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12 July 2024
Former Hospitality Executive Sentenced to More Than Five Years in Prison for Multiple Fraud SchemesRead the Press Release
SAN FRANCISCO – Geoffrey Palermo, a former hospitality executive who went on to operate numerous auto repair shops in the Bay Area, was sentenced to 65 months in prison, following his conviction on wire fraud, failing to pay over taxes, and other charges, announced First Assistant United States Attorney Patrick Robbins, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, and IRS Criminal Investigation Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. The sentence was handed down by the Honorable James Donato, U.S. District Judge.
Palermo, 60, of Novato, Calif., pleaded guilty on March 11, 2024, to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; two counts of honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346; one count of wire fraud, in violation of 18 U.S.C. § 1343; one count of making a false statement to a bank, in violation of 18 U.S.C. § 1014; and one count of willful failure to collect or pay over tax, in violation of 26 U.S.C. § 7202. He had been charged in a Second Superseding Indictment in October 2021 with these charges.
During the relevant time, 2008 through 2016, Palermo was working as the manager of the Hilton hotel located in downtown San Francisco. During this timeframe, Palermo had authority to enter into contracts, choose contractors, and otherwise manage construction and capital improvement projects at the hotel.
According to his plea agreement, Palermo admitted he devised a kickback scheme involving contractors to deprive the Hilton hotel’s owners of more than $1.8 million in kickbacks that went to Palermo. As part of the scheme, Palermo agreed with one contractor, Adan Roldan, 56, of Roseville, Calif., that Roldan would submit falsely inflated invoices for construction and renovation work at the hotel, that Palermo would approve the false invoices, and that Roldan and the second contractor would pay a kickback to Palermo associated with the falsely inflated invoices. From 2013 through 2016, as a result of this scheme, Palermo approved—and the hotel’s owners paid—over $6.4 million to A. Roldan Construction based on invoices submitted by Roldan’s construction company. In exchange, Roldan paid more than $1.6 million in kickbacks to Palermo. Additionally, in 2014 and 2015, Palermo approved—and the hotel’s owners paid—over $2 million to a second contractor based on falsely inflated invoices submitted by that contractor, and the contractor paid Palermo over $300,000 in kickbacks. In exchange for kickbacks, Palermo continued to hire Roldan and the second contractor to do work at the Hilton.
According to Palermo’s plea agreement, after leaving his job as a manager at the Hilton San Francisco in 2016, Palermo managed GMP Cars, LLC, a collision and auto repair business he owned and controlled. Beginning in approximately August 2019 and continuing through December 2019, Palermo devised and participated in a scheme to obtain approximately $5 million in Small Business Administration (SBA) loans for GMP Cars from a commercial lender by making false statements and omissions in loan applications. Specifically, when applying for SBA loans, GMP Cars failed to disclose that its business banking account was overdrawn by more than $700,000, presented false bank statements showing inflated cash balances, submitted an incomplete debt schedule, submitted false financial statements showing inflated revenue, and presented falsified documents relating to an acquisition.
Furthermore, according to the plea agreement, on April 3, 2020, Palermo caused GMP Cars to make false statements in its application for a Paycheck Protection Program (“PPP”) loan. Specifically, Palermo caused GMP Cars to falsely certify on its loan application that it had employees for whom it paid salaries and payroll taxes, and Palermo caused GMP Cars to submit a purported payroll summary showing that payroll taxes were being accrued and paid when in fact Palermo had caused GMP Cars to not pay payroll taxes.
Also as part of his plea agreement, Palermo admitted that as the owner and manager of GMP Cars he had a duty to collect, account for, and pay over employee federal income tax, Social Security tax, and Medicare tax. Palermo admitted that in 2018 he caused GMP Cars to withhold federal income tax, Social Security tax, and Medicare tax totaling more than $1 million. Palermo willfully caused GMP Cars to fail to pay over to the IRS more than $1 million in federal taxes withheld from employee paychecks owed to the IRS for 2018.
A federal grand jury issued a second superseding indictment against Palermo and Roldan on October 5, 2021. Palermo and Roldan were charged with one count of wire fraud conspiracy, in violation of 18 U.S.C. § 1349. Palermo was charged with two counts of wire fraud and honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346; one count of wire fraud, in violation of 18 U.S.C. § 1343; one count of making a false statement to a bank, in violation of 18 U.S.C § 1014; and four counts of failure to collect or pay over taxes due and owed, in violation of 26 U.S.C § 7202. At Palermo’s sentencing, the three outstanding tax counts were dismissed pursuant to the plea agreement between Palermo and the United States, and the related case, United States v. Palermo, Case No. 21-cr-187 JD, was also dismissed.
Palermo has been detained since June 27, 2023.
In addition to the 65-month sentence, Judge Donato ordered Palermo to serve three years of supervised release, which will begin after he leaves prison. Judge Donato scheduled a hearing for August 19, 2024, to determine issues regarding restitution and forfeiture.
On March 11, 2024, Roland pleaded guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349. His sentencing hearing is scheduled for August 12, 2024.
Assistant U.S. Attorneys Christiaan Highsmith and Noah Stern are prosecuting the case with the assistance of Aarian Beti. The prosecution is the result of an investigation by the FBI and IRS-CI.
Former Georgia Insurance Commissioner Sentenced to PrisonRead the Press Release
ATLANTA - John Oxendine, the former Georgia Insurance Commissioner, was sentenced to three and a half years in prison for conspiracy to commit healthcare fraud in connection with unnecessary lab testing.
“Oxendine abused his position as the former Georgia Insurance Commissioner by undermining the integrity of the state’s healthcare system when he conspired with a physician to order hundreds of unnecessary and costly lab tests,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our office’s commitment to work with our law enforcement partners to hold individuals accountable who prioritize personal greed at the expense of the public’s trust.”
“John Oxendine was motivated more by personal greed than his duty to patients and the citizens of Georgia whom he used to represent,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Not only did the former state insurance commissioner line his pockets off the unnecessary tests, but he also directed another to lie to federal agents to try and cover up the fraud. The FBI will continue to investigate healthcare fraud to ensure those who abuse the system are brought to justice.”
“The sentence imposed today reaffirms our commitment to protecting the integrity of our nation’s health insurance programs from those who illegally profit through fraudulent activities,” said Tamala E. Miles of the United States Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work closely with our federal law enforcement partners to bring bad actors who defraud our programs to justice.”
“Today’s sentencing should serve as a strong deterrent to those in positions of power who seek to exploit and defraud TRICARE, the military’s healthcare system relied on by our service members, retirees, and their families,” said Special Agent in Charge Darrin K. Jones, Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and our law enforcement partners will aggressively investigate allegations of healthcare fraud that put DoD personnel and their families at risk.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: John Oxendine conspired with Dr. Jeffrey Gallups and others to submit fraudulent insurance claims for medically unnecessary Pharmacogenetic, Molecular Genetic, and Toxicology testing. Physicians associated with Dr. Gallups’ ENT practice were pressured to order these medically unnecessary tests from Next Health, a lab in Texas. As part of Oxendine’s healthcare fraud scheme, Next Health agreed to pay Oxendine and Dr. Gallups a kickback of 50 percent of the net profit for eligible specimens submitted by Dr. Gallups’ practice to the lab company.
In connection with the scheme, Oxendine gave a presentation at the Ritz Carlton in Buckhead, Georgia where he pressured doctors in Dr. Gallups’ practice to order the unnecessary tests. Next Health later submitted insurance claims seeking more than $3 million in payments from private health insurers for the unnecessary tests. The insurance companies paid more than $750,000 to Next Health because of these fraudulent claims. Next Health then paid $260,000 in kickbacks to Oxendine and Dr. Gallups. Some patients were also charged for the tests, receiving bills of up to $18,000.
To conceal the kickback payments, Oxendine and Dr. Gallups arranged for the payments to be made from Next Health to Oxendine Insurance Services, Oxendine’s insurance consulting business. Oxendine used a portion of the kickback money to pay a $150,000 charitable contribution and $70,000 in attorney’s fees for Dr. Gallups.
When a compliance officer at Dr. Gallups’ practice raised concerns about the kickbacks, Oxendine told Dr. Gallups to lie and say the payments were loans. He also directed Dr. Gallups to repeat the lie after he was questioned by federal agents about Next Health. When Oxendine was interviewed about Next Health by the Atlanta Journal-Constitution in connection with a private lawsuit, he falsely denied working with the lab company or receiving money from the business.John W. Oxendine, 62, of Port St. Joe, Florida, was sentenced by U.S. District Judge Steve C. Jones to three years, six months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $760,175.34, and a $25,000 fine. Oxendine was convicted on these charges on March 22, 2024, after he pleaded guilty.
This case is related to United States v. Gallups, criminal no. 1:21-cr-00370-SCJ, in which Dr. Jeffrey Gallups pleaded guilty to health care fraud and was sentenced to 33 months in prison.This case was investigated by the Federal Bureau of Investigation, Department of Health and Human Services, Office of the Inspector General, and Defense Criminal Investigative Service.
Assistant U.S. Attorneys Christopher J. Huber and David A. O’Neal prosecuted the case.
A video statement by U.S. Attorney Ryan K. Buchanan can be found here.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Chief Financial Officer of Chicago Hospital Among Three Defendants Charged in Alleged $15 Million Embezzlement SchemeRead the Press Release
CHICAGO — The former Chief Financial Officer of a Chicago hospital schemed with a colleague and the owner of a medical supply company to embezzle more than $15 million in hospital funds, according to a superseding indictment returned in U.S. District Court in Chicago.
As the hospital’s CFO, ANOSH AHMED was responsible for managing the hospital’s finances, including its Finance, Accounting, and Accounts Payable departments. From 2018 to 2022, Ahmed schemed with the hospital’s Chief Transformation Officer, HEATHER BERGDAHL, and the medical supply company owner, SAMEER SUHAIL, to cause the hospital to issue payments to vendor companies for purported goods and services that the defendants knew had not been provided, the indictment states. Many of the purported vendor companies were created by Suhail and Ahmed under various names to conceal their association with the fraudulent payments, the indictment states. Bergdahl opened bank accounts in the names of two legitimate hospital vendors and caused the hospital to deposit fraudulent payments into those accounts, the indictment states.
In an effort to conceal the scheme, Ahmed, Bergdahl, and Suhail allegedly created fictitious invoices, payment requests, delivery receipts, and other false documents about goods and services purportedly provided to the hospital. As a result of the scheme, the defendants caused the hospital to pay more than $15 million into bank accounts that they controlled, the indictment states.
The superseding indictment was returned on Thursday. It charges Ahmed, 40, of Houston, Texas, with eight counts of wire fraud, four counts of embezzlement, eleven counts of aiding and abetting embezzlement, and three counts of money laundering. Bergdahl, 37, of Houston, Texas, is charged with 14 counts of wire fraud, 21 counts of embezzlement, and one count of money laundering. Suhail, 47, of Chicago, is charged with six counts of wire fraud, six counts of aiding and abetting embezzlement, and two counts of money laundering. Arraignments in federal court in Chicago have not yet been scheduled.
The superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General, and Jason Bushey, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Sheri H. Mecklenburg and Kelly L. Guzman. The officials noted that the investigation remains ongoing.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Ahmed et al superseding indictmentFormer Boston Police Officer Sentenced for Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police officer was sentenced yesterday in connection with an investigation of overtime fraud at the Boston Police Department’s evidence warehouse.
Thomas Nee, 67, of Yarmouth, was sentenced by U.S. District Court Judge Richard G. Stearns to two years of supervised release. Nee was also ordered to pay a fine of $2,000, as well as $16,151 in restitution. In November 2021, Nee pleaded guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds.
From at least February 2015 through February 2018, Nee submitted false and fraudulent overtime slips for overtime shifts that he did not work at the evidence warehouse. The “purge” overtime was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. “Kiosk” overtime involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Nee claimed to have worked from 4 – 8 p.m., but he routinely left at 6 p.m., or earlier. For the “kiosk” shift, Nee submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he only worked three-to-four hours of those shifts.
Between February 2015 and February 2018, Nee personally collected approximately $16,151 for overtime hours he did not work.
Nee was one of 15 police officers charged in connection with committing overtime fraud at the Boston Police Department’s evidence warehouse, 10 of whom have been convicted either by guilty plea or jury verdict. Of the remaining officers charged, four were acquitted in April 2023 and one officer passed away while charges were pending. Nee is the fourth defendant to be sentenced in the case.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
Acting United States Attorney Joshua S. Levy; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Mark Grady of the Criminal Division prosecuted the case.
