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17 June 2024
New Hanover County Social Worker Sentenced to Prison for Conspiring to Defraud MedicaidRead the Press Release
RALEIGH, N.C. – Felicia Moore Jones, 52, was sentenced to 14 months in federal prison followed by three years of supervised release for conspiring to defraud North Carolina Medicaid of more than $400,000. Jones was also ordered to pay $400,000 in restitution.
“This defendant used her government position to steal from a government program intended to help the needy,” said U.S. Attorney Michael Easley. “Now, she will be forced to repay what she took and spend the next 14 months behind bars.”
Jones was a social worker in New Hanover County who conspired with a licensed mental health counselor, Lakia Washington, to defraud North Carolina Medicaid (“Medicaid”). Jones used her government employment to obtain personally identifying information (PII) of New Hanover County residents enrolled in Medicaid, including their Medicaid ID numbers. In exchange for an agreed-upon fee per beneficiary, Jones then provided the PII to Washington, knowing it would be used to generate fraudulent claims for services never rendered. Investigators have attributed over $400,000 of Washington’s fraudulent Medicaid billing to the beneficiary PII Jones provided to Washington. Washington pled guilty late last year and is awaiting sentencing.
“When people defraud the Medicaid program, they are defrauding North Carolina’s taxpayers,” said Attorney General Josh Stein. “I will continue to do everything I can to protect North Carolinians’ investment and hold perpetrators accountable.”
“HHS-OIG, along with our law enforcement partners, is committed to holding individuals responsible for failing to safeguard confidential patient information,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Ms. Jones was a social worker who violated the trust of her duties by accessing the personal and health data of Medicaid recipients and using the confidential information for personal gain.”
The Center for Medicaid Services, within the federal Department of Health and Human Services, is responsible for overseeing the Medicaid program in North Carolina, which has been administered by the North Carolina Department of Health and Human Services since 1978. Medicaid providers are assigned a National Provider Identifier, which they use to submit claims for reimbursement for services rendered to Medicaid beneficiaries.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. District Judge Terrence W. Boyle announced the sentence. The U.S. Department of Health and Human Services, Office of the Inspector General, led the investigation with the assistance North Carolina Medicaid Investigations Division, and Assistant U.S. Attorney David G. Beraka prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00377-BO.
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Melbourne Man Sentenced to 12 Years for Distributing MethamphetamineRead the Press Release
Orlando, Florida – Senior U.S. District Judge Roy B. Dalton, Jr. has sentenced Lucious Denard Scott, Jr. (32, Melbourne) to 12 years in federal prison for distribution of methamphetamine. Scott entered a guilty plea on November 9, 2023.
According to court documents, a confidential source conducted four controlled purchases of drugs from Scott. In total, Scott distributed over 13 grams of fentanyl and approximately 1,428 grams of pure methamphetamine to the confidential source. A search warrant was then executed at Scott’s home where agents located fentanyl, a large quantity of methamphetamine, two loaded firearms, and additional ammunition in a shed behind the residence.
This case was investigated by the Drug Enforcement Administration and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Megan Testerman.
Man Indicted on Fentanyl and Firearm Charges Committed While on Release for Attempting to Smuggle Firearm Magazines into MexicoRead the Press Release
PHOENIX, Ariz. – Edwin Alexey Gamboa, 20, of Phoenix, was indicted last week by a federal grand jury in Phoenix for: Illegal Receipt of a Firearm by a Person Under Indictment; Possession with Intent to Distribute Fentanyl; and Possession of a Firearm in Furtherance of a Drug Trafficking Offense.
As alleged in the complaint and indictment, on the morning of June 2, 2024, officers from the Phoenix Police Department responded to a report of a vehicle partially blocking a city street. The officers observed a sleeping Gamboa and two firearms in the center console, and subsequently found approximately 409 counterfeit oxycodone tablets, which the Phoenix Crime Lab positively identified as fentanyl. Officers also found almost $2,000 in cash in Gamboa’s pocket. One of the firearms found in the vehicle, a Glock, 19X, 9mm pistol, had a machine gun conversion device affixed to it which, when test-fired, operated as a machinegun.
The indictment further alleges that Gamboa was on pretrial release for an earlier indictment returned by a federal grand jury in Tucson, in which Gamboa was charged with Smuggling Goods from the United States. As alleged in the complaint and indictment in that case, on February 4, 2024, Gamboa attempted to smuggle one empty Glock handgun magazine and 10 empty AK-47 style rifle magazines out of the United States and into Mexico via the Lukeville Port of Entry.
Convictions for the offenses alleged in the indictments carry the following penalties and fines:
Illegal Receipt of a Firearm by a Person Under Indictment carries a maximum penalty of up to five years in prison, a fine of $250,000, or both.
Possession with Intent to Distribute Fentanyl carries a punishment of between five to 40 years in prison, a fine of $5,000,000, or both.
Possession of a Firearm in Furtherance of a Drug Trafficking Offense carries a punishment of between five years to life in prison, to be served consecutively to any other sentence, a fine of $250,000, or both.
Smuggling Goods from the United States carries a maximum penalty of up to 10 years in prison, a fine of $250,000, or both.
An indictment and complaint are simply methods by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
In the Phoenix matter, the Phoenix Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation, and Assistant U.S. Attorney Addison Owen is handling the prosecution. In the Tucson matter, Homeland Security Investigations and U.S. Customs and Border Protection’s Office of Field Operations conducted the investigation, and Assistant U.S. Attorney Sarah Houston is handling the prosecution.
gamboa-_indictment.pdf
CASE NUMBERS: CR-24-0999-PHX-DWL
CR-24-0922-TUC-RCCRELEASE NUMBER: 2024-076_Gamboa
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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.Madera Pharmacist Pleads Guilty to Trafficking Hundreds of Thousands of Opiate PillsRead the Press Release
FRESNO, Calif. — Fresno residents Ifeanyi Vincent Ntukogu, 49, and Kelo White, 43, pleaded guilty today to conspiring to distribute and distributing oxycodone and hydrocodone, U.S. Attorney Phillip A. Talbert announced.
According to court records, from December 2014 through November 2018, in Madera and Fresno, Ntukogu, a pharmacist, dispensed over 200,000 oxycodone and hydrocodone pills based on prescriptions delivered to him by White and co-defendant Donald Ray Pierre, 55, of Fresno, that they knew were forged and fraudulent. Ntukogu reviewed each prescription and rejected the ones that he believed regulators may deem suspicious. For example, Ntukogu rejected prescriptions that were written by certain doctors or that were written for individuals who were having prescriptions filled at other pharmacies. He also alerted White and Pierre when the required language on the prescription pads changed.
Ntukogu dispensed the pills through his New Life Pharmacy in Madera. Upon doing so, he required cash payments from White and Pierre and increased the price that he charged over time.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the California Department of Health Care Services. Assistant U.S. Attorneys Antonio Pataca and Joseph Barton are prosecuting the case.
Ntukogu and White are scheduled to be sentenced on Sept. 23, 2024. They face statutory maximum penalties of 20 years in prison and a $250,000 fine for each of the conspiracy to distribute and distribution convictions. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Pierre, the other defendant in the case, was previously convicted and sentenced to nine years and four months in prison.
Lamor Whitehead, Brooklyn Church Leader, Sentenced to Nine Years in Prison for Fraud, Extortion, and False StatementsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that LAMOR WHITEHEAD was sentenced today by U.S. District Judge Lorna G. Schofield to nine years in prison for wire fraud, attempted wire fraud, attempted extortion, and making false statements to federal law enforcement agents. WHITEHEAD was previously convicted on all charges following a two-week trial.
U.S. Attorney Damian Williams said: “Lamor Whitehead is a con man who stole millions of dollars in a string of financial frauds and even stole from one of his own parishioners. He lied to federal agents, and again to the Court at his trial. Today’s sentence puts an end to Whitehead’s various schemes and reflects this Office’s commitment to bring accountability to those who abuse their positions of trust.”
According to the allegations in the Indictment and the evidence at trial:
WHITEHEAD, who leads a church in Brooklyn, New York, stole from his own parishioners, sought to defraud and extort a businessman, and committed loan fraud. First, WHITEHEAD induced one of his parishioners to invest approximately $90,000 of her retirement savings with him by promising to use the money to help her buy a home. He then spent the money on luxury goods and other personal expenses and, when she demanded to be paid back, he continued to lie to avoid returning the money. Second, WHITEHEAD extorted a businessman for $5,000, then attempted to convince the same businessman to lend him $500,000 and give him a stake in certain real estate transactions in return for favorable actions from the Mayor of New York City, even though WHITEHEAD knew he could not obtain the favors he promised. Third, WHITEHEAD submitted a fraudulent application for a $250,000 business loan, including doctored bank statements that falsely claimed WHITEHEAD had millions of dollars in the bank and hundreds of thousands of dollars in monthly revenue. He submitted similar fraudulent applications to various other financial institutions, stealing millions of dollars in the process. Finally, when speaking with FBI agents who were executing a search warrant outside WHITEHEAD’s mansion in New Jersey, WHITEHEAD falsely claimed that he had no cellphones other than the phone he was carrying when, in fact, WHITEHEAD had and regularly used a second cellphone, which was inside his house at the time.
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In addition to the prison term, WHITEHEAD, 45, of Paramus, New Jersey, was sentenced to three years of supervised release and ordered to pay $85,000 in restitution and forfeit $95,000.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Greenwood, Jane Kim, and Derek Wikstrom are in charge of the prosecution.
Kidnapper of New Hampshire Mother and Child Sentenced to 300 Months in PrisonRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on June 17, 2024, defendant Everett A. Simpson, 46, of St. Johnsbury, Vermont, was sentenced by United States District Judge William K. Sessions III to a term of 300 months’ imprisonment to be followed by a 5-year term of supervised release. Simpson previously was convicted by a jury on April 18, 2023, of two counts of kidnapping and two counts of interstate transportation of a stolen vehicle after a 6-day trial.
According to court documents and testimony, on January 4, 2019, Simpson absconded from the Valley Vista treatment facility in Bradford, Vermont—where he was required to be as a condition of his release from custody for pending charges in the State of Vermont—after being at the facility for less than one day. Then, in the early morning hours of January 5, he stole a commercial van from the driveway of a residence in Newbury, Vermont and drove into New Hampshire. He deserted the van in a parking garage in downtown Manchester, New Hampshire later that morning and then walked to the Mall of New Hampshire. There, in the parking lot, Simpson forced his way into a young woman’s car, shoving her out of the driver’s seat and into the front passenger seat before driving away with her and her four-year-old child in the car. Simpson held the woman and her child against their will, driving from New Hampshire into Vermont, where Simpson attempted to locate his estranged wife. After abandoning the effort to find his wife, Simpson continued the kidnapping and sexually assaulted the woman in her car and at a hotel in White River Junction. Simpson then released her and her child but fled the area in the woman’s stolen car. Simpson was eventually arrested after two high-speed pursuits in Delaware County, Pennsylvania, during the second of which he was driving a third vehicle he had stolen.
United States Attorney Nikolas P. Kerest stated, “The defendant’s crimes were extraordinarily serious – both in their violent and random nature. An across-the-board guilty verdict in April and today’s sentencing closes a dark period in two victims’ lives and hopefully allows their healing process to continue and provides a sense of security to them and others, knowing that the community will be protected from this defendant for many years to come.” United States Attorney Kerest also commended the investigative agencies, including the Federal Bureau of Investigation in Vermont, Pennsylvania, and New Hampshire; the Vermont State Police; the Hartford (Vermont) Police Department; the Manchester (New Hampshire) Police Department, and the Upper Darby Police Department in Pennsylvania, all of whose efforts contributed to bringing Simpson to justice.
Assistant United States Attorneys Matthew Lasher and Paul Van de Graaf represented the United States in the prosecution of Simpson. Simpson represented himself at trial and sentencing, with Steven Barth of the Office of the Federal Public Defender serving as stand-by counsel.
Justice Department secures agreement with Texas county to make election website accessible to people with disabilitiesRead the Press Release
HOUSTON — Colorado County has entered into a settlement agreement which resolves findings it violated Title II of the Americans with Disabilities Act (ADA) by maintaining an election website that discriminates against individuals with vision or manual disabilities, announced U.S. Attorney Alamdar S. Hamdani.
“The right to vote is a right all American citizens exercise, including individuals with visual or manual disabilities,” said Hamdani. “Election websites provide crucial voting information and must be accessible so that voters with disabilities have equal access to information.”
The county’s election website provides essential information about how to vote, such as registration requirements, identification requirements and voting information for people with disabilities. The website also links to other critical information, including details about early voting and voting on election day.
Under the settlement agreement, Colorado County agreed to make all future and existing online election content accessible to people with disabilities. The county also agreed to hire an independent auditor to evaluate the accessibility of their election website’s content, provide notice to visitors and users of the website to solicit comments and requests about any accessibility barriers, designate an employee to coordinate its efforts, revise its procedures and train relevant personnel.
This investigation is part of the Department of Justice’s ADA Voting Initiative, which safeguards the voting rights of individuals with disabilities. To read more about the ADA and how it applies to voting, please visit Voting and Polling Places. This settlement agreement is also part of the Department of Justice’s Tech Equity Initiative to combat disability discrimination that occurs through technology such as websites and mobile apps.
