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13 June 2024
Beloit Man Sentenced to 7 1/2 Years for Fentanyl DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Darnell Isabell, 39, Beloit, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 7 ½ years in federal prison for distributing 40 grams or more of fentanyl. Isabell pleaded guilty to this charge on March 25, 2024. Isabell committed the instant offense while under federal supervision for a previous drug trafficking conviction. Judge Conley revoked that supervision and imposed an additional 18-month sentence to run consecutive to the sentence on the new conviction.
On January 11, 2023, law enforcement suspected that Isabell planned to sell fentanyl. Surveilling officers saw Isabell meet with a motorist on Oakwood Avenue, Beloit where Isabell delivered two ounces of fentanyl. Officers seized the substance that Isabell delivered to the motorist, and it tested positive for fentanyl. A subsequent search of Isabell’s home resulted in the recovery of additional amounts of fentanyl, cocaine, and $2,120 in U.S. currency.
Judge Conley observed that Isabell had spent most of his adult life selling drugs. Judge Conley noted that it was an aggravating factor that Isabell sold drugs while under federal supervised release from his 2017 cocaine distribution conviction. Isabell served 8 years in prison for that conviction, before being released to supervision in 2022.
The charge against Isabell was the result of an investigation conducted by the Rock County Sheriff’s Office, Beloit Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney Robert Anderson prosecuted this case.
Behavioral Health Companies, CEO, Pay Nearly $4.6 Million to Settle Allegations Related to Telehealth Services for Nursing Home ResidentsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, today announced that SUPPORTIVE CARE HOLDINGS, LLC, its related healthcare companies doing business in Connecticut and other states (“Supportive Care Companies”), and its CEO, JOSEPH “DOV” NEWMARK, have entered into a civil settlement agreement with the federal government and paid $4,595,739 to resolve allegations that they fraudulently and improperly submitted claims to Medicare and Connecticut Medicaid related to telehealth services provided to nursing home residents.
In addition to Supportive Care Holdings, LLC, the Supportive Care Companies are Supportive Care, LLC; Step Up Care, PC LLC; Supportive Care of Pennsylvania, LLC; Supportive Care Psychology of NJ, PC; Supportive Care Psychology of NY, PC; Sunrise Psychological Services, LLC; Supportive Behavioral Care of MA, LLC; Step Up Care of Tennessee, LLC; Supportive Care of Virginia, LLC; Supportive Care of Maryland, LLC; Supportive Care of New Hampshire, LLC; Supportive Care of South Carolina, LLC; Supportive Care of Michigan, LLC; and Supportive Care I of Rhode Island, PC. The related health care companies provide, among other things, psychological services to patients residing in skilled nursing facilities in Connecticut and other states. Newmark is the CEO for each of the Supportive Care Companies.
The government’s allegations against the Supportive Care Companies and Newmark involve improper and false claims submitted for “telehealth originating site facility fees.” A telehealth visit involves an exchange between a patient at an originating site (e.g. a nursing home) and a physician, or other qualified healthcare professional, at a distant site. Relevant billing rules and guidance, specifically Healthcare Common Procedure Coding System (HCPCS) code Q3014, allows payment for a “telehealth originating site facility fee” in addition to the professional fee for the underlying psychological service being provided. However, HCPCS code Q3014 should only be billed by the originating site (in this case, the nursing homes) when the facility provides administrative and clinical support for a patient receiving services via telehealth. The government alleges that the Supportive Care Companies and Newmark submitted or caused to be submitted improper and false claims for “telehealth originating site facility fees,” billed pursuant to HCPCS code Q3014, which should only have been billed by the nursing homes.
In addition, the government alleges that the Supportive Care Companies and Newmark submitted or caused to be submitted false or fraudulent claims for payment to Medicare and Connecticut Medicaid for psychological services allegedly provided to Medicare and Medicaid beneficiaries residing in nursing homes when those Medicare and Medicaid beneficiaries were not, in fact, residing in the nursing homes, but had been transferred to various hospitals and admitted as inpatients.
The settlement resolves False Claims Act and common law allegations for conduct occurring between 2019 and 2023.
“As telehealth plays an increasingly important role in our health care system, it is critical that health care providers follow the relevant rules and bill for such services accurately and honestly,” said U.S. Attorney Avery. “The U.S. Attorney’s Office will vigorously investigate any provider that submits fraudulent claims related to telehealth services, as this misconduct increases the cost of health care for all of us.”
“Our federal health care system relies on the basic principle that providers bill properly and follow the rules, and the taxpayers who fund the Medicare and Medicaid programs deserve nothing less,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “We are committed to protecting the integrity of those programs, and we will continue to pay particular attention to schemes that seek to undermine the legitimate delivery of telehealth services.”
