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1 July 2024
Massachusetts Man Pleads Guilty to Stealing Funds Intended to Help At-Risk VeteransRead the Press Release
CONCORD – A Massachusetts man pleaded guilty today in federal court to defrauding a nonprofit health care provider to obtain funds designated for reducing suicide rates among veterans, U.S. Attorney Jane E. Young announces.
David Duren, a/k/a Dawud Hakiem Duren, 48, pleaded guilty to wire fraud. U.S. District Court Judge Joseph N. Laplante scheduled sentencing for October 10, 2024.
Duren was a program manager for a nonprofit health care provider in Nashua, New Hampshire. He was in charge of overseeing a program funded by a $750,000 Staff Sergeant Fox Suicide Prevention Grant. The grant was awarded by the United States Department of Veterans Affairs to provide treatment and services to veterans at risk of suicide. At Duren’s recommendation, the health care provider hired a company called “E3 Foundation” to provide services funded by the Staff Sergeant Fox grant. E3 Foundation was in turn purportedly led by a “Dr. Michael Rapp.” However, unbeknownst to the health care provider, Duren controlled E3 Foundation and was pretending to be “Dr. Michael Rapp” on emails and calls.
Duren was able to fraudulently obtain almost $50,000 in Staff Sergeant Fox program funds and tried to obtain an additional $25,000 before being discovered. He used a website called “Invoice Generator” to create fake invoices. Duren and E3 Foundation also did not provide the services and products that he billed for.
The charge of wire fraud provides for a sentence of up to 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Department of Veterans Affairs’ Office of the Inspector General and Federal Bureau of Investigation led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
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Major Drug Dealer Found Guilty of Multiple Drug and Weapons OffensesRead the Press Release
BAY CITY – Ricardo Delgado, II, the leader of a large-scale drug conspiracy operating in the Saginaw-Bay area, was convicted by a federal jury of multiple drug and weapons offenses, including drug conspiracy and possession with to intent to distribute kilogram quantities of cocaine and fentanyl, possession of multiple machineguns, and for being a felon in possession of a firearm, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan.
Following a week-long trial, the jury convicted Delgado, 51, of conspiracy to possess with intent to distribute and to distribute at least five kilograms of cocaine; possession with intent to distribute at least five kilograms of cocaine; possession with intent to distribute at least 400 grams of fentanyl; possession of a machinegun in furtherance of a drug trafficking crime; possession of a firearm in furtherance of a drug trafficking crime; possession of a machinegun; felon in possession of a firearm; possession of an unregistered silencer; and, use of communication facility to commit a drug offense.
Evidence at trial established that Delgado was involved in a wide-ranging drug conspiracy that involved the importation of numerous kilograms of cocaine and fentanyl from Mexico for distribution in the Saginaw-Bay area. During the course of the investigation, FBI agents learned from a court-authorized wiretap that Delgado was seeking retaliation for the theft of his drugs from a subordinate and that he ordered that subordinate to exact revenge. However, this plan was thwarted by authorities. In addition, following Delgado’s arrest, law enforcement officers seized 13 kilograms of cocaine, 2 kilograms of fentanyl, 12 firearms, including two machineguns, two silencers, and over $200,000 in cash from Delgado’s residence.
“The collaboration between federal and local law enforcement partners demonstrated in this case speaks to our overall commitment to rid our community of dangerous drugs and violent offenders,” stated United States Attorney Ison.
“Mr. Delgado’s conviction today emphasizes the FBI’s unwavering commitment to pursuing dangerous drug traffickers to stop further harm to our communities,” stated Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The death toll associated with illegal drugs and the fentanyl epidemic continues to rise. We are resolute in our determination to collaborate with our law enforcement partners to address this critical issue and collectively ensure those who contribute to the drug poisoning crisis while trafficking illegal firearms in our communities are brought to justice.”
Delgado faces a mandatory minimum sentence of 55 years and a maximum of life in prison when he is sentenced by United States District Judge Thomas L. Ludginton.
This investigation was conducted by special agents of the FBI Detroit Division (Bay City Office), the Bay Area Narcotics Enforcement Team (BAYANET), the Bureau of Alcohol, Tobacco, Firearms & Explosive (ATF), and law enforcement officials from Michigan State Police, Midland Police Department, Saginaw Police Department, Saginaw Township Police Department, Bridgeport Police Department, and the Strike Team Investigative Narcotics Group (STING).
The case was prosecuted by Assistant U.S. Attorneys Tim Turkelson and William Orr.
Madera County Man Sentenced to 10 Years in Prison for Supplying Fentanyl that Caused Death to a Person Under 21 Years of AgeRead the Press Release
FRESNO, Calif. — Yovany Ramirez, 29, of Madera, was sentenced today by U.S. District Judge Jennifer L. Thurston to 10 years in prison for distribution of fentanyl to a person under age 21, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 13, 2021, Ramirez distributed the fentanyl pills that caused the death of D.D., a 19-year-old Madera man. D.D. suffered a fatal overdose just hours later. Upon further investigation, law enforcement recovered additional evidence that Ramirez was dealing drugs and firearms.
This case was the product of an investigation by Homeland Security Investigations and the Madera Police Department. Assistant U.S. Attorney Antonio J. Pataca prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Lincoln County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Jeffrey R. Lambert, 63, of Ranger, pleaded guilty today to possession with intent to distribute 5 grams or more of methamphetamine and a quantity of fentanyl.
According to court documents and statements made in court, on August 2, 2022, law enforcement officers executed a search warrant at Lambert’s residence and found approximately 186 grams of methamphetamine, approximately 57 grams of fentanyl and fentanyl analogues, several firearms, and $4,402. Lambert admitted that he possessed and intended to distribute the seized controlled substances.
Lambert further admitted to selling a total of approximately 70 grams of methamphetamine on four occasions between July 25, 2022 and August 1, 2022, each time to a confidential informant in the Ranger area of Lincoln County.
Lambert is scheduled to be sentenced on October 2, 2024, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the U.S. Route 119 Drug Task Force, which consists of members of the Mingo County Sheriff's Office, the Logan County Sheriff's Office, the Boone County Sheriff's Office, and the West Virginia State Police.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting 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. 2:24-cr-14.
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Lexington Man Sentenced for Armed Drug TraffickingRead the Press Release
FRANKFORT, Ky. – A Lexington, Ky., man, Chris Williams, 29, was sentenced on Monday, by U.S. District Judge Gregory Van Tatenhove, to 200 months, for possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute 10 grams or more of a fentanyl analogue, distribution of fentanyl, and two counts of possession of a firearm in furtherance of drug trafficking.
In August 2022, detectives with the Kentucky State Police received information that Chris Williams was distributing large quantities of fentanyl. During a month-long investigation, KSP purchased approximately 74 grams of fentanyl from Williams. In September 2022, detectives seized a loaded firearm, approximately 76 grams of fentanyl, and approximately 20 grams of pressed fentanyl analogue pills from Williams. Williams admitted he possessed the firearm in furtherance of his drug trafficking.
Then, in August 2023, detectives with the Lexington Police received information that Williams was again distributing narcotics. In September 2023, following a second investigation, a search warrant was executed at Williams’ residence. There, detectives located approximately 60 grams of fentanyl and two firearms. Williams again admitted he possessed the firearms in furtherance of drug trafficking.
Under federal law, Williams must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for four years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge of the DEA Louisville Field Division; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by DEA, KSP, and Lexington Police Department. Assistant U.S. Attorney Cynthia Rieker prosecuted the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Lackawanna County Man Sentenced to 151 Months of Imprisonment for Drug TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Emmanuel Batista, age 32, of Scranton, Pennsylvania, was sentenced on July 1, 2024, to 151 months in prison by U.S. District Court Judge Malachy E Mannion, for drug trafficking charges.
According to United States Attorney Gerard M. Karam, Batista owned and operated DMB Dumpster and Construction Company, located in Scranton, Pennsylvania. Between November 2022 and January 2023, Batista used this company as a front for his drug distribution. Law enforcement made multiple controlled purchases of fentanyl from a subordinate drug dealer working for Batista. Batista also made large amounts of methamphetamine available for purchase during this time. Batista used a vacant property that he was allegedly remodeling as a stash house for his drugs. He also would pay some of his employees in drugs. In a three-month period, Batista was responsible for distributing over 400 grams of fentanyl.
The case was investigated by Homeland Security Investigations, and the Pennsylvania Office of Attorney General, Bureau of Narcotics Investigations. Assistant U.S. Attorney Jenny P. Roberts and Senior Deputy Attorney General Michelle Hardik 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.
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KC Business Owner Pleads Guilty to Wiring Drug-Trafficking Profits to MexicoRead the Press Release
KANSAS CITY, Mo. – The owner of an Olathe, Kansas, business pleaded guilty in federal court today to her role in a money-laundering conspiracy to transfer the proceeds of heroin and methamphetamine trafficking to Mexico. A Kansas City, Mo., woman also pleaded guilty to her role in the drug-trafficking conspiracy.
Ana Lilia Leal-Martinez, 48, a citizen of Mexico residing in Overland Park, pleaded guilty before U.S. Chief District Judge Beth Phillips to participating in a conspiracy to commit money laundering from May 23, 2020, to Sept. 20, 2022.
Leal-Martinez is the owner of Imagen Leal in Olathe, Kan., which offers money transfer services. By pleading guilty today, Leal-Martinez admitted that she accepted drug proceeds from co-conspirators, including Jose Jesus Sanchez-Mendez, also known as “Michoacano,” 41, a Mexican national. Those drug proceeds were then sent by wire transfer to individuals in Michoacan, Mexico.
Between Jan. 1, 2022, and June 8, 2022, Leal-Martinez sent wires totaling $83,850 to Mexico from her business in furtherance of the money-laundering conspiracy. These transfers were structured and sent under assumed names in order to avoid suspicion and detection.
Leal-Martinez, one of 44 defendants indicted in this case, was identified in 2022 after Homeland Security Investigations initiated the investigation of a drug-trafficking organization that distributed more than 335 kilograms of methamphetamine, 22 kilograms of heroin, cocaine, and fentanyl, among other drugs, sourced from Mexico in the Kansas City area. Investigators identified numerous bulk cash smugglers and drug traffickers working for the drug-trafficking organization as part of the $4.7 million conspiracy.
Co-defendant Flor Gonzalez-Celestine, 54, of Kansas City, Mo., also pleaded guilty today to participating in a $4.7 million conspiracy to distribute methamphetamine and heroin from Feb. 28, 2020, to Sept. 20, 2022. Gonzalez-Celestine participated in four controlled drug buys that were monitored by law enforcement. She sold more than a kilogram of methamphetamine to a confidential informant and was observed in possession of approximately 2.2 additional kilograms of methamphetamine.
Sanchez-Mendez has pleaded guilty to his role in a continuing criminal enterprise, to his role in the drug-trafficking and money-laundering conspiracies, and to illegally reentering the United States. A sentencing hearing has not yet been scheduled.
Under federal statutes, Leal-Martinez is subject to a sentence of up to 20 years in federal prison without parole. Gonzalez-Celestine is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Megan A. Baker. It was investigated by Homeland Security Investigations, U.S. Customs and Border Protection, the Drug Enforcement Administration, the Jackson County Drug Task Force, IRS-Criminal Investigation, the Kansas Bureau of Investigation, the Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department, the Missouri State Highway Patrol, the Kansas Highway Patrol, the Independence, Mo., Police Department, the Minnesota Bureau of Criminal Apprehension, the Minnesota State Patrol, the Olmsted County, Minn., Sheriff’s Office, the Texas Department of Public Safety, the FBI, the Clay County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
Organized Crime and Drug Enforcement Task Force
This case 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.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Justin Gebo Sentenced to Federal Prison for Firearms OffensesRead the Press Release
CONCORD – A former Belmont man was sentenced today in federal court in connection with his possession of firearms as a prohibited person, U.S. Attorney Jane E. Young announces.
Justin Gebo, 29, was sentenced by U.S. District Court Judge Paul P. Barbadoro to 33 months in federal prison and three years of supervised release on two counts of being a prohibited person in possession of a firearm, including being in possession of a firearm while under indictment and being a felon in possession of a firearm.
“This case makes clear why felons cannot be trusted to possess firearms,” said U.S. Attorney Young. “The defendant’s unlawful receipt of the CZ Scorpion during a time he was under felony indictment was the beginning of that firearm’s path to the hands of a convicted felony where it was used to commit heinous crimes. The sentence imposed by the Court makes clear the significant consequences for those prohibited persons who possess guns.”
According to the charging documents, on or about January 1, 2023, Gebo was in receipt of a Ceska Zrojovka (“CZ”) model Scorpion EVO 3, S2, 9x19mm short-barreled rifle, with an attached armbrace, while he was under felony indictment for a crime punishable by imprisonment for a term exceeding one year. That firearm was later recovered during a homicide investigation on June 3, 2023, in Franklin, New Hampshire. In addition, on or about February 3, 2023, Gebo was in possession of a 17 Design and Manufacturing, model 17DM-15, multicaliber rifle, after he had been convicted of a crime punishable by imprisonment for a term exceeding one year.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives led the investigation. Valuable assistance was provided by the New Hampshire State Police and the Laconia Police Department. Assistant U.S. Attorney Geoffrey W.R. Ward is prosecuting 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.