Assistant U.S. Attorney (AUSA) Elizabeth Karpati handled the matter.
Justice Department Secures Agreements with Texas Counties to Ensure Election Website Accessibility for People with DisabilitiesRead the Press Release
The Justice Department announced today that the Civil Rights Division and U.S. Attorneys’ Offices for the Eastern, Northern, Southern and Western Districts of Texas secured settlement agreements with Runnels County, Colorado County, Smith County and Upton County to resolve the department’s findings that the counties violated Title II of the Americans with Disabilities Act (ADA) by maintaining election websites that discriminate against individuals with vision or manual disabilities.
“Voting in the 21st century requires that officials make their websites accessible to people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Discriminatory barriers on election websites can prevent people with disabilities from exercising their right to vote. These agreements should send a message to state and local officials across the country about the importance of ensuring that their election websites are accessible for voters with disabilities so that they can participate equally in our democratic process.”
The election websites for these four Texas counties provide essential information about how to vote, such as registration requirements, identification requirements and voting information for people with disabilities. The websites also link to other critical information, including details about early voting and voting on election day.
Under the settlement agreements, the counties agreed to make all future and existing online election content accessible to people with disabilities. The counties also agreed to hire an independent auditor to evaluate the accessibility of their election websites’ content, adopt new policies and training for relevant personnel, provide notice to visitors and users of the websites to solicit comments and requests about any accessibility barriers and designate an employee to coordinate its efforts.
These four investigations are part of the department’s ADA Voting Initiative, which safeguards the voting rights of individuals with disabilities. To read more about the ADA and how it applies to voting, please visit www.ada.gov/topics/voting/. These settlement agreements also are part of the Civil Rights Division’s Tech Equity Initiative to combat disability discrimination that occurs through technology such as websites and mobile apps.
Justice Department Secures Agreements with Texas Counties to Ensure Election Website Accessibility for People with DisabilitiesRead the Press Release
The Justice Department announced today that the Civil Rights Division and U.S. Attorneys’ Offices for the Eastern, Northern, Southern and Western Districts of Texas secured settlement agreements with Colorado County, Runnels County, Smith County and Upton County to resolve the department’s findings that the counties violated Title II of the Americans with Disabilities Act (ADA) by maintaining election websites that discriminate against individuals with vision or manual disabilities.
“Voting in the 21st century requires that officials make their websites accessible to people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Discriminatory barriers on election websites can prevent people with disabilities from exercising their right to vote. These agreements should send a message to state and local officials across the country about the importance of ensuring that their election websites are accessible for voters with disabilities so that they can participate equally in our democratic process.”
The election websites for these four Texas counties provide essential information about how to vote, such as registration requirements, identification requirements and voting information for people with disabilities. The websites also link to other critical information, including details about early voting and voting on election day.
Under the settlement agreements, the counties agreed to make all future and existing online election content accessible to people with disabilities. The counties also agreed to hire an independent auditor to evaluate the accessibility of their election websites’ content, adopt new policies and training for relevant personnel, provide notice to visitors and users of the websites to solicit comments and requests about any accessibility barriers and designate an employee to coordinate its efforts.
These four investigations are part of the department’s ADA Voting Initiative, which safeguards the voting rights of individuals with disabilities. To read more about the ADA and how it applies to voting, please visit www.ada.gov/topics/voting/. These settlement agreements also are part of the Civil Rights Division’s Tech Equity Initiative to combat disability discrimination that occurs through technology such as websites and mobile apps.
Justice Department Secures Agreements with Smith County to Ensure Election Website Accessibility for People with DisabilitiesRead the Press Release
TYLER, Texas – Smith County has entered into a settlement agreement which resolves findings it violated Title II of the Americans with Disabilities Act (ADA) by maintaining an election website that discriminates against individuals with vision or manual disabilities, announced Eastern District of Texas U.S. Attorney Damien M. Diggs.
“The Eastern District of Texas is committed to ensuring that all eligible voters, including those with disabilities, can access critical election information,” said U.S. Attorney Damien M. Diggs. “By entering into this settlement agreement, Smith County has taken a significant step towards removing barriers and promoting inclusivity on their election websites. This ensures that voters in the Eastern District of Texas with impairments are not disenfranchised and can fully participate in the democratic process."
The county’s election website provides essential information about how to vote, such as registration requirements, identification requirements and voting information for people with disabilities. The website also links to other critical information, including details about early voting and voting on election day.
Under the settlement agreement, Smith County agreed to make all future and existing online election content accessible to people with disabilities. The county also agreed to hire an independent auditor to evaluate the accessibility of their election website’s content, provide notice to visitors and users of the website to solicit comments and requests about any accessibility barriers, designate an employee to coordinate its efforts, revise its procedures and train relevant personnel.
This investigation is part of the Department of Justice’s ADA Voting Initiative, which safeguards the voting rights of individuals with disabilities. To read more about the ADA and how it applies to voting, please visit Voting and Polling Places. This settlement agreement is also part of the Department of Justice’s Tech Equity Initiative to combat disability discrimination that occurs through technology such as websites and mobile apps.
The Eastern District of Texas is committed to vigorously enforcing the ADA. Additional information is available at Civil Rights Division for the Eastern District of Texas.
This case is being handled by Assistant U.S. Attorney Aimee Cooper.
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Justice Department Secures Agreement with Upton County to Make Election Website Accessible to People with DisabilitiesRead the Press Release
AUSTIN, Texas – U.S. Attorney Jaime Esparza for the Western District of Texas announced today that the United States has reached a settlement agreement with Upton County to resolve findings that the county violated Title II of the Americans with Disabilities Act (ADA) by maintaining an election website that is not accessible to individuals with vision or manual disabilities.
The county’s election website provides essential information about how to vote, such as registration requirements, identification requirements, and voting information for people with disabilities. The website also links to other critical information, including details about voting early and on election day.
“The right to vote is a foundation of our democracy and must not be diminished or restricted,” said Esparza. “Election websites provide crucial voting information and should be accessible to voters with disabilities.”
Under the settlement agreement, Upton County agreed to make all future and existing online election content accessible to people with disabilities. The county also agreed to hire an independent auditor to evaluate the accessibility of content on its election website, solicit comments and requests from visitors and users of its website about any accessibility barriers, designate an employee to coordinate its accessibility efforts, revise its accessibility procedures, and train relevant personnel.
This agreement is part of the Department of Justice’s ADA Voting Initiative, which safeguards the voting rights of individuals with disabilities. To read more about the ADA and how it applies to voting, please visit www.ada.gov/topics/voting/. This settlement agreement is also part of the Department of Justice’s Tech Equity Initiative to combat disability discrimination that occurs through technology such as websites and mobile apps.
Assistant U.S. Attorney Liane Noble represented the government on behalf of the Western District of Texas during the resolution process, in coordination with partners in the Civil Rights Division and other U.S. Attorney’s Offices in Texas.
For more information about the ADA, visit www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at https://www.justice.gov/crt/how-file-complaint.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Justice Department Secures Agreement with Staffing Agency to Resolve Claims of Employment DiscriminationRead the Press Release
The Justice Department announced today that it secured a settlement agreement with California staffing agency Selective Personnel Inc. (SPI). The agreement resolves the department’s determination that SPI’s predecessor business entity, South Bay Safety (SBS), violated the Immigration and Nationality Act (INA) by regularly discriminating against non-U.S. citizens when checking their permission to work in the United States.
“Employers cannot demand specific documents from workers because of their citizenship status when checking their permission to work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to protecting workers from discriminatory practices that create unnecessary barriers to employment.”
After conducting an investigation, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) concluded that, between at least September 2020 and at least October 2022, SBS required that non-U.S. citizens present specific types of documentation reflecting their immigration status to prove their permission to work. In contrast, U.S. citizens could present any acceptable document of their choosing. Based on its investigation, IER concluded that SPI was a successor in interest to SBS, and liable for the violations that IER found.
Under the settlement, SPI will pay civil penalties to the United States, train its employees on the INA’s requirements, revise its employment policies and be subject to departmental monitoring.
U.S. citizens, U.S. nationals, lawful permanent residents, those granted asylum, refugees and other non-U.S. citizens with permission to work may legally work in the United States if they can prove their identity and permission to work. Federal law allows all workers to choose which valid, legally acceptable documentation to present to prove their identity and permission to work, regardless of citizenship status, immigration status or national origin. The INA’s anti-discrimination provision prohibits employers from asking for specific or unnecessary documents because of a worker’s citizenship, immigration status or national origin. Employers must allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine and to relate to the worker.
IER is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices and retaliation and intimidation.
Find more information on how employers can avoid discrimination when verifying someone’s permission to work on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected] or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Justice Department Announces Extradition of Indian National Charged in Connection with Foiled Plot to Assassinate U.S. Citizen in New York CityRead the Press Release
An Indian national was extradited to the United States from the Czech Republic to face murder-for-hire charges.
Nikhil Gupta, also known as Nick, 53, an Indian national, was arrested and detained in the Czech Republic on June 30, 2023, and extradited pursuant to the bilateral extradition treaty between the United States and the Czech Republic. Gupta arrived in the United States on June 14 and was presented on the charges today.
“This extradition makes clear that the Justice Department will not tolerate attempts to silence or harm American citizens,” said Attorney General Merrick B. Garland. “Nikhil Gupta will now face justice in an American courtroom for his involvement in an alleged plot, directed by an employee of the Indian government, to target and assassinate a U.S. citizen for his support of the Sikh separatist movement in India. I am grateful to the Department’s agents who foiled this assassination plot and to our Czech partners for their assistance in this arrest and extradition.”
“This murder-for-hire plot — allegedly orchestrated by an Indian government employee to kill a U.S. citizen in New York City — was a brazen attempt to silence a political activist for exercising a quintessential American right: his freedom of speech,” said Deputy Attorney General Lisa Monaco. “The extradition of the defendant is a vital step toward justice, and I am grateful to our Czech partners for their assistance in this matter. We will continue working relentlessly to identify, disrupt, and hold accountable those who seek to harm American citizens here or abroad.”
“This defendant has been extradited for his alleged role in a plot to assassinate a U.S. citizen on American soil,” said Director Christopher Wray of the FBI. “The FBI will not tolerate attempts by foreign nationals, or anyone else for that matter, to repress constitutionally-protected freedoms in the United States. We will continue to work with our partners at home and abroad to protect our citizens and these sacred rights.”
“As alleged, the defendant conspired from India with an Indian government employee to in an unsuccessful assassination plot, right here in New York City, against a U.S. citizen of Indian origin,” said U.S. Attorney Damian Williams for the Southern District of New York. “Today’s extradition makes clear our unwavering resolve to investigate, thwart, and prosecute those who seek to harm and silence U.S. citizens here and elsewhere. We thank our Czech government counterparts for their close cooperation in this extradition.”
“Last year, the DEA uncovered an assassination plot orchestrated by an Indian government employee and Nikhil Gupta, an international narcotics trafficker. Gupta is alleged to have orchestrated a dangerous plot to murder a U.S. citizen on U.S. soil. DEA’s number one priority is always the health and safety of the American people,” said DEA Administrator Anne Milgram. “This extradition is the result of the hard work and commitment of the DEA New York Division’s Drug Enforcement Task Force, which is comprised of DEA, the New York State Police, and the New York City Police Department. This case is also a testament to the partnerships DEA has built with our law enforcement partners around the globe, like the Czech Republic’s National Drug Headquarters, as well as our federal law enforcement partners here at home.”
According to court documents, last year, an Indian government employee (CC-1) worked together with Gupta and others in India and elsewhere to direct an assassination plot against an attorney and political activist, who is a U.S. citizen of Indian origin, on U.S. soil.
Gupta is an Indian national who resides in India, is an associate of CC-1, and has described his involvement in international narcotics and weapons trafficking in his communications with CC-1 and others. CC-1 is an Indian government agency employee who has variously described himself as a “senior field officer” with responsibilities in “security management” and “intelligence” and has referenced previously serving in India’s Central Reserve Police Force and receiving “officer [] training” in “battle craft” and “weapons.” CC-1 directed the assassination plot from India.
In or about May 2023, CC-1 recruited Gupta to orchestrate the assassination of the victim in the U.S. The victim is a vocal critic of the Indian government and leads a U.S.-based organization that advocates for the secession of Punjab, a state in northern India that is home to a large population of Sikhs, an ethnoreligious minority group in India. The victim has publicly called for some or all of Punjab to secede from India and establish a Sikh sovereign state called Khalistan, and the Indian government has banned the victim and his separatist organization from India.
At CC-1’s direction, Gupta contacted an individual whom Gupta believed to be a criminal associate but was in fact a confidential source working with the DEA (the CS) for assistance in contracting a hitman to murder the victim in New York City. The CS introduced Gupta to a purported hitman, who was in fact a DEA undercover officer (the UC). CC-1 subsequently agreed, in dealings brokered by Gupta, to pay the UC $100,000 to murder the victim. On or about June 9, 2023, CC-1 and Gupta arranged for an associate to deliver $15,000 in cash to the UC as an advance payment for the murder. CC-1’s associate then delivered the $15,000 to the UC in Manhattan.