Federal Jury Found Pryor Man Guilty of Sexual AbuseRead the Press Release
TULSA, Okla. – A jury deliberated less than two hours today prior to convicting Adam Joseph King, 35, of Pryor, for Aggravated Sexual Abuse of a Minor Under 12 in Indian Country and Abusive Sexual Contact with a Minor Under 12 in Indian Country. The minor victim is a citizen of the Cherokee Nation.
“Today, a jury held Adam King accountable for his abusive actions towards an innocent child,” U.S. Attorney Clint Johnson said. “This guilty verdict resulted because of the courage of the child victim and the collaborative work among local, state, and federal law enforcement partners, demonstrating a commitment to the Justice Department's Project Safe Childhood initiative.”
"A defenseless child suffered at the hands of Adam King. These cases are among the most difficult for the FBI, but they are also the most impactful,” said Acting Special Agent in Charge Jason Kaplan of the FBI Oklahoma City Field Office. “Thanks to our partnership with the Catoosa Police Department and the U.S. Attorney’s Office, this depraved individual will now face justice for his terrible crimes.”
According to evidence presented at trial, from Nov. 2017 through Aug. 2021, King knowingly engaged in a sexual act with a minor under 12. In 2017, King rekindled a relationship with a former girlfriend with an eight-year-old daughter. Shortly after the girlfriend moved in with King, he began sexually abusing the child while her mother was at work.
During the trial, the child victim described the sexual abuse she received and reported the abuse to a school counselor. Experts further testified that the evidence collected from King’s bedroom matched the DNA of the child victim.
The investigation showed that King and his girlfriend, the mother of the victim, denied any wrongdoing by King. Once the investigation began, the minor victim was removed from the mother’s home and placed in the custody of her grandparents.
King will remain in the custody of the U.S. Marshal Service. Sentencing will be scheduled at a later date.
The FBI, the Catoosa Police Department, and the Oklahoma State Bureau of Investigations investigated the case. Assistant U.S. Attorneys Valeria Luster and Matthew Cyran prosecuted the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Federal Jury Convicts St. Croix Man on Production of Child Pornography and Second-Degree RapeRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that a federal jury convicted Dante James, 28, of St. Croix, on production of child pornography and second-degree rape charges. James awaits sentencing on a date to be set by District Judge Wilma Lewis. For his conviction, James faces a mandatory minimum sentence of 15 years and a maximum of 30 years incarceration on the federal production of child pornography charge, and a maximum of 10 years incarceration on the local second-degree rape charge.
“Sexual abuse impacts our entire community and exposes its victims to a lifetime of trauma. It is particularly heinous when sexual predators exploit our young children. We remain committed to fully seeking justice for victims of child exploitation and sexual abuse by prosecuting sex offenders of the law in hopes of creating a safe community for our children”, said United States Attorney Delia L. Smith.
“The defendant’s sexual abuse was also an abuse of trust”, said Homeland Security Investigations Assistant Special Agent in Charge Eugene Thomas. As the victim’s former steel pan instructor, James abused her trust to be a role model and a leader. HSI will continue to work with the Virgin Islands Police Department to ensure that predators who prey on minors in our community are convicted of their crimes.”
According to evidence presented at trial, between January 1, 2021, and August 23, 2022, James engaged in sexual intercourse and other sexually explicit conduct with a 16-year-old minor. James produced a video recording of the sexual acts with the minor with the use of devices shipped in interstate and foreign commerce. The victim only learned of the recording after it was posted on social media, and immediately reported the incident to the Virgin Islands Police Department and provided them with a copy of the video.
This case was investigated by Homeland Security Investigations and the Virgin Islands Police Department and was prosecuted by Assistant United States Attorneys Rhonda Williams-Henry and Everard Potter. 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 http://www.justice.gov/psc.
Eight Year Prison Term Handed Down in Connection with Teen Crime Spree That Ended in DeathRead the Press Release
WASHINGTON – Duron Hudson, 23, of Washington, D.C., was sentenced today to 102 months in prison for involuntary manslaughter while armed in connection with the killing of a homeless man in Northwest D.C., in November 2019. The sentence was announced by U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Hudson pleaded guilty on December 20, 2023, to involuntary manslaughter while armed, and other felony and misdemeanor charges arising from multiple incidents occurring primarily during a six-week period in 2019, including two others involving serious injuries to the victim. In addition to the prison term, Superior Court Judge Rainey Brandt ordered five years of supervised release.
According to the government’s case, on November 29, 2019, at approximately 3:00 a.m., Hudson and his girlfriend were seen arguing while standing near the intersection of 13th and U Street NW. Shortly thereafter Hudson walked across the street in the direction of the Lincoln Theater and approached the victim, Nahzil Zaid Abdul Rahim, a homeless man. After a short conversation, Mr. Rahim walked away from Hudson, in an attempt to distance himself from the defendant. Hudson then began chasing the victim, picked up rocks or a brick-like material and threw it with full force at Mr. Rahim. It missed hitting the victim but Hudson threw another brick which struck Mr. Rahim, who fell down in the street and hit his head on the pavement. While disoriented and lying barely conscious in the street, Mr. Rahim was struck by a car and died from multiple blunt force injuries. The driver of the striking vehicle left the scene.
Later the same day at approximately 2:30 p.m., Hudson robbed a female victim of her cell phone in the 1500 block of U Street Northwest. Hudson approached the victim, took her cell phone by force, and fled the scene. Mr. Hudson was also involved in incidents on December 9, 2019 and January 11, 2020, where he seriously injured the victims trying to take their property.
Hudson was initially arrested and detained on January 16, 2020, in connection with the cellphone robbery on December 9, 2019, and an attempt to steal a motorbike on June 26, 2019. Hudson was 18 years old when the first crime was committed. He was arrested on August 23, 2023, and charged with involuntary manslaughter while armed. He was on release at the time and has been detained since his re-arrest on the manslaughter charge.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from by the Metropolitan Police Department. They also commended the work of Assistant U.S. Attorney John Interrante.
Eight People, to Include Five Latin Kings, Charged with Drug and Firearm OffensesRead the Press Release
MIAMI – On July 11, the United States unsealed an indictment charging eight defendants, including five members of the Almighty Latin King gang (“Latin Kings”), with federal drug and firearm offenses.
The twenty-six count indictment charges Dayana Garcia, 34, Eduardo Monteagudo, 41, and Armando Rodriguez, Jr., 38, all of Miami, Fla., with conspiring with Bernardo Olvera, a/k/a “King Handsome,” 35, also of Miami, to distribute 500 or more grams of cocaine in Miami-Dade County.
According to allegations in the court record, to include previously filed criminal complaints, Olvera is a known member of the Latin Kings gang, as are codefendants Jerry Rodriguez, a/k/a “King Suave,” 30, of West Palm Beach, Fla., Blas Barrios, a/k/a “King Blasito,” 44, of Miami, Joshua De Paula, a/k/a “King Vision,” 28, of West Palm Beach, and Ricky Mourin, a/k/a “King Rick,” 33, of Naranja, Fla. Olvera, Rodriguez, Barrios, De Paula, and Mourin engaged in the illegal sale of narcotics and/or firearms on multiple occasions between January and June 2024. The indictment charges Olvera, Rodriguez, Barrios, De Paula, and Mourin with conspiring to distribute 500 or more grams of cocaine, 50 grams or more of methamphetamine, and 28 grams of cocaine base throughout South Florida.
Olvera, Rodriguez, Barrios, and De Paula also face federal charges for criminal conduct involving firearms. Olvera and Rodriguez, both convicted felons, are charged with unlawfully possessing a firearm in furtherance of a drug trafficking crime and possessing a firearm after a felony conviction. Rodriguez, Barrios, and De Paula, were also charged with firearms trafficking and possessing firearms after felony convictions, with Rodriguez facing an additional charge for unlawfully transferring a machine gun.
Olvera, Rodriguez, Barrios, De Paula, and Mourin were taken into custody on June 27, at locations across South Florida. They each made their initial appearances in the Southern District of Florida on June 28. If convicted, Olvera, Rodriguez, Barrios, De Paula, and Mourin each face up to life in prison. They are all currently detained.
On July 11, Garcia and Monteagudo were taken into custody in Miami and had their initial appearances in the Southern District of Florida. Garcia and Monteagudo are currently detained. Rodriguez, Jr. is pending arrest. If convicted, Garcia, Rodriguez, Jr. and Monteagudo each face up to 40 years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Miami-Dade State Attorney Katherine Fernandez Rundle of the Miami-Dade State Attorney’s Office; Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD); Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami; and U.S. Marshal Gadyaces S. Serralta of the U.S. Marshals Service (USMS) made the announcement.
ATF Miami Field Office, MDPD, HSI Miami and USMS Miami investigated the case and executed the arrest warrants. The Miami-Dade County State Attorney’s Office provided invaluable assistance. Assistant U.S. Attorney Monica K. Castro is prosecuting the case. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.
An indictment and criminal complaint contain mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
ATF’s National Integrated Ballistic Information Network (NIBIN) was used to ascertain historical information regarding firearms. 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 investigation was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies who, cooperatively, target the region’s drug-trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy, which sponsors a variety of initiatives focused the nation’s illicit drug trafficking threats. For more information regarding HIDTA visit https://www.dea.gov/operations/hidta.
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 24-cr-20289.
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Douglas Man Who Burned Two Churches Convicted of Hate Crimes and ArsonRead the Press Release
TUCSON, Ariz. – Yesterday, a federal jury in Tucson found Eric Ridenour, 58, of Douglas, guilty of all six arson and hate crimes counts, for the burning of two churches on May 22, 2023.
Ridenour burned down two churches in Douglas, Arizona: Saint Stephen’s Episcopal Church and First Presbyterian Church. The churches were located on Church Square, a historic district in the border town of Douglas, approximately two hours southeast of Tucson. It is believed to have been the only intersection in the nation containing churches from four different denominations: Southern Baptist, Presbyterian, Episcopal, and Methodist. Trial testimony established that Ridenour intentionally started the fires in both churches because of his hostility towards their practice of having women and members of the LGBTQ community serve in church leadership roles. Ridenour was arrested on May 23, 2023.
“Religious freedom is sacrosanct in America,” said United States Attorney Gary Restaino. “Arson of a church is deplorable. Arson motivated by objections to the religious principles of a church’s congregation is worse. Many thanks to Saint Stephen’s Episcopal Church and First Presbyterian Church, and their parishioners, for their collective courage in responding to this hate crime.”
A conviction for Arson of Property Used in Interstate Commerce carries a minimum penalty of five years in prison and maximum penalty of 20 years in prison. A conviction for Obstruction of Free Exercise of Religious Beliefs by Fire carries a maximum penalty of 20 years in prison. A conviction for Using Fire to Commit Federal Felony carries a penalty of 10 years in prison. A second conviction for Using Fire to Commit Federal Felony carries a penalty of 20 years in prison.
Sentencing is scheduled for October 22, 2024, before United States District Court Judge Scott H. Rash.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Douglas Police Department conducted the investigation in this case. Assistant U.S. Attorneys Austin Fenwick, Ben Goldberg, and Adam Rossi, District of Arizona, handled the prosecution.
CASE NUMBER: CR 23-00908-TUC-SHR
RELEASE NUMBER: 2023-093_Ridenour# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Dominican National Sentenced to Federal Prison for Trafficking FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that PABEL MIGUEL ACOSTA-COLON, 36, a citizen of the Dominican Republic last residing in Jersey City, New Jersey, was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 22 months of imprisonment for distributing fentanyl.
According to court documents and statements made in court, a Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force investigation revealed that Acosta-Colon was trafficking fentanyl powder and pills. On June 21, 2023, investigators conducted a controlled purchase of approximately 100 grams of fentanyl powder and 100 fentanyl pills from Acosta-Colon in Stamford. Acosta-Colon was arrested on June 28, 2023, after investigators coordinated the purchase of more than 700 grams of fentanyl powder and pills from him.
On January 5, 2024, Acosta-Colon pleaded guilty to possession with intent to distribute, and distribution of, fentanyl.
Acosta-Colon, who is detained, faces immigration proceedings when he completes his prison term.
This matter was investigated by the DEA’s Bridgeport HIDTA Task Force with the assistance of the Stamford Police Department and Trumbull Police Department. The DEA’s Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford, and Danbury Police Departments. The case was prosecuted by Assistant U.S. Attorney Stephanie T. Levick.