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Justice Department Secures Settlement in Discrimination Lawsuit for Blocking Affordable Housing Development in LouisianaRead the Press Release
The Justice Department announced today that the Town of Franklinton (Franklinton), Louisiana, has agreed to pay $230,000 in damages and civil penalties to settle allegations that it violated the Fair Housing Act when it blocked a proposed affordable housing development for low-income tenants in a predominantly white part of Franklinton.
Under the agreement, Franklinton will also facilitate the development of new affordable housing to replace the units that it previously blocked, amend its zoning ordinance to increase the amount of land available for the development of multi-family housing and create a land donation program to support the development of affordable housing.
“Developing affordable housing in high opportunity neighborhoods can have a transformative impact on the livelihoods of low-income residents of all races,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Fair Housing Act prohibits cities and towns from blocking low-income housing development because they believe that Black people will make up a large share of the future residents. Officials must ensure that affordable housing opportunities are made available and that all families have access to them regardless of race. The Justice Department will continue to hold jurisdictions accountable when they abuse their zoning power to deny equal access to housing opportunity.”
“Access to affordable housing free from discrimination is a right bestowed upon all Americans,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Denying affordable housing development for low-income individuals delays full achievement of the American Dream. The successful resolution of this Fair Housing Act matter provides low-income residents with the resources needed to achieve generational success.”
The complaint, filed on June 27, alleges that Franklinton discriminated because of race and color when it refused to approve zoning for a 40-unit development called Quail Run that would have been financed through the federal Low Income Housing Tax Credit (LIHTC), a tax incentive that subsidizes the construction and rehabilitation of rental housing affordable to low-income tenants. Franklinton is highly segregated, and although approximately 48% of its population is Black, that population is concentrated in the town’s north side. Quail Run would have been built on the south side, in a neighborhood that is over 80% white. Over 80% of Black households in Franklinton qualify as low-income and Black residents would have been significantly more likely than white residents to qualify to live in Quail Run. The construction of Quail Run would have disproportionately provided much needed housing opportunities to Black families in the part of Franklinton where the residents are predominantly white.
As alleged in the complaint, Franklinton’s Zoning Commission unanimously recommended that Franklinton grant zoning approval for the development of Quail Run. However, the Mayor refused to consider the Zoning Commission’s recommendation and the town later denied Quail Run’s zoning application without the City Council ever holding a vote on the matter. As a result of Franklinton’s action, the developers had to return the tax credits and were not able to develop housing and the land remained vacant. The developers filed a complaint with the Department of Housing and Urban Development (HUD), which later referred the matter to the Justice Department.
“Low-income residents should have equal access to affordable housing in well resourced, low poverty neighborhoods,” said Principal Deputy Assistant Secretary Diane Shelley of HUD’s Office for Fair Housing and Equal Opportunity. “Jurisdictions that deny the development of affordable housing in neighborhoods for fear that future residents will be a certain race perpetuate segregation and violate the Fair Housing Act, which remains as important today as it was in 1968. HUD is proud to work with the Justice Department to root out illegal discrimination and uphold civil rights law.”
Under the settlement, which was approved on Friday June 28 by the U.S. District Court for the Eastern District of Louisiana, Franklinton will, among other things:
- pay $205,000 in damages to Quail Run’s developers and $25,000 in a civil penalty to the United States;
- approve and support the development of at least 40 units of affordable housing to replace the number of units that would have been included in the Quail Run development;
- rezone at least 20 acres of available land to make it available for the development of affordable housing;
- create a land donation program to support the development of affordable housing;
- revise its zoning procedures to increase transparency and ensure that uniform non-discriminatory standards are applied in Franklinton’s residential land use decisions;
- provide training on fair housing and zoning procedures to its officials and employees who are involved in land use and zoning; and
- hold a public listening session on the town’s need for housing and host an educational program for Franklinton’s residents to learn about their fair housing rights.
Individuals who believe they have been victims of housing discrimination practices can file a complaint with HUD or a lawsuit in federal or state court. Individuals must file their complaint with HUD within one year of a housing discrimination incident or file a lawsuit in federal or state court within two years of an incident. To report discrimination in land use or zoning decisions, individuals may also contact Civil Rights Division’s Housing and Civil Enforcement Section at (833) 591-0291 or report a violation of civil rights online at www.civilrights.justice.gov/.
The department recently filed three Statements of Interest in land use and zoning cases alleging discrimination on the basis of race. More information about the application of the Fair Housing Act to state and local land use and zoning decisions can be found in the Justice Department and HUD’s Joint Statement. For more information about housing discrimination laws call (202) 514-4713 or visit the Justice Department website at www.justice.gov/crt/housing-and-civil-enforcement-section.
Johnstown Man Pleads Guilty to Possessing Methamphetamine and Cocaine with Intent to DistributeRead the Press Release
ALBANY, NEW YORK – Leon “Sam” Ostrander, age 50, of Johnstown, New York, pled guilty today to possessing with intent to distribute methamphetamine and cocaine.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Ostrander admitted that on January 17, 2024, he possessed over 400 grams of actual methamphetamine and 1.2 kilograms of cocaine seized by law enforcement during a search warrant executed at Ostrander’s home. Ostrander further admitted that he possessed the substances with the intent to sell them.
Ostrander will be sentenced on October 25, 2024 by United States District Judge Anne M. Nardacci. Ostrander faces at least 10 years and up to life in prison, a fine of up to $10 million, and a term of post-release supervision of between 5 years and life. 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.
The DEA and the Johnstown Police Department investigated the case. Assistant U.S. Attorney Mikayla Espinosa is prosecuting the case.
Jefferson County man sentenced for COVID-Relief fraudRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced for federal violations related to a COVID-relief fraud scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Acheon King Aleidron, formerly known as Cameron Alexander, 35, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 57 months in federal prison by U.S. District Judge Marcia A. Crone on July 1, 2024. Aleidron was also ordered to pay $415,900.00 in restitution.
According to court documents, Aleidron used a Beaumont address for a business named The Fishing Factor, LLC to fraudulently obtain $415,000 under the Disaster Relief and Emergency Assistance Act for COVID-19 pandemic relief. Aleidron filed numerous fraudulent loan applications and received the funds which were intended to cover payroll, fixed debts, utilities, rent/mortgage, accounts payable and other bills incurred by qualifying businesses during and resulting from the COVID-19 pandemic. Aleidron opened five bank accounts with four different banks in in order to receive funds from the scheme. The government was able to seize $186,413.78 from Aleidron’s various bank accounts, which will be forfeited to pay back a portion of the loss.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses. In April 2020, Congress authorized over $300 billion in additional funding.
The Economic Injury Disaster Loan Program (“EIDL”) was a COVID-19 pandemic relief program administered by the SBA that provided loans to small businesses for job retention and certain other expenses. EIDL loans were intended to cover payroll, fixed debts, utilities, rent/mortgage, accounts payable and other bills incurred by qualifying businesses during, and resulting from, the COVID-19 pandemic. EIDL loans are processed outside the State of Texas. According to the SBA website (www.sba.gov), the stated purpose of an EIDL loan is “[t]o meet financial obligations and operating expenses that could have been met had the disaster not occurred.” EIDL loans are low interest loans and are not forgivable.
To obtain an EIDL loan, a qualifying business had to submit an EIDL loan application, which was signed by an authorized representative of the business. The EIDL loan application required the business (through its authorized representative) to acknowledge the program rules and make certain affirmative certifications to be eligible to obtain the EIDL loan, including that the business was in operation and needed the funds for working capital to alleviate economic injury caused by disaster occurring in the month of January 31, 2020, and continuing thereafter. For a business to be eligible for an EIDL loan, the business must have been in operation before February 1, 2020.
EIDL applications were submitted directly to the SBA and processed by the agency with support from a government contractor, Rapid Finance. EIDL loan applications were received by SBA servers located in Virginia, Iowa, or Washington. Once approved, the individual or business received the EIDL loan proceeds via an electronic funds transfer to a financial account under the control of the business.
The amount of the loan, if the application were approved, was determined based on the information provided by the applicant about employment, revenue, and cost of goods, as described above. Any funds issued under an EIDL advance were issued directly by the SBA. EIDL funds could be used for payroll expenses, sick leave, production costs, and business obligations, such as debts, rent, and mortgage payments.
This case was investigated by the SBA Office of Inspector General and prosecuted by Assistant U.S. Attorney Reynaldo P. Morin.
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Indianapolis Man Found Guilty of Masterminding Four Online Marketplace Armed Robberies, One of Which Resulted in DeathRead the Press Release
INDIANAPOLIS- A federal jury has convicted Demetris Campbell, 29, Indianapolis, of conspiracy to interfere with commerce by robbery, four counts of aiding the interference with commerce by robbery, and three counts of aiding the brandishing of a firearm in furtherance of a crime of violence, following a three-day trial.
According to court documents and evidence introduced at trial, between July 19 and July 28 of 2020, Campbell orchestrated at least four armed robberies of victims whom Campbell lured to an apartment complex under the false premise that they could purchase items via the online marketplaces LetGo and OfferUp.
In the first robbery, Victims C.D., a fifteen-year-old boy, and R.G., his father, communicated with Campbell, who was using the account “Man with a Plan” (MWTP) on Offer Up, with the intent to purchase an iPhone 11. Campbell provided the victims with a prechosen Indianapolis address to which he lured them to complete the fake transaction. Campbell also provided victims with a phone number that he could be reached at for further communication. The parties agreed on a price for the iPhone. Upon the victims’ arrival, three males, including Campbell’s co-conspirator, Angel Montano, approached the vehicle, showing what appeared to be the iPhone 11. The three robbers then brandished pistols and demanded the victims’ money.
In that robbery, the fifteen-year-old victim was struck in the face with a pistol. The robbers ultimately stole loose cash from the victims’ wallets as well as Nike Air Jordan tennis shoes the child was wearing.
In the second robbery, Campbell used the same Offer Up account to lure a mother and her two young children to the same apartment complex. Once there, his coconspirator, Angel Montano, reached into her vehicle and placed the muzzle of a pistol against her thigh, while her two juvenile children were in the car. He then stole the victims’ iPhones and cash.
In the third robbery, which occurred on July 22, 2020, Campbell used the LetGo “Simone” to lure a woman to the same apartment complex under the false premise that she was going to be able to purchase an iPhone 11. Upon her arrival, Angel Montano brandished a pistol and stated “I’ll shoot you! Give me the cash!” She complied by giving him $560 in cash that she had brought for the transaction, as well as her Samsung cell phone.
Between July 21 and 28 of 2020, Victim D.I. participated in ongoing contact with Campbell who was using the “Tony Reed” account on OfferUp regarding the advertised sale of two iPhone 11 Pro Maxes for $1400. They ultimately arranged to meet on July 28 at a location near Adams and 21 Street in Indianapolis. Victim D.I. brought his brother, E.I. Upon their arrival, the brothers felt uneasy and attempted to leave. Angel Montano then blocked them with his car, approached their vehicle, and fired into it killing E.I. and seriously wounding D.I.
The following morning, on July 29, 2020, IMPD officers arrested Campbell after tracing his name and location to the fake usernames used in the robberies. It was later discovered that Campbell was coordinating the schemes with Angel Montano, then selling the stolen phones and splitting the profit.
In February of 2023, Montano was sentenced to 40 years in federal prison after pleading guilty to two counts of interference with commerce by robbery and one count of brandishing a firearm in furtherance of a crime of violence.
The Federal Bureau of Investigation, U.S. Marshals Service, and IMPD investigated this case. Chief U.S. District Judge Tanya Walton Pratt presided over the trial and will sentence Campbell at a later date.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Tiffany J. Preston and Carolyn A. Haney, who prosecuted this case.
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Home Health Providers to Pay $4.5M to Resolve Alleged False Claims Act Liability for Providing Kickbacks to Assisted Living Facilities and DoctorsRead the Press Release
Guardian Health Care Inc., Gem City Home Care LLC and Care Connection of Cincinnati LLC, home health agencies operating in Texas, Ohio and Indiana, along with their owner Evolution Health LLC (together, the Companies), have agreed to pay $4,496,330 to resolve allegations that they violated the False Claims Act by knowingly providing illegal kickbacks to assisted living facilities and physicians in exchange for Medicare referrals.
This settlement resolves allegations that, from 2013 to 2022, Guardian Health Care, Gem City Home Care and Care Connection of Cincinnati provided lease payments and other valuable benefits, including wellness health services, sports tickets and meals, to numerous assisted living facilities and their residents, as well as certain health care providers, in exchange for referrals of Medicare beneficiaries. The home health agencies then billed Medicare for the home health services they provided to the referred patients.