In or about June 2023, in furtherance of the assassination plot, CC-1 provided Gupta with personal information about the victim, including the victim’s home address, phone numbers associated with the victim and details about the victim’s day-to-day conduct, which Gupta then passed to the UC. CC-1 directed Gupta to provide regular updates on the progress of the assassination plot, which Gupta accomplished by forwarding to CC-1, among other things, surveillance photographs of the victim. Gupta directed the UC to carry out the murder as soon as possible, but Gupta also specifically instructed the UC not to commit the murder around the time of anticipated engagements scheduled to occur in the ensuing weeks between high-level U.S. and Indian government officials.
On or about June 18, 2023, masked gunmen murdered Hardeep Singh Nijjar outside a Sikh temple in British Columbia, Canada. Nijjar was an associate of the victim, and like the victim, was a leader of the Sikh separatist movement and an outspoken critic of the Indian government. On or about June 19, 2023, the day after the Nijjar murder, Gupta told the UC that Nijjar “was also the target” and “we have so many targets.” Gupta added that, in light of Nijjar’s murder, there was “now no need to wait” on killing the victim. On or about June 20, 2023, CC-1 sent Gupta a news article about the victim and messaged Gupta, “[i]t’s [a] priority now.”
Gupta is charged with murder-for-hire and conspiracy to commit murder-for-hire. If convicted, he faces a maximum sentence of 10 years in prison for each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and DEA are investigating the case.
The Justice Department’s Office of International Affairs worked with Czech authorities to secure the arrest and extradition of Gupta.
Trial Attorneys Christopher Cook and Robert McCullers of the National Security Division’s Counterintelligence and Export Control Section, Trial Attorney A.J. Dixon of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorneys Camille L. Fletcher, Ashley C. Nicolas and Alexander Li for the Southern District of New York are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jersey City Man Sentenced to 16 Years in Prison for Narcotics and Firearms OffensesRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 192 months in prison for drug distribution and weapons offenses, U.S. Attorney Philip R. Sellinger announced.
Jabar Evans, 45, of Jersey City, New Jersey, was convicted on Oct. 20, 2023, of unlawful possession of a firearm, possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and the evidence at trial:
In June 2021, Evans controlled a fentanyl manufacturing facility in a Jersey City hotel room. In the early morning hours of June 22, 2021, Evans moved his drug manufacturing facility from one hotel room into a new, larger room within the hotel. Surveillance video showed Evans’s belongings being moved from his old room to his new room in the middle of the night. After several hours of moving the drug operation, Evans inadvertently left two firearms in the safe of the old room, which hotel staff thereafter discovered and turned over to law enforcement. Law enforcement officers arrested Evans in his new room, where they also found – both in plain view and hidden in duffel bags in the ceiling – over 12,000 glassines of fentanyl, bags containing hundreds of grams of uncut fentanyl and methamphetamine, and narcotics packaging and manufacturing equipment.
U.S. Attorney Sellinger credited the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to the sentencing. He also thanked special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration’s New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations, the Jersey City Police Department, the Hudson County Prosecutor’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Desiree Grace, Chief of the Criminal Division, and Assistant U.S. Attorney Jason Goldberg of the Office’s Organized Crime and Gangs Unit in Newark.
Jacksonville Felon with Active Injunction for Protection Against Domestic Violence Sentenced to Prison for Trying to Buy A PistolRead the Press Release
Jacksonville, Florida – U.S. District Judge Wendy W. Berger has sentenced Thomas Oliver Morrison (64, Jacksonville) to 21 months in federal prison for making false statements to a federally licensed firearms dealer during the attempted purchase of a firearm. Morrison entered a guilty plea on February 21, 2024.
According to court records, Morrison attempted to purchase a 9mm pistol from a firearms store in Jacksonville on April 20, 2022. At the time, Morrison was subject to a permanent injunction for protection against domestic violence that was issued in 2017. Morrison also had multiple felony convictions, including battery and false imprisonment. Morrison had also been involuntarily committed to a mental institution in 2020, which also prohibits him from lawfully possessing or purchasing a firearm. Morrison made multiple false statements on an ATF Form 4473 related to the injunction, his felony status, and his mental health condition.
This is another case uncovered through the FBI’s National Instant Criminal Background Check System (NICS). All NICS denials are reported to federal law enforcement and are reviewed daily for potential criminal prosecution. Federal law makes it a felony offense to make a false statement to a firearms dealer when trying to buy a gun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with special assistance from the State Attorney’s Office (Fourth Judicial Circuit). It was prosecuted by Assistant United States Attorney Frank Talbot.
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.
Huntington Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Christina Lynn Perkins, also known as “Christina Lynn Jack-Davis,” “Cece,” “Christi Jack,” “Ice Queen,” and “CJ,” 52, of Huntington, was sentenced today to nine years in prison, to be followed by three years of supervised release, for distribution of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on July 24, 2020, Perkins sold approximately 1 ounce of methamphetamine to a confidential informant for $800. The transaction occurred at Perkins’ apartment. Perkins admitted to the transaction and to arranging it with the confidential informant beforehand. Perkins further admitted to arranging for another individual to sell approximately 28 grams of methamphetamine to a confidential informant on July 23, 2020, and to selling approximately 13.71 grams of methamphetamine for $350 to a confidential informant in Huntington on December 3, 2020.
Following the December 3, 2020, transaction, law enforcement officers conducted a traffic stop of the vehicle Perkins was driving. Officers seized approximately 314 grams of methamphetamine, 27 grams of cocaine, 6 grams of fentanyl and digital scales. Perkins admitted that she intended to sell the seized controlled substances in exchange for money.
On December 4, 2020, officers searched a residence in Huntington where Perkins stayed as a guest. Officers seized approximately 123 grams of fentanyl, 449 grams of methamphetamine, 139 grams of cocaine and four firearms. Perkins admitted to possessing the firearms and to intending to sell the seized controlled substances.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Ona Violent Crime and Drug Task Force West, and the West Virginia State Police.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-178.
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Huntington Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Stephen Dwayne Jackson, also known as “Stacks,” 39, of Huntington, was sentenced today to four years and nine months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on August 18, 2023, law enforcement officers executed a search warrant at a Donald Avenue residence in Huntington. Officers encountered Jackson and seized a loaded Kel-Tech P-11 9mm pistol inside the residence.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Jackson knew he was prohibited from possessing a firearm because of his prior felony conviction for possession with intent to distribute 28 grams or more of cocaine base in United States District Court for the Southern District of West Virginia on August 22, 2011.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Courtney L. Finney and Joseph F. Adams prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-178.
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Guilty Plea in the July 2021 Death of an Innocent Bystander Caught in the Crossfire of a NW Gun BattleRead the Press Release
WASHINGTON – Jonathan Brown, 31, pleaded guilty today to participating in a drug trafficking conspiracy that distributed crack cocaine in Northwest Washington D.C. and for his involvement in the July 31, 2021, slaying of Kervin Sanches, an innocent bystander, caught in a shootout on a street corner controlled by members of Brown’s drug trafficking conspiracy.
The guilty plea was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Brown, aka “Tsunami,” of Washington D.C., pleaded guilty to a two-count criminal Information charging him with conspiracy to distribute and possess cocaine base and voluntary manslaughter while armed. U.S. District Court Judge Reggie B. Walton scheduled sentencing for August 8, 2024.
According to court documents, in late 2021, the MPD and FBI began investigating violent crime and drug trafficking activities near 7th Street and O Street, NW. During the investigation, Brown visited a stash house at 1221 M Street on a regular basis. Brown sold controlled substances with co-conspirators on various occasions and text messages recovered from his phone indicated that he was selling fentanyl and cocaine base. Law enforcement used undercover officers to purchase hundreds of grams of cocaine base and fentanyl from members of the drug trafficking conspiracy.
During the investigation, law enforcement determined the group was working together to control the drug trafficking activity in their territory. Their territory was primarily located at the corner of 7th and O Street, NW, the site of the July 31, 2021 shootout that resulted in Kervin Sanches’ death.
On July 31, 2021, at about 11:20 p.m., Brown traveled by car to the area of 7th and O Streets NW with a loaded firearm. An unidentified male in a grey Pontiac followed Brown and parked nearby. Brown exited his car and then walked across the street to meet with a group of associates and others. As Brown approached the group, the unidentified male approached with a gun in his hand. Brown pulled a firearm from his waistband and began shooting at the unidentified gunman, who returned fire. The group scattered. Brown and the gunman continued to shoot at each other while taking cover behind trees and cars. As the gun battle continued, occupants of a white automobile parked near Brown’s car also began shooting at the unidentified gunman. Police later recovered more than 25 shell casings at the scene.
Sanches, who had been part of the group standing on the corner of 7th and O Streets, was struck by a bullet as he attempted to flee the gunfire. Sanches, 31, died of his wound at a nearby hospital.
This case was investigated by the MPD and the FBI’s Washington Field Office. It was prosecuted by Assistant U.S. Attorneys Kevin Rosenberg, Solomon Eppel, and Erin DeRiso of the U.S, Attorney’s Office for the District of Columbia.
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Fresno Man Sentenced to over 15 Years in Prison for Multimillion-Dollar Caregiver Fraud Against Vulnerable Malibu PhysicianRead the Press Release
LOS ANGELES – A Fresno man was sentenced today to 188 months in federal prison for defrauding a vulnerable physician out of more than $2.7 million before his death and then attempting to defraud his estate out of an additional amount exceeding $20 million.
Anthony David Flores, 47, a.k.a. “Anton David,” was sentenced by United States District Judge Percy Anderson, who also ordered Flores to pay $1 million in restitution.
“This defendant heartlessly lined his own pockets while his victim mentally and physically declined, and ultimately died,” said United States Attorney Martin Estrada. “Financial fraudsters can prey on anyone, even the most financially successful among us. We hope that our efforts to convict and now sentence this defendant bring some solace to the victim’s family.”
“Mr. Flores and his co-defendant lived large on the victim's massive wealth while they relentlessly robbed and exploited his vulnerabilities until he succumbed to an early death,” said Krysti Hawkins, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The defendant deprived the victim's family access to their loved one and then dragged them through years of litigation. This case is a reminder that grifters who prey on vulnerable and unsuspecting victims cannot be tolerated by society or the law.”
Flores pleaded guilty in October 2023 to one count of conspiracy to commit mail fraud, two counts of wire fraud, two counts of mail fraud, one count of conspiracy to engage in money laundering, two counts of money laundering, and one count of engaging in monetary transactions in property derived from specified unlawful activity.
Flores’ co-defendant and former girlfriend, Anna Rene Moore, 40, who resided in Monterrey, Mexico at the time of her January 2023 arrest at a Houston airport, pleaded guilty in August 2023 to seven felonies in this case: one count of conspiracy to commit mail fraud, two counts of mail fraud, one count of conspiracy to engage in money laundering, two counts of money laundering, and one count of engaging in monetary transaction in property derived from specified unlawful activity. Her sentencing hearing is scheduled for October 28.
Flores and Moore have been in federal custody since January 2023.
“Mr. Flores’ exploitation of a mentally ill person to steal his wealth is despicable, and he will now reap the consequences of his actions,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Protecting vulnerable people from scammers will always be one of CI’s top priorities, and we will continue to work with our law enforcement partners to investigate these horrible crimes.”
Beginning in June 2017, Flores used false promises and representations to befriend the victim — a physician and successful investor worth more than $60 million, but who suffered from a mental illness and lost the ability to care for himself after multiple hospitalizations. Within days of meeting the victim, Flores and Moore moved into the victim’s beachfront Malibu home – rent free – and slowly took control of his life by pretending to be his new “best friends” and caregivers.
In September 2017, after the victim suffered a severe mental breakdown resulting in his arrest and detention in a Los Angeles County jail, Flores fraudulently induced the victim to sign powers of attorney granting Flores control over the victim’s finances.
Flores represented that he would only use these powers to access the victim’s finances to post bail for release, and that the victim could immediately rescind them once the victim was free from jail. But after the victim was released from custody, the powers of attorney were never rescinded. Within days, Flores used these powers to open bank accounts in the victim’s name with Flores listed as the power of attorney, giving himself and Moore access to the victim’s wealth.
From September 2017 to May 2018, Flores and Moore lived with the victim, diverted the victim’s funds to their own bank accounts, isolated the victim from his family and longtime friends, and provided the victim with drugs, including marijuana and LSD.
Ultimately, in May 2018, the victim died in his Malibu home at the age of 57 years old. Following the victim’s death, Flores and Moore moved back into the victim’s Malibu beachfront home and withdrew large sums of money from his accounts. They also concealed information about the victim’s finances from his mother and sister, both of whom resided in Florida. This prompted the victim’s family to file a lawsuit, which resulted in the fraud being uncovered.
In the ensuing lawsuit in Los Angeles Superior Court, Flores and Moore violated multiple court orders ordering them to return the funds stolen from the victim. They attempted to launder the fraudulent proceeds by funneling the money through multiple different accounts to thwart the victim’s estate and court-appointed receiver from recouping the money.
After extensive litigation with the victim’s estate, the lawsuit was settled with Flores and Moore withdrawing their false creditor’s claims and agreeing to repay the victim’s estate $1 million, which they have so far failed to do.
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Andrew M. Roach of the Cyber and Intellectual Property Crimes Section is prosecuting this case. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling asset forfeiture matters in this matter.
