adderall and other stimulants, and that Done members had overdosed and died. They also allegedly concealed and disguised the conspiracy by making fraudulent representations to media outlets to forestall government investigations and action and induce third parties to continue doing business with Done.
“Healthcare fraud is not a victimless crime. It levies a tremendous cost on our nation’s healthcare systems and economy,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “Today’s announcement should serve as a reminder that it is only a matter of time before anyone engaging in fraudulent activity is caught and brought to justice.”
“Instead of prioritizing the health of their customers, He and Brody’s telemedicine company allegedly prioritized profits—more than $100 million worth—by fraudulently prescribing medications like Adderall and other stimulants,” said Chief Guy Ficco of IRS Criminal Investigation. “This led customers to addiction, abuse, and overdoses, which the company tried to conceal by making false representations to the media in order to deter oversight by government agencies.”
He, Brody, and others also conspired to defraud pharmacies and Medicare, Medicaid, and the commercial insurers to cause the pharmacies to dispense Adderall and other stimulants to Done members in violation of their corresponding responsibility; Medicare, Medicaid, and the commercial insurers to pay for the cost of these drugs; and Done members to continue to pay subscription fees to Done. He and others allegedly made false and fraudulent representations about Done’s prescription policies and practices to induce the pharmacies to fill Done’s prescriptions. As a result, Medicare, Medicaid, and the commercial insurers paid in excess of approximately $14 million.
The indictment also alleges that He and Brody conspired to obstruct justice after a grand jury subpoena was issued to another telehealth company and in anticipation of a subpoena being issued to Done, including by deleting documents and communications, using encrypted messaging platforms instead of company email, and ultimately failing to produce documents in response to a subpoena issued to Done by a federal grand jury.
If convicted, He and Brody each face a maximum penalty of 20 years in prison on the conspiracy to distribute controlled substances and distribution of controlled substances counts.
The DEA, HHS-OIG, HSI, and IRS Criminal Investigation are investigating the case.
Principal Assistant Chief Jacob Foster and Trial Attorney Raymond Beckering III of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Kristina Green, Katherine Lloyd-Lovett, and Lloyd Farnham for the Northern District of California are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Any patient of Done or medical professional who has been involved with the allegedly illegal conduct should call to report this conduct to the DEA hotline at 646-466-5159.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fort Worth Man Charged with Threatening Federal Agent: ‘Guns Will Come Out’Read the Press Release
A Fort Worth man has been charged with threatening an FBI agent involved in a high-profile investigation, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Timothy Muller, 43, was charged via criminal complaint on Thursday with interstate threatening communications and influencing, impeding, or retaliating against a federal official. He was arrested outside his home on Thursday morning without incident.
According to the complaint, Mr. Muller allegedly placed a call to an FBI special agent at 5:03 p.m. on June 11.
The agent was known to have been involved in an investigation into a laptop belonging to H.B. Shortly before Mr. Muller allegedly placed his call to the agent, media outlets reported that H.B. had been convicted following a trial related to a 2018 firearm purchase.
According to the complaint, Mr. Muller said, “hey,” and the agent disconnected the call. Mr. Muller immediately called back and allegedly left a one-minute and five-second message threatening the agent and his family:
“You can run, but you can’t [expletive] hide,” Mr. Muller allegedly said. “ You covered up child pornography. You covered up [H.B.] raping his own [expletive] niece.”
“So here’s how it’s gonna go,” Mr. Muller allegedly continued. “[T.]’s gonna win the re-election, and then we’re gonna [expletive] go through the FBI and just start throwing you [expletive]s into jail. Or, you can steal another election, and then the guns will come out, and we’ll hunt you [expletive]s down and slaughter you like the traitorous dogs you are in your own [expletive] homes. In your own [expletive] beds. The last thing you’ll ever hear are the horrified shrieks of your widow and orphans. And then you know what we’re going to do? … We’re going to slaughter your whole [expletive] family.”
Mr. Muller then allegedly sent the agent several texts, writing, “How’s the family? Safe?” and “Did you [expletive]s really think you were going to disenfranchise 75 million Americans and not die? Lol.”
A criminal complaint is merely an allegation of criminal conduct, not evidence. Mr. Muller is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 10 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. The U.S. Attorney’s Office for the Northern District of Texas is prosecuting the case.
Former University City High School Teacher Pleads Guilty to Attempted Enticement of a MinorRead the Press Release
NEWS RELEASE SUMMARY – June 13, 2024
SAN DIEGO – Sean Stevenson, a former high school science teacher at University City High School, pleaded guilty in federal court today, admitting that when he was still a teacher, he sought commercial sex with a 16-year-old girl.
Stevenson was arrested in October 2023 when he arrived for what he thought would be a sexual rendezvous with the underage girl. At the time he was unaware that he was communicating online with an undercover agent.
Stevenson’s alleged illicit activity was discovered during another sex trafficking investigation. According to his plea agreement, Stevenson used a voice-over-internet protocol (VOIP) line to negotiate by text message for commercial sex with a woman who identified herself as “Kash.” Stevenson offered Kash a fee to find a female under the age of 18 for Stevenson. In pertinent part, Stevenson made these statements to Kash via text: “I don’t suppose you know in[sic] younger girls I could pay u a premium for?”; “I pay u a finders fee and I pay her”; “The younger the better”; and “Just keep it in mind if you come across any high school age girls.” When Kash suggested an 18-year-old girl, Stevenson replied: “Not young enough.”
When Kash was arrested as part of the sex trafficking investigation, an undercover officer continued the online conversation with Stevenson. Believing he was still speaking with Kash, when the undercover officer offered a 16-year-old cousin for commercial sex with Stevenson, he replied: “Oh ... yes!” Stevenson continued to exchange messages with the undercover officer, negotiating $150 for a “bbbj” (oral copulation without a condom); $100 for manual genital stimulation; a “car date” (a commercial sex encounter that occurs inside a vehicle). The exchange continued, with Stevenson stating, “Ok. Well I’m interested in her for sure!” He asked for a “sexy pic,” negotiated a $140 fee and arranged to meet up.
On October 24, 2023, at approximately 7 a.m., Stevenson arrived at the pre-arranged meet up location. He drove to a parking lot where he had a full unobstructed view of the meeting location. He then drove laps around a nearby apartment complex where he expected to meet the 16-year-old. Stevenson was stopped by law enforcement officials and placed under arrest. During the arrest, $140 was located in the driver’s side door storage area of Stevenson’s Mazda Miata.
“Instead of a protector, this teacher became a predator,” said U.S. Attorney Tara McGrath. “These despicable acts betray the trust of students, parents, and the entire community. Yet through swift justice in this case we have continued to protect children from being exploited, trafficked, and abused.”
“Mr. Stevenson was a trusted member of the community who preyed upon our most vulnerable youth,” said Christopher Davis, acting special agent in charge for HSI San Diego. “HSI is fully committed to working with our law enforcement partners to rescue victims and aggressively investigate allegations of human trafficking and sexual exploitation of children. We encourage anyone who has information related to human trafficking and sexual exploitation of children to report it to law enforcement immediately.”
Stevenson is scheduled to be sentenced on September 5, 2024, at 9 a.m. before U.S. District Judge Anthony J. Battaglia.
This case is being prosecuted by Assistant U.S. Attorneys Derek Ko and Andrew Sherwood.
Anyone with information about this case is urged to contact San Diego County Crime Stoppers (888-580-8477) and the National Human Trafficking Hotline (888-373-7888).
DEFENDANTS Case Number
Sean Stevenson Age: 58 San Diego, CA
SUMMARY OF CHARGES
Attempted Enticement of a Minor– Title 18, U.S.C., Section 2422(b)
Maximum penalty: Life in prison, 10-year mandatory minimum
INVESTIGATING AGENCIES
Homeland Security Investigations
San Diego Human Trafficking Task Force
Former UC Davis and Davis Club Water Polo Coach Pleads Guilty to Distribution of Visual Depictions of Minors Engaged in Sexually Explicit ConductRead the Press Release
SACRAMENTO, Calif. — Daniel Joseph Noble, 28, residing in San Diego County, pleaded guilty today to knowing distribution of visual depictions of minors engaged in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced.
According to court records, between March 10, 2022, and April 12, 2022, Noble participated in a Kik private group chat dedicated to sharing videos of child pornography. Noble shared over 20 video files with the Kik group. Some of those files that Noble shared showed prepubescent minors being sexually abused by adults. At the time he engaged in this conduct, Noble was working as the assistant water polo coach for UC Davis men’s team and the associated youth team.
This case is the product of an investigation by the Federal Bureau of Investigation in Sacramento and in Jacksonville, Florida, and the Sacramento Valley Hi-Tech Crimes Task Force. Assistant U.S. Attorney Christina McCall is prosecuting the case.
Following his guilty plea, Noble was remanded into custody. He is scheduled to be sentenced on Sept. 12, 2024, by U.S. District Judge Daniel J. Calabretta. Noble faces a maximum statutory penalty of 20 years in prison, with a mandatory minimum of five years in prison, a $250,000 fine, and up to a lifetime of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Former Nurse Sentenced for Adulteration of FentanylRead the Press Release
BOSTON – A former nurse was sentenced yesterday in federal court in Boston for adulteration of fentanyl at a local hospital.
Caroline Sheehan, 39, of Lowell, Mass., was sentenced by U.S. District Court Judge Angel Kelley to three years of probation and ordered not to pursue employment that requires a registered nurse license or permits access to prescription narcotics. In February 2024, Sheehan pleaded guilty to one count of adulteration of a prescription drug with intent to defraud and mislead.
In March 2021, while working at a Massachusetts hospital, Sheehan removed a bag of intravenous fentanyl solution from an automated dispensing machine. Sheehan used a syringe to remove fentanyl from the IV bag, injected saline into the bag to replace the fentanyl she had removed and returned the bag to its drawer in the machine. A hospital employee saw a blood stain on the IV bag and removed the IV bag, which laboratory testing confirmed contained less than the declared concentration of fentanyl, from the machine before any of the adulterated fentanyl solution was administered to a patient. Sheehan later admitted that she had withdrawn fentanyl from the IV bag and replaced it with saline to avoid getting caught. Sheehan later admitted that she had been stealing prescription drugs from the hospital for months, replacing the siphoned drugs with saline solution, to feed her substance abuse addiction.
Acting United States Attorney Joshua S. Levy; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Robert Coviello, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General; and Robert H. Goldstein, MD, PhD, Commissioner of the Massachusetts Department of Public Health made the announcement. Assistant U.S. Attorney Kelly Begg Lawrence, Chief of the Health Care Fraud Unit prosecuted the case.
Former Manchester Man Pleads Guilty to the Unlawful Possession of Firearms and AmmunitionRead the Press Release
CONCORD – A former Manchester man pleaded guilty in federal court to being a felon in possession of firearms and ammunition, U.S. Attorney Jane E. Young announces.
James Aubuchont, 52, pleaded guilty to the illegal possession of two firearms and over 2,000 rounds of ammunition. U.S. District Court Judge Joseph N. Laplante scheduled sentencing for September 19, 2024. Aubuchont is already serving a sentence in New Hampshire state prison on other offenses.
In July 2023, a state warrant was issued for Aubuchont’s arrest in connection with an aggravated felonious sexual assault. Law enforcement arrested him on July 12, 2023, near the Flat Mountain Pond Shelter in the White Mountains. During a recorded jailhouse call, Aubuchont asked another person to retrieve his two “fishing rods” from the campsite, including one that “we got from VJ, remember the one you bought?” Three days later, law enforcement recovered a rifle and pistol from Aubuchont’s campsite, along with over 2,000 rounds of ammunition. The rifle had been purchased from a firearms dealer operated by an individual with the first and middle initials V.J.
The charging statute provides a sentence of no greater than 15 years in prison, 3 years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Bureau of Alcohol, Tobacco, and Firearms led the investigation. The Carroll County Sheriff’s Department and U.S. Forest Service provided valuable assistance. Assistant U.S. Attorneys Alexander S. Chen and Tiffany A. Scanlon are prosecuting the case.
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Foreign national convicted for participation in business email compromise schemeRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Nigerian national today for operating a business email compromise scheme targeting victims in the United States and elsewhere.