The Anti-Kickback Statute prohibits the provision of remuneration with the intent to induce referrals of government health care program business. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives. Claims that are knowingly submitted in violation of the Anti-Kickback Statute are ineligible for payment and can violate the False Claims Act.
“It is imperative to ensure that improper financial incentives play no role in decisions regarding patient care,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s resolution demonstrates the department’s commitment to protecting the integrity of federal health care programs and the medical treatment received by their beneficiaries.”
The Companies received credit under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases. Among other actions, the Companies disclosed the conduct to the government, identified the individuals involved and assisted in the determination of losses caused to Medicare.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Trial Attorney Elizabeth A. Strawn of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Brandi Stewart for the Southern District of Ohio handled the matter.
The claims resolved by the settlement are allegations only. And there has been no determination of liability.
SettlementHeart Butte man admits stabbing employee in Glacier Peaks Casino and Hotel on Blackfeet Indian ReservationRead the Press Release
UPDATED to correct name of business as Glacier Peaks Casino and Hotel
GREAT FALLS — A Heart Butte man accused of stabbing an employee of the Glacier Peaks Casino and Hotel while in the business admitted to an assault charge today, U.S. Attorney Jesse Laslovich said.
The defendant, Kal William Runningcrane, 27, pleaded guilty to assault with a dangerous weapon. Runningcrane faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Nov. 7. Runningcrane’s release was continued pending further proceedings.
The government alleged in court documents that in the early morning hours of Feb. 25, Runningcrane stabbed a Glacier Peaks employee, identified as John Doe, with a knife. Runningcrane had been drinking for several hours with family and friends to celebrate his birthday. The group was listening to live music, and Doe was sitting alone at an adjacent table. Without provocation, Runningcrane walked to Doe’s table, approached from the side and stabbed Doe in the neck. Doe tried to stand and fight back, and Runningcrane stabbed him in the abdomen. Doe grabbed Runningcrane’s wrist, trying to disarm him, and was able to get away. The knife fell to the ground. Runningcrane left the scene and was arrested later that night miles from Browning, on the Blackfeet Indian Reservation, where the casino is located. Doe was rushed to the hospital and then life-flighted to Great Falls for treatment of wounds.
The U.S. Attorney’s Office is prosecuting the case. The FBI, Blackfeet Law Enforcement Services and Pondera County Sheriff’s Office conducted the investigation.
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Gulfport Man Pleads Guilty to Brandishing a Firearm at Postal CarrierRead the Press Release
Gulfport, Miss. -- A Gulfport man pled guilty to brandishing a firearm in furtherance of a crime of violence.
According to court documents, Rusty Holloway, 42, brandished a firearm on October 20, 2022, at a U.S. Postal employee mail carrier when she was delivering mail to a residence in Gulfport.
Holloway is scheduled to be sentenced on October 17, 2024, and faces a minimum penalty of seven years in prison and a maximum of life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Inspector in Charge Scott Pierce of the U.S. Postal Service Office of Inspector General, Southern Area Field Office, made the announcement.
The United States Postal Inspection Service is investigating the case.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
Georgia Man Pleads Guilty to Bank Fraud, Passport Fraud, and Aggravated Identity TheftRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Gary Dale Thrasher (56, Georgia) has pleaded guilty to five counts of bank fraud, three counts of passport fraud, and seven counts of aggravated identity theft. Thrasher faces a maximum penalty of 30 years in federal prison on each of the bank fraud counts; a maximum of 10 years’ imprisonment for each of the passport fraud offenses; and a 2-year minimum mandatory term of imprisonment for the aggravated identity thefts. Thrasher was indicted on March 27, 2024.
According to the plea agreement, between May and June 2023, Thrasher obtained and used, or attempted to use, fraudulent identification documents (including fraudulent United States passport cards) containing the identification of others. Thrasher used the fake documents as a means of identification to make cash withdrawals from multiple branches of four different federally insured financial institutions within the Middle District of Florida. As part of his guilty plea, Thrasher has agreed to forfeit $25,200—the proceeds of the fraud offenses.
This case was investigated by Homeland Security Investigations, the Ocala Police Department, the Wildwood Police Department, the Leesburg Police Department, and the Charlotte County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Gardena Street Gang Member Found Guilty of Participating in Fatal Shooting of Victim in Front of His Family’s HomeRead the Press Release
LOS ANGELES – A member of the Gardena 13 street gang was found guilty today by a jury of participating in the fatal shooting of a 29-year-old man who was murdered in front of his family home in November 2020.
Justin Arteaga, 23, a.k.a. “Hitta,” of Gardena, was found guilty of one count of violent crime in aid of racketeering (VICAR) murder. He has been in federal custody since December 2020.
“The victims of gang violence are most often the people living in the very neighborhoods the gangs claim as their own,” said United States Attorney Martin Estrada. “In this case, gang members once again committed a cowardly and senseless murder that ended the promise of a young life. The mandatory life sentence that will result for this defendant sends a clear message that my office is laser focused on holding perpetrators of violence accountable to the fullest account.”
“Gang violence has far too often senselessly transformed our family, friends, and neighbors into victims of crime. Sadly, this case was no different,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “My office has a long history of combatting gang violence, and I am extremely proud of the HSI special agents and our partners from the ATF, Gardena Police Department, Los Angeles Police Department, and the U.S. Attorney’s Office who were determined to seek justice for the family.”
“ATF targets trigger pullers by partnering with prosecutors, and law enforcement partners, to build cases against violent criminals,” said Special Agent in Charge of ATF Los Angeles Field Division Christopher Bombardiere. “ATF used its expertise in this investigation to link the evidence from the homicide firearms to the defendants. We will continue to pull and use all our resources to build cases against killers.”
According to evidence presented during a five-day trial, on November 13, 2020, the victim and his brother were seated in a parked car in front of their home when they were confronted by three men on foot – Arteaga, Antonio Yanez, 26, a.k.a. “Tank,” and George Hernandez, a.k.a. “Lil Vampy” – who were all armed with handguns. Yanez and George Hernandez were members of the Gardena 13 street gang, and Yanez was an associate of the gang. Following the victim’s perceived disrespect of Gardena 13 and the three assailants, all three assailants pulled out guns and began shooting the victim. After the victim had been shot, the victim’s father stepped out to help his son at which point a shootout between the victim’s father and the assailants, including Gardena 13 gang member Jesus Hernandez, 31, a.k.a. “Rowdy,” occurred.
Police and paramedics responded to the scene, where they treated the victim who died at the scene from gunshot wounds. George Hernandez, who was found lying on the street with gunshot wounds to his head and chest, was brought to a hospital, where he later died.
Arteaga was arrested four days later at Los Angeles International Airport as he was preparing to board a one-way flight to Mexico.
“The Gardena Police Department expresses its appreciation to the US Attorney's Office, the Department of Homeland Security Investigations, the ATF, and all other participating agencies in this thorough investigation and prosecution,” said Gardena Police Chief Michael Saffell. “We deeply value the dedication of our collaborative partners in ensuring justice and providing closure to the victim's family.”
Jesus Hernandez, who participated in the shootout, pleaded guilty in May 2022 to one count of being a felon in possession of a firearm and ammunition and is serving a 110-month prison sentence. Yanez pleaded guilty in February 2022 to one count of VICAR, one count of using a firearm in furtherance of a crime of violence resulting in death, and one count of being a felon in possession of a firearm and ammunition. He is expected to be sentenced in the coming months.
United States District Judge André Birotte Jr. scheduled a September 20 sentencing hearing, at which time Arteaga will face a sentence of life in federal prison.
Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Gardena Police Department investigated this matter.
Assistant United States Attorneys, including Kevin J. Butler of the Violent and Organized Crime Section and Varun Behl of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Fugitive receives significant sentence for synthetic narcoticsRead the Press Release
VICTORIA, Texas – A 38-year-old Sugar Land resident has been sentenced for conspiracy to possess with intent to deliver a synthetic cannabinoid and a separate charge for failure to appear, announced U.S. Attorney Alamdar S. Hamdani.
Naveed Rasheed Shike pleaded guilty April 2.
U.S. District Judge John D. Rainey has now ordered Shike to serve 208 months in federal prison for conspiracy to possess with intent to distribute a synthetic cannabinoid and another 54 months for failure to appear. The total 262-month prison term will be immediately followed by three years of supervised release. At the hearing, law enforcement presented testimony on the impact synthetic cannabinoids have on the local community, adverse effects of those substances and the imminent hazard the substances present to public safety. In handing down the sentence, the court noted and acknowledged the significant danger of synthetic cannabinoids as well as the large scale of the operation, specifically the volume of drugs Shike distributed and the significant number of affected individuals.
On Sept. 19, 2016, authorities conducted a traffic stop on U.S. Highway 77 south of Victoria. Law enforcement identified the driver as Henry Martinez and the front seat passenger as Shike.
During a search of the vehicle, authorities discovered over 1,400 retail packages of synthetic cannabinoids to be sold to and smoked. Shike admitted the synthetic cannabinoids were for delivery to individuals in Corpus Christi, and they were going to pick up $26,000. Shike admitted the “ledger” in the vehicle was from a prior trip and had done this several times.
Both Martinez and Shike were initially arrested and permitted release on bond.
On Oct. 2, 2019, Shike failed to appear at a scheduled court hearing before Judge Rainey, resulting in a warrant for his arrest. Authorities determined Shike had fled the United States to Karachi, Pakistani.
On Jan. 24, 2024, as part of Operation Lone Star, law enforcement engaged in a high-speed vehicle pursuit resulting in a bailout in Sullivan City. Authorities then tracked, located and arrested Shike. At the time of his arrest, Shike had been a fugitive for more than four years.
Laboratory analysis confirmed the presence of the synthetic cannabinoid FUB-AMB. Experts determined that based on the chemical structure and the pharmacological effects, FUB-AMB is a controlled substance under the Controlled Substance Analog Enforcement Act.
Synthetic cannabinoids are chemical compounds that mimic THC, the psychoactive ingredient in marijuana. After application to carrier mediums such as plant material, these chemical compounds are put into rolling papers, pipes, vaporizers or otherwise taken orally. Synthetic cannabinoids are usually sold in small, foil or plastic bags containing dried leaves (resembling potpourri) and marketed as incense for the purpose of smoking. It is commonly sold and known as synthetic marijuana, fake weed, legal and popular brand names including Kush, Spice, K2, Klimaxx and many other names.
Martinez, 48, Rosenberg, pleaded guilty Jan. 9, 2018, and received a 24-month sentence followed by two years of supervised release for conspiracy to distribute controlled substance analogs.
Shike has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance from the Drug Enforcement Administration, U.S. Marshals Service and Texas Department of Public Safety. Assistant U.S. Attorney Lance Watt prosecuted the case.
Fort Belknap man admits stabbing woman on Fort Belknap Indian ReservationRead the Press Release
GREAT FALLS — A Fort Belknap man accused of stabbing a woman multiple times during an argument admitted to an assault charge today, U.S. Attorney Jesse Laslovich said.
The defendant, Leon Boyd Messerly, 63, pleaded guilty to assault with a dangerous weapon. Messerly faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Nov. 2. Messerly was detained pending further proceedings.
In court documents, the government alleged that on July 13, 2023 in their home on the Fort Belknap Indian Reservation, Messerly and the victim, identified as Jane Doe, got into a fight. Jane Doe stated that Messerly was angry at her for not protecting his son and punched her in the face. Messerly also grabbed a chef’s knife and stabbed Jane Doe multiple times in her neck, back and left arm. Messerly then went to a friend’s house and told the friend that he had stabbed Jane Doe. The friend checked on Jane Doe, saw her with stab wounds and drove her to the emergency room. Jane Doe was transported to a hospital in Great Falls where she underwent multiple surgeries.
The U.S. Attorney’s Office is prosecuting the case. The FBI and Fort Belknap Police Department conducted the investigation.
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Former Security Supervisor at Reentry Center Pleads Guilty to Sexual Abuse of InmateRead the Press Release
PHOENIX, Ariz. – Morris Gary Hibbitt, 51, of Avondale, pleaded guilty on June 17, 2024, before United States Magistrate Judge John Z. Boyle to the felony charge of sexual abuse of an inmate.
On September 9, 2024, Chief United States District Judge G. Murray Snow will sentence Hibbitt.
At the time of the offense, Hibbitt worked as a Security Supervisor for Behavioral Systems Southwest (BSS), a residential reentry center in Phoenix. The Federal Bureau of Prisons (BOP) contracts with BSS to help inmates reenter the community when they complete their prison terms. Inmate wards at BSS remain in official detention and under the custodial authority of the BOP.
On May 21, 2023, while on duty as the Security Supervisor at BSS, Hibbitt sexually abused a female inmate under his supervision.