Departments of Justice and Interior Host 2024 Tribal Justice, Safety and Wellness SummitRead the Press Release
The Justice Department and the Department of the Interior convened this year’s Tribal Justice, Safety, and Wellness Summit from July 9 – 11. The three-day virtual event featured several key presentations and panels on public safety issues taught by nationally recognized subject matter experts working in American Indian and Alaska Native communities. Hundreds of federal, state, and Tribal law enforcement officials, prosecutors, advocates, court staff, victim/witness services staff, and Tribal leaders attended the Summit.
Attorney General Merrick B. Garland provided opening remarks. He reiterated the Department’s commitment to working with Tribal partners to ensure that Tribal communities feel safe. He also discussed the Department’s efforts to address, with our federal and Tribal law enforcement partners, the public safety challenges that Tribes face, including the disproportionately high rates of violence experienced by American Indians and Alaska Natives, the crisis of missing or murdered Indigenous persons, and the devastating impact of human trafficking and drug trafficking.
“Public safety in Tribal communities is a core priority for this Department”, said Attorney General Garland. “And partnerships between federal and Tribal law enforcement are among our greatest tools to meet the many challenges that Tribes face.”
To address the crisis of missing or murdered Indigenous persons and to help families get the justice and answers they deserve, last year the Department created the Missing or Murdered Indigenous Persons Regional Outreach Program, which places five attorneys and five coordinators in designated regions across the United States to aid in the prevention of and response to missing or murdered Indigenous persons.
Summit attendees participated in a variety of panels on public safety issues within four training tracks: resources, missing or murdered Indigenous persons (MMIP), criminal justice law enforcement and prosecution, and technology.
FBI Director Chris Wray also gave opening remarks at the Summit. “Protecting Native American communities has been a priority for the FBI since our organization was founded more than a century ago,” said Director Wray. “And we remain just as committed today as we were then to combatting criminal activity on Tribal land, supporting and protecting victims, and helping Indigenous communities heal and thrive.”
Director Wray also highlighted efforts to combat the unacceptably high levels of violence that Native Americans face. For example, the FBI added two more task forces over the past year as part of the FBI’s Safe Trails Task Forces initiative, which focuses on apprehending the most dangerous and violent criminal offenders in tribal communities. Wray also announced the surge of resources to tribal areas once again this summer for Operation Not Forgotten 2024.
The Summit included presentations on the untold legal history of the Osage murders, elder abuse, environmental justice, MMIP initiatives such as the development of Tribal community response plans, law enforcement responses to sexual assault and domestic violence, and technology initiatives, such as the Tribal Access Program, to support public safety in American Indian and Alaska Native communities.
The Justice Department is committed to addressing the persistent violence endured by Native American communities and bringing justice to victims and their families. The widely attended 2024 Tribal, Justice, Safety and Wellness Summit expanded the circle of partners and the knowledge needed to strengthen public safety, health, and wellness in Tribal communities across the country.
Del Valle Felon Sentenced to More Than 12 Years in Federal Prison for Drug Trafficking, Firearm ChargesRead the Press Release
AUSTIN, Texas – A Del Valle man was sentenced in federal court to 150 months in prison for possession with intent to distribute a controlled substance and felon in possession of a firearm.
According to court documents, Anthony Robles, 48, sold nine ounces of methamphetamine to an undercover law enforcement agent on April 26, 2023. The following day, agents executed a search warrant at his residence and recovered 19 firearms, ballistic vests and body armor, and diamonds. Agents also recovered more than 600 grams of methamphetamine, more than 500 grams of heroin, approximately one kilogram of fentanyl, and more than 50 grams of cocaine.
Robles was arrested Oct. 18, 2023. He pleaded guilty to one count of possession with intent to distribute a controlled substance and one count of felon in possession of a firearm.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The Drug Enforcement Administration and Texas Department of Public Safety investigated the case.
Assistant U.S. Attorney Matt Harding prosecuted the case.
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Corning sex offender facing new child pornography chargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Ryan M. Newman, 33, of Corning, NY, was arrested and charged by criminal complaint with production, distribution, receipt, and possession of child pornography. As a convicted sex offender at the time of the alleged crimes, Newman faces an enhanced minimum penalty of 25 years in prison, of maximum penalty of 50 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, Newman was convicted of child pornography crimes by New York State in 2012, sentenced to serve a local jail term and 10 years’ probation, and required to register as a Level 3 Sex Offender, which is someone considered to be at high risk of re-offending and a threat to public safety.
In January 2021, the National Center for Missing and Exploited Children (NCMEC) received a report from Snapchat that a user had uploaded a video of child pornography. NCMEC sent the tip to the New York State Police, who executed a search warrant on Newman’s person and residence in 2022. The search determined that Newman uploaded the child pornography video to Snapchat and possessed other child pornography on his electronic devices. Newman remained out of custody following the 2022 search warrant by the State Police.
In April 2024, the FBI Corning received a tip that pornography involving a child in the Corning area, was distributed to an undercover agent in Illinois. Subsequent investigation determined that Newman sexually abused the child and produced the child pornography. Newman was taken into custody by the FBI and Corning Police. In addition, to federal charges, he is also facing charges in Steuben County Court.
Newman made an initial appearance today before U.S. Magistrate Judge Marian W. Payson and is being held without bail.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, Corning Office, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Corning Police Department, under the direction of Chief Kenzie Spaulding.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Convicted Felon Sentenced to Eleven Years in Prison on Drug and Gun ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced a convicted felon on drug and gun charges, announced U.S. Attorney Prim F. Escalona and Homeland Security Investigations (HSI) Special Agent in Charge Katrina W. Berger.
U.S. District Court Judge Madeline H. Haikala sentenced Allen H. Davis, also known as “Big Homie,” 46, of Midfield, to 132 months in prison. In March, Davis pleaded guilty to distribution of methamphetamine; possession of methamphetamine with intent to distribute; possession of fentanyl, heroin, and cocaine with intent to distribute; and felon in possession of a firearm.
According to the plea agreement, in February 2023, HSI and the Alabama Law Enforcement Agency began investigating Davis for suspected fentanyl distribution. On March 23, 2023, agents located Davis at a residence in Midfield and executed a search warrant that day. During the search, agents found methamphetamine, heroin, fentanyl, and cocaine base. Agents also found a Taurus 9mm pistol with an extended high-capacity magazine and a Zastava Arms pistol. Both firearms were fully loaded.
HSI investigated the case, along with the Alabama Law Enforcement Agency. Assistant U.S. Attorney Benjamin A. Keown, Sr. prosecuted the case.
Columbia County Man Arrested for Distribution of Child Sexual Abuse MaterialRead the Press Release
Jacksonville, FL – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging William Ervin Daniels (45, Lake City) with distributing child sex abuse material. If convicted, Daniels faces a mandatory minimum penalty of 5, up to 20 years, in federal prison.
According to the criminal complaint, Daniels distributed two videos containing child sex abuse material in a group called “Da Litl Kidz Gc” on a social media application on November 16, 2023. He identified his name and phone number in his account profile on the social media application. Daniels was also listed as an administrator for the group to which he distributed the videos.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Kelly S. Milliron.
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.
Colombian Citizen Pleads Guilty to Illegally Exporting Firearms from Florida to ColombiaRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Jorge Giovanny Gonzalez-Lopez (42, Colombia) has pleaded guilty to conspiracy to smuggle firearms from the United States to Colombia. Gonzalez-Lopez faces a maximum term of five years in federal prison and three years of supervised release, although he is expected to be removed from the United Staes at the completion of his prison sentence. Gonzalez-Lopez was extradited from Colombia to the United States in February 2024, and he has been in custody since that time. His sentencing hearing is expected to be set in the next 90 days.
According to court documents, Gonzalez-Lopez is a citizen of Colombia who traveled to Florida in late 2017 and again in early 2018 and, aided and abetted by others, acquired firearms, including several types of assault rifles, then illegally exported them from Clearwater, Tampa and Kissimmee, Florida, to Colombia. Gonzalez-Lopez and his co-conspirators attempted to obliterate the serial numbers on some of the firearms so that they could not be traced. Neither Gonzalez-Lopez nor his co-conspirators applied for or obtained the necessary licenses for exporting defense articles as required by federal law.
This case was investigated by Homeland Security Investigations, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and Colombia’s Policía Fiscal y Aduanera (POLFA), a unit of the National Police of Colombia. It is being prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché at the U.S. Embassy in Bogotá worked with Colombian authorities to secure the arrest and extradition of Gonzalez-Lopez.
Clay County White Supremacist Gang Member Pleads Guilty to Drug and Firearm ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Danny Ray Boree (39, Keystone Heights) has pleaded guilty to possession with intent to distribute 5 grams or more of methamphetamine and possession of a firearm by a convicted felon. Boree faces a mandatory minimum penalty of 5 years, up to 40 years, in federal prison on the drug charge and up to 15 years’ imprisonment on the firearm offense. Boree also agreed to forfeit a Raven Arms pistol traceable to the firearm offense. Boree was arrested on September 8, 2023 and ordered detained. No sentencing date has been set.
According to court documents and court proceedings, Boree is a member of The Unforgiven, a violent white supremacist gang. On June 8, 2023, a deputy with the Clay County Sheriff’s Office (CCSO) pulled over a Jeep for a stop sign violation in Keystone Heights. Upon approaching the car, the deputy observed Boree in the passenger seat with a meat cleaver/hatchet directly in front of him and a knife in a sheath, by his feet. For officer safety, the deputy directed Boree to step out of the car. As Boree got out, he observed part of a clear baggie in the waistline of Boree’s shorts. During a pat down of Boree, the deputy removed the baggie which contained a large amount of methamphetamine. During a subsequent search of the car, CCSO located a Raven Arms pistol and additional methamphetamine.
At the time of the drug offenses, Boree had previously been convicted in state court in Florida for 10 felonies, including battery on a law enforcement officer, resisting an officer with violence, and possession of a firearm by a convicted felon (2007, 2019). As a convicted felon, Boree is prohibited from possessing a firearm under federal law. Boree had recently been released from the Florida Department of Corrections in January 2023, for his last firearm conviction.
This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
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.
Centralia Man Sentenced to 30 Years on Drug and Gun ChargesRead the Press Release
EAST ST. LOUIS, Ill. – A federal judge in southern Illinois sentenced a man from Centralia to 30 years’ imprisonment for selling drugs, unlawfully possessing a firearm and tampering with a witness.
In February 2024, a jury convicted De’Andre Owens, 37, on one count of distribution of methamphetamine and one count of tampering with a witness, victim or informant. In February 2022, Owens pleaded guilty to one count of felon in possession of a firearm.
“Felons who continue to sell drugs, possess firearms illegally and attempt to pay off witnesses to further conceal their crimes are a true threat to public safety, and I commend the law enforcement officers who worked this investigation that ultimately placed De’Andre Owens behind bars,” said U.S. Attorney Rachelle Aud Crowe.
According to court documents and evidence presented at trial, a jury found Owens guilty of selling 18 grams of meth in March 2022. The jury also found Owens guilty of trying to pay off an individual to prevent their testimony in his case.
“This substantial sentence underscores De’Andre Owens’ criminal history as a career offender,” said Acting Special Agent in Charge Jermaine Deans. “The successful outcome of the investigation is a testament to the collaborative efforts and teamwork of multiple law enforcement agencies working shoulder-to shoulder with the FBI to make safer communities.”
Owens was prohibited from possessing a firearm as an individual with a prior felony drug conviction from 2016. In December 2019, police conducted a search warrant on Owens’s vehicle and found a 9mm pistol.
Following imprisonment, Owens will serve eight years of supervised release.
The FBI Springfield Field Office, the Marion County Sheriff’s Office, the Fayette County Sheriff’s Office, the Clinton County Sheriff’s Office, the Centralia Police Department and the Carlyle Police Department contributed to the investigation. Assistant U.S. Attorneys Jennifer Hudson and David Dean prosecuted the case.
California Man Pleads Guilty to Federal Cares Act FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that NIPUN DESAI (“DESAI”), formerly of Hammond, La., but now a California resident, age 55, pleaded guilty on July 10, 2024 before U.S. District Judge Wendy B. Vitter to making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
On March 27, 2020, the President of the United States signed into law the CARES Act, which provided emergency assistance, administered by the United States Small Business Administration (SBA), to small business owners affected by the Coronavirus (COVID-19) pandemic. The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL) program.
According to court records, on or about January 25, 2021, DESAI made false statements to an approved lender in order to obtain an SBA backed PPP loan in the amount of $146,947.50 for the Fairbridge Hotel in Metairie, LA. At the time of the loan application, DESAI’s hotel was permanently closed and had no employees or payroll.