According to court documents and evidence presented at trial, Ebuka Raphael Umeti, 35, and his co-conspirators sent victim businesses phishing emails, which were made to appear as though they originated from trusted senders, such as a bank or a vendor. These phishing attacks allowed the co-conspirators to gain unauthorized access to victim computer systems and email accounts, including by infecting victim computers with malicious software or “malware” that provided the co-conspirators with remote access. The co-conspirators then exploited that access to obtain sensitive information, which they used to deceive individuals at victim companies into executing wire transfers to accounts specified by the co-conspirators. As a result of this scheme, the co-conspirators caused or attempted to cause more than $1.5 million of loss to victims.
“Umeti participated in a sophisticated computer hacking and business email compromise scheme that targeted numerous businesses in the United States,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Although Umeti and his co-conspirators carried out their scheme from outside the United States, they were not beyond the reach of the Justice Department. Today’s conviction should serve as yet another reminder that, if you target American victims, the Criminal Division is committed to tracking you down and holding you responsible for your criminal conduct, no matter where you are.”
“The reach of cyber criminals is extensive, but so too is the reach of the law,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Umeti relied on hidden malware, deception, and an ocean of distance to steal from American businesses and avoid prosecution. Despite those obstacles and obfuscations, a dedicated team of investigators and prosecutors showed outstanding resolve in bringing him to justice.”
“Today's guilty verdict is a victory in our fight against cybercrime and should serve as a warning to cybercriminals who believe they can operate with impunity,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “The FBI remains committed to relentlessly pursuing those engaged in malicious cyber activities and ensuring they are held accountable.”
The jury convicted Umeti of conspiracy to commit wire fraud, three counts of wire fraud, conspiracy to cause intentional damage to a protected computer, and intentional damage to a protected computer. He is scheduled to be sentenced on Aug. 27 and faces a maximum penalty of 27 years in prison on the wire fraud conspiracy count, five years in prison on the conspiracy to cause intentional damage to a protected computer count, 20 years on each wire fraud count, and 10 years on the intentional damage to a protected computer count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Co-defendant Franklin Ifeanyichukwu Okwonna, 34, pleaded guilty on May 20 to his role in the scheme and is scheduled to be sentenced on Sept. 3.
The FBI Washington Field Office investigated the case.
The Justice Department’s Office of International Affairs worked with the FBI’s Legal Attaché Office in Nairobi, the U.S. Marshals Service, and Kenya’s Office of the Director of Public Prosecutions and Directorate of Criminal Investigation to secure the extradition of Umeti and his co-defendant.
Assistant U.S. Attorney Laura D. Withers for the Eastern District of Virginia and Senior Counsel Thomas S. Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and are prosecuting the case. CCIPS Senior Counsel Aarash Haghighat assisted in the investigation and indictment of the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-123.
Foreign National Convicted for Participation in Business Email Compromise SchemeRead the Press Release
A federal jury in Alexandria, Virginia, convicted a Nigerian national today for operating a business email compromise scheme targeting victims in the United States and elsewhere.
According to court documents and evidence presented at trial, Ebuka Raphael Umeti, 35, and his co-conspirators sent victim businesses phishing emails, which were made to appear as though they originated from trusted senders, such as a bank or a vendor. These phishing attacks allowed the co-conspirators to gain unauthorized access to victim computer systems and email accounts, including by infecting victim computers with malicious software or “malware” that provided the co-conspirators with remote access. The co-conspirators then exploited that access to obtain sensitive information, which they used to deceive individuals at victim companies into executing wire transfers to accounts specified by the co-conspirators. As a result of this scheme, the co-conspirators caused or attempted to cause more than $1.5 million of loss to victims.
“Umeti participated in a sophisticated computer hacking and business email compromise scheme that targeted numerous businesses in the United States,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Although Umeti and his co-conspirators carried out their scheme from outside the United States, they were not beyond the reach of the Justice Department. Today’s conviction should serve as yet another reminder that, if you target American victims, the Criminal Division is committed to tracking you down and holding you responsible for your criminal conduct, no matter where you are.”
“The reach of cyber criminals is extensive, but so too is the reach of the law,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Umeti relied on hidden malware, deception, and an ocean of distance to steal from American businesses and avoid prosecution. Despite those obstacles and obfuscations, a dedicated team of investigators and prosecutors showed outstanding resolve in bringing him to justice.”
“Today’s guilty verdict is a victory in our fight against cybercrime and should serve as a warning to cybercriminals who believe they can operate with impunity,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “The FBI remains committed to relentlessly pursuing those engaged in malicious cyber activities and ensuring they are held accountable.”
The jury convicted Umeti of conspiracy to commit wire fraud, three counts of wire fraud, conspiracy to cause intentional damage to a protected computer, and intentional damage to a protected computer. He is scheduled to be sentenced on Aug. 27 and faces a maximum penalty of 27 years in prison on the wire fraud conspiracy count, five years in prison on the conspiracy to cause intentional damage to a protected computer count, 20 years on each wire fraud count, and 10 years on the intentional damage to a protected computer count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Co-defendant Franklin Ifeanyichukwu Okwonna, 34, pleaded guilty on May 20 to his role in the scheme and is scheduled to be sentenced on Sept. 3.
The FBI Washington Field Office investigated the case.
The Justice Department’s Office of International Affairs worked with the FBI’s Legal Attaché Office in Nairobi, the U.S. Marshals Service, and Kenya’s Office of the Director of Public Prosecutions and Directorate of Criminal Investigation to secure the extradition of Umeti and his co-defendant.
Senior Counsel Thomas S. Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Laura D. Withers for the Eastern District of Virginia are prosecuting the case. CCIPS Senior Counsel Aarash Haghighat assisted in the investigation and indictment of the case.
Five sisters indicted for defrauding retailer’s return programRead the Press Release
Seattle – Five sisters who reside in the Seattle area will appear today at 1:45 PM on a grand jury indictment charging them with conspiracy and mail fraud for their scheme to defraud a major active clothing retailer, announced U.S. Attorney Tessa M. Gorman. The five allegedly exploited a “Fast-Track Returns” policy whereby they scanned a return label at a post office to get a gift card with the refund amount via email, but never actually mailed the merchandise back to the retailer. Instead, they traveled to brick-and-mortar stores across the country and returned the merchandise for a second, duplicate refund. The indictment alleges that through this scheme defendants defrauded the retailer of more than $1 million.
“Refund fraud schemes such as this one simply drives up the costs for retailers and result in higher prices for the rest of us,” said U.S. Attorney Gorman. “We will work with our law enforcement partners to shut these down and hold the perpetrators accountable.”
“This investigation underscores HSI’s commitment to combatting organized retail theft, which poses a direct threat to the integrity and vitality of our economy,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Together, with the support of our communities and law enforcement partners, we will seek to dismantle these criminal enterprises and ensure that every individual and business can thrive in a secure environment."
The five are charged with conspiracy to commit mail fraud and 24 counts of mail fraud. The defendants are:
Dunia Almezal, 29, of Marysville, Washington
Layla Almansuri, 27, of Stanwood, Washington
Shahad Almansuri, 33, of Marysville, Washington
Raghad Almansuri, 32, Marysville, Washington
Nejoom Almansuri, 25, Marysville, Washington
According to the indictment, the defendants ordered multiple shipments per week from the victim company. Then, often before the items were delivered, the defendants requested a return label for the items. Once that label arrived via email, the defendants took the label to a self-service counter at the post office and scanned it, obtaining a return credit via email within two hours. However, the defendants never mailed the merchandise back. Instead, they traveled to retail stores in Washington and across the country returning merchandise for a second refund. That second refund was in the form of money to their debit cards. They returned goods in Arizona, California, Colorado, Florida, Michigan, Nevada, and Oregon, as well as Washington. The defendants would allegedly use the emailed gift card credit to purchase more goods, thus continuing the fraud.
The defendants would often travel together to make the returns and would transfer money between each other as a “cut” of the proceeds.
After becoming aware of the scheme, the victim retailer changed their return policies.
Conspiracy to commit mail fraud and mail fraud are punishable by up to 20 years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service (USPIS).
The case is being prosecuted by Assistant United States Attorney Rachel Yemini.
almansuri_indictment.pdfFive Men Indicted for Methamphetamine and Fentanyl Trafficking in Merced County as Part of “Operation Red Rooster”Read the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against five men, Fernando Arellano, 36, of Planada; Isaiah Serena, 40, of Merced; Jason Mott, 49, of Merced; David Gonzales, 45, of Merced; and Christopher Baca-Arias, 18, a native of Honduras; charging them with crimes related to a Merced drug trafficking operation, U.S. Attorney Phillip A. Talbert announced.
Arellano, Serena, and Mott are charged with conspiracy to distribute methamphetamine. Serena and Mott are additionally charged with distribution of methamphetamine. Serena, Mott, Gonzales, and Baca-Arias are charged with conspiracy to distribute fentanyl, and Serena, Gonzales, and Baca-Arias are additionally charged with distribution of fentanyl. Serena is also charged with possession of a firearm by a felon.
According to court documents, Serena and Mott operated a drug trafficking operation centered on a self-storage business in Merced. Arellano supplied methamphetamine for the operation, while Baca-Arias supplied fentanyl. Gonzales worked for Serena and Mott. During the course of the investigation, conspirators distributed more than 40 pounds of methamphetamine and 2 pounds of fentanyl.
This case is a product of “Operation Red Rooster,” a long-term investigation into gang violence and drug trafficking by Homeland Security Investigations, the Merced-Area Gang and Narcotics Enforcement Team (MAGNET), the California Department of Justice, and the Federal Bureau of Investigation, with assistance from the California Highway Patrol, the Merced County Sheriff’s Office, the Merced Police Department, the Livingstone Police Department, and other agencies. Assistant U.S. Attorney Robert L. Veneman-Hughes is prosecuting the case.
If convicted, Arellano, Serena, Mott, and Gonzales face a statutory maximum of life in prison and a $10 million fine. Baca-Arias faces a statutory maximum of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, Justice.gov/PSN.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF) program. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Final Member of Benton Harbor Machinegun and Drug Trafficking Investigation SentencedRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Earl Austin IV, 22, of Benton Harbor, Michigan was sentenced to 108 months in prison for his part in trafficking methamphetamine, guns, and machinegun switches. Austin is the last of 17 defendants, from three criminal indictments to be sentenced from this investigation.
“The families of Benton Harbor deserve to carry out their lives without the fear of violence.” said U.S. Attorney Mark Totten. “Safety is a civil right. These cases represent our commitment to making that right a reality. While we can never prosecute our way out of the gun violence epidemic, accountability for those few individuals who are driving violence is critical.”
On December 15, 2022, the U.S. Attorney’s Office for the Western District of Michigan announced charges against 10 defendants, including Earl Austin IV. Seven additional defendants were later charged in three different criminal cases.
In this case, investigators seized over one pound of methamphetamine, five firearms, and three machinegun switches over the course of six months. Undercover officers bought methamphetamine, fentanyl, and oxycodone from Austin on 17 different occasions. On two occasions in August and September of 2022, Austin sold machinegun switches to undercover officers. Austin then sold an assault rifle and two pistols on three separate occasions from November to December 2022. Police eventually executed a search warrant at Austin’s residence and found more methamphetamine and two guns. Austin is a felon and prohibited from possessing firearms. Austin proceeded to trial, where a jury found him guilty on all 15 counts of the indictment.
Austin’s codefendants pleaded guilty. Robert Griffin was sentenced to 70 months in prison for selling methamphetamine. Rhonda Acklin was sentenced to 41 months in prison for selling methamphetamine. Evorion Anderson was sentenced to 70 months in prison for selling methamphetamine and machinegun switches.
Ten other defendants were charged with firearm violations, mostly related to machinegun switches. In that case, Torez Burnett imported machine gun conversion devices, or “switches,” from China and distributed them to members of his street gang, My Brother’s Keeper (MBK), and others in Benton Harbor and Grand Rapids.
Finally, in a third case, three defendants were charged with being felons in possession of firearms. Following a jury trial in August 2023, a jury convicted each man of being a felon in possession of a firearm. At sentencing, Chief Judge Hala Jarbou found that Mark Curtis possessed his gun in connection with first degree premeditated murder.