The investigation in this case was conducted by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. The prosecution was handled by Kristen Brook, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-24-00993-PHX-GMS
RELEASE NUMBER: 2024-085_Hibbitt# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Former New Orleans Police Officer Charged in Insurance Fraud and Bribery SchemesRead the Press Release
NEW ORLEANS - The United States Attorney’s Office announced that CHRISTIAN CONRAD CLAUS, age 55, has been indicted on one count of Wire Fraud, one count of Mail Fraud, one count of conspiracy to commit those crimes, one count of Use of a Facility in Interstate Commerce in Aid of Bribery, one count of conspiracy to commit that crime, and one count of Making a False Statement to a Federal Agent.
The indictment alleges that in 2019, CLAUS, then a NOPD police officer, conspired with a New Orleans homeowner and a Nevada art appraiser to submit a fraudulent insurance claim on the homeowner’s property. It is alleged that the claim reported that valuable paintings were stolen from the insured’s house, when in truth, the paintings were neither valuable nor stolen. The indictment also alleges that the homeowner agreed, in exchange for CLAUS using his police position to further the scheme, to share the insurance proceeds with CLAUS and to provide CLAUS with assistance in obtaining employment positions.
The fraud and fraud conspiracy charges are each punishable by up to 20 years imprisonment. The bribery, bribery conspiracy, and false statement charges are each punishable by up to five years imprisonment. Sentencing for each count, if there is a conviction, may include a fine of up to $250,000 and up to three years of supervised release following imprisonment.
The homeowner, Fouad K. Zeton, and the appraiser, Michael Jon Schofield, previously pleaded guilty and are awaiting sentencing.
The United States Attorney’s Office reiterated that the indictment is merely a charge and that the defendant’s guilt must be proven beyond a reasonable doubt.
This case was investigated by the FBI. Assistant U.S. Attorney Chandra Menon of the Public Integrity Unit, is in charge of the prosecution.
Former Defense Department Employee Pleads Guilty to Defrauding Government in Fake Invoices SchemeRead the Press Release
A California woman pleaded guilty today to devising a multi-year scheme to defraud the U.S. government by submitting fake invoices for supplies that were never purchased and converting the stolen funds for her personal use.
According to court documents, Zelene Charles, 42, of Monterey, a then-civilian employee of the Department of Defense, at the Defense Language Institute in Monterey, California, perpetrated a scheme to defraud the U.S. government by creating fake purchase requests and invoices for government purchases from both fictitious and legitimate business entities. The items listed in these invoices were never actually purchased or received by the government. Between December 2016 and April 2020, Charles placed approximately 185 fraudulent charges, causing a total loss to the government of $624,250. To conceal that she was the recipient of the stolen funds, Charles frequently renamed the business names associated with intermediary accounts and, in total, used at least 78 different account names.
Charles pleaded guilty to wire fraud and theft of government money and property. She faces a maximum penalty of 20 years in prison for the wire fraud charge and 10 years in prison for the theft charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Charles also agreed to pay $624,500 in restitution and forfeit numerous stolen government computers and tablets as part of her plea.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ismail J. Ramsey for the Northern District of California; Special Agent in Charge Bryan Denny of the Defense Criminal Investigative Service (DCIS) Western Field Office; Special Agent in Charge Keith K. Kelly of the Department of the Army Criminal Investigation Division’s (Army-CID) Fraud Field Office; Special Agent in Charge Shawn Dionida of the Department of Agriculture Office of Inspector General (USDA-OIG) Western Region; and Special Agent in Charge Terry Pfeifer of the General Services Administration Office of Inspector General (GSA-OIG) Western Division made the announcement.
The DCIS Western Field Office, Army-CID Fraud Field Office, USDA-OIG Western Region, and GSA-OIG Western Division are investigating the case.
Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Anne C. Hsieh for the Northern District of California are prosecuting the case.
Former Baltimore Police Officer Sentenced to Two and A Half Years for Illegal Drug and Firearms ChargesRead the Press Release
Baltimore, Maryland – On June 28, 2024, U.S. District Court Judge Ellen L. Hollander sentenced Steven Umberto Angelini, of Baltimore, Maryland, to two and a half years in federal prison and other conditions, including drug treatment, for conspiracy to distribute cocaine and oxycodone and possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Special Agent in Charge William DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) Baltimore, and Chief Robert McCullough of the Baltimore County Police Department.
According to his plea agreement, Angelini was a member of the Baltimore Police Department (BPD) and from January 2022 through May 2022, Angelini and Co-Conspirator 1 conspired to distribute and possess with intent to distribute cocaine and oxycodone. During the conspiracy Angelini twice also offered to go to the Baltimore City Police Department (“BPD”) Homicide Unit to obtain information about an investigation involving Co-Conspirator 1’s supplier who had been murdered.
Angelini also provided Co-Conspirator 1 with law enforcement sensitive information on the case and some pictures, which were available to BPD employees through mass email dissemination.
According to his plea agreement, Angelini’s offer to obtain the video for Co-Conspirator 1 was made with the sole objective to persuade Co-Conspirator 1 to provide him with cocaine.
Angelini also offered to sell Co-Conspirator 1 a privately made firearm, also known as a “ghost gun,” in exchange for cash and narcotics.
In April 2022, Angelini provided 20 oxycodone pills to Co-Conspirator 1. Later in April 2022, Angelini texted Co-Conspirator 1 that he was at a gun shop and stated that he wanted to purchase cocaine from Co-Conspirator 1. Angelini then offered to purchase ammunition and firearms accessories for Co-Conspirator 1 in exchange for cocaine. Angelini purchased a magazine for the privately made firearm he sold to Co-Conspirator 1, as well as ammunition, including hollow-point ammunition, which he provided to Co-Conspirator 1 later that night in exchange for cocaine.
Further, Angelini admitted that in May 2022, after visiting a Rosedale, Maryland pain clinic and filling a prescription for oxycodone pills, he called Co-Conspirator 1 and notified him that he had the pills available for sale. They negotiated that Co-Conspirator 1 would give Angelini cash and cocaine in exchange for the oxycodone.
United States Attorney Erek L. Barron commended the FBI, HSI and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Christine Goo, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Foreign national charged with selling counterfeit drugsRead the Press Release
HOUSTON - An Indian national is set to appear for his detention hearing on charges related to his alleged sale and shipment of counterfeit cancer pharmaceuticals into the United States, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Sanjay Kumar, 43, Bihar, India, June 26. He is expected to appear before U.S. Magistrate Judge Peter Bray at 10 a.m.
According to the complaint, Kumar arranged to have shipped counterfeit versions of Keytruda, an oncology pharmaceutical Merck and Co. manufactures, to individuals in the United States on several occasions. He also allegedly did the same with counterfeit versions of other oncology pharmaceuticals.
Kumar is charged with conspiracy to traffic in counterfeit goods (drugs). If convicted, he faces a maximum of 10 years in federal prison as well as a possible $1 million fine.
Homeland Security Investigations and Food and Drug Administrations conducted the investigation.
Assistant U.S. Attorney Jay Hileman is prosecuting the case along with Trial Attorneys Jeff Pearlman and Bryce Rosenbower of the Criminal Division’s Computer Crime and Intellectual Property Section.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal jury finds Anchorage man guilty of cyberstalkingRead the Press Release
ANCHORAGE, Alaska – A federal jury convicted an Anchorage man Friday after a five-day trial for cyberstalking a woman over four years.
According to court documents and evidence presented at trial, between 2016 and 2020, Rolando Hernandez-Zemora, 40, stalked the victim using location tracking applications, text messages, and video calls, and other means in order to try and control her life.
In 2020, the harassment extended to some of the victim’s work colleagues and family members and included threats of violence. Hernandez-Zemora’s harassment of the victim continued even after she obtained a protective order. As a result of his threats, the victim’s workplace went into lockdown for multiple days from late April to early May 2020. Hernandez-Zemora was arrested at the end of May 2020 after he evaded the police for two days.
“I want to commend the victim for her bravery in coming forward, and we hope this conviction is the first step in closure and justice for those impacted by this case,” said U.S. Attorney S. Lane Tucker. “Mr. Hernandez-Zemora is a serious danger to the community, demonstrated by his desire to harm the victim, her colleagues and her family. My office will continue to seek justice against perpetrators who choose to threaten violence.”
“The defendant’s disturbing pattern of conduct involved threats of violence and cyberstalking harassment, which caused substantial fear of harm and emotional distress,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “This type of conduct will not be tolerated. Today’s verdict underscores our commitment to hold accountable those who commit such crimes.”
The FBI Anchorage Field Office and Anchorage Police Department investigated the case.
Assistant U.S. Attorneys Jennifer Ivers and Seth Beausang are prosecuting the case.
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Federal Jury Convicts Airman for Attempting to Engage in Sex Acts with Purported 14-Year-OldRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Jonathan Howard Kuykendall (39, Tampa) guilty of one count of attempted enticement of a minor to engage in sexual activity. Kuykendall faces a minimum mandatory sentence of 10 years, up to life, in federal prison. His sentencing is scheduled for September 19, 2024.
According to evidence presented at trial, in June 2022, Kuykendall was a member of the U.S. Air Force stationed at MacDill Air Force Base in Tampa. During that time, Kuykendall began messaging someone named “Ms. Glitter” online. Within the first few messages, Ms. Glitter told Kuykendall that she was 14 years old and lived on the base with her single mother. During the next two weeks, Kuykendall groomed Ms. Glitter, gradually introducing sexual topics to her. He began by talking about cuddling with her and kissing her. From there, he began sending her graphic descriptions of various sex acts that he wished to perform with her as well as numerous adult pornography images.
All of this continued until June 24, 2022, when Kuykendall, thinking Ms. Glitter’s mom was not home, agreed to come to her house on MacDill Air Force Base. Kuykendall drove to Ms. Glitter’s house, took several male sexual enhancement pills, and approached the home’s backdoor. Kuykendall learned Ms. Glitter was actually an undercover federal agent conducting a proactive Internet Crimes Against Children operation. He was arrested on scene.
This case was investigated by the United States Air Force Office of Special Investigations Detachment 340 at MacDill Air Force Base, the 6th Security Forces Squadron at MacDill Air Force Base, and Homeland Security Investigations in Tampa. It is being prosecuted by Assistant United States Attorneys Karyna Valdes and Daniel J. Marcet.
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.
Essex County Man Admits Stealing Federal Benefits Meant for Missing Girlfriend’s Disabled SonRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted his role in embezzling federal benefits meant for the disabled child of his former girlfriend shortly after she went missing, U.S. Attorney Philip R. Sellinger announced.
Asmar Earp, 37, of Newark, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court on June 26, 2024, to three counts of an indictment charging him with two counts of wire fraud and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
Earp was in a romantic relationship and shared a house in Newark with V.W. Through a program administered by Social Security Administration, V.W. received monthly payments on behalf of her disabled minor son, who was not capable of managing these benefits on his own. On Dec. 24, 2017, V.W. went missing and her whereabouts remain unknown. Six days after V.W.’s disappearance, Earp fraudulently gained control of V.W.’s son’s benefits by changing the PIN code on the debit card used to access those funds. In March and April 2018, Earp also fraudulently used V.W.’s name, date of birth, and Social Security number to receive a replacement debit card to continue accessing and using V.W.’s son’s benefits. From December 2017 through February 2020, Earp and others acting at his direction repeatedly and fraudulently took the money intended to help V.W.’s son and used it on themselves.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross loss to the victim or gain of the defendant, whichever is greatest. The count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which run consecutively to any other term of imprisonment, and a fine of $250,000, or twice the gross loss to the victim or gain of the defendant, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the Social Security Administration, Office of the Inspector General, under the direction of Acting Special Agent-in-Charge Bradley Parker of the New York Boston Field Division, and the Essex County Prosecutor’s Office, under the leadership of Prosecutor Theodore N. Stephens II, with the investigation.
The government is represented by Assistant U.S. Attorney Daniel H. Rosenblum of the General Crimes Unit in Newark.
earp.indictment.pdfDistrict Man Pleads Guilty to Armed CarjackingRead the Press Release
WASHINGTON – James Borum, 21, of Washington, DC, pleaded guilty today to armed carjacking in connection with several armed carjackings that occurred in January of 2021, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Borum pleaded guilty in the Superior Court of the District of Columbia to one count of armed carjacking. Sentencing is scheduled for August 30, 2024, before Judge Lynn Leibovitz. Armed carjacking carries a mandatory minimum term of 15 years of incarceration.
According to the government’s evidence, on January 12, 2021, just after midnight, Borum and other individuals approached the victim as he was standing in front of his home in Northwest DC. The defendant and his accomplices, at least one of whom was armed with a firearm, pointed a firearm at the victim and demanded the keys to the victim’s car. Borum and his accomplices then took the keys to the victim’s car and fled from the area in that car.