DESAI is to be sentenced on October 8, 2024. At that time, he faces up to five years in prison, a fine of up to $250,000, up to three years of supervised release, and the payment of a $100 mandatory special assessment fee.
For more information on the Department of Justice’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.
As part of the Pandemic Response Accountability Committee (PRAC) Task Force, this investigation was conducted by U.S. Department of Veterans Affairs - Office of Inspector General. The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
U.S. Attorney Evans praised the work of the U.S. Department of Veterans Affairs - Office of Inspector General, the Department of Labor – Office of Inspector General, and the U.S. Bankruptcy Trustee’s Office (Region 5) in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.
Buffalo man who threatened to blow up the VA sentencedRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Demont Coston, 56, of Buffalo, NY, who was convicted of assault upon a federal employee, was sentenced to time served by U.S. Magistrate Judge Michael J. Romer.
Assistant U.S. Attorney Andrew J. Henning, who handled the case, stated that on September 12, 2023, Coston called the U.S. Veterans Affairs Crisis Line and made repeated threats to blow-up the Buffalo VA facility. Later that same day Coston again called the VA Crisis Line and stated that “I should go blow... I should go burn the building down.” On September 14, 2023, Coston texted the Crisis Line that “The VA haven't done (expletive) for me in 30 years, it’s time to get rid of it, by any means necessary.” Coston also said that he would be “Taking out all V.A. facilities, but I have 1 n mind first” and “I'm in DC, near the main VA ha ha ha good, I know where to hit them.”
The sentencing is the result of an investigation by the VA Medical Center Police, under the direction of Chief Richard King and the VA Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Christopher Algieri.
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Broward County Man Sentenced to Prison for Making False Statements During a Firearms Purchase and Illegally Possessing a FirearmRead the Press Release
MIAMI – Robert Zildjian Mondragon, 31, of Margate, Fla., was sentenced to 33 months in prison, to be followed by 3 years of supervised release, after being convicted of making a false statement during a firearm purchase and possession of a firearm by an unlawful user of a controlled substance. Mondragon was sentenced today by U.S. District Judge William P. Dimitrouleas during a hearing in Fort Lauderdale.
According to the specific findings of fact issued by the Court, on April 9, 2024, Mondragon stated in a Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Firearms Transaction Record, specifically ATF Form 4473, on June 18, 2019, that he was not an unlawful user of marijuana. Mondragon made the false statement in connection with the attempted purchase of a Radical Arms rifle in Miami with the intent to deceive the licensed firearm dealer and that false statement was material to the lawfulness of the sale. The Firearms Transaction Record, Form 4473, had in bold print a warning that the use or possession of marijuana remains a federal violation and it is unlawful even if marijuana had been legalized or decriminalized for medical purposes in the applicant’s state. Prior to that attempted purchase, Mondragon had established a years-long pattern of unlawful marijuana use.
On Nov. 14, 2021, Mondragon was photographed with another firearm. The year before, his phone contained references to weed on seventy-one days.
The sentencing hearing and related court filings referenced additional information regarding Mondragon’s conduct and background. As was addressed in court, since 2013, Mondragon has made multiple threats to commit a mass shooting. In 2018, the Florida Legislature enacted the Marjory Stoneman Douglas High School Public Safety Act, which allowed members of law enforcement to seek a court order restricting firearm and ammunition possession by a person who poses a danger to themselves or others, and on March 29, 2018, City of Corals Springs officers sought a temporary risk protection order against Mondragon which was granted after a hearing. That order remains in place and was in effect when he attempted to purchase a firearm in June 2019.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the ATF, Miami Field Office, and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) made the announcement.
ATF and BSO investigated the case. Assistant U.S. Attorneys Anita White and Ajay Alexander prosecuted it. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
This prosecution is a part of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through the PSN program, a broad spectrum of law enforcement and community 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 to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.
If you have information about a possible threat and/or the unlawful possession of a firearm, contact your local law enforcement agency (911).
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-60196.
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Boston Man Sentenced to 21 Months in Prison for Firearm Trafficking ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced today for conspiring to illegally transport firearms from Alabama into Massachusetts.
Kobe Smith, 25, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 21 months in prison and three years of supervised release. In March 2024, Smith pleaded guilty to one count of conspiracy to illegally transport firearms. Smith was indicted by a federal grand jury in July 2022 along with co-defendants Jahquel Pringle, Jarmori Brown and Brandon Moore.
Smith, Pringle, Brown and Moore conspired to obtain at least 24 firearms from Alabama, where Moore lived, and then transport them to Boston. Smith would place orders with Moore for firearms. In January 2020, after making arrangements with Smith, Moore personally delivered at least one firearm obtained in Alabama to Pringle in Boston. In February 2020, Smith attempted to obtain one or two additional firearms from Moore. In two separate trips in July and August 2020, Pringle traveled from Boston to Alabama on a commercial bus to pick up firearms from Moore and then transported them, concealed in luggage, back to Boston. Pringle was joined by Brown for the August trip. At least seven of the firearms have been recovered from the streets of Boston and surrounding communities.
In July 2023, Brown was sentenced to 18 months in prison and three years of supervised release. In May 2024, in the Middle District of Alabama, Moore was sentenced to 18 months in prison and three years of supervised release. In June 2024, Pringle was sentenced to 42 months in prison and three years of supervised release.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. This case was prosecuted by the Major Crimes Unit.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.Beckley Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Liteef Hughes, 43, of Beckley, was sentenced today to eight years in prison, to be followed by three years of supervised release, for the distribution of cocaine base, also known as “crack.”
According to court documents and statements made in court, on April 28, 2022, Hughes sold a quantity of crack to a confidential informant at his Beckley residence. On May 5, 2022, law enforcement officers executed a search warrant at Hughes’ residence and found quantities of cocaine and crack and $1,667. Hughes admitted to possessing the cocaine and crack, and further admitted that the $1,667 was proceeds obtained from drug trafficking. The investigation revealed that Hughes had distributed cocaine for approximately two and a half years.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
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. 5:22-cr-105.
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Beckley Man Sentenced to 10 Years in Prison for Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Steven Marvin Lawson Jr., also known as “Bali,” 30, of Beckley, was sentenced today to 10 years in prison to run consecutively to his current state sentence, which includes a life term with no chance for parole, for being a felon in possession of a firearm.
According to court documents and statements made in court, on September 28, 2020, Lawson fatally shot the 17-year-old mother of his child with a Springfield Armory model XD .45-caliber pistol at a residence in Jumping Branch. With another individual, Lawson dismembered the minor female’s body following the murder and discarded the body parts across several states.
Lawson falsely told investigators that he dismantled the firearm, which was stolen, and threw the parts away at different locations. Investigators recovered the firearm intact from the mother of Lawson’s other children at her Georgia residence, where Lawson had hidden the firearm in a bag of laundry. Analysis by the West Virginia State Police Forensic Laboratory confirmed that the recovered firearm fired the bullet that killed the minor female.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Lawson was prohibited from possessing a firearm because of his prior felony convictions for two counts of theft by receiving stolen property in Gwinnett County, Georgia, Superior Court on May 13, 2016.
Lawson has a long criminal history dating from when he was 17 that also includes more than a half-dozen convictions for misdemeanor offenses. A Summers County Circuit Court jury found Lawson guilty of first-degree murder, child abuse resulting in death by a parent, guardian or custodian, concealment of a dead body and conspiracy to conceal a dead body in the death of the 17-year-old on March 15, 2024.
“If Mr. Lawson had not possessed a loaded firearm that he knew he was not allowed to possess, the 17-year-old minor might still be alive,” said United States Attorney Will Thompson. “He then helped to dismember and discard her as if she was a disposable object and not a person who mattered. He also showed a complete disregard for how his actions would devastate her family and loved ones, including his own child with her. Today’s sentence reflects the heinous nature of this offense, is appropriate given Mr. Lawson’s repeated criminal conduct, and protects the public from further crimes by him.”
Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the West Virginia State Police-Bureau of Criminal Investigation (BCI).
“This case serves as a grim reminder that convicted felons and domestic abusers should not possess firearms,” said ATF Special Agent in Charge Shawn Morrow of the Louisville Division which covers all of West Virginia. “A 17-year-old mother has been taken from her family, and our community suffered another senseless violent crime. We hope this sentence brings some sense of justice and sends a very clear message that ATF and our partners will use every tool available to protect our communities."
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Monica D. Coleman, Kathleen Robeson and Kristin F. Scott 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.
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. 5:22-cr-217.
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Armstrong Group Agrees to Pay $6.5M to Settle False Claims Act Allegations Relating to Subsidies Under the Federal Communications Commission’s High-Cost ProgramRead the Press Release
Butler, Pennsylvania, based Armstrong Group has agreed to pay $6.5 million to resolve allegations that it violated the False Claims Act by knowingly violating the Federal Communications Commission’s (FCC) rules governing the agency’s High-Cost Program and submitting improper costs in order to inflate the subsidies it received from the federal Universal Service Fund (USF).
The FCC established the USF to help ensure that all people in the United States have access to rapid, efficient, nationwide communications service with adequate facilities at reasonable charges. The High-Cost Program is one of four programs that comprise the USF and aims to ensure that consumers in rural, insular, and high-cost areas have access to modern communications networks capable of providing reasonably comparable voice and broadband service, both fixed and mobile, at rates that are reasonably comparable to those in urban areas. In pursuit of that goal, the High-Cost Program provides federal funds to qualified eligible telecommunications carriers, including incumbent local exchange carriers (ILECs), that receive subsidies to expand connectivity infrastructure within the United States.
The United States alleged that, between 2008 and 2023, five ILECs owned by Armstrong Group (Armstrong Telephone Company – Maryland, Armstrong Telephone Company – New York, Armstrong Telephone Company – Northern Division, Armstrong Telephone Company – Pennsylvania, and Armstrong Telephone Company – West Virginia) failed to comply with FCC regulations that governed what costs they were allowed to report for purposes of claiming subsidy payments from the government, and as a result these companies received greater subsidy payments than those to which they were entitled.
“Telecommunications providers that seek to participate in important FCC programs like the High-Cost Program must comply with applicable rules, including those governing how they report the costs used to calculate their subsidies,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to protect the integrity of the FCC’s operations and services.”
“When providers like the Armstrong Group fail to follow federal law and FCC regulations, they jeopardize not only critical government programs but also consumers’ ability to access a modern lifeline — rapid, reliable, and efficient telecommunications services,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “Today’s settlement demonstrates our office’s dedication to ensuring the business community plays fairly, particularly with respect to public funds, and further assures our rural neighbors throughout the district that we will work vigorously to protect their access to essential services that many people take for granted.”
“In the digital age, it is critical for everyone, everywhere to have access to reliable, high-speed broadband, including in rural and underserved areas. That is why we are laser-focused on pursuing waste, fraud, and abuse in these critical programs and ensuring that available funds flow to companies that play by the rules,” said General Counsel Michele Ellison for the FCC. “I applaud the continuing collaboration among the Office of General Counsel, the Office of the Inspector General, and the U.S. Department of Justice toward this important objective.”
“Carriers receiving support from the USF or any FCC benefit program must understand that actions undermining the claims process will not be tolerated and will be investigated vigorously,” said Inspector General Fara Damelin of the FCC. “The FCC Office of Inspector General will continue to work with our law enforcement partners and the FCC to ensure the integrity of the FCC’s programs. I would like to thank the Department of Justice and the United States Attorney’s Office for the Western District of Pennsylvania for their unrelenting dedication to this case.”
Contemporaneous with the civil settlement, Armstrong Group has entered into a robust corporate compliance agreement with the FCC, requiring Armstrong to adopt concrete changes in the company’s internal controls and implement comprehensive oversight and monitoring mechanisms.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by James Ranko, Armstrong Group’s former Controller. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any subsequent recovery. The qui tam case is captioned U.S. ex rel. Ranko v. Armstrong Group of Companies, et. al., Case No. 17-1052 (W.D. Pa.). The whistleblower will receive $1,267,500 as his share of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Western District of Pennsylvania and the FCC’s Office of Inspector General, with assistance from the FCC’s Office of General Counsel.
