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22 July 2024
Montrose Man Pleads Guilty to Adult Webcam Business Scam that Conned Victim Investors Out of Nearly $1.2 MillionRead the Press Release
LOS ANGELES – A Montrose man pleaded guilty today to defrauding investors out of more than $1 million by making false promises that they would receive an ownership interest in several adult entertainment webcam websites and then using their money on personal expenses, including luxury items.
Patrick Khalafian, 54, pleaded guilty to one count of wire fraud.
According to his plea agreement, from November 2009 to October 2016, Khalafian solicited investments for businesses – including 168 Entertainment LLC, Empire Entertainment Group Inc., and EEG LLC – that purportedly developed and operated adult entertainment websites.
Khalafian falsely represented to victims that their investments would be used for business operations, including developing software and the platform for the proposed websites, paying for computer servers, hiring employees, and purchasing advertising. He also falsely promised that the victims would be repaid for their investments by a specific date, that they would receive ownership interests in the companies, and would receive a share of the companies’ profits.
Rather than investing the victim’s money, Khalafian instead used their funds to pay off his debts, including to prior victims, and to fund his own lifestyle, including to pay for gambling expenses and luxury shopping sprees.
To lull the victims into believing that their funds were being used as he had promised, Khalafian lied to his victims about the status of the adult entertainment websites purportedly being developed by the companies in which they had invested. Khalafian eventually stopped responding to victims and disconnected and changed his phone number and email address to evade their inquiries.
For example, in July 2015, Khalafian met with one victim at Mastro’s Steakhouse in Beverly Hills and falsely represented at the meeting that a $1 million investment from the victim would be used to pay for business expenses such as computer servers, employees, and advertising for the adult webcam business. Later that month, the victim – relying on Khalafian’s false promises – wired $1 million to a Khalafian-controlled bank account.
On the same day he received the funds, Khalafian transferred $200,000 of the victim’s money to an account to pay his rent, for luxury cars, and other personal expenses. The day after he received these funds, Khalafian used $66,000 of the victim’s money to purchase a new Ford F-150 truck. He also used more than $100,000 of the victim’s money at casinos, to pay back another investor, to pay his rent, and on luxury shopping sprees at retailers such as Tiffany, Barney’s, Fendi, Saks Fifth Avenue, and Louis Vuitton. Khalafian never paid the victim back any of his investment, and he stopped responding to the victim’s messages in October 2016.
Khalafian also admitted to conning two other victims in 2015 and 2016 out of $80,000 and $90,000, respectively, using their money on personal expenses and not his adult webcam business. Khalafian paid back neither victim any of their money.
In total, Khalafian’s fraud caused a total loss of at least $1.17 million.
United States District Judge André Birotte Jr. scheduled a February 21, 2025 sentencing hearing, at which time Khalafian will face a statutory maximum sentence of 20 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Roger A. Hsieh of the Major Frauds Section is prosecuting this case.
Mississippi Man Indicted for Impersonating Deputy United States MarshalRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that WILLIAM GILCHRIST (“GILCHRIST”), a resident of Greenville, Mississippi was indicted on July 19, 2024 for impersonating a deputy United States Marshal, in violation of Title 18, United States Code, Section 912.
According to the indictment, on or about June 19, 2024, GILCHRIST falsely assumed and pretended to be a Fugitive Task Force Officer with the United States Marshals Service.
GILCHRIST faces a sentence of up to 3 years imprisonment, up to 1 year of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of Homeland Security Investigations and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Middle District of Florida Task Force Continues to Combat COVID-19 FraudRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the results achieved by the Middle District of Florida to combat fraud related to COVID-19. This work has included complementary efforts by the United States Attorney’s Office’s (USAO-MDFL) Criminal, Asset Recovery, Appellate, and Civil Divisions, along with federal, state, and local law enforcement agencies.
“The Middle District of Florida United States Attorney’s Office continues to pursue, investigate, prosecute, and recover money from those who were engaged in fraud schemes designed to steal benefits intended for Americans coping with the myriad impacts of the COVID-19 pandemic,” said U.S. Attorney Roger Handberg.
On the criminal enforcement front, the USAO-MDFL and federal, state, and local law enforcement agencies combined resources in March 2020 to form the Middle District of Florida COVID-19 Fraud Task Force to identify, investigate, and prosecute fraud related to the ongoing COVID-19 pandemic. Since its inception through June 30, 2024, the Task Force has prosecuted 89 defendants for fraud schemes designed to exploit federal programs including the Paycheck Protection Program (“PPP”), Economic Injury Disaster Loans (“EIDL”), Unemployment Insurance (“UI”), the Main Street Lending Program (“MSLP”), the Emergency Rental Assistance Program (“ERAP”), as well as government Healthcare programs such as Medicare. Collectively, these defendants sought to defraud the United States of over $84.5 million. Sixty-seven of those defendants have already been found guilty, while prosecution remains pending against 22 defendants. (See chart for criminal case details.)
For example, in April 2024, a federal jury found Barrett Purvis guilty of wire fraud and money laundering. According to court records, Purvis applied for and received a $500,000 EIDL in May 2021. Although he applied on behalf of a legitimate small business he owned and operated, Purvis never intended to use any of the loan proceeds on working capital as required by the terms of the loan agreement. Instead, Purvis spent approximately half of the proceeds on gambling debt and the rest on other personal debt, including debt incurred on his girlfriend’s three credit cards. Within two weeks of receiving the loan, Purvis had used nearly all the proceeds on personal expenses, unrelated to any legitimate business.
Additionally, in June 2024, Evan Graves was sentenced to 18 months in federal prison and ordered to forfeit approximately $1.35 million and five Fort Myers properties he purchased using his fraudulently obtained EIDL. According to court records, between June 20 and July 23, 2020, Graves submitted 10 EIDL applications to the SBA on behalf of his various Fort Myers-based companies. To qualify for large loan amounts and advance funding, Graves falsely represented his companies’ number of employees, gross revenue, and lost rental income due to the COVID-19 disaster. In total, Graves’s fraudulent representations caused the SBA to approve all 10 loans and deposit approximately $1.35 million into bank accounts he controlled. Following disbursement of the EIDL funding, Graves unlawfully used the money to pay off personal credit card debt, fund personal investment accounts, satisfy mortgages, and purchase real estate.
Further, the USAO-MDFL’s Asset Recovery Division and federal seizing agencies have completed the forfeiture of more than $20 million of EIDL, UI, and PPP funds that were fraudulently obtained, depriving the fraudsters of their ill-gotten gains and recovering the proceeds for the victims. More than $18 million in additional pandemic fraud proceeds have been seized and are pending civil or criminal forfeiture.
The U.S. Attorney General has established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Through the PPP, the federal government authorized over $600 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. The EIDL program provides economic relief to small businesses that are currently experiencing a temporary loss of revenue. The MSLP provided support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. UI programs provided unemployment benefits to eligible workers who became unemployed through no fault of their own.
The criminal cases charged by the Middle District of Florida COVID-19 Fraud Task Force have been investigated by the Federal Bureau of Investigation, the U.S. Secret Service, Internal Revenue Service—Criminal Investigation, the Department of Labor—Office of Inspector General, the U.S. Postal Service, the Federal Housing Finance Agency, the Small Business Administration, the Small Business Administration—Office of Inspector General, the Federal Deposit Insurance Corporation—Office of Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Special Inspector General for Pandemic Recovery, Federal Reserve Board—Office of Inspector General, Department of Health and Human Services—Office of Inspector General, the Metropolitan Bureau of Investigation, the Tampa Police Department, the Orlando Police Department, the Jacksonville Sheriff’s Office, the Manatee County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Sarasota County Sheriff’s Office, the Winter Park Police Department, the Osceola County Sheriff’s Office, the Seminole County Sheriff’s Office, and the Orange County Sheriff’s Office. The cases are being prosecuted by Assistant United States Attorneys throughout the Middle District of Florida.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (“NCDF”) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
United States Attorney’s Office for the Middle District of Florida
COVID Fraud Criminal Cases
Charged Cases
Defendant
Charge(s)
Max. Imprisonment
Type of Fraud*
Intended Loss
Amount
Tampa Division
Ellyn Pinkney
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$40k
Nicole Bramble-King
Wire fraud
Maximum Prison Term: 20 Years
PPP
$40k
Devontaie Deravil
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$480k
Jordan Ross
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
EIDL/PPP
$1.3M
Tommy Louisville
Wire fraud
Maximum Prison Term: 20 Years
PPP
$33k
Marquett James
Alyson Marquett
Conspiracy to commit wire fraud
Maximum Prison Term: 20 Years
Wire fraud
Maximum Prison Term: 20 Years
EIDL/PPP
$96k
Willie Murray Jr.
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
HCF
$5M
Charles Driver Jr.
Conspiracy
Maximum Prison Term: 5 years
Access device fraud
Maximum Prison Term: 10 years
UI
$175k
Eric Canonico
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$2.3M
Alexander Leszczynski
Wire fraud
Maximum Prison Term: 20 Years
Bank fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$1.1M
Capree Holmes
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$159k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Tiffany Fields, Greg Pizzo, Candace Rich, Jennifer Peresie, Michael Kenneth, and Merrilyn Hoenemeyer
Orlando Division
Evan Edwards
Joshua Edwards
Conspiracy to commit bank fraud
Maximum Prison Term: 30 years
Bank fraud
Maximum Prison Term: 30 years
Visa fraud
Maximum Prison Term: 10 years
False statements
Maximum Prison Term: 30 years
PPP
$8M
Emmet Bowens
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$740k
Latresia Wilson
False statements
Maximum Prison Term: 20 Years
HCF
$2.6M
Angela Chew
Conspiracy
Maximum Prison Term: 5 Years
Bribery of a public official
Maximum Prison Term: 15 Years
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$732k
These COVID Fraud cases from the Orlando Division are being handled by AUSAs Kara Wick, Amanda Daniels, and DOJ Trial Attorney Keith Clouser
Fort Myers Division
Venera Price
Mail fraud
Maximum Prison Term: 20 Years
ERAP
$82k
Timothy Jolloff
Wire fraud
Maximum Prison Term: 20 Years
Money laundering
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP/EIDL
$2.1M
Lisa Jolloff
Money laundering
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP/EIDL
$2.1M
Diop McKenzie
Bank fraud
Maximum Prison Term: 30 years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
EIDL/PPP
$237k
These COVID Fraud cases from the Fort Myers Division are being handled by AUSA Yolande Viacava and Trent Reichling
Ocala Division
Henry Wade
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$500k
This COVID Fraud case from the Ocala Division is being handled by AUSA Hannah Nowalk
Adjudicated Cases
Tampa Division
Joseph Abdo
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$500k
Keaujay Hornsby
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Demarius Wilson
Wire fraud
Maximum Prison Term: 20 Years
PPP
$18k
Kareem Spann
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Barrett Purvis
Wire fraud
Maximum Prison Term: 20 Years
Money laundering
Maximum Prison Term: 10 Years
EIDL
$499k
Bergeline Lexis
Conspiracy to commit wire fraud
Maximum Prison Term: 20 Years
EIDL/PPP
$68k
Jailyn Holmes
Wire fraud
Maximum Prison Term: 20 Years
PPP
$28k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs, Diego Novaes, Tiffany Fields, Jennifer Peresie, Greg Pizzo, Merrilyn Hoenemeyer, and Jay Trezevant
Orlando Division
Robert Burns
Wire fraud
Maximum Prison Term: 20 Years
PPP
$57k
This COVID Fraud case from the Orlando Division is being handled by Shannon Laurie
Jacksonville Division
James Wigg
Wire Fraud
Maximum Prison Term: 20 years
PPP
$476k
These COVID Fraud cases from the Jacksonville Division are being handled by AUSA, Michael Coolican, and Tysen Duva
Ocala Division
Passion Jackson
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20k
Nicole Harding
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20k
These COVID Fraud cases from the Ocala Division are being handled by AUSA Hannah Nowalk
Sentenced Cases
Tampa Division
Louis Thornton, III
Wire fraud
Sentence Imposed: 42 months in federal prison
EIDL/PPP
$815k
Kary Stevenson
Corey Quinn
Conspiracy to commit access device fraud and aggravated identity theft
Sentence Imposed: 5 years, 10 months in federal prison (Stevenson)
Sentence Imposed:7 years in federal prison (Quinn)
UI
$1M
Bridgitte Keim
Bank fraud
Sentence Imposed: 2 years in federal prison
PPP
$588k
Wayne Ganaway
Conspiracy to commit wire fraud
Sentence Imposed: 4 years in federal prison
EIDL
$300k
Eriaius Bentley
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: One year in federal prison
UI
$3M
Rolanda Wingfield
Access device fraud, aggravated identity theft
Sentenced Imposed: 3 years in federal prison
UI
$135k
Tywon Spann
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: 6 years and 9 months in federal prison
UI
$3M
Randy Jones
Wire fraud, aggravated identity theft
Sentence Imposed: 5 years and 1 month in federal prison
EIDL/UI
$250k
Julio Lugo
Conspiracy to commit money laundering
Sentence Imposed: 7 years and 6 months in federal prison
EIDL/PPP
$4.4M
Keith Nicoletta
Conspiracy to commit money laundering
Sentence Imposed: 24 months in federal prison
PPP
$1.9M
Rosenide Venant
Conspiracy to commit money laundering
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$413k
Melinda Hernandez
Conspiracy to commit wire fraud,
wire fraud and aggravated identity theft
Sentence imposed: Three years and six months in federal prison
UI
$1.5M
Bri’antina Mills
Wire fraud and theft of government funds
Sentence imposed: 15 months in federal prison
EIDL
$10K
Jorge Gutierrez Echeverria
Wire fraud
Sentence imposed: Two years and six months in federal prison
EIDL
$150k
Omar Esquivel Bello
Wire fraud
Sentence imposed: 15 months in federal prison
EIDL
$242k
Steve Moodie
Conspiracy to commit wire fraud, wire fraud, aggravated identity theft
Sentence imposed: 5 years and 10 months in federal prison
UI
$1.5M
Richard Simpkins
Conspiracy to commit money laundering
Sentence imposed: 5 years and 10 months in federal prison
PPP
$1.9M
Devaris McClain
Conspiracy to commit wire fraud, access device fraud
Sentence imposed: 5 years and 1 month in federal prison
UI
$85k
Jalissa McDuffy
Wire fraud
Sentence imposed: 3 years supervised release with 6 months home detention
PPP
$41k
Kieanna Garrett
Wire fraud
Sentence imposed: 60 days’ imprisonment
EIDL
$40k
Marqus Willard Johnson
Bank fraud
Money laundering
Sentence imposed: 18 months’ imprisonment followed by 60 moths supervised release
PPP
$500k
Mehdi Tazi
Conspiracy, Aggravated identity theft
Sentenced imposed: 5 years imprisonment followed by4 years supervised release
UI
$1.5M
Tyree Wingfield
Conspiracy, Aggravated identity theft
Sentenced imposed: 5 years and 10 months imprisonment followed by4 years supervised release
UI
$1.5M
Dawn Ogundele
Theft of government funds
Sentence imposed: 2 years’ probation
PPP
$20k
Alexander Alli
Wire fraud conspiracy
Sentence imposed: 13 months imprisonment
EIDL
$80k
Charles Cunningham
Bank fraud
Sentence imposed: 21 months imprisonment
PPP
$800k
These COVID Fraud cases from the Tampa Division were handled by AUSAs Rachel Jones, Greg Pizzo, Tiffany Fields, Diego Novaes, Jennifer Peresie, Merrilyn Hoenemeyer, SAUSA Chris Poor, and DOJ Trial Attorney John Scanlon
Orlando Division
Daniel Johnson
Conspiracy to commit wire fraud, aggravated identity theft, unlawful transfer of firearm
Sentence Imposed: 7 years, 6 months in federal prison
UI
$2.3M
Jacquavius Smith
Possession of short-barreled rifle; felon in possession of firearm; and aggravated identity theft
Sentence Imposed: 7 years, 1 month in federal prison
PPP
$10k
Johnson Eustache
Wire fraud
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$2.2M
Joseph Harrison
Conspiracy to commit wire fraud
Sentence Imposed: 12 months in federal prison
UI
$2.1M
Tomas Ziupsnys
Conspiracy to commit bank fraud; bank fraud; aggravated identity theft
Sentence Imposed: 5 years in federal prison
PPP
$2M
Holly Urban
Conspiracy to commit bank fraud
Sentence Imposed: 30 months in federal prison
PPP
$1.5M
Joel Greenberg
Conspiracy to commit wire fraud and other offenses while on pretrial release
Sentence Imposed: 11 years in federal prison
EIDL
$430k
Don Cisternino
Wire fraud, illegal monetary transactions, and aggravated identity theft
Sentence Imposed: 8 years and 6 months in federal prison
PPP
$7.2M
Keith Ingersoll
Conspiracy to commit wire fraud, wire fraud, aggravated identity theft
Sentence imposed: 9 years, 1 month in federal prison.