At approximately 1:00 a.m., officers with the Metropolitan Police Department observed the victim’s vehicle speeding in the 2600 block of Benning Road, NE. Police requested air support from MPD’s helicopter, Falcon-1, which tracked the victim’s vehicle, following it to the 3400 block of Rhode Island Avenue. As the victim’s vehicle approached the traffic circle located at 1 Municipal Place in Mount Rainier, Maryland, the vehicle struck a utility pole and flipped upside down. Borum exited and ran from the vehicle before being stopped by MPD officers.
This case was investigated by the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorneys Benjamin Helfand and Richard Carlton.
Davenport Man Sentenced to 156 Months in Federal Prison for Conspiracy to Distribute DrugsRead the Press Release
DAVENPORT, Iowa – A Davenport man was sentenced to 156 months in federal prison for conspiracy to distribute cocaine and cocaine base.
According to public court documents and evidence presented at the sentencing hearing, Domonique Deshawn Parrow, 38, was identified by law enforcement as a cocaine and cocaine base distributor, which he distributed directly out of his residence for at least three years. When law enforcement executed a search warrant at Parrow’s residence, they found cocaine and cocaine base packaged for resale, a firearm, and money. In total, Parrow was responsible for the distribution of at least 3.2 kilograms of cocaine during the conspiracy.
After completing his term of imprisonment, Parrow will be required to serve three years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Danbury Business Owner Pleads Guilty to Tax EvasionRead the Press Release
Vanessa R. Avery, United States Attorney for the District of Connecticut, and Harry T. Chavis, Jr., Special Agent in Charge of IRS Criminal Investigation in New England, announced that BILL G. MAKROS, 57, of Danbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Vernon D. Oliver in Hartford to tax evasion.
According to court documents and statements made in court, Makros owned and operated a tree service business known as Budget Tree and Stump Removal Service, LLC. From 2016 through 2020, Makros concealed his income by receiving customer payments in the form of checks made payable to “cash” or to him personally, and by depositing the checks into bank accounts other than his business bank account. At times, he also cashed check payments and did not deposit the cash into any business or personal accounts. For the 2016 through 2020 tax years, Makros failed to file his federal individual tax returns, and failed to pay $140,694 in taxes on approximately $517,000 in net profits.
In addition, during the COVID-19 pandemic, Makros applied for pandemic relief loans and, as part of that process, submitted IRS Schedule C forms for his business that purported to be part of his tax returns for 2019 and 2020, even though he had not filed tax returns with the IRS for those years.
Judge Oliver scheduled sentencing for September 27, 2024, at which time Makros faces a maximum term of imprisonment of five years. Makros is released on a personal recognizance bond pending sentencing.
This investigation is being conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Anastasia King.
Convicted Felon Pleads Guilty to Federal Firearms OffenseRead the Press Release
WASHINGTON – Jereal J. Booker, 24, of Washington, D.C., pleaded guilty today to a federal firearms offense stemming from his possession of a loaded firearm in March 2023, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Booker pleaded guilty in the U.S. District Court for the District of Columbia to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. The Honorable Richard J. Leon scheduled sentencing for October 1, 2024.
According to court papers, on March 21, 2023, an MPD officer observed Booker walking outside a convenience store in a manner that suggested he was carrying a firearm in the front of his pants. An employee of the store then told the officer that he had seen Booker adjusting a firearm in the front of his pants, and he showed the officer surveillance footage that corroborated his account. When the officer attempted to stop Booker in the 4600 block of Livingston Road Southeast, Booker broke into headlong flight. While fleeing the police, Booker discarded the firearm in some bushes before allowing himself to be apprehended. Nearby construction workers who had witnessed the chase alerted the officers to look in the bushes. They did so and recovered a .40 caliber, semi-automatic handgun loaded with one chambered round and ten rounds in its magazine. DNA testing later linked the firearm to Booker.
Booker was arrested on March 21, 2023, and remains detained pending sentencing.
Federal law prohibits Booker from possessing a firearm because he has previously been convicted of crimes punishable by imprisonment for a term exceeding one year, including a 2023 conviction for unlawful possession of a firearm in the Superior Court of the District of Columbia and a 2021 conviction for attempted carjacking in the Circuit Court for Montgomery County, Maryland. Booker was on probation for both convictions at the time of this offense.
Booker faces a maximum sentence of 15 years in prison and up to a $250,000 fine. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentence imposed in this case will be determined by the court after considering the U.S. Sentencing Guidelines and other statutory factors.
In announcing the plea, U.S. Attorney Graves and Chief Smith commended the work of the officers of the Metropolitan Police Department. Valuable assistance was provided by the Federal Bureau of Investigation’s Laboratory in Quantico, Virginia.
The case is being prosecuted by Assistant U.S. Attorney Paul V. Courtney.
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Charter schools founder & superintendent pleads guilty to conspiring to commit bank fraudRead the Press Release
COLUMBUS, Ohio – A Central Ohio man who founded and served as the superintendent of two Columbus charter schools pleaded guilty in U.S. District Court here today to conspiring to commit bank fraud.
Abdirizak Y. Farah, 59, admitted to fraudulently using school funds to help purchase his New Albany home.
Farah founded Focus Learning Academy of Northern Columbus (FLANC) on Dublin Granville Road in 2007. The school serves approximately 700 students in kindergarten through eighth grade. Focus Learning Academy of Central Columbus (FLACC) on Cleveland Avenue was founded in 2020 and serves Pre-K through third grade students.
Farah was also employed as a senior policy advisor for the U.S. Department of Homeland Security.
According to court documents, in August 2020, Farah purchased a $900,000 home on Lambton Park Road in New Albany. On Aug. 12, two days before his original closing date, Farah requested a $265,000 wire from a Focus Learning bank account to another person and stated the purpose was for “learning materials.”
That same day, Farah submitted a letter to the bank handling his real estate closing, stating he received $260,000 in gifted funds that were unrelated to the real estate transaction.
The next day, on Aug. 13, the person who received the wired funds in turn wired $260,000 to the title company handling the closing.
In the following days, several FLANC vendors made payments totaling approximately $265,000 to the person who assisted Farah, and that money was returned to FLANC.
As part of his plea, Farah will forfeit $265,000 to the United States.
“The role of IRS Criminal Investigation becomes even more important in complex financial investigations that can take time to unravel," said Karen Wingerd, Special Agent in Charge, Cincinnati Field Office. "Federal tax laws are normally violated in these types of cases which add additional jail time to sentences. As we often see, the victims are not only American taxpayers, but also individuals and businesses who suffer financial harm.”
Conspiracy to commit bank fraud is a crime punishable by up to 30 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future hearing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; James Izzard, Deputy Inspector General, Department of Homeland Security’s Office of Inspector General (DHS OIG) Office of Investigations; and Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigations (IRS-CI) announced the guilty plea offered today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney David J. Twombly is representing the United States in this case.
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Bridger Mother and Son Convicted of Second-Degree Murder and Assault ChargesRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a jury has convicted Theodora Belt, age 47, and Bailey Belt, age 23, both from Bridger, South Dakota, of Second-Degree Murder, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury. Bailey Belt was convicted of additional Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury charges involving a different victim, following a four-day jury trial in federal district court in Pierre, South Dakota. The verdict was returned on June 28, 2024.
Theodora Belt faces a maximum penalty of up to life in custody and/or a $250,000 fine, five years of supervised release, and a $300 special assessment to the Federal Crime Victims Fund. Bailey Belt faces a maximum penalty of up to life in custody and/or a $250,000 fine, five years of supervised release, and a $500 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Both defendants were indicted by a federal grand jury in June of 2023.
The convictions stem from an incident that occurred on May 27, 2023, in Bridger, within the Cheyenne River Reservation. Theodora and Bailey Belt were at the victims’ home socializing. An argument began between the parties and the defendants assaulted victim #1 by punching, kicking, and beating him with a shovel. As victim #1 lay on the ground outside the home he was run over with Theodora’s car, ultimately killing him. In addition, Bailey Belt struck victim #2 in the head with a shovel, causing him to be life-flighted to Rapid City for medical treatment, where he survived.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Troy R. Morley and Brian J. Murphy prosecuted the case.
The defendants were immediately remanded to the custody of the U.S. Marshals Service.
Birmingham Man Sentenced to More than Five Years for Unlawfully Possessing U.S. Postal Service Key and Possession of Stolen MailRead the Press Release
HUNTSVILLE, Ala. – A federal judge sentenced a Birmingham man on charges of possession of stolen mail and unlawful possession of U.S. Postal Service (USPS) keys, announced U.S. Attorney Prim F. Escalona and U.S. Postal Inspection Service Inspector-in-Charge Scott D. Fix, Houston Division.
U.S. District Court Judge Anna Manasco sentenced Derrell Allen Matthews, 27, to 63 months in prison. In February, Matthews pleaded guilty to conspiracy, paying a bribe to a public official, possession of U.S. Postal Service keys, stolen or reproduced, bank fraud and possession of stolen mail.
U.S. District Court Judge Anna Manasco previously sentenced two other defendants involved in the scheme:
Keaundria Janae Gresham, 30, of Pleasant Grove, was sentenced to 12 months in prison for conspiracy, public official accepting a bribe and possession of U.S. Postal Service keys, stolen, or reproduced.
Steven Cornelius Hudson, Jr, 34, of Bessemer, was sentenced to 36 months of probation for possession of stolen mail. According to Hudson’s plea agreement, Matthews paid him to drive him around.
According to court documents, between August 2022 and April 2023, Matthews used stolen USPS keys to steal mail from several blue collection boxes in Hoover, Alabama. Matthews purchased the USPS keys from Greshman. Greshman was employed by the United States Postal Service as a letter carrier and was assigned to a U.S. Post Office in Birmingham. She used her position to provide unauthorized USPS keys to Matthews. In October 2022, Matthews was found in possession of a USPS key, stolen checks, counterfeit checks, blank checks, stock printers and more than 350 stolen, altered, or counterfeit checks totaling over $1 million dollars. Between October 2021 and May 2023, Matthews deposited altered or counterfeit checks by ATM or mobile deposit into co-conspirator’s bank accounts. Matthews took a portion of the deposited amount for himself and left a portion in the account or paid the person by other means.
In April 2023, postal inspectors and Shelby County Sheriff’s deputies observed Matthews open two blue collection boxes at the Meadowbrook Post Office. Matthews removed mail from the boxes and put it in the front seat of his vehicle. Deputies conducted a traffic stop on the vehicle. The driver, Hudson, Jr. and the passenger, Matthews, were arrested.
If you like to report United States Postal Service mail theft or other crimes committed through or towards the United States Postal Service, please contact the United States Postal Inspection Service at 1-877-876-2455 or https://www.uspis.gov/report.
U.S. Postal Inspection Service, along with the Shelby County Sheriff’s Office investigated the case. Assistant U.S. Attorney Daniel McBrayer prosecuted the case.
Attorney General Merrick B. Garland Statement on the 60th Anniversary of the Civil Rights ActRead the Press Release
The Justice Department issued the following statement today from Attorney General Merrick B. Garland on the 60th anniversary of the Civil Rights Act of 1964:
“The Civil Rights Act of 1964, signed into law 60 years ago today, gave the Justice Department some of its most important tools to protect Americans from discrimination, including at school, in the workplace, in voting, and in places of public accommodation.
Today, we remember the generations of Americans who risked their lives – and the many who sacrificed their lives – in the struggle to claim the rights guaranteed to Black Americans, and to all Americans, under the Constitution.
We recognize the continued dedication of our partners in the civil rights community who are the inheritors of that legacy.
And we honor the public servants across the Justice Department who have worked to fulfill the promise of the Civil Rights Act over the past six decades and continue to do so today.
Before signing the Civil Rights Act of 1964 into law 60 years ago, President Lyndon Baines Johnson addressed the American people, saying, ‘the Civil Rights Act is a challenge to all of us to work in our communities and our States, in our homes and in our hearts, to eliminate the last vestiges of injustice in our beloved country.’
Today, as we mark the 60th anniversary of the Civil Rights Act, the Justice Department renews our commitment to meeting that challenge.”
Atlantic County Man Admits Committing Spree of Armed Robberies, Armed Carjacking, Firearms OffensesRead the Press Release
NEWARK, N.J. – A Essex County, New Jersey, man admitted committing a spree of robberies and a carjacking, U.S. Attorney Philip R. Sellinger announced today.
Deion Nance, 28, pleaded guilty before U.S. District Judge Susan D. Wigenton on June 27, 2024, to a five-count information charging him with two counts of Hobbs Act robbery, one count of carjacking, and two counts of using and carrying a firearm during and in relation to a crime of violence.
According to documents filed in this case and statements made in court:
Nance admitted that on Dec. 30, 2020, he used a firearm to steal a 2016 Toyota Corolla from the occupant of the vehicle. He pointed a handgun at the victim, pulled the victim out of their vehicle and pushed the firearm into her face. He got into the driver's seat and drove away in the victim’s car.
Nance admitted that on Jan. 4, 2021, he robbed two restaurants. At the first restaurant, he pointed a loaded firearm at a restaurant employee and demanded money. The employee gave Nance $176. That same day, he attempted to rob a restaurant by threatening an employee and pointing a firearm at the employee.