“Families in Benton Harbor can take comfort in knowing the individuals responsible for distributing harmful drugs throughout the community and possessing dangerous weapons were held accountable for their crimes,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “It is through the tremendous partnerships fostered among our local, state, and federal partners that we are able to find and apprehend criminals who endanger public safety.”
Serious crimes have serious consequences. Illegal machinegun conversion devices are a threat to our community and public safety. They are not toys and they have no place in our communities,” said ATF Detroit Field Division Special Agent in Charge James Deir. “Mr. Austin chose to illegally convert firearms while conspiring to distribute methamphetamines onto our streets. Ultimately, Mr. Austin and his co-cohorts will have considerable time in prison to reflect on their poor decisions.”
This case was investigated by the FBI, ATF, DEA, Michigan State Police, Benton Harbor Department of Public Safety, Berrien County Sheriff’s Office, Benton Charter Township Police Department, and the Pokagon Band Tribal Police Department. Assistant U.S. Attorneys Patrick J. Castle and Jacob S. Metoxen handled the prosecution.
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Felon Sentenced for Second-Degree MurderRead the Press Release
TULSA, Okla. – Today, U.S. District Judge Sara E. Hill sentenced Rahmon Lawrence Macon, Jr., 31, of Tulsa, to 480 months imprisonment, followed by 5 years of supervised release. Macon was sentenced after pleading guilty to Second Degree Murder in Indian Country.
“Macon was reckless and careless with his actions that led to the death of an innocent bystander, Aliza Crook,”
said U.S. Attorney Clint J. Johnson. “I hope this conviction will bring some type of justice for Aliza’s loved ones who courageously spoke in court today.”According to court documents, in November 2022, video surveillance showed Macon pulling into a gas station and exiting his car to argue with a man. The man got in his car, where 19-year-old Aliza Crook was seated, and drove off. Macon fired a handgun several times at the car, striking Aliza in the head and killing her. Several eyewitnesses identified Macon as the shooter. After his arrest, evidence revealed Macon Jr. attempted to dissuade witnesses from cooperating with the FBI.
Because of his criminal convictions, Macon served multiple terms of imprisonment in the Oklahoma Department of Corrections and was eventually released in May 2022. Approximately six months after his release from imprisonment, Macon shot and killed Aliza Crook.
Macon is a citizen of the Cherokee Nation, and he will remain in custody pending transfer to the U.S. Bureau of Prisons.
After the death of Aliza Crook, her family saved the lives of two people by generously donating her heart, kidneys, and liver.
The FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Tulsa Police Department investigated the case. Assistant U.S. Attorneys Niko Boulieris and Adam Bailey 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. For more information about PSN, please visit Justice.gov/PSN.
Fast Food Manager Pleads Guilty to Wire Fraud After Embezzling More Than $140,000 from EmployerRead the Press Release
ST. PAUL, Minn. – A Woodbury man has pleaded guilty to embezzling more than $140,000 from his employer, announced United States Attorney Andrew M. Luger.
According to court documents, Timothy Michael Hill, Jr., 36, was employed by Company A to manage a fast-food franchise restaurant at the Minneapolis St. Paul International Airport. In his position as manager, Hill was responsible for collecting and making daily cash deposits into a safe deposit box.
According to court documents, between September 2022 and October 2023, Hill collected the daily cash receipts from the restaurant and instead of depositing it into the safe deposit box, pocketed some or all of the cash. Hill attempted to conceal his embezzlement by using future cash receipts to cover his theft, creating a false impression that the cash deposits were delayed rather than stolen. To further conceal his embezzlement, Hill sent regular emails to Company A’s accounting personnel representing that he was belatedly depositing cash from earlier dates, when, in fact, he was using cash collected during the ensuing time period to conceal his embezzlement.
According to court documents, Hill spent the stolen cash on jewelry, online sports betting, and the adult website Only Fans, among other things. He also transferred thousands of dollars through CashApp to various individuals, including several female colleagues in exchange for personal photos and videos.
In total, Hill knowingly and willfully embezzled approximately $144,000 from Company A over a period of 13 months.
Hill pleaded guilty today in U.S. District Court before Judge Paul A. Magnuson to one count of wire fraud. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI and the Minneapolis Airport Police Department.
Assistant U.S. Attorney Matthew C. Murphy is prosecuting the case.
El Departamento De Justicia Encuentra Vulneraciones De Los Derechos Civiles Por Parte De La Policía De Phoenix Y La Ciudad De PhoenixRead the Press Release
Después de una investigación exhaustiva, el Departamento de Justicia anunció hoy que la Policía de Phoenix (PhxPD) y la Ciudad de Phoenix (Ciudad) están incurriendo en un patrón o una práctica de conducta que vulnera la Constitución y las leyes federales.
En concreto, el Departamento halló que:
- La PhxPD utiliza fuerza excesiva, incluida la fuerza letal no justificada y otros tipos de fuerza.
- La PhxPD y la Ciudad detienen, citan y aprehenden ilegalmente a las personas sin techo y se deshacen ilegalmente de sus pertenencias. Esta es la primera vez que el Departamento ha encontrado un patrón o una práctica de conducta que se centra en los derechos de las personas sin techo.
- La PhxPD discrimina en contra de las personas negras, hispanas y amerindias cuando hacen cumplir las leyes.
- La PhxPD vulnera los derechos de las personas que participan en formas de discurso y expresión protegidas.
- La PhxPD y la Ciudad discriminan en contra de las personas con discapacidades de salud del comportamiento al despachar llamadas de asistencia y responder a las personas en crisis.
Por otra parte, el Departamento describió preocupaciones graves sobre cómo la PhxPD trata a los niños. Por último, el Departamento identificó deficiencias en políticas, capacitación, supervisión y rendición de cuentas que contribuyen a la conducta ilícita de la PhxPD y de la Ciudad.
“El Departamento de Justicia ha concluido que hay motivos razonables para creer que la ciudad de Phoenix y la PhxPD incurren en un patrón o una práctica de conducta que priva a sus residentes y visitantes, incluidas las personas negras, hispanas y amerindias, de sus derechos bajo la Constitución y las leyes federales”, dijo el Fiscal General Merrick B. Garland. “La publicación del informe de hallazgos de hoy es un paso importante hacia la rendición de cuentas y la transparencia, y estamos comprometidos a trabajar con la ciudad de Phoenix y la PhxPD en una reforma significativa que proteja los derechos civiles y la seguridad de los residentes de Phoenix y fortalezca la confianza entre la policía y la comunidad”.
“Los residentes de Phoenix merecen nada menos que una vigilancia policial justa, constitucional y no discriminatoria”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Nuestra investigación exhaustiva reveló prácticas ilegales e inconstitucionales en la aplicación de la ley por parte de la PhxPD que impactan a algunos de los residentes más vulnerables de Phoenix, incluidas las personas negras, hispanas, y amerindias, las personas sin techo y aquellas que se encuentran en medio de una crisis de salud del comportamiento. La policía también utilizó fuerza excesiva, retrasó la asistencia médica necesaria e infringió los derechos civiles de aquellos involucrados en conductas protegidas por la Primera Enmienda, incluidas manifestaciones y protestas. Nuestros hallazgos proporcionan un plan y una hoja de ruta que pueden ayudar a transformar el departamento de policía, restaurar la confianza de la comunidad y fortalecer los esfuerzos de seguridad pública en una de las ciudades más grandes de los Estados Unidos. Nos comprometemos a trabajar en colaboración con el departamento de policía, los funcionarios de la ciudad y el público para instituir reformas y remediar las vulneraciones que identificamos en nuestra investigación”.
El Departamento inició esta investigación el 5 de agosto del 2021. Abogados y personal de carrera en la Sección de Litigios Especiales de la División de Derechos Civiles llevaron a cabo la investigación. El equipo realizó numerosos recorridos in situ; entrevistó a agentes, supervisores y personal encargado de mando de la PhxPD; habló con funcionarios y empleados de la Ciudad; acompañó en los recorridos a equipos de respuesta ante crisis de salud del comportamiento, escuadrones especializados que interactuaban con frecuencia con personas sin techo y agentes en los recorridos; revisó miles de documentos; y revisó cientos de horas de grabaciones de cámaras corporales.
Como sucede en todos los casos, la División se reunió regularmente a lo largo de la investigación con funcionarios de la Ciudad y de la PhxPD para proveer comentarios sobre las observaciones del Departamento y sus expertos policiales y sobre las reformas para abordar los problemas observados. Múltiples peritos en la materia aconsejaron a la División durante la investigación. En conjunto, estos expertos tienen décadas de experiencia en la evaluación de tácticas y capacitación policiales, investigaciones internas, la toma y el despacho de llamadas al 911, y los análisis estadísticos. Los abogados y el personal del Departamento también se reunieron con miembros de la comunidad, defensores, proveedores de servicios y otras partes interesadas por la zona de Phoenix.
De acuerdo con su práctica estándar en investigaciones de otras ciudades, el Departamento proporcionó a la Ciudad y PhxPD una sesión informativa detallada sobre sus hallazgos el martes y propuso que las partes acordaran en principio a negociar de forma rápida y de buena fe para llegar a un acuerdo integral ejecutable por un tribunal con supervisión independiente.
El Departamento llevó a cabo esta investigación de conformidad con la Sección 12601 del Título 34 del Código de los EE. UU. (Sección 12601), que prohíbe a los agentes del orden público participar en un patrón o una práctica de conducta que prive a las personas de los derechos protegidos por la Constitución o las leyes federales, la ley de Calles Seguras de 1968, el Título VI de la Ley de Derechos Civiles de 1964 y el Título II de la ley de Estadounidenses con Discapacidades.
El Departamento llevará a cabo acciones directas con los miembros de la comunidad de Phoenix para explicar los hallazgos y para obtener información sobre posibles recursos para abordar los hallazgos del Departamento. Las personas también pueden enviar sus recomendaciones por correo electrónico a [email protected] o por teléfono al 866-432-0335.
Esta es una de las 11 investigaciones de agencias de aplicación de la ley iniciadas por el Departamento de Justicia en virtud de la Sección 12601 desde abril del 2021. El año pasado, el Departamento emitió informes de hallazgos bajo la Sección 12601 en dos de esas investigaciones: la Policía de la Zona Metropolitana de Louisville (Kentucky) y la Policía de Minneapolis. Las otras ocho investigaciones cubren la Policía de Lexington (Mississippi); la Policía Estatal de Louisiana; la Policía de Memphis (Tennessee); la Policía de Mount Vernon (New York); la División de Víctimas Especiales de la Policía de New York City; la Policía de Oklahoma City; la Policía de Worcester (Massachusetts); y la Policía de Trenton (New Jersey).
Hay más información sobre la División de Derechos Civiles en su sitio web en Civil Rights Division | División de Derechos Civiles (justice.gov).
Para información específica sobre el trabajo de reformación policíaca de la División de Derechos Civiles: www.justice.gov/crt/file/922421/download.
El Departamento de Justicia celebrará una reunión comunitaria virtual en 6 p.m. PT / 9 p.m. ET. Se anima a los miembros del público a que asistan para obtener más información sobre los hallazgos. Únase a la reunión a través de este enlace: www.zoomgov.com/webinar/register/WN_wc5Fgkk9TaueUHSmV0J_Eg
Edenton Man Sentenced to More Than 8 Years for Child PornographyRead the Press Release
RALEIGH, N.C. – An Edenton man was sentenced today to 102 months in prison followed by 120 months of supervised release for receiving child pornography after his devices were found to contain over 3,000 images of child pornography, including images and videos of infants, toddlers and very young children. The defendant was also ordered to pay $107,000 in restitution to 16 known victims.
“The United States Attorney’s Office and Homeland Security Investigations have built a wonderful relationship with Chowan Sheriff’s Office and the Edenton Police Department which has allowed our community and citizens to feel safe in our bedroom community and for that I say thank you,” said Edenton Police Chief Henry King.
According to court documents and other information presented in court, Matterson Xavier Rusyn, 61, was investigated by the Chowan County Sheriff’s Office after Microsoft reported one of its users uploaded an image of child pornography into a reverse Bing image search to find similar images. Microsoft made the report to the National Center for Missing and Exploited Children who forwarded the report to the Chowan County Sheriff’s Office who learned the IP address used to upload the images were connected to Rusyn.