Fresno Man Sentenced for Attempted Coercion of a Minor and Actual Coercion of a Different MinorRead the Press Release
FRESNO, Calif. — Christopher Contreras, 30, of Fresno was sentenced today by U.S. District Judge Jennifer L. Thurston to 15 years and nine months in prison for attempted coercion of a minor and enticement of a minor, U.S. Attorney Phillip A. Talbert announced.
The sentence includes 20 years of supervised release during which time Contreras’s access to minors, computers, and the internet will be restricted. Contreras was also ordered to register as a sex offender.
According to court documents, Contreras used the messaging applications Skout and Snapchat as well as text messages, to engage in sexually explicit communications for approximately one week with a person he believed to be a 13-year-old female. He then traveled to a location in Fresno on July 31, 2020, to meet the purported minor for sexual activity. He was actually communicating with undercover law enforcement investigators. They arrested Contreras and booked him into the Fresno County Jail where he was released on bail.
On Oct. 13, 2020, law enforcement officers responded to a call about a missing juvenile. An investigation confirmed that Contreras picked the juvenile up at a location in Fresno after making arrangements through messages on the Meet Me application. Contreras was arrested for numerous felony violations of California law and booked again at the Fresno County Jail. He was later charged federally in this case and has been in federal custody since June 10, 2021.
This case was the product of an investigation by the Central California Internet Crimes Against Children Task Force, specifically Homeland Security Investigations with assistance from the Fresno County Sheriff’s Office and the Fresno Police Department. Assistant U.S. Attorney David L. Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Fredericksburg man pleads guilty to defrauding COVID-19 relief programRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg man pled guilty today to one count of conspiracy to commit wire fraud for his role in defrauding a federal COVID-19 relief program.
According to court documents, in September 2017, Sherman Green Jr., 34, incorporated the business entity Green Information Solutions LLC (“GIS”) and later opened business banking accounts for GIS at Navy Federal Credit Union (NFCU). In May 2020, a co-conspirator told Green about the Paycheck Protection Program (PPP), a COVID-19 relief program intended to provide loans backed by the Small Business Administration to certain businesses, nonprofit organizations, and other entities to help them retain their employees or stay afloat during the pandemic. Green and his co-conspirator prepared and submitted a PPP loan application to Atlantic Union Bank on behalf of GIS with the assistance of a senior bank officer at Atlantic Union Bank.
In the loan application, Green represented that he was the President/CEO of the company, and falsely claimed that GIS employed seven employees with an average monthly payroll of $78,215.41. Based on these false representations, Atlantic Union Bank awarded GIS a first-draw PPP loan in the amount of $195,500, which was deposited into an Atlantic Union Bank account in the name of GIS on May 11, 2020. Green then purchased a series of cashier’s checks drawn on the money from the fraudulently obtained PPP loan and deposited them into GIS’s NFCU business checking account. Although the memo lines on two of the cashier’s checks referred to “payroll” or other business expenses, GIS did not have any employees or any legitimate business expenses. Between May 2020 and March 2021, Green transferred $81,131.60 from GIS’s NFCU business checking account to his personal bank accounts.
In March 2021, Green and his co-conspirator collaborated again to electronically submit a second-draw PPP loan application to Atlantic Union Bank on behalf of GIS. In this application, Green fraudulently claimed that GIS had five employees with an average monthly payroll of approximately $57,486, and had gross receipts of approximately $1,000,500 in 2019 and $700,000 in 2020. Based on these misrepresentations, Atlantic Union Bank awarded GIS a second-draw PPP loan in the amount of $143,715. Green set up payroll and expense accounts for GIS at Atlantic Union Bank and transferred the second-draw funds into them. Green then used those funds for other purposes, such as payment to Ford Motor Credit, and transferred funds into his personal accounts.
To conceal his misuse of the PPP loans, Green set up a Quickbooks account in which transfers falsely appeared as “payroll” in bank statements. From June 15 to July 15 in 2021, Green made seven such transactions knowing they involved criminally derived property and were not being used for payroll.
Green is scheduled to be sentenced on Sept. 3 and faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stephen Ravas, Acting Inspector General for AmeriCorp; David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division; John Perez, Special Agent in Charge, Headquarters Operations, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau; Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs; and Amaleka McCall-Brathwaite, Eastern Region Special Agent in Charge for the Small Business Administration, Office of Inspector General (SBA-OIG), made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorneys Katherine E. Rumbaugh and Heidi B. Gesch are prosecuting 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-122.
Fourth Defendant Pleads Guilty in Bank Fraud Conspiracy Targeting Capital Region Credit UnionRead the Press Release
ALBANY, NEW YORK – Allahson Allah, formerly known as Gwyn Cancer, age 53, of Albany, pled guilty today to conspiring to commit bank fraud and aggravated identity theft. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
In a plea before United States District Judge Anne M. Nardacci, Allah admitted that between February and October 2022, he organized a conspiracy to defraud SEFCU by, among other things, applying for loans using stolen identities of real people, and withdrawing the money in cash. Allah admitted that lower-level members of the conspiracy applied for loans in other people’s names using fake New York driver’s licenses with their photographs but bearing the names and dates of birth of other people, and the proceeds were given to Allah. Allah further admitted that the conspiracy netted $113,800 in fraudulent cash withdrawals.
Allah was previously charged by an indictment, along with Evan Cutler, of Queensbury, New York, Davon Parson, of Albany, and Dnauticah Taylor-Sterman, of Albany. According to the indictment and statements made by prosecutors in court, the conspirators obtained customer account information from Caeshara Cannon, of Albany, a former Member Service Manager at SEFCU, and used that information to create counterfeit checks, which were presented for negotiation at SEFCU branches in the Northern District of New York. The conspirators also obtained personal identifying information of others, which they used to fraudulently obtain loans from SEFCU and then withdraw the proceeds in cash.
Allah will be sentenced on October 21, 2024. The charges to which Allah pled guilty carry a minimum term of 2 years in prison and a maximum term of 32 years, a fine of up to $1.25 million, and a supervised release term of up to 5 years. He has also agreed to pay restitution in the amount of $113,800, and to entry of a forfeiture money judgment in the same amount.
Allah is the fourth defendant in the conspiracy to plead guilty, following previous pleas by Cannon, Parson, and Taylor-Sterman. Cutler is charged in the indictment with one count of conspiracy to commit bank fraud and four counts of aggravated identity theft. Those charges remain pending. The charges in the indictment against Cutler are merely accusations. Cutler is presumed innocent unless and until proven guilty.
HSI is investigating the case, with assistance from the Bethlehem Police Department. Assistant United States Attorney Benjamin S. Clark is prosecuting this case.
Fort Myers Felon Sentenced for Unlawfully Possessing A FirearmRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Willie Hunter, Jr. (22, Fort Myers) to three years in federal prison for possession a firearm as a convicted felon. The court also ordered Hunter to forfeit the firearm used in the offense. Hunter entered a guilty plea on February 28, 2024.
According to court documents, on November 30, 2023, officers from the Fort Myers Police Department were on patrol in the area of Palm Avenue and Douglas Street. An officer observed a vehicle with illegal dark window tint in violation of Florida law. An officer initiated a traffic stop on the vehicle with his lights and sirens, but the vehicle accelerated into the parking lot of a convenience store. After reaching the parking lot, the front passenger, later identified as Hunter, got out of the vehicle, and proceeded into the convenience store. The vehicle then fled, as Hunter walked into the store.
Officers located Hunter in the convenience store while additional officers pursued the vehicle. The vehicle was later found abandoned and officers located two firearms inside the vehicle. Fingerprint analysis linked Hunter to possessing one of those firearms. At the time, Hunter had multiple prior felony convictions, including possession of firearm by a delinquent and aggravated assault with deadly weapon. As a convicted felon he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Fort Myers Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Mark Morgan.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Former Portsmouth Man Pleads Guilty to Unlawful Possession of a FirearmRead the Press Release
CONCORD – A Portsmouth man pleaded guilty today in federal court to being a felon in possession of a firearm, U.S. Attorney Jane E. Young announces.
Joshua Linane, 42, pleaded guilty to one count of possession of a firearm by a prohibited person. U.S. District Court Chief Judge Landya McCafferty scheduled sentencing for October 10, 2024.
On October 14, 2022, Linane sold a Ruger Speed-Six .357 Magnum revolver to a confidential source. At the time, Linane was a convicted felon.
The charging statute provides a sentence of no greater than 15 years in prison, 3 years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation led the investigation. The Bureau of Alcohol, Tobacco, Firearm and Explosives provided substantial assistance. Assistant U.S. Attorney Geoffrey 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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Former Maryland Police Officer Found Guilty of Federal Civil Rights ViolationRead the Press Release
A federal jury in the District of Columbia today convicted former Officer Philip Dupree, 38, of the Fairmount Heights Police Department in Maryland, for using excessive force.
“Police brutality and violent misconduct against defenseless people are disgraceful acts that have no place in our society today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When law enforcement officers abuse their power, it erodes trust with the communities they are sworn to protect and serve. The victim was handcuffed and already restrained in the back of the defendant’s squad car at the time of the assault. The Justice Department is committed to holding accountable law enforcement officers who violate the civil and constitutional rights of those in their custody.”
“We depend on law enforcement officers to protect our communities from crimes and to protect our civil rights while doing so,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “An officer who abuses his authority breaks the community’s trust and unfairly tarnishes the reputation of the vast majority of officers who do their jobs the right way. The jury found that the defendant broke that trust when he unjustly and unreasonably used force and violence against a fellow citizen.”
“Law enforcement officers swear to protect the people they serve, including those in their custody,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Dupree defiled that responsibility and violated a man’s civil rights. As this case demonstrates, the FBI will not hesitate to investigate officers of the law who engage in misconduct, including those who use excessive force.”
During a weeklong jury trial, the evidence showed that, during the early morning hours of Aug. 4, 2019, Dupree was on duty as a Fairmont Heights Police Officer when he conducted a traffic stop in the District of Columbia. Dupree detained a man identified as T.S. and then deployed pepper spray as T.S. was handcuffed and seated in the back of Dupree’s police car. The government argued, and the jury found, that Dupree’s use of force was a violation of T.S.’ right to be free from excessive force by a law enforcement officer.
A sentencing hearing will be set at a later date. Dupree faces a maximum penalty of 10 years in prison for his alleged use of unreasonable force.
The FBI Washington Field Office is investigating the case.
Trial Attorney Sanjay Patel of the Justice Department’s Civil Rights Division and Assistant U.S. Attorneys Kathryn Rakoczy and Christopher Howland for the District of Columbia are prosecuting the case.
Former Maryland Police Officer Found Guilty of Excessive ForceRead the Press Release
WASHINGTON – Philip Dupree, 40, a former officer with the Fairmount Heights, MD Police Department, was found guilty today in U.S. District Court of violating a man’s civil rights.
The verdict was announced by U.S. Attorney Matthew M. Graves of the District of Columbia, Assistant U.S. Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
A federal jury found Dupree guilty of one count of deprivation of rights under color of law. U.S. District Court Judge Colleen Kollar-Kotelly will schedule sentencing at a later date. Dupree faces a maximum sentence of 10 years in prison for his use of unreasonable force. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“We depend on law enforcement officers to protect our communities from crimes and to protect our civil rights while doing so,” said U.S. Attorney Graves. “An officer who abuses his authority breaks the community’s trust and unfairly tarnishes the reputation of the vast majority of officers who do their jobs the right way. The jury found that the defendant broke that trust when he unjustly and unreasonably used force and violence against a fellow citizen.”
“Police brutality and violent misconduct against defenseless people are disgraceful acts that have no place in our society today,” said Assistant Attorney General Clarke. “When law enforcement officers abuse their power, it erodes trust with the communities they are sworn to protect and serve. The victim was handcuffed and already restrained in the back of the defendant’s squad car at the time of the assault. The Justice Department is committed to holding accountable law enforcement officers who violate the civil and constitutional rights of those in their custody.”
"Law enforcement officers swear to protect the people they serve, including those in their custody,” said FBI Assistant Director in Charge Sundberg. “Dupree defiled that responsibility and violated a man's civil rights. As this case demonstrates, the FBI will not hesitate to investigate officers of the law who engage in misconduct, including those who use excessive force."
According to court documents, Dupree was on duty as a Fairmont Heights Police Officer during the early morning hours of Aug. 4, 2019. Dupree spotted a speeding vehicle and conducted a traffic stop on Eastern Avenue NE, in the District of Columbia, just across the Maryland-District of Columbia border. The driver and his sister were returning home to the District of Columbia from a family cookout in Maryland.
Based on a 911 recording placed by the driver’s sister, Dupree told the driver to put his hands behind his back or he would pepper spray him and Dupree would activate his body-worn camera (BWC) to make the stop “official.” The driver questioned the stop because he had not committed any traffic violations and because the stop occurred in the District of Columbia. Dupree asked the driver to exit his vehicle, handcuffed the driver behind his back, and placed the driver in the front passenger seat of Dupree’s personal vehicle.