Senior Trial Counsel Benjamin C. Wei and Assistant U.S. Attorney Paul E. Skirtich for the Western District of Pennsylvania handled the matter. Investigative Attorneys Elliot Lowenstein and Peter Feinberg of the FCC Office of Inspector General provided investigation support.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementArmstrong Group Agrees to Pay $6.5M to Settle False Claims Act Allegations Relating to Subsidies Under the Federal Communications Commission’s High-Cost ProgramRead the Press Release
Butler, Pennsylvania, based Armstrong Group has agreed to pay $6.5 million to resolve allegations that it violated the False Claims Act by knowingly violating the Federal Communications Commission’s (FCC) rules governing the agency’s High-Cost Program and submitting improper costs in order to inflate the subsidies it received from the federal Universal Service Fund (USF).
The FCC established the USF to help ensure that all people in the United States have access to rapid, efficient, nationwide communications service with adequate facilities at reasonable charges. The High-Cost Program is one of four programs that comprise the USF and aims to ensure that consumers in rural, insular, and high-cost areas have access to modern communications networks capable of providing reasonably comparable voice and broadband service, both fixed and mobile, at rates that are reasonably comparable to those in urban areas. In pursuit of that goal, the High-Cost Program provides federal funds to qualified eligible telecommunications carriers, including incumbent local exchange carriers (ILECs), that receive subsidies to expand connectivity infrastructure within the United States.
The United States alleged that, between 2008 and 2023, five ILECs owned by Armstrong Group (Armstrong Telephone Company – Maryland, Armstrong Telephone Company – New York, Armstrong Telephone Company – Northern Division, Armstrong Telephone Company – Pennsylvania, and Armstrong Telephone Company – West Virginia) failed to comply with FCC regulations that governed what costs they were allowed to report for purposes of claiming subsidy payments from the government, and as a result these companies received greater subsidy payments than those to which they were entitled.
“Telecommunications providers that seek to participate in important FCC programs like the High-Cost Program must comply with applicable rules, including those governing how they report the costs used to calculate their subsidies,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to protect the integrity of the FCC’s operations and services.”
“When providers like the Armstrong Group fail to follow federal law and FCC regulations, they jeopardize not only critical government programs but also consumers’ ability to access a modern lifeline — rapid, reliable, and efficient telecommunications services,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “Today’s settlement demonstrates our office’s dedication to ensuring the business community plays fairly, particularly with respect to public funds, and further assures our rural neighbors throughout the district that we will work vigorously to protect their access to essential services that many people take for granted.”
“In the digital age, it is critical for everyone, everywhere to have access to reliable, high-speed broadband, including in rural and underserved areas. That is why we are laser-focused on pursuing waste, fraud, and abuse in these critical programs and ensuring that available funds flow to companies that play by the rules,” said General Counsel Michele Ellison for the FCC. “I applaud the continuing collaboration among the Office of General Counsel, the Office of the Inspector General, and the U.S. Department of Justice toward this important objective.”
“Carriers receiving support from the USF or any FCC benefit program must understand that actions undermining the claims process will not be tolerated and will be investigated vigorously,” said Inspector General Fara Damelin of the FCC. “The FCC Office of Inspector General will continue to work with our law enforcement partners and the FCC to ensure the integrity of the FCC’s programs. I would like to thank the Department of Justice and the United States Attorney’s Office for the Western District of Pennsylvania for their unrelenting dedication to this case.”
Contemporaneous with the civil settlement, Armstrong Group has entered into a robust corporate compliance agreement with the FCC, requiring Armstrong to adopt concrete changes in the company’s internal controls and implement comprehensive oversight and monitoring mechanisms.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by James Ranko, Armstrong Group’s former Controller. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any subsequent recovery. The qui tam case is captioned U.S. ex rel. Ranko v. Armstrong Group of Companies, et. al., Case No. 17-1052 (W.D. Pa.). The whistleblower will receive $1,267,500 as his share of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Western District of Pennsylvania and the FCC’s Office of Inspector General, with assistance from the FCC’s Office of General Counsel.
Senior Trial Counsel Benjamin C. Wei and Assistant U.S. Attorney Paul E. Skirtich for the Western District of Pennsylvania handled the matter. Investigative Attorneys Elliot Lowenstein and Peter Feinberg of the FCC Office of Inspector General provided investigation support.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementArmed Rocky Mount Narcotics Trafficker Who Fired Shots Sentenced to 50 YearsRead the Press Release
RALEIGH, N.C. – A Rocky Mount cocaine dealer was sentenced to 600 months in federal prison for conspiracy to distribute cocaine and possession of a firearm by a felon. On April 11, 2024, Andre Donnell Downey, age 37, pled guilty to the charges.
“This high-volume drug dealer, who previously served a federal sentence for trafficking cocaine, quickly returned to a life of crime following his release from prison,” said U.S. Attorney Michael Easley. “When arrested again, this time facing drug distribution and illegal gun charges, he sought to continue his criminal activities, including threatening the use of violence towards many individuals. His plan was foiled and now he’s facing the next five decades behind bars.”
“We appreciate our partnerships with the U.S. Attorney's Office and our federal partners as we continue to make Rocky Mount one of the safest places to live,” said Rocky Mount Police Chief Robert Hassell. “The outcome of Andre Donnell Downey's repeated offenses and disregard for the law goes to show drugs, guns, and violent crimes will not be tolerated.”
“The threat repeat offenders pose to our communities is serious,” said ATF Special Agent in Charge Bennie Mims. “ATF and our law enforcement partners remain committed to fighting back against violent crime and removing those individuals who continuously disregard the laws and the safety of the public.”
According to court documents and other information presented in court, in 2021, Downey was identified by investigators as a high-volume cocaine supplier to lower-level dealers in the Rocky Mount area. During the investigation, law enforcement officers observed Downey’s operation of multiple stash houses which he used to distribute cocaine. In December 2021, a search of one house uncovered cocaine, marijuana, and other drug paraphernalia along with nearly $3,000 cash on Downey’s person. By the spring of 2022, investigators began receiving information indicating that Downey had resumed selling drugs out of a stash house on Buena Vista Drive in Rocky Mount. On July 22, 2022, Rocky Mount Police Officers responded to an emergency call at a local convenience store. Downey was seen on the convenience store’s surveillance camera discharging a firearm through the front door of the store at an individual in the parking lot. Officers later collected a 9mm handgun from Downey that matched 9mm shell casings recovered from the scene of the shooting.
Through traffic stops, search warrants, and interviews of individuals who were supplied by Downey, investigators were able to establish that he was responsible for distributing over 60,000 grams of cocaine and 765 grams of crack from 2021 until Downey’s federal arrest in September 2023. After Downey’s federal arrest, he made more than 600 calls from jail within his first month of being in custody. A review of the calls by the Alcohol, Tobacco, Firearms and Explosives (ATF) task force officers found that Downey was discussing the restart of his drug activity following his release and managing his drug trafficking organization’s continued drug sales while in custody. The calls also revealed that Downey was orchestrating the use of violence against other drug traffickers that owed him money.
Downey has a 2009 federal conviction for conspiracy to distribute and possess with intent to distribute 50 grams or more of cocaine base (crack). He served a 70-month sentence for that crime as well as an additional nine months for violating his supervised release.
The prosecution of Downey was a part of the Organized Crime and Drug Enforcement Task Force Operation (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Rocky Mount Police Department, ATF, and the Nash County Sheriff’s Office investigated the case and Assistant U.S. Attorney Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00116-D-1.
Adair County Resident Sentenced to 12 Years for Kidnapping and Federal Firearm CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Justin Kyle Muskrat, age 38, of Bunch, Oklahoma, was sentenced to 151 months imprisonment for one count of Kidnapping in Indian Country, and 120 months for one count of Felon in Possession of Firearm and Ammunition. The counts were ordered to run concurrently.
The charges arose from an investigation by the Adair County Sheriff’s Office, the Cherokee Nation Marshal Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 11, 2023, Muskrat pleaded guilty to kidnapping and illegal possession of a firearm and ammunition. According to investigators, on March 15, 2023, Muskrat, armed with a machete, forced the victim from a Muskogee residence and into the trunk of a waiting car. At an Adair County residence, Muskrat bound, threatened, and brutally assaulted the victim. Muskrat released the victim only after learning that Adair County Sheriff’s deputies had identified Muskrat as the primary suspect in the kidnapping. At the time of Muskrat’s arrest, law enforcement discovered Muskrat knowingly in possession of a .380 semi-automatic pistol and multiple rounds of ammunition despite a prior conviction for a crime punishable by more than one year imprisonment.
The crimes occurred in Muskogee and Adair Counties, within the boundaries of the Muscogee (Creek) Nation Reservation and the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
“ATF is committed to working with its partners to go after evil amongst us. Mr. Muskrat, a multi-convicted felon, allowed his anger to cloud his better judgment when he decided to kidnap and victimize a fellow Oklahoman. A firearm found on Mr. Muskrat’s person during his arrest will extend his time behind bars to consider his actions for many years. Thanks to the hard work of the Adair County Sheriff’s Office, the Cherokee Nation Marshal Service, and the men and women of ATF, another violent offender is off the streets,” stated ATF Special Agent in Charge Jeffrey C. Boshek II.
“I commend the swift mobilization by the Adair County Sheriff’s Office, the Cherokee Nation Marshal Service, and the ATF in bringing Mr. Muskrat’s violent activity to a halt.” said United States Attorney Christopher J. Wilson. “This office stands firm in its relentless commitment to prosecuting those who would seek to disrupt the peace of our streets and homes.”
The Honorable William Paul Johnson, U.S. District Judge of the United States District Court for the District of New Mexico, sitting by assignment, presided over the sentencing hearing in Muskogee, Oklahoma. Muskrat will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys T. Cameron McEwen and Josh Satter represented the United States.
Adair County Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Devin Nakedhead, age 31, of Stilwell, Oklahoma, was sentenced to 51 months in prison for one count of illegal possession of a firearm and ammunition.
The charges arose from an investigation by the Stilwell Police Department and the Federal Bureau of Investigation.
On September 12, 2023, Nakedhead pleaded guilty to one count of Felon in Possession of a Firearm and Ammunition. According to investigators, on January 27, 2023, Nakedhead knowingly possessed a firearm and two rounds of ammunition after having been previously convicted of a crime punishable by more than one year imprisonment.
The Honorable William P. Johnson, Chief U.S. District Judge of the United States District Court for the District of New Mexico, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Nakedhead will remain in the custody of the U.S. Marshal pending transportation to a facility to serve his non-paroleable sentence of incarceration.
Assistant United States Attorney Jonathan E. Soverly represented the United States.
Activity in the U.S. Attorney's OfficeRead the Press Release
Drug Trafficking
Martin Anthony Martinez, Jr., 32, of Cheyenne, Wyoming, was sentenced to 77 months in federal prison for possession with intent to distribute fentanyl. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jul. 9. Based on court documents, beginning in June 2023, Martinez came to the attention of Task Force Officers with the Wyoming Division of Criminal Investigation (DCI) and Drug Enforcement Administration (DEA) when Martinez kept coming up during investigative interviews. On Jul. 5, 2023, a state search warrant was executed on his property which resulted in the seizure of approximately 4,000 fentanyl pills, 16 grams of methamphetamine, and a loaded Glock 32 semiautomatic handgun. Martinez pleaded guilty to the charge of possession with intent to distribute fentanyl on Mar. 24. This case was prosecuted by Timothy J. Forwood.
Victor Paul Gonzalez Brizo, 41, of Tepic, Nayarit, Mexico, was sentenced to 121 months in federal prison for possession with intent to distribute fentanyl. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Jul. 12. According to court documents, in the Spring of 2023, Task Force Officers (TFOs) with the DEA were investigating a conspiracy to distribute fentanyl in the Cheyenne area. TFOs learned that a gray Chevrolet Cruze driven by a Hispanic male, who was later identified as the defendant, was the courier. On Nov. 3, 2023, the DEA obtained a search warrant, and with assistance from the Thornton Police Department, arrested Brizo outside of his residence in Thornton, Colorado. During the search, investigators located and seized a large quantity of U.S. currency, approximately 2,800 fentanyl pills, 106 grams of methamphetamine, 39 grams of heroin, suspected drug ledgers, and packaging with drug residue. This case was prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
11 July 2024
Wewoka Resident Sentenced for Federal Drug CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Chelsea Shiron Murray, age 44, of Wewoka, Oklahoma, was sentenced to 48 months in prison for one count of possessing with the intent to distribute methamphetamine.
The charge arose from an investigation by the Drug Enforcement Administration and the Seminole Police Department.