A search warrant was executed at Rusyn’s residence. Rusyn was present for the search warrant and admitted he was collecting child pornography images and videos. Multiple digital devices including cell phone, computers and hard drives were seized. Those devices were forensically analyzed and found to contain over 3,000 images of child pornography. Rusyn’s collection of images and videos included infants, toddlers, and very young children as well as images depicting sadistic and masochistic conduct.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge James C. Dever III presided over the sentencing. The Chowan County Sheriff’s Office and the Department of Homeland Security investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:23-CR-16-D.
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Dominican Republic Resident Pleads Guilty to Conspiring to Traffic CocaineRead the Press Release
PITTSBURGH, Pa. – A citizen of the Dominican Republic pleaded guilty in federal court to a drug trafficking charge, United States Attorney Eric G. Olshan announced today.
Adelin Hernandez Amparo, 31, pleaded guilty before United States District Judge William S. Stickman IV to one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.
In connection with the guilty plea, the Court was advised that federal, state, and local law enforcement operating under the High Intensity Drug Trafficking Areas (HIDTA) program in Beaver County conducted a joint investigation into the Kijana Lowe drug trafficking organization. On November 8, 2021, law enforcement conducted a surveillance operation at the Greyhound Bus Station in downtown Pittsburgh, and observed Hernandez Amparo and another individual exit the bus station with two suitcases and get into a vehicle driven by a co-defendant. Mobile surveillance followed the vehicle to a motel in Coraopolis.
Surveillance observed Lowe enter the motel room occupied by Hernandez Amparo and the two co-defendants, and then back outside, accept one of the suitcases transported from the bus station. Law enforcement detained the individuals and executed search warrants on the suitcase, the motel room, and Lowe’s vehicle. The suitcase contained nearly 10 kilograms of cocaine, a Schedule II controlled substance. Lowe’s vehicle contained over $280,000 that was to be used to purchase the seized cocaine. A search of cell phones revealed text messages from Lowe in which Lowe complained about having to pay three people for the drug re-supply, referring to Hernandez Amparo and his associates.
Judge Stickman scheduled sentencing for October 16, 2024. The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court remanded Hernandez Amparo to the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan J. McKenna and Special Assistant United States Attorney Kara Cotter are prosecuting this case on behalf of the government.
The Pennsylvania Office of Attorney General and Drug Enforcement Administration conducted the investigation that led to the prosecution of Hernandez Amparo.
DOJ and Evergreen Treatment Services settle allegations regarding double billing of government health programsRead the Press Release
Seattle – The U.S. Department of Justice today resolved double billing allegations against Evergreen Treatment Services, announced U.S. Attorney Tessa M. Gorman. The settlement is on behalf of the U.S. Department of Health and Human Services (HHS) which runs the Medicare program and other government health plans. Evergreen Treatment Services will pay the government $1,453,982 to resolve the matter.
“I want to commend the data analysis work done by our Affirmative Civil Enforcement unit and HHS-OIG to identify the double billing,” said U.S. Attorney Gorman. “We want to be sure taxpayer dollars are safeguarded so they can legitimately go to critical services such as drug treatment.”
“Providers that participate in Medicare are obligated to bill for services honestly and lawfully. Submitting false claims diverts funding from essential health services, including critical drug treatment, which puts both patient well-being and federal health care programs at risk,” said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement shows that HHS-OIG will continue to work with our law enforcement partners to detect and deter actions that threaten the Medicare program and its enrollees.”
According to the settlement agreement, in January 2020, Medicare began paying for drug treatment services including medically assisted treatment. Evergreen, a non-profit based in Seattle, submitted claims in 2020 for the period January 1, 2020, to July 2020 and those claims were paid. The claims are paid weekly, and services are bundled: medications, counseling, therapy, toxicology testing, intake activities and periodic assessments are billed under one billing code.
Evergreen then knowingly resubmitted bills that had already been paid. This conduct continued from January 8, 2021, to February 26, 2021. Evergreen was improperly reimbursed for these services. These double billings totaled $726,991.
Of the $1,453,982 settlement, $726,991 is restitution and the rest is a penalty under the False Claims Act.
This matter was handled by Assistant United States Attorney Matt Waldrop and Ryan Hardy, investigative analyst with the U.S. Attorney’s Office. HHS-OIG and the DEA Diversion Control Division provided significant investigative assistance.
Convicted Felon Sentenced to over 38 Years in Federal Prison for Two Armed Carjackings and Firearms OffensesRead the Press Release
Memphis, TN – A federal judge has sentenced a Memphis man to 466 months – more than 38 years – in federal prison for committing two carjackings and firearms offenses in the Memphis area. United States Attorney Kevin G. Ritz announced the sentence today.
According to information presented in court, Glenn Miller, 29, committed two back-to-back carjackings in Memphis on June 8, 2022. First, Miller approached a man at a gas station on Chelsea Avenue and forced the victim to get into his vehicle at gunpoint. Miller continued to hold a gun on the victim and made him drive around until Miller eventually ordered the victim out of the vehicle. Miller drove away in the victim’s car.
Minutes later, Miller approached another man sitting in his car on Maplewood Avenue; this was around the corner from the gas station where Miller carjacked the first victim. Completely unprovoked, Miller fired two rounds at the second victim, striking the victim in the face. The second victim was severely injured but survived. Miller drove off in the second victim’s car and was apprehended later that day by the Memphis Police Department. Miller was in possession of three firearms when he was arrested.
United States Attorney Ritz stated: “Armed carjackings tear at the fabric of our society. This defendant will spend more than 38 years in federal prison for committing multiple armed carjackings. Our office will continue to seek justice for victims of violent crime by holding offenders accountable for their actions.”
“ATF is on the frontline in the fight against violent crime and will continue to work side-by-side with our partners. Carjacking investigations are a priority. Therefore, ATF will continue to deploy traditional investigative techniques overlayed with cutting edge technology to deter these types of violent activities,” said Special Agent in Charge Marcus S. Watson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
On November 17, 2023, Miller pled guilty to carjacking the second victim and discharging a firearm during that carjacking, as well as three counts of being a felon in possession of a firearm. Miller proceeded to trial by a jury on the remaining charges related to the carjacking of the first victim and the brandishing of a firearm during that carjacking. On February 27, 2024, a federal jury convicted Miller of the counts related to the first carjacking after less than an hour of deliberation.
On June 12, 2024, United States District Court Judge Sheryl H. Lipman sentenced Miller to 466 months in federal prison to be followed by three years’ supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Memphis Police Department’s Violent Crimes Unit.
United States Attorney Kevin Ritz thanked Assistant U.S. Attorneys Regina Thompson and Greg Wagner, who prosecuted this case, as well as the law enforcement partners who investigated the case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Columbus Man Sentenced to 8 Years for Illegal Possession of Guns at the Links at Oxford ApartmentsRead the Press Release
OXFORD, Miss. – A Columbus man was sentenced today to eight years in prison for possessing firearms as a prior convicted felon.
According to court records, Tyson Jamal Hairston, 34, previously pled guilty to possessing two pistols after having been convicted of a felony offense. Officers located one firearm while serving Hairston with a state warrant for kidnapping at the Links at Oxford Apartments. During a search of Hairston’s Links apartment, officers located a second firearm and narcotics.
At a sentencing hearing on Thursday, U.S. District Court Judge Michael P. Mills sentenced Hairston to 96 months imprisonment followed by a three-year term of supervised release.
“Citizens have every right to expect that individuals who commit violent crimes and who use guns to commit those crimes will be removed from the streets and sentenced to prison,” remarked U.S. Attorney Clay Joyner. “This office will continue to work with all of our local, state and federal law enforcement partners to aggressively prosecute those individuals who choose to illegally possess and use guns in our communities.”
“Getting guns out of the hands of criminals is an essential element of the fight against violent crime and securing our neighborhoods,” said ATF New Orleans Field Division Special Agent in Charge Joshua Jackson. “The sentence imposed today sends a message to the community that convicted felons illegally possessing firearms will be held accountable as we work to keep our neighborhoods safe as a top priority for ATF.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case in partnership with the Oxford Police Department and the Lafayette County Metro Narcotics Unit.
Assistant U.S. Attorney Julie Howell Addison 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.
Clive Insurance Salesperson Sentenced to 19 Years for Fraud and ContemptRead the Press Release
A Clive man was sentenced on June 12, 2024, to 18.5 years in federal prison for wire fraud and an additional six months for criminal contempt of court. He also was ordered to pay over $2.4 million in restitution to the victims of his fraud.
According to public court documents and evidence presented at sentencing, Zachary James Flaherty, 48, conducted a vast fraud over the course of seventeen years. From 2006 to 2023, Flaherty defrauded over thirty individuals out of all or portions of their retirement savings and other monies—in all, Flaherty’s victims lost over $3 million. Flaherty’s victims were from Iowa, Kansas, Missouri, and Nebraska; nearly all the victims were elderly, with the oldest being ninety-three years old at the time of the fraud. Most of the victims had limited financial knowledge.
Flaherty developed close relationships with his victims—he took them out to eat, bought them gifts, and helped with chores around their house. At least six of Flaherty’s victims were recently widowed when he exploited them, and Flaherty assisted with funeral arrangements or related matters for multiple victims’ spouses.
To gain access to his victims’ monies, Flaherty lied to his victims about numerous matters, including information about the returns and bonuses they could receive by investing with him, their ability to make penalty-free withdrawals of their funds, and the losses they could incur. Once his victims had “invested” with him, he continued to misrepresent and conceal information about the returns the victims were earning, the amount of money victims had invested, and the costs and penalties associated with the investments.
Flaherty primarily used two approaches to defraud his victims. His first approach was to encourage his victims to write checks to him or one of his businesses and promise his victims that he would invest the funds on their behalf. Victims trusted Flaherty’s statements and wrote him numerous checks. But Flaherty did not invest the funds on his victims’ behalf as he had stated; instead, he spent the money on himself, his family, and his businesses.
Flaherty’s second approach was to invest his victims’ funds into annuities. Flaherty was licensed to sell annuities in multiple states, and by purchasing annuities for his clients, Flaherty received over $1 million in commission payments from insurance companies. To obtain annuities on his victims’ behalf, however, Flaherty submitted documents to insurance companies which contained false misrepresentations, including forged signatures for his victims.
Flaherty’s elderly victims were not financially situated to invest in annuities. Annuities are long-term investments which typically take years to fully vest. If the owner of the annuity withdraws or cancels the annuity before it vests, then the owner usually must pay penalties, taxes, and other fees. Flaherty misrepresented the extent of the penalties, taxes, and fees his victims would suffer by investing with him, and he repeatedly encouraged his victims to withdraw funds and cancel annuities. Taking Flaherty at his word, his victims withdrew money and cancelled annuities, resulting in victims suffering massive amounts of losses.
Numerous victims spoke at sentencing about how Flaherty’s actions had betrayed their trust in him, shattered their faith in other people, and left them with limited financial resources. Several victims lost nearly all their life savings; others can no longer afford medical or assisted-living care. Victims also reported suffering health problems as a result of the increased anxiety and stress caused by Flaherty’s crimes.
Flaherty’s conviction for criminal contempt of court resulted from his violations of court orders issued in February 2024. Those orders prohibited Flaherty from selling or dissipating his personal property, which could be used to pay some of the money back to victims. Yet, Flaherty sold and attempted to sell and conceal several assets in March and April 2024, including guitars. Evidence at sentencing established that since being charged with federal crimes in April 2023, Flaherty repeatedly violated court orders applicable to him.
“Elder financial fraud causes devastating losses to its victims. Zachary Flaherty’s actions targeting the retirement savings and fixed incomes these victims spent a lifetime earning were an unprecedented betrayal of the trust they placed in him. The severity of Flaherty’s 228 months’ sentence, and $2.4 million in restitution, only partially compensates for the deep financial harm caused by his conduct. The heartbreaking impact of this type of crime can leave victims fearful for the future and wondering who to trust. Some helpful keys to combat these crimes are accountability and awareness,” said United States Attorney Richard D. Westphal for the Southern District of Iowa.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa Insurance Division’s Fraud Bureau and the Federal Bureau of Investigation investigated this case, with assistance from the Ankeny Police Department, the Clive Police Department, the Des Moines Police Department, and the Iowa Department of Public Safety’s Division of Criminal Investigation.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at https://www.ic3.gov. To learn more about the Department of Justice elder justice efforts please visit the Elder Justice Initiative page: https://www.justice.gov/elderjustice.