After Dupree radioed for back-up, an officer from the Prince George’s County Police Department (PGCPD) responded. Around that same time, an MPD officer arrived at the scene in response to a 911 call the driver’s sister had placed. The MPD officer activated his BWC. Dupree did not activate his BWC at any point during the traffic stop. While the handcuffed driver was seated in Dupree’s vehicle, the driver’s sister sat in the driver’s car, ostensibly to prevent Dupree from towing the vehicle. After Dupree told the sister that he “was going to ask [her] one more time to get out of the car,” the sister responded that the car belonged to her brother and that she had a driver’s license. When the sister still refused to exit the vehicle, Dupree threatened to pepper spray her by aggressively shaking his canister of pepper spray.
While the defendant was engaged with the sister, the handcuffed driver was seated in the front passenger seat of Dupree’s car yelling obscenities and insults and activating the vehicle’s sirens. The PFCPD officer asked the handcuffed driver to step out of the vehicle. Dupree asked the other officers for help in taking the handcuffed driver back to Maryland. The PGCPD officer declined to assist.
As it became clear that Dupree would have to transport the driver himself, Dupree then placed the handcuffed driver back in the front passenger seat. The handcuffed driver started to scream, pleading to have another officer transport him. Dupree grabbed his pepper spray, took a step back away from handcuffed driver, shook the canister, and then stepped forward, at which point Dupree pepper-sprayed the handcuffed driver in the face and chest. Instead of transporting the handcuffed driver to the county lock-up as required by FHPD policy, Dupree transported the driver to the FHPD station and detained him there for several hours before turning him over to the county jail. While the driver was detained at FHPD, Dupree drafted a falsified statement of Probable Cause in which he claimed, among other things, that the driver had attacked him.
In addition to body-worn camera footage, an eyewitness captured cell phone video of the traffic stop and Dupree’s excessive use of force.
FBI agents arrested Dupree on August 24, 2022, in Washington D.C.
The case was investigated by the FBI Washington Field Office and is being prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division and Assistant U.S. Attorney Christopher Howland of the U.S. Attorney’s Office for the District of Columbia.
22-cr-0275
Former Financial TV News Analyst-Turned-Fugitive Arrested on Federal Indictment Charging Him with Defrauding InvestorsRead the Press Release
LOS ANGELES – A former San Gabriel Valley resident who was a frequent guest on financial television news programs then became a fugitive from justice after being accused of defrauding investors is expected to appear today in federal court after being arrested over the weekend.
James Arthur McDonald Jr., 52, formerly of Arcadia, was arrested Saturday at a residence in Port Orchard, Washington, and is expected to make his initial appearance today in United States District Court in Tacoma, Washington. He will arrive in Los Angeles in the coming weeks to face federal charges in this district.
McDonald had been considered a fugitive since at least November 2021, when he failed to appear before the United States Securities and Exchange Commission to testify after allegations arose that he had defrauded investors. Prior to fleeing, McDonald also appeared to have terminated his previous phone and email accounts and told one person that he planned to “vanish,” according to court documents.
Since then, a federal grand jury in Los Angeles in January 2023 returned a seven-count indictment against McDonald. He is charged with one count of securities fraud, one count of wire fraud, three counts of investment adviser fraud, and two counts of engaging in monetary transactions in property derived from unlawful activity.
According to the indictment, McDonald was the CEO and chief investment officer of two companies: Hercules Investments LLC, based in downtown Los Angeles, and Index Strategy Advisors Inc. (ISA), based in Redondo Beach. He frequently appeared as an analyst on the CNBC financial television news network.
In late 2020, McDonald lost tens of millions of dollars of Hercules client money after adopting a risky short position that effectively bet against the health of the United States economy in the aftermath of the U.S. presidential election. McDonald projected that the COVID-19 pandemic and the election would result in major selloffs that would cause the stock market to drop. When the market decline didn’t occur, Hercules clients lost between $30 million and $40 million. By December 2020, Hercules clients were complaining to company employees about the losses in their accounts.
Since McDonald’s compensation for his investment advisory services primarily was based on a percentage of assets under his management – typically 2% of a client’s total assets held by Hercules – the massive losses to Hercules clients significantly decreased the fees McDonald was entitled to collect.
In early 2021, McDonald solicited millions of dollars' worth of funds from investors in the form of a purported capital raise for Hercules but allegedly misrepresented how the funds would be used and failed to disclose the massive losses Hercules previously sustained. McDonald – an avid football enthusiast – stated that he planned to launch a mutual fund under the ticker symbol “NFLHX.” The losses to Hercules clients and the potential for litigation related to those losses jeopardized the success of that fund because any litigation would have had to be publicly disclosed.
As part of the capital raise, McDonald obtained $675,000 in investment funds from one victim group on March 9, 2021. He allegedly misappropriated those funds in various ways, including spending roughly $174,610 of them at a Porsche dealership. Approximately $109,512 was transferred to the landlord of a home McDonald was renting in Arcadia; and approximately $6,800 was spent on a website that sells designer menswear, according to court documents.
McDonald allegedly also falsely represented to clients that ISA, his other firm, was a registered investment adviser, even though he had withdrawn ISA as a state-registered investment adviser firm in May 2019. He also allegedly sent ISA clients false account statements, including for one client who invested approximately $351,000, later needed the money to make a down payment on a home, was informed by McDonald that much of the money had been lost, and never got his full investment back.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, McDonald would face a statutory maximum sentence of 20 years in federal prison for each securities fraud and wire fraud count, up to 10 years in federal prison on the monetary transactions derived from unlawful activity count, and up to five years in federal prison on the investment adviser fraud count.
The FBI and IRS Criminal Investigation are investigating this matter.
In September 2022, the SEC filed a civil complaint charging McDonald and Hercules with violations of federal securities law. On April 21, United States District Judge Percy Anderson found McDonald liable for a total of approximately $3,810,346, which represented his net profits gained because of the alleged conduct.
Assistant United States Attorney Alexander B. Schwab of the Corporate and Securities Fraud Strike Force is prosecuting this case.
Former College Football Player Pleads Guilty to a Fraud Scheme Involving More than $1 Million in COVID-19 Unemployment BenefitsRead the Press Release
LOS ANGELES – A former college football player and Orange County man pleaded guilty today to orchestrating a scheme that fraudulently sought more than $1 million and obtained more than $280,000 in pandemic unemployment benefits.
Abdul-Malik McClain, 24, most recently of Coto de Caza, pleaded guilty to one count of mail fraud.
“Instead of using his time at a major university to advance his athletic and academic life, this defendant took advantage of a public health emergency to fraudulently obtain government benefits,” said United States Attorney Martin Estrada. “My office will continue to vigorously prosecute individuals who used the recent pandemic for their own unlawful ends.”
“Mr. McLain squandered his gifts and opportunities only to defraud taxpayers whose hard-earned money was appropriated for deserving victims during the Covid era,” said Krysti Hawkins, the Acting Assistant Director in Charge of the FBI's Los Angeles Field Office. “The FBI will continue to work with our partners to identify those who leveraged the Covid pandemic to commit fraud and hold them accountable.”
According to his plea agreement, while a member of his university’s football team, McClain filed fraudulent claims for unemployment benefits and organized and assisted a group of other football players in filing fraudulent claims for unemployment benefits, including under the Pandemic Unemployment Assistance (PUA) program established by Congress in response to COVID-19’s economic fallout. McClain and others filed the claims with the California Employment Development Department (EDD), the administrator of the state’s unemployment insurance (UI) benefit program. The claims contained false information about the claimants’ supposed prior employment, pandemic-related job loss, and job-seeking efforts in California.
The false statements in the UI applications led EDD to authorize Bank of America to mail debit cards addressed to the named claimants, often to addresses that McClain controlled, such that McClain (and not the named claimants) received the debit cards. Those debit cards were loaded with various amounts in fraudulently obtained benefits, ranging from a few hundred dollars to thousands of dollars in unemployment benefits, which the recipients of the debit cards, including in many instances McClain himself, used to make cash withdrawals at ATMs and to fund personal expenses. In some cases, McClain sought and obtained a cut of the fraudulently obtained benefits for helping others file fraudulent UI applications.
McClain’s and his co-schemers’ fraudulent applications sought at least $1,056,092 in UI benefits from EDD and led to receiving at least $283,063 in fraudulently obtained benefits.
United States District Judge Michael W. Fitzgerald scheduled a September 16 sentencing hearing, at which McClain will face a maximum sentence of 20 years in federal prison.
“Abdul-Malik McClain defrauded our nation’s unemployment insurance (UI) system by filing for UI benefits in the names of identity theft victims, while so many deserving people were suffering from pandemic-related economic challenges,” said Quentin Heiden, Special Agent in Charge, Western Region, United States Department of Labor Office of Inspector General. “The benefits were intended for those who truly needed it, not for greedy individuals who chose to exploit the system. The U.S. Department of Labor, Office of Inspector General remains dedicated to its mission to combat UI fraud. Our efforts to uncover fraudulent actors and their schemes is unwavering. I would also like to thank our state and federal law enforcement partners in Los Angeles in this collaborative investigative effort.”
The FBI; the United States Department of Labor Office of Inspector General; the Federal Deposit Insurance Corp. Office of Inspector General; the United States Treasury Inspector General for Tax Administration; the Social Security Administration Office of Inspector General; and the United States Postal Inspection Service investigated this matter. The university, called “University 1” in the indictment, cooperated in this investigation.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section is prosecuting this 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. More information on the Justice Department’s response to the pandemic may be found here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF online complaint form.
Former CEO of Medical Device Company Sentenced to Six Years in Prison for Creating and Selling A Fake Component That Was Implanted into PatientsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that LAURA PERRYMAN was sentenced today to six years in prison in connection with a health care fraud scheme whereby PERRYMAN created and sold a fake medical device component and told doctors that they could claim approximately $18,000 for implanting the fake component into patients. The device was sold by Stimwave, a medical device company of which the defendant was the founder, and, at the time of the offense, Chief Executive Officer. Stimwave previously entered into a Non-Prosecution Agreement with the U.S. Attorney’s Office for the Southern District of New York. PERRYMAN was found guilty of heath care fraud and conspiracy to commit health care fraud and wire fraud following a two-week trial before U.S. District Judge Denise L. Cote, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Laura Perryman callously created a dummy medical device component and told doctors to implant it into patients. She did this out of greed, so doctors could bill Medicare and private insurance companies approximately $18,000 for each implantation of that dummy component and so she could entice doctors to buy her device for many thousands of dollars. Perryman breached the trust of the doctors who bought her medical device, and more importantly, the patients who were implanted with that piece of plastic. This prosecution and today’s sentence are part of this Office’s ongoing work in combating fraud in the health care system and protecting patients from being exploited for money.”
According to the allegations in the Indictment and the evidence at trial:
Stimwave was a medical device company that manufactured and distributed implantable neurostimulation devices. As the founder and CEO of Stimwave, PERRYMAN oversaw the design of the StimQ PNS System (the “Device”), a neurostimulator system designed to treat chronic pain by providing electrical currents to peripheral nerves. The Device included a component containing electrodes (the “Lead”) and a receiver component that acted as an antenna, transmitting energy from an external power source to the Lead (the “Pink Stylet”). From at least in or about 2017 up to and including 2020, PERRYMAN, as Stimwave’s CEO, engaged in a multi-year scheme (the “Scheme”) to design, create, manufacture, and market an inert, non-functioning component of the Device — called the “White Stylet.” The White Stylet was marketed as a receiver of radiofrequency energy, but it was made of plastic and could not function as a receiver.
Stimwave sold the Device to doctors and medical providers for approximately $16,000. PERRYMAN instructed health care providers to bill medical insurance providers, including Medicare, for implanting the Device into patients through two separate reimbursement codes. One code was for implantation of the stimulator portion of the Lead, and a second was for implantation of a receiver. The billing code for implanting the Lead provided for reimbursement at a rate of between approximately $4,000 and $6,000, while the billing code for implanting a receiver provided for reimbursement at a rate of between approximately $16,000 and $18,000.
Soon after the Device was released, physicians informed Stimwave that they were having trouble implanting the Pink Stylet in certain patients because the Pink Stylet was too long. PERRYMAN knew that the Pink Stylet could not be cut or trimmed to shorten it without interfering with the functionality of the Pink Stylet as a receiver. And, without a receiver component for doctors to implant and seek reimbursement for, doctors would incur a substantial financial loss with every purchase of the Device, thereby making it more difficult for PERRYMAN to sell the Device to doctors and medical providers at the approximately $16,000 price.
However, Stimwave — at the direction of PERRYMAN — did not lower the price of the Device so that its cost to doctors and medical providers could be covered by reimbursement for the implantation of only the Lead. Nor did PERRYMAN recommend that doctors not implant the Device or its receiver component in cases where the Pink Stylet could not fit comfortably. Instead, PERRYMAN directed that Stimwave create the White Stylet — a dummy component made entirely of plastic, but which PERRYMAN misrepresented to doctors as a receiver alternative to the Pink Stylet. The White Stylet could be cut to size by the doctor for use in smaller anatomical spaces and was created solely so that doctors and medical providers would continue to purchase the Device for use in those scenarios and continue to bill for the implantation of a receiver component. To perpetuate the lie that the White Stylet was functional, PERRYMAN oversaw trainings for doctors that indicated the White Stylet was a “receiver,” when in fact it was made entirely of plastic, contained no copper, and therefore had no conductivity. In addition, PERRYMAN directed other Stimwave employees to vouch for the efficacy of the White Stylet as a receiver, when she knew that the White Stylet could not function as a receiver.