On August 9, 2023, Murray pleaded guilty to possessing with the intent to distribute methamphetamine. According to investigators, on November 30, 2022, a vehicle driven by Murray was stopped by an officer with the Seminole Police Department for a traffic violation. During the stop, the officer discovered a bag containing over 200 grams of methamphetamine and a set of electronic scales. Murray admitted to driving to Oklahoma City, Oklahoma, to purchase the methamphetamine.
The Honorable William P. Johnson, U.S. Chief Judge in the United States District Court for the District of New Mexico, sitting by assignment, presided over the hearing in Muskogee. Murray will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Jordan Howanitz and Ryan Bondura represented the United States.
Warren County Man Pleads Guilty to Attempted Online Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Robert Cutter, age 44, of Lake George, New York, pled guilty today to the attempted online enticement of a minor.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Cutter admitted that on June 27, 2023, he exchanged sexually explicit text messages with someone he believed was an adult offering the sexual services of a 12-year-old girl in an attempt to entice the child into engaging in sexual acts with him. Cutter also admitted that on that same date, he travelled to a pre-determined location in Warren County, New York, with the intent to engage in sexual acts with the 12-year-old girl. Cutter was arrested by law enforcement shortly after arriving at the location.
At sentencing on November 11, 2024, before United States District Mae A. D’Agostino, Cutter faces at least 10 years and up to life in prison. The judge will also be required to impose a term of post-release supervision of at least 5 years and up to life. The court may also impose a fine of up to $250,000, restitution, and forfeiture of the smartphone Cutter used to commit his offense. 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. Cutter will also have to register as a sex offender upon his release from prison.
This case was investigated by the FBI Child Exploitation Task Force, comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police and Warren County Sheriff’s Office. Assistant U.S. Attorney Allen J. Vickey is prosecuting the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Wapato Man Sentenced to Federal Prison for Violent AssaultRead the Press Release
Yakima, Washington - Chief United States District Judge Stanley A. Bastian sentenced Nicholas Dean Elwell, age 40, of Wapato, Washington, to 46 months in federal prison on one count of Assault Resulting in Serious Bodily Injury. Chief District Judge Bastian also imposed 3 years of federal supervision after Elwell is released from prison.
According to court documents and information disclosed at sentencing, on June 3, 2023, the victim, who is an enrolled member of the Yakama Nation, went to Elwell’s home in Wapato, Washington. Elwell accused the victim of cheating on her and became upset. Elwell, who was wearing steel toed boots, repeatedly kicked the victim in her face and torso, grabbed the victim by her hair and punched her several times. Elwell also stomped on the victim’s stomach. The victim told investigators she could not eat for a week because of the pain from that injury. The victim was eventually able to escape out a bathroom window.
When law enforcement encountered the victim later that night, investigators observed one of the victim’s eyes was almost swollen shut, there was swelling on the victim’s forehead and both sides of her face. Additionally, there was blood on her lips. Law enforcement also observed dried blood on Elwell’s clothing, left boot, and bedsheets.
“I want to commend the courage of the victim in this case for coming forward and engaging with law enforcement to hold her abuser accountable,” stated United States Attorney Vanessa Waldref. “By working with our tribal and federal law enforcement partners, we can continue to build trust and foster safer and stronger communities on Tribal lands and throughout Eastern Washington.”
“Without the cooperation of the victim in this case, Mr. Elwell may not have been held accountable for his horrific actions.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Fortunately, the victim was able to escape the extreme violence of the attack. I want to commend the efforts of our investigators and partners to help reduce violent crime against our state’s indigenous population.”
This case was investigated by the Federal Bureau of Investigation and the Yakama Nation Police Department. It was prosecuted by Assistant United States Attorney Courtney R. Pratten.
U.S. Attorney’s Office Testifies Before D.C. Council in Support of the “Enhancing Mental Health Crisis Support and Hospitalization Amendment Act of 2024”Read the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia testified today at a committee hearing before the Council of the District of Columbia on proposed legislation, Bill 25-0692, addressing the “Enhancing Mental Health Crisis Support and Hospitalization Amendment Act of 2024.”
USAO-DC strongly supports Bill 25-0692, the “Enhancing Mental Health Crisis Support and Hospitalization Amendment Act of 2024.” This bill will enhance the procedures relating to how the civil and criminal systems address the treatment and commitment of people with mental illnesses, when they are dangerous because of that mental illness. This bill will streamline processes and provide more tools to treatment providers and the courts both to address a person’s mental illness and to protect the community. This bill is a crucial tool that will help to address the overlap between mental health, civil commitment processes, and criminal justice.
In addition to appearing before the Council’s Committee on the Judiciary and Public Safety, Elana Suttenberg, Special Counsel to the U.S. Attorney, and Jennifer Mika, U.S. Attorney’s Office for the District of Columbia’s Pretrial Mental Health Coordinator, provided written remarks, available in the accompanying attachment .
U.S. Attorney, Albuquerque FBI Charge Habitual Offender with Domestic AssaultRead the Press Release
ALBUQUERQUE – A Utah man was charged by indictment with assaulting a victim with a knife while she was holding her daughter in Sheep Springs, New Mexico.
Kubert Yanito, 51, an enrolled member of the Navajo Nation, appeared before a federal judge today for an arraignment and detention hearing, and will remain in custody pending trial, which has not been scheduled.
According to the indictment, on October 11, 2023, Yanito allegedly assaulted Jane Doe 1 with a knife while she was holding her daughter, Jane Doe 2. Yanito had previously been convicted of domestic violence, making him a habitual offender.
If convicted of the current charges, Yanito faces up to 10 years in prison.
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 Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the Navajo Nation Department of Criminal Investigations. This case is being prosecuted by Assistant United States Attorney Nichola J. Marshall.
View the IndictmentAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney Secures 87 Month Prison Sentence for Violent Attack on Family HomeRead the Press Release
ALBUQUERQUE – A Fruitland man was sentenced to 87 months in federal prison for firing 18 rounds at a family home occupied by eight people, including five young children.
There is no parole in the federal system.
According to court records, on April 28, 2022, Nathaniel Begay, 31, an enrolled member of the Navajo Nation, drove to a residence within the exterior boundaries of the Navajo Nation after becoming angry while swimming at Morgan Lake. Armed with two semi-automatic handguns, Begay fired multiple rounds at the home, which contained eight family members including five young children.
After briefly leaving, Begay returned and fired a second volley of shots at family members as they attempted to take cover. No one was injured.
Begay was arrested later that night following a domestic dispute with his wife. A knife and 9mm bullet were found on his person at the time of arrest.
Upon his release from prison, Begay will be subject to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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U.S. Attorney Secures 78-Month Sentence for Armed Felon in Immigrant Smuggling SchemeRead the Press Release
ALBUQUERQUE – A Tularosa man was sentenced to 78 months in federal prison for illegally possessing a firearm while engaged in a scheme to transport undocumented immigrants.
There is no parole in the federal system.
According to court documents, on January 18, 2023, a U.S. Border Patrol Agent observed suspicious driving behavior from a vehicle traveling northbound on Highway 185 near Las Cruces, New Mexico. The vehicle was moving slower than the posted speed limit and drifting across lanes. After making evasive maneuvers, the vehicle eventually stopped near an abandoned residence outside Las Cruces.
The agent made contact with the driver, identified as Castulo Amaya, 39, and explained that he had stopped to conduct a welfare check. During the interaction, Amaya exhibited increasingly erratic behavior, yelling at the vehicle occupants to record the encounter and claiming harassment.
When questioned, Amaya claimed that the vehicle's occupants were his children and relatives. However, upon inspection, the agent determined that six individuals in the rear seat were aliens illegally present in the United States. All provided rehearsed responses claiming they were from Las Cruces. The front seat passenger was identified as Vanessa Rodriguez-Solorio, a U.S. citizen. Rodriguez-Solorio admitted to being hired by Amaya to transport people for money and pleaded guilty to conspiracy to transport illegal aliens.
During a search incident to arrest, a loaded semi-automatic pistol was found concealed under Amaya's sweatshirt. As a previously convicted felon, Amaya knew that he was prohibited from owning firearms or ammunition.
Upon his release from prison, Amaya will be subject to 3 years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Anthony “Scott” Good, Chief Patrol Agent of the U.S. Border Patrol El Paso Sector, made the announcement today.
The U.S. Border Patrol investigated this case. Assistant United States Attorney Ry Ellison is prosecuting the case.
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Two indicted for buying stolen goods and selling them online via Amazon or eBay for more than $3 millionRead the Press Release
Seattle – Two western Washington men, related by marriage, were indicted by a federal grand jury this week for 11 criminal counts related to their conspiracy to traffic in stolen goods, announced U.S. Attorney Tessa M. Gorman. Vitaliy F. Bobak, 52, of Federal Way, Washington and Andrey A. Balun, 57 of Bellevue, Washington and Las Vegas, jointly owned MBA Trading LLC which did business at a Burien, Washington storefront operating as “We Buy Gold, Silver, and Electronics.” An extensive law enforcement investigation alleges the storefront knowingly purchased goods stolen from area retailers which the pair then sold on Amazon or eBay for millions of dollars in profit. The two are scheduled for arraignment on August 1, 2024.
“The purchase and trafficking of these stolen goods fuels the organized retail theft that has so damaged our local retailers,” said U.S. Attorney Gorman. “If the “boosters,” as they are called, had no market for these stolen goods, they would stop their rampant theft from our retailers. We are committed to using our federal resources to put a dent in this illegal trafficking.”
“These aren’t just random shoplifters or boosters. These are thefts that are being coordinated as part of a sophisticated network that targets legitimate businesses, confusing consumers and creating a ripple effect that makes it more difficult for retailers to operate,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Through our many partnerships across law enforcement and the private sector, HSI will use every resource at our disposal to protect businesses while ensuring justice is served.”
According to the detailed indictment, between January 2018 and December 2023, the storefront the men operated purchased goods that were clearly stolen items. In many instances the goods still had anti-theft devices attached, and/or stickers saying for sale only at a particular retailer. The men bought the goods far below the retail price and then posted them for sale on two websites they operated on Amazon or eBay. The Amazon store was called “Medikus” and the eBay store was called “abcstore555.” The indictment traces the money from the online stores to the men’s bank accounts. The funds were then used by the men to operate the scheme by paying cash to the “boosters” (people who stole the goods) or payroll to employees who were involved in posting and shipping the goods for sale. The men also used the cash for their personal expenses such as paying $67,000 in cash for a new Lexus or making a large downpayment for a home in Las Vegas.
The scale of the sales was huge and both national and international. An analysis of the sales of the two online stores reveals that between January 1, 2022 and November 28, 2023, there were over 150,000 sale transactions through the abcstore555 eBay and Medikus Amazon stores, with a combined sales total of over $4.5 million. When search warrants were served and merchandise seized on December 19, 2023, the conspirators possessed more than 74,000 items of stolen merchandise valued at approximately $2.4 million.
The men are charged with conspiracy to transport stolen property in interstate commerce; interstate transportation of stolen property; conspiracy to commit money laundering; three counts of concealment money laundering; and five counts of money laundering.
Conspiracy to transport stolen property is punishable by up to five years in prison. Interstate transportation of stolen property is punishable by up to ten years in prison. Conspiracy to commit money laundering is punishable by up to 20 years in prison. The various money laundering counts are punishable by either up to ten years or 20 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Homeland Security Investigations (HSI), with significant assistance from the Renton Police Department, Seattle Police Department, and the IRS, and aided by investigators from numerous retailers. The case is being prosecuted by Assistant United States Attorney Sean Waite and Asset Forfeiture Assistant United States Attorney Krista Bush.
bobak_indictment.pdfThree Clermont Labs Agree to Pay $2.45 Million to Settle False Claims Act Liability for Manipulating Diagnosis CodesRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces today that Vista Clinical Diagnostics, LLC; Access Dermpath, Inc.; and Advanced Clinical Laboratories, Inc. have agreed to pay the United States, the State of Florida, the State of North Carolina, and the Commonwealth of Virginia $2,450,000 to resolve allegations that they violated the False Claims Act by submitting claims to Medicare and Medicaid that contained manipulated diagnosis codes.
According to the settlement agreement, Vista Clinical Diagnostics, along with Access Dermpath and Advanced Clinical Laboratories, billed Medicare and Medicaid for clinical laboratory services using diagnosis codes that were generated by a macro and inserted into beneficiaries’ reimbursement submissions. This allegedly occurred during the period from January 1, 2017, through December 31, 2021. According to the allegations, these diagnosis codes were generated by the Defendants and not provided by the beneficiaries’ physicians.