EIDL
$66k
Jaheim Davis
Access device fraud and aggravated identity theft
Sentence imposed: 3 years, 6 months in federal prison.
UI
$219k
Teresa McIntyre
Conspiracy to commit wire fraud and other offenses
Sentence Imposed: 5 years’ probation
EIDL
$730k
Brian Blake
Possession of device-making equipment, access device fraud, aggravated identity theft
Sentence Imposed: 9 years and 8 months in federal prison
PPP/UI
$832k
Joseph Faubert
Bank fraud
Sentenced Imposed: 5 years probation
PPP
$778k
These COVID Fraud cases from the Orlando Division were handled by AUSAs John Gardella, Amanda Daniels, Chauncey Bratt, Emily Chang, Shannon Laurie, and Jennifer Harrington, and U.S. Attorney Roger Handberg
Jacksonville Division
Jacob Byrd
Wire fraud
Sentence Imposed: 5 years’ probation
PPP
$10k
Deconna Burke
Wire fraud
Sentence Imposed: 5 years’ probation
PPP
$20k
Desmond Williams
Wire fraud conspiracy, wire fraud
Sentenced Imposed: 5 years’ probation
PPP
$40k
Kenneth Landers
Wire fraud and illegal monetary transaction
Sentence Imposed: 1 year in federal prison followed by 1 year of supervised release
PPP
$1.4M
Christopher Daragjati
Wire fraud , Theft of government funds, and Aggravated identity theft
Sentenced imposed: 5 years’cisternino imprisonment followed by 3 years’ supervised release.
PPP
$150k
This COVID Fraud case from the Jacksonville Division was handled by AUSA Kevin Frein and Michael Coolican
Fort Myers Division
Casey Crowther
Bank fraud, false statement to a financial institution, illegal monetary transaction
Sentence Imposed: 3 years, 1 month in federal prison
PPP
$2.7M
Anthony Bruey
Amber Bruey
Conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, illegal monetary transactions
Sentence Imposed:
Anthony Bruey: 4 years, 3 months in federal prison
Amber Bruey: 4 years in federal prison
PPP/EIDL
$881k
Edrica Leann Watson
False statement to a lending institution
Sentence Imposed: 15 months in federal prison
PPP
$392k
Daniel Joseph Tisone
Wire fraud, bank fraud, money laundering, aggravated identity theft, possession of ammunition by a prohibited person
Sentence Imposed: 7 years in federal prison
PPP/EIDL/MSLP
$10.7M
Liliana Gonzalez
Wire fraud
Sentence Imposed: 5 years of probation with 18 months of home confinement
PPP
$169k
Al Clint LaRoche
Bank fraud
Sentence Imposed: Two years in federal prison
PPP
$1M
Denis Casseus
Bank fraud and illegal monetary transaction
Sentence Imposed: 2 years in federal prison followed by 3 years’ supervised release
PPP
$298k
Evan Graves
Wire fraud
Sentence Imposed: 18 months in federal prison
EIDL
$1.3M
Ismaelle Manuel
Bank fraud
Sentence Imposed: Credit for time served followed by 5 years supervised release
PPP
$280k
These COVID Fraud cases from the Fort Myers Division were handled by AUSAs Trent Reichling, Michael Leeman, Jesus M. Casa, Simon Eth, and Yolande Viacava
Ocala Division
Lavelle Harris
Wire fraud
Sentence Imposed: Two years and three months in federal prison
PPP
$1.2M
This COVID Fraud case from the Ocala Division was handled by AUSA Hannah Nowalk
Types of Fraud*
Economic Injury Disaster Loan (EIDL)
Paycheck Protection Program (PPP)
Unemployment Insurance (UI)
Main Street Lending Program (MSLP)
Emergency Rental Assistance Program (ERAP)
Health Care Fraud (HCF)
Memphis Man Sentenced for SNAP Fraud and Identity TheftRead the Press Release
Memphis, TN – Willie Williams, Jr., also known as Willie Gary, 56, of Memphis, was sentenced to 104 months in federal prison in connection with a years-long scheme of filing false applications for SNAP benefits and then selling them to members of the community. United States Attorney Kevin G. Ritz announced the sentence today.
According to information presented in court, from May 2020 through July 2023, Williams used the personally identifiable information of over 100 people to fraudulently obtain Supplemental Nutrition Assistance Program (SNAP) benefits. SNAP, formerly known as the Food Stamp Program, is a federally funded, national benefit program to help qualifying low and middle income families buy food, thus reducing hunger. Williams previously entered a guilty plea to Aggravated Identity Theft and Food Stamp Fraud.
As a part of the sentence imposed, Chief United States District Judge Sheryl H. Lipman also ordered Williams to pay $626,906 in restitution to the United States Department of Agriculture - Food and Nutrition Services and serve a three-year term of supervision after release from custody.
This case was jointly investigated by the Special Investigations Unit of the Tennessee Department of Human Services, Office of Inspector General; the United States Department of Agriculture, Office of the Inspector General; and the United States Postal Inspection Service.
United States Attorney Ritz said: “This defendant used other people’s identities to commit fraud on an important federal program. I deeply appreciate our federal and state partners for their work on this important prosecution. Our office will continue to use all the tools available to us to bring fraudsters to justice.”
“We are grateful for the partnerships with USDA/OIG, U.S. Postal Inspectors, and the U.S. Attorney’s Office for their guidance and assistance in pursuing prosecution of this SNAP Fraud case. TDHS-OIG continues to combat fraud, waste, and abuse in our public assistance programs, so that eligible recipients are protected,” said Richard Carr, Program Integrity Director for the TDHS’s Office of Inspector General.
“The United States Department of Agriculture, Office of Inspector General, actively investigates allegations of fraud in the Supplemental Nutritional Assistance Program (SNAP). This investigation serves as a warning to all individuals that SNAP Fraud and Identity Theft will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney’s Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer-funded programs,” said Miles Davis, Special Agent-in-Charge for USDA’s Office of Inspector General.
“This defendant used the U.S. Mail to take advantage of the Supplemental Nutrition Assistance Program (SNAP), which is a program developed to help families in need. This sentence will send a message that these crimes are serious and that our agency will continue to work to ensure these criminals are held accountable for their actions,” said Tommy D. Coke, Inspector in Charge for the United States Postal Inspection Service, Atlanta Division.
United States Attorney Kevin G. Ritz thanked Assistant United States Attorney Carroll L. André III and former Assistant United States Attorney Courtney Lewis, who prosecuted this case, as well as the law enforcement partners who investigated the case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
McAlester Resident Pleads Guilty to Illegal Possession of AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Arlo Christopher Jordan, age 26, of McAlester, Oklahoma, entered a guilty plea to an Information of one count of Felon in Possession of Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
The Information alleged that on or about January 11, 2024, Jordan knowingly possessed two rounds of Hornady-branded 270 ammunition after having been previously convicted of a crime punishable by more than one year in prison.
The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Federal Bureau of Investigation.
The Honorable Jason L. Robertson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Jordan was remanded into the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Michael E. Robinson represented the United States.
Marion County Man Pleads Guilty to Possessing Methamphetamine and Fentanyl with Intent to DistributeRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Terrance Maurice Washington (41, Ocala) has pleaded guilty to six counts of possession of a controlled substance (methamphetamine and fentanyl) with the intent to distribute. Washington faces a minimum mandatory sentence of 10 years, up to life, in federal prison on the five counts involving methamphetamine. On the remaining fentanyl offense, Washington faces a minimum mandatory penalty of 5 years, up to 40 years, in federal prison. His sentencing hearing is scheduled for October 18, 2024.
According to court documents, on multiple occasions between October 2023 and January 2024, Washington distributed methamphetamine and/or fentanyl to a confidential source who was cooperating with law enforcement. The drugs provided by Washington during the transactions ranged from gram quantities to upwards of a pound or more of methamphetamine. Washington bragged that the type of fentanyl he distributed was “dropping people.” Once law enforcement arrested Washington, a search at his residence revealed another two pounds of methamphetamine intended for distribution.
This case was investigated by Drug Enforcement Administration and the Marion County Unified Drug Enforcement Strike Team (UDEST). It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Man Sentenced to 30 Years in Prison for St. Louis County Cab Driver’s Fatal RobberyRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Monday sentenced a man who instigated the fatal robbery of a cab driver in Hazelwood, Missouri in 2022 to 30 years in prison.
Tywon Harris, now 21, was one of four teens involved in the robbery of Dewight Price, 54, on April 24, 2022. All four have pleaded guilty and been sentenced.
On April 24, 2022, after leaving a party in downtown St. Louis, Harris called for a cab. He and the three other teens had walked to a gas station in the 700 block of North Tucker Boulevard. Harris and Trishawn Jones were each armed with a semiautomatic handgun, but Harris gave his to Coron Dees to carry in a cross-body bag.
The four planned to take the taxi to a fake address near Jeremiah Allen’s home, then run away without paying. After learning that they would have to prepay for the ride, they began discussing plans to rob Price.
In court Monday, Assistant U.S. Attorney Jason Dunkel said Harris “took the lead in planning” the robbery, which led to everything that followed.
The teens told Price to drive to Hazelwood Central High School, thinking there would be no witnesses there at that time. Dees and Jones then robbed Price at gunpoint. After Price handed cash to Jones, Price grabbed a firearm he kept in his door. Allen warned the others that Price had a gun.
Price began to get out, but Harris opened his door, knocking Price to the ground. Jones saw Price’s gun and fired once, striking Price in the torso. The teens then ran away without aiding Price or calling for help.
Dees, now 21, and Allen, 20, pleaded guilty to a robbery charge. Jones, 20, and Harris pleaded guilty to one count of aiding and abetting in the commission of a murder.
Dees is serving a 17-year prison sentence. Jones was sentenced to 22 years in prison. Allen was sentenced to 12 ½ years in prison.
The St. Louis County Police Department and the FBI investigated the case. Assistant U.S. Attorney Jason Dunkel prosecuted the case.
Lincoln Man Sentenced for Methamphetamine DistributionRead the Press Release
United States Attorney Susan Lehr announced that Victor Aaron Gonzales, 39, of Lincoln, Nebraska, was sentenced on July 22, 2024, in federal court in Lincoln for conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine, 500 grams or more of meth mixture, and unspecified amounts of cocaine and marijuana; and possession with intent to distribute 50 grams or more of meth actual. Senior United States District Judge John M. Gerrard sentenced Gonzales to 240 months’ imprisonment on each count to run concurrently. There is no parole in the federal system. After Gonzales’s release from prison, he will begin a 5-year term of supervised release.
Information provided to law enforcement indicated Gonzales was involved in conspiracy to distribute meth, cocaine, and marijuana in the Lincoln area between February and November of 2022. He was held responsible for the distribution of more than six kilograms of met during that time.
On November 16, 2022, investigators obtained search warrants for two residences in Lincoln associated with Gonzales. Prior to executing one of the warrants at a residence which Gonzales shared with a girlfriend, investigators stopped Gonzales and searched his Jeep, finding a total of approximately 700 grams of meth mixture, later found to contain at least 660 grams of actual meth. During the search of the residence, investigators found a loaded rifle with a bump stock and ammunition along with scales, baggies, and a cash counter. On the following day, a search warrant was executed at a separate residence where Gonzales’s wife and children were living. At that location, marijuana, a scoop with meth residue, ammunition and over $69,000 in cash were found. The cash was later forfeited by the Federal Bureau of Investigation, (FBI).