As a result of these misrepresentations regarding the functionality of the White Stylet, PERRYMAN caused doctors and medical providers to implant the White Stylet into patients and submit reimbursement claims for implantation of the White Stylet to health insurance providers, including Medicare.
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In addition to the prison term, PERRYMAN, 55, of Delray Beach, Florida, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation for its assistance in this matter.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jacob Bergman, Mónica Folch, Steven Kochevar, and Kimberly Ravener, with the assistance of Paralegal Specialists Joseph Carbone and Julia Gutierrez, are in charge of the prosecution.
Florida Tax Preparer Sentenced for False Return ConspiracyRead the Press Release
A Florida tax return preparer was sentenced today to 30 months in prison, two years of supervised release and to pay $970,970 in restitution for conspiring to defraud the United States by preparing and filing false tax returns for clients.
According to court documents and statements made in court, from 2017 through 2020, John Borgela ran Empire Tax Services (Empire) with his co-conspirator Phedson Dore and filed hundreds of false returns each year. Borgela typically inflated tax withholdings and reported fictitious itemized deductions to generate refunds for clients to which they were not entitled. To conceal his participation in the fraud, Borgela did not list on the returns his name as the person who prepared them or include Empire’s electronic filing number (EFIN). Instead, he used his employees’ names and the EFINs of other return preparation businesses.
Borgela and his co-conspirator caused a loss to the IRS of approximately $970,000. Dore was sentenced in February to 24 months in prison for his role in the conspiracy.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Brian Flanagan and Marissa Brodney of the Justice Department’s Tax Division and Assistant U.S. Attorney Shannon Laurie for the Middle District of Florida prosecuted the case.
Employee of Tolland Strip Club Pleads GuiltyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that WILLIAM MAYO, 41, of Manchester, pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to an offense related to the operation of the Electric Blue strip club in Tolland.
According to court documents and statements made in court, the Electric Blue strip club in Tolland employed dancers who performed nude dances and lap dances for customers. Mayo conspired with others to facilitate prostitution at the club. Mayo was employed at the club as a bouncer and was primarily responsible for hiring dancers, many of whom were not legally authorized to live or work in the United States. The Electric Blue had a semi-private “lap dance room” and “VIP rooms” where dancers regularly performed commercial sex acts for customers. As payment for commercial sex acts, customers would typically pay the club an entry fee for use of the lap dance room or one of the VIP rooms and then pay an additional fee directly to the dancer. In addition, the club collected cash through cover charges paid at the door and fees paid by dancers to perform at the club. It is alleged that millions of dollars in business receipts collected in cash were not reported to the IRS.
Mayo pleaded guilty to conspiracy to use an interstate facility to promote or facilitate prostitution, an offense that carries a maximum term of imprisonment of five years. A sentencing date is not scheduled.
Mayo was arrested on May 15, 2024. He is released on a $100,000 bond pending sentencing.
This matter is being investigated by Homeland Security Investigations (HSI), the Internal Revenue Service – Criminal Investigation Division, the Connecticut State Police, the Connecticut Department of Consumer Protection – Liquor Control Division, and the Massachusetts State Police, with the assistance of the Willimantic Police Department and Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorneys Ross Weingarten and Robert S. Dearington.
If any employee/dancer at the Electric Blue has been a victim of the unlawful acts described in this case, please contact the U.S. Attorney’s Office Victim Advocate at [email protected] or 203-696-3039. A Spanish version of the press release issued when this case was originally charged is available here, and a Portuguese version is available here.
El Departamento de Justicia llega a un acuerdo con una agencia de dotación de personal para resolver acusaciones de discriminación en el empleoRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Selective Personnel Inc. (SPI), una agencia de dotación de personal de California. El acuerdo resuelve la determinación del Departamento de que la entidad comercial antecesor de SPI, South Bay Safety (SBS), vulneró la ley de Inmigración y Nacionalidad (INA) cuando discriminó a no ciudadanos de los EE. UU. al verificar su permiso para trabajar en los Estados Unidos.
«A la hora de verificar su permiso para trabajar, los empleadores no deben exigir documentos específicos a los trabajadores por motivos de su estatus de ciudadanía», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles se compromete a proteger a los trabajadores de prácticas discriminatorias que creen barreras innecesarias al empleo».
Después de llevar a cabo una investigación, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), de la División de Derechos Civiles, concluyó que entre al menos septiembre del 2020 y al menos octubre del 2022, SBS exigía que, para demostrar su permiso para trabajar, los no ciudadanos de los EE. UU. presentasen tipos específicos de documentación que reflejasen su estatus migratorio. Por el contrario, a los ciudadanos de los EE. UU. se les permitía presentar cualquier documento aceptable de su elección. Basándose en su investigación, la IER concluyó que SPI era un sucesor en interés de SBS y, por lo tanto, responsable de las infracciones que la IER descubrió.
En virtud del acuerdo, SPI pagará sanciones civiles a los Estados Unidos, capacitará a sus empleados en cuanto a los requisitos de la INA, revisará sus políticas de empleo y se someterá a la supervisión del Departamento.
Los ciudadanos de los EE. UU., los nacionales de los EE. UU., los residentes permanentes legales, los que reciben asilo o estatus de refugiado y otros no ciudadanos de los EE. UU. con permiso para trabajar pueden trabajar legalmente en los Estados Unidos si pueden demostrar su identidad y su permiso para trabajar. Las leyes federales permiten a todos los trabajadores elegir la documentación válida y legalmente aceptable que desean presentar para demostrar su identidad y permiso para trabajar, independientemente de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen. La disposición antidiscriminación de la INA prohíbe a los empleadores solicitar documentos específicos o innecesarios por motivos de la ciudadanía, el estatus migratorio o la nacionalidad de origen de un trabajador. Los empleadores deben permitir que los trabajadores presenten cualquier documentación aceptable que los trabajadores mismos elijan y no pueden rechazar documentación válida que parezca razonablemente genuina y relacionada con el trabajador.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación al verificar el permiso para trabajar de alguien en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea en vivo o visualizar una presentación a la carta; enviar un correo electrónico a [email protected] ; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
El Departamento de Justicia llega a acuerdos con condados tejanos para asegurar la accesibilidad de los sitios web electorales para las personas con discapacidadesRead the Press Release
El Departamento de Justicia anunció hoy que la División de Derechos Civiles y las Fiscalías Federales de los distritos del Este, Norte, Sur, y Oeste de Texas han llegado a acuerdos conciliatorios con los Condados de Colorado, Runnels, Smith y Upton para resolver los hallazgos del departamento que los condados infringieron al Título II de la Ley para Estadounidenses con Discapacidades de 1990 (ADA, por sus siglas en inglés), al mantener sitios web electorales que discriminan contra individuos con discapacidades manuales o visuales.
“La votación en el siglo XXI requiere que los oficiales hagan sus sitios web accesibles para las personas con discapacidades,” comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Las barreras discriminatorias en los sitios web electorales pueden prevenir que las personas con discapacidades ejerzan su derecho al voto. Estos acuerdos conciliatorios deben enviar un mensaje a los oficiales estatales y locales de todo el país sobre la importancia de asegurar que sus sitios web electorales son accesibles para los votantes con discapacidades para que puedan participar de manera igualitaria en nuestro proceso democrático.”
Los sitios web electorales de estos cuatro condados tejanos brindan información importante sobre cómo votar, por ejemplo, cuáles son los requisitos para el registro y la identificación del votante, así como, cuál es la información que necesitan las personas con discapacidades para votar. Los sitios web también contienen enlaces a información crítica, incluidos detalles sobre votación temprana y la votación el día de las elecciones.
Bajo los acuerdos conciliatorios, los condados accedieron hacer accesible a las personas con discapacidades todo contenido de web existente y futuro. Los condados también accedieron contratar a un auditor independiente para evaluar la accesibilidad del contenido electoral de los sitios web, adoptar nuevas políticas y entrenamiento para los empleados relevantes, advertir noticia a los visitantes y usuarios de los sitios web para solicitar comentarios y solicitudes sobre cualquier barrera de accesibilidad, y designar a un empleado para coordinar sus esfuerzos.
Estas cuatro investigaciones son parte de la Iniciativa de Votación ADA, la cual se enfoca en proteger los derechos de voto de los individuos con discapacidades. Para conocer más sobre el ADA y cómo esta se aplica a la votación usted puede visitar el sitio web a www.ada.gov/topics/voting/. Estos acuerdos conciliatorios también son parte de la Iniciativa de Equidad Tecnología de la División de Derechos Civiles para combatir discriminación de discapacidad que ocurre a través de la tecnología, tal como los sitios de web y aplicaciones móviles.
Dominican National Faces 10+ Years in Prison After East Millinocket Traffic Stop Reveals 113 Grams of Methamphetamine, Other DrugsRead the Press Release
BANGOR, Maine: A man from the Dominican Republic pleaded guilty today in U.S. District Court in Bangor to possessing controlled substances with intent to distribute.
According to court records, in November 2023, Lenin Nova-Nova, 42, was a passenger in a vehicle that was stopped by the East Millinocket Police Department due to an issue with the headlights. An officer observed an unnatural bulge under Nova-Nova’s clothing. Nova-Nova identified himself using a false name, and a warrant check of that alias revealed an outstanding warrant for arrest. A search of Nova-Nova’s person revealed $1,305 in cash, four cell phones, and suspected controlled substances wrapped in cellophane. Analysis identified the substances as approximately 113 grams of 100% pure methamphetamine, approximately 19 grams of a substance containing fentanyl, and 57.8 grams of a substance containing cocaine base. Homeland Security Investigations was able to determine Nova-Nova’s identity.
Nova-Nova faces a minimum of 10 years and a maximum of life in federal prison and a fine up to $10 million to be followed by supervised release for up to life. Nova-Nova will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The East Millinocket Police Department and Homeland Security Investigations investigated the case.
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Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Michael Dayshawn Harris, also known as “Polo,” 30, of Detroit, Michigan, pleaded guilty today to distribution of quantities of a mixture and substance containing a detectable amount of methamphetamine and fentanyl.
According to court documents and statements made in court, on October 6, 2022, Harris sold approximately 29 grams of methamphetamine and a quantity of fentanyl to a confidential informant in Huntington. Harris admitted to the transaction and further admitted to arranging it beforehand when the confidential informant called him earlier that day.
Harris is scheduled to be sentenced on September 30, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
Co-defendant Desmond Devon Magee, also known as “Rich,” 27, of Detroit, was sentenced on May 22, 2023, to four years in prison, to be followed by three years of supervised release, after pleading guilty to distribution of a quantity of a mixture and substance containing a detectable amount of methamphetamine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams and Courtney L. Finney are 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. 3:22-cr-210.
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Dallas Residents Plead Guilty to Federal Controlled Substances Act ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – HECTOR OMAR SEGURA-LARA (“SEGURA-LARA”) age 35, and JOSE ANTONIO ORTEGA-SILVA (“ORTEGA-SILVA”), age 32, both residents of Dallas, Texas, pled guilty on June 13, 2024 to conspiracy to distribute and possess with intent to distribute a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, on August 25, 2021, near milepost 56 on Interstate 12, Louisiana State Troopers conducted a traffic stop of a Chrysler 200 occupied by SEGURA-LARA and ORTEGA-SILVA. When the vehicle occupants provided contradictory answers to the troopers regarding their itinerary, the troopers conducted a consensual search of the vehicle. During the search, the troopers noticed that a twelve-volt battery was attached to the car battery and that the twelve-bolt battery was powering the car. Inside the actual car battery, were four kilograms of cocaine discovered by the troopers.
Both SEGURA-LARA and ORTEGA-SILVA acknowledged they were driving to Virginia to deliver drugs. ORTEGA-SILVA admitted that at the request of another individual, he obtained the vehicle in Dallas and drove it to Houston where another individual loaded the vehicle with drugs. The plan was for ORTEGA-SILVA and SEGURA-LARA to then drive to Virginia where individuals would unload the drugs and place the proceeds ($152,000.00) in the car battery. ORTEGA-SILVA and SEGURA-LARA were instructed to then return to Texas with the proceeds.
For the conspiracy count charged, ORTEGA-SILVA and SEGURA-LARA each face a maximum term of imprisonment of twenty years, a fine of up to $1,000,000.00, a mandatory minimum term of supervised release of three years, and a mandatory special assessment fee of $100.00.
This case was investigated by the Louisiana State Police and the Department of Homeland Security Investigations. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
Convicted Felon Pleads Guilty to Illegally Trying to Buy A FirearmRead the Press Release
Jacksonville, FL – United States Attorney Roger B. Handberg announces that Jamie Thompson (50, Jacksonville) has pleaded guilty to making a false statement to a federally licensed firearms dealer. Thompson faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Thompson completed an ATF Form 4473 during the attempted purchase of a firearm from a federally licensed firearms dealer. Thompson indicated on the required paperwork that he was not a convicted felon. Thompson admitted this was a false statement, and that he was previously convicted of six felony offenses.
This is another case uncovered through the FBI’s National Instant Criminal Background Check System (NICS). All NICS denials are reported to federal law enforcement and are reviewed daily for potential criminal prosecution. Federal law makes it a felony offense to make a false statement to a firearms dealer when trying to buy a gun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank Talbot.
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.