“My office is committed to investigating and federally prosecuting providers who submit false claims and attempt to cheat the system,” said U.S. Attorney Roger Handberg. “This case exemplifies our dedication to protecting our nation’s taxpayers from fraud.”
“Health care providers who receive Medicaid funds must be responsible stewards of taxpayers’ money,” said North Carolina Attorney General Josh Stein. “When they defraud North Carolinians, we will hold them accountable.”
“Medical providers who participate in federal health care programs must follow the law when billing federally funded health care programs such as Medicare and Medicaid,” said Special Agent in Charge Stephen Mahmood of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement illustrates HHS-OIG’s commitment to protecting the integrity of these taxpayer-funded programs and the people they serve. Working closely with the United States Attorney’s Office and our other law enforcement partners, we will continue to thoroughly investigate such schemes.”
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by Relator Balbina Castillo, a former employee of Vista Clinical Diagnostics, who sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting private citizens to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. The Relator will receive over $440,000.00 of the proceeds from the settlement with the Defendants.
The settlement agreement was subject to approval the by United States Bankruptcy Court for the Middle District of Florida. Vista Clinical Diagnostics filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code on October 2, 2023. That case is captioned In re: Vista Clinical Diagnostics, LLC, Case No. 6:23-bk-04109. The Bankruptcy Court approved the Settlement Agreement and confirmed Vista Clinical Diagnostic’s bankruptcy plan on July 9, 2024.
Contemporaneous with the settlement, Vista Clinical Diagnostics, Access Dermpath, and Advanced Clinical Laboratories have entered into a five-year Corporate Integrity Agreement with HHS-OIG, which requires the labs, among other obligations, to establish and maintain a compliance program meeting certain requirements and to submit to an Independent Review Organization’s review of the labs’ Medicare claims to determine whether such claims were medically necessary, appropriately documented, and correctly coded.
This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, Florida Office of the Attorney General Medicaid Fraud Control Unit (“MFCU”), North Carolina Office of the Attorney General MFCU, Virginia Office of the Attorney General MFCU, and the HHS Office of Inspector General. Assistant United States Attorneys Jeremy R. Bloor and Christopher Emden, Florida MFCU’s Senior Assistant Attorney General Matthew Vitale, North Carolina Special Deputy Attorney General Matthew Petracca, and Virginia Senior Assistant Attorney General Adele M. Neiburg led the investigation.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The False Claims Act case is captioned United States ex rel. Castillo v. Vista Clinical Diagnostics, LLC, et al., Case No. 6:20-cv-617-ORL-WWB. The settlement resolves the United States, the State of Florida, the State of North Carolina, and the Commonwealth of Virginia’s claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Texas Woman Sentenced to 5 Years for Fraud SchemeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Sarah Doherty, 35, Stephenville, Texas, was sentenced yesterday by U.S. District Judge William M. Conley to 5 years in federal prison for wire fraud and tax evasion. Doherty pleaded guilty to these charges on April 9, 2024. As part of her sentence, Doherty was ordered to pay $1,025,064.74 in restitution to Victim-1.
Between 2016 and 2020, Doherty executed a scheme to defraud Victim-1, who owned a small business in central Wisconsin. Doherty became friends with Victim-1 and gained access to his personal finances. She then used this access to steal money from Victim-1 and used the stolen money to pay her personal expenses, including a down payment on a property in Colorado and a seven-horse trailer.
Doherty also created fictitious identities and controlled those identities to defraud and manipulate Victim-1 into sending her money that she spent personally. For example, Doherty created “Cindy Lou,” a matchmaker who Victim-1 paid to set him up on dates with women. Cindy Lou set up Victim-1 with numerous fictitious women who would communicate with Victim-1 by email. In many instances, the fictitious women, who were in fact Doherty, would then request financial help from Victim-1 to assist with various fictitious tragedies. The money Victim-1 sent to these fictitious women was received and spent by Doherty. Doherty also created a fictitious travel agent and investment advisor and used these alter egos to obtain more money from Victim-1.
During 2019, Doherty also had direct access to a credit card for Victim-1’s business and used funds from the credit card to pay her personal expenses. As part of her plea agreement, Doherty admitted that she failed to report the income she received from the credit card in 2019 on her 2020 federal tax return.
While Doherty was on release and awaiting trial in the case, she continued to engage in fraudulent conduct while under the supervision of the United States Pretrial Services. During a hearing on March 19, 2024, Magistrate Judge Stephen Crocker ordered Doherty into custody as a result of her multiple violations of pretrial release.
At the sentencing hearing, Judge Conley stated that Doherty’s fraud scheme was a “web of misrepresentations” that had a devasting impact on Victim-1 and his business. Judge Conley stated that Doherty had consistently demonstrated a “pathological affinity for fraudulent conduct.” Judge Conley also noted that he had never seen “a more dismal performance by a white-collar defendant on pretrial supervision.”
The charges against Doherty were a result of an investigation conducted by IRS Criminal Investigation and the Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Tampa Man Indicted for Sex Trafficking of A MinorRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Dontae Burton (39, Tampa) with sex trafficking of a minor. If convicted, Burton faces a maximum penalty of life in federal prison.
According to court documents, Burton coordinated commercial sex acts on behalf of a minor victim after posting photographs of her on adult escort websites. Burton told the minor victim how the dates worked and the portion of money that he would receive from the dates. Burton transported the minor victim for the dates and received proceeds from her commercial sexual activity.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Hillsborough County Sheriff’s Office and Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Courtney Derry.
If you suspect human trafficking, call the HSI Tip Line at 877-4-HSI-TIP. Callers may remain anonymous. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Tahlequah Resident Sentenced to Life in Prison for First Degree MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Isaac Newman Sockey, age 39, of Tahlequah, Oklahoma, was sentenced to life in prison for first degree murder stemming from a fatal knife attack on September 8, 2023, at a Tahlequah residence.
Sockey was found guilty of one count of First Degree Murder in Indian Country on December 12, 2023, following a jury trial in the United States District Court for the Eastern District of Oklahoma. Sentencing was held July 10, 2024.
According to evidence and testimony presented at trial, on the day of the murder, Sockey retrieved a butterfly knife from his bedroom, placed the knife to the victim’s throat, and threatened the victim in response to a verbal insult. The victim pushed the knife away and attempted to disarm Sockey. Sockey then stabbed the victim more than twenty times, including in the neck, head, and torso. Despite life-saving measures, the victim died from injuries sustained in the attack.
The crime occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The charge arose from investigations by the Tahlequah Police Department and the Federal Bureau of Investigation.
“Senseless tragedies such as this reverberate through our communities, and those who perpetrate these acts must be brought to justice,” said Acting Special Agent in Charge Jason Kaplan of the FBI Oklahoma City Field Office. “The FBI and our law enforcement partners remain committed to preventing violent crime in Indian country by removing offenders like Mr. Sockey from our streets.”
“I want to commend the Tahlequah Police Department and the Federal Bureau of Investigation who conducted the investigation, and the Assistant U.S. Attorneys who indicted and prosecuted this case,” said United States Attorney Christopher J. Wilson. “Because of their dedication and commitment, Sockey will pay for his vicious and senseless act of violence.”
The Honorable Ronald A. White, Chief Judge for the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Sockey will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Kevin Gross and Gregory Dean Burris represented the United States.
Stilwell Resident Sentenced to Two Years for ArsonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Arron Lee Gonzalis, age 28, of Stilwell, Oklahoma, was sentenced to 24 months in prison for one count of Arson in Indian Country.
The charge arose from investigations by the Stilwell Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On October 31, 2023, Gonzalis pleaded guilty. According to investigators, Gonzalis was captured on video intentionally setting fire to a cardboard box next to a commercial building in Stilwell, Oklahoma, on July 20, 2023. The fire caused minor damage to the building and the building’s gas meter. The crime occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge for the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Gonzalis will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kevin Gross represented the United States.
South Portland Man Sentenced to 2+ Years for Possessing a Firearm After Domestic Violence ConvictionRead the Press Release
PORTLAND, Maine: A South Portland man was sentenced today in U.S. District Court in Portland for possessing a firearm after being convicted of a misdemeanor crime of domestic violence.
Chief U.S. District Judge John D. Levy sentenced Willie Richard Minor, 63, to the two years, eight months, and ten days he had served before an earlier conviction was vacated.
According to court records and evidence presented at trial, in June 2010, Minor was convicted in Maine Superior Court of domestic violence. The U.S. Attorney’s Office does not identify victims of crime and is limiting identifying information to protect the victim’s privacy. As a result of that conviction, Minor was prohibited by federal law from possessing firearms and ammunition. In November 2016, Minor admitted to having a gun in an interview with the Auburn Police Department. The police recovered the gun from his apartment in Auburn.
Minor was originally convicted and sentenced on the federal charge after a trial in December 2017. While the case was pending on appeal, the Supreme Court of the United States issued a decision, Rehaif v. United States, that changed what the government is required to prove in certain federal firearm possession cases. As a result, the parties agreed to have the original conviction vacated, and the case was remanded for a new trial. Minor was again convicted after a trial in February 2020, and in September 2020, he was sentenced to time served and three years of supervised release.
In March 2023, the U.S. Court of Appeals for the First Circuit found that the jury had been incorrectly instructed in Minor’s second trial. The Court of Appeals clarified what the government is required to prove under the Supreme Court’s Rehaif decision, leading to the third trial. Minor was again found guilty by a federal jury following a two-day trial in April 2024.
“This office will continue to prioritize prosecutions against those convicted of domestic violence who illegally possess firearms,” said U.S. Attorney Darcie N. McElwee. “Anyone convicted of abuse – and those they choose to victimize – should understand that illegal gun possession by domestic abusers will not be tolerated.”
The Auburn Police Department; Maine State Police Crime Laboratory; Bureau of Alcohol, Tobacco, Firearms and Explosives; and FBI investigated the case.
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South Lake Tahoe Man Convicted of Impersonating Federal OfficersRead the Press Release
SACRAMENTO, Calif. — After a three-day trial, a federal jury found Anton Andreyevich Iagounov, 38, of South Lake Tahoe, guilty of four counts of impersonating a federal officer, U.S. Attorney Phillip A. Talbert announced.
Iagounov pretended to be a federal law enforcement agent by creating and sending counterfeit investigative documents, which he signed in the name of a fictional federal agent, seeking highly protected information from the Department of Defense.
“The defendant impersonated federal officers and tried multiple times to obtain protected information using fake court documents,” said U.S. Attorney Talbert. “Many federal agencies like NASA have devoted law enforcement officers, and we will continue to partner with those agencies to ensure their officers are not illegally impersonated.”
“Usurping public trust, Mr. Iagounov pretended to be an agent of the National Aeronautics and Space Administration’s (NASA) Office of Inspector General creating fake investigative documents in an attempt to obtain sensitive government information,” said Michael Graham, NASA-OIG Acting Assistant Inspector General for Investigations. “This verdict demonstrates the commitment of NASA-OIG, the USAO, and our law enforcement partners to aggressively investigate, prosecute, and hold accountable those who undermine justice.”
On July 5, 2022, Iagounov sent a search warrant he had created to the U.S. Capitol Police, falsely claiming it was signed by a Special Agent of NASA Office of Inspector General (NASA-OIG) and appearing to be authorized by a U.S. District Court judge for the District of Columbia. The Capitol Police investigated the document, determined it was fake, and referred it to NASA-OIG for further investigation.
On July 11, 2022, Iagounov again pretended to be the same fictional NASA-OIG agent, and sent the warrant to the U.S. District Court for the Central District of California. This time, he sent it without a judge’s signature, indicating it was for an “emergency filing” and required a judge’s signature. He sent it from an email address designed to look like it was from a United States government agency, but which the defendant owned and had named to look like a government agency’s internet domain.
On July 18, 2022, Iagounov again sent the fake search warrant, purporting to be signed by the same fictitious NASA-OIG agent. He sent it to the U.S. Bankruptcy Court for the Middle District of Georgia, again indicating that it was for an emergency filing and needed a judge’s signature immediately.
Finally, on July 24, 2022, Iagounov faxed a letter, under the name of a real NASA-OIG supervising agent, to the U.S. District Court for the Northern District of Florida. In that letter, he claimed to be following up on the warrant, stating that an “exigent circumstance” required a judge’s signature immediately. The faxed letter included an anonymous email address for the agent that actually belonged to Iagounov. Several days earlier, on July 15, Iagounov had sent his warrant to the U.S. Bankruptcy Court for the Northern District of Florida, but had received no response.