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lee County Woman Sentenced to 10 Years in Prison for Role in Fentanyl and Methamphetamine Trafficking SchemeRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Christi Lynn Bien Aime (31, Alva) to 10 years in federal prison for attempting to possess with the intent to distribute 400 grams or more of fentanyl and 500 grams or more of methamphetamine. Bien Aime entered a guilty plea on March 27, 2024.
According to court records, in May 2021, Bien Aime solicited an acquaintance to receive a drug-laden package in the mail for her in exchange for cash. The package—which was shipped from California to Cape Coral, Florida, and addressed to a fake name—was intercepted in transit by agents from the Drug Enforcement Administration (DEA) before reaching its final destination. The package contained approximately 3½ kilograms of fentanyl, approximately 1½ kilograms of methamphetamine, and approximately one kilogram of p-Fluorofentanyl (a fentanyl analogue). DEA agents arranged to conduct a “controlled delivery” of the package and deliver it—after it was emptied of any real controlled substances—as it was originally intended to be delivered.
After an undercover DEA agent delivered the package to the residence in Cape Coral, Bien Aime’s acquaintance accepted the package and delivered it to a nearby gas station as she was instructed by Bien Aime. At the gas station, Bien Aime paid her acquaintance and opened the package, before being approached and detained by DEA agents.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Simon Eth.
Leader of $200 Million Ponzi Scheme Pleads Guilty to Mail and Wire Fraud Conspiracy and Faces 20 Years’ ImprisonmentRead the Press Release
MIAMI – Johanna Michely Garcia, 41, from Broward County, Fla., was the former Chief Executive Officer of MJ Capital Funding, LLC. On July 16, Garcia pled guilty to conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Sections 1349, 1343, and 1341. The conspiracy involved Garcia leading others, including Pavel Ramon Ruiz Hernandez, in an investment Ponzi fraud scheme totaling approximately $190,700,000.
According to court records, Garcia’s MJ Capital Funding was purportedly engaged in providing merchant cash advances, or MCAs, a type of short-term financing typically used by small businesses. Beginning in October 2020, and continuing through August 2021, Garcia conspired with others to fraudulently solicit money from investors to fund MJ Capital Funding’s MCAs. Garcia and her co-conspirators recruited other people to solicit investors for MJ Capital Funding’s investment offering and paid those recruiters commissions.
Court records state that Garcia and her co-conspirators, directly and indirectly, made false statements and fraudulent representations to investors concerning the nature of the MJ Capital Funding investment and the use of investor funds. Garcia and others falsely told investors that their money would be used to fund MCAs and that investor returns would be paid from the profits of MJ Capital Funding’s MCA business. However, the company made few loans and failed to earn anywhere near the profits it needed to pay the investors the promised returns. As a result, Garcia paid investors by running a large Ponzi fraud scheme, paying existing investors using new investor funds while misappropriating millions of dollars for her own personal benefit. Of the nearly $200 million raised, investors lost nearly $90 million.
According to Court records, after the FBI and Securities and Exchange Commission (SEC) effectively shut down MJ Capital Funding, in the fall of 2021, Garcia, Ruiz Hernandez, and others began operating a new Ponzi scheme that was identical to the MJ Capital Funding criminal enterprise. Garcia led this new scheme from its inception, up until her arrest, and after, while in Bureau of Prisons custody. The entities utilized by Garcia and her co-conspirators for the new fraud scheme included New Beginning Global Funding LLC, New Beginning Capital Funding LLC, Lion Heart Capital Group L.L.C., GMR Remodeling LLC, and Group Management LLC. Similar to the MJ Capital Funding fraud, Garcia and her partners told victims that their money would be used to fund commercial loans. In truth, the money raised was used to pay off previous investors, and fund Garcia and her coconspirators' lifestyles.
Garcia’s sentencing hearing is currently set for Sept. 20, 2024. U.S. District Court Judge Jose E. Martinez will determine Garcia's sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Ruiz Hernandez was charged in August 2022, pled guilty in April 2023, and was sentenced in September 2023 to 110 months’ imprisonment, followed by three years of supervised release.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Special Agent in Charge Jeffrey B. Veltri, FBI Miami, made the announcement.
FBI Miami investigated this case. SEC’s Miami Regional Office and Florida’s Office of Financial Regulation provided invaluable assistance. Assistant U.S. Attorney Roger Cruz is prosecuting the case. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20350.
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Lawton Man Sentenced to Serve 11 Years in Federal Prison for Possession of Drugs and FirearmRead the Press Release
OKLAHOMA CITY – SKYLER LEE PASLEY, 35, of Lawton, has been sentenced to serve 132 months in federal prison for possession of methamphetamine with intent to distribute and illegal possession of a firearm after a previous felony conviction, announced U.S. Attorney Robert J. Troester.
On September 6, 2023, Pasley was charged by Superseding Information with possession of methamphetamine with intent to distribute and with being a felon in possession of a firearm. An affidavit in previously filed criminal complaint alleges that on September 15, 2022, officers with the Lawton Police Department observed a vehicle driving recklessly. A state-certified K-9 was deployed during a traffic stop on the vehicle and alerted to the presence of drugs inside. During a subsequent search of his person, Pasley, the driver and sole occupant of the vehicle, was found to have a firearm in his waistband, methamphetamine in his sock, and various other drugs, including cocaine and fentanyl, wrapped in his hair.
Public record reflects that Pasley has a previous felony conviction for embezzlement in Comanche County District Court case number CF-2006-609. He was also convicted of possession of marijuana with intent to distribute, three counts of being a felon in possession of a firearm, interference with commerce by robbery, and carrying and brandishing a firearm during a crime of violence in Western District of Oklahoma District Court case number CR-08-289-R.
On September 15, 2023, Pasley pleaded guilty to the Superseding Information, admitting to possession of methamphetamine with intent to distribute and to possessing a firearm despite his felony convictions.
At the sentencing hearing on July 17, 2024, Chief U.S. District Judge Timothy D. DeGiusti sentenced Pasley to serve 132 months in federal prison, followed by five years of supervised release. In announcing the sentence, the Court noted the need to deter similar conduct and to protect the public.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lawton Police Department. Assistant U.S Attorney Danielle M. Connolly prosecuted the case.
Reference is made to public filings for additional information.
Last Defendant Pleads Guilty in Bank Fraud Conspiracy Targeting Capital Region Credit UnionRead the Press Release
ALBANY, NEW YORK – Evan Cutler, age 25, of Queensbury, New York, pled guilty today to conspiring to commit bank fraud and aggravated identity theft. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
In a plea before United States District Judge Anne M. Nardacci, Cutler admitted that between February and October 2022, he organized a conspiracy to defraud SEFCU by, among other things, applying for loans using stolen identities of other people, and withdrawing the loaned money in cash. Cutler admitted he and other members of the conspiracy applied for loans in other people’s names using fake New York driver licenses with their photographs but bearing the names and dates of birth of other people, and the proceeds were given to co-conspirator Allahson Allah. The conspirators also obtained customer account information from Caeshara Cannon, of Albany, a former Member Service Manager at SEFCU, and used that information to create counterfeit checks, which were presented for negotiation at SEFCU branches in the Northern District of New York.
Cutler further admitted that the conspiracy netted $113,800 in fraudulent cash withdrawals.
Cutler was previously charged by an indictment, along with Allahson Allah, Davon Parson, and Dnauticah Taylor-Sterman, all of Albany. Cutler is the last defendant in the conspiracy to plead guilty. Cannon has pled guilty as well.
At sentencing on November 19, 2024, Cutler faces at least 2 years and up to 32 years in prison, a fine of up to $1.25 million, and a supervised release term of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
HSI investigated the case, with assistance from the Bethlehem Police Department. Assistant United States Attorney Benjamin S. Clark is prosecuting this case.
Large-Scale Counterfeit Pill Manufacturer Charged with Drug Offenses and Pandemic Loan FraudRead the Press Release
BOSTON – A Cambridge man was arrested on July 18th in connection with an ongoing investigation of counterfeit pills containing fentanyl and methamphetamine. Over the course of the past four years, the defendant is alleged to have been responsible for the manufacturing of over 200 kilograms of counterfeit pills.
Schuyler Oppenheimer, a/k/a “SK,” a/k/a “Michael Sylvain,” 33, of Cambridge was charged with possession of 500 grams and more of a mixture and substance containing a detectable amount of methamphetamine and two counts of wire fraud. The defendant appeared in U.S. District Court and was detained pending further court hearings.
“The sprawling manufacturing of illegal drugs alleged in this case is as dangerous as it is appalling. It is alleged that Mr. Oppenheimer illegally manufactured hundreds of kilograms of lethal drugs in order to continue to saturate our streets with deadly drugs,” said Acting United States Attorney Joshua S. Levy. “Our office is dedicated to stopping the flow of fentanyl into our communities, which, as evidenced by these charges, includes shipments from China. This case is yet another example of the critical collaboration between federal law enforcement partners and the Massachusetts State Police to prevent illegal narcotics from reaching our streets.”
“The FBI’s North Shore Gang Task Force has arrested Schuyler Oppenheimer – an alleged large-scale counterfeit pill manufacturer – who’s accused of producing a massive number of pills that looked like regular prescription Adderall or Percocet, but in reality, contained methamphetamine or fentanyl. Each alleged sale was a potentially deadly transaction for customers – or anyone else who stumbled upon these deceptive drugs,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Drug dealers making money off the misery of others is bad enough, let alone this dangerous bait and switch. Taking Oppenheimer off the street should send a message that the FBI and our law enforcement partners will not cede our cities to drug manufacturers, traffickers, and other violent criminals. We’re working hard every day to make our communities safer.”
“Fentanyl and methamphetamine being distributed in the form of fake pills is causing tremendous damage to our community,” said Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “Those who distribute these drugs are endangering the safety of the citizens of the Massachusetts. The DEA will continue to work each day alongside our law enforcement partners to identify those who are responsible for distributing deadly drugs.”
“The defendant is accused of crimes that reflect his alleged disregard for the public's safety and wellbeing. He allegedly spearheaded a clandestine lab operation that included evidence of fentanyl precursors, and bore the potential to destroy countless lives,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England. “HSI New England is proud to stand alongside our law enforcement partners at the state, local, federal levels in confronting the deadly drug epidemic directly and forcefully.”
“Oppenheimer’s sophisticated operation has shown the utter disregard for the people in our communities.” said John Mawn, Colonel of the Massachusetts State Police. “I applaud the tireless work by the members of the MSP and our Law Enforcement partners assigned to the Task Force. Oppenheimer’s arrest will hopefully make a significant impact to the affected communities and stop the destruction of lives.”
Oppenheimer is alleged to be technically skilled in the chemical processes used in the synthesis of fentanyl, the compounding of controlled substances for distribution, and the manufacturing of counterfeit pills. As alleged in court documents, recipes, pill press molds used in the manufacturing process, documents and invoices demonstrating that Oppenheimer purchased numerous pill presses and parts for pill presses from online vendors were seized. It also alleged multiple packages shipped from China to Oppenheimer and various female associates of Oppenheimer that contained pill press parts, were also seized.
According to court documents, through the review of orders and invoices from companies selling powders and other substances used in the pill manufacturing process, it is alleged that since 2019, Oppenheimer obtained over 200 kilograms of these filler powders. According to the recipes recovered during the investigation, when manufactured into counterfeit pills, 200 kilograms of filler powder equates to millions of counterfeit pills containing fentanyl and methamphetamine.
Additionally, Oppenheimer is alleged to have communicated directly with an illegal chemical supplier based in China. During this conversation, Oppenheimer allegedly inquired about the availability of controlled substances and fentanyl precursor chemicals and sought to purchase kilogram quantities of these substances. Fentanyl precursor chemicals are substances that can be used to synthesize raw fentanyl in a laboratory setting. It is alleged that Oppenheimer sought to synthesize his own fentanyl through the importation of these fentanyl precursor chemicals.
Oppenheimer is also alleged to have obtained over $40,000 through two fraudulent Paycheck Protection Program loan applications that were submitted in April 2021 over the internet. Oppenheimer is also alleged to have submitted false statements concerning his income through self-employment for the 2019 tax years and provided false tax return documents substantiating that income.
During the execution of a search warrant on Parker Street in Cambridge, over five kilograms of suspected counterfeit Adderall pills containing methamphetamine and a loaded firearm were seized. Based on prior felony convictions, Oppenheimer is prohibited from possessing firearms.
The charge of possession with intent to distribute 500 grams or more of methamphetamine provides for a sentence of at least ten years and up to life in prison, five years and up to life of supervised release and a fine of up to $10,000,000. The charge of wire fraud provided for a maximum penalty of up to 20 years, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.Acting US Attorney Levy; FBI SAC Cohen; DEA Acting SAC Belleau; HSI SAC Krol; Jennifer B. De La O, Director of Field Operations, U.S. Customs and Border Protection; and Interim Colonel Mawn, Jr of the Massachusetts State Police made the announcement. Valuable assistance was provided by the Cambridge Police Department. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime and Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kingsport Man Sentenced to over 21 Years in Prison After Jury Trial ConvictionRead the Press Release
GREENEVILLE, Tenn. – On July 22, 2024, Eric Eugene Robinson, 55, of Kingsport, Tennessee, was sentenced to 262 months imprisonment by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville. Following his incarceration, Robinson will be on supervised release for a period of five years.
Robinson was convicted by a federal jury of being a felon in possession of a firearm in violation of 18 U.S.C. §922(g)(1), following a two-day trial in April 2024.
The evidence and testimony presented during the trial showed that in early September 2020, surveillance was conducted at the Dorothy Street residence, which determined that Robinson, a convicted felon, was in possession of a firearm. A search warrant was executed at the residence by the Kingsport Police Department and, during the search, a 9mm pistol, with a loaded magazine, was located beneath a couch in the living room of the residence. An agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) testified that the firearm was manufactured in Brazil and imported into Bainbridge, Georgia, before ultimately arriving in Tennessee.