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Richard M. Molot.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Bakersfield Man Indicted for Drug and Gun OffensesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Fabian Rodriguez, 35, of Bakersfield, charging him with being a felon in possession of ammunition and for possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Rodriguez was found in possession of three boxes of 9 mm ammunition after having been previously convicted of crimes punishable by a term of imprisonment exceeding one year. Rodriguez was also found in possession of 50 grams or more of methamphetamine with other items typically employed in the sale of controlled substances.
This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Chan Hee Chu is prosecuting the case.
If convicted of being a felon in possession of ammunition, Rodriguez faces a maximum statutory penalty of 15 years in prison and a fine of up to $250,000. If convicted of possession with the intent to distribute methamphetamine offense, he faces a maximum penalty of 20 years in prison and a $1 million fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Attorney General Merrick B. Garland Statement on the Supreme Court’s Decision in FDA v. Alliance for Hippocratic MedicineRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the Supreme Court’s decision in FDA v. Alliance for Hippocratic Medicine:
“The Justice Department is gratified that today’s unanimous decision in FDA v. Alliance for Hippocratic Medicine ensures that mifepristone remains available for women across the country on the terms approved by the Food and Drug Administration (FDA).
For more than two decades, and across five presidential administrations, millions of Americans have relied upon FDA’s expert judgment that mifepristone is safe and effective for termination of early pregnancies. Today, more than half of those who choose to terminate their pregnancies rely on mifepristone to do so.
I am proud of the work of lawyers at the Justice Department for vigorously defending the FDA’s expert judgment about the safety and efficacy of a medication that women have relied upon for more than twenty years. But our work does not end today. The Department will continue to work tirelessly to protect and advance reproductive freedoms under federal law.
As I said the day Dobbs was decided, women who reside in states that have blocked access to comprehensive reproductive care must remain free to travel to states in which that care is lawful. Under the First Amendment, individuals must remain free to inform and counsel each other about the reproductive care that is available across state lines. And, as the Office of Legal Counsel has concluded, the Comstock Act does not prohibit people from mailing mifepristone or misoprostol when they do not intend the recipient to use those drugs unlawfully.
The Department of Justice is committed to protecting reproductive freedom. We will continue to use every tool at our disposal to protect women’s access to mifepristone and other lawful reproductive care.”
Assault with Intent to Kill Charges Brought Against District Man for Shooting in NortheastRead the Press Release
WASHINGTON – Alante Partlow, 29, of Washington, D.C., was charged yesterday in D.C. Superior Court with several offenses arising from an April 23, 2024, shooting, announced U.S. Attorney Matthew M. Graves and Chief, Pamela A. Smith, of the Metropolitan Police Department. Partlow is detained pending the June 27, 2024, preliminary hearing before the Superior Court Judge Robert Okun.
Partlow was charged with one count of assault with intent to kill while armed for firing on the adult, and a second count of assault with intent to kill while armed for firing at the child in his effort to shoot the adult. He was also charged with aggravated assault while armed and possessing a firearm during each of the three crimes of violence.
According to the government’s evidence, at approximately 11:26 p.m. on April 23, 2024, the victim and a 5-year-old child were walking out of an apartment building in the Fort Totten neighborhood after the adult had argued with Partlow. Partlow followed the victims outside and then fired multiple shots at the adult victim. The adult tried to shield the child and sustained multiple gunshot wounds. The child also sustained injuries.
This case is being investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Assistant U.S. Attorney Michael Roberts.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Armed Man Sentenced for Attempted Kidnapping on the Blue Ridge ParkwayRead the Press Release
ASHEVILLE, N.C. – A Whittier, N.C. man has been sentenced following his conviction for possession of a firearm during an assault on the Blue Ridge Parkway, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Evan William Blankenship, 23, was sentenced to 120 months in prison followed by three years of supervised release after he pleaded guilty to possession and discharge of a firearm in furtherance of a crime of violence.
Debra A. Flowers, Acting Chief Ranger of the Blue Ridge Parkway, joins U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, in the early morning hours of September 28, 2023, L.P. and a second victim, L.M., were sitting in a parked vehicle at Water Rock Knob Overlook off the Blue Ridge Parkway. Blankenship drove his vehicle to where the victims were located and pointed a semi-automatic pistol at them. He tried to pull L.P. out of the vehicle by the hair and arm, threatened to harm both victims, and struck L.P. in the face, causing temporary hearing loss. Blankenship also fired his firearm into the air before pointing it again at the victims.
L.M. eventually convinced Blankenship to let them go, and the victims reported the incident to law enforcement. Shortly thereafter. L.P. informed investigators that she knew Blankenship through Snapchat and believed he had used Snapchat’s location-sharing feature to find her on the Blue Ridge Parkway.