The count of carjacking is punishable by a maximum of 15 years in prison; Hobbs Act Robbery is punishable by a maximum of 20 years in prison, and use of a firearm during a crime of violence is punishable by a maximum of life in prison. Each firearms offense carries a statutory minimum prison sentence of five years in prison, which must run consecutively to any other prison term imposed. All counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 29, 2024.
U.S. Attorney Sellinger credited law enforcement from the Newark and Harrison police departments, and special agents and task force officers with the FBI Newark Field Division, under the direction of James E. Dennehy, with the investigations leading to the plea hearing.
The government is represented by Assistant U.S. Attorney Megan Linares of the Organized Crime and Gangs unit in Newark.
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30 June 2024
Owner of Online Luxury Baby Boutique Found Guilty on 31 Counts of Defrauding COVID-19 Relief ProgramsRead the Press Release
DENVER – The U.S. Attorney for the District of Colorado announced that a jury found a former Colorado resident guilty of 31 counts of defrauding the Economic Injury Disaster Loan (EIDL) Program and the Paycheck Protection Program (PPP) of nearly half a million dollars.
Shambrica Washington, 39, now a resident of Parker, Texas, was found guilty on 31 counts including wire fraud, bank fraud, money laundering, and false claims offenses.
According to facts established at trial, Washington, obtained loans from the Small Business Administration for two Economic Injury Disaster Loans and from JPMorgan Chase for two PPP loans for a total of $485,749.00 between March of 2020 and July of 2020. During that time Washington obtained the loans under two business names, including Tiny Toes and Tiaras, an online luxury baby boutique. To obtain the fraudulent loans, Washington misrepresented how many people were employed by her businesses and the businesses’ wages, revenues, and costs of operation. She used the funds to purchase a car, a custom-built home, pay for elective surgery, and pay credit card debt and other bills with the money. She then applied for millions of dollars in additional loans, grants, and tax credits, including by applying for advance tax credits from the Internal Revenue Service and a $6 million grant through a Small Business Administration program intended for shuttered concert venues.
“The defendant in this case fraudulently took money from American taxpayers for her own personal benefit,” said Acting United States Attorney for the District of Colorado Matthew Kirsch. “Our office and the Department of Justice will continue to seek out and prosecute individuals who took advantage of programs meant to help those in need during the COVID-19 pandemic.”
“CARES Act funds were meant to provide direct economic assistance to American workers and businesses negatively impacted by the COVID-19 pandemic,” said Special Agent in Charge Mark Michalek. “This defendant fraudulently obtained hundreds of thousands of dollars under this program to buy homes, vehicles, and elective surgery. The FBI will continue to pursue such criminal opportunists and hold them accountable.”
“The defendant was found guilty of taking advantage of programs designed to provide emergency financial assistance to millions of American workers, families, and small businesses,” said IRS-CI Special Agent in Charge Andy Tsui. “IRS-CI has been involved in investigating fraudulent activities tied to CARES Act funds since its inception and our special agents will continue to track down individuals who stole money intended for those whose lives were upended by the pandemic.”
United States District Court Judge William J. Martinez presided over the trial. IRS Criminal Investigation and the FBI Denver Field Office conducted the investigation. Assistant United States Attorneys Craig Fansler and Taylor Glogiewicz handled the prosecution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On July 11, 2023, the Attorney General selected the District of Colorado’s U.S. Attorney’s Office to head one of five national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-results-nationwide-covid-19-fraud-enforcement-action.
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.
29 June 2024
Troy Man Pleads Guilty to Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK –Todd Ward, a/k/a “Fats,” age 45, of Troy, New York, pled guilty earlier this week to conspiring to defraud the New York State Department of Labor (NYSDOL) by obtaining unemployment insurance benefits under the name of another person, including benefits funded by the federal government in response to the COVID-19 pandemic.
The announcement was made by United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Jonathan Mellone, Special Agent in Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG).
Ward admitted that he provided Carl J. DiVeglia III with the personal identifying information of another individual, which DiVeglia used to file a false claim via the NYSDOL website. Ward further admitted that as a result of the fraudulent applications submitted by DiVeglia, the NYSDOL paid out $152,086 in unemployment insurance benefits. As part of his plea agreement, Ward agreed to pay $152,086 in restitution to the State of New York. DiVeglia previously pled guilty to fraudulently obtaining $1.6 million in unemployment insurance benefits as part of the scheme. Ward’s three co-defendants, his brother Christopher Ward, Rocco Resciniti, and Jamaine Myers, have all pled guilty to related offenses.
Ward faces a maximum of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on November 14, 2024, by U.S. District Judge Glenn T. Suddaby.
The FBI and USDOL-OIG are investigating this case, with assistance from the NYSDOL Office of Special Investigations, and Assistant U.S. Attorneys Joseph S. Hartunian and Joshua R. Rosenthal are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
28 June 2024
Worcester Man Pleads Guilty to Role in Drug Distribution ConspiracyRead the Press Release
BOSTON – A Worcester man pleaded guilty yesterday for his involvement in a cocaine distribution conspiracy.
Luis Torres, 47, pleaded guilty to one count of conspiring to possess with the intent to distribute and to distribute 500 grams or more of cocaine and one count of use of a communication facility to facilitate a drug felony. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Sept. 17, 2024. In December 2022, Torres was indicated by a federal grand jury.
Torres conspired with others to coordinate delivery of a package sent from Puerto Rico known by him to contain 4 to 6 kilograms of cocaine and to take possession of the cocaine with the intent to distribute it. In June 2022, law enforcement intercepted the package and executed a controlled delivery during which another individual accepted the package while Torres sat in a car nearby. Torres was arrested at the scene and $26,480 in cash from the car in which Torres was being driven was recovered. Torres admitted he received cash as an advance payment for one of the kilos of cocaine.
The charge of conspiring to distribute five hundred or more grams of cocaine provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of using a communications facility to facilitate a drug felony provides for up to four years incarceration, a fine up to $250,000 and supervised release of up to one year. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Kaitlin Brown of the Worcester Branch Office is prosecuting the case.
Woman Sentenced to Nine Years for Sex Trafficking ConspiracyRead the Press Release
WASHINGTON – A Texas woman was sentenced on June 25, 2024 for conspiring to commit sex trafficking by force, fraud, or coercion.
According to court documents, in 2021 and 2022, Patricia Hart, 25, and her boyfriend and co-defendant, Gregory Massey, 30, forced two adult victims to engage in commercial sex. Massey and Hart advertised the victims for commercial sex on websites, kept the money the victims made from commercial sex transactions, required the victims to meet a minimum dollar threshold from commercial sex every day, and restricted the victims’ access to food. Massey also tracked the geolocation data on the victims’ phones so that they could not leave his control and used violence to accomplish the scheme. After Massey was arrested in state court, Hart continued the conspiracy by carrying out Massey’s demands via jail calls. Specifically, Massey told Hart to fire off a few rounds of a firearm to scare a victim into compliance.
Hart was sentenced on June 25, 2024 in federal court. Judge Wendy Vitter sentenced Hart to nine years imprisonment, followed by fifteen years of supervised release. She also agreed to pay $21,600 in restitution. As a result of her plea, Hart must also participate in the sex offender registration and notification program.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Louisiana State Police investigated the case.
Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana are prosecuting the case.
Wilmington Blood Gang Member Sentenced to 10 Years After Ditching a Stolen, Loaded Gun on a Daycare PlaygroundRead the Press Release
WILMINGTON, N.C. – A Wilmington man was sentenced to 120 months in federal prison for possession of a stolen, loaded firearm, which was apprehended after he dropped it in the playground of a daycare when he was fleeing from police. On February 21, 2024, Shaquille Gregg, age 29, pled guilty to the charge. The sentence imposed is the statutory maximum for this crime.
“This Blood gang member received the maximum time behind bars after ditching a stolen gun on a daycare playground while he ran to dodge arrest,” said U.S. Attorney Michael Easley. “Officers should be commended for their work apprehending the defendant, and their quick action finding the gun before a toddler could. This case came from our Violent Crime Action Plan (VCAP) partnership with local law enforcement to stop armed Wilmington-based gang members in their tracks.”
According to court documents and other information presented in court, on January 26, 2022, an officer with the Wilmington Police Department conducted a traffic stop on a vehicle in which Gregg was the passenger. Once the vehicle stopped, Gregg fled from the vehicle on foot. After a brief foot chase, officers were able to apprehend Gregg. Officers retraced the path of Gregg’s flight from law enforcement and located a stolen Smith and Wesson pistol in the fenced in playground area of a daycare. Subsequent testing revealed the presence of Gregg’s DNA on the firearm.
In 2014, Gregg, a member of the Double-II Bloods, shot a man in the face and back after he questioned his gang affiliation. When officers arrested Gregg for the shooting, they located him at his residence asleep with his girlfriend’s 2-year-old daughter and a loaded, 9mm pistol under his pillow. In 2015, Gregg was convicted of assault with a deadly weapon with intent to kill inflicting serious injury and possession of a firearm by a convicted felon for this conduct in New Hanover County Superior Court and was sentenced to 75 – 102 months in prison.
Gregg also has prior convictions for possession with intent to sell and deliver heroin, carrying a concealed gun, and two federal convictions for distribution of a quantity of heroin. Gregg has been validated as a member of the Bloods street gang by the North Carolina Department of Corrections.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The FBI’s Coastal Carolina Safe Street’s Gang Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wilmington Police Department, and the New Hanover County Sheriff’s Office investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case. Van Trigt is a prosecutor with the New Hanover County District Attorney’s Office assigned to the United States Attorney’s Office to prosecute federal violent crimes and other criminal matters. This has been made possible by a grant funded by New Hanover County.
The conviction is a result of the ongoing VCAP initiative which is collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
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. 7:22-cr-00123BO-001.
West Monroe Man Charged in Federal Court in Connection with the Department of Justice’s 2024 National Health Care Fraud Enforcement ActionRead the Press Release
MONROE, La. – United States Attorney Brandon B. Brown announced that criminal charges have been filed against a West Monroe man in connection with an alleged scheme to defraud Medicare. The charges filed in federal court are part of the Department of Justice’s 2024 National Health Care Fraud Enforcement Action.
Michael L. Riggins, 61, of West Monroe, Louisiana, was charged by indictment with conspiracy to commit health care fraud and health care fraud for his role in a durable medical equipment (“DME”) scheme. As alleged in the indictment, Riggins was the owner of Bluewater Healthcare (“Bluewater”), a DME supply company in West Monroe, Louisiana. It is alleged that from 2018 to 2023, Riggins paid for doctors’ orders for pneumatic compression devices (“PCDs”), a type of DME, and tricked doctors into signing DME orders and certificates of medical necessity in order to bill for the expensive and medically unnecessary DME. In total, Riggins submitted over $3.8 million in fraudulent claims to Medicare for supplying PCDs and was reimbursed over $1.8 million.
These charges are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 147 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.5 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $150 million in cash, luxury vehicles, gold, and other assets.
The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of New Jersey, Eastern District of New York, Southern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Middle District of Tennessee, Northern District of Texas, Southern District of Texas, Eastern District of Tennessee, Eastern District of Virginia, and Southern District of West Virginia; and the State Attorney Generals’ Offices for California, New York, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The Western District of Louisiana in particular, worked with the Department’s Criminal Division and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) to investigate and prosecute the cases filed during the enforcement period.
The case is being prosecuted by Assistant U.S. Attorney Brian Flanagan of the U.S. Attorney’s Office for the Western District of Louisiana and Trial Attorneys Samantha Usher and Kelly Z. Walters of the Gulf Coast Strike Force.
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Washington felon sentenced for illegally purchasing ammunition in VirginiaRead the Press Release
ALEXANDRIA, Va. – A Washington man was sentenced yesterday to a year and six months in prison for illegally acquiring ammunition after a previous felony firearm conviction.
According to court documents, April 13, 2023, Kiyel Tyquello Kearney, aka “KhiGlock,” and “Glock,” 20, was convicted in the Circuit Court of Prince George’s County, Maryland, of unlawful possession of a loaded handgun in a vehicle. Approximately three weeks following his Maryland conviction, on May 3, 2023, Kearney traveled to Arlington and purchased ammunition from a federally licensed gun store. As a previously convicted felon, Kearney could not legally possess firearms or ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Washington Field Division, made the announcement after sentencing by U.S. District Judge Patricia Tolliver Giles.
Assistant U.S. Attorney Daniel K. Amzallag prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-4.
U.S. Attorney’s Office Announces Two Indictments of Healthcare Fraud Related ChargesRead the Press Release
LEXINGTON, Ky. – U.S. Attorney Carlton S. Shier, IV has announced criminal charges against two separate defendants, in connection with alleged schemes to defraud Medicare and Medicaid, and to fraudulently prescribe controlled substances. The charges filed in federal court are part of the Justice Department’s 2024 National Health Care Fraud Enforcement Action. The charges stem from one scheme to cause claims for prescription drugs to be submitted, despite knowing the drugs were never dispensed to pharmacy customers, and another scheme to use the name and DEA registration number of another provider, without that provider’s knowledge, in order to issue prescriptions.