United States Attorney Francis M. Hamilton, III of the Eastern District of Tennessee made the announcement.
Kingsport Police Department officer Mike Slater, formerly a Task Force Officer assigned to the ATF, led the investigation with assistance from the Tennessee Bureau of Investigation and the ATF.
Assistant United States Attorney B. Todd Martin and Special Assistant United States Attorney AnCharlene Davis represented the United States at trial.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options for prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crimes face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
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Keystone Heights Multi-Convicted Felon Sentenced to 5 Years for Possessing AmmunitionRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced Allen Tereal Grimes (34, Keystone Heights) to 5 years in federal prison for possessing ammunition as a convicted felon. Grimes was also ordered to forfeit the ammunition, which was traceable to his offense. Grimes made his initial appearance in federal court on March 4, 2024, and the court ordered him detained. Grimes entered a guilty plea on April 10, 2024.
According to court records, on August 11, 2023, Grimes was in possession of Winchester 9mm ammunition, among other ammunition. At the time of the incident, Grimes had seven prior felony convictions, including battery on a law enforcement officer, resisting arrest with violence, fleeing and eluding a police officer, felony battery, and assault with intent to commit to a felony. As a previously convicted felon, Grimes is prohibited from possessing ammunition under federal law.
This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It was prosecuted by Assistant United States Attorneys Kevin C. Frein and Kirwinn Mike.
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.
Kentucky Man Charged with Federal Hate Crime and Firearm Offenses for Threats Against Palestinian AmericanRead the Press Release
A Kentucky man was arrested today and charged with federal hate crime and firearms offenses for threatening a Palestinian American man with a loaded gun.
According to the indictment that was unsealed this morning, on or about March 28, Melvin P. Litteral III used force or the threat of force to intimidate and interfere with the victim – a Palestinian American man and practicing Muslim identified in the indictment by the initials O.S. – because of O.S.’s race, color, religion and/or national origin, and because O.S. was enjoying the goods, services and facilities of a local restaurant. The indictment also includes a weapons charge, alleging that the defendant brandished a firearm during the offense.
If convicted of the hate crime offense, Litteral faces a maximum penalty of 10 years in prison and a fine of up to $250,000. If convicted of the firearms charge, Litteral faces a mandatory minimum penalty of seven years in prison, to run consecutively to any sentence imposed for the hate crime offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.
The FBI Louisville Field Office is investigating the case.
Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Katherine G. DeVar of the Civil Rights Division are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kanawha County Man Sentenced to Prison for Conspiring to Fraudulently Obtain Unemployment and COVID-19 BenefitsRead the Press Release
CHARLESTON, W.Va. – Joshua Lambert, 36, of St. Albans, was sentenced today to six months in prison, to be followed by three years of supervised release, and ordered to pay $10,616 in restitution for conspiring to steal public money, property or records. Lambert admitted that he fraudulently obtained $10,616 in unemployment benefits, including COVID-19 supplementary funds, while in state and federal custody.
According to court documents and statements made in court, Lambert had been receiving legitimate unemployment benefits from June 2020 until on or about September 28, 2020, when he was incarcerated on state and federal charges. Lambert admitted that he conspired with a family member to receive unemployment benefits fraudulently while he was incarcerated. The family member accessed the WorkForce West Virginia website from a St. Albans residence for 32 consecutive weeks and falsely certified that Lambert was entitled to unemployment benefits. WorkForce West Virginia administers the unemployment compensation program for the State of West Virginia. Lambert admitted that he was not entitled to the benefits because he was incarcerated and unavailable to work.
Lambert was released from incarceration on or about April 8, 2024. Lambert admitted that he fraudulently applied for and received more than $10,616 in unemployment compensation benefits from at least September 2020 through at least May 2022. Lambert further admitted that the unemployment benefits he fraudulently obtained included supplementary funds provided by the Federal Pandemic Unemployment Compensation Program (FPUC) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Lambert has fully paid the $10,616 in court-ordered restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the WorkForce West Virginia Integrity Section and the Litigation Financial Analyst with the U.S. Attorney’s Office.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Andrew J. Tessman prosecuted the case.
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 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-39.
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Georgia Man with Seven Prior Felony Convictions Pleads Guilty to Armed Drug Trafficking ChargesRead the Press Release
ATHENS, Ga. – A Northeast Georgia resident with a lengthy criminal history pleaded guilty to armed drug trafficking charges in federal court today.
Mandrell Antwoin Hull, 43, of Winterville, Georgia, pleaded guilty to one count of possession with intent to distribute cocaine and one count of possession of a firearm by a convicted felon before U.S. District Judge Tilman E. Self, III on July 22. Hull faces a minimum mandatory of 15 years in prison up to a maximum sentence of life in prison. His sentencing date will be determined by the Court. There is no parole in the federal system.
“Repeat offenders who continually disregard the law and whose actions harm our communities must be held accountable,” U.S. Attorney Peter D. Leary. “Our office will continue to do everything in our power to support the efforts of local, state and federal law enforcement to uphold the law and keep our neighborhoods safe.”
"Criminals like Hull continue to plague our communities with blatant disregard for the safety of others and reckless indifference to the law. It is only through our local and federal partnerships that we are able to put a stop to these violent repeat offenders,” said Robert Gibbs, Senior Supervisory Special Agent of FBI Atlanta's Athens office. “This case is another example of how the FBI and our law enforcement partners are dedicated to keeping the streets of Georgia safe for everyone in our community.”
According to court documents and statements referenced in court, Hull was serving supervised release for a 2018 federal conviction for marijuana distribution in Case No. 3:17-CR-24-CAR. On April 11, 2023, officers with the United States Probation Office (USPO) reached out to the FBI in Athens to request their assistance in conducting a search of Hull’s residence in Oglethorpe County, Georgia, because USPO believed that Hull was storing illegal drugs inside his residence. That same day, agents and officers searched his Winterville property and located cocaine, $32,826 in drug proceeds and a loaded 9mm pistol. Records show that Hull has five prior felony convictions in the Superior Court of Athens-Clarke County and one prior felony conviction in the Superior Court of Gwinnett County, in addition to his prior federal felony conviction for which he was serving supervised release at the time of this crime. It is illegal for a convicted felon to possess a firearm.
This case is a 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 of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities and measuring the results.
The case was investigated by the FBI Athens Resident Agency Middle Georgia Safe Streets Gang Task Force and the Oglethorpe County Sheriff’s Office.
Assistant U.S. Attorney Mike Morrison is prosecuting the case for the Government.
Four People Sentenced to Serve 25 Years in Federal Prison Collectively after More Than 120 Pounds of Methamphetamine is Recovered from VehicleRead the Press Release
OKLAHOMA CITY – CHRISTOPHER WARREN DAVIS, 45, of Springfield, Illinois, has been sentenced to serve 180 months in federal prison for his part in trafficking more than one hundred pounds of methamphetamine, announced U.S. Attorney Robert J. Troester.
On February 21, 2023, a federal grand jury returned a two-count Indictment against Davis and three other co-defendants, charging them with a drug conspiracy and with possession of methamphetamine with intent to distribute. According to public record, on February 5, 2023, members of the Oklahoma City Police Department’s Criminal Oklahoma Interdiction of Central Oklahoma (CITCO) unit stopped two vehicles, both registered out of state and traveling together in a suspicious manner, and located approximately 123 pounds of methamphetamine in one of the vehicles.
On August 9, 2023, Davis pleaded guilty to Count 2 of the Indictment and admitted to possessing 500 grams or more of methamphetamine with intent to distribute.
At the sentencing hearing on July 18, 2024, Chief U.S. District Judge Timothy D. DeGiusti sentenced Davis to serve 180 months in federal prison, followed by five years of supervised release.
The three other defendants charged in this case also pled guilty to possession of methamphetamine with intent to distribute and have been sentenced as follows:
- Kanesha L. Gladney, 28, was sentenced to serve 24 months in federal prison, followed by three years of supervised release.
- Tatyanna Marie Johnson, 26, was sentenced to serve 24 months in federal prison, followed by three years of supervised release.
- Anthony Allison, 42, was sentenced to serve 72 months in federal prison, followed by four years of supervised release.
This case is the result of an investigation by the FBI Oklahoma City Field Office, the Oklahoma City Police Department, and the Oklahoma City Sheriff’s Office. Assistant U.S. Attorneys Danielle M. Connolly and Travis Leverett prosecuted the case.Reference is made to public filings for additional information.
Former Teacher Admits Producing Child Pornography with Hidden CamerasRead the Press Release
ST. LOUIS – A former St. Louis County, Missouri teacher on Monday admitted possessing child pornography and producing child pornography with hidden cameras.
Joseph R. Gutowski, 42, pleaded guilty in U.S. District Court in St. Louis to one count of producing of child pornography and one count of receiving child pornography.
Gutowski admitted hiding cameras in his office at Lafayette High School in Wildwood and in his home. He secretly filmed minors and traded some of those images with others online, his plea agreement says. He was also a member of an underground child pornography group on Mega, a cloud storage service, and traded videos he’d secretly recorded of an adult in the “Club Creep” group on Mega.
Gutowski tried to delete child sexual abuse material from nearly all of his electronic devices before they were seized by law enforcement, his plea says. He deleted 25,377 files from his Dropbox account alone.
Gutowski is scheduled to be sentenced on Oct. 23, 2024. The production charge carries a potential penalty of 15 to 30 years in prison and the receiving charge carries a potential penalty of five to 20 years in prison.
The FBI and the St. Louis County Police Department Special Investigations Unit investigated the case. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Employee Sentenced for Robbing Danville Food LionRead the Press Release
ROANOKE, Va. – A former Danville Food Lion employee, who pulled a gun on a Food Lion cashier and robbed the store of more than $1,200 in cash, was sentenced this week to 79 months in federal prison.
Christopher Rashard Harris, 31, previously pled guilty to one count of Hobbs Act Robbery.
According to court documents, on June 28, 2023, Harris entered the Food Lion grocery store where he used to be employed, placed two bags of Cheetos on the counter, and gave the cashier a $1 bill and some change. When the cashier opened the register, Harris pulled out a firearm, pointed it at the cashier, and twice told the cashier to “back the fu*k up.” The cashier put his hands up and backed away from the register while Harris grabbed the entire cash drawer and ran out with the contents, approximately $1,217.
On July 6, 2023, law enforcement arrested Harris who confessed to robbing the store and described where he had abandoned the cash drawer, which was later recovered.
United States Attorney Christopher R. Kavanaugh and Craig B. Kailimai, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Jason M. Scheff 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.
Former CEO of Startup Software Company Pleads Guilty to Payroll Tax Fraud SchemeRead the Press Release
A New Hampshire man pleaded guilty today to not paying more than $14 million in employment taxes and not filing personal tax returns.
According to court documents and statements made in court, Andrew Park, 49, of Bedford, was the co-founder and CEO of a startup technology company. Park was responsible for all financial matters related to the company, including for filing the company’s quarterly employment tax returns and collecting and paying over Social Security, Medicare and income taxes withheld from the employees’ wages to the IRS, as well as the Social Security and Medicare taxes the company owed.
He was also responsible for collecting and paying over state and local employment taxes to those respective governments. From the company’s founding in 2014 through the third quarter of 2021, Park withheld these federal, state and local taxes from the employees’ wages but did not pay them over as required by law. He also did not pay over the portion of the employment taxes that the company owed. Park did so even though a payroll service company that he hired to process the employees’ payroll regularly notified him that the taxes were due and in more than one instance was notified by an employee that the amount paid to Social Security listed on her W-2 did not match what was reported by the Social Security Administration.
From 2013 through 2020, Park also did not file individual tax returns as required by law, despite the fact that he paid himself a salary of approximately $250,000 each year.
In total, Park caused a tax loss to the IRS exceeding $14 million, as well as additional losses to state and local taxing authorities.
He is scheduled to be sentenced on Nov. 14 and faces a maximum penalty of five years in prison for the charge of willful failure to account for and pay over payroll taxes, and one year in prison for the charge of willful failure to file a tax return. Park also faces additional penalties including supervised release and fines, as well as the payment of restitution to the IRS and other taxing entities. 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 Jane E. Young for the District of New Hampshire made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Eric Powers of the Tax Division and Assistant U.S. Attorney Matthew Hunter for the District of New Hampshire are prosecuting the case.
Fentanyl Trafficker Who Smuggled Fake Oxycodone from LAX to Dulles in Laundry Product Bottles Sentenced to 10+ YearsRead the Press Release
WASHINGTON – Andre Malik Edmond, 23, of Temple Hills, Maryland, was sentenced today to 130 months in prison for participating in a massive fentanyl trafficking conspiracy that shipped hundreds of thousands of fake oxycodone pills from Southern California to destinations throughout the United States, including the District. Edmond, aka “Draco,” was one of 24 co-defendants arrested over the course of 2023 in D.C., Virginia, Maryland, San Diego, and Los Angeles and charged in the conspiracy.
The sentencing was announced by U.S. Attorney Matthew M. Graves, DEA Special Agent in Charge Jarod Forget of the DEA Washington Division, Inspector in Charge Damon Wood of the US Postal Inspection Service Washington Division (USPIS), Special Agent in Charge Craig B. Kailimai of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Edmond pleaded guilty before U.S. District Judge Colleen Kollar-Kotelly on February 28 to conspiracy to distribute 400 grams or more of fentanyl. In addition to the prison term, Judge Kollar-Kotelly ordered Edmond to serve five years of supervised release.
The DEA launched the investigation after a young woman in Washington, D.C., Diamond Lynch, took one pill and died as a result of acute fentanyl intoxication. In addition to investigating and prosecuting the death resulting case,[1] law enforcement followed the evidence and uncovered a vast network of traffickers who transported fentanyl from Mexico to Los Angeles to the District of Columbia. Since then, investigators have seized more than 450,000 fentanyl pills, 1.5 kilograms of fentanyl powder, and 30 firearms.
According to court documents, Edmond and his co-conspirators smuggled the pills on flights to the DMV in luggage and personal carry-on items, or by shipping them through the mail using the U.S. mail or commercial carriers.