Blankenship was arrested on October 11, 2023, and has remained in federal custody since. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King thanked the National Park Service for their thorough investigation and the Jackson County Sheriff’s Office for their assistance with the case.
Assistant U.S. Attorney Alex M. Scott, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Arapahoe woman convicted for aggravated child abuse, assault resulting in serious bodily injury, and assault with a dangerous weaponRead the Press Release
Kandace Sitting Eagle, 33, of Arapahoe, Wyoming, was convicted by a federal jury on Jun. 13, for aggravated child abuse, assault resulting in serious bodily injury, and assault with a dangerous weapon. The four-day trial was held before U.S. District Court Judge Alan B. Johnson, in Cheyenne.
According to trial evidence, on Dec. 12, 2023, an Arapahoe school resource officer conducted a welfare check on a 13-year-old student that had not been to school in over a month. He eventually found the child in a crawl space under the trailer where the parents, Kandace and Truman Sitting Eagle, were hiding the child. Based on the severity of his injuries, the child was immediately taken to Sage West Hospital in Riverton, and then transported via air ambulance to Primary Children’s Hospital in Salt Lake City, Utah. The investigation proved that the child had suffered weeks of physical beatings, isolation, starvation, and psychological abuse at the hands of Kandace and Truman.
Sentencing has been set for Aug. 29. Kandace Sitting Eagle faces no less than 10 years and up to life imprisonment, up to a $250,000 fine, and up to five years of supervised release.
Truman Sitting Eagle, 36, pleaded guilty to assault resulting in serious bodily injury on Apr. 8. His sentencing is scheduled for Aug. 6, in front of U.S. District Court Judge Alan B. Johnson in Cheyenne. He also faces no less than 10 years and up to life imprisonment, up to a $250,000 fine, and up to five years of supervised release.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors in both cases.
This crime was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Cameron J. Cook.
Case No. 24-CR-03
Anchorage man sentenced to 15 years for drug trafficking, gun chargesRead the Press Release
ANCHORAGE, Alaska – An Anchorage man was sentenced today to 15 years in prison for possessing and distributing controlled substances and possessing a firearm illegally.
According to court documents, in November 2020, Mauricio Martinez, 22, was a drug dealer operating in Anchorage selling illicit drugs via a social media platform. Law enforcement became aware that, on at least one occasion, the defendant carried a firearm while selling drugs. Martinez was indicted by a federal grand jury in August 2021 for distributing a controlled substance and for carrying a firearm during a drug trafficking crime.
In August 2022, law enforcement located the defendant driving a vehicle and attempted to arrest him, but he tried to flee and discard a firearm in the process. He was arrested and officers found $4,000 in cash on his person and another firearm, roughly 10,000 counterfeit Xanax and Percocet pills, nearly 7,000 fentanyl tablets and cocaine in his vehicle.
In June 2023, while Martinez was in the Anchorage jail awaiting trial, guards searched his cell and found a large knife and meth packaged for sale that he admitted were his.
Martinez pleaded guilty in September 2023.
“Mr. Martinez is a serious danger to the public and has shown a disregard for the law since he was a teenager, and even while he was incarcerated,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Keeping individuals like Mr. Martinez out of our communities is a priority for our office. We will continue to work with our law enforcement partners to investigate and prosecute individuals who pose a risk of public safety due to their actions.”
“Mr. Martinez utilized firearms while dealing deadly drugs, including illicit fentanyl, in our community,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “This sentencing sends a message that illegal drug distribution and violent criminal behavior will not be tolerated. The FBI will continue to work jointly with our law enforcement partners to aggressively pursue those who endanger the lives of Alaskans.”
The FBI Anchorage Field Office and Anchorage Police Department investigated the case as part of the FBI Safe Streets Task Force.
Assistant U.S. Attorney Tom Bradley prosecuted the case.
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12 Alleged Members of Drug Trafficking Organization Based in Philadelphia’s Fairhill Section Indicted on Narcotics and Gun ChargesRead the Press Release
PHILADELPHIA – At a news conference this morning, United States Attorney Jacqueline C. Romero announced that 12 alleged members of a drug trafficking organization based in Philadelphia’s Fairhill section have been indicted on dozens of narcotics and gun charges.
U.S. Attorney Romero discussed the case alongside Eric J. DeGree, Special Agent in Charge of ATF Philadelphia; First Deputy Commissioner John Stanford and Deputy Commissioner Frank Vanore of the Philadelphia Police Department; Christopher Nielsen, Inspector in Charge of the U.S. Postal Inspection Service’s Philadelphia Division; Nehemiah Haigler and James McCaffrey, Regional Directors of the Pennsylvania Attorney General’s Office Bureau of Narcotics Investigations; and U.S. Marshal Eric S. Gartner.