“When government healthcare programs are fraudulently deprived of critical resources and powerful drugs are illegally prescribed, it creates real damage,” said United States Attorney Shier. “It steals taxpayer money, and it enables the devastating cycle of drug abuse in fester in our communities. Simply having a professional license cannot be a shield from the consequences of this type of criminal conduct.”
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
The charges announced today by U.S Attorney Shier are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 147 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.5 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the government, in connection with the enforcement action, seized over $150 million in cash, luxury vehicles, gold, and other assets.
The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of New Jersey, Eastern District of New York, Southern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Middle District of Tennessee, Northern District of Texas, Southern District of Texas, Eastern District of Tennessee, Eastern District of Virginia, and Southern District of West Virginia; and the State Attorney Generals’ Offices for California, New York, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department’s website.
The Eastern District of Kentucky worked with the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: the DEA; the Department of Health and Human Services Office of Inspector General (HHS-OIG); the Kentucky Cabinet for Health and Family Services, Office of Inspector General, Drug Enforcement and Professional Practices Branch; the Kentucky Board of Pharmacy; and the IRS.
The following individuals have been charged in the Eastern District of Kentucky:
Stephanie Collins, 57, of Corbin, Kentucky, was charged by information with health care fraud in connection with a scheme to bill Medicare and Medicaid for prescription drugs that were never dispensed by her pharmacy. As alleged, between January 2014 and June 2020, Collins, the owner of Stephanie’s Down Home Pharmacy, knowingly and willfully caused claims for prescription drugs to be submitted to those health care programs despite knowing that the drugs at issue were never dispensed to pharmacy customers, and obtained approximately $730,000 as a result of the scheme. The case is being prosecuted by Assistant U.S. Attorney Andy Smith.
Don V. Bryson, 69, of Oil Springs, Kentucky, was charged by information with a conspiracy to unlawfully distribute controlled substances by using the name and DEA registration number of another physician. As alleged, Bryson was a physician who had surrendered his medical license following a Kentucky Board of Medical Licensure investigation into his prescribing practices. Bryson continued to work as a “medical consultant” at a clinic in Paintsville, Kentucky owned by a co-conspirator, which utilized locum tenens providers to issue controlled substance prescriptions. In September 2021, Bryson agreed with the clinic owner to use the name and DEA registration number of a locum tenens provider no longer affiliated with the clinic, without that provider’s knowledge, in order to issue approximately 79 hydrocodone prescriptions, totaling approximately 6,915 hydrocodone pills. The case is being prosecuted by Assistant U.S. Attorney Andy Smith.
A complaint, information, or 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 Breon Peace Announces New Leadership for Criminal Division and Long Island DivisionRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today the appointment of Alixandra E. Smith as the Office’s Chief of the Criminal Division as well as John J. Durham as Chief of the Long Island Division and Chief of the Criminal Section of the Long Island Division. Additionally, in September 2023, Richard K. Hayes was named the Office’s Chief of the Civil Division.
“I make these announcements with tremendous pride and excitement. Alix, John and Rich are brilliant legal minds with vast expertise in serving the Office, through both impressive casework and leadership positions. I have the utmost confidence they will continue to do what they do best – inspire and lead their teams in the pursuit of equal justice,” stated U.S. Attorney Peace.
Alixandra E. Smith
Ms. Smith joined the Office in 2012 and has served in the General Crimes, Organized Crime and Gangs, and Business and Securities Fraud (BSF) Sections, and as a Deputy Chief of BSF, Chief of BSF and a Criminal Division Deputy Chief. Among other roles, Ms. Smith is Vice Chair of the Criminal Division Hiring Committee, Chair of the Office’s e-Litigation Committee and co-teaches the EDNY Prosecution Externship at New York University Law School. Ms. Smith is a graduate of Harvard College and Harvard Law School. Prior to joining the Office, she worked as an associate at Cravath, Swaine & Moore LLP and at Jenner & Block LLP, and clerked for the Honorable Faith Hochberg, United States District Court for the District of New Jersey, as well as the Honorable Julio Fuentes, United States Court of Appeals for the Third Circuit.
During her time in the Office, Alix has investigated and prosecuted significant white-collar cases. She co-led the investigation and prosecution of United States v. Shkreli and Greebel, in which the defendants were charged with orchestrating four interrelated schemes to defraud investors in two hedge funds of more than $7 million, to steal more than $10 million from a public company and to manipulate the price and trading volume of the public company’s stock. Both defendants were convicted following back-to-back six-week and 11-week trials in 2017, and Alix successfully argued both appeals. In several cases related to United States v. Odebrecht and United States v. Braskem, Alix led the Office’s team which, along with the Department of Justice’s Fraud Section (Fraud Section), prosecuted two Brazilian-based petrochemical companies that paid almost a billion dollars in bribes to government officials in at least 12 countries in order to win business. Both companies pleaded guilty to conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and agreed to pay a combined penalty of at least $3.2 billion to resolve charges in the United States, Brazil and Switzerland. A number of individuals were also convicted for their roles in the bribery scheme, including Braskem’s Chief Executive Officer. In United States v. AmerisourceBergen, Alix led the criminal prosecution of the second-largest drug distributor in the United States, which ultimately paid a combined total of $885 million to resolve civil and criminal liability stemming from its distribution, over a period of ten years, of millions of syringes of oncology drugs to immunocompromised cancer patients nationwide that were prepared under insanitary conditions and contaminated. The criminal case was resolved with a $260 million penalty, and a subsidiary of the company pleaded guilty to a criminal violation of the Federal Food, Drug and Cosmetics Act. And in United States v. Goldman Sachs Group, Inc. and related cases, which were prosecuted in conjunction with the Fraud Section and the Department of Justice’s Money Laundering and Asset Recovery Section, Alix led the Office’s team in the prosecution of investment bank Goldman Sachs (Goldman), its subsidiary and individuals, who were charged for their roles in a scheme to pay $1.6 billion in bribes to government officials and launder billions of dollars in criminal proceeds. The case was resolved when Goldman’s subsidiary pled guilty to a FCPA violation, Goldman entered a DPA and paid $2.9 billion in criminal penalties as part of a global resolution with eight different foreign and domestic authorities, and a Goldman banker was convicted of FCPA and money laundering charges after a nine-week trial.
In addition, Ms. Smith has investigated and prosecuted important violent crimes cases, including United States v. Rivera et al, in which the leader and co-founder of the TF Mafia gang were each convicted of, among other crimes, racketeering, murder, drug trafficking, sex trafficking, sex trafficking of children and firearms offenses following an 11-week trial; and United States v. Lopez. et al., in which four MS-13 members were convicted of murdering a fellow MS-13 gang member whom they suspected of being a cooperating witness.
Among other awards, Ms. Smith is the recipient of the Attorney General’s John Marshall Award for the Trial of Litigation, the Harry L. Stimson Medal, the Assistant Attorney General’s (AAG) Award for Exceptional Service, the AAG Award for Distinguished Service and the EOUSA Director’s Award.
John J. Durham
Mr. Durham joined the Office in October 2005 and has served in the General Crimes Section and Long Island Criminal Section. Mr. Durham has been appointed to several leadership positions in the Office and the Department of Justice, including Deputy Chief for the Long Island Criminal Section, the Office’s Capital Case Coordinator, the Attorney General’s Review Committee on Capital Cases and Chair of the MS-13 Subcommittee of the Attorney General’s Transnational Organized Crime Task Force. In August 2019, Mr. Durham was appointed to serve as the Director of Joint Task Force Vulcan (JTFV), a Department of Justice initiative to combat La Mara Salvatrucha (MS-13), where he spearheaded indictments against MS-13’s highest-ranking international leaders. He graduated from the College of the Holy Cross in 1998 and from the University of Connecticut School of Law in 2001. Mr. Durham clerked for United States District Judge Stephen C. Robinson in the Southern District of New York.
During his time in the Office, Mr. Durham has investigated, prosecuted and supervised a broad range of federal offenses, including racketeering, murders, terrorism, civil rights, obstruction of justice, armed robberies, narcotics trafficking, money laundering, firearms and public corruption. Most significantly, he has directed the Office’s efforts to dismantle the operations of MS-13 in the EDNY, as well as nationally and internationally. In a series of EDNY indictments, he has led teams of AUSAs and investigators that have arrested and convicted hundreds of MS-13 leaders, members and associates, including charges related to more than 65 murders committed in this district between January 2008 and the present. United States v. Amaya-Sanchez, et al.; United States v. Acosta, et al.; United States v. Cerna, et al.; United States v. Alvarenga et al.; and United States v. Prado et al. As the Director of JTFV, Mr. Durham led a team of AUSAs and law enforcement officers from across the country and secured significant indictments against MS-13’s command and control structure across the United States, Central America and Mexico, including the first use of national security charges against MS-13 leaders. United States v. Henriquez, et al. (EDNY); United States v. Arevalo-Chavez, et al. (EDNY); United States v. Carias, et al. (SDNY); and United States v. Melgar-Diaz, et al. (EDVA). In addition to his work combatting MS-13, Mr. Durham has prosecuted defendants who attempted to travel to Yemen for the purpose of joining al-Qaeda in the Arabian Peninsula (AQAP) and fighting jihad against United States allies (United States v. Kaliebe/Zea), and members of numerous other violent criminal organizations, including the Bloods, 18th Street gang, Crips, Salvadorans With Pride and violent narcotics trafficking and robbery crews based in the district. Finally, in addition to his violent crime work, Mr. Durham has prosecuted a number of significant and sensitive public corruption and civil rights matters, including the former Chief of Department for the Suffolk County Police Department (United States v. Burke, et al.), the former Suffolk County District Attorney and former Chief of Investigations and Chief of the Government Corruption Bureau for the Suffolk County District Attorney’s Office (United States v. Spota and McPartland), a then-sitting Nassau County Legislator (United States v. Corbin), a New York City Police Department sergeant (United States v. Green) and a Food and Drug Administration official (United States v. Oliver, et al.).
Among other awards, Mr. Durham is the recipient of the Charles E. Rose Award; Henry L. Stimson Medal; EOUSA Director’s Award for Superior Performance; National Association of Former United States Attorneys, Exceptional Service Award; and several Federal Law Enforcement Foundation Awards.
Richard K. Hayes
Mr. Hayes joined in the Office’s Civil Division in 1991, and since then has litigated nearly every type of case. He had been a Deputy Chief of the Civil Division since 2012 with overall supervisory responsibility for the Division’s Affirmative Civil Enforcement, Civil Rights, Drug and Listed Chemical, Environmental and Health Care Fraud practices. Prior to serving as Deputy Chief, Mr. Hayes was the Office’s Chief of Affirmative Civil Enforcement. Mr. Hayes graduated from Fordham University School of Law, where he was on the Moot Court Editorial Board and a member of the Fordham Urban Law Journal. He received his B.A. in History and Political Science summa cum laude from Fordham University and was inducted into Phi Beta Kappa.
Mr. Hayes has handled some of the largest matters with the Office and the Department of Justice stemming from the Financial Crisis. These included the 2012 $25 billion National Mortgage Settlement, which resolved federal and state claims against the nation’s five largest mortgage servicers. In addition to recovering damages incurred by the Federal Housing Administration, the settlement provided for billions of dollars in homeowner relief nationwide. Mr. Hayes also originated and led the Office’s Residential Mortgage-Backed Securities (RMBS) practice, a component of the Department of Justice’s RMBS Working Group. This entailed building teams that at one point comprised more than sixty AUSAs, other attorneys and professional staff which investigated banks that underwrote hundreds of billions of dollars in failed RMBS. Ultimately, six banks and several individuals paid more than $11 billion in penalties and provided $6.6 billion in consumer relief to resolve claims under the Financial Institutions Reform Recovery and Enforcement Act. All told, the Office has received over $20 billion in credit for financial crisis era cases that Mr. Hayes handled and supervised.
In addition to his financial fraud work, Mr. Hayes has obtained monetary and injunctive relief in a wide range of matters. For example, in United States v. Staten Island University Hospital, he led an investigation of multiple Medicare and Medicaid billing schemes and negotiated an $89 million global settlement of civil fraud claims. In United States v. Lawrence Aviation Industries, Mr. Hayes and his team members obtained a $48 million judgment after trial in a Superfund cost recovery and penalty case. And, in United States v. Local 14 of the International Union of Operating Engineers, he filed and resolved civil RICO claims, securing appointment of a court-ordered monitorship over the mob-infiltrated union.
Mr. Hayes is a two-time recipient of the Attorney General’s Award for Distinguished Service, a two-time recipient of the Director’s Award for Superior Performance, and a recipient of the Henry L. Stimson Medal for outstanding performance as an Assistant United States Attorney.