Consulting Companies to Pay $11.3M for Failing to Comply with Cybersecurity Requirements in Federally Funded ContractRead the Press Release
Guidehouse Inc., headquartered in McLean, Virginia, has paid $7,600,000 and Nan McKay and Associates (Nan McKay), headquartered in El Cajon, California, has paid $3,700,000 to resolve allegations that they violated the False Claims Act by failing to meet cybersecurity requirements in contracts intended to ensure a secure environment for low-income New Yorkers to apply online for federal rental assistance during the COVID-19 pandemic.
In early 2021, Congress established the emergency rental assistance program (ERAP) to provide financial assistance to eligible low-income households to cover the costs of rent, rental arrears, utilities and other housing-related expenses during the COVID-19 pandemic. Participating governments were required to establish programs to distribute the federal funding to eligible tenants and landlords. In New York, the Office of Temporary and Disability Assistance (OTDA) was the state agency responsible for administering New York’s ERAP. In May 2021, Guidehouse and OTDA entered a contract under which Guidehouse, as the prime contractor, assumed responsibility for the New York ERAP, including for the ERAP technology and services provided to New Yorkers. Nan McKay, in turn, served as Guidehouse’s subcontractor and was responsible for delivering and maintaining the ERAP technology product used in New York to fill out and submit online applications requesting rental assistance (ERAP Application).
Guidehouse and Nan McKay shared responsibility for ensuring that the ERAP Application underwent cybersecurity testing in its pre-production environment before it was launched to the public. As part of the settlements announced today, Guidehouse and Nan McKay admitted that neither satisfied their obligation to complete the required pre-production cybersecurity testing. The state’s ERAP went live on June 1, 2021. Twelve hours later, OTDA shut down the ERAP website after determining that certain applicants’ personally identifiable information (PII) had been compromised and portions were available on the internet. Guidehouse and Nan McKay acknowledged that had either of them conducted the contractually-required cybersecurity testing, the conditions that resulted in the information security breach may have been detected and the incident prevented.
In addition, as part of its settlement, Guidehouse admitted that for a short time period in 2021, it used a third-party data cloud software program to store personally identifiable information without first obtaining OTDA’s permission, in violation of its contract.
“Federal funding frequently comes with cybersecurity obligations, and contractors and grantees must honor these commitments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “The Justice Department will continue to pursue knowing violations of material cybersecurity requirements aimed at protecting sensitive personal information.”
“Contractors who receive federal funding must take their cybersecurity obligations seriously,” said U.S. Attorney Carla B. Freedman for the Northern District of New York. “We will continue to hold entities and individuals accountable when they knowingly fail to implement and follow cybersecurity requirements essential to protect sensitive information.”
“These vendors failed to meet their data integrity obligations in a program on which so many eligible citizens depend for rental security, which jeopardized the effectiveness of a vital part of the government’s pandemic recovery effort,” said Acting Inspector General Richard K. Delmar of the Department of the Treasury. “Treasury OIG is grateful for DOJ’s support of its oversight work to accomplish this recovery.”
“This settlement sends a strong message to New York State contractors that there will be consequences if they fail to safeguard the personal information entrusted to them or meet the terms of their contracts,” said New York State Comptroller Thomas P. DiNapoli. “Rental assistance has been vital to our economic recovery, and the integrity of the program needs to be protected. I thank the United States Department of Justice, United States Attorney for the Northern District of New York Freedman and the United States Department of Treasury Office of the Inspector General for their partnership in exposing this breach and holding these vendors accountable.”
On Oct. 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyber fraud can be found here.
The United States’ investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds, and to receive a share of any recovery. The settlement agreements in this case provide for the whistleblower, Elevation 33 LLC, an entity owned by a former Guidehouse employee, to receive a $1,949,250 share of the settlement amounts. The case is captioned United States ex rel. Elevation 33, LLC v. Guidehouse Inc. et al., Case No. 1:22-cv-206 (N.D.N.Y.)
Trial Attorney J. Jennifer Koh of the Civil Division's Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Adam J. Katz for the Northern District of New York handled this matter, with assistance from the Department of the Treasury OIG and the Office of the New York State Comptroller.
NMA Settlement Guidehouse SettlementConsulting Companies to Pay $11.3 Million for Failing to Comply with Cybersecurity Requirements in Federally Funded ContractRead the Press Release
ALBANY, NEW YORK – Guidehouse Inc., headquartered in McLean, Virginia, has paid $7,600,000, and Nan McKay and Associates (Nan McKay), headquartered in El Cajon, California, has paid $3,700,000, to resolve allegations that they violated the False Claims Act by failing to meet cybersecurity requirements in contracts intended to ensure a secure environment for low-income New Yorkers to apply online for federal rental assistance during the COVID-19 pandemic.
The announcement was made by United States Attorney Carla B. Freedman; Principal Deputy Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division; Acting Inspector General Richard K. Delmar of the Department of the Treasury’s Office of Inspector General (Treasury OIG); and New York State Comptroller Thomas P. DiNapoli.
In early 2021, Congress established the emergency rental assistance program (ERAP) to provide financial assistance to eligible low-income households to cover the costs of rent, rental arrears, utilities, and other housing-related expenses during the COVID-19 pandemic. Participating governments were required to establish programs to distribute the federal funding to eligible tenants and landlords. In New York, the Office of Temporary and Disability Assistance (OTDA) was the state agency responsible for administering New York’s ERAP. In May 2021, Guidehouse and OTDA entered a contract under which Guidehouse, as the prime contractor, assumed responsibility for the New York ERAP, including for the ERAP technology and services provided to New Yorkers. Nan McKay, in turn, served as Guidehouse’s subcontractor and was responsible for delivering and maintaining the ERAP technology product used in New York to fill out and submit online applications requesting rental assistance (ERAP Application).
Guidehouse and Nan McKay shared responsibility for ensuring that the ERAP Application underwent cybersecurity testing in its pre-production environment before it was launched to the public. As part of the settlements announced today, Guidehouse and Nan McKay admitted that neither satisfied their obligation to complete the required pre-production cybersecurity testing. The State’s ERAP went live on June 1, 2021. Twelve hours later, OTDA shut down the ERAP website after determining that certain applicants’ personally identifiable information (PII) had been compromised and portions were available on the internet. Guidehouse and Nan McKay acknowledged that had either of them conducted the contractually-required cybersecurity testing, the conditions that resulted in the Information Security Breach may have been detected and the incident prevented.
In addition, as part of its settlement, Guidehouse admitted that for a short time period in 2021, it used a third-party data cloud software program to store personally identifiable information without first obtaining OTDA’s permission, in violation of its contract.
United States Attorney Carla B. Freedman stated: “Contractors who receive federal funding must take their cybersecurity obligations seriously. We will continue to hold entities and individuals accountable when they knowingly fail to implement and follow cybersecurity requirements essential to protect sensitive information.”
Principal Deputy Assistant Attorney General Brian M. Boynton stated: “Federal funding frequently comes with cybersecurity obligations, and contractors and grantees must honor these commitments. The Department of Justice will continue to pursue knowing violations of material cybersecurity requirements aimed at protecting sensitive personal information.”
Acting Inspector General Richard K. Delmar stated: “These vendors failed to meet their data integrity obligations in a program on which so many eligible citizens depend for rental security, which jeopardized the effectiveness of a vital part of the government’s pandemic recovery effort. Treasury OIG is grateful for DOJ’s support of its oversight work to accomplish this recovery.”
New York State Comptroller Thomas P. DiNapoli stated: “This settlement sends a strong message to New York State contractors that there will be consequences if they fail to safeguard the personal information entrusted to them or meet the terms of their contracts. Rental assistance has been vital to our economic recovery and the integrity of the program needs to be protected. I thank the United States Department of Justice, United States Attorney Freedman, and the United States Department of the Treasury Office of Inspector General for their partnership in exposing this breach and holding these vendors accountable.”
On October 6, 2021, the Deputy Attorney General announced the Department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyber fraud can be found here.
The United States’ investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds, and to receive a share of any recovery. The settlement agreements in this case provide for the whistleblower, Elevation 33, LLC, an entity owned by a former Guidehouse employee, to receive a $1,949,250 share of the settlement amounts. The case is captioned United States ex rel. Elevation 33, LLC v. Guidehouse Inc. et al., Case No. 1:22-cv-206 (N.D.N.Y.).
The investigation was a result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; Treasury OIG; and the Office of the New York State Comptroller. The United States was represented by Assistant United States Attorney Adam J. Katz and Trial Attorney J. Jennifer Koh.
Clive Insurance Salesperson Sentenced to 19 Years in Federal Prison for Defrauding Elderly Individuals and for Contempt of CourtRead the Press Release
DES MOINES, Iowa – A Clive man was sentenced on June 12, 2024, to 18.5 years in federal prison for wire fraud and an additional six months for criminal contempt of court. He also was ordered to pay over $2.4 million in restitution to the victims of his fraud.
According to public court documents and evidence presented at sentencing, Zachary James Flaherty, 48, conducted a vast fraud over the course of seventeen years. From 2006 to 2023, Flaherty defrauded over thirty individuals out of all or portions of their retirement savings and other monies—in all, Flaherty’s victims lost over $3 million. Flaherty’s victims were from Iowa, Kansas, Missouri, and Nebraska; nearly all the victims were elderly, with the oldest being ninety-three years old at the time of the fraud. Most of the victims had limited financial knowledge.
Flaherty developed close relationships with his victims—he took them out to eat, bought them gifts, and helped with chores around their house. At least six of Flaherty’s victims were recently widowed when he exploited them, and Flaherty assisted with funeral arrangements or related matters for multiple victims’ spouses.
To gain access to his victims’ monies, Flaherty lied to his victims about numerous matters, including information about the returns and bonuses they could receive by investing with him, their ability to make penalty-free withdrawals of their funds, and the losses they could incur. Once his victims had “invested” with him, he continued to misrepresent and conceal information about the returns the victims were earning, the amount of money victims had invested, and the costs and penalties associated with the investments.
Flaherty primarily used two approaches to defraud his victims. His first approach was to encourage his victims to write checks to him or one of his businesses and promise his victims that he would invest the funds on their behalf. Victims trusted Flaherty’s statements and wrote him numerous checks. But Flaherty did not invest the funds on his victims’ behalf as he had stated; instead, he spent the money on himself, his family, and his businesses.
Flaherty’s second approach was to invest his victims’ funds into annuities. Flaherty was licensed to sell annuities in multiple states, and by purchasing annuities for his clients, Flaherty received over $1 million in commission payments from insurance companies. To obtain annuities on his victims’ behalf, however, Flaherty submitted documents to insurance companies which contained false misrepresentations, including forged signatures for his victims.
Flaherty’s elderly victims were not financially situated to invest in annuities. Annuities are long-term investments which typically take years to fully vest. If the owner of the annuity withdraws or cancels the annuity before it vests, then the owner usually must pay penalties, taxes, and other fees. Flaherty misrepresented the extent of the penalties, taxes, and fees his victims would suffer by investing with him, and he repeatedly encouraged his victims to withdraw funds and cancel annuities. Taking Flaherty at his word, his victims withdrew money and cancelled annuities, resulting in victims suffering massive amounts of losses.
Numerous victims spoke at sentencing about how Flaherty’s actions had betrayed their trust in him, shattered their faith in other people, and left them with limited financial resources. Several victims lost nearly all their life savings; others can no longer afford medical or assisted-living care. Victims also reported suffering health problems as a result of the increased anxiety and stress caused by Flaherty’s crimes.
Flaherty’s conviction for criminal contempt of court resulted from his violations of court orders issued in February 2024. Those orders prohibited Flaherty from selling or dissipating his personal property, which could be used to pay some of the money back to victims. Yet, Flaherty sold and attempted to sell and conceal several assets in March and April 2024, including guitars. Evidence at sentencing established that since being charged with federal crimes in April 2023, Flaherty repeatedly violated court orders applicable to him.
“Elder financial fraud causes devastating losses to its victims. Zachary Flaherty’s actions targeting the retirement savings and fixed incomes these victims spent a lifetime earning were an unprecedented betrayal of the trust they placed in him. The severity of Flaherty’s 228 months’ sentence, and $2.4 million in restitution, only partially compensates for the deep financial harm caused by his conduct. The heartbreaking impact of this type of crime can leave victims fearful for the future and wondering who to trust. Some helpful keys to combat these crimes are accountability and awareness,” said United States Attorney Richard D. Westphal for the Southern District of Iowa.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa Insurance Division’s Fraud Bureau and the Federal Bureau of Investigation investigated this case, with assistance from the Ankeny Police Department, the Clive Police Department, the Des Moines Police Department, and the Iowa Department of Public Safety’s Division of Criminal Investigation.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at https://www.ic3.gov. To learn more about the Department of Justice elder justice efforts please visit the Elder Justice Initiative page: https://www.justice.gov/elderjustice.
Cherry Creek Man Sentenced for Abusive Sexual ContactRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Cherry Creek, South Dakota, man convicted of two counts of Abusive Sexual Contact. The sentencing took place on June 10, 2024.
Dana James Marshall, age 38, was sentenced to five years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Marshall was indicted by a federal grand jury in October of 2023. He pleaded guilty on March 11, 2024.