In one instance, Edmond informed his Los Angeles-based supplier he wanted to purchase 75,000 fentanyl pills at 39 cents per pill. Edmonds flew to Southern California to complete the deal in January 2023. On January 30, 2023, DEA agents conducted an interdiction of a checked bag at Dulles International Airport that had just arrived on a flight from LAX. Edmond and his traveling companion, a minor, were both passengers on the flight. The bag was checked in the traveling companion’s name and was searched upon arriving at the baggage carousel. Packed in the bag were six Downy Unstopables containers—all of which were filled with fentanyl-laced counterfeit oxycodone pills, totaling more than 70,000 pills and weighing about 8.2 kilograms. As agents searched the bag, Edmond attempted to flee before law enforcement apprehended him in a parking lot.
Then, before being charged in this case, while Edmond was on pretrial release for state charges in Maryland, he continued to traffic drugs. On June 1, 2023, federal law enforcement officers executed a search warrant at Edmond’s home and recovered about 1.6 kilograms of fentanyl-laced fake oxycodone pills. The majority of the pills were found inside a Downy Unstopables container, with the remainder packaged in several baggies.
This investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Today’s sentencing comes after the following resolutions by other co-defendants in this case.
DEFENDANT
AGE
LOCATION
CHARGES/SENTENCE
Raymond Nava, Jr.
20
Bell Gardens,
California
Pleaded guilty 5-9-24, conspiracy to distribute fentanyl.
Ulises Aldaz
28
Bell Gardens,
California
Sentenced 6-28-24, to 95 months in prison for conspiracy to distribute fentanyl.
Marvin Anthony Bussie,
aka “Money Marr”
21
Washington, D.C.
Sentenced 6-28-24 to 120 months in prison for conspiracy to distribute 400 grams or more of fentanyl.
Marcus Orlando Brown
28
Washington, D.C.
Pleaded guilty 3-11-24 to conspiracy to distribute fentanyl.
Columbian Thomas, aka
"Cruddy Murda”
26
Washington, D.C.
Pleaded guilty 6-4-24 to conspiracy to distribute fentanyl.
Wayne Rodell Carr-Maiden
29
Washington, D.C.
Sentenced 4-29-24 to 45 months in prison for conspiracy to distribute 40 grams or more of fentanyl.
Andre Malik Edmond,
aka “Draco”
23
Temple Hills, Maryland
Sentenced 7-22-24, to 130 months in prison for conspiracy to distribute 400 grams or more of fentanyl.
Treyveon James Johnson,
aka “Treyski”
20
Alexandria, Virginia
Pleaded guilty 4-19-24 to conspiracy to distribute 40 grams or more of fentanyl.
Paul Alejandro Felix
25
Glendale,
California
Pleaded guilty 7-1-24 to conspiracy to distribute 400 grams or more of fentanyl.
Raul Pacheco Ramirez
30
Long Beach,
California
Pleaded guilty 7-19-24 to conspiracy to distribute fentanyl.
The prosecutions followed a joint investigation by the DEA Washington Division and the U.S. Postal Inspection Service, in partnership with the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with additional support from the DEA Los Angeles, San Diego, and Riverside Field Offices, the Federal Bureau of Investigation’s Washington Field Office, and the Charles County, Maryland Sheriff’s Office. Valuable assistance was provided by the U.S. Attorney’s Offices in the Central and Southern Districts of California, the Eastern District of Virginia, and the District of Maryland.
The case is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey, Solomon S. Eppel, and Iris McCranie, of the Violence Reduction and Trafficking Offenses (VRTO) Section.
23cr73
[1] https://www.justice.gov/usao-dc/pr/brother-and-sister-sentenced-drug-conspiracy-involving-fentanyl-sales
Felon Sentenced to 95 Months in Federal Prison for Distributing Crack Cocaine, the Illegal Possession of Four Firearms, Ammunition, a Machine Gun Conversion Device, and Violating Federal Supervised ReleaseRead the Press Release
CONCORD – A Manchester man was sentenced today in federal court in connection to his distribution of crack cocaine and being a felon in possession of a firearm, ammunition, and a machine gun conversion device (otherwise known as a “Switch”), U.S. Attorney Jane E. Young announces.
Joseph Taylor, 34, was sentenced by U.S. District Court Judge Paul J. Barbadoro to 95 months in federal prison. Taylor was sentenced to a total of 77 months on one count of drug distribution, one count of felon in possession of a firearm and ammunition, and one count of possession of an unregistered firearm – the Switch. Taylor was also sentenced to a consecutive sentence of 18 months for violating the conditions of his supervised release in committing these crimes.
“The defendant, a serial felon, was undeterred by his previous federal convictions and supervised release,” said U.S. Attorney Jane E. Young. “Taylor’s drug sales coupled with his illegal possession of firearms, ammunition, and a Switch has resulted in his incarceration in federal prison for more than 7 years, thus protecting the community from his unrelenting criminal conduct.”
"Possession of firearms by convicted felons is inherently dangerous for society," said Special Agent in Charge James M. Ferguson, ATF Boston Field Division. "But that danger increases exponentially when prohibited individuals possess firearms containing switches that convert semi-automatic weapons into machine guns. Within a matter of a few seconds, such firearms can fire multiple rounds with a single squeeze of the trigger. Today’s sentence should send a clear message that anyone who possesses a machine gun conversion device will be prosecuted federally and face serious consequences."
On three occasions in November 2023 and January 2024, Taylor sold crack cocaine to an individual who was cooperating with the Manchester Police Department. When law enforcement searched Taylor’s residence, they found money that had been used in the controlled buys, four firearms, ammunition, magazines and other firearm accessories, and a 3D-printed Switch. One of the firearms had previously been reported to the Manchester Police Department as stolen. Taylor did not register the machine gun conversion device (Switch) on the National Firearms Registration and Transfer Record (NFRTR) as required by the National Firearms Act. Taylor had previously been convicted of four felonies and was therefore prohibited from possessing firearms and ammunition. At the time he committed these crimes, Taylor was on supervised release for a prior federal conviction for being a felon in possession of a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorney Matthew T. Hunter and John Kennedy prosecuted the case.
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Fake Concert Promoter Sentenced to 57 months in Prison for Nearly $3 million Fraud Scheme Involving Identity Theft and Bogus Music ConcertsRead the Press Release
MIAMI – On July 17, Terronce Morris, 42, the leader of a two-man fraud scheme, was sentenced to 57 months in federal prison on conspiracy to commit mail fraud and wire fraud, and aggravated identity theft charges.
Morris, of Missouri City, Tex., pled guilty on Feb. 13 to conspiring with Blake Kelly, 37, of Los Angeles, Calif., in a fraud scheme involving bogus music concerts with famous artists, including J.B., B.E., and P.M. Kelly had previously pleaded guilty to the same conspiracy, on Jan. 9. Morris and Kelly also pleaded guilty to aggravated identity theft for forging the signature and using the identity of music artist J.B. on false and fraudulent concert contracts.
According to the factual proffer and other court documents, between December 2019 and March 2020, Morris and Kelly fraudulently obtained approximately $1,350,000 from victim J.R. Morris and Kelly persuaded the victim to give them the money for the purportedly production of a music festival, featuring J.B., P.M., B.E., and other music recording artists. Morris and Kelly created several false and fraudulent concert performance contracts forging the signatures of the music recording artists. Morris also created false and fraudulent email accounts that he used to pose as if the music recording artists themselves had sent the signed contracts to Kelly and himself. Additionally, during a video call with the victim, Morris and Kelly had an accomplice pose as J.B. to trick the victim into believing that J.B. had agreed to perform at the concert series.
Morris continued his fraud scheme after receiving several cease and desist letters from the recording artists' attorneys. Just a few months after stealing victim J.R.’s $1,350,000, in October 2020, Morris used more fake and forged J.B. contracts that he created to trick another victim, A.M., out of $500,000. On Nov. 19, 2020, Morris sent victim A.M. a false, fake, and fraudulent B.E. contract from his email account. Relying on these bogus contracts, victim A.M. sent Morris a $250,000 check for the anticipated performance, and Morris quickly deposited those funds and as in the case of victim J.R., Morris used those funds on himself and not for a concert featuring musical artists.
After stealing victim A.M.'s money, in May 2021, to as late as December 2023 (post-arrest), Morris stole an additional $850,000 from two more victims, W.P. and S.H. On July 27, 2021, Morris sent victim W.P. an email with another forged and bogus J.B. contract, this time claiming that Morris secured the musical artist's signature in person. Morris wrote in the email, "I told you I was going to get it done!!!!" And just like victim J.R., victim W.P., drawing upon his and victim S.H.'s money, sent Morris a check made payable to "J.B.," in the amount of $250,000. Morris, without any authority, signed the back of the check, deposited it in his own checking account, and spent it on himself.
Morris, free on bond, met with victim W.P. in December 2023 (post-arrest) and promised him that the J.B. concert would go on someday in the near future. In yet another separate, yet related instance, in November 2021, Morris met with victim M.P and received a $350,000 cashier’s check in the name of J.B on behalf of victims N.V. and J. F. Morris again claimed that he represented artist J.B. and that the $350,000 was to procure his performance on a live streaming event during the Covid-19 pandemic. Morris then committed the aggravated identity theft of a second J.B., in that in December 2021, he opened a bank account in Texas, using the personal identifying information of a victim named J.B., who shares the same name as the musical artist, J.B.
The total fraud loss from Morris’ musical artist fraud scheme is close to $3,000,000. Morris and Kelly used the fraudulently obtained money to enrich themselves and finance a lavish lifestyle for themselves and their accomplices, which included traveling, purchasing luxury goods, paying for luxurious services, and dining at high-priced restaurants.
On March 13, Kelly was sentenced to 13 months in federal prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, made the announcement.
FBI Miami investigated the case. Assistant U.S. Attorneys Roger Cruz and Joan Silverstein prosecuted it.
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 https://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 https://www.flsd.uscourts.gov/ or at http://pacer.flsd.uscourts.gov under case number 23-cr-60118.
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Dade City Babysitter Gets Maximum Sentence for Producing Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Olejuwan Lamar Steele (30, Zephyrhills) to 30 years in federal prison, followed by a lifetime of supervised release, for production of child sex abuse material. The court also ordered Steele to pay $3,000 in restitution to the victim and register as a sex offender. Steele entered a guilty plea on April 17, 2024.
According to court documents, Steele was a babysitter in the Dade City community in Pasco County. On one occasion in 2022, while babysitting a two-year-old child, Steele created videos of child sexual abuse material of the victim and shared them on the internet via live-video.
“This babysitter exploited the innocence of a child in his care, betrayed the trust placed in him, and violated the sanctity of childhood itself,” said Homeland Security Investigations Tampa Assistant Special Agent in Charge Micah McCombs. “Through HSI’s law enforcement partnership with the Pasco Sheriff’s Office, this predator will now be held accountable for his vile actions against a child.”
This case was investigated by Homeland Security Investigations—Tampa with substantial assistance from the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Erin Claire Favorit.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Convicted Felon Sentenced to over 17 Years for Firearm and Drug CrimesRead the Press Release
Memphis, TN – A federal judge recently sentenced Desmond Woods, 43, of Memphis to over 17 years in federal prison for possession of cocaine with the intent to distribute, being a convicted felon in possession of a firearm, and possession of a firearm during the commission of a crime. Kevin G. Ritz, United States Attorney for the Western District of Tennessee, announced the sentence today.
According to court documents, in October 2020, Woods was stopped by security guards at a local apartment complex for loitering. Upon detaining Woods and searching his belongings, the guards found a Glock 22 caliber pistol, approximately 17 grams of cocaine, and a digital scale. Woods was arrested by the Memphis Police Department (MPD).
In a second incident, in July 2021, security guards at a different apartment complex attempted to contact Woods, again, for loitering. After a brief chase, the guards detained Woods, searched him, and found an API .45 caliber pistol, a Smith & Wesson .40 caliber pistol, approximately 61 grams of cocaine, and a digital scale.
In a third incident, Memphis Police officers responded in June 2022 to an emergency call involving Woods and found him in possession of a Del-ton 5.56 caliber rifle loaded with 50 rounds. Woods was a convicted felon at the time of the incident.
Woods pled guilty in March 2024 to three counts of being a convicted felon in possession of a firearm, two counts of cocaine possession with intent to distribute, and two counts of possession of a firearm during commission of a dangerous felony.
United States Chief District Court Judge John T. Fowlkes sentenced Woods on July 18, 2024, to a total of 207 months in federal prison followed by three years of supervised release. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated for federal prosecution by the PSN Gun Task Force and the Memphis Police Department.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Jermal Blanchard, who prosecuted this case, as well as law enforcement partners who investigated the case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Convicted Felon Sentenced for Dealing Crack Cocaine While Armed Inside a Northwest Dollar StoreRead the Press Release
WASHINGTON – Tavon Lyles, 34, a convicted felon from Washington, D.C., was sentenced today to 90 months in prison, to run consecutive to any other sentence, in connection with dealing crack cocaine inside a variety store to undercover police officers while he was armed with a Glock 22 semi-automatic handgun, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Lyles pleaded guilty on October 11, 2023, in the U.S. District Court for the District of Columbia to one count of unlawful possession of a firearm and ammunition by a felon, and another count of unlawful possession with intent to distribute cocaine base.
In addition to the prison term, Judge Carl J. Nichols ordered Lyles to serve three years of supervised release.
According to court documents, on December 14, 2020, about 6:40 p.m., members of MPD Narcotics and Special Investigations Division (NSID) were conducting a buy-bust operation in the 1400 block of North Capitol Street, NW. Undercover officers (UC) approached Lyles inside a Dollar Plus store and asked Lyles if he had change for a $100 dollar bill. Lyles pulled out money to make change and simultaneously pulled out a plastic bag containing several smaller zips containing a white rock-like substance.
The undercover officers left the store, discussed what they saw, went back, and approached Lyles again. Lyles asked how much cash they had, and the UCs replied that they had $40. Lyles reached into his pants and pulled out two blue zips containing a white rock-like substance and handed them to one of the UCs. The UC handed Lyles two $20 bills of prerecorded currency. The UCs left the store and signaled that the buy was good.