Chicago Man Sentenced to Prison for Interstate Cocaine TraffickingRead the Press Release
PITTSBURGH, Pa. - A resident of Chicago, Illinois, was sentenced in federal court on June 11, 2024, to 46 months of incarceration, to be followed by three years of supervised release, on his conviction of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Anthony Cook, 55.
According to information presented to the Court, Cook supplied over five kilograms of cocaine to two cocaine distributors based in the Western District of Pennsylvania after personally transporting the drugs from Chicago.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, Pennsylvania State Police, and Perryopolis Police Department for the investigation leading to the successful prosecution of Cook.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Charlottesville Bodybuilding Coach Pleads Guilty to Child ExploitationRead the Press Release
CHARLOTTESVILLE, Va. – A Charlottesville-based virtual bodybuilding coach, who sexually exploited at least six minors over the course of three years, pled guilty today to federal child exploitation and child pornography charges.
Elliott Atwell, 34, pled guilty to one count of sexual exploitation of a minor and one count of possession of, and access with the intent to view, child pornography. At sentencing, Atwell faces a mandatory minimum penalty of 15 years in prison and a possible maximum penalty of 30 years.
According to court documents, between December 2013 and April 2020, Atwell manipulated at least six minors to record themselves engaging in sexually explicit conduct and then send those recordings to him.
In efforts to gain the victims’ trust and willingness to participate, Atwell sent them gifts, including a digital camera, sex toys, Viagra, lubricant and other items. Atwell then gave detailed instructions on what sexual activities he wanted performed and captured on video.
In addition, the FBI searched Atwell’s iCloud account, which contained over 300 images and video files depicting minors engaged in sexually explicit conduct, including images of prepubescent boys engaged in sex acts.
The FBI remains committed to identifying and pursuing potential additional victims of Atwell’s conduct. If you have information that may be helpful, please contact the FBI tipline at 1-800-CALL-FBI (1-800-225-5324) or reach out online at https://tips.fbi.gov/home.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Melanie Smith and Trial Attorney Jessica Urban of the Department of Justice’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Charges Filed in Connection with String of Robberies Along Metropolitan Branch TrailRead the Press Release
WASHINGTON – Jalique Wiseman, 19, of Washington, D.C., was indicted yesterday on twenty-four charges stemming from a string of robberies and armed robberies in October and November 2023, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Wiseman was indicted by a grand jury in the Superior Court of the District of Columbia on charges including robbery, armed robbery, possession of a firearm during a crime of violence, assault with a dangerous weapon, and credit card fraud. Wiseman is scheduled to be arraigned on June 26, 2024, before the Honorable Jennifer Di Toro.
According to the government’s evidence, between October 2, 2023, and November 23, 2023, Wiseman and an accomplice robbed eleven people on or near the Metropolitan Branch Trail. Wiseman and his accomplice, using either physical violence or at gunpoint, robbed the victims of phones and other property. Wiseman demanded the victims’ passcodes and used that information to access the victims’ financial accounts to transfer money to accounts Wiseman controlled.
This case is being investigated by the Metropolitan Police Department.
This case is being prosecuted by Assistant U.S. Attorney Kraig Ahalt of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Career Offender Sentenced to over 17 Years for Illegally Possessing a FirearmRead the Press Release
Memphis, TN – A federal judge recently sentenced a Memphis man to over 17 years in federal prison for being a convicted felon in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime, and for possession of marijuana with the intent to distribute it. United States Attorney Kevin G. Ritz announced the sentence today.
According to court documents, in December 2021, Charlie Gibson was stopped by security guards at a local apartment complex for loitering. Upon detaining Gibson and searching his belongings, the guards found a Glock .40 caliber pistol, approximately 250 grams of marijuana, and three digital scales. The guards called the Memphis Police Department, who came and arrested Gibson.
In July 2022, Shelby County deputies responded to an assault call in Cordova, Tennessee and were told that the suspect was driving a gray Nissan. The deputies found the gray Nissan, and then saw a man, later identified as Gibson, quickly get into it. A deputy stood in front of the car and ordered Gibson to stop. Gibson refused and drove forward, striking the deputy who rolled onto the hood of the vehicle. The deputy drew his service weapon and ordered Gibson to stop again, but Gibson instead revved the engine. The deputy then fired several rounds through the windshield, striking Gibson, who crashed the vehicle shortly thereafter. Deputies at the scene rendered lifesaving aid to Gibson. Law enforcement later found a Glock .40 caliber pistol on the driver’s side floorboard of Gibson’s vehicle.
Charges from both incidents were combined into a superseding indictment in November 2023. After a two-day trial in February 2024, federal jurors found Gibson guilty of two counts of being a convicted felon in possession of a firearm, one count of marijuana possession with intent to distribute, and one count of possession of a firearm during commission of a dangerous felony.
United States District Court Judge Sheryl H. Lipman sentenced Gibson on June 11, 2024, to a total of 210 months in federal prison followed by three years of supervised release. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated for federal prosecution by the PSN Gun Task Force, Memphis Police Department, and the Tennessee Bureau of Investigation.
United States Attorney Kevin Ritz thanked Assistant United States Attorneys Jermal Blanchard and Greg Wagner, who prosecuted this case, as well as the law enforcement partners who investigated the case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Captain of Oil Tanker Pleads Guilty to Obstruction and Violating Ship Pollution Prevention LawRead the Press Release
Captain Abdurrahman Korkmaz, 37, pleaded guilty today to a two-count information charging him with violating the Act to Prevent Pollution from Ships (APPS) and for obstructing proceedings. Korkmaz, a Turkish national, was the captain of the PS Dream, a Panama-flagged motor tanker. The two related companies that operated the PS Dream pleaded guilty last month to environmental crimes.
The PS Dream arrived in New Orleans on Jan. 26, 2023. The U.S. Coast Guard conducted an inspection which included a review of the vessel’s oil record books. In his plea, Korkmaz acknowledges presenting the books to the Coast Guard knowing that they omitted information about discharging oily waste to the ocean before arriving in the United States. The falsified logs were intended to conceal the fact that beginning on Jan. 11, the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with international treaties regulating oil pollution from ships.
According to documents and statements filed in court, Korkmaz ordered his crew to pump overboard from the residual oil tank which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew.
Senior managers at Prive Shipping LLC and Prive Shipping Denizcilik Ticaret – two related companies that operated the ship – were aware that the oil-contaminated waste remained in the tank and were informed by Korkmaz that it had been dumped overboard. Both companies pleaded guilty and are scheduled for sentencing on Sept. 26.
Korkmaz is scheduled to be sentenced on Sept. 10. He faces a maximum penalty of six years in prison, with a fine of up to $250,000, or twice the gain or loss from the offense, for the APPS charge. He also faces a maximum penalty of five years in prison, with a fine of up to $250,000, or twice the gain or loss from the offense, for the obstruction charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; Special Agent in Charge Damon J. Youmans of the Coast Guard Investigative Service’s Gulf Field Office and Captain Greg Callaghan, Commander of U.S. Coast Guard Sector New Orleans made the announcement.
The Coast Guard Investigative Service and the Environmental Protection Agency’s Criminal Investigations Division investigated the case with assistance from U.S. Coast Guard Sector New Orleans.
Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Ryan Connors of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorneys G. Dall Kammer and Christine M. Calogero for the Eastern District of Louisiana are prosecuting the case.
California Man Pleads Guilty to Fraudulently Using Corporations’ UPS Accounts in Shipping Label SchemeRead the Press Release
WASHINGTON – Carl Granada Wilson, Jr., 36, of Hollywood, California, pleaded guilty today to fraudulently obtaining access to two American companies’ UPS accounts, which were then used to create shipping labels by Raekwon Malik Harrod, of Washington, D.C., and another individual. The announcement was made by U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division.
Wilson pleaded guilty to conspiracy to commit mail fraud, which has a statutory maximum penalty of five years’ imprisonment. As part of his plea agreement, he must pay restitution to the two companies. He also will be liable for a forfeiture money judgment for proceeds he received as a result of the scheme. U.S. District Court Judge Ana C. Reyes, who accepted Wilson’s guilty plea in the District of Columbia, scheduled sentencing for October 31, 2024.
In his plea agreement, Wilson admitted that no later than 2020, he gained access to one company’s UPS account’s log-in credentials and provided them to Harrod, who provided the credentials to a Maryland co-conspirator. Initially, Harrod and the Maryland co-conspirator, who both re-sold shoes online, used the account to create UPS shipping labels to mail the shoes that they sold, which reduced their shipping costs to zero. Wilson admitted that he intended for Harrod to use the account to ship shoes. In late 2020, Harrod and a Maryland co-conspirator started using the account to sell UPS shipping labels to third parties. Wilson did not know they were selling labels online. As a result of Harrod and the Maryland co-conspirator’s use of the account, the company lost more than $900,000.
In late July 2021, Harrod and the Maryland co-conspirator lost access to the account, prompting them to tell Wilson that they had been selling labels using the account. Wilson requested that they pay him $120,000, which Harrod and the Maryland co-conspirator understood would be used to compensate the person who gave Wilson access to the account. In reality, Wilson planned to keep all of that money for himself. In August 2021, Harrod and the Maryland co-conspirator withdrew nearly $70,000 in cash and flew with the money to Los Angeles. They withdrew another $50,000 once they were in California and provided the funds to Wilson.
Eventually, Wilson secured access to a second American company’s UPS account, which he provided to Harrod and the Maryland co-conspirator. The two men then resumed selling UPS shipping labels online, this time with direct involvement and knowledge of Wilson.
This case was investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorney Kondi Kleinman with the assistance of paralegal specialist Sonalika Chaturvedi and Michon Tart. Former Financial Analyst Bryan Snitselaar assisted with the investigation.
24cr133
Brockton Man Pleads Guilty to Unlawful Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A previously convicted felon pleaded guilty yesterday in federal court in Boston to unlawfully possessing a Glock pistol and 18 rounds of ammunition.
Michael Whitfield, 43, of Brockton, pleaded guilty to one count of being a felon in possession of firearms and ammunition. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Oct. 8, 2024. In November 2023, Whitfield was indicted by a federal grand jury.
On March 6, 2023, upon arrival at a motor vehicle accident scene in Brockton, law enforcement observed Whitfield in a vehicle with significant damage, its airbag deployed and a broken passenger door window. There was a strong odor of alcohol coming from inside the vehicle and an empty tequila bottle was observed on the passenger seat floor. A Glock 19X .9mm pistol loaded with 18 rounds was found on the driver’s side floorboard between Whitfield’s legs.
Due to a prior felony conviction stemming from 2006, Whitfield is prohibited from possessing firearms and ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 15 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 and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Plymouth County District Attorney’s Office, Massachusetts State Police, Brockton Police Department and the Brockton Fire Department. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
Beloit Man Sentenced to 7 1/2 Years for Fentanyl DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Darnell Isabell, 39, Beloit, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 7 ½ years in federal prison for distributing 40 grams or more of fentanyl. Isabell pleaded guilty to this charge on March 25, 2024. Isabell committed the instant offense while under federal supervision for a previous drug trafficking conviction. Judge Conley revoked that supervision and imposed an additional 18-month sentence to run consecutive to the sentence on the new conviction.
On January 11, 2023, law enforcement suspected that Isabell planned to sell fentanyl. Surveilling officers saw Isabell meet with a motorist on Oakwood Avenue, Beloit where Isabell delivered two ounces of fentanyl. Officers seized the substance that Isabell delivered to the motorist, and it tested positive for fentanyl. A subsequent search of Isabell’s home resulted in the recovery of additional amounts of fentanyl, cocaine, and $2,120 in U.S. currency.
Judge Conley observed that Isabell had spent most of his adult life selling drugs. Judge Conley noted that it was an aggravating factor that Isabell sold drugs while under federal supervised release from his 2017 cocaine distribution conviction. Isabell served 8 years in prison for that conviction, before being released to supervision in 2022.
The charge against Isabell was the result of an investigation conducted by the Rock County Sheriff’s Office, Beloit Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney Robert Anderson prosecuted this case.
Behavioral Health Companies, CEO, Pay Nearly $4.6 Million to Settle Allegations Related to Telehealth Services for Nursing Home ResidentsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, today announced that SUPPORTIVE CARE HOLDINGS, LLC, its related healthcare companies doing business in Connecticut and other states (“Supportive Care Companies”), and its CEO, JOSEPH “DOV” NEWMARK, have entered into a civil settlement agreement with the federal government and paid $4,595,739 to resolve allegations that they fraudulently and improperly submitted claims to Medicare and Connecticut Medicaid related to telehealth services provided to nursing home residents.
In addition to Supportive Care Holdings, LLC, the Supportive Care Companies are Supportive Care, LLC; Step Up Care, PC LLC; Supportive Care of Pennsylvania, LLC; Supportive Care Psychology of NJ, PC; Supportive Care Psychology of NY, PC; Sunrise Psychological Services, LLC; Supportive Behavioral Care of MA, LLC; Step Up Care of Tennessee, LLC; Supportive Care of Virginia, LLC; Supportive Care of Maryland, LLC; Supportive Care of New Hampshire, LLC; Supportive Care of South Carolina, LLC; Supportive Care of Michigan, LLC; and Supportive Care I of Rhode Island, PC. The related health care companies provide, among other things, psychological services to patients residing in skilled nursing facilities in Connecticut and other states. Newmark is the CEO for each of the Supportive Care Companies.
The government’s allegations against the Supportive Care Companies and Newmark involve improper and false claims submitted for “telehealth originating site facility fees.” A telehealth visit involves an exchange between a patient at an originating site (e.g. a nursing home) and a physician, or other qualified healthcare professional, at a distant site. Relevant billing rules and guidance, specifically Healthcare Common Procedure Coding System (HCPCS) code Q3014, allows payment for a “telehealth originating site facility fee” in addition to the professional fee for the underlying psychological service being provided. However, HCPCS code Q3014 should only be billed by the originating site (in this case, the nursing homes) when the facility provides administrative and clinical support for a patient receiving services via telehealth. The government alleges that the Supportive Care Companies and Newmark submitted or caused to be submitted improper and false claims for “telehealth originating site facility fees,” billed pursuant to HCPCS code Q3014, which should only have been billed by the nursing homes.
In addition, the government alleges that the Supportive Care Companies and Newmark submitted or caused to be submitted false or fraudulent claims for payment to Medicare and Connecticut Medicaid for psychological services allegedly provided to Medicare and Medicaid beneficiaries residing in nursing homes when those Medicare and Medicaid beneficiaries were not, in fact, residing in the nursing homes, but had been transferred to various hospitals and admitted as inpatients.
The settlement resolves False Claims Act and common law allegations for conduct occurring between 2019 and 2023.
“As telehealth plays an increasingly important role in our health care system, it is critical that health care providers follow the relevant rules and bill for such services accurately and honestly,” said U.S. Attorney Avery. “The U.S. Attorney’s Office will vigorously investigate any provider that submits fraudulent claims related to telehealth services, as this misconduct increases the cost of health care for all of us.”
“Our federal health care system relies on the basic principle that providers bill properly and follow the rules, and the taxpayers who fund the Medicare and Medicaid programs deserve nothing less,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “We are committed to protecting the integrity of those programs, and we will continue to pay particular attention to schemes that seek to undermine the legitimate delivery of telehealth services.”
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Richard M. Molot.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Bakersfield Man Indicted for Drug and Gun OffensesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Fabian Rodriguez, 35, of Bakersfield, charging him with being a felon in possession of ammunition and for possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Rodriguez was found in possession of three boxes of 9 mm ammunition after having been previously convicted of crimes punishable by a term of imprisonment exceeding one year. Rodriguez was also found in possession of 50 grams or more of methamphetamine with other items typically employed in the sale of controlled substances.
This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Chan Hee Chu is prosecuting the case.
If convicted of being a felon in possession of ammunition, Rodriguez faces a maximum statutory penalty of 15 years in prison and a fine of up to $250,000. If convicted of possession with the intent to distribute methamphetamine offense, he faces a maximum penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Attorney General Merrick B. Garland Statement on the Supreme Court’s Decision in FDA v. Alliance for Hippocratic MedicineRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the Supreme Court’s decision in FDA v. Alliance for Hippocratic Medicine:
“The Justice Department is gratified that today’s unanimous decision in FDA v. Alliance for Hippocratic Medicine ensures that mifepristone remains available for women across the country on the terms approved by the Food and Drug Administration (FDA).
For more than two decades, and across five presidential administrations, millions of Americans have relied upon FDA’s expert judgment that mifepristone is safe and effective for termination of early pregnancies. Today, more than half of those who choose to terminate their pregnancies rely on mifepristone to do so.
I am proud of the work of lawyers at the Justice Department for vigorously defending the FDA’s expert judgment about the safety and efficacy of a medication that women have relied upon for more than twenty years. But our work does not end today. The Department will continue to work tirelessly to protect and advance reproductive freedoms under federal law.
As I said the day Dobbs was decided, women who reside in states that have blocked access to comprehensive reproductive care must remain free to travel to states in which that care is lawful. Under the First Amendment, individuals must remain free to inform and counsel each other about the reproductive care that is available across state lines. And, as the Office of Legal Counsel has concluded, the Comstock Act does not prohibit people from mailing mifepristone or misoprostol when they do not intend the recipient to use those drugs unlawfully.
The Department of Justice is committed to protecting reproductive freedom. We will continue to use every tool at our disposal to protect women’s access to mifepristone and other lawful reproductive care.”
Assault with Intent to Kill Charges Brought Against District Man for Shooting in NortheastRead the Press Release
WASHINGTON – Alante Partlow, 29, of Washington, D.C., was charged yesterday in D.C. Superior Court with several offenses arising from an April 23, 2024, shooting, announced U.S. Attorney Matthew M. Graves and Chief, Pamela A. Smith, of the Metropolitan Police Department. Partlow is detained pending the June 27, 2024, preliminary hearing before the Superior Court Judge Robert Okun.
Partlow was charged with one count of assault with intent to kill while armed for firing on the adult, and a second count of assault with intent to kill while armed for firing at the child in his effort to shoot the adult. He was also charged with aggravated assault while armed and possessing a firearm during each of the three crimes of violence.
According to the government’s evidence, at approximately 11:26 p.m. on April 23, 2024, the victim and a 5-year-old child were walking out of an apartment building in the Fort Totten neighborhood after the adult had argued with Partlow. Partlow followed the victims outside and then fired multiple shots at the adult victim. The adult tried to shield the child and sustained multiple gunshot wounds. The child also sustained injuries.
This case is being investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Assistant U.S. Attorney Michael Roberts.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Armed Man Sentenced for Attempted Kidnapping on the Blue Ridge ParkwayRead the Press Release
ASHEVILLE, N.C. – A Whittier, N.C. man has been sentenced following his conviction for possession of a firearm during an assault on the Blue Ridge Parkway, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Evan William Blankenship, 23, was sentenced to 120 months in prison followed by three years of supervised release after he pleaded guilty to possession and discharge of a firearm in furtherance of a crime of violence.
Debra A. Flowers, Acting Chief Ranger of the Blue Ridge Parkway, joins U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, in the early morning hours of September 28, 2023, L.P. and a second victim, L.M., were sitting in a parked vehicle at Water Rock Knob Overlook off the Blue Ridge Parkway. Blankenship drove his vehicle to where the victims were located and pointed a semi-automatic pistol at them. He tried to pull L.P. out of the vehicle by the hair and arm, threatened to harm both victims, and struck L.P. in the face, causing temporary hearing loss. Blankenship also fired his firearm into the air before pointing it again at the victims.
L.M. eventually convinced Blankenship to let them go, and the victims reported the incident to law enforcement. Shortly thereafter. L.P. informed investigators that she knew Blankenship through Snapchat and believed he had used Snapchat’s location-sharing feature to find her on the Blue Ridge Parkway.
Blankenship was arrested on October 11, 2023, and has remained in federal custody since. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King thanked the National Park Service for their thorough investigation and the Jackson County Sheriff’s Office for their assistance with the case.
Assistant U.S. Attorney Alex M. Scott, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Arapahoe woman convicted for aggravated child abuse, assault resulting in serious bodily injury, and assault with a dangerous weaponRead the Press Release
Kandace Sitting Eagle, 33, of Arapahoe, Wyoming, was convicted by a federal jury on Jun. 13, for aggravated child abuse, assault resulting in serious bodily injury, and assault with a dangerous weapon. The four-day trial was held before U.S. District Court Judge Alan B. Johnson, in Cheyenne.
According to trial evidence, on Dec. 12, 2023, an Arapahoe school resource officer conducted a welfare check on a 13-year-old student that had not been to school in over a month. He eventually found the child in a crawl space under the trailer where the parents, Kandace and Truman Sitting Eagle, were hiding the child. Based on the severity of his injuries, the child was immediately taken to Sage West Hospital in Riverton, and then transported via air ambulance to Primary Children’s Hospital in Salt Lake City, Utah. The investigation proved that the child had suffered weeks of physical beatings, isolation, starvation, and psychological abuse at the hands of Kandace and Truman.
Sentencing has been set for Aug. 29. Kandace Sitting Eagle faces no less than 10 years and up to life imprisonment, up to a $250,000 fine, and up to five years of supervised release.
Truman Sitting Eagle, 36, pleaded guilty to assault resulting in serious bodily injury on Apr. 8. His sentencing is scheduled for Aug. 6, in front of U.S. District Court Judge Alan B. Johnson in Cheyenne. He also faces no less than 10 years and up to life imprisonment, up to a $250,000 fine, and up to five years of supervised release.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors in both cases.
This crime was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Cameron J. Cook.
Case No. 24-CR-03
Anchorage man sentenced to 15 years for drug trafficking, gun chargesRead the Press Release
ANCHORAGE, Alaska – An Anchorage man was sentenced today to 15 years in prison for possessing and distributing controlled substances and possessing a firearm illegally.
According to court documents, in November 2020, Mauricio Martinez, 22, was a drug dealer operating in Anchorage selling illicit drugs via a social media platform. Law enforcement became aware that, on at least one occasion, the defendant carried a firearm while selling drugs. Martinez was indicted by a federal grand jury in August 2021 for distributing a controlled substance and for carrying a firearm during a drug trafficking crime.
In August 2022, law enforcement located the defendant driving a vehicle and attempted to arrest him, but he tried to flee and discard a firearm in the process. He was arrested and officers found $4,000 in cash on his person and another firearm, roughly 10,000 counterfeit Xanax and Percocet pills, nearly 7,000 fentanyl tablets and cocaine in his vehicle.
In June 2023, while Martinez was in the Anchorage jail awaiting trial, guards searched his cell and found a large knife and meth packaged for sale that he admitted were his.
Martinez pleaded guilty in September 2023.
“Mr. Martinez is a serious danger to the public and has shown a disregard for the law since he was a teenager, and even while he was incarcerated,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Keeping individuals like Mr. Martinez out of our communities is a priority for our office. We will continue to work with our law enforcement partners to investigate and prosecute individuals who pose a risk of public safety due to their actions.”
“Mr. Martinez utilized firearms while dealing deadly drugs, including illicit fentanyl, in our community,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “This sentencing sends a message that illegal drug distribution and violent criminal behavior will not be tolerated. The FBI will continue to work jointly with our law enforcement partners to aggressively pursue those who endanger the lives of Alaskans.”
The FBI Anchorage Field Office and Anchorage Police Department investigated the case as part of the FBI Safe Streets Task Force.
Assistant U.S. Attorney Tom Bradley prosecuted the case.
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12 Alleged Members of Drug Trafficking Organization Based in Philadelphia’s Fairhill Section Indicted on Narcotics and Gun ChargesRead the Press Release
PHILADELPHIA – At a news conference this morning, United States Attorney Jacqueline C. Romero announced that 12 alleged members of a drug trafficking organization based in Philadelphia’s Fairhill section have been indicted on dozens of narcotics and gun charges.
U.S. Attorney Romero discussed the case alongside Eric J. DeGree, Special Agent in Charge of ATF Philadelphia; First Deputy Commissioner John Stanford and Deputy Commissioner Frank Vanore of the Philadelphia Police Department; Christopher Nielsen, Inspector in Charge of the U.S. Postal Inspection Service’s Philadelphia Division; Nehemiah Haigler and James McCaffrey, Regional Directors of the Pennsylvania Attorney General’s Office Bureau of Narcotics Investigations; and U.S. Marshal Eric S. Gartner.
The indictment alleges that, from at least February 2023 through June 2024, a drug trafficking organization led by Wilfredo Avila sold significant quantities of packaged fentanyl, fentanyl pills, and cocaine in and around the Fairhill-Kensington area.
In addition to selling these narcotics, the Avila DTO routinely offered and sold firearms of all kinds to its drug dealer customers.
Information on the defendants, all residents of Philadelphia, and the charges they face is below.
Ten have been arrested, one awaits removal from another state, and one – Ahmed Perez – remains at large.
“People who illegally traffic in drugs and guns help unravel families and undermine entire communities,” said U.S. Attorney Romero. “I hope this takedown shows the U.S. Attorney’s Office’s commitment to tackling such critical public safety issues, and holding the perpetrators accountable for the harm they’ve caused to our city. I also hope it sends a message to all the other drug and gun traffickers out there. That message is… you’re next.”
“The ATF Philadelphia Field Division is committed to supporting the Philadelphia Police Department’s efforts to tamper the drug-fueled violence in the Kensington section of Philadelphia, and help the community there,” said ATF Special Agent in Charge DeGree. “Last week’s Operation Black Diamond is a concrete example of that commitment. It is also another example of our long history of working with our local, state, and federal partners to prevent, investigate and prosecute the crime that plagues many of our communities.”
“The indictments announced today mark a significant step forward in our ongoing battle against the epidemic of drug sales, use, and violence that has plagued our communities, especially in Kensington,” said Philadelphia Police Commissioner Kevin J. Bethel. “Our synergy with federal partners is vital in Mayor Parker's mission to eradicate these crimes, and to bring hope back to our Kensington communities. Ongoing collaboration with the ATF, U.S. Attorney's Office, and other local, state, and federal agencies will be instrumental in dismantling these dangerous organizations and restoring safety to our neighborhoods. I thank our LE colleagues for their partnership; and together, we are committed to continuing this united effort to protect our citizens and uphold the law.”
“The members of this organization allegedly trafficked weapons and drugs throughout Kensington. Every illegally-possessed firearm presents a threat to public safety, as those guns are often used in violent crimes,” Pennsylvania Attorney General Michelle Henry said. “I am grateful for the hard work of all the agencies who partnered in this investigation. Together, we will continue efforts to stop the trafficking of firearms and make Pennsylvania safer for all who live here.”
“Every day, Postal Inspectors work to protect the mail from being misused by criminals, including large scale Drug Trafficking Organizations,” said USPIS Inspector in Charge Nielsen. “When prevention and investigative efforts can come together with the efforts of other agencies to identify and charge individuals who distribute drugs throughout Philadelphia, it makes all our communities safer. I want to acknowledge the contributions of the officers and agents from the Philadelphia Police Department, the Pennsylvania Attorney General’s Office, the ATF, and the Postal Inspectors of the Philadelphia Division. I also want to acknowledge and thank the Assistant United States Attorneys who supported this investigation.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is being prosecuted under a new criminal provision created in the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act includes the first federal statute, Title 18, United States Codes, Section 933, that was specifically designed to target the unlawful trafficking of firearms.
If convicted, the defendants face maximum possible sentences ranging from five years to lifetime imprisonment.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Philadelphia Police Department, the U.S. Postal Inspection Service, and the Pennsylvania Attorney General’s Office Bureau of Narcotics Investigation, with assistance from the U.S. Marshals Service, and is being prosecuted by Special Assistant United States Attorney David Osborne.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
A chart of the defendants and the charges against them:
Name
Age
Charges
Wilfredo Avila
30
▪ Attempt and conspiracy (1 count)
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
▪ Manufacture, distribute, dispense, possess a controlled substance (25 counts)
▪ Unlawfully engaging in the business of firearms (1 count)
▪ Unlawful shipment, transfer, receipt, or possession of a firearm by a felon (16 counts)
▪ Trafficking in firearms (1 count)
Chanel Diaz Oscar
48
▪ Attempt and conspiracy (1 count)
▪ Manufacture, distribute, dispense, possess a controlled substance (9 counts)
Zaida Diaz
59
▪ Attempt and conspiracy (1 count)
▪ Manufacture, distribute, dispense, possess a controlled substance (3 counts)
Marcelino Minaya Lebron
44
▪ Attempt and conspiracy (1 count)
Noel Arce
26
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
▪ Unlawfully engaging in the business of firearms (1 count)
▪ Unlawful shipment, transfer, receipt, or possession of a firearm by a felon (3 counts)
Abdul Ortiz
37
▪ Manufacture, distribute, dispense, possess a controlled substance (2 counts)
Ahmed Perez
28
▪ Manufacture, distribute, dispense, possess a controlled substance (1 count)
Juan Acosta
55
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
▪ Unlawfully engaging in the business of firearms (1 count)
▪ Unlawful shipment, transfer, receipt, or possession of a firearm by a felon (2 counts)
▪ Trafficking in firearms (1 count)
Angel Colon
35
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
▪ Unlawfully engaging in the business of firearms (1 count)
▪ Unlawful shipment, transfer, receipt, or possession of a firearm by a felon (1 count)
▪ Trafficking in firearms (1 count)
Alexander Roman Delgado
33
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
▪ Unlawful shipment, transfer, receipt, or possession of a firearm by a felon (1 count)
▪ Trafficking in firearms (1 count)
Angel Velez
33
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
▪ Unlawful shipment, transfer, receipt, or possession of a firearm by a felon (1 count)
Jose Rodriguez
30
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
Wednesday 12 June 2024
White Swan Woman Pleads Guilty to Murder on the Yakama NationRead the Press Release
Yakima, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Tahsheena Stacy Sam, 35, of White Swan, Washington, pleaded guilty to Second Degree Murder in Indian Country for the murder of Destiny Lloyd, who was an enrolled member of the Yakama Nation. United States District Judge Mary K. Dimke accepted Sam’s guilty plea and scheduled a sentencing hearing for September 17, 2024, in Yakima, Washington.
In the plea agreement accepted by the court, and in information disclosed during court proceedings, on December 25, 2017, the victim, Destiny Lloyd, who was 23 years old at the time, was socializing with a group of friends. The Defendant, whom Lloyd did not know, also joined the group.
Later that evening, Sam, and others who were with her, decided to rob Ms. Lloyd. The group drove to an area near Harrah Road and Marion Drain Road on the Yakama Nation Indian Reservation. There, money was forcibly taken from Lloyd, and Lloyd was then left on the side of the road.
After the assault, members of the group became concerned that Lloyd might report the incident. They then drove back to where they left her and used a flashlight to follow her tracks in the snow. Sam found Lloyd. She then obtained a large wrench from another member of the group and used the wrench to strike Lloyd several times on the head. Sam and the others left Lloyd’s body where it was discovered by a passing motorist a few days later.
“My heart breaks for the victim and her family. Ms. Lloyd’s loss leaves a hole that cannot ever be filled,” stated U.S. Attorney Waldref. “This case involved a lengthy investigation and witnesses that were not always forthcoming with law enforcement. Yet, the FBI and Yakama Nation Tribal Police remained undeterred and continued investigating this case – following available leads, which ultimately led to Ms. Sam. While federal law enforcement often is unable to disclose to the public each step in an investigation, the U.S. Attorney’s office, FBI, and Yakama Nation have remained committed to securing justice for victims of violent crime, including for Ms. Lloyd and her family. We work tirelessly with our law enforcement partners to pursue those who cause harm in our community and to address the root causes leading to the crisis of murdered or missing Indigenous people.”
“It is hard to comprehend the wanton violence of this case,” said Kelly M. Smith, Assistant Special Agent in Charge of the FBI Seattle field office. “I am grateful that Ms. Sam has now taken responsibility for her role in Ms. Lloyd’s tragic death. Now the process of healing can begin for the loved ones of the victim. The FBI will continue working to ensure the safety of our state’s reservations.”
This case was investigated by the FBI and the Yakama Nation Tribal Police. It has been prosecuted by Assistant United States Attorneys Todd Swensen, Timothy J. Ohms, and Ian Garriques.
Charges remain pending for a co-defendant in this case. Those charges are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Westbrook Man Sentenced to 12 ½ Years for Possessing Child Sexual Abuse MaterialRead the Press Release
BANGOR, Maine: A Westbrook man was sentenced on Tuesday in U.S. District Court in Bangor for possessing child pornography.
Chief U.S. District Judge Lance E. Walker sentenced Michael Peterson, 39, to 150 months in prison followed by 10 years of supervised release.
According to court records, between December 2021 and August 2022, Peterson received and attempted to receive child sexual abuse material using the Telegram application. Peterson received the images from an individual using Telegram and paid the same individual in hopes of obtaining additional images.
Homeland Security Investigations (HSI) and the Maine State Police investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – referred to in legal terms as "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.
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Washington County Woman Sentenced to 600 Months in Federal Prison for Production of Child PornographyRead the Press Release
DAVENPORT, Iowa – A Riverside woman was sentenced yesterday to 600 months in federal prison for two counts of Production of Child Pornography, following a plea of guilty on an earlier date.
According to public court documents and evidence presented at sentencing, Abigail Margarete Knight, 36, produced child sexual assault material of two minor victims between July 2020 and May 2023. Knight used photos and videos of minors and sent the child sexual assault material to two men, one in Texas and the other in Missouri, through the use of cellular phones and internet chats.
After completing her term of imprisonment, Knight will be required to serve five years of supervised release. 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 Washington County, Iowa, Sheriff’s Office, the Federal Bureau of Investigation, the Iowa Department of Criminal Investigations, and the ICAC Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
Vero Beach Resident Sentenced to over 15 Years in Federal Prison for Distributing FentanylRead the Press Release
MIAMI– On June 10, Sudiata Stinson, 47, of Vero Beach, Fla., was sentenced to 188 months in prison for distributing a mixture or substance containing a detectable amount of fentanyl, by U.S. District Judge Jose E. Martinez sitting in Miami.
On February 7, Stinson pleaded guilty to an indictment charging two counts of distributing a mixture or substance containing a detectable amount of fentanyl before U.S. Magistrate Judge Shaniek Maynard, sitting in Fort Pierce, Fla.
According to court documents filed in the case, following the fentanyl overdose death of a young Vero Beach woman, law enforcement began investigating Stinson as the source of supply. Over the next few months, in a joint investigation, Drug Enforcement Administration (DEA) and Indian River County Sheriff’s Office (IRCSO) orchestrated two purchases of fentanyl from Stinson, which led to his indictment for two counts of distributing fentanyl.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the DEA Miami Field Division, and Sheriff Eric Flowers of the IRCSO made the announcement. The case was prosecuted by Assistant U.S. Attorney Justin Hoover.
According to the DEA’s National Drug Threat Assessment, synthetic drugs, such as fentanyl, are poisoning the nation. Fentanyl is the deadliest drug threat the United States has ever faced, killing 38,000 Americans in the first six months of 2023 alone. Just one fentanyl pill can kill, as noted in DEA’s One Pill Can Kill campaign. Two milligrams of fentanyl is considered a potentially fatal dose and laboratory testing indicates seven out of 10 pills seized by the DEA contain a lethal dose of fentanyl. The public is encouraged to be cautious.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-CR-14040.
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Two Russia-Born U.S. Citizens Arrested for Conspiring to Send $500,000 Worth of Luxury Goods to RussiaRead the Press Release
WASHINGTON – An indictment was returned yesterday in the District of Alaska charging Sergey Nefedov, 40, of Anchorage, Alaska, and Mark Shumovich, 35, of Bellevue, Washington, with allegedly operating a scheme to illegally export nearly half a million dollars’ worth of snowmachines and associated parts from the United States to Russia without the required licenses and approvals, in violation of U.S. export laws. Nefedov and Shumovich were arrested yesterday morning in Alaska and Washington, respectively.
“As alleged in the indictment, the defendants engaged in a scheme to evade export restrictions by smuggling hundreds of thousands of dollars’ worth of snowmachines and associated parts to Russia,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This matter is the latest example of our commitment to hold accountable those who violate sanctions laws and our determination to impose costs on the Russian government for its unjustified invasion of Ukraine.”
“Violations of export laws carry significant consequences for perpetrators in the U.S. and abroad,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Our office will continue to work with the FBI, Homeland Security Investigations and the Department of Commerce to prosecute this case to the fullest extent of the law and ensure U.S. export restrictions are enforced.”
“The charges laid out in the indictment are serious offenses,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “The FBI will continue to work with our law enforcement partners to investigate those who subvert export laws to smuggle goods out of the United States.”
“Covertly selling snowmachines to Russia violates our export laws, regardless of whether the sales are direct or laundered through Hong Kong,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Today’s arrests are just the latest example of our aggressive efforts to enforce the export restrictions imposed on Russia following its brutal full-scale invasion of Ukraine.”
“This seizure of snowmachines and the coordinated investigation led to the disruption and identification of a transnational criminal network attempting to circumvent Russian sanctions,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in the Pacific Northwest. “Using our unique customs authorities, HSI works with its law enforcement partners, including U.S. Customs and Border Protection, to identify, search, and seize merchandise being exported contrary to law, and prosecute those responsible.”
As alleged in the indictment, between at least March 2022 and May 2023, Nefedov and Shumovich conspired with individuals doing business in Russia and Hong Kong to evade the U.S. export restrictions that were imposed on luxury goods to Russia pursuant to Executive Order 14068 following Russia’s full-scale, unlawful invasion of Ukraine on Feb. 24, 2022, by shipping snowmobiles and associated parts to Russia through an intermediary company in Hong Kong.
In furtherance of the conspiracy, a Russian national who owned a company selling snowmachines in Russia (Co-Conspirator 1, or CC-1) allegedly contracted with a Russian national doing business in Hong Kong (Co-Conspirator 2, or CC-2) for shipment of nearly $1 million worth of goods from Hong Kong to Russia. Separately, CC-1 allegedly created invoices for CC-2’s company to purchase snowmachines and other motorsport vehicles from Nefedov’s company, Absolut Auto Sales LLC. As alleged, CC-1 told a freight forwarder that he needed goods to “transit in a third country” from the United States because deliveries of equipment to Russia “have been stopped.”
According to the indictment, Nefedov and Shumovich then received quotes from U.S.-based snowmachine distributors and freight forwarders to purchase and ship snowmachines. As alleged, Nefedov forwarded those quotes to CC-1, who approved of quotes and instructed Nefedov on additional questions to pose to the U.S. distributors and freight forwarders. To fund the purchase of snowmachines, CC-1’s company allegedly wired funds to CC-2’s company in Hong Kong, which wired funds to Nefedov’s company, Absolut Auto Sales LLC. Nefedov used those funds to purchase snowmachines in the United States with the aid of Shumovich. According to the indictment, Nefedov and Shumovich told freight forwarders that the snowmachines would be going to Hong Kong, where they knew that a license was not required for export, thereby causing a freight forwarder to provide false information to U.S. authorities by concealing the end user and destination of the snowmachines.
Authorities seized all snowmachines related to this case. Nefedov and Shumovich are charged with the following offenses, which carry associated maximum penalties as follows: conspiracy to unlawfully export goods from the U.S. and defraud the U.S. (5 years in prison); false electronic export information activities (5 years in prison); smuggling (10 years in prison); unlawful export without a license in violation of the Export Control Reform Act (20 years in prison); and conspiracy to commit international money laundering (20 years in prison). Nefedov is also charged with money laundering and making a false statement in violation of the Export Control Reform Act, which both carry maximum penalties of 20 years in prison. The defendants face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Anchorage Field Office, Homeland Security Investigations, and the Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement are investigating the case.
Assistant U.S. Attorney Adam Alexander for the District of Alaska and Trial Attorney Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
These cases were coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Russia-Born U.S. Citizens Arrested for Conspiring to Send $500,000 Worth of Luxury Goods to RussiaRead the Press Release
An indictment was returned yesterday in the District of Alaska charging Sergey Nefedov, 40, of Anchorage, Alaska, and Mark Shumovich, 35, of Bellevue, Washington, with allegedly operating a scheme to illegally export nearly half a million dollars’ worth of snowmachines and associated parts from the United States to Russia without the required licenses and approvals, in violation of U.S. export laws. Nefedov and Shumovich were arrested yesterday in Alaska and Washington, respectively.
“As alleged in the indictment, the defendants engaged in a scheme to evade export restrictions by smuggling hundreds of thousands of dollars’ worth of snowmachines and associated parts to Russia,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This matter is the latest example of our commitment to hold accountable those who violate sanctions laws and our determination to impose costs on the Russian government for its unjustified invasion of Ukraine.”
“Violations of export laws carry significant consequences for perpetrators in the U.S. and abroad,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Our office will continue to work with the FBI, Homeland Security Investigations and the Department of Commerce to prosecute this case to the fullest extent of the law and ensure U.S. export restrictions are enforced.”
“Covertly selling snowmobiles to Russia violates our export laws, regardless of whether the sales are direct or laundered through Hong Kong,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Department of Commerce. “Today’s arrests are just the latest example of our aggressive efforts to enforce the export restrictions imposed on Russia following its brutal full-scale invasion of Ukraine.”
“These arrests serve as an example of the FBI’s determination to stop those individuals who allegedly export U.S. goods to foreign adversaries in violation of U.S. law,” said Executive Assistant Director Larissa L. Knapp of the FBI's National Security Branch. “Any attempt to circumvent U.S. laws, sanctions and regulations will not be tolerated, and the FBI will continue to work with our partners to counter any efforts to illegally ship U.S. goods to sanctioned nations.”
“The charges laid out in the indictment are serious offenses,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “The FBI will continue to work with our law enforcement partners to investigate those who subvert export laws to smuggle goods out of the United States.”
“This seizure of snowmachines and the coordinated investigation led to the disruption and identification of a transnational criminal network attempting to circumvent Russian sanctions,” said Special Agent in Charge Robert Hammer of Homeland Security Investigations (HSI)’s operations in the Pacific Northwest. “Using our unique customs authorities, HSI works with its law enforcement partners, including U.S. Customs and Border Protection, to identify, search and seize merchandise being exported contrary to law, and prosecute those responsible.”
As alleged in the indictment, between at least March 2022 and May 2023, Nefedov and Shumovich conspired with individuals doing business in Russia and Hong Kong to evade the U.S. export restrictions that were imposed on luxury goods to Russia pursuant to Executive Order 14068 following Russia’s full-scale, unlawful invasion of Ukraine on Feb. 24, 2022, by shipping snowmachines and associated parts to Russia through an intermediary company in Hong Kong.
In furtherance of the conspiracy, a Russian national who owned a company selling snowmachines in Russia (Co-Conspirator 1, or CC-1) allegedly contracted with a Russian national doing business in Hong Kong (Co-Conspirator 2, or CC-2) for shipment of nearly $1 million worth of goods from Hong Kong to Russia. Separately, CC-1 allegedly created invoices for CC-2’s company to purchase snowmachines and other motorsport vehicles from Nefedov’s company, Absolut Auto Sales LLC. As alleged, CC-1 told a freight forwarder that he needed goods to “transit in a third country” from the United States because deliveries of equipment to Russia “have been stopped.”
According to the indictment, Nefedov and Shumovich then received quotes from U.S.-based snowmachine distributors and freight forwarders to purchase and ship snowmachines. As alleged, Nefedov forwarded those quotes to CC-1, who approved of quotes and instructed Nefedov on additional questions to pose to the U.S. distributors and freight forwarders. To fund the purchase of snowmachines, CC-1’s company allegedly wired funds to CC-2’s company in Hong Kong, which wired funds to Nefedov’s company, Absolut Auto Sales LLC. Nefedov used those funds to purchase snowmachines in the United States with the aid of Shumovich. According to the indictment, Nefedov and Shumovich told freight forwarders that the snowmachines would be going to Hong Kong, where they knew that a license was not required for export, thereby causing a freight forwarder to provide false information to U.S. authorities by concealing the end user and destination of the snowmachines.
Authorities seized all snowmachines related to this case. Nefedov and Shumovich are charged the following offenses, which carry associated maximum penalties as follows: conspiracy to unlawfully export goods from the United States and defraud the United States (five years in prison); false electronic export information activities (five years in prison); smuggling (10 years in prison); unlawful export without a license in violation of the Export Control Reform Act (20 years in prison); and conspiracy to commit international money laundering (20 years in prison). Nefedov is also charged with money laundering and making a false statement in violation of the Export Control Reform Act, which both carry maximum penalties of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, HSI and Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement are investigating the case.
Trial Attorney Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorney Adam Alexander for the District of Alaska are prosecuting the case.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
View the indictment here
Troy Felon Pleads Guilty to Selling Fentanyl and Illegally Possessing a FirearmRead the Press Release
ALBANY, NEW YORK – Jashene Austin, age 29, of Troy, New York, pled guilty today to distributing fentanyl and illegally possessing a firearm as a felon.
United States Attorney Carla B. Freedman and Bryan Miller, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Austin admitted that on August 11, 2023, he sold, to another person, 50 grams of fentanyl and a semi-automatic pistol. A prior felony conviction for attempted burglary prevented Austin from legally possessing the firearm in New York.
Austin faces a minimum term of 5 years and up to 40 years in prison, a fine of up to $5 million, and a term of post-imprisonment supervised release of at least 4 years and up to life, when he is sentenced on October 22, 2024, by United States District Judge Mae A. D’Agostino.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
ATF investigated this case with assistance provided by the Troy Police Department. Assistant U.S. Attorney Emmet O’Hanlon is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Toppenish Man Sentenced to Federal Prison for Violent Armed RobberyRead the Press Release
Yakima, Washington - Chief United States District Judge Stanley A. Bastian sentenced Eduardo Valencia, age 42, of Toppenish, Washington, to 162 months in federal prison on charges of Robbery Affecting Commerce and Using, Carrying, or Brandishing a Firearm During a Crime of Violence. Valencia was convicted of those crimes on March 6, 2024, following a jury trial. Chief District Judge Bastian also imposed 5 years of federal supervision after Valencia is released from prison.
According to court documents and information disclosed at trial and sentencing, on November 18, 2020, Valencia and an accomplice walked into the La Milpa Market in Yakima, Washington. Valencia and the accomplice pulled out firearms and demanded money from the clerk, whom they threatened to kill. Valencia and the accomplice then ran behind the counter, fought with the clerk, and ultimately pistol-whipped the clerk. Valencia and the accomplice ran out of the store with approximately $10,000. Both men were masked during the robbery, and Valencia was later identified through, among other things, DNA on a glove that he dropped during the fight with the clerk.
“All people in Eastern Washington deserve to be safe at work. Mr. Valencia’s violent robbery and assault on a store clerk caused lasting trauma that will continue even after this case concludes,” stated United States Attorney Vanessa R. Waldref. “My office is committed to safeguarding our neighborhoods and communities by aggressively prosecuting those who resort to violence.”
“Mr. Valencia’s actions clearly warranted this sentence,” said ATF Seattle Special Agent in Charge Jonathan Blais. “Using a firearm in the commission of an already violent crime only further increases the danger to those involved, and to the public in general.”
This case was investigated by the ATF and Yakima Police Department. It was prosecuted by Assistant United States Attorney Tom Hanlon.
Titusville Man Pleads Guilty to Interstate Firearms Parts Theft ConspiracyRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Chad Earl Cotsamire (44, Titusville) today pleaded guilty to conspiracy to transport stolen property in interstate commerce. Cotsamire faces a maximum penalty of five years in federal prison. Cotsamire has agreed to forfeit $190,314.83, the proceeds of the conspiracy.
According to the plea agreement, Cotsamire was an employee of a firearms and firearms parts manufacturer. Between September 2019 and June 2022, at the direction of co-conspirators, Cotsamire stole firearms parts from his employer, and transported those firearms parts to buyers across state lines. Cotsamire personally obtained $190,314.83 as a result of the conspiracy.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Noah P. Dorman.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.