On April 15, 2022, Marshall invited his 18-year-old niece to his bedroom. She accepted his invitation and disrobed at his behest, but clearly told Marshall she did not want him to sexually touch her. Marshall nonetheless seized her by the ribs and groped her private body parts. This incident occurred in the Cherry Creek Community, which lies within the Cheyenne River Indian Reservation.
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 Cheyenne River Sioux Tribe Law Enforcement Service and the FBI. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Marshall was immediately remanded to the custody of the U.S. Marshals Service.
Buffalo man going back to prison on drug and gun chargesRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Victor Marshall, 51, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, cocaine and being a felon in possession of a firearm and ammunition, was sentenced to serve 156 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Pierre Richard Antoine, who is handling the case, stated that in June 2014, Marshall was sentenced to serve 130 months in federal prison and five years’ supervised release after being convicted of conspiracy to distribute 500 grams or more of cocaine. As a condition of supervised release, Marshall was ordered not to commit another federal, state, or local crime. In March 2022, Marshall was indicted by a federal grand jury on drug and gun charges, and subsequently admitted that he committed the conduct alleged in the indictment, violating his supervised release.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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Bronx Resident Pleads Guilty in Conspiracy Targeting Credit UnionsRead the Press Release
ALBANY, NEW YORK – Jerjuan Joyner, age 49, of the Bronx, New York, pled guilty today for his role in a bank fraud conspiracy that targeted credit unions all over the country since at least December 2021. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Joyner admitted that between at least December 2021 and April 2023, he was a member of a nationwide bank fraud conspiracy that targeted credit unions insured by the National Credit Union Share Insurance Fund. Many of the credit unions were members of a shared branching network, which allowed customers of member credit unions to withdraw funds from their accounts at other member credit unions by presenting an identification with their photograph, their account number, and the last four digits of their Social Security number. The network was designed to allow customers of localized credit unions easier access to their accounts when traveling throughout the country. However, according to the plea agreement, the conspirators exploited this network by creating fake identifications in the names of real credit union customers, but with photographs of other individuals, who conducted fraudulent transactions at shared branch member credit unions all over the country in exchange for drugs or a small portion of the stolen funds.
Joyner pled guilty today to conspiracy to commit bank fraud. He admitted that he was recruited by senior members of the conspiracy to drive individuals to credit unions in the Northern District of New York and elsewhere to fraudulently withdraw cash from customers’ accounts. Joyner admitted that the trips he drove resulted in fraudulent withdrawals of $120,998, with an additional nearly $15,000 in attempted fraudulent withdrawals.
When Joyner is sentenced by United States District Judge Mae A. D’Agostino, in Albany on October 22, 2024, he faces up to 30 years in prison, a term of supervised release of up to 5 years, and a fine of up to $1 million. Joyner will also be ordered to pay restitution in the amount of $120,998 to the victims of his crimes.
Joyner’s plea resolves the charges against him in a federal indictment returned last December. The indictment charges an additional 7 individuals with their roles in the bank fraud conspiracy, which allegedly involves more than $1 million in total losses.
The charges in the indictment are merely accusations as to the remaining defendants. The remaining defendants are presumed innocent unless and until proven guilty.
FBI Albany is investigating the case, with assistance from the FBI Field Offices in New York and Newark, and Resident Agencies in Westchester, New York; Garrett Mountain, New Jersey; and Fort Walton Beach, Florida. Additional assistance was provided by other law enforcement agencies, including Immigration and Customs Enforcement – Enforcement & Removal Operations (New York Field Office & Albany sub-office); U.S. Department of State Diplomatic Security Service (Buffalo Field Office & St. Albans Resident Office); U.S. Social Security Administration – Office of the Inspector General, the New York State Police; Cohoes Police Department; Colonie Police Department; Elmira Police Department; Corning Police Department; Plattsburgh Police Department; Florida law enforcement agencies including the Okaloosa County Sheriff’s Office and Escambia County Sheriff’s Office; law enforcement agencies in New Hampshire, including the Rochester Police Department, Manchester Police Department, Amherst Police Department; the Norwich, CT Police Department; law enforcement agencies in Massachusetts, including the Springfield, MA Police Department; the Pennsylvania State Police; the Delaware State Police; and law enforcement agencies in Maryland, including the Harford County Sheriff’s Office and Baltimore County Sheriff’s Office.
Assistant United States Attorney Benjamin S. Clark is prosecuting this case.
Bridgeport Man Admits Trafficking Guns from Georgia to ConnecticutRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that TYREE THOMAS, 39, of Bridgeport, pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to an offense relating to his illegal trafficking of firearms from Georgia to Connecticut.
According to court documents and statements made in court, Thomas’ criminal history includes felony convictions and he is prohibited from purchasing firearms. Between approximately August 2021 and March 2022, Thomas traveled to Georgia multiple times where, using a straw purchaser, he acquired at least 20 firearms. He then transported the firearms to Connecticut where he sold or transferred them to felons and others who were not licensed to possess them. Several of the firearms that Thomas acquired in Georgia have been recovered by law enforcement in Connecticut, including two that were recovered in connection with homicides.
Thomas pleaded guilty to crossing state lines with the intent to engage in the unlawful dealing of firearms, an offense that carries a maximum term of imprisonment of 10 years. A sentencing date is now scheduled.
Thomas was arrested on September 6, 2023. He is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren Clark and Rahul Kale. through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice 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 www.justice.gov/PSN.
Bradenton Man Sentenced to Additional Prison Term for Possessing Firearm During Police ChaseRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Dovantate Wright (26, Bradenton) to two years and six months in federal prison for possessing a firearm as a convicted felon. Wright entered a guilty plea on March 8, 2024. The federal sentence was imposed consecutively to a separate sentence of five and six months imposed in Manatee County.
According to court documents, on September 2, 2022, Wright was the front seat passenger of a vehicle driving in the wrong direction on a one-way road in Sarasota, Florida. Officers from the Sarasota Police Department stopped the vehicle, and Wright fled on foot into an auto parts store. Inside the store, Wright ran behind the counter into the back of the store where he stumbled into a product bin as he attempted to pull from his waistband a fully loaded Smith and Wesson model 40C .40 caliber pistol with one round in the chamber.
During an interview with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Wright admitted to possessing the firearm and to being a convicted felon. Wright previously served three years in Florida State Prison for aggravated assault on a law enforcement officer and grand theft of a motor vehicle. As a convicted felon, Wright is prohibited from possessing a firearm or ammunition under federal law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney David W.A. Chee.
Bogalusa Man Sentenced to 144 Months in Prison for Federal Drug and Firearm ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – JEROME WILSON (“WILSON”), age 29, a resident of Bogalusa, Louisiana, was sentenced on June 11, 2024 to 144 months in prison for drug and firearm violations, followed by five years of supervised release, and a mandatory $400 special assessment fee, after previously pleading guilty before U.S. District Judge Darrel James Papillion, to a four-count superseding indictment.
Count 1 charged WILSON with conspiring to distribute Fentanyl, in violation of Title 21, United States Code, Section 841(b)(1)(C) and 846. Count 2 charged WILSON with conspiring to possess firearms in furtherance of drug trafficking activity, in violation of Title 18, United States Code, Section 924(o). Count 3 charged WILSON with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). Finally, Count 4 charged WILSON with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, on December 6, 2022, Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) agents surveilling the 1900 block of Frenchmen Street in New Orleans saw WILSON driving a white Dodge Challenger with one passenger. Agents then saw WILSON, his passenger, and a third co-defendant apparently engaged in illegal narcotics transactions, all while possessing firearms. Soon after, WILSON took a firearm from the car and put it atop the right rear tire to allow easy access while selling drugs. WILSON was later arrested after a brief pursuit. Subsequently, officers obtained a state search warrant for the white Dodge Challenger and recovered a Sarsilmaz, Model Sar9, 9-millimeter pistol, from the center console. A criminal history check revealed that WILSON had two prior felony convictions and was not legally allowed to possess a firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Drug Enforcement Administration, and the New Orleans Police Department. The prosecution was handled by Assistant United States Attorney Maurice E. Landrieu, Jr. of the Narcotics Unit and Assistant United States Attorney Michael Trummel of the Violent Crime Unit.
Baytown man admits to making bomb threatsRead the Press Release
HOUSTON – A 37-year-old local man has entered a guilty plea to three counts of sending threatening communications through interstate commerce, announced U.S. Attorney Alamdar S. Hamdani.
Joshua Guadalupe Magana admitted to sending bomb threats on multiple occasions to the White House, FBI and other organizations over the course of several years. Law enforcement had previously warned him that making such threats is a crime and could subject him to imprisonment.
Specifically, Magana pleaded guilty to the charge related to a threat made June 4, 2019, when he called the FBI and said he would blow up the White House. “There is a bomb. I’m going to blow up the White House,” he stated and then hung up. Magana admitted to making the call and claimed he picked the White House because it was the most important building he could think of and wanted a “big, serious” response.
Magana contacted the White House directly Dec. 15, 2021, and sent an email with the subject line reading “Contact the President” and a message stating “Bomb the White House.” On Feb. 27, 2022, Magana contacted the White House again and sent a similar threatening email.
“We take all threats seriously,” said Hamdani. “People cannot convey their political or social disagreements through threats or violence.”
U.S. District Judge Lee H. Rosenthal will impose sentencing Oct. 2. At that time, Magana faces up to five years in federal prison.
He has been and will remain in custody pending that hearing.
Secret Service and FBI conducted the investigation. Assistant U.S. Attorney Heather Winter is prosecuting the case.
Bakersfield Man Pleads Guilty to $25 Million Tax Fraud SchemeRead the Press Release
FRESNO, Calif. — Miguel Martinez, 39, of Bakersfield, pleaded guilty today to conspiring to submit $25 million in fraudulent individual federal income tax returns, U.S. Attorney Phillip A. Talbert announced.
According to court records, from November 2019 through June 2023, Martinez was one of the leaders of a scheme to file hundreds of fraudulent tax returns that claimed millions of dollars in refunds. Martinez and others caused false wage and withholding information for individuals that supposedly worked at fake businesses to be submitted to the Internal Revenue Service. Federal agents determined that the individuals did not work at the businesses, the businesses were fake because the businesses never actually paid any withholdings to the IRS, and the purported owners were unaware of the businesses. Martinez and others then submitted fraudulent tax returns that were in the names of the individuals who supposedly worked at the fake businesses and claimed substantial refunds from the IRS.
As a result of the scheme, the IRS paid out $2.3 million in fraudulent tax refunds. When federal agents arrested Martinez and searched his three homes, he was found with another $750,000 in fraudulent tax refund checks, identification cards for more than 200 individuals, and multiple firearms and ammunition.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorneys Joseph Barton and Henry Carbajal III are prosecuting the case.
“Mr. Martinez orchestrated an elaborate scheme to steal approximately $25 million by filing hundreds of fraudulent federal income tax returns using fake businesses with false refund claims all while attempting to challenge the integrity of the U.S. tax system,” said IRS Criminal Investigation Oakland Field Office Acting Special Agent in Charge Michael Mosley. “His plea reinforces that IRS Criminal Investigation special agents and investigative staff are up to that challenge and committed to following the money and directing criminals to justice.”
Martinez is scheduled to be sentenced on Sept. 23, 2024. He faces a statutory maximum penalty of 10 years in prison and $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Martinez’s co-defendant in the case, Victor Cruz, who is a tax preparer in Bakersfield, is pending trial. Cruz is presumed innocent until and unless he is proven guilty beyond a reasonable doubt.
Armenian National Pleads Guilty to Assaulting an Officer at a Kern County Immigration Detention FacilityRead the Press Release
FRESNO, Calif. — Arsen Tonoyan, 46, formerly residing in Los Angeles, pleaded guilty today to assault on a federal officer or employee that inflicted bodily injury, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Tonoyan was a detainee at the U.S. Immigration and Customs Enforcement’s Golden State Annex detention facility in Kern County. On March 7, 2022, Tonoyan walked up to a detention officer and hit him multiple times causing the officer to fall to the ground. As a result of the attack, the officer suffered bodily injuries, including a concussion, cuts and swelling on his face, and shoulder pain. The officer sought medical attention for his injuries.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph D. Barton and Cody S. Chapple are prosecuting the case.
Tonoyan is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Sept. 16, 2024. Tonoyan faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Armed Waterbury Drug Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that KEVIN RIVERA, 29, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by five years of supervised release, for possessing a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on November 24, 2021, the Waterbury Police Department (WPD) established surveillance at Rivera’s residence in preparation for the execution of multiple state search warrants. Investigators observed Rivera exit his residence and then open doors to multiple vehicles in the parking lot in front of the building. Rivera removed a plastic bag from one of the vehicles, conduct what appeared to be drug transaction with an individual, and then drive away. When Rivera returned a short time later and investigators approached him, Rivera dropped a clear plastic bag containing approximately 46 bags of heroin/fentanyl. Rivera was arrested at that time.
Searches of Rivera’s residence and vehicles parked in front of his residence revealed more than 3,000 bags of heroin/fentanyl, a small quantity of cocaine, items used to process and package narcotics, a loaded Kel Tec Sub-2000 9mm caliber semiautomatic rifle with an obliterated serial number, an armor-plated bulletproof vest, and other items.
Rivera has been detained since his arrest. He pleaded guilty on March 11, 2024.
This matter was investigated by the Waterbury Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice 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