The arrest team moved in. Lyles struggled briefly with officers as they placed him under arrest. As they attempted to handcuff him, an officer felt a hard object in Lyle’s front waistband which felt like a firearm. The officer asked Lyles if the firearm was loaded, and Lyles confirmed it was. The officers handcuffed Lyles and removed a Glock 22 semi-automatic handgun with a high-capacity magazine from his waistband.
From Lyle’s pockets, officers recovered cocaine base (crack) weighing a total of 32.73 grams. In addition, officers recovered $1,071 in cash which included the two $20 bills of MPD pre-recorded currency. Lyles admitted that he knew that he possessed the firearm and ammunition, that the firearm was loaded, and that he knew he had prior felony convictions for which the potential penalty was more than one year of incarceration.
This case was investigated by the MPD’s Narcotics and Special Investigations Division. It is being prosecuted by Assistant U.S. Attorney Emory V. Cole.
21cr0010
Columbus, Ohio man pleads guilty to exploiting minor via videos of rapeRead the Press Release
COLUMBUS, Ohio – Arturo Navarrete-Juarez, 29, of Columbus, pleaded guilty in U.S. District Court today to sexually exploiting a minor.
Navarrete-Juarez faces a potential sentence of at least 15 years and up to 30 years in prison.
According to court documents, between October 2021 and December 2022, Navarrete-Juarez sexually abused at least one minor and created child pornography of the abuse. Specifically, the defendant raped a 6-year-old girl.
In March of 2023, the FBI investigated child sexual abuse material on a Tor network that featured Navarrete-Juarez. The defendant’s face was visible in the videos. Investigators also linked Navarrete-Juarez’s identity to the videos by distinctive tattoos on his hands, arms and chest and by the apartment depicted in the background of the videos.
Navarrete-Juarez was charged federally by a criminal complaint in March 2023. He will be sentenced at a future hearing. Congress sets the minimum and maximum statutory sentences. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the guilty plea entered today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Jennifer M. Rausch and Emily Czerniejewski are representing the United States in this case.
# # #
Chinese national indicted for importation of enough chemicals to make millions upon millions of fatal doses of fentanylRead the Press Release
HOUSTON - A 48-year-old Chinese national has been indicted for his part in a conspiracy involving the importation of what is believed to be the largest amount of fentanyl precursors found in the Southern District of Texas and one of the largest in the country, announced U.S. Attorney Alamdar S. Hamdani.
Minsu Fang aka Fernando is expected to make an appearance before U.S. Magistrate Judge Diana Song Quiroga in Laredo July 23 at 11 a.m. Authorities originally arrested Fang in New York City, New York, June 19 on an arrest warrant based out of Laredo.
“We charged this defendant for importing enough fentanyl precursor chemicals from China to kill millions of Americans,” said Attorney General Merrick B. Garland. “Fentanyl is the deadliest drug threat the United States has ever faced, and the Justice Department is committed to breaking apart every link in the global fentanyl supply chain.”
“My office is focused on disrupting and dismantling the transnational criminal organizations flooding the United States with fentanyl, a drug that is killing our children,” said Hamdani. “Fang allegedly imported over 2,000 kilograms of raw materials from China destined for various places in Mexico used in the manufacture of fentanyl. This historic seizure represents a multi-agency collaboration that prevented the production of millions upon millions of deadly doses of fentanyl-laced pills.”
“To end the deadliest drug threat the United States has ever faced, the Drug Enforcement Administration (DEA) starts where the harm begins – with the Chinese chemical companies and the individuals that are selling chemicals to those who make and sell the fentanyl that is killing Americans. This work led DEA to Minsu Fang, who is charged with selling more than 2,000 kilograms of fentanyl precursors. This marks one of DEA’s largest seizures of fentanyl chemicals to date in the United States,” said DEA Administrator Anne Milgram. “The DEA is laser-focused on saving American lives by disrupting the entire global fentanyl supply chain that is responsible for flooding our communities with fentanyl. By disrupting Fang’s operations, DEA and our partners saved countless lives in the United States.
A federal grand jury charged Minsu Fang aka Fernando July 17 in a four-count indictment under seal with conspiracy to possess with intent to distribute a controlled substance, conspiracy to distribute a controlled substance for purpose of unlawful importation, conspiracy to import a controlled substance and conspiracy to export a controlled substance.
“Homeland Security Investigations (HSI) plays a pivotal role in disrupting the supply of illicit opioids at every point in the drug supply chain: internationally, at our nation’s borders, and in communities throughout the United States,” said Special Agent in Charge Craig Larrabee, HSI San Antonio. “The partnerships in this investigation were key to securing this indictment. The threat imposed by fentanyl dictates that agencies not only deconflict and coordinate, but to also collaborate. This investigation and prosecution are the perfect example of collaboration across agencies and throughout the country.”
The now unsealed charges allege Fang and his associates shipped over 2,000 kilograms of fentanyl precursor chemicals from China into the United States and on to Mexico in approximately 100 separate shipments between August and October 2023. Fang and his co-conspirators were able to avoid law enforcement interdiction of the shipments by declaring them to have a de minimis value, less than $800, and commingling the boxes containing the precursor chemicals with similarly low valued import items, according to the charges.
As a result, each of the shipments were allegedly admitted into the United States without a detailed inspection of the individual contents. Once in the United States, Fang, through co-conspirators, shipped the chemicals into Mexico, according to the charges.
If convicted, Fang faces up to life on each count of conviction as well as a $10 million fine.
The DEA and HSI conducted the investigation. Assistant U.S. Attorneys Richard D. Hanes and Heather Rae Winter are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
#OnePillCanKill
Chinese National Indicted for Importation of Enough Chemicals to Make Millions of Fatal Doses of FentanylRead the Press Release
A Chinese national was indicted for his part in a conspiracy involving the importation of what is believed to be the largest amount of fentanyl precursors found in the Southern District of Texas and one of the largest in the country.
Minsu Fang, 48, also known as Fernando, was charged in a four-count indictment with conspiracy to possess with intent to distribute a controlled substance, conspiracy to distribute a controlled substance for purpose of unlawful importation, conspiracy to import a controlled substance, and conspiracy to export a controlled substance.
“We charged this defendant for importing enough fentanyl precursor chemicals from China to kill millions of Americans,” said Attorney General Merrick B. Garland. “Fentanyl is the deadliest drug threat the United States has ever faced, and the Justice Department is committed to breaking apart every link in the global fentanyl supply chain.”
“To end the deadliest drug threat the United States has ever faced, the Drug Enforcement Administration (DEA) starts where the harm begins – with the Chinese chemical companies and the individuals that are selling chemicals to those who make and sell the fentanyl that is killing Americans. This work led DEA to Minsu Fang, who is charged with selling more than 2,000 kilograms of fentanyl precursors. This marks one of DEA’s largest seizures of fentanyl chemicals to date in the United States,” said DEA Administrator Anne Milgram. “The DEA is laser-focused on saving American lives by disrupting the entire global fentanyl supply chain that is responsible for flooding our communities with fentanyl. By disrupting Fang’s operations, DEA and our partners saved countless lives in the United States.”
“My office is focused on disrupting and dismantling the transnational criminal organizations flooding the United States with fentanyl, a drug that is killing our children,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Fang allegedly imported over 2,000 kilograms of raw materials from China destined for various places in Mexico used in the manufacture of fentanyl. This historic seizure represents a multi-agency collaboration that prevented the production of millions upon millions of deadly doses of fentanyl-laced pills.”
“Homeland Security Investigations (HSI) plays a pivotal role in disrupting the supply of illicit opioids at every point in the drug supply chain: internationally, at our nation’s borders, and in communities throughout the United States,” said Special Agent in Charge Craig Larrabee of HSI San Antonio. “The partnerships in this investigation were key to securing this indictment. The threat imposed by fentanyl dictates that agencies not only deconflict and coordinate, but to also collaborate. This investigation and prosecution are the perfect example of collaboration across agencies and throughout the country.”
The now unsealed charges allege Fang and his associates shipped over 2,000 kilograms of fentanyl precursor chemicals from China into the United States and on to Mexico in approximately 100 separate shipments between August and October 2023. Fang and his co-conspirators were able to avoid law enforcement interdiction of the shipments by declaring them to have a de minimis value, less than $800, and commingling the boxes containing the precursor chemicals with similarly low valued import items, according to the charges.
As a result, each of the shipments were allegedly admitted into the United States without a detailed inspection of the individual contents. Once in the United States, Fang, through co-conspirators, shipped the chemicals into Mexico, according to the charges.
If convicted, Fang faces a maximum penalty of life in prison on each count, as well as a $10 million fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA and HSI investigated the case.
Assistant U.S. Attorneys Richard D. Hanes and Heather Rae Winter for the Southern District of Texas are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Child Predator Sentenced to 120 Months in PrisonRead the Press Release
Salt Lake City, Utah – Jordan Alan Neves Brewer, 37, of Ogden, Utah, was sentenced today to 10 years’ imprisonment, a lifetime of supervised release, and ordered to pay $5,000 in restitution after he admitted to possessing child pornography in 2023.
The sentence was imposed by Senior U.S. District Court Judge Clark Waddoups after Brewer admitted in February 2024 that he possessed child pornography while on supervised release for a prior 2012 federal conviction of the same conduct. Brewer also has a state conviction for possession of child pornography. He was released from his state sentence in 2019 and completed sex offender treatment in 2021.
According to court documents and statements made at the change of plea hearing, on March 30, 2023, a United States Probation Officer conducted a home inspection at Brewer’s residence and found unapproved electronic devices. A forensic search of Brewer’s laptop revealed child pornography involving prepubescent children.
The case was investigated jointly by the United States Probation Office and the FBI Salt Lake City Field Office.
Assistant United States Attorney Carol A. Dain of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Chicago-Area Woman Sentenced to Two Years in Prison for Illegally Exporting Thermal Riflescopes and Other Military Items to RussiaRead the Press Release
LOS ANGELES – An Illinois woman was sentenced today to 24 months in federal prison for conspiring to unlawfully export to Russia defense articles – including thermal imaging riflescopes and night-vision goggles – without a license in violation of the Arms Export Control Act.
Elena Shifrin, 62, of Mundelein, Illinois, was sentenced by United States District Judge André Birotte Jr.
Shifrin pleaded guilty in February 2022 to one count of conspiracy to violate the Arms Export Control Act.
According to court documents, from 2017 to 2020, Shifrin participated in the export of more than 60 defense articles from the United States to Russia without obtaining from the State Department a valid license or other approval for such exports.
As Shifrin admitted at her change of plea hearing, Shifrin’s co-conspirators purchased the defense articles – including thermal riflescopes, weapons sights, monoculars and night-vision googles – from online sellers in the United States and directed the sellers to mail those items to Shifrin or other co-conspirators in Illinois and California. After receiving the items, Shifrin mailed them to co-conspirators in Russia without obtaining the required licenses.
To conceal her unlawful activities, when Shifrin exported the defense articles to Russia, she listed fictitious sender names and addresses on the packages containing the defense articles, falsely identified the items in the packages as non-export-controlled items such as clothing, and concealed the defense articles in other items such as toolkits and kitchen appliances.
One of Shifrin’s co-conspirators, Igor Panchernikov, 43, a former Corona resident who once served in the United States Air Force Reserves, pleaded guilty in March 2023 to one count of conspiracy to violate the Arms Export Control Act and was sentenced in June 2023 to 27 months in federal prison.
Two other defendants charged in this case – Boris Polosin, of Russia, and Vladimir Gohman, of Israel – are fugitives. Charges against another defendant – Vladimir Pridacha, 59, of Volo, Illinois, were dismissed on January 19 at the request of prosecutors.
The FBI’s Los Angeles and Chicago field offices investigated this matter, with substantial assistance from the United States Postal Inspection Service and Homeland Security Investigations.
Assistant United States Attorneys David T. Ryan of the Terrorism and Export Crimes Section, and Wilson Park of the General Crimes Section are prosecuting this case. The Counterintelligence and Export Control Section of the Department of Justice’s National Security Division is providing substantial assistance.
Capitol Heights Man Sentenced to 53 Months in Federal Prison for Wire Fraud and Illegal Possession of A FirearmRead the Press Release
Baltimore, Maryland – On July 18, 2024, U.S. District Judge Brendan A. Hurson sentenced Stephawn Watson, also known as “O Dawg,” age 28, of Capitol Heights, Maryland to 53 months in federal prison, followed by three years of supervised release, for charges related to a Maryland and California unemployment insurance (UI) fraud scheme totaling more than $1.5 million, as well as Illegal Possession of a Firearm. Judge Hurson also ordered Wason to forfeit over $90,000 and to pay restitution of $2,094,319.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Acting Postal Inspector in Charge Ajay Lall of the U.S. Postal Inspection Service – Washington Division; Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Troy W. Springer of the National Capital Region, U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”); Chief Amal E. Awad of the Anne Arundel County Police Department, Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (MSP); Chief Charles H. Hinnant of the Cumberland Police Department, and Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division.
Financial assistance offered through the CARES Act included expanded eligibility for Unemployment Insurance (“UI”) benefits and increased UI benefits through the Pandemic Unemployment Assistance Program (“PUA”), Federal Pandemic Unemployment Compensation (“FPUC”), and the Lost Wages Assistance Program (“LWAP”).
According to his plea agreement, from March 2020 to October 2021, Watson and his co-conspirators impersonated victims to submit fraudulent claims for pandemic-related UI benefits in Maryland and in California. As part of the scheme, Watson and his co-conspirators obtained the birthdates, social security numbers, and other personal identifying information (“PII”) of numerous victims which they used to prepare and submit fraudulent applications for UI benefits. The applications contained false information, including the victims’ contact information, states of residence, and availability for work. These fraudulent applications caused financial institutions to load UI benefits onto debit cards and mail the cars to physical addresses provided and monitored by co-conspirators. Once Watson and his co-conspirators received fraudulently obtained benefits on the debit cards, they used them for cash withdrawals and other transactions for their own benefits.