In each case, given the apparently sensitive nature of the materials the defendant’s warrant sought, the receiving personnel for the Courts referred the matter to NASA-OIG for review and investigation.
This case is the product of an investigation by the Federal Bureau of Investigation and the NASA Office of Inspector General, with assistance by the South Lake Tahoe Police Department and the Carson City Sheriff’s Office. Assistant U.S. Attorney James Conolly and Audrey Hemesath are prosecuting the case.
Iagounov is scheduled to be sentenced by U.S. District Judge Daniel J. Calabretta on Oct. 17, 2024. Iagounov faces a maximum statutory penalty of three years in prison and a $250,000 fine, per count of conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Slync Founder Sentenced to 20 Years in Federal Prison for FraudRead the Press Release
Slync founder Christopher Kirchner was sentenced today to 20 years in federal prison for defrauding investors of tens of millions of dollars, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Mr. Kirchner, 37, who founded supply chain management software company Slync in 2017 and held the position of CEO until his termination by the Board of Directors in 2022, was initially charged in February 2023. Just 11 months later, a jury convicted him of four counts of wire fraud and seven counts of engaging in monetary transactions in property derived from specified unlawful activity. He was sentenced Thursday to 240 months in federal prison by U.S. District Judge Mark Pittman, who also ordered him to pay more than $65 million in restitution.
“Even as his company was circling the drain, Chris Kirchner was spending millions of his investors’ money on himself. Apparently, projecting personal prosperity was more important to him than making payroll,” said U.S. Attorney Leigha Simonton. “His duplicity earned him 20 years in prison. We are proud to hold him accountable for his crimes and are committed to pursuing all businesspeople engaged in criminal conduct.”
"Mr. Kirchner fraudulently raised money from investors and embezzled those funds from the company he led to fund a lavish lifestyle. Today’s sentence underscores the gravity of those crimes. He acted without any regard for how it would affect the company, employees, or investors," said FBI Dallas Special Agent in Charge Chad Yarbrough. “The FBI is committed to working with our partners to investigate any allegation of financial misconduct. We will hold individuals accountable who use their positions of trust for personal profit.”
According to evidence presented at the sentencing hearing, between 2020 and 2022, Mr. Kirchner fraudulently raised more than $71 million from numerous investors based on false representations and promises about Slync’s business operations, false representations about Slync’s financials, false representations about Slync’s customers, and fantastical revenue projections. As the jury’s verdict indicated, Mr. Kirchner then misappropriated over $25 million of the investor funds in various ways.
Between April 2020 and March 2022, Mr. Kirchner initiated nearly 100 wire transfers moving money from Slync’s Silicon Valley Bank account into the company’s account at JPMorgan Chase Bank – an account only he had access to. He then wired much of the money from the Chase account to his personal bank accounts. In addition, Mr. Kirchner wired $20 million directly from Slync’s Silicon Valley Bank account into his personal checking account. Mr. Kirchner then used the misappropriated funds to buy, among other things, a $16 million private jet, a suite at AT&T Stadium, exotic vehicles including a Rolls Royce and Mercedes Benz G-Class, and jewelry including a $500,000 Richard Mille watch, several Rolex watches, and a Cartier necklace.
When Slync, drained of funds, struggled to make payroll in the spring of 2022, Mr. Kirchner attempted to replace some of the money he had misappropriated by convincing at least four investors to wire approximately $850,000 to Slync as part of a purported Series C investment round. Slync’s Board of Directors never authorized a Series C investment round.
In the meantime, Mr. Kirchner offered various explanations for Slync’s payroll issues – all of which were untrue. Mr. Kirchner also fired a Slync employee after the employee reported to the Board of Directors that Mr. Kirchner may have falsely exaggerated Slync’s financial performance to investors.
Immediately following his suspension by the Board of Directors in late July 2022, Mr. Kirchner removed certain IT administrator privileges from key Slync employees, preventing the employees from accessing Slync’s computer systems. He then attempted to delete approximately 18 gigabytes of Slync data, including emails.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Joshua D. Detzky, Nashonme Johnson, and Jay Weimer prosecuted the case. Assistant U.S. Attorney Dimitri Rocha handled the forfeiture; Assistant U.S. Attorney Katie Carr Jacobs worked on restitution. Assistant U.S. Attorney Brian McKay served as appellate liaison.
Sioux City Man to Federal Prison for 24 years for Meth Conspiracy ConvictionsRead the Press Release
Johnnie A. Cannon, 38, from Sioux City, Iowa, formerly from Osceola, Arkansas, was sentenced on July 9, 2024, in federal court in Sioux City.
On January 18, 2024, after a 3-day jury trial, Cannon was convicted, by jury verdict, of one count of conspiracy to distribute methamphetamine and three counts of distributing and aiding and abetting another in the distribution of methamphetamine.
The evidence in this case showed that Cannon conspired with others to distribute at least 19 pounds of methamphetamine from January 2021 through March 14, 2023. Evidence further showed that on at least three occasions in February and March 2023, during three control drug purchase operations, Cannon was observed to provide ¼, ½ and ½ pounds of methamphetamine to a co-conspirator, who then in turn, distributed the methamphetamine to an individual cooperating with law enforcement. On March 14, 2023, during a traffic stop immediately following the last drug purchase operation, Cannon was found in possession of $3000 in pre-serialized, buy money used by law enforcement in the drug purchase. In 2007 and 2008, respectively, Cannon was convicted of delivery of crack cocaine in Arkansas. In 2010, in the Northern District of Iowa, he was federally convicted of conspiracy to distribute cocaine and possession with intent to distribute cocaine. Cannon was released from federal prison in 2019 and was on federal supervised release at the time he committed his new offenses.
Sentencing was held before United States District Court Judge Leonard T. Strand. Cannon was sentenced to 299 months’ imprisonment – 262 months on his new offense, plus 37 months’ consecutive thereto for revocation of his federal supervised release from his 2010 offense. Cannon must serve a ten-year term of supervised release following imprisonment. There is no parole in the federal system. Cannon remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4023. Follow us on Twitter @USAO_NDIA.
Shiprock Man Pleads Guilty to Assault and Federal Firearms OffenseRead the Press Release
ALBUQUERQUE – A Shiprock man pleaded guilty in federal court to assault and firearms charges after shooting a victim in the stomach during a late-night confrontation on the Navajo Nation reservation.
According to publicly available court documents, on May 29, 2023, Tyrell Willie, 38, an enrolled member of the Navajo Nation, drove to John Doe's residence within the Navajo Nation reservation. When John Doe exited his home, Willie turned off his headlights and fired two shots from the driver's seat, with one round striking Doe in the stomach. Willie then fled the scene.
Shortly after, Navajo Nation Police Officers conducted a high-risk stop on Willie's vehicle. Willie exited the truck holding a loaded shotgun but dropped it after being commanded to do so by officers. He was then taken into custody.
The victim suffered serious bodily injury requiring immediate life-saving surgery.
The Court ordered that Willie remain in custody pending sentencing, which has not been scheduled.
At sentencing, Willie faces between 7 and 12 years in prison. Upon his release from prison, Willie will be subject to up to five 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.
FBI Farmington Agency investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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Shelbyville, Illinois, Man Sentenced to 210 Months in Federal Prison for Production, Receipt, and Possession of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A Shelbyville, Illinois, man, Brett J. Simpson, 30, was sentenced on July 10, 2024, to 210 months in the Bureau of Prisons, to be followed by seven years of supervised release. Simpson was also ordered to pay $15,500 in restitution to victims. He is now required to register as a sex offender under the Sex Offender Registration and Notification Act.
Simpson previously pleaded guilty to persuading a minor victim to engage in sexually explicit conduct for the purpose of producing child pornography, receiving child pornography, and possessing child pornography between December 2021 and May 2022.
At the sentencing hearing in front of U.S. District Judge Collen R. Lawless, the government established that Simpson portrayed himself as a minor on social media platforms to entice children to produce and send him elicit images and videos. Simpson persuaded one child to produce sexual images in exchange for a gift card and another child sent Simpson, at his request, a video containing nude images of that child. The evidence also showed that Simpson possessed thousands of other images of child pornography, including 250 images depicting children under 12 years of age.
“This sentence once again affirms the commitment of the U. S. Attorney’s Office for the Central District of Illinois to the protection of children and the vigorous prosecution of those who prey upon children,” said Assistant U.S. Attorney Sierra Senor-Moore.
“This substantial sentence effectively ends Simpson’s ability to sexually exploit children and underscores the FBI’s commitment to keep our children safe by going after those who seek to take advantage of a child’s innocence,” said FBI Acting Special Agent in Charge Jermaine Deans.
“The Shelbyville Police Department would like to thank the Springfield Office of the FBI for assisting our department with the arrest of Brett Simpson back in May of 2022,” said Shelbyville Police Chief Chad Brachbill. “In an effort to keep our community safe from predators, the FBI has been paramount in assisting us from keeping dangerous people from exploiting children in our community over the internet. We look forward to partnering with them in the future to continue keeping our youth safe from criminal activity of any kind, especially internet sex crimes.”
Simpson was indicted in June 2022 and has remained in the custody of the U.S. Marshals since his arrest in May 2022. The statutory penalties for production of child pornography are no less than 15 years and up to a maximum of 30 years’ imprisonment; for receipt of child pornography no less than five years and up to 20 years’ imprisonment; and for possession of child pornography a maximum of 20 years’ imprisonment. The maximum possible fine was $250,000 per count.
The Federal Bureau of Investigation, Springfield Field Office, with assistance from the Shelbyville Police Department and Shelby County Sheriff’s Office, investigated the case. Assistant U.S. Attorney Senor-Moore represented the government in the prosecution.
The case against Simpson was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Seventeen Plead Guilty in Drug Trafficking ConspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Seventeen people have pled guilty to drug distribution charges following an investigation into a Baltimore-based trafficking organization.
United States Attorney William Ihlenfeld announced that since an indictment was returned in January against Gary Brown, Jr. and eighty-one others, many of those charged in the conspiracy have admitted to their role in an operation that caused substantial amounts of fentanyl, methamphetamine, and cocaine to be distributed in Berkeley and Jefferson Counties.
“Thanks to the excellent work of federal prosecutors and local, state, and federal investigators, numerous defendants in this case have accepted responsibility for their crimes and will be held accountable for endangering our communities through the distribution of illicit drugs,” said U.S. Attorney Ihlenfeld. “There’s more work to be done, but significant progress has been made.”
Those who have entered pleas of guilty thus far are as follows:
- Zachary Thomas Doman, age 24, of Martinsburg;
- Marissa Huntoon-Gregory, 34, of Summit Point;
- Connor James McLaughlin, 31, of Ranson;
- Alyssa Rose McIntyre, 28, of Harpers Ferry;
- Daniel Lee Corbin, Jr., 35, of Martinsburg;
- Eric Lyn Custer, 38, of Charles Town;
- John Wesley Yates, 36, of Bunker Hill;
- Haile Madalynn Speaks, 21, of Charles Town;
- Kimberly Ann Barrett, 44, of Harpers Ferry;
- Brenda Henry, 57, of Charles Town;
- John Ernest LeCluse, 39, of Harpers Ferry;
- Michael Lee Engle, 46, of Harpers Ferry;
- Joshua Paul Barrett, 44, of Harpers Ferry;
- Gregory O’Brien Long, Jr. 26, of Charles Town;
- Jeffrey Scott Main, 53, of Harpers Ferry;
- Eva Louise Ashbaugh, 25, of Harpers Ferry; and
- Kayleigh Nicole Beavers, 38, of Winchester, Virginia.
Assistant U.S. Attorneys Lara Omps-Botteicher and Kyle Kane are prosecuting the case on behalf of the government.
U.S. Magistrate Judge Robert Trumble has presided over the plea hearings.
The trial for the remaining defendants is scheduled for February 4, 2025, before Judge Gina M. Groh.
Investigative agencies include the Federal Bureau of Investigation (Pittsburgh Field Division and Baltimore Field Division); the Drug Enforcement Administration; the U.S. Department of Homeland Security Investigations; the United States Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshals Service; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the West Virginia Air National Guard; the Jefferson County Sheriff's Office; the Berkeley County Sheriff's Office; Ranson Police Department; Martinsburg Police Department; Charles Town Police Department; the Berkeley County Prosecuting Attorney’s Office; Stafford County Sheriff's Office (Virginia); Frederick County Sheriff's Office (Maryland); Frederick County Sheriff's Office (Virginia); Winchester Police Department; and the Clarke County Sheriff's Office (Virginia).
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.