U.S. Army Research Biologist Pleads Guilty to Engaging in A Bribery SchemeRead the Press Release
Baltimore, Maryland – Jason Edmonds, age 45 of North East, Maryland pleaded guilty today to a federal charge of bribery relating to a bribery scheme at the Aberdeen Proving Ground.
The guilty plea was announced by Erek L. Barron U.S. Attorney for the District of Maryland, Special Agent in Charge William DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, and Special Agent in Charge L. Scott Moreland of the Army Criminal Investigation Division.
According to the guilty plea, Edmonds was employed by the United States Army as a Research Biologist at the U.S. Army Combat Capabilities Development Command (“CCDC”) Chemical Biological Center (“CB Center”) located at the Aberdeen Proving Ground (“APG”). The CCDC CB Center was the nation’s principal research and development center for non-medical chemical and biological weapons defense. The CB Center developed technology in the areas of detection, protection, and decontamination.
From 2012 to 2019, Edmonds accepted cash and other financial benefits from John Conigliaro, the owner and CEO of EISCO, Inc. in exchange for favorable action on CB Center contracts. For example, in July 2013, Edmonds directed a $300,000 CB Center project to EISCO. Three months later, in October 2013, Conigliaro gave Edmonds $40,000 in cash so that Edmonds could purchase two rental real estate properties. Once Edmonds purchased the rental properties, Conigliaro paid for thousands of dollars of renovations to the rental properties.
Relative to the cash exchange, Edmonds and Conigliaro executed a “Promissory Note,” which was subsequently amended by Edmonds on June 14, 2014. In the amended “Promissory Note,” Edmonds credited himself $18,100 against the $40,000 in cash for past projects that Edmonds had directed to EISCO at the CB Center. Edmonds also wrote that Conigliaro would provide him an additional $25,000 in exchange for future projects that Edmonds would direct to EISCO.
Between December 2016 and August 2017, Edmonds directed a series of government projects to EISCO in exchange for a stream of benefits from Conigliaro, including a kitchen remodel at Edmonds’s personal residence, the purchase of a granite countertop, a kitchen sink, and new siding to his home.
In June 2020, after federal agents attempted to interview Edmonds and Conigliaro, the co-conspirators met approximately three times to discuss the investigation. During those meetings, Edmonds proposed that he and Conigliaro inform federal investigators that Edmonds had repaid Conigliaro with gold and baseball cards, knowing that it was false.
Edmonds faces a maximum of five years in federal prison for conspiring to commit bribery. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Barron commended the FBI, the Department of Defense Office of Inspector General, and the Army Criminal Investigation Division for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Bijon A. Mostoufi and Michael Cunningham, who are prosecuting the federal case, and Paralegal Specialist Joanna Huber.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Trio SentencedRead the Press Release
FORT WAYNE –Three individuals were sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to access device fraud, announced United States Attorney Clifford D. Johnson.
Giovanni Mazzone, 34, of Gilbert, AZ was sentenced to time served and one year of supervised release.
Lucian Neagu, 32, of Fullerton, CA was sentenced to time served and one year of supervised release.
Julian Dumbrava, 36, of Baytown, TX was sentenced to time served and one year of supervised release.
According to documents in the case, in October 2023, the above defendants possessed devices that were installed on ATMs for the purpose of stealing ATM card information.
In general, shimming devices and skimming devices are designed to obtain information from the magstripe on the back of, or the microchip implanted in, credit and debit cards. Both devices are most often accompanied by cameras that are installed on the ATM to capture a customer’s PIN number. These devices are usually placed onto or within the ATM for a limited period of time and then removed. The fraudster then creates fraudulent credit and debit cards using the PIN number and captured data which are then used to illegally obtain goods, services, and currency. TIP: When you use your card at an ATM, gas pump, or other payment keypad, it is a good practice to be mindful of anything unusual with the machine and to cover your hand as you input your PIN number.
This case was investigated by the Federal Bureau of Investigation in coordination with the Indiana State Police and the Huntington Police Department. The case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Trillium Capital Manager Pleads Guilty to Securities Fraud Scheme Involving Getty ImagesRead the Press Release
BOSTON – A Mashpee man pleaded guilty yesterday in federal court in Boston to his role in a scheme to artificially inflate the trading price of Getty Images Holdings, Inc. and attempting to cover up the scheme.
Robert Scott Murray, 60, pleaded guilty to one count of securities fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for October 3, 2024.
Getty Images Holdings, Inc. (Getty) is a visual media company and supplier of images, videos and music, headquartered in Seattle. Getty’s stock is publicly traded on the New York Stock Exchange under the ticker symbol GETY. Murray was a long-time investor who previously served as the Chief Executive Officer of multiple public companies, including Stream Global Services and 3Com. In April 2023 Murray owned approximately 300,000 GETY shares. Thereafter, Murray issued press releases and sent emails in the name of Trillium Capital LLC – a “venture investment company” located in Massachusetts of which Murray was the sole owner and manager – urging that Getty add Murray to its board of directors. Murray’s efforts to join Getty’s board of directors failed.
Murray proceeded to make false and misleading statements, including through press releases and in media interviews, with the purpose of artificially inflating the GETY trading price so that Murray could sell the GETY shares he owned at the artificially inflated price. On Friday, April 21, 2023, GETY shares closed at a trading price of $5.06 per share. On Monday, April 24, 2023, prior to the market opening, Murray caused the publication of a press release in which Trillium Capital made a proposal to acquire Getty for “$10 per share.” When the market opened, GETY shares traded at $7.88 per share, nearly 56 percent above the prior closing price. Murray then sold all the GETY shares he owned within less than one hour for approximately $1,486,467. Murray’s friend, who Murray had previously instructed to buy GETY shares, also sold shares that same morning at Murray’s direction for approximately $558,328.
On or about Dec. 6, 2023, Murray instructed his friend to delete all their text messages and to mislead law enforcement agents who had approached her by falsely telling them that they had not exchanged text messages. Murray instructed the friend that text messages are “like virginity, once you delete your virginity you ain’t getting it back.” When approached by law enforcement agents in February 2024, Murray falsely denied telling his friend to buy Getty shares.
The charge of securities fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Securities and Exchange Commission filed a civil complaint against Murray alleging violations of the securities laws.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement. The Securities and Exchange Commission provided valuable assistance with the investigation. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Three More Paycheck Protection Program Defendants Sentenced to PrisonRead the Press Release
ATLANTA – Teldrin Foster, John Gaines, and Carla Jackson have been sentenced for their roles in a scheme to steal Paycheck Protection Program (“PPP”) funds during the COVID-19 pandemic. To date, a total of 23 individuals have been convicted and sentenced in connection with the fraudulent scheme.
“Foster, Gaines, and Jackson, together with 20 other defendants who have already been sentenced for their participation in this criminal scheme, took advantage of a relief program designed to keep small businesses afloat during the COVID-19 pandemic,” said U.S. Attorney Ryan K Buchanan. “These defendants have been held accountable for depriving this program of funds desperately needed by some of the most vulnerable in our society. And their sentences send a clear message that fraud against the government will not be tolerated.”
“COVID-19 disaster relief loans were issued by the government to help businesses struggling to survive during a pandemic, not to use for personal pleasures like these defendants used them for,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to hold accountable those who abused taxpayer dollars and diverted them from citizens who desperately needed them.”
“Those who took advantage of the COVID-19 pandemic relief programs are realizing from these sentences that even after four years since Congress enacted them, they are still being held accountable,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents will continue investigating and forwarding for prosecution to the U.S. Attorney’s Office those who committed fraud against the government.”
According to U.S. Attorney Buchanan, the second superseding indictment, and other information presented in court: From April 2020 through August 2020, Foster worked with co-defendant Darrell Thomas and others to fraudulently obtain at least 14 fraudulent loans. Each of the 14 businesses obtained a PPP loan between $700,000 and $850,000, for a total of over $11 million. The loan applications certified that: each applicant’s business was in operation on February 15, 2020, and had employees for whom it paid salaries and payroll taxes or paid independent contractors; the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and the information provided in the application and in all supporting documents and forms was true and accurate in all material respects.
The PPP loan applications reported that each business maintained between 59 and 69 employees and generated approximately $295,000 to $342,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report quarterly payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses. In fact, none of the businesses had employees or incurred payroll expenses. The Form 941s, bank statements, and W2 payroll spreadsheets were all fabricated. Some of the supporting documents the businesses submitted were substantively identical, including the Form 941s, bank statements, and W2 payroll spreadsheets – where the reported figures were identical but purported employee names had been changed.
Gaines worked with co-defendant Thomas and others to obtain a fraudulent PPP loan in the amount of $806,710, for a Georgia business called Gaines Reservation and Travel. But that business had no employees or payroll expenses. To support the fraudulent PPP loan application, Gaines provided Thomas with fabricated bank statements for Gaines Reservation and Travel that reflected fake payroll deductions. After the PPP loan was approved, the funds were deposited into an account controlled by Gaines. Gaines later directed payments to Thomas that were disguised as payments for rent and payroll, which are approved expenses under the PPP.
Jackson laundered some of the proceeds of Gaines Reservation and Travel’s PPP loan, receiving over $300,000 of the stolen PPP funds into her business’s bank account. The funds were transferred via a check in the amount of $155,252.50 and a wire transfer in the amount of $179,985.72. The check falsely claimed that the funds were provided to Jackson as consulting fees and daily business management, and the wire transfer documentation falsely stated that the funds were for payroll services. In actuality, Jackson was assisting Gaines in concealing the stolen PPP funds from detection and seizure by federal law enforcement.
U.S. District Judge Jean-Paul “J.P.” Boulee sentenced the defendants as follows:
- Teldrin Foster, 42, of Atlanta, Georgia, was sentenced to 10 years and one month in prison, to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $9,606,627. On February 15, 2024, he was convicted by a jury of six counts of conspiracy to commit bank fraud and wire fraud, eight counts of conspiracy to commit wire fraud, six counts of bank fraud, fourteen counts of wire fraud, six counts of making false statements to a federally insured financial institution, and one count of money laundering.
- John Gaines, 59, of Marietta, Georgia, was sentenced to five years and three months in prison, to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $806,710. On January 31, 2024, he pleaded guilty to one count of money laundering.
- Carla Jackson, 56, of Tucker, Georgia, was sentenced to three years in prison, to be followed by two years of supervised release. She was also ordered to pay restitution in the amount of $335,238. On February 15, 2024, she was convicted by a jury of two counts of money laundering.
To date, a total of 24 individuals have been charged in connection with the fraudulent scheme. Twenty other individuals have pleaded guilty and been sentenced, while one defendant’s charges remain pending.
This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys Tal Chaiken, Samir Kaushal, Nathan Kitchens, and Norman Barnett of the Northern District of Georgia and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Three Men Facing Federal Charges in Connection to Seizure of Methamphetamine and Thousands of Fentanyl PillsRead the Press Release
Spokane, Washington- Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that three men are facing federal drug charges. Osvaldo Guadalupe Soto-Orduno, Jose Roman Lizarraga Gerardo, and Jose Efrain Gonzalez Rodriguez were charged by criminal complaint with Conspiracy to Distribute 400 Grams or More of a Mixture Containing Fentanyl and 500 Grams or More of a Mixture Containing Methamphetamine.
According to the complaint, on June 26, 2024, DEA investigators identified a Toyota Corolla, believed to be used to transport drugs, travel to a house in Spokane. Investigators observed Lizarraga and Soto get out of the Toyota and enter the home. Soto was then allegedly observed carrying a black bag into the house. A short time later, investigators observed Lizarraga and Soto exit the house with the bag and leave in the Toyota.
Law enforcement officers conducted a traffic stop of the Toyota. According to the complaint, Soto consented to a search of the vehicle. During the search, investigators located several large bundles of U.S. currency packaged in a manner which officers recognized as consistent with large scale drug trafficking.
The complaint further alleges that investigators later observed Gonzalez-Rodriguez and another man exit the residence carrying a black backpack and depart in an Acura sedan. A vehicle stop was conducted on the Acura. According to the complaint, investigators conducted a search of the Acura and located approximately 7,000 pills presumed to be fentanyl as well as two pounds of presumed methamphetamine inside the vehicle.
According to the complaint, investigators conducted a search of the residence and located 61,000 pills believed to be fentanyl, more than three pounds of methamphetamine, more than a pound of cocaine, a small quantity of heroin, and four firearms.
“The fentanyl epidemic is taking lives at an unprecedented pace,” stated U.S. Attorney Vanessa Waldref. “My office is committed to working with our with our law enforcement partners to remove large quantities of deadly drugs from the streets and to disrupt drug networks.”
This case is being investigated by the Drug Enforcement Administration with assistance from the Spokane Regional Anti-Violence Enforcement and Narcotics (RAVEN) task force and the United States Border Patrol. This case is being prosecuted by Assistant United States Attorney Timothy J. Ohms.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.