A search of Watson’s residence in February, 2021, recovered 11 UI debit cards in the names of 9 victims as well as a fraudulent account created in Watson’s name. The investigation also revealed numerous text messages between Watson and his co-conspirators exchanging PII of victims and discussing the execution of the UI fraud scheme. In all, Watson and his co-conspirators submitted more than 200 fraudulent UI claims using the names and PII of victims, resulting in more than $1.6 million in losses.
Watson was also sentenced for his Illegal Possession of a Firearm based on his arrest in January 2022 by the Cumberland Police Department. At the time of his arrest, Watson was wanted for three different warrants in three different jurisdictions for firearms related offenses. The firearm was later determined to be stolen.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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.
U.S. Attorney Barron commended the USPIS, HSI, DOL-OIG, the Anne Arundel County Police Department, MSP, the Cumberland Police Department, and the ATF for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Burlington Man Sentenced to 120 Months in Federal Prison for Attempted Enticement of a MinorRead the Press Release
Davenport, Iowa – A Burlington man was sentenced on Thursday, July 11, 2024, to 120 months in federal prison for attempting to entice a minor.
According to public court documents and evidence presented at sentencing, Corey Lee Ritz, 48, engaged in a Facebook conversation with an undercover officer posing as a 15-year-old female. Ritz proceeded to graphically describe the kinds of sex acts he would like to perform on the 15-year-old if they met in person. Ritz made plans to meet with the 15-year-old. Ritz then suggested that the 15-year-old bring another underage female to their planned meeting. Ritz then began communicating with a second undercover officer posing as a 14-year-old female. Ritz arranged to meet with the two minor females in person in Burlington, Iowa.
Ritz arrived at the pre-planned in-person meeting and was arrested by the Des Moines County Sherriff’s Department. He had a Samsung cell phone and three condoms in his possession. Ritz admitted to law enforcement that he was meeting a 15-year-old girl and a 14-year-old girl for the purpose of sex.
After completing his term of imprisonment, Ritz will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by Des Moines County Sheriff Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
Bradenton Felon Convicted of Drug Trafficking and Gun ChargesRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that a federal jury has found Andre Adams, Jr. (43, Bradenton) guilty of possession of 500 grams or more of cocaine, 50 grams or more of methamphetamine, and 40 grams or more of fentanyl with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and for being a felon in possession of firearms and ammunition. Adams faces a minimum mandatory penalty of 5 years, up to forty years, in federal prison. His sentencing hearing is scheduled for October 15, 2024. Adams was indicted on January 23, 2023.
According to testimony and evidence presented at trial, Manatee County Sheriff’s Office (MCSO) began investigating an unknown individual in Bradenton for selling fentanyl and using Cash App for payment after a complaint from a concerned citizen. Investigators were able to determine the identity of the individual as Andre Adams. Jr. Over the next several months, investigators surveilled Adams’ residence and observed frequent visitors to the residence briefly meeting with Adams and appearing to make exchanges with him. Adams’s Cash App records showed that tens of thousands of dollars had been paid to him over a short period of time. Many of the senders had known drug addiction issues and used coded drug language such as “Scooby snacks,” a street term for heroin or fentanyl.
On August 4, 2022, detectives with MCSO executed a search warrant at Adams’ residence. They discovered a loaded handgun, scales, drug cutting agents, a money counter, Kilo press, $22,000 in cash, 55 grams of methamphetamine, 400 grams of cocaine, and 80 grams of fentanyl. Later that same day, investigators executed a search warrant at Adams’ storage unit. There they discovered two kilograms of cocaine, more than 350 grams of methamphetamine, drug cutting agents, and a digital scale. They also discovered three additional firearms, including an AK-47 rifle, and several dozen rounds of ammunition.
Prior to Adams’ conduct on August 4, 2022, he had been convicted of trafficking in cocaine and spent 15 years in Florida state prison. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
Adams agreed to forfeit all firearms and ammunition found in this case.
This case was investigated by the Federal Bureau of Investigation and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Shauna S. Hale.
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.
Bastrop Man to Spend 25 Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
AUSTIN, Texas – A Bastrop man was sentenced in federal court to 300 months in prison for sexual exploitation of a minor.
According to court documents, Stuart Mitchell Pieper, 41, was a member of a private chat group on a social networking application. In July and August 2023, Pieper used the account to post multiple images depicting the sexual abuse of children. Pieper also discussed, in the group chat and in direct messages, how he was “grooming” female children for sexual activity.
A search warrant executed on Aug. 12, 2023 resulted in the seizure of phones and laptops. A preliminary search of Pieper’s cell phone revealed images and videos depicting child sexual abuse. Pieper was arrested that day by state authorities in Bastrop County and was transferred into federal custody on Nov. 13, 2023. He was indicted for one count of sexual exploitation of a minor and pleaded guilty to the charge on April 18, 2024.
The FBI and Bastrop County Sheriff's Office investigated the case with valuable assistance from the Franklin County District Attorney's Office and the New Albany Police Department in Ohio.
Assistant U.S. Attorney Gabriel Cohen prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Baltimore Man Sentenced to 25 Years in Federal Prison for His Role in Murder for Hire ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin today sentenced Tyrik Braxton, a/k/a “Son-Son,” age 28, of Baltimore, Maryland, to 25 years in federal prison, followed by 3 years of supervised release, for the use and discharge of a firearm during a crime of violence resulting in death, in connection with a murder-for-hire conspiracy. A co-defendant solicited Braxton and others to murder victim Juan Ross in exchange for money and in the course of the murder-for-hire Braxton aided and abetted his co-conspirators who discharged firearms, resulting in the death of Ross.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Gregory Der of the Howard County Police Department; and Howard County State’s Attorney Rich Gibson.
According to the plea agreement, on October 4, 2020, Howard County Police responded to a shooting in the area of Basket Ring Road in Columbia. Victim Juan Ross was found shot and killed at the scene, sustaining multiple gunshot wounds to the head. Braxton admitted that he accepted money and assisted the co-conspirators who shot the victim, knowing that the victim was going to be killed. A co-conspirator accused the victim Juan Rossof cooperating with law enforcement, including on a live social media conversation on September 9, 2020, and in text messages. The victim was arrested on drug and weapon charges on September 5, 2020, but was released on bail after being interviewed by police.
Braxton admitted that a co-conspirator solicited him to kill the victim and that he accepted payment from the co-conspirator to commit the murder. As detailed in the plea agreement, the defendant used interstate commerce facilities, specifically cellular telephones and a vehicle, in the commission of the murder-for-hire.
On November 20, 2020, HCPD executed a series of search warrants, including at Braxton’s residence. Braxton was in his bedroom when law enforcement arrived to execute the warrant and he was placed under arrest. Law enforcement recovered a .45-caliber handgun with magazine and ammunition under the mattress in Braxton’s bedroom; a blue backpack containing $2,134 in cash, located under the bed and Braxton’s iPhone, located next to the bed. The phone contained photos of Braxton and his co-conspirators and Braxton admitted that they were his co-conspirators in the murder-for-hire of the victim.
On January 11, 2023, Judge Rubin sentenced co-defendant Daquante Thomas, age 22, of Baltimore, to 35 years in federal prison for discharge of a firearm during a crime of violence resulting in death. Thomas admitted that he was one of the shooters. On February 27, 2024, Judge Rubin sentenced co-defendant Jourdain Larose, a/k/a “JBlacc,” age 29, of Ellicott City to 40 years in federal prison his role in the murder for hire conspiracy. Larose admitted that he solicited others to kill the victim in exchange for payment.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 make our neighborhoods safer for everyone. Project Safe Neighborhoods (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.
U.S. Attorney Barron commended the ATF, the Howard County Police Department, and the Howard County State’s Attorney’s Office for their work in the investigation and prosecution and thanked the FBI, the Maryland State Police, the Anne Arundel County Police Department, the Baltimore County Police Department, and the Baltimore Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorney Kim Y. Hagan, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Felon Pleads Guilty to Illegal Possession of A Firearm and Ammunition and Is Sentenced to Four Years in Federal PrisonRead the Press Release
Baltimore, Maryland – Jermaine Washington, age 36, of Baltimore, Maryland, pleaded guilty on July 19, 2024 to a federal charge for being a felon in possession of a firearm, and was sentenced to serve a term of four years of incarceration.
The guilty plea was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
Washington has previously been convicted of armed robbery in Maryland state court in 2006 and again in 2013. According to his guilty plea, on May 6, 2022, Baltimore Police Department officers performed a traffic stop near the 1700 block of Ramsay Street after noticing that a vehicle – later found to be driven by Washington – had an inoperable brake light and tag light, and expired registration. After stopping the car and identifying Washington, officers determined Washington had an outstanding state arrest warrant for domestic assault. Officers also examined the interior of Washington’s vehicle using a flashlight and observed a handgun in plain view on the driver’s-side floorboard. The officers then entered the vehicle and recovered a Sig-Sauer .40 caliber handgun loaded with 12 rounds of ammunition. As a part of his plea agreement, Washington admitted that he knew he was prohibited from possessing a firearm and ammunition as a result of the two previous armed robbery convictions.
As a part of his plea agreement, Washington and the government agreed that Washington would be sentenced to a term of 48 months (four years) in federal prison. U.S. District Judge Brendan A. Hurson accepted this plea agreement today and, upon Washington’s request, held a contemporaneous sentencing hearing, imposing the agreed-upon term of 48 months incarceration, and sentencing Washington to a subsequent term of three years supervised release.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Steven T. Brantley, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Assault with a Deadly Weapon in Indian Country leads to 40-Month Sentence in Federal Prison for Stephens County ManRead the Press Release
OKLAHOMA CITY – KADEN SANNER RODEN, 25, of Duncan, has been sentenced to serve 40 months in federal prison for an assault with a dangerous weapon in Indian country, announced U.S. Attorney Robert J. Troester.
On November 7, 2023, a federal grand jury charged Roden with assault with a dangerous weapon. According to public record, in March 2023, Roden was involved in an argument with another individual over an alleged debt that was owed. When the victim attempted to drive away, Roden shot at the victim’s vehicle several times, striking the driver’s side of the car once. The victim was not injured.
This case is in federal court because Roden is a member of the Choctaw Nation and the crime took place within the boundaries of the Chickasaw Nation.
On January 8, 2024, Roden pleaded guilty, and admitted to firing multiple shots at a vehicle being driven by the victim.
At the sentencing hearing on July 12, 2024, U.S. District Judge Stephen P. Friot sentenced Roden to serve 40 months in federal prison, followed by three years of supervised release. In announcing his sentence, Judge Friot noted that the circumstances in this case were particularly dangerous and could have resulted in significantly increased harm.
This case is the result of an investigation by the Chickasaw Lighthorse Police Department, in collaboration with the Chickasaw Nation Office of Tribal Justice Administration. Special Assistant U.S. Attorney Kaleigh Blackwell and Assistant U.S. Attorney Tiffany Edgmon prosecuted the case.
Reference is made to public filings for additional information.
Armed Robbery of Mail Carrier Lands Two Men in Federal Prison for More Than 12 Years CombinedRead the Press Release
OKLAHOMA CITY –TARYAN NABOND PRINCE-SADLER, 20, of Oklahoma City, has been sentenced to serve 120 months in federal prison for the armed robbery of a U.S. mail carrier and possession of a firearm in furtherance of a crime of violence, announced U.S. Attorney Robert J. Troester.
On May 16, 2023, Prince-Sadler was charged by Indictment with two counts of armed robbery of mail, money, or other property of the United States, two counts of possession of a firearm in furtherance of a crime of violence, two counts of unauthorized possession of a postal key, one count of possession of stolen mail, and one count of theft of mail. Prince-Sadler’s co-defendant, Rijae Varnell Luster, 23, was charged with aiding and abetting armed robbery of property of the United States.
According to public record, between August 2022 and March 2023, four separate United States postal carriers reported being robbed while delivering mail. On two of the occasions, once in Edmond (February 1, 2023) and once in Stillwater (March 4, 2023), the suspect pointed a firearm at the carrier, and then forcefully took the carrier’s “Arrow Key,” which opens postal boxes. During the Stillwater robbery, surveillance cameras spotted a white vehicle following the mail carrier before and after the robbery. An investigation of this vehicle led authorities to Luster, who has admitted to the court he drove Prince-Sadler to the Stillwater location to carry out the robbery.
In the early hours of April 17, 2023, United States Postal Inspection Service (USPIS) Inspectors tracked Prince-Sadler to a post office in Edmond and observed him unlocking mailboxes, removing U.S. mail, and placing the mail in a trash bag before attempting to get away. USPIS Inspectors immediately arrested Prince-Sadler and discovered a firearm, binoculars, stolen mail, and the Arrow Key from the February 1, 2023, armed postal robbery inside his vehicle.
USPIS has identified at least 505 victims of Prince-Sadler and Luster’s mail theft, and over $500,000 in actual losses associated with the stolen mail.
On October 16, 2023, Prince-Sadler pleaded guilty to a two-count Superseding Information. As part of his plea, Prince-Sadler admitted to forcefully taking a United States Arrow Key from a U.S. mail carrier, putting the carrier’s life in jeopardy by using a firearm, and possessing a firearm in furtherance of a crime of violence.
At the sentencing hearing on July 17, 2024, U.S. District Judge Timothy D. DeGiusti sentenced Prince-Sadler to serve 120 months in federal prison, followed by four years of supervised release. In announcing his sentence, Judge DeGiusti noted the serious nature of the crime. On June 25, 2024, Luster was sentenced to serve 30 months in federal prison, followed by four years of supervised release, for aiding and abetting armed robbery of mail, money, or other property of the United States.
This case is the result of an investigation by the USPIS. Assistant U.S. Attorneys Wilson D. McGarry and Danielle London prosecuted the case.
Reference is made to public filings for additional information.
Arizona Man Sentenced to 90 Months in Federal Prison for Methamphetamine Distribution in New HampshireRead the Press Release
CONCORD – An Arizona man distributing methamphetamine shipped through the United State Postal Service (USPS) into New Hampshire was sentenced today in federal court in Concord to 90 months’ imprisonment, U.S. Attorney Jane E. Young announces.
Michael Bowling, 49, was sentenced by U.S. District Court Judge Samantha D. Elliott to 90 months in prison and three years of supervised release. On April 11, 2024, Bowling pleaded guilty to conspiracy to distribute methamphetamine and two counts of distribution of methamphetamine.
“The U.S. Attorney’s Office and our federal investigative partners have dedicated significant resources to stopping the flow of drugs into to New Hampshire through the mail,” said U.S. Attorney Jane E. Young. “The lengthy prison sentence imposed today by the Court reflects the seriousness of using federal assets to aid in illegal drug distribution. Anyone transporting poisonous drugs using USPS should think again. Law enforcement is watching and poised to take action.”
“As methamphetamine seizures are on the rise, DEA stands committed to keeping this highly addictive drug out of New Hampshire,” said Acting Special Agent in Charge, Stephen P. Belleau, DEA New England Field Division. “Today’s sentence not only holds Mr. Bowling accountable for his crimes but serves as a warning to those who attempt to bring this poison to the Granite State. This investigation demonstrates the strength of collaborative law enforcement efforts and our strong partnership with the U.S. Attorney’s Office.”
“Today’s sentencing should send a clear message that using the U.S. Mail to facilitate drug trafficking activities will not be tolerated,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “This successful investigation is a result of strong partnerships both within the U.S. Postal Inspection Service and with our local and federal law enforcement partners.”
In 2021, the defendant mailed packages of methamphetamine from Arizona into New Hampshire, using fictitious return addresses to thwart law enforcement from identifying him as the supplier. Despite his efforts, the United States Postal Inspection Service (USPIS) and the Drug Enforcement Administration (DEA) seized three packages of methamphetamine sent by the defendant to his Lakes Region co-conspirators, containing over 600 grams of methamphetamine. Law enforcement arrested the defendant in his Arizona home, where he admitted to mailing the methamphetamine to New Hampshire.
The New Hampshire USPIS and DEA Manchester District Office led the drug investigation, in partnership with the USPIS Phoenix Division and DEA Phoenix Field Division I. The Meredith Police Department, Belknap County Drug Task Force, New Hampshire State Police, and the USPIS Denver, Washington, and Fort Worth Divisions provided valuable assistance. Assistant United States Attorney Heather A. Cherniske prosecuted the case.
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Anchorage doctor and her husband charged with health care fraud and tax evasionRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment last week charging an Anchorage doctor and her husband with health care fraud and tax evasion.
According to court documents, from 2010 to 2023, Claribel Tan, 60, a practicing rheumatologist, and her husband, Daniel Tan, 69, operated Claribel K. Tan MD LLC (CKTMD), a medical clinic in Anchorage. The indictment alleges that the couple defrauded health care benefit programs by causing the submission of false claims that misrepresented the type and dosage of medication, and the scope of medical services provided to patients. Further, the indictment alleges that both defendants deceived patients regarding the necessity of receiving medication at the clinic and created false medical records. The indictment also alleges that Claribel Tan deceived patients regarding what substances she injected into their bodies. In total, the Tans received over $10 million in fraudulently obtained funds. In a separate civil action, the Justice Department seized roughly $8.5 million of those funds from the defendant’s accounts.
The indictment also alleges that the Tans evaded income taxes for 2014, 2015 and 2017 by providing false information to their return preparer that overstated CKTMD’s expenses and filing false tax returns that understated their income. The indictment further alleges that Daniel Tan evaded income taxes for 2016 when he provided the Tans’ accountant with false information for that return. The accountant allegedly ceased preparing tax returns for them, and the Tans did not file tax returns for 2016.
The indictment further alleges that the Tans did not file tax returns for 2018 through 2021, despite being required to by law.
The defendants are each charged with one count of health care fraud and four counts of willful failure to file a tax return. Daniel Tan is charged with four counts and Claribel Tan is charged with three counts of attempting to evade and defeat tax. The defendants will make their initial court appearance today before U.S. Magistrate Judge Scott A. Oravec of the U.S. District Court for the District of Alaska.
If convicted, they face a maximum sentence of 10 years in prison for health care fraud, five years for each count of tax evasion and one year for each count of failing 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 S. Lane Tucker for the District of Alaska made the announcement.
The IRS Criminal Investigation, Defense Criminal Investigative Service, FBI, Defense Contract Audit Agency, Department of Veterans Affairs Office of Inspector General Criminal Investigations Division, Department of Labor Employee Benefits Security Administration, Food and Drug Administration Office of Criminal Investigations and State of Alaska Division of Insurance Investigation Unit are investigating the case.
Trial Attorney Dominick Giovanniello of the Justice Department’s Tax Division and Assistant U.S. Attorneys Morgan Walker and Seth Beausang for the District of Alaska are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Alaska Doctor and Her Husband Charged with Health Care Fraud and Tax EvasionRead the Press Release
A federal grand jury in Alaska returned an indictment last week charging an Anchorage doctor and her husband with health care fraud and tax evasion.
According to court documents, from 2010 to 2023, Claribel Tan, 60, a practicing rheumatologist, and her husband, Daniel Tan, 69, operated Claribel K. Tan MD LLC (CKTMD), a medical clinic in Anchorage. The indictment alleges that the couple defrauded health care benefit programs by causing the submission of false claims that misrepresented the type and dosage of medication, and the scope of medical services provided to patients. Further, the indictment alleges that both defendants deceived patients regarding the necessity of receiving medication at the clinic and created false medical records. The indictment also alleges that Claribel Tan deceived patients regarding what substances she injected into their bodies. In total, the Tans received over $10 million in fraudulently obtained funds. In a separate civil action, the Justice Department seized roughly $8.5 million of those funds from the defendant’s accounts.
The indictment also alleges that the Tans evaded income taxes for 2014, 2015 and 2017 by providing false information to their return preparer that overstated CKTMD’s expenses and filing false tax returns that understated their income. The indictment further alleges that Daniel Tan evaded income taxes for 2016 when he provided the Tans’ accountant with false information for that return. The accountant allegedly ceased preparing tax returns for them, and the Tans did not file tax returns for 2016.
The indictment further alleges that the Tans did not file tax returns for 2018 through 2021, despite being required to by law.
The defendants are each charged with one count of health care fraud and four counts of willful failure to file a tax return. Daniel Tan is charged with four counts and Claribel Tan is charged with three counts of attempting to evade and defeat tax. The defendants will make their initial court appearance today before U.S. Magistrate Judge Scott A. Oravec of the U.S. District Court for the District of Alaska.
If convicted, they face a maximum sentence of 10 years in prison for health care fraud, five years for each count of tax evasion and one year for each count of failing 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 S. Lane Tucker for the District of Alaska made the announcement.
The IRS Criminal Investigation, Defense Criminal Investigative Service, FBI, Defense Contract Audit Agency, Department of Veterans Affairs Office of Inspector General Criminal Investigations Division, Department of Labor Employee Benefits Security Administration, Food and Drug Administration Office of Criminal Investigations and State of Alaska Division of Insurance Investigation Unit are investigating the case.
Trial Attorney Dominick Giovanniello of the Justice Department’s Tax Division and Assistant U.S. Attorneys Morgan Walker and Seth Beausang for the District of Alaska are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
21 July 2024
Statement from Attorney General Merrick B. GarlandRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland:
“From the beginning of his tenure, President Biden has made clear in both word and deed that he stands for the rule of law and for the Justice Department’s critical mission to protect the safety and the civil rights of everyone in our country. I am grateful for his leadership and for the enormous respect he has shown for the 115,000 public servants of the Justice Department over the past three and a half years. As President Biden has noted, there is critical governing work to be done in the months ahead, and the Justice Department will continue to work tirelessly to uphold the rule of law, keep our country safe, and protect civil rights on behalf of the American people.”
Puyallup man caught with nearly 100,000 fentanyl pills and five firearms sentenced to six-and-a-half years in prisonRead the Press Release
Tacoma – A 25-year-old Puyallup man, who also maintained an apartment in Seattle, was sentenced today in U.S. District Court in Tacoma to 78 months in prison for drug trafficking and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Tessa M. Gorman. Emmanuel Xaiver Hunter was identified as a drug trafficker in October 2022 and was arrested in November 2022. He pleaded guilty in April 2024. At the sentencing hearing Chief U.S. District Judge David G. Estudillo said, “These were very serious crimes and very serious firearms that you had,” and commented that the firearm Hunter was carrying in his waistband when he was arrested “could cause a lot of harm and damage.”
According to records filed in the case, the Drug Enforcement Administration, working with the Auburn Police Department, used a confidential source to purchase fentanyl pills from Hunter on two occasions. In early November 2022, after obtaining a court-authorized search warrant for Hunter’s homes, car and person, law enforcement arrested him and searched both his Puyallup home and downtown Seattle apartment.
Through the searches law enforcement seized 98,000 counterfeit oxycodone pills stamped with “M” and “30” and containing fentanyl, approximately 1.7 kilograms of fentanyl powder, 1.2 kilograms of cocaine, and five handguns. The handgun that Hunter carried when he was arrested was a Glock pistol equipped with an auto-sear so that it acted as an automatic weapon.
In his plea agreement, Hunter admitted that he carried the firearm in furtherance of his drug trafficking. That crime calls for a mandatory minimum of five years to run consecutive to any sentence imposed in the case.
Hunter will be on five years of supervised release following prison.
The case was investigated by the DEA and Auburn Police Department.
The case was prosecuted by Assistant United States Attorney Max Shiner.
19 July 2024
West Mifflin Man Sentenced to Prison for Drug Conspiracy and Firearm ChargesRead the Press Release
PITTSBURGH, PA – On July 18, 2024, a resident of West Mifflin, Pennsylvania, was sentenced in federal court to 27 months of imprisonment, to be followed by 3 years of federal supervised release, on his convictions for conspiracy to distribute fentanyl and possession of a firearm by a convicted felon, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Marcus Valenzi, 35.
According to information presented to the court, between August 2022 and November 2023, federal and state law enforcement conducted an investigation into a drug trafficking organization operating within the Western District of Pennsylvania. The investigation identified Valenzi as a member of the conspiracy, and federal search warrants executed upon residences used by the conspirators in McKees Rocks, PA, resulted in the seizure of fentanyl, firearms, and cellular phones. A subsequent federal search warrant executed upon Valenzi’s residence resulted in the seizure of over $16,000, multiple cellular phones, and xylazine, a dangerous substance used as a cutting agent for fentanyl. A search of Valenzi’s phones revealed communications with a drug customer, who requested the return of his firearm. Valenzi responded that he threw the gun in the river after the “fed raided that house in rocks.” At the time Valenzi possessed his drug customer’s firearm, he had been convicted in Florida of robbery, a felony. Under federal law, felons are prohibited from the possession of firearms and ammunition.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Pennsylvania State Police and Federal Bureau of Investigation for the investigation leading to the successful prosecution of Valenzi.
Washington County Man Sentenced to 240 Months in Federal Prison for Production of Child PornographyRead the Press Release
DAVENPORT, Iowa – A Washington County man was sentenced on Wednesday, July 17, 2024, to 240 months in federal prison for producing child pornography.
According to public court documents, witnesses notified the Washington County Sheriff’s Office that Trevor Devon Miller, 23, produced a video of himself with a minor female engaged in sexual activity. That video was sent by Miller via Snapchat to other minors. Investigators recovered a copy of the video and confronted Miller who admitted he produced and distributed the video. Investigators also discovered that Miller had produced a similar video with another minor female.
After completing his term of imprisonment, Miller will be required to serve 10 years of supervised release. There is no parole in the federal system. Miller will be required to register as a sex offender.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Washington County Sheriff’s Office and the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
USMS, ICE, and Interpol Washington Collaboration Leads to Apprehension of Fugitive and Rescue of Three Minors in TennesseeRead the Press Release
U.S. Marshals Service (USMS), U.S. Immigration and Customs Enforcement (ICE), and INTERPOL Washington collaboration led to the arrest of a Bahamian man, Angelo McQueen, wanted in Nassau for sexual offenses against a minor, and the rescue of three children at his Pigeon Forge, Tennessee residence. McQueen was also employed at a Pigeon Forge amusement park at the time of his arrest.
“This joint operation underscores the vital importance of international cooperation and swift action to find dangerous fugitives and protect our most vulnerable,” said INTERPOL Washington Acting Director Jeffrey Grimming. “We thank our great USMS and ICE partners for their immediate response and will continue to offer our tools, resources, and global network in the fight for justice.”
McQueen, a native and citizen of the Bahamas, entered the U.S. on March 1, 2024, in Florida, as a B2 non-immigrant visitor. INTERPOL Washington learned that McQueen was suspected of having committed sexual offenses against a minor in his native Bahamas. Authorities also suspected that McQueen had abducted his biological daughter and brought her to the United States.
INTERPOL Washington was able to determine that McQueen was likely residing in Pigeon Forge. Upon relaying the leads to partners, the USMS Smoky Mountain Fugitive Task Force Eastern District of Tennessee, USMS Missing Child Unit, and ICE Enforcement and Removal Operations arrested McQueen at his residence on July 5. During the arrest, three minors were encountered at McQueen’s residence, all of whom were turned over to the Tennessee Department of Children's Services.
He is now in ICE custody pending removal proceedings.
U.S. Attorney’s Office Announces Guilty Plea in Gallup Armed Robbery CaseRead the Press Release
ALBUQUERQUE – A Gamerco woman pleaded guilty in federal court to robbery and federal firearms charges arising from her role in the armed robbery of a Gallup insurance company in 2021.
According to publicly available court documents, on December 4, 2021, Amber Yazzie, 29, entered an insurance company in Gallup, New Mexico, with two of her co-defendants, while a fourth co-defendant, waited outside in a vehicle. Yazzie brandished a firearm, yelled at the employees to turn over money, and threatened them before firing the gun into the ceiling.
Following the robbery, Yazzie and her co-defendants traveled to Albuquerque, where they used some of the stolen funds for a shopping spree at a local mall. Law enforcement later recovered receipts and surveillance footage documenting these purchases.
At sentencing, Yazzie faces not less than ten years and up to life in prison. Upon her release from prison, Yazzie will be subject to up to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Public Safety, the Navajo Nation Police Department, the Gallup Police Department and the McKinley County Sheriff’s Office. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.
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