The indictment alleges that, from at least February 2023 through June 2024, a drug trafficking organization led by Wilfredo Avila sold significant quantities of packaged fentanyl, fentanyl pills, and cocaine in and around the Fairhill-Kensington area.
In addition to selling these narcotics, the Avila DTO routinely offered and sold firearms of all kinds to its drug dealer customers.
Information on the defendants, all residents of Philadelphia, and the charges they face is below.
Ten have been arrested, one awaits removal from another state, and one – Ahmed Perez – remains at large.
“People who illegally traffic in drugs and guns help unravel families and undermine entire communities,” said U.S. Attorney Romero. “I hope this takedown shows the U.S. Attorney’s Office’s commitment to tackling such critical public safety issues, and holding the perpetrators accountable for the harm they’ve caused to our city. I also hope it sends a message to all the other drug and gun traffickers out there. That message is… you’re next.”
“The ATF Philadelphia Field Division is committed to supporting the Philadelphia Police Department’s efforts to tamper the drug-fueled violence in the Kensington section of Philadelphia, and help the community there,” said ATF Special Agent in Charge DeGree. “Last week’s Operation Black Diamond is a concrete example of that commitment. It is also another example of our long history of working with our local, state, and federal partners to prevent, investigate and prosecute the crime that plagues many of our communities.”
“The indictments announced today mark a significant step forward in our ongoing battle against the epidemic of drug sales, use, and violence that has plagued our communities, especially in Kensington,” said Philadelphia Police Commissioner Kevin J. Bethel. “Our synergy with federal partners is vital in Mayor Parker's mission to eradicate these crimes, and to bring hope back to our Kensington communities. Ongoing collaboration with the ATF, U.S. Attorney's Office, and other local, state, and federal agencies will be instrumental in dismantling these dangerous organizations and restoring safety to our neighborhoods. I thank our LE colleagues for their partnership; and together, we are committed to continuing this united effort to protect our citizens and uphold the law.”
“The members of this organization allegedly trafficked weapons and drugs throughout Kensington. Every illegally-possessed firearm presents a threat to public safety, as those guns are often used in violent crimes,” Pennsylvania Attorney General Michelle Henry said. “I am grateful for the hard work of all the agencies who partnered in this investigation. Together, we will continue efforts to stop the trafficking of firearms and make Pennsylvania safer for all who live here.”
“Every day, Postal Inspectors work to protect the mail from being misused by criminals, including large scale Drug Trafficking Organizations,” said USPIS Inspector in Charge Nielsen. “When prevention and investigative efforts can come together with the efforts of other agencies to identify and charge individuals who distribute drugs throughout Philadelphia, it makes all our communities safer. I want to acknowledge the contributions of the officers and agents from the Philadelphia Police Department, the Pennsylvania Attorney General’s Office, the ATF, and the Postal Inspectors of the Philadelphia Division. I also want to acknowledge and thank the Assistant United States Attorneys who supported this investigation.”
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 is being prosecuted under a new criminal provision created in the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act includes the first federal statute, Title 18, United States Codes, Section 933, that was specifically designed to target the unlawful trafficking of firearms.
If convicted, the defendants face maximum possible sentences ranging from five years to lifetime imprisonment.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Philadelphia Police Department, the U.S. Postal Inspection Service, and the Pennsylvania Attorney General’s Office Bureau of Narcotics Investigation, with assistance from the U.S. Marshals Service, and is being prosecuted by Special Assistant United States Attorney David Osborne.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
A chart of the defendants and the charges against them:
Name
Age
Charges
Wilfredo Avila
30
▪ Attempt and conspiracy (1 count)
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
▪ Manufacture, distribute, dispense, possess a controlled substance (25 counts)
▪ Unlawfully engaging in the business of firearms (1 count)
▪ Unlawful shipment, transfer, receipt, or possession of a firearm by a felon (16 counts)
▪ Trafficking in firearms (1 count)
Chanel Diaz Oscar
48
▪ Attempt and conspiracy (1 count)
▪ Manufacture, distribute, dispense, possess a controlled substance (9 counts)
Zaida Diaz
59
▪ Attempt and conspiracy (1 count)
▪ Manufacture, distribute, dispense, possess a controlled substance (3 counts)
Marcelino Minaya Lebron
44
▪ Attempt and conspiracy (1 count)
Noel Arce
26
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
▪ Unlawfully engaging in the business of firearms (1 count)
▪ Unlawful shipment, transfer, receipt, or possession of a firearm by a felon (3 counts)
Abdul Ortiz
37
▪ Manufacture, distