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24 July 2024
Former Army Officer and JAG Attorney Pleads Guilty to Destruction of U.S. Army Property and Lying to Federal InvestigatorsRead the Press Release
CHARLOTTESVILLE, Va. – A former Army officer and attorney assigned to the United States Army Judge Advocate General’s Legal Center and School (JAG School) in Charlottesville pled guilty today to multiple federal charges related to his destruction of U.S. Army property and subsequent false statements to federal investigators.
Manfredo Martin-Michael Madrigal, III, 38, a former resident of Charlottesville, Va., pled guilty today to one count of destruction of U.S. Army materials and three counts of making a false statement.
According to court documents, in February 2022, Madrigal was assigned to a staff position at the JAG School in the Training Developments Directorate, whose mission was to design and develop training products for the JAG Corps and the Army. Madrigal possessed an active security clearance and previously served overseas on sensitive operations.
In early 2022, Madrigal was under investigation by the U.S. Army and the JAG School for failing to report a previous arrest for driving under the influence (DUI). While his Army investigation was pending, Madrigal deleted, without authorization, online JAG training materials and filmed himself doing so while graphically describing his ill-will towards the Army. The FBI’s investigation also revealed that Madrigal made a phone call to the Russian embassy in Washington, DC the same night that he deleted the training materials and then texted a witness that Russia wanted to know what he knew.
On February 22, 2022, Madrigal was discharged from the JAG School and claimed in his exit paperwork that he had no unreported contact with a foreign national. In April and May 2022, Madrigal was interviewed by the FBI about his actions. In these interviews, Madrigal made multiple false statements regarding his actions, including denying any involvement in the deletion of materials and that he only learned of the deletion from a coworker, as well as falsely denying his contact with a foreign national at the Embassy.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, made the announcement.
The Federal Bureau of Investigation, U.S. Army Counterintelligence Command, and the United States Army investigated the case.
Special Assistant U.S. Attorney Jessica Joyce and Assistant U.S. Attorneys Katie Burroughs Medearis, Vito A. Iaia, and Sean M. Welsh and are prosecuting the case for the United States.
Florida Telecommunications and Information Technology Worker Charged with Acting as Agent of PRC GovernmentRead the Press Release
Tampa, FL – An indictment was unsealed today charging Ping Li, 59, of Wesley Chapel, Florida, with conspiring to act as an agent of the People’s Republic of China (PRC) without notification to the Attorney General and with acting as an agent of the PRC without notification to the Attorney General. If convicted, Li faces a maximum penalty of 15 years in prison.
According to the court documents, the PRC’s Ministry of State Security (MSS) is in charge of civilian intelligence collection for the PRC. The MSS often uses “cooperative contacts” located in countries outside of the PRC in furtherance of their intelligence goals, which include obtaining information concerning foreign corporate or industrial matters, foreign politicians or intelligence officers and information concerning PRC political dissidents residing in those countries. These cooperative contacts assist the MSS in a variety of ways, including by conducting research on topics of interest to the PRC that can be used to further the MSS’ mission.
The indictment alleges that Li was a U.S. citizen who immigrated to the United States from the PRC. At various times, Li worked for a major U.S. telecommunications company and an international information technology company.
From as early as 2012, Li allegedly served as a cooperative contact working at the direction of officers of the MSS to obtain information of interest to the PRC government. Li obtained a wide variety information at the request of the MSS, including information concerning Chinese dissidents and pro-democracy advocates, members of the Falun Gong religious movement, and U.S.-based non-governmental organizations, and to report that information to the MSS. Li also provided the MSS with information obtained from his employer. Li used a variety of anonymous online accounts for the purpose of communicating with the MSS, and traveled to the PRC to meet with the MSS.
For example, according to the indictment, in August 2012, an MSS officer requested that Li provide information about practitioners of Falun Gong and pro-democracy advocates in the United States. Falun Gong, also known as Falun Dafa, is a religious movement that originated in the PRC in the 1990s. Falun Gong is not one of the five religions formally recognized by the PRC government, and it has been banned since 1999. Its adherents both in China and abroad are of particular interest to the PRC government because of Falun Gong’s advocacy of ideas deemed subversive to the PRC government. Less than a week after receiving this request, Li sent the name and biographical information of an individual affiliated with Falun Gong residing in St. Petersburg, Florida.
In March 2015, an MSS officer requested information from Li about branch offices that Li’s employer, a major U.S. telecommunications company, had opened in the PRC. Li responded with the requested information three weeks later.
In March 2017, an MSS officer requested a training instruction plan from Li. In April 2017, Li responded indicating that he had uploaded materials to an online account that he shared with the MSS officer and asked the MSS officer to delete the materials after reading them.
In May 2021, an MSS officer requested information from Li concerning hacking events targeting U.S. companies, including a widely publicized hacking of a major U.S. company by the Chinese government. Within four days, Li responded with the requested information.
In March 2022, an MSS officer requested from Li information concerning Li’s new employer, an international information technology company, as well as materials relating to cybersecurity training. That same day, Li sent the requested information about his employer as well as materials relating to cybersecurity training.
In June 2022, an MSS officer requested from Li information concerning an individual who, according to the officer, had resided in the PRC but fled to the United States, and the name and suspected residential address in the United States of that individual. That same day, Li responded with information about the owners of that residential address.
Assistant Attorney General Matthew G. Olsen of the National Security Division, Executive Assistant Director Robert Wells of the FBI’s National Security Branch and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorneys Daniel J. Marcet and Karyna Valdes for the Middle District of Florida and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Florida Telecommunications and Information Technology Worker Charged with Acting as Agent of PRC GovernmentRead the Press Release
An indictment was unsealed today charging Ping Li, 59, of Wesley Chapel, Florida, with conspiring to act as an agent of the People’s Republic of China (PRC) without notification to the Attorney General and with acting as an agent of the PRC without notification to the Attorney General. If convicted, Li faces a maximum penalty of 15 years in prison.
According to the court documents, the PRC’s Ministry of State Security (MSS) is in charge of civilian intelligence collection for the PRC. The MSS often uses “cooperative contacts” located in countries outside of the PRC in furtherance of their intelligence goals, which include obtaining information concerning foreign corporate or industrial matters, foreign politicians or intelligence officers and information concerning PRC political dissidents residing in those countries. These cooperative contacts assist the MSS in a variety of ways, including by conducting research on topics of interest to the PRC that can be used to further the MSS’ mission.
The indictment alleges that Li was a U.S. citizen who immigrated to the United States from the PRC. At various times, Li worked for a major U.S. telecommunications company and an international information technology company.
From as early as 2012, Li allegedly served as a cooperative contact working at the direction of officers of the MSS to obtain information of interest to the PRC government. Li obtained a wide variety information at the request of the MSS, including information concerning Chinese dissidents and pro-democracy advocates, members of the Falun Gong religious movement, and U.S.-based non-governmental organizations, and to report that information to the MSS. Li also provided the MSS with information obtained from his employer. Li used a variety of anonymous online accounts for the purpose of communicating with the MSS, and traveled to the PRC to meet with the MSS.
For example, according to the indictment, in August 2012, an MSS officer requested that Li provide information about practitioners of Falun Gong and pro-democracy advocates in the United States. Falun Gong, also known as Falun Dafa, is a religious movement that originated in the PRC in the 1990s. Falun Gong is not one of the five religions formally recognized by the PRC government, and it has been banned since 1999. Its adherents both in China and abroad are of particular interest to the PRC government because of Falun Gong’s advocacy of ideas deemed subversive to the PRC government. Less than a week after receiving this request, Li sent the name and biographical information of an individual affiliated with Falun Gong residing in St. Petersburg, Florida.
In March 2015, an MSS officer requested information from Li about branch offices that Li’s employer, a major U.S. telecommunications company, had opened in the PRC. Li responded with the requested information three weeks later.
In March 2017, an MSS officer requested a training instruction plan from Li. In April 2017, Li responded indicating that he had uploaded materials to an online account that he shared with the MSS officer and asked the MSS officer to delete the materials after reading them.
In May 2021, an MSS officer requested information from Li concerning hacking events targeting U.S. companies, including a widely publicized hacking of a major U.S. company by the Chinese government. Within four days, Li responded with the requested information.
In March 2022, an MSS officer requested from Li information concerning Li’s new employer, an international information technology company, as well as materials relating to cybersecurity training. That same day, Li sent the requested information about his employer as well as materials relating to cybersecurity training.
In June 2022, an MSS officer requested from Li information concerning an individual who, according to the officer, had resided in the PRC but fled to the United States, and the name and suspected residential address in the United States of that individual. That same day, Li responded with information about the owners of that residential address.
Assistant Attorney General Matthew G. Olsen of the National Security Division, Executive Assistant Director Robert Wells of the FBI’s National Security Branch and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorneys Daniel J. Marcet and Karyna Valdes for the Middle District of Florida and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Pleads Guilty to Health Care Fraud ViolationsRead the Press Release
BOSTON – A Florida man pleaded guilty yesterday in federal court in Boston in connection with a scheme to defraud insurance providers for physical therapy services that were not provided to patients.
Jeffrey MacEachron, 60, pleaded guilty to an Information charging him with one count of health care fraud; aiding and abetting. U.S. District Court Judge Indira Talwani scheduled sentencing for Oct. 17, 2024.
MacEachron owned and managed PT4U, Inc., a business that operated physical therapy clinics in Bedford and Lexington, Mass. According to the charging documents, from 2013 through 2021, MacEachron caused insurance companies and TRICARE to reimburse PT4U for physical therapy services that were not actually performed. Specifically, MacEachron edited claim forms to add units of service beyond those actually performed and then submitted them to insurance companies and TRICARE for payment.
The charge of health care fraud; aiding and abetting provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Chris Averill, Special Agent in Charge of the Air Force, Office of Special Investigations; Brian J. Solecki, Special Agent in Charge of the Defense Criminal Investigative Service; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys James D. Herbert and Christopher Looney are prosecuting the case.
Federal Grand Jury Returns Indictment in Connection with Shooting at Gas Station Near Walmart in MonroeRead the Press Release
MONROE, La. – United States Attorney Brandon B. Brown announced that a federal grand jury has returned an indictment charging a Monroe man with firearm charges in connection with a shooting that took place earlier this year in Monroe, Louisiana.
Tristan Barber, 20, of Monroe, Louisiana, has been indicted and charged with two counts of possession of firearms by a convicted felon, and two counts of illegal possession of a machine gun. The indictment alleges that on or about March 29, 2024, and again on April 16, 2024, Barber knowingly possessed a Glock Model 22 Gen 3, .40 caliber pistol and ammunition, knowing he had previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
It is further alleged in the indictment that on or about March 29, 2024, and again on April 16, 2024, Barber knowingly possessed a machine gun equipped with a conversion device.
“Our investigation has determined that this defendant, a convicted felon, is a very dangerous individual and has no respect for the law,” said U.S. Attorney Brandon B. Brown. “As I have stated previously, we will aggressively charge and prosecute individuals that possess these firearms that are modified with switches and conversion devices. Thanks to our state and local partners for a thorough investigation and apprehending this defendant.”
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
If convicted, Barber faces a sentence of up to 15 years in prison for possession of firearm or ammunition by a convicted felon, and up to 10 years for illegal possession of a machine gun, as well as up to 3 years of supervised release, and a fine of up to $250,000.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Monroe Police Department and is being prosecuted by Special Assistant United States Attorney Catherine Semmes and Trial Attorney Christopher Usher of the Department of Justice, Violent Crime and Racketeering Section.
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Erie Resident Pleads Guilty to Distributing and Attempting to Distribute Materials Depicting the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of distributing and attempting to distribute material depicting the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
Michael Paul Ambrose, 43, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that in and around November 2022, Ambrose distributed and attempted to distribute images depicting prepubescent minors engaging in sexually explicit conduct. The Court was also advised that the parties agreed as part of the plea agreement that the appropriate sentence in this case is a twelve-year term of imprisonment, to be followed by 10 years of supervised release.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Baxter scheduled sentencing for December 17, 2024, at 11:00 a.m. The law provides for a maximum total sentence of not less than five years and up to 20 years in prison, a fine of $250,000, 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.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Erie Police Department and the Erie County Detectives Bureau conducted the investigation that led to the prosecution of Ambrose.
Drug Dealers Who Mailed Fentanyl from Phoenix to Sioux City Sentenced to More Than 15 years in Federal PrisonRead the Press Release
Aki Awou, age 33, from Omaha, Nebraska, was found guilty by a jury on March 1, 2024, of conspiracy to distribute fentanyl, and two counts of possession with intent to distribute fentanyl. His brother, Karom Bol, age 20, of Sioux City, pled guilty on February 21, 2024, to five related counts: conspiracy to distribute fentanyl, two counts of possession with intent to distribute fentanyl, possession of firearms by a drug user, and possession of a firearm during and in furtherance of a drug trafficking crime.
Evidence in the case revealed that the two were gang members and between January 2022 and May 2022, Awou, traveled to the Phoenix, Arizona area, where he would mail packages containing thousands of fentanyl pills disguised as oxycodone to Bol’s address’ in Sioux City, Iowa. The Omaha Police Department’s Gang Intelligence Unit utilized a GPS tracker on Awou’s vehicle to pinpoint Awou’s travels and package mailing activities, including his shipment of fentanyl to addresses in Sioux City from post offices in Arizona. Postal Inspectors were able to intercept a package and conduct a controlled delivery with assistance from the DEA and the Sioux City Police Department, at one of the Sioux City addresses. Afterwards, law enforcement executed a search warrant. During the search warrant, Bol was observed throwing firearms out a second story bedroom window. Agents identified a second Sioux City location tied to Bol and Awou, and obtained a second search warrant for that residence. Additional evidence, including illegal pills, was found at that location.
Postal Inspectors later received notice of another package being sent from Arizona to the address in Sioux City and were able to intercept and search that package, revealing that it also contained thousands of fentanyl pills disguised as oxycodone. Awou’s fingerprints were on three packages used as evidence in the case and Bol’s palm print was located on the package used during the controlled delivery. In total, Bol and Awou were responsible for nearly two pounds of fentanyl pills disguised as oxycodone.
Awou was sentenced on July 24, 2024, in Sioux City by United States District Court Judge Leonard T. Strand to 192 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Bol was sentenced July 10, 2024, in Sioux City by United States District Court Judge Leonard T. Strand to 180 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
United States Attorney Timothy Duax stated, “Fentanyl is an incredibly dangerous illegal drug, and when people like Awou and Bol bring fentanyl to our community, they place our citizens at risk of serious harm and death. Accordingly, we are grateful for the hard work and cooperation of federal and state law enforcement agencies in stopping these individuals and sending a clear message that fentanyl traffickers will be caught and severely punished in the Northern District of Iowa.”
Awou and Bol are being held in the United States Marshal’s custody until they can be transported to a federal prison.
This case was investigated by the Omaha, Nebraska Police Department, Sioux City, Iowa Police Department, United States Postal Inspector, DEA Tri-State Drug Task Force, Lancaster County, Nebraska Sheriff’s Department, and the ATF. The case was prosecuted by Assistant United States Attorneys Ron Timmons, Shawn Wehde, and Patrick Greenwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4051.
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Dozens charged in fraud schemes linked to Harris County bail bondsRead the Press Release
HOUSTON – A total of 53 Houston-area residents have been indicted for participating in wire fraud schemes related to the use of falsified documents to obtain bail bonds for individuals charged with criminal offenses, announced U.S. Attorney Alamdar S. Hamdani.
Of those charged, 50 are now in custody, some of whom will make their initial appearances before U.S. Magistrate Judge Christina A. Bryan at 10 a.m. or 2 p.m. July 25.
The remaining three are considered fugitives and warrants remain outstanding for their arrests – Tawana Jones, 44, Houston; Pamela Yoder, 60, Detroit, Michigan; and Amir Khan, 60, Pakistan. Anyone with information about their whereabouts is asked to contact the Houston FBI at 713-693-5000.
According to the indictment, returned July 16 and unsealed upon the arrests, employees of AABLE Bonds, a bail bonds company located in Houston, conspired with others to falsify and obtain falsified co-signer financial reports. This was allegedly done to qualify individuals charged with criminal offenses who would not otherwise qualify for what was necessary to meet the terms of their bond.
“An integral part of the criminal justice system, as old as the system itself, is the bail bond - a device that allows defendants temporary release while awaiting trial by guaranteeing future court appearances,” said Hamdani. “Honesty in the underwriting of those bail bonds is essential to ensuring compliance and protecting the community. However, this indictment alleges employees of AABLE Bonds and many others conspired to violate that trust. Today’s arrests and charges are the culmination of a multi-year, multi-agency and multi-jurisdictional effort to help protect the integrity of the bail bond system in Harris County.”
“This investigation exposing alleged fraud within the bail bond industry is the first of its kind and the result of a 24-month long FBI Houston-led operation into a colossal bail bond scheme operating out of Harris County,” said FBI Houston Special Agent in Charge Douglas Williams. “By allegedly falsifying financial reports related to bail bonds, the accused individuals secured their release back onto the streets of our community through an illicit revolving door within the bond system.”
“Utilizing the bail bond system in a fraudulent manner to allow the release of criminals is unacceptable. We are proud to have joined with our local, state and federal partners in getting these individuals off the streets,” said Acting Houston Police Chief Larry J. Satterwhite.
“Our crime analysts proactively launched this investigation to target violent offenders and those that exploit our system. These actions undermine the legal process and pose a threat to public safety. We are committed to working diligently with our partners to root out corruption and ensure that those who engage in such fraudulent activities are held accountable,” said Harris County Sheriff Ed Gonzalez. “Our priority remains the safety and security of Harris County residents, and we will continue to take action against those who seek to be involved in criminal activity.”
The indictment alleges 11 individuals are charged in Harris County with criminal offenses who subsequently obtained bonds based on falsified documents.
Employees of AABLE Bonds, including Mary Brown, 29, and Oscar Wattell, 34, both of Houston, allegedly recruited straw co-signers to represent they were working at companies or had earned incomes. The co-conspirators allegedly falsified this information on financial reports since the co-signers did not work at the companies or earn represented incomes.
Co-conspirators allegedly emailed or submitted the falsified co-signer financial reports via electronic communications. According to the indictment, the government and insurance agencies rely on these financial reports to enter into third-party agreements, known as surety bonds.
Out of 53 co-conspirators, all but one face charges in connection to alleged conspiracies to commit wire fraud.
The CEO of AABLE Bonds and an agent of Financial Casualty & Surety - Sheba Muharib, 58, Missouri City, is charged with allegedly affecting persons engaged in the business of insurance. Muharib allegedly knew Wattell had a criminal felony conviction involving dishonesty while engaging in the business of insurance.
If convicted, each face up to 20 years in federal prison and a possible $250,000 maximum fine for the wire fraud and conspiracy to commit wire fraud charges. Muharib could receive up to five years in prison and a $250,000 possible fine upon his conviction.
The FBI, Houston Police Department and Harris County Sheriff’s Office conducted the investigation with the assistance of Texas Department of Public Safety and U.S. Marshals Service. Assistant U.S. Attorneys Michael Day and Colton Turner are prosecuting the case.
Dominican National Sentenced to More Than 4 Years in Prison for Trafficking Fentanyl Pills and Crystal MethRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that AURELIA CAROLINA LARA-DIAZ, 30, a citizen of the Dominican Republic last residing in Boston, Massachusetts, was sentenced today by U.S. District Judge Vernon D. Oliver in Hartford to 50 months of imprisonment for trafficking fentanyl and crystal methamphetamine.
According to court documents and statements made in court, a Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force investigation revealed that Lara-Diaz was trafficking fentanyl and methamphetamine. Between November 2022 and January 2023, investigators made controlled purchases of fentanyl pills and crystal methamphetamine from Lara-Diaz. On January 26, 2023, investigators arranged the purchase of 3,000 fentanyl pills and 10 pounds of crystal methamphetamine from Lara-Diaz for a total price of $65,000. Lara-Diaz was arrested after she arrived at a meeting location in Norwalk in possession of the drugs.
Lara-Diaz has been detained since her arrest. On November 8, 2023, she pleaded guilty to possession with intent to distribute, and distribution of, fentanyl and methamphetamine,
Lara-Diaz, who was removed from the U.S. to the Dominican Republic in 2019, again faces immigration proceedings when she completes her prison term.
This matter was investigated by the DEA’s Bridgeport HIDTA Task Force, which includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford, and Danbury Police Departments. The case was prosecuted by Assistant U.S. Attorney Karen L. Peck.
Columbia County man sentenced to federal prison for bilking customers for purchase of cryptocurrency computersRead the Press Release
AUGUSTA, GA: A Columbia County man has been sentenced to federal prison after pleading guilty in a scheme to sell expensive computer equipment to more than 40 customers who never received their orders.
Steven Drawdy, 40, of Grovetown, Ga., was sentenced to 32 months in prison after pleading guilty to Wire Fraud, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge J. Randal Hall also ordered Drawdy to pay restitution totaling more than $1.1 million and to serve three years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Steven Drawdy ripped off dozens of people by preying on their desire to make money in the complex world of cryptocurrency,” said U.S. Attorney Steinberg. “Our law enforcement partners did exceptional work in identifying and shutting down this scheme.”
As described in court documents and testimony, from about August 2021 through April 2022, Drawdy participated in an online cryptocurrency discussion forum, and received more than $1.1 million from at least 42 victims who believed they were paying Drawdy to provide them with cryptocurrency “mining” computers.
Instead of delivering the computers, however, Drawdy would pocket the payments and eventually cease communicating with the customers. In some cases, he would offer a partial refund but would require the customer to pay a “processing fee” to receive the refund – and then would provide neither the refund nor the computer while discontinuing all communications with the customer.
“While using the latest in technology as his hook to attack victims, Drawdy’s actions were nothing more than old-fashioned fraud,” said FBI Atlanta Assistant Special Agent in Charge Brian Ozden. “The FBI will continue to go after criminals doing any type of fraud and seek to hold them accountable.”
The case was investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorney Jennifer A. Stanley.
Colorado Man Sentenced to 240 Months in PrisonRead the Press Release
HAMMOND – Kyle L. Miotke, 22 years old, of Englewood, Colorado, was sentenced by United States District Court Judge Gretchen S. Lund after pleading guilty to Production of Child Pornography, announced United States Attorney Clifford D. Johnson.
Miotke was sentenced to 240 months in prison, followed by 15 years of supervised release.
According to documents in the case, on multiple occasions between October 18, 2021, and June 15, 2022, Miotke produced sexually explicit images of a minor by employing, using, and inducing the minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct.
This case was investigated by the Federal Bureau of Investigation, Indianapolis Field Office/Lafayette Resident Agency, with assistance from the Lafayette Police Department, the Tippecanoe County High Tech Crime Unit, and the Tippecanoe County Prosecutor’s Office. The case was prosecuted by Assistant United States Attorney Emily Morgan.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Cherokee County Resident Sentenced for Federal Drug ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Andrea Dawn Winsett, age 34, of Park Hill, Oklahoma, was sentenced to 24 months imprisonment for Possession with Intent to Distribute Methamphetamine.
The charge arose from an investigation by the Drug Enforcement Administration, the Oklahoma Highway Patrol, and the Cherokee County Sheriff’s Office.
On February 6, 2024, Winsett pleaded guilty to the drug distribution charge. According to investigators, on March 7, 2023, Winsett was arrested for driving under the influence and booked into the Cherokee County Jail. During the booking process, Winsett was found in possession of 14.75 grams of actual methamphetamine that she intended to distribute.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the sentencing hearing. Winsett will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney T. Cameron McEwen represented the United States.
Burlington County Man Sentenced to 60 Months in Prison for Cocaine DistributionRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 60 months in prison for his role in a drug trafficking conspiracy to distribute more than two kilograms of cocaine in Burlington and Camden counties in New Jersey and Philadelphia, Pennsylvania, U.S. Attorney Philip R. Sellinger announced.
Orlando Ayala, 30, of Westampton, New Jersey, pleaded guilty on March 21, 2024, before U.S. District Judge Karen M. Williams to a two-count information charging him with conspiracy to distribute and possess with intent to distribute cocaine, and with possessing with intent to distribute cocaine. Judge Williams imposed the sentence today in Camden federal court. Ayala’s conspirator, Angel Correa, pleaded guilty before Judge Williams and is awaiting sentencing.
According to documents filed in this case and statements made in court:
From February 2022 to January 10, 2023, Ayala conspired with Correa and others to distribute substantial quantities of cocaine. Ayala and Correa together sold more than one kilogram of cocaine during drug deals in 2022. On Jan. 10, 2023, they together picked up a package containing cocaine that had been mailed to a house in Philadelphia and drove the package to Correa’s residence in Camden. Law enforcement agents then searched Correa’s residence and recovered one kilogram of cocaine and two firearms located within several feet of the cocaine.
In addition to the prison term, Judge Williams sentenced Ayala to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the FBI - Philadelphia Field Office, U.S. Postal Inspection Service -Philadelphia Division, Willingboro Police Department, Burlington Township Police Department, Atlantic City Police Department, and Philadelphia Police Department.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
Brooklyn Man Convicted of Money Laundering Scheme in Connection with Theft of Millions of Dollars from Foreign BanksRead the Press Release
A federal jury in Brooklyn today convicted Alex Levin on both counts of an indictment charging him with conspiracy to commit money laundering and conspiracy to violate the Travel Act in connection with his role in a scheme that resulted in the theft of millions of dollars and property from safe deposit boxes at multiple banks outside of the United States, including in Ukraine, Russia, North Macedonia, Moldova, Latvia, Uzbekistan and Azerbaijan. The verdict followed a seven-day trial before United States District Judge LaShann DeArcy Hall. When sentenced, Levin faces up to 10 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“The jury found that Levin played an integral role in a highly sophisticated and well-organized international crew of thieves who stole millions of dollars’ worth of jewelry and cash from banks in Eastern Europe,” stated United States Attorney Peace. “Levin’s role here in Brooklyn of laundering the cash and purchasing equipment used in the break-ins of safe deposit boxes overseas was crucial to the crew’s success, but with today’s verdict, that role proved to be the defendant’s undoing.”
Mr. Peace also thanked the U.S. Customs and Border Protection for their valuable assistance to the investigation.
“Alex Levin’s conviction signals the downfall of an individual at the center of an international crime spree that utilized technology and illicit methodologies to exploit vulnerabilities within financial institutions around the world. Today’s verdict proves once again that even the most sophisticated bank heists are no match for HSI New York and our law enforcement partners, both domestic and abroad,” stated HSI New York Special Agent-in-Charge Arvelo. “I commend the Long Island-based HSI Financial Crimes Group, the Eastern District of New York and the FBI for consistently proving no criminal is too savvy to evade justice.”
FBI Acting Assistant Director in Charge Curtis stated: “Using sophisticated camera tools that he purchased here in Brooklyn, Levin and his international co-conspirators stole from safe deposit boxes belonging to innocent bank customers through a string of thefts across the globe. Today’s verdict is demonstrative of the FBI’s commitment to holding people accountable for their attempts to unlawfully obtain money and valuable items, and we applaud the investigative efforts of our office as well as our partners at the U.S. Attorney’s office in delivering this outcome.”
As proved at trial, between March 2015 and October 2019, Levin was a member of a sophisticated group that targeted foreign banks that appeared to lack strong security features. Members of the conspiracy posed as customers at the target banks and rented safe deposit boxes. After gaining access to safe deposit box rooms, the conspirators used specialized medical equipment to take photographs of the inside of the locks of other customers’ safe deposit boxes. Using these photographs, the conspirators created duplicate keys for the safe deposit boxes in order to steal money and valuables from customers at the foreign banks.
Levin’s role in the conspiracy was based in Brooklyn. He assisted in laundering the proceeds of the scheme to the United States. For example, around the time of various bank heists in Ukraine, a company used in furtherance of the unlawful scheme wired the unlawful proceeds to the defendant. Specifically, on July 31, 2015, Glenport Merchants LLP, a company with a Latvian bank account, wired $150,000 to Levin. Shortly thereafter, Levin wired $144,727 to a member of the conspiracy who personally participated in the bank heists.
Levin also used bank accounts in the United States, including accounts located in the Eastern District of New York, to purchase sophisticated camera equipment used in the thefts, including borescopes, which are small, specialized, medical grade cameras.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level money launderers and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Lorena Michelen, Lauren A. Bowman and Megan Larkin are in charge of the prosecution, with the assistance of Paralegal Specialist Wesley Roberts.
The Defendant:
ALEX LEVIN
Age: 55
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-208 (LDH)
British Man Admits Possessing Child Pornography and Traveling with Intent to Engage in Illicit Sexual ConductRead the Press Release
NEWARK, N.J. – A British citizen today admitted possessing multiple images of child sexual abuse and traveling with the intent to engage in illicit sexual conduct, U.S. Attorney Philip R. Sellinger announced.
Stephen Hudson, 53, of Ealing, England, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with possession of child pornography and travel with intent to engage in illicit sexual conduct.
According to documents filed in this case and statements made in court:
From April 14, 2022, to May 6, 2022, Hudson used an encrypted email account to communicate with federal law enforcement, acting in an undercover capacity, to facilitate his access to and sexual abuse of two minor female children. Hudson agreed to travel from Massachusetts to New Jersey and pay approximately $1,200 in cash in exchange for, among other things: engaging in sexual acts with 11- and 12-year-old girls; supplying Hudson with illicit drugs; and administering the illicit drugs and alcohol to the 11- and 12-year-old girls. On May 6, 2022, Hudson traveled to an agreed-upon location in New Jersey for the purpose of engaging in sexual activity with the two minors and provided approximately $1,200 in cash to the undercover law enforcement agents as previously agreed. After providing the cash to law enforcement, Hudson was arrested.
A subsequent search of a laptop computer belonging to Hudson revealed 1,751 images depicting child sexual abuse, including material portraying prepubescent minor or minors who had not attained the age of 12 years and material portraying the sexual abuse and exploitation of infants and toddlers.
The charge of possession of child pornography carries a statutory maximum of 20 years in prison, and a $250,000 fine.
The charge of interstate travel with the intent to engage in illicit sexual conduct carries a maximum statutory penalty of 30 years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Sean Nadel of the General Crimes Unit in Newark.
hudson.information.pdfBradenton Drug Trafficker Sentenced to 30 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge William Jung has sentenced Pierre C. Marc (37, Bradenton) to 30 years in federal prison for conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine, 400 grams or more of fentanyl, marijuana, and heroin, and possessing with the intent to distribute marijuana and 40 grams or more of fentanyl. Marc was found guilty by a jury after trial on April 9, 2024.
According to court documents and evidence presented at trial, Marc was a major drug distributer in the Middle District of Florida. During the trial, a witness testified that Marc supplied him with an ounce of fentanyl and one to two kilograms of cocaine every week between January and September 2019 for distribution in Pinellas County. In 2021, Marc arrived at a controlled delivery of fentanyl with more than 300 grams of fentanyl and a firearm. Another witness testified that in 2020 and 2021, Marc supplied him with three to five kilograms of fentanyl for distribution in Manatee County.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Petersburg Police Department, and the Manatee County Sheriff’s Office. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
Boston Man Sentenced to over 11 Years in Prison for Trafficking a Minor Victim in Three StatesRead the Press Release
BOSTON – A Boston man was sentenced today in federal court for transporting a minor to New York and Connecticut to engage in commercial sex.
Leon Blount III, 31, was sentenced by U.S. District Judge Allison D. Burroughs to 136 months in prison, followed by five years of supervised release. The court also ordered Blount to pay restitution to victims totaling $214,500. In January 2024, Blount pleaded guilty to three counts of transportation of minor with intent to engage in criminal sexual activity. He has been in custody since September 2022.
“Human trafficking is not just a horrific crime; it is a profound violation of human dignity. The unimaginable harm inflicted upon the minor victim here is far too prevalent in our communities,” said Acting United States Attorney Joshua S. Levy. “Our Civil Rights Unit & Human Trafficking Unit, established less than two years ago, remains committed to bringing traffickers to justice, providing unwavering support to survivors and relentlessly pursuing those who exploit the most vulnerable.”
“Blount found a young woman in a vulnerable situation and lured her far from home into a dangerous and exploitative lifestyle for his financial benefit. Today’s sentence means Blount is now facing over a decade in federal prison and he’ll be off the streets and out of the community where he caused so much harm,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “We hope this significant sentence brings a measure of justice to those he victimized. Human traffickers use isolation, threats, and financial exploitation to control their victims, making it incredibly difficult to leave – but there is hope and there is help available. We are grateful to the law enforcement and victim support services who worked together to bring this case to a close.”
Between July and August 2022, Blount transported a 17-year-old victim, Jane Doe 2, from Massachusetts to New York and Connecticut to engage in commercial sex for his financial benefit. Blount met Jane Doe 2 while she was living at a Massachusetts group home for transitional age adolescents. He gave her alcohol and marijuana, and quickly recruited Jane Doe 2 to travel out-of-state to engage in commercial sex. While in New York, Blount directed Jane Doe 2 to solicit sex buyers in an area that is known for commercial sex. Throughout this period, Blount stayed in close contact with Jane Doe 2, using text messages to ensure that she continued to perform sex acts when he was not physically present. To attract more sex buyers, Blount caused Jane Doe 2’s photo to be posted on websites that advertise commercial sex. He then put Jane Doe 2 in hotel rooms in Woburn, Mass. and Hartford, Conn. where he directed her to perform sex acts with buyers to earn even more money for him. During this period, Jane Doe 2 was afraid of Blount, having seen him laugh at another trafficker who used violence against one of that trafficker’s victims.
If you or someone you know may be impacted or experiencing commercial sex trafficking please visit https://polarisproject.org/ for information and resources.
Acting U.S. Attorney Levy and HSI SAC Krol made the announcement today. Assistant U.S. Attorney Brian A. Fogerty of the Civil Rights & Human Trafficking Unit prosecuted the case.
Boston Man Sentenced to More Than 11 Years in Prison for Sex Trafficking a MinorRead the Press Release
BOSTON – A Boston man was sentenced on July 22nd in federal court in Boston for trafficking a minor for sex and persuading and coercing multiple women to travel across state lines to engage in prostitution.
Jimall Dawn Brown, 35, was sentenced by U.S. District Court Judge Leo T. Sorokin to 135 months in prison to be followed by five years of supervised release. In April 2024, Brown pleaded guilty to one count of sex trafficking of a minor; one count of transporting an individual in interstate commerce with the intent that they engage in prostitution; and two counts of persuading and coercing an individual to travel in interstate commerce to engage in prostitution.
“Sex trafficking, especially of minors, is a huge public safety issue that is happening far too often in our society. Mr. Brown coerced young girls with false promises to get them to travel to Massachusetts so he could sell their bodies and pocket the money,” said Acting United States Attorney Joshua S. Levy. “No one, especially no child, should have to fear this type of horrific conduct, and our office and our state and federal partners will not rest while human trafficking remains such a pernicious and destructive problem in our society.”
“Jimall Brown exploited, trafficked and abused three young women, including a child, for his own financial gain. It was imperative FBI Boston’s Child Exploitation – Human Trafficking Task Force swiftly take him “off the street,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Unequivocally, our communities are safer with Brown behind bars, locked away where he can’t victimize anyone else.
In 2022, Brown trafficked a 17-year-old, identified as Victim 1, to engage in commercial sex acts. He first met the victim, who was living outside Massachusetts, on social media and convinced her to fly to Boston, with promises of a “better lifestyle.” Brown posted advertisements of Victim 1 online and arranged “dates” for Victim 1 to have sex in exchange for money. Brown set the pricing for the commercial sex acts she engaged in, for which he collected all of the money. Brown transported Victim 1 to Georgia and later to Nevada, again arranging for her to engage in commercial sex in those locations and keeping all the money.
In March 2019, Brown persuaded and coerced another woman, identified as Victim 2, to travel from Connecticut to Massachusetts to engage in prostitution. He met her in Connecticut and told her that she had potential and that he could provide a better, luxurious life for her if she would come to Boston, where he lived. Victim 2 came to Massachusetts and Brown posted online advertisements containing photos of Victim 2 on commercial sex websites. Victim 2 engaged in commercial sex and was required to give all the money she made to Brown.
In May 2016, Brown persuaded and coerced a different woman, identified as Victim 3, to travel from Pennsylvania to Massachusetts to engage in prostitution. He contacted Victim 3 on social media, told her that she was beautiful, that he had a modeling agency and that he wanted to work with her. Brown said he would pay for her plane ticket to fly to Boston and provide everything for her once she arrived. Victim 3 traveled by plane from Pennsylvania to Massachusetts. After she arrived, Brown took photos of her, purportedly for modeling, but instead he posted them on websites advertising commercial sex. Brown then coerced and forced Victim 3 to engage in commercial sex in Massachusetts and required her to give him all the money.
If you or someone you know may be impacted by commercial sex trafficking please contact [email protected].
Acting U.S. Attorney Levy; FBI SAC Cohen; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office; the Massachusetts State Police; and the Arlington and Randolph Police Departments. Assistant U.S. Attorney Torey B. Cummings of the Civil Rights & Human Trafficking Unit prosecuted the case.
Bayard Man Sentenced for Falsification of Union Financial ReportsRead the Press Release
United States Attorney Susan Lehr announced that Donald Fox, 55, of Bayard, Nebraska, was sentenced on July 24, 2024 in federal court in Lincoln, Nebraska for four counts of falsification of annual financial reports filed by a labor union. Senior United States District Judge John M. Gerrard sentenced Fox to four years of probation. Fox will also have to serve five weekends in jail. Fox has also been ordered to pay $14,874.05 in restitution to the National Association of Letter Carriers Branch 1836. Prior to sentencing, Fox paid $9,746.07 in restitution back to the union.
Fox served as the secretary and treasurer for the National Association of Letter Carriers Branch 1836 union out of Scottsbluff, Nebraska, from 2001 until he resigned in June 2021. Federal law requires that a labor union secretary annually file an accounting statement with the Department of Labor documenting annual losses, assets, liabilities, receipts, and disbursements. Between 2016 and 2020, Fox used union funds for personal expenses totaling $24,620.12. The embezzlement came to light in 2021 when other union members noticed union funds being used for expenses that were not approved by the union, and that were not union-related purchases. Fox admitted that he used union funds for personal expenses, and admitted that he hid his embezzlement in part by filing false annual accounting statements that did not account for his unauthorized use of union funds. He admitted to not filing the annual accounting statement in 2020 to continue concealing his misappropriation of union funds.
“There are consequences for individuals who breach the trust placed in them to be good stewards of union funds. Don Fox embezzled $24,620 from National Association of Letter Carriers Branch 1836 that should have been used for its members’ benefit,” said Christiane Abendroth, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “OLMS is committed to hold accountable anyone who unlawfully exploits their position for financial gain at the expense of their fellow union members.”
This case was investigated by U.S. Department of Labor, Office of Labor-Management Standards.
Atlanta Woman and Madison Man Sentenced for Fentanyl TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that an Atlanta woman and Madison man have been sentenced to federal prison in connection with fentanyl trafficking.
Keyshawna D. Draper, 30, Atlanta, Georgia, was sentenced yesterday by Chief U.S. District Judge James D. Peterson to two and a half years in federal prison for attempting to distribute fentanyl. The prison term will be followed by four years of supervised release. Draper pled guilty to this charge on April 19, 2024.
Jontell C. Shepherd, 28, Madison, Wisconsin, was also sentenced yesterday by Judge . Peterson to just over three and a half years in federal prison for attempting to possess fentanyl intended for distribution. The prison term will be followed by three years of supervised release. Shepherd pled guilty to this charge on January 31, 2024.
On January 26, 2023, law enforcement intercepted two suspicious packages being shipped to the Madison area from Arizona. After obtaining a search warrant, officers opened the packages and inside each, found a stuffed animal containing approximately 2.2 kilograms of counterfeit prescription pills. In total, more than 40,000 pills were seized. Testing found that the pills contained fentanyl. Officers arranged for a controlled delivery of one package and Shepherd and co-defendant Alexis K. Davis were arrested after arriving at the delivery location to pick up the package.
The government’s investigation revealed that co-defendant Brianna M. Reno arranged for Draper to ship the fentanyl pills to Madison from Arizona. On January 25, 2023, Draper travelled from Atlanta to Phoenix where she packaged the pills and mailed them to Reno and Davis in Madison.
At both sentencings, Judge Peterson reflected on the serious harm that fentanyl causes to the community. He noted that the large amount of fentanyl involved in this case was especially concerning.
All four defendants who were charged in this trafficking scheme have pled guilty. On July 10, 2024, Reno was sentenced to seven years in federal prison. Davis will be sentenced on July 25.
The charges against Reno, Shepherd, Davis, and Draper were the result of an investigation conducted by the Drug Enforcement Administration, United States Postal Inspection Service, and the Wisconsin Department of Justice Division of Criminal Investigation. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney William M. Levins prosecuted this case.
Army Officer Sentenced for Theft of Government Property and Ordered to Pay Half a Million DollarsRead the Press Release
RALEIGH, N.C. – Chief Warrant Officer Three (CW3) Christopher Hammond, 38, was sentenced to 36 months for his role in a scheme that resulted in the theft of government property netted him at least $2 million in proceeds. Hammond was also ordered to pay restitution in the amount of $250,000 and forfeit $250,000. Hammond pled guilty to six charges, including theft of government property, wire fraud, money laundering, mail fraud and transportation of stolen goods. He was convicted by a jury on an additional count of money laundering and aiding and abetting.
“We will not tolerate military members stealing from our armed services to line their own pockets,” said U.S. Attorney Michael Easley. “Hammond stole and then sold military scopes, weapons parts, tools, night vision goggles and ATVs meant to support our troops in the fight for freedom. Through his scheme, he had hoped to retire in style. Instead, he will be spending the next three years in prison.”
According to court documents and other information presented in court, CW3 Hammond used his position to requisition government property intended for his unit at then Ft. Bragg, now called Ft. Liberty. The property was never logged into inventory at the base but was instead sold by Hammond to various individuals. In a two-year period, CW3 Hammond received at least $1.8 million in wire transfers and other payments related to the sales, which he deposited into bank accounts controlled by him and his wife. A search warrant executed at Hammond’s home resulted in the seizure of at least 98 firearms, at least 90 military-issued spotting scopes, hundreds of other military-issued firearm accessories and items including night vision goggles and electronic equipment, and more than $100,000 in cash.
The investigation traced about 200 items sold by CW3 Hammond or held in his home as having been issued to Hammond’s military unit. The fraud was uncovered when a supplier noticed that items procured under a government contract were being sent in for warranty repairs by a private individual. Hammond’s wife, Major Heather Hammond, was also charged by the government, but was ultimately acquitted by a jury.
“This sentencing is a result of a joint investigation and Army CID’s commitment to protect the government, the Army, and most importantly, the taxpayer, from those whose actions can erode the trust and confidence in our military and warfighting capability," said Keith K. Kelly, Special Agent-in-Charge, Army Criminal Investigation Division, Fraud Field Office. “Army CID and our law enforcement partners remain committed to hold accountable those who attempt to defraud the government."
“This sentencing sends a stark warning to those who put greed above their sworn duty," stated Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. "DCIS and its investigative partners will continue to hold those accountable who abuse their official positions for personal gain and compromise the military's integrity."
"Everyday service men and women make sacrifices for our country. It is appalling Christopher Hammond stole property his fellow soldiers needed to stay safe to line his own pockets. The FBI is thankful his criminal abuse of power and betrayal didn't go unpunished," said Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. Defense Criminal Investigative Services (DCIS), Department of Army Criminal Investigation Division (CID), and the Federal Bureau of Investigation (FBI) investigated the case and Assistant U.S. Attorney Barbara Kocher and Logan Liles 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. 5:22-CR-00106-BO.
Armed Felon who Fled Police Sentenced to 10 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a felon who fled from police while armed to 10 years in prison.
Antonio Lenarr Williams, 33, of Ferguson, Missouri, pleaded guilty in April to two felony counts of conspiring to possess a weapon by a felon.
He admitted that on May 5, 2021, St. Louis Metropolitan Police Department officers spotted a vehicle in which Williams was driving heading south on Kingshighway Boulevard. Williams was being sought by police in connection with an investigation. After police deployed spike strips, Williams continued driving on deflated tires in midday traffic. He drove erratically, crossing into oncoming traffic and through red lights while trying to escape from officers. After going through the intersection of Kingshighway and Lindell boulevards, Williams jumped out of the vehicle and ran with a loaded semi-automatic pistol in his hand. He threw the gun in a dumpster shortly before his arrest by police, his plea agreement says.
The St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney Michael Hayes 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.
Alleged Car Thief Indicted on Federal Charges Appears in CourtRead the Press Release
CHARLOTTE, N.C. – An alleged car thief facing federal charges appeared before U.S. Magistrate Judge David C. Keesler today for his initial court appearance, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
A criminal indictment charges Terrick D. Lumpkin, 38, of Charlotte, with one count of conspiracy to transport, possess, and sell a stolen vehicle and to remove, obliterate, tamper with, and alter a Vehicle Identification Number (VIN); two counts of possession of a stolen vehicle; and two counts of altering or removing a VIN. The indictment was filed on July 16, 2024, and was unsealed today following Lumpkin’s arrest and court appearance.
The indictment alleges that, between November 2023 and January 2024, Lumpkin engaged in a conspiracy to steal and possess high-end motor vehicles worth more than one million dollars. As alleged in the indictment, Lumpkin and his co-conspirators obtained stolen vehicles from various locations throughout United States, including in Charlotte, North Carolina, Illinois, and New York. It is further alleged that several of the vehicles possessed by Lumpkin were stolen from the Charlotte Douglas International Airport. Lumpkin and others sought to obtain high-end vehicles made by Audi, BMW, Cadillac, Lamborghini and Mercedes, as well as sports utility vehicles, and other expensive models from Chevrolet, Dodge, Ford, GMC, and Jeep.
According to allegations in the indictment, once in possession of the stolen vehicles, Lumpkin and his co-conspirators regularly altered or tampered with the stolen vehicles’ original VINs to avoid detection by law enforcement.
Lumpkin was released on bond following today’s court hearing. The conspiracy charge carries a maximum penalty of five years. Each charge of possession of a stolen vehicle carries a statutory maximum penalty of 10 years in prison. The charge of altering or removing a VIN carries a maximum penalty of five years in prison.
This is the fourth indictment filed in the U.S. District Court in Charlotte related to trafficking in stolen vehicles. In March 2023, two individuals were charged for a scheme that involved buying and selling stolen vehicles. In August 2023, five individuals were indicted for stealing luxury vehicles from dealerships throughout the United States, and two additional individuals were indicted in November 2023, for orchestrating high-end auto thefts from businesses in South Carolina.
U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorneys William Bozin and Daniel Ryan of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Albany Man Pleads Guilty to Drug Trafficking Conspiracy Involving 7 Kilograms of CocaineRead the Press Release
ALBANY, NEW YORK – Brian Scott, age 44, of Albany, pled guilty today to conspiring to distribute and possess with intent to distribute cocaine and marijuana, and to distributing cocaine.
United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
Scott admitted that between June 2020 and October 2023, he was involved in a drug trafficking organization that trafficked cocaine and marijuana in the Capital Region and the North Country. Scott admitted that he and a co-conspirator routinely sent drug couriers, whom they referred to as “horses,” between the Capital Region and the North Country to transport cocaine to the North Country and marijuana to the Capital Region. Scott also admitted that he had obtained at least seven kilograms of cocaine from another co-conspirator and sold over 400 grams of cocaine to another person between May and September 2023.
At sentencing on November 26, 2024, Scott faces at least 10 years and up to life in prison. The judge will also be required to impose a term of post-release supervision of at least 5 years and up to life. Scott has also agreed to forfeit $4,865 in seized drug money and to the entry of a forfeiture money judgment in the amount of $17,180. 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.
FBI, HSI, and the New York State Police investigated the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Joseph Hartunian are prosecuting the case.
Alabama Woman Sentenced to 18 Months’ Imprisonment for COVID-19 Unemployment Insurance Fraud SchemeRead the Press Release
CHATTANOOGA, Tenn. - On July 24, 2024, Meghan Pittman, 29, of Stevenson, Alabama, was sentenced to 18 months’ imprisonment by the Honorable Curtis L. Collier, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Chattanooga. Following her imprisonment, she will be on supervised release for five years.
As part of the plea agreement filed with the court, Pittman pled guilty to wire fraud, in violation of 18 U.S.C. § 1343 for her involvement in a scheme to defraud COVID-19 unemployment programs in several states. In addition, Pittman was ordered to pay $85,011 in restitution to the Pennsylvania and California Departments of Labor, and to forfeit to the United States $85,011 as part of a money judgment.
According to court documents, from June 2020 through June 2021, Pittman conspired with others to devise a scheme in which she defrauded the United States government and the governments of Tennessee, Alabama, Pennsylvania, and California to obtain money from the states’ COVID relief programs in the form of unemployment insurance proceeds funded by the United States government. Specifically, Pittman acquired personal information from others and used it to fraudulently make mass online applications for money earmarked by the states to provide unemployment insurance relief for those affected by the national pandemic. She falsely claimed in the applications that the individuals whose personal information was reflected on the applications worked in those states. The states then mailed debit cards to addresses in the Eastern District of Tennessee, and Pittman would receive a percentage of the payout of the fraudulent claim. The defendant was personally responsible for the fraudulent distribution of over $85,000 of unemployment protection insurance funds. The scheme itself involved the fraudulent distribution of over $550,000 in unemployment protection insurance funds.
United States Attorney Francis M. Hamilton III, of the Eastern District of Tennessee, Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General, and Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation made the announcement.
Assistant United States Attorney Steven Neff represented the United States.
The conviction was the result of an investigation conducted by the Department of Labor Office of Inspector General and the FBI as part of the Smoky Mountains Financial Crimes Task Force.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Admera Health Agrees to Pay over $5 Million to Settle False Claims Act Allegations of Kickbacks to Third Party MarketersRead the Press Release
SACRAMENTO, Calif. – Admera Health LLC has agreed to pay the United States $5,389,648 to resolve allegations that it violated the False Claims Act by paying commissions to third party independent contractor marketers in violation of the Anti-Kickback Statute (AKS). Admera will pay an additional $147,851 to individual states for claims paid to Admera by state Medicaid programs.
Admera is a New Jersey-based company that provides biopharmaceutical research services for health care institutions and provided clinical laboratory testing services to health care providers relating to pharmacogenetics until 2021. Pharmacogenetics analyzes how a patient’s genetic attributes affect their response to therapeutic drugs. The settlement announced today resolves allegations that, from Sept. 1, 2014, through May 21, 2021, Admera made commission-based payments to independent contractor marketers in return for recommending or arranging for the ordering of genetic testing services in violation of the AKS. The AKS prohibits offering or paying remuneration in return for arranging or recommending items or services covered by Medicare and other federally funded programs.
“By entering into kickback arrangements, health care companies can cause providers to make medical decisions that are motivated by financial gain rather than the patient’s best interest,” said U.S. Attorney Phillip A. Talbert. “Our office is committed to ensuring the accountability of participants in the health care system who put their own financial needs ahead of patient welfare.”
“The law prohibits health care providers, including those that provide laboratory services, from paying kickbacks in the form of commissions to third parties as an inducement to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department is committed to holding accountable those who engage in kickback arrangements that undermine the integrity of federal healthcare programs.”
“Kickbacks can negatively influence medical decision making and corrupt the legitimate doctor-patient relationship,” 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 demonstrates HHS-OIG’s commitment to identifying and holding accountable those who allegedly engage in unlawful financial relationships at the expense of Medicare patients and the taxpayer.”
As part of the settlement, Admera has admitted that it made millions of dollars of commission payments to independent-contractor marketers to induce them to arrange for or recommend that health care providers order and refer clinical laboratory services to Admera, including genetic tests, that were reimbursable by Medicare and/or Medicaid, that it paid marketers through arrangements that took into account the volume and value of genetic testing referrals, and that Admera was informed that the payment of commissions to independent contractors did not comply with the AKS but continued to enter into such contracts.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relators, Sunil Wadhwa and Ken Newton, co-founders of Financial Halo LLC/MedXPrime, a former third-party marketer for Admera. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Wadhwa and Newton v. Admera Health, LLC et al (E.D. Cal.). Relators will receive $862,343 of the proceeds from the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Eastern District of California, with substantial investigative assistance from HHS-OIG, the Federal Bureau of Investigation, and the Department of Veterans Affairs, Office of Inspector General. The matter was handled by Assistant U.S. Attorney Colleen Kennedy for the Eastern District of California and Civil Division Fraud Section Trial Attorney Elizabeth J. Kappakas.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
admera_settlement_fully_executed_07.12.24.pdfAdmera Health Agrees to Pay over $5M to Settle False Claims Act Allegations of Kickbacks to Third Party MarketersRead the Press Release
Admera Health LLC (Admera) has agreed to pay the United States $5,389,648 to resolve allegations that it violated the False Claims Act by paying commissions to third party independent contractor marketers in violation of the Anti-Kickback Statute (AKS). Admera will pay an additional $147,851 to individual states for claims paid to Admera by state Medicaid programs.
Admera is a New Jersey-based company that provides biopharmaceutical research services for healthcare institutions and provided clinical laboratory testing services to healthcare providers relating to pharmacogenetics until 2021. Pharmacogenetics analyzes how a patient’s genetic attributes affect their response to therapeutic drugs. The settlement announced today resolves allegations that, from Sept. 1, 2014, through May 21, 2021, Admera made commission-based payments to independent contractor marketers in return for recommending or arranging for the ordering of genetic testing services in violation of the AKS. The AKS prohibits offering or paying remuneration in return for arranging for or recommending items or services covered by Medicare and other federally funded programs.
“The law prohibits health care providers, including those that provide laboratory services, from paying kickbacks in the form of commissions to third parties as an inducement to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who engage in kickback arrangements that undermine the integrity of federal healthcare programs.”
“By entering into kickback arrangements, health care companies can cause providers to make medical decisions that are motivated by financial gain rather than the patient’s best interest,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Our office is committed to ensuring the accountability of participants in the health care system who put their own financial needs ahead of patient welfare.”
“Kickbacks can negatively influence medical decision making and corrupt the legitimate doctor-patient relationship,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement demonstrates HHS-OIG’s commitment to identifying and holding accountable those who allegedly engage in unlawful financial relationships at the expense of Medicare patients and the taxpayer.”
As part of the settlement, Admera has admitted that it made millions of dollars of commission payments to independent-contractor marketers (the Marketers) to induce them to arrange for or recommend that healthcare providers order and refer clinical laboratory services to Admera, including genetic tests, that were reimbursable by Medicare and/or Medicaid, that it paid Marketers through arrangements that took into account the volume and value of genetic testing referrals, and that Admera was informed that the payment of commissions to independent contractors did not comply with the AKS but continued to enter into such contracts.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relators, Sunil Wadhwa and Ken Newton, co-founders of Financial Halo LLC/MedXPrime, a former third-party marketer for Admera. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Wadhwa and Newton v. Admera Health, LLC et al (E.D. Cal.). Relators will receive $862,343 of the proceeds from the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of California, with substantial assistance from HHS-OIG.
Trial Attorney Elizabeth J. Kappakas of the Civil Division’s Fraud Section and Assistant U.S. Attorney Colleen Kennedy for the Eastern District of California handled the matter.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementActivity in the U.S. Attorney's OfficeRead the Press Release
Public Land Offenses
Robert Sherman, 55, of Holladay, Utah, was sentenced on July 23, for two separate cases of disorderly conduct. In the first case he was sentenced to 14 days of incarceration, with credit for the 14 days already served for making threatening statements in the Roosevelt employee dining room inside Yellowstone National Park (YNP). According to court document, on July 5, Sherman was heard by multiple witnesses saying, “the next mass shooting will occur here.” Sherman made this statement just one day after gunman Samson Lucas Bariah Fussner was shot and killed by U.S. Park Rangers after he attempted to shoot at people inside the Canyon Lodge employee dining room.
In the second disorderly conduct charge, Sherman was sentenced to five years of unsupervised probation for making additional threatening statements. According to court documents, on July 7, witnesses said Sherman made several comments along the lines that he would be, “killing people around here.” As part of the terms of his probation, he will have to comply with all federal, state, and local laws; keep contact information current with the court; pay court costs as ordered by the court; and not be permitted to enter YNP during the probation term. U.S. Magistrate Judge Stephanie A. Hambrick imposed the sentence on July 23. This crime was investigated by the National Park Service and the case was prosecuted by Assistant U.S. Attorney Ariel Calmes.
Child Pornography
Alan Dean Houghton, 63, of Casper, Wyoming, was sentenced to 20 years in federal prison with 15 years of supervised release for possession of child pornography, subsequent offense. According to court documents, the Georgia Bureau of Investigation (GBI) initiated a sexual exploitation of children investigation in October 2022. Heather Clark and April Burns were subsequently arrested in May of 2023 for production of child pornography, amongst other charges. Forensic analysis of Clark’s phone revealed that she was selling child pornography to various men around the country. The defendant was identified as having paid Clark $4,700 in multiple payments, over months, for what is believed to be Child Sexual Abuse Material (CSAM) that Clark produced of her children. Houghton was indicted on March 13 and pleaded guilty on April 24. U.S. District Court Judge Alan B. Johnson imposed the sentence on July 22. This crime was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children team. Assistant U.S. Attorney Z. Seth Griswold prosecuted the case.
Sexual Abuse of a Minor
Brian Reyes Rhodes, Jr., 24, of Riverton, Wyoming, was sentenced to 120 months imprisonment with 15 years of supervised release for sexual abuse of a minor. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on July 22. According to court documents, between November 2018 and June 2022, the defendant sexually abused a minor multiple times at his grandfather’s residence. The minor victim eventually disclosed the abuse to a medical provider. Rhodes was indicted in November 2023 and pleaded guilty on April 17. This crime was investigated by the FBI, and the case was prosecuted by Assistant U.S. Attorney Cameron J. Cook.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
23 July 2024
Wright County, Iowa Man to Federal Prison for Illegal Possession of a FirearmRead the Press Release
Michael Dean Hanus, Jr., 45, from Clarion, Iowa, was sentenced on July 22, 2024, to over four years in federal prison. Hanus, Jr. pled guilty on March 11, 2024, to possessing a firearm by a prohibited person. Hanus, Jr. was previously convicted of Interference with Official Acts – Dangerous Weapon, which prohibits a person from possessing a firearm.
Evidence at the plea and sentencing hearings showed that in October 2023, law enforcement in Wright County, Iowa were investigating elder abuse. During the investigation, law enforcement received information that Hanus, Jr. possessed an AR-15 style rifle, at his father’s residence in Humboldt, Iowa, where Hanus, Jr. was living for some time. An agent seized an HDR-15 rifle from Hanus, Jr., and later determined the firearm was stolen. Hanus, Jr. admitted to possession of the firearm, including his knowledge of his previous felony conviction, which prohibited his possession of any firearm. Evidence also showed Hanus had ten previous convictions for assault-based conduct over past 20 years.
Sentencing was held before United States District Court Judge Leonard T. Strand. Hanus, Jr. was sentenced to 52 months’ imprisonment and must serve a three-year term of supervised release following the imprisonment. There is no parole in the federal system. Hanus, Jr. remains in custody of the United States Marshal until he can be transported to a federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Wright County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3043. Follow us on Twitter @USAO_NDIA.
Worcester Man Sentenced to over One Year in Prison for Unlawful Reentry and Passport FraudRead the Press Release
BOSTON - A Worcester man was sentenced on July 19, 2024 for using a stolen identity to apply for a United States passport after he unlawfully reentered the United States following deportation.
Rohan Andrew Brown, 56, was sentenced by U.S. District Court Judge Margaret R. Guzman to 13 months in prison to be followed by 36 months of supervised release. In April 2024, Brown pleaded guilty to one count of unlawful reentry of a deported alien and one count of passport fraud.
Brown, a native of Jamaica, was previously deported in August 2002 after a conviction in Connecticut for unlawful restraint in the first degree. Sometime after his removal, Brown unlawfully reentered the United States. In 2012, Brown unlawfully obtained a passport by using the identity of a United States Citizen. Over the following years, Brown continued to use that stolen identity to obtain drivers licenses in California and Ohio. In March 2022 and May 2023, Brown attempted to renew the passport using the same fraudulent identity.
Acting United States Attorney Joshua S. Levy; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Kristen M. Noto of the Worcester Branch Office prosecuted the case.
Woman Who Kidnapped Her Roommate Gets Seven Year Prison SentenceRead the Press Release
WASHINGTON – Antoinette Gilmore, 28, of Washington, D.C., was sentenced today to 84 months in prison for the October 2023 kidnapping of her roommate, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
A jury convicted Gilmore of kidnapping on May 20, 2024. According to evidence presented at trial, on October 12, 2023, the victim, Michael Brown, got into an argument on the phone with Gilmore. During the argument, the defendant told Mr. Brown she wanted him out of her apartment. They agreed that the defendant would pick up Mr. Brown from downtown and bring him back to her apartment so that he could remove his belongings. Defendant Gilmore and her cousin went to pick up Mr. Brown. Once inside the car, the defendant instructed her cousin to punch and beat Mr. Brown and take his belongings as the defendant drove. Mr. Brown tried to get out of the car, but they locked the doors and trapped him from within.
At one point, Mr. Brown was able to get the back car door open and escape. At the defendant’s direction, her cousin jumped out and chased Mr. Brown down, eventually catching him and dragging him by the collar of his shirt back into the defendant’s car. Once they reached their destination, Mr. Brown was pulled out of the car where he managed to break free. He ran straight to the Sixth District Police substation where he reported the incident to police.
In addition to the prison term, Superior Court Judge Errol Arthur ordered five years of supervised release.
This case was investigated by the Metropolitan Police Department. It was prosecuted and tried by Assistant U.S. Attorneys Sara Hanson and Lauren Miller of the Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by Paralegal Specialist Crystal Waddy and Supervisory Victim Witness Service Coordinator Katina Adams-Washington.
Wimauma Man on Federal Supervised Release for Drug and Firearm Offenses Pleads Guilty to Possessing Ammunition as A Convicted FelonRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Alfredo Davila, Jr. (30, Wimauma) today pleaded guilty to possession of ammunition by a convicted felon. Davila, Jr. faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set. Davila, Jr. has agreed to forfeit the ammunition used in the commission of the offense.
According to the plea agreement, on February 18, 2024, deputies with the Hillsborough County Sheriff’s Office responded to a 911 call where the caller stated that a gun was pointed at her face. The caller provided an address where the incident was occurring and a description of the armed individual. Upon arrival, deputies located Davila, Jr., who matched the description provided by the caller, and saw him throw a black object on the ground. Deputies located the object and discovered it to be a loaded magazine containing 19 rounds of live ammunition. At the time of the offense, Davila, Jr. was on federal supervised release for possession with intent to distribute cocaine, and possession of a firearm in furtherance of a drug trafficking crime. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jeff Chang.
This case is part of the 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 for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
West Virginia Business Owner Charged with Employment Tax Offenses and Not Filing Personal Tax ReturnsRead the Press Release
A federal grand jury in Charleston, West Virginia, returned an indictment today charging a West Virginia man with not paying employment taxes and not filing his personal tax returns.
According to the indictment, since 1994, Dean Dawson, of Hurricane, owned and operated Real Property Consulting Group LLC, a real estate appraisal business. The indictment charges that from the third quarter of 2018 to 2023, Dawson did not pay to the IRS the Social Security, Medicare and federal income taxes that were withheld from employees’ paychecks or file quarterly tax returns reporting those withholdings, as required by law. Though Dawson allegedly provided his employees with Forms W-2, Wage and Tax Statement, he did not file those forms with the Social Security Administration. Dawson allegedly used his business bank account to pay his personal expenses and directed funds to his wife who was not an employee. The indictment further alleges that Dawson did not file personal tax returns from 2018 to 2023.
Dawson was charged with 19 counts of failing to collect and pay over employment taxes and six counts of willfully failing to file personal tax returns. If convicted, he faces a maximum penalty of five years in prison for each employment tax count and a maximum penalty of one year in prison for each count of failure to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney William S. Thompson for the Southern District of West Virginia made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Brian E. Flanaghan and Rebecca A. Caruso of the Tax Division and Assistant U.S. Attorney Jonathan Storage for the Southern District of West Virginia are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
West Virginia Business Owner Charged with Employment Tax Offenses and Not Filing Personal Tax ReturnsRead the Press Release
CHARLESTON, W.Va. – A federal grand jury in Charleston, West Virginia, returned an indictment today charging a West Virginia man with not paying employment taxes and not filing his personal tax returns.
According to the indictment, since 1994, Dean Dawson, of Hurricane, owned and operated Real Property Consulting Group LLC, a real estate appraisal business. The indictment charges that from the third quarter of 2018 to 2023, Dawson did not pay to the IRS the Social Security, Medicare and federal income taxes that were withheld from employees’ paychecks or file quarterly tax returns reporting those withholdings, as required by law. Though Dawson allegedly provided his employees with Forms W-2, Wage and Tax Statement, he did not file those forms with the Social Security Administration. Dawson allegedly used his business bank account to pay his personal expenses and directed funds to his wife who was not an employee. The indictment further alleges that Dawson did not file personal tax returns from 2018 to 2023.
Dawson was charged with 19 counts of failing to collect and pay over employment taxes and six counts of willfully failing to file personal tax returns. If convicted, he faces a maximum penalty of five years in prison for each employment tax count and a maximum penalty of one year in prison for each count of failure to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney William S. Thompson for the Southern District of West Virginia made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Brian E. Flanaghan and Rebecca A. Caruso of the Tax Division and Assistant U.S. Attorney Jonathan Storage for the Southern District of West Virginia are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-120.
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Utah Based Drug Trafficking Ringleader Sentenced to 240 Months’ ImprisonmentRead the Press Release
Salt Lake City, Utah – Joe Robert Rael, 55, of Salt Lake City was sentenced to 20 years’ imprisonment, and a term of 60 months’ supervised release for engaging in a conspiracy to traffic narcotics and launder money.
The sentence, imposed by U.S. District Court Judge Howard C. Nielson, Jr., took place on July 18, 2024, after Rael, who also goes by the alias “Jojo,” pleaded guilty February 9, 2023, following a 34-count indictment that involved over 25 defendants in 2021. See prior release here.
According to court documents and statements made at the change of plea hearing, from May 2020 to May 2021, Rael and his 26 co-defendants engaged in a conspiracy to traffic methamphetamine, heroin, fentanyl, and launder money. During the investigation, law enforcement learned that Rael was a main supplier of heroin and methamphetamine in the District of Utah. Agents further learned Rael had several sources of supply for narcotics, including co-defendants. The investigation also revealed some of the narcotics were obtained directly from the Mexican Drug Cartel Jalisco New Generation (CJNG). Once Rael obtained the heroin and methamphetamine from his sources, he distributed the narcotics to several other co-conspirators. The investigation demonstrated a clear link between street gangs in Utah and Mexican Drug Cartels trafficking narcotics in the United States.
During the investigation, agents estimated more than 420 pounds of methamphetamine and 50 pounds of heroin flowed through the drug trafficking conspiracy in a one-year time period. For example, in February 2021, agents demonstrated that Rael received more than 11 pounds of methamphetamine and about two pounds of heroin within a few days.
Rael is the 23rd defendant out of 26 defendants to be sentenced. So far, sentences have ranged from 24 months to 192 months’ imprisonment.
“Mr. Rael is a career offender. He has been convicted in both state and federal court for trafficking methamphetamine and heroin, causing substantial harm within our community,” said U.S. Attorney Trina A. Higgins of the District of Utah. “Protecting our citizens is one of our top priorities. Taking Mr. Rael off the streets and dismantling the operation he and his coconspirators participated in furthers this priority. We will continue to work with our law enforcement partners to prosecute those who choose to distribute poison in our communities.”
“The sentencing of Rael is an important milestone in DEA’s focus on targeting the most prolific drug trafficking organizations distributing poison in our communities. This DEA investigation, like many others that are on-going, was a collaborative effort with other federal, state, and local law enforcement agencies in Utah. Together, our investigators will continue to work tirelessly to dismantle these drug trafficking networks and to protect Utah’s communities,” said DEA Rocky Mountain Field Division Special Agent in Charge Jonathan Pullen.
"ATF, DEA, and our local law enforcement partners have concentrated our resources on disrupting the Norteño gang pipeline responsible for delivering deadly drugs into our communities," said ATF Special Agent in Charge Brent Beavers. "The illegal trafficking of drugs tends to run hand-in-hand with the illegal possession of firearms and contributes to deadly gun violence. We hope this 20-year federal prison sentence serves as a strong deterrent to those who contemplate perpetuating violent crime in our communities.”
“The Metro Gang Unit works hand in hand with our federal partners to reduce the narcotics and violence in our community. This case is another example of the success of that partnership,” said Salt Lake County Sheriff Rosie Rivera. “We are grateful for the collaboration and diligent work by the U.S. Attorney’s Office in seeing this case through.”
“At IRS Criminal Investigation, we are very proud to have worked together with our many skilled law enforcement partners and bring justice in this case and protection for the community,” said IRS:CI Special Agent in Charge Carissa Messick. “These criminal enterprises only operate because of the significant financial benefits to the participants. We at the IRS specialize in tracing these finances to disrupt those benefits. In working with our partners at the DEA, ATF, and locally we can each use our expertise to dismantle these conspiracies from every angle and hopefully bring security to Utah communities.”
The case was investigated jointly by The United States Drug Enforcement Administration (DEA), The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Internal Revenue Service, Criminal Investigation (IRS-CI), and the Salt Lake County Sheriff’s Office Metro Gang Unit (MGU).
Assistant United States Attorney Stewart M. Young of the U.S. Attorney’s Office for the District of Utah 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 gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit https://www.justice.gov/ocdetf.
Attachments:
joe_robert_rael_sentencing_memorandum_v.1.pdfUnion County Woman Charged with Embezzling Hundreds of Thousands of Dollars from SynagogueRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, woman was charged in connection with her role in embezzling more than $350,000 from a Union County synagogue, U.S. Attorney Philip R. Sellinger announced today.
Stacy Margaritondo, 51, of Scotch Plains, New Jersey, is charged by complaint with one count of wire fraud. She appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In 2010, Margaritondo began working at a synagogue in Union County, New Jersey. She was promoted to office manager and bookkeeper in July 2020. Margaritondo’s duties included accounting/bookkeeping, payroll, preparing checks for accounts payable, and reporting to the synagogue’s board of directors regarding the synagogue’s financial condition. From December 2019 through May 2023, Margaritondo abused this position of trust by engaging in a fraudulent scheme to misappropriate approximately $350,000 from the synagogue’s accounts. Margaritondo routinely issued unauthorized checks made payable to herself drawn on the synagogue’s bank accounts; obtained unauthorized additional funds to conceal the embezzlement scheme by fraudulently using the synagogue’s name, bank statements, and balance sheet to obtain short-term financing from cash advance companies; and intentionally kept inaccurate accounting records and altered bank statements that she provided to the board of directors to conceal her scheme.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charge. He also thanked the Scotch Plains Police Department, under the direction of Chief Jeffrey J. Briel.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
margaritondo.complaint.pdfTwo Dominican Nationals Extradited in Connection with Grandparent ScamRead the Press Release
Two residents of Santiago de los Caballeros, Dominican Republic, were extradited to the United States last week and made their initial appearance in Newark federal court yesterday on charges relating to their participation in a sprawling “grandparent scam” that defrauded elderly Americans out of millions of dollars.
Rafael Ambiorix Rodriguez Guzman, also known as Max Morgan, 59, and Felix Samuel Reynoso Ventura, also known as Fili and Filly The Kid, 37, are among 11 Dominican Nationals charged in a 19-count indictment filed in the U.S. District Court for the District of New Jersey that was unsealed on April 29. Following their initial appearance yesterday, the court ordered both men detained pending trial.
According to the indictment, Rodriguez Guzman, Reynoso Ventura and their co-conspirators engaged in a long-running “grandparent” or “family in need of bail” scam against hundreds of seniors across the United States, including in New Jersey, New York, Pennsylvania and Massachusetts. Both Rodriguez Guzman and Reynoso Ventura are alleged to have worked in the call centers in the Dominican Republic from which the scam operated, where they phoned elderly Americans and sought to steal their money.
As detailed in court filings, members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested in connection with an accident and needed help.
Once openers tricked victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers” — including Rodriguez Guzman and Reynoso Ventura — allegedly impersonated defense attorneys, police officers or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones. The cash was typically retrieved by couriers sent to the victims’ homes or mailed by victims at the direction of the closers.
Rodriguez Guzman and Reynoso Ventura each face multiple charges, including mail and wire fraud conspiracy, wire fraud, mail fraud and conspiracy to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison for each count, a maximum fine of $250,000 for each count of the mail and wire fraud charges and a maximum fine of $500,000 for money laundering conspiracy.
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue criminals who defraud victims through so-called ‘grandparent scams,’” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable Americans from abroad. We thank the government of the Dominican Republic for extraditing these defendants to the United States to face charges.”
“As alleged, these two defendants played a role in a scheme that relied on the love and devotion of elderly victims in order to cheat them out of millions of dollars,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “In this ‘grandparents’ scam,’ some of the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. Conspirators like Rodriguez Guzman and Reynoso Ventura allegedly impersonated a variety of people – police officers, lawyers and others – to convince the victims to pay up, which the panic-stricken grandparents often did. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.”
“These defendants and their co-conspirators are accused of heartlessly robbing countless elderly victims of their precious time and often their life savings – all from more than 1,500 miles away, said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “Rafael Ambiorix Rodriguez Guzman and Felix Samuel Reynoso Ventura were among the 16 individuals charged in this appalling scheme, which spanned at least four U.S. states and allegedly threatened hundreds of innocent Americans’ livelihoods. The merciless greed of perpetrators is boundless, but is no match for HSI New York’s El Dorado Task Force, its Cyber Intrusion Group and the greater law enforcement community. I am proud to stand alongside our global partners in our relentless commitment to the safety and overall wellbeing of the vulnerable public."
“The grandparent scam is a cruel fraud scheme that deliberately preys on elderly and vulnerable persons within society. Perpetrators, often cowardly operating off-shore, cause extreme emotional and financial harm to the innocent people they target in commission of this crime,” said Acting Special Agent in Charge Bradley Parker of the Social Security Administration Office of the Inspector General (SSA-OIG) Boston New York Field Division. “SSA OIG proudly joined HSI, the FBI, the Justice Department and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries and we appreciate the diligence of the U.S. Marshals Service in facilitating the extradition of these defendants from the Dominican Republic to New Jersey to hold them accountable for their actions.”
“We are now one step closer to holding accountable the alleged fraudsters who financially exploited hundreds of elderly Americans,” said Commissioner Edward A. Caban of the New York City Police Department (NYPD). “This should serve as a reminder to other criminals about the extensive reach of New York law enforcement and our unwavering commitment to delivering justice to all victims. I applaud our NYPD investigators and all of our federal partners for their dedication to this important case.”
HSI, SSA-OIG, NYPD and the FBI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from the Dominican Republic of the defendants with assistance from the United States Marshals Service. Justice Department officials also recognized the critical cooperation of the Dominican government in effecting the extradition of Rodriguez Guzman and Reynoso Ventura pursuant to the treaty between the two countries.
Trial Attorneys Jason Feldman, Joshua Ferrentino and Emily Powers of the Civil Division's Consumer Protection Branch and Assistant U.S. Attorney Carolyn Silane for the District of Jersey are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Dominican Nationals Extradited in Connection with Grandparent ScamRead the Press Release
NEWARK, N.J. – Two residents of Santiago de los Caballeros, Dominican Republic, were extradited to the United States and made their initial appearance in Newark federal court on charges relating to their participation in a sprawling “grandparent scam” that defrauded elderly Americans out of millions of dollars, the U.S. Attorney’s Office for the District of New Jersey and the Justice Department announced today.
Rafael Ambiorix Rodriguez Guzman, also known as “Max Morgan,” age 59, and Felix Samuel Reynoso Ventura, also known as “Fili” and “Filly The Kid,” age 37, are among eleven Dominican Nationals charged in a 19-count indictment filed in the United States District Court for the District of New Jersey that was unsealed on April 29, 2024. Following their initial appearance on July 22, 2024, before U.S. Magistrate Judge André M. Espinosa both defendants were detained pending trial.
According to the indictment:
Rodriguez Guzman, Reynoso Ventura, and their co-conspirators engaged in a long-running “grandparent” or “family in need of bail” scam against hundreds of seniors across the United States, including in New Jersey, New York, Pennsylvania, and Massachusetts. Both Rodriguez Guzman and Reynoso Ventura are alleged to have worked in the call centers in the Dominican Republic from which the scam operated, where they phoned elderly Americans and sought to steal their money.
As detailed in court filings, members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren, or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested in connection with an accident, and needed help.
Once openers tricked victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers”—including Rodriguez Guzman and Reynoso Ventura—allegedly impersonated defense attorneys, police officers, or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones. The cash was typically retrieved by couriers sent to the victims’ homes or mailed by victims at the direction of the closers.
Rodriguez Guzman and Reynoso Ventura each face multiple felony charges, including mail and wire fraud conspiracy, wire fraud, mail fraud, and conspiracy to commit money laundering. If convicted, they face a maximum penalty 20 years in prison for each count, a maximum fine of $250,000 for each count of the mail and wire fraud charges and a maximum fine of $500,000 for money laundering conspiracy.
U.S. Attorney Philip R. Sellinger“As alleged, these two defendants played a role in a scheme that relied on the love and devotion of elderly victims in order to cheat them out of millions of dollars. In this ‘grandparents’ scam,’ some of the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. Conspirators like Rodriguez Guzman and Reynoso Ventura allegedly impersonated a variety of people – police officers, lawyers and others – to convince the victims to pay up, which the panic-stricken grandparents often did. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.”
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue criminals who defraud victims through so-called ‘grandparent scams,’” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable Americans from abroad. We thank the government of the Dominican Republic for extraditing these defendants to the United States to face charges.”
“These defendants and their co-conspirators are accused of heartlessly robbing countless elderly victims of their precious time and often their life savings – all from more than 1,500 miles away, said Special Agent in Charge Ivan J. Arvelo of HSI New York. “Rafael Ambiorix Rodriguez Guzman and Felix Samuel Reynoso Ventura were among the 16 individuals charged in this appalling scheme, which spanned at least four U.S. states and allegedly threatened hundreds of innocent Americans’ livelihoods. The merciless greed of perpetrators is boundless, but is no match for HSI New York’s El Dorado Task Force, its Cyber Intrusion Group, and the greater law enforcement community. I am proud to stand alongside our global partners in our relentless commitment to the safety and overall wellbeing of the vulnerable public."
“The grandparent scam is a cruel fraud scheme that deliberately preys on elderly and vulnerable persons within society. Perpetrators, often cowardly operating off-shore, cause extreme emotional and financial harm to the innocent people they target in commission of this crime,” said Acting Special Agent in Charge Bradley Parker of the Social Security Administration Office of the Inspector General (SSA-OIG), Boston New York Field Division. “SSA OIG proudly joined HSI, the FBI, the Justice Department, and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries and we appreciate the diligence of the U.S. Marshals Service in facilitating the extradition of these defendants from the Dominican Republic to New Jersey to hold them accountable for their actions.”
“We are now one step closer to holding accountable the alleged fraudsters who financially exploited hundreds of elderly Americans,” said Commissioner Edward A. Caban of the New York City Police Department (NYPD). “This should serve as a reminder to other criminals about the extensive reach of New York law enforcement and our unwavering commitment to delivering justice to all victims. I applaud our NYPD investigators and all of our federal partners for their dedication to this important case.”
HSI, SSA-OIG, NYPD, and the FBI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from the Dominican Republic of the defendants with assistance from the United States Marshals Service. Justice Department officials also recognized the critical cooperation of the Dominican government in effecting the extradition of Rodriguez Guzman and Reynoso Ventura pursuant to the treaty between the two countries.
Assistant U.S. Attorney Carolyn Silane for the District of Jersey and Trial Attorneys Jason Feldman, Joshua Ferrentino, and Emily Powers of the Civil Division's Consumer Protection Branch are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Twelfth Defendant Pleads Guilty in Transnational Scheme to Defraud Spanish-Speaking U.S. ConsumersRead the Press Release
MIAMI – A Peruvian national pleaded guilty today for his participation in a transnational mail and wire fraud conspiracy.
According to court documents, Jose Alejandro Zuñiga Cano, 40, of Lima, Peru, was the operator of a Peruvian call center that defrauded and extorted Spanish-speaking U.S. residents by falsely threatening them with arrest, court proceedings and immigration consequences. Zuñiga was extradited from Peru in March to face charges related to the scheme.
Zuñiga is the 12th defendant to be convicted in connection with a $15 million transnational fraud scheme that defrauded and threatened Spanish-speaking U.S. consumers, claiming they would suffer legal consequences if they did not pay for English-language learning products they never requested. The scheme was responsible for defrauding more than 30,000 Spanish-speaking residents of the United States. Many of the victims were recent immigrants who had expressed interest in learning English.
The 12 defendants include eight Peruvian call center owner-operators and four distribution center owner-operators who processed payments, distributed products and facilitated the fraud in the United States. Many of the defendants shared strategies on how to defraud Spanish-speaking residents of the United States.
“The long arm of the American justice system has no limits when it comes to reaching fraudsters who prey on our nation’s most vulnerable populations, to include the elderly and recent immigrants,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will not allow transnational criminals to use fear tactics and intimidation to steal money from the public we serve. Individuals who defraud American consumers will be brought to justice, no matter where they are located.”
“The Justice Department’s Consumer Protection Branch is dedicated to protecting vulnerable U.S. consumers from fraudsters, including those who reside beyond our borders,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Individuals who defraud our immigrant communities will be brought to justice and held accountable in U.S. courts.”
“This investigation attests that justice will be pursued relentlessly to protect U.S. consumers,” said Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS) Miami Field Division. “The U.S. Postal Inspection Service, Justice Department’s Consumer Protection Branch and the U.S. Attorney’s Office worked steadfastly to uphold the integrity of our legal system and the postal system. Today’s 12th conviction should send a strong message to those who exploit the mail for criminal use. You will be brought to justice.”
According to court documents, Zuñiga owned and operated a call center in Lima that placed unsolicited calls to Spanish-speaking consumers in the United States and falsely claimed that they had won or qualified for free products, including computer tablets and English language courses. On later calls, Zuñiga and his co-conspirators falsely claimed that victims were contractually obligated to pay large sums to receive the products. Zuñiga and his co-conspirators impersonated lawyers, court officials, police officers and representatives of a supposed “minor crimes court” to intimidate victims and force them to send payments. Zuñiga and his co-conspirators threatened victims with court proceedings, arrest and immigration consequences if they did not pay.
Victims who paid were later re-victimized by Zuñiga and his co-conspirators with a related restitution scheme. According to court documents, the defendant and his co-conspirators placed additional calls to victims who had already paid and, while posing as lawyers for a U.S. court, falsely represented that victims were entitled to restitution payments and would receive their money back if they paid the lawyer who purportedly brought the case on their behalf. In reality, there was no lawyer, no restitution order and no funds returned to the victims who made those additional payments. Instead, Zuñiga kept those additional victim payments for himself.
On June 13, Zuniga pleaded guilty to conspiracy to commit mail and wire fraud. A sentencing hearing is scheduled for Oct. 10. Zuniga faces 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.
Zuñiga is the eighth defendant to be extradited from Peru and plead guilty in federal court to conspiracy to commit mail and wire fraud related to Peruvian call centers. In 2021 and 2022, U.S. District Judge Robert N. Scola, Jr. sentenced Henrry Milla, Carlos Espinoza, Jerson Renteria, Fernan Huerta, Omar Cuzcano, Evelyng Milla and Josmell Espinoza to sentences ranging from 88 to 110 months in prison. Additionally, four other co-conspirators who facilitated the operations of these call centers have also been sentenced. Most recently, in March 2023, U.S. District Judge Patricia A. Seitz sentenced Luis Rendon, the operator of a U.S. distribution center that facilitated a substantial part of the fraud scheme, to 65 months in prison.
USPIS and the Consumer Protection Branch investigated the case.
Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorney Carolyn Rice of the Consumer Protection Branch are prosecuting the case and Assistant U.S. Attorney Annika Miranda for the Southern District of Florida is handling asset forfeiture. The Federal Trade Commission, Justice Department’s Office of International Affairs, U.S. Attorney’s Office for the Southern District of Florida, State Department’s Diplomatic Security Service, U.S. Marshals Service, Peruvian National Prosecutor General’s Office and Peruvian National Police provided critical assistance.
The Justice Department continues to investigate and bring charges in other similar matters involving threats against Spanish-speaking residents of the United States.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Additional information about the Consumer Protection Branch and its fraud enforcement efforts can be found at https://www.justice.gov/civil/consumer-protection-branch.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-CR-20552.
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Twelfth Defendant Pleads Guilty in Transnational Scheme to Defraud Spanish-Speaking U.S. ConsumersRead the Press Release
A Peruvian national pleaded guilty today for his participation in a transnational mail and wire fraud conspiracy.
According to court documents, Jose Alejandro Zuñiga Cano, 40, of Lima, Peru, was the operator of a Peruvian call center that defrauded and extorted Spanish-speaking U.S. residents by falsely threatening them with arrest, court proceedings and immigration consequences. Zuñiga was extradited from Peru in March to face charges related to the scheme.
Zuñiga is the 12th defendant to be convicted in connection with a $15 million transnational fraud scheme that defrauded and threatened Spanish-speaking U.S. consumers, claiming they would suffer legal consequences if they did not pay for English-language learning products they never requested. The scheme was responsible for defrauding more than 30,000 Spanish-speaking residents of the United States. Many of the victims were recent immigrants who had expressed interest in learning English.
The 12 defendants include eight Peruvian call center owner-operators and four distribution center owner-operators who processed payments, distributed products and facilitated the fraud in the United States. Many of the defendants shared strategies on how to defraud Spanish-speaking residents of the United States.
“The Justice Department’s Consumer Protection Branch is dedicated to protecting vulnerable U.S. consumers from fraudsters, including those who reside beyond our borders,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Individuals who defraud our immigrant communities will be brought to justice and held accountable in U.S. courts.”
“The long arm of the American justice system has no limits when it comes to reaching fraudsters who prey on our nation’s most vulnerable populations, to include the elderly and recent immigrants,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will not allow transnational criminals to use fear tactics and intimidation to steal money from the public we serve. Individuals who defraud American consumers will be brought to justice, no matter where they are located.”
“This investigation attests that justice will be pursued relentlessly to protect U.S. consumers,” said Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS) Miami Field Division. “The U.S. Postal Inspection Service, Justice Department’s Consumer Protection Branch and the U.S. Attorney’s Office worked steadfastly to uphold the integrity of our legal system and the postal system. Today’s 12th conviction should send a strong message to those who exploit the mail for criminal use. You will be brought to justice.”
According to court documents, Zuñiga owned and operated a call center in Lima that placed unsolicited calls to Spanish-speaking consumers in the United States and falsely claimed that they had won or qualified for free products, including computer tablets and English language courses. On later calls, Zuñiga and his co-conspirators falsely claimed that victims were contractually obligated to pay large sums to receive the products. Zuñiga and his co-conspirators impersonated lawyers, court officials, police officers and representatives of a supposed “minor crimes court” to intimidate victims and force them to send payments. Zuñiga and his co-conspirators threatened victims with court proceedings, arrest and immigration consequences if they did not pay.
Victims who paid were later re-victimized by Zuñiga and his co-conspirators with a related restitution scheme. According to court documents, the defendant and his co-conspirators placed additional calls to victims who had already paid and, while posing as lawyers for a U.S. court, falsely represented that victims were entitled to restitution payments and would receive their money back if they paid the lawyer who purportedly brought the case on their behalf. In reality, there was no lawyer, no restitution order and no funds returned to the victims who made those additional payments. Instead, Zuñiga kept those additional victim payments for himself.
Today, Zuñiga pleaded guilty to conspiracy to commit mail and wire fraud. A sentencing hearing is scheduled for Oct. 10. Zuñiga faces 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.
Zuñiga is the eighth defendant to be extradited from Peru and plead guilty in federal court to conspiracy to commit mail and wire fraud related to Peruvian call centers. In 2021 and 2022, U.S. District Judge Robert N. Scola Jr. sentenced Henrry Milla, Carlos Espinoza, Jerson Renteria, Fernan Huerta, Omar Cuzcano, Evelyng Milla and Josmell Espinoza to sentences ranging from 88 to 110 months in prison. Additionally, four other co-conspirators who facilitated the operations of these call centers have also been sentenced. Most recently, in March 2023, U.S. District Judge Patricia A. Seitz sentenced Luis Rendon, the operator of a U.S. distribution center that facilitated a substantial part of the fraud scheme, to 65 months in prison.
USPIS and the Consumer Protection Branch investigated the case.
Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorney Carolyn Rice of the Consumer Protection Branch are prosecuting the case. Assistant U.S. Attorney Annika Miranda for the Southern District of Florida is handling asset forfeiture. The Federal Trade Commission, U.S. Attorney’s Office for the Southern District of Florida, State Department’s Diplomatic Security Service, U.S. Marshals Service, Peruvian National Prosecutor General’s Office and Peruvian National Police provided critical assistance.
The Justice Department's Office of International Affairs provided valuable assistance in securing the extradition of Zuñiga from Peru.
The Justice Department continues to investigate and bring charges in other similar matters involving threats against Spanish-speaking residents of the United States.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Additional information about the Consumer Protection Branch and its fraud enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
St. Louis County Woman Sentenced for Helping Her Son Fake a DisabilityRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Tuesday sentenced a St. Louis County, Missouri woman to five years of probation and 18 months of house arrest and ordered her to repay $131,155 for helping her son fake a mental disability for more than 13 years as well as defrauding the Social Security Administration to obtain benefits for herself.
Zella Rives, 57, of Edmundson, bolstered her son’s false claims of disability from 2010 to 2013 by concealing his lies and acting as representative payee for him. Zella Rives fraudulently confirmed Gino Rives’ eligibility in 2019, concealing his ownership of multiple houses and vehicles, his ability to earn income and his relationship with his girlfriend, her plea agreement says.
Zella Rives pleaded guilty in February to five counts of theft of government funds and one count of making a false statement.
“Zella Rives held a position of trust for 13 years as a representative payee, which she misused in fraudulently obtaining Supplemental Security Income benefits for her son. She concealed that he was not disabled, and falsely reported about his employment and resources so his benefits would continue,” said Elena Torres Burfield, Special Agent in Charge, Social Security Administration Office of the Inspector General, Midwestern Cooperative Disability Investigations Division. “This sentence demonstrates that her criminal actions are punishable under the law and my office will continue to protect SSA’s disability programs for those who are truly eligible to receive them. I thank the U.S. Secret Service for their work in this investigation and the U.S. Attorney’s Office for prosecuting this case.”
In June, Judge Clark sentenced Gino Rives, 36, of Edmundson, to 87 months in prison for the disability fraud case and a separate case involving his financial exploitation of two elderly women. Gino Rives obtained four vehicles and checks totaling more than $855,000 from one woman and used her debit card for personal purchases for himself and his family. He executed a quit claim deed and transferred a house belonging to the other victim into his name before.
The Social Security Administration Office of Inspector General and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Tracy Berry prosecuted the case.
Springfield Sex Offender Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man who is a registered sex offender pleaded guilty in federal court today to receiving and distributing child pornography.
Ronald Lee Goins, 43, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of receiving and distributing child pornography. Goins has a prior conviction for furnishing pornographic material to a minor under the age of 14, and two prior convictions for failing to register as a sex offender.
According to today’s plea agreement, law enforcement officers found a cell phone in an abandoned vehicle in an alley at 2044 N. Avenue in Springfield on July 22, 2023. Investigators examined the phone and found files that contained child pornography on a micro-SD card that had been inserted into the phone.
Investigators determined the images of child pornography had last been modified in 2020 and 2021, at which time the phone belonged to Goins. There were also self-produced images of Goins, documents, and other files indicating that Goins was the user of the cell phone during 2020 and 2021. Two CyberTip Reports from Snapchat and Instagram, which involved child pornography uploads, were associated with the email address located on the micro-SD card.
Goins was arrested on Oct. 30, 2023, on outstanding arrest warrants in a separate case.
Under federal statutes, Goins is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Greene County, Mo., Sheriff’s Department, Homeland Security Investigations, the Springfield, Mo., Police Department and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South Carolina Individuals Sentenced for Roles in Gun Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – Six South Carolina individuals have been sentenced for conspiring to illegally sell firearms, including nine handguns, in New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Kendell McFadden, 31, of Florence, South Carolina, was sentenced today by U.S. District Judge Michael E. Farbiarz in Newark federal court to 48 months in prison for his role in the scheme after previously pleading guilty to the conspiracy.
His conspirators – Laronmir McFadden, Savon Harrison, Dontavian Jones, Michael Gamble, and Donjanea McClary – were previously sentenced after each of them had also previously pleaded guilty to the conspiracy. Laronmir McFadden, 30, had also pleaded guilty to unlawfully possessing a firearm by a convicted felon, and was sentenced to 49 months in prison. Harrison, 27, was sentenced to 30 months in prison; Jones, 26, was sentenced to 22 months in prison; Gamble, 33, was sentenced to 14 months in prison; and McClary was sentenced to 2 years of probation.
According to documents filed in this case and statements made in court:
From August 2019 through September 2021, the defendants conspired to traffic firearms from South Carolina to New Jersey. Although Kendell McFadden was prohibited from possessing a firearm as a prior convicted felon, he and his conspirators utilized straw purchasers to purchase firearms in South Carolina and then transport the firearms to Paterson, New Jersey, and elsewhere for resale. On Sept. 26, 2021, law enforcement intercepted a vehicle containing Kendell McFadden, Laronmir McFadden, Harrison, and Jones travelling from South Carolina to New Jersey and recovered nine firearms.
In addition to the prison term, Judge Farbiarz sentenced Kendell McFadden to three years of supervised release and fined $1,000.
U.S. Attorney Sellinger credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Ross A. Marchetti in the Newark Field Division and Special Agent in Charge Bennie Mims in the Charlotte Field Division; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Casey S. Smith of the General Crimes Unit in Newark.
South Bend Man Sentenced to 84 Months in PrisonRead the Press Release
HAMMOND- Frank Stork, 45 years old, of South Bend, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Stork was sentenced to 84 months in prison followed by 2 years of supervised release.
According to documents in the case, on January 3, 2021, law enforcement observed Stork driving a vehicle while committing multiple traffic violations. When they stopped him, he physically resisted the officers. A loaded .45 caliber firearm which had been reported stolen in 2019 was recovered from the vehicle. Stork’s criminal history revealed he had six prior felony convictions, any one of which prohibited him from possessing the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force with assistance from the Hobart Police Department. This case was prosecuted by Assistant United States Attorney Caitlin M. Padula.
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.
Six Individuals Charged in Cocaine Distribution Conspiracy, Including Alabama State TrooperRead the Press Release
MONTGOMERY, ALABAMA – Today, United States Attorney Jonathan S. Ross announced that a federal grand jury in Montgomery, Alabama indicted six individuals for their roles in a conspiracy to distribute cocaine.
According to the indictment, 57-year-old Jim Carter, Jr., from Montgomery, Alabama; 38-year-old Francisco Lopez, from Texas; 40-year-old Maria Beatriz Palomo-De Lopez, a Mexican national; 63-year-old Saundra S. Curry, from Deatsville, Alabama; 37-year-old Bryce Johnson, from Union Springs, Alabama; and 52-year-old Michael Anthony Evans, an Alabama State Trooper from Montgomery, Alabama, are charged with conspiring to distribute cocaine. The conspiracy began at an unknown date and continued through at least June 10, 2024. The indictment further alleges that Jim Carter, Jr., and Francisco Lopez are each responsible for at least five kilograms of cocaine involved in the conspiracy.
In addition, the indictment charges Jim Carter, Jr., Francisco Lopez, and Maria Beatriz Palomo-De Lopez with possessing cocaine with intent to distribute. Lastly, the indictment alleges that Maria Beatriz Palomo-De Lopez illegally re-entered the United States after being deported in 2013.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Due to the amount of cocaine alleged against Jim Carter, Jr. and Francisco Lopez in the indictment, they each face a sentence of ten years to life in prison. The other defendants are facing a sentence of up to 20 years. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Drug Enforcement Administration investigated the case, with cooperation from the Alabama Law Enforcement Agency. Assistant United States Attorney Mark E. Andreu is prosecuting this case.
Sioux City Man Who Attempted to Flee Traffic Stop Sentenced for Illegal Possession of FirearmRead the Press Release
A Sioux City man who tried to run from law enforcement, but didn’t get far, was sentenced today to more than 10 years in federal prison.
Jeremy Martin, age 45, originally from El Paso, Texas, received the prison term after a March 11, 2024, guilty plea to felon in possession of a firearm.
Evidence in the case revealed that on January 26, 2023, Sioux City Police attempted to stop the vehicle Martin was operating for speeding. Martin attempted to flee, getting the vehicle high centered and stuck in snow. Martin then fled on foot but was promptly apprehended by officers from the Sioux City Police Department. Martin admitted to the arresting officer to having a firearm in his jacket, a box of ammunition containing 100 rounds, that had been stolen, a syringe, scale and a baggie that contained more than 3 grams of methamphetamine.
Martin’s criminal history included a felony, which prohibited him from legally possessing firearms.
Martin was sentenced in Sioux City by United States District Court Judge Leonard T. Strand to 126 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.
Martin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by Sioux City, Iowa Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4017.
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Shakopee Man Pleads Guilty to Feeding Our Future Jury Bribery SchemeRead the Press Release
MINNEAPOLIS – A Shakopee man has pleaded guilty to his role in providing a $120,000 bribe to a juror in the Feeding Our Future trial, announced United States Attorney Andrew M. Luger.
According to court documents, on April 22, 2024, seven defendants went to trial before U.S. District Judge Nancy E. Brasel for their roles in the Feeding Our Future fraud scheme. During the trial, Abdimajid Mohamed Nur, 23, and four others conspired with each other to provide a cash bribe to one of the jurors in exchange for the juror returning a not guilty verdict in the trial.
As part of the scheme, Nur and his co-defendants decided to target Juror 52 because she was the youngest juror and they believed her to be the only juror of color. Nur and his co-defendants conducted online research to obtain Juror 52’s personal information, including her home address and information about her background and family members. They conducted surveillance of Juror 52 to confirm her home address and obtain information about Juror 52’s daily habits. Nur recruited his co-defendant, Ladan Ali, to deliver the bribe money to Juror 52. During the trial and at Nur’s direction, Ali flew from Seattle to Minneapolis to meet with Nur and discuss the plan to bribe Juror 52. Ali agreed to deliver the bribe money to Juror 52 in exchange for a $150,000 cash payment.
According to court documents, on May 30, 2024, Ali flew from Seattle to Minneapolis to carry out the bribery scheme. On May 31, 2024, at the direction of Nur, Ali attempted to follow Juror 52 home as she left a downtown Minneapolis parking ramp at the conclusion of the first day of closing arguments in the trial. Nur had previously provided Ali with a photo of Juror 52’s car and a map of the parking ramp.
According to court documents, on June 1, 2024, Ali told Nur —falsely—that she had approached Juror 52 at a bar and that Juror 52 was interested in taking the bribe but wanted $500,000 in exchange for returning a not guilty verdict. Ali told Nur that Juror 52 wanted Ali to deliver the money at a specific time when Juror 52 would be home alone. In reality, Ali did not speak with Juror 52, and Juror 52 never agreed to accept a bribe. Nevertheless, Nur believed Ali and relayed the information to another co-defendant, Abdiaziz Farah, who said that he would obtain the bribe money. On June 2, 2024, Abdiaziz Farah instructed Nur to meet him at Said Farah’s business, Bushra Wholesalers, to pick up the bribe money. When Nur arrived, Said Farah brought him a cardboard box containing $200,000 in cash to bribe Juror 52. Later that day, Nur met Ali in a parking lot in Bloomington and gave her the cardboard box containing the $200,000 in cash. Ali took the cash out of the box and put it into a Hallmark gift bag. Nur then instructed Ali to meet Abdulkarim Farah at a location near Juror 52’s house. Nur understood that Abdulkarim Farah would accompany Ali to Juror 52’s house and video record her delivery of the bribe as proof that the bribe money was delivered and Juror 52’s acceptance of the bribe.
According to court documents, later that night, Nur received the video of Ali delivering the bribe money from Abdulkarim Farah via an encrypted messaging app. Nur later deleted the video in order to conceal his involvement in the bribery scheme. Nur also deleted the encrypted messaging app and other evidence of the scheme from his phone.
Nur pleaded guilty today in U.S. District Court before Judge David S. Doty to one count of bribery of a juror. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI with assistance from IRS – Criminal Investigations, the U.S. Postal Inspection Service, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorneys Joseph H. Thompson, Matthew Ebert, Harry Jacobs, Chelsea Walcker, and Daniel Bobier are prosecuting the case.
abdimajid_nur_plea_agreement.pdfSchenectady County Man Pleads Guilty to Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Timothy “Mitch” Duell, age 47, of Schenectady County, New York, pled guilty today to possessing child pornography. United States Attorney Carla B. Freedman and Special Agent in Charge Matthew Scarpino of Homeland Security Investigations (HSI), Buffalo, New York Field Office, made the announcement.
Duell admitted that he possessed sexually explicit images of a child under the age of 12, and engaged in chats where he discussed his interest in engaging in sex acts with that child.
At sentencing scheduled for November 26, 2024, before United States District Judge Mae D’Agostino, Duell faces a statutory maximum imprisonment term of 20 years. Additionally, Duell will be required to serve a post-imprisonment term of supervised release of between 5 years and life, must register as a sex offender upon release, pay restitution to the victim of his offense, and forfeit the device he used to commit it. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.
HSI and the New York State Police investigated this case, and Assistant United States Attorney Michael D. Gadarian prosecuted this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Rockford Man Sentenced to Six and a Half Years in Federal Prison for Possession of Child PornographyRead the Press Release
ROCKFORD — A Rockford man has been sentenced to six and a half years in federal prison for possession of child pornography.
GREGORIO BACINO, 27, admitted in a plea agreement that in 2021 he knowingly possessed on his cellular telephone over 1,000 images and videos of minors, including those as young as infants, engaged in sexually explicit conduct.
U.S. District Court Judge Iain D. Johnston on Friday sentenced Bacino to six and a half years in federal prison, to be followed by 25 years of court-supervised release. Bacino also must register as a sex offender.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The government was represented by Assistant U.S. Attorney Robert S. Ladd.
Riverside County Chiropractor Agrees to Pay $180,000 to Resolve Allegations of Health Care FraudRead the Press Release
FRESNO, Calif. — Chiropractor Kevin Michael Brown, of Menifee, has agreed to pay $180,000 to resolve allegations that he violated the False Claims Act by submitting hundreds of false claims to Medicare for surgically implanted neurostimulators, U.S. Attorney Phillip A. Talbert announced today.
As part of the settlement, Brown stipulated that, through his companies, Revive Medical of San Diego and Revive Medical LLC, located in Oklahoma City, he submitted claims to Medicare for surgically implanted neurostimulator devices, even though his companies did not perform surgery or implant neurostimulators. Brown stipulated that he and his companies instead taped a disposable “electroacupuncture” device called “Stivax” to their patients’ ears. Stivax devices do not require surgical implantation and are not reimbursable by Medicare. The United States alleges that this conduct violated the False Claims Act. In addition to paying the civil settlement, Brown agreed to a five-year exclusion period from Medicare, Medicaid, and all other federal health care programs.
“In addition to the clinics in San Diego and Oklahoma City, Revive Medical personnel performed Stivax procedures at a pain clinic in Chico, which is in the Eastern District of California,” said U.S. Attorney Talbert. “As this case demonstrates, we are committed to vigorously pursuing those who defraud Medicare and will use all tools available to us, including civil enforcement remedies. The investigation into false claims involving Stivax is ongoing.”
“Health care professionals who fraudulently bill Medicare for services never actually provided divert taxpayer funding meant to pay for medically necessary services for Medicare enrollees,” stated Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG will continue to work with our law enforcement partners to protect the integrity of federal health care programs and those served by those programs.”
The investigation was conducted with the U.S. Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Emilia P. E. Morris handled the case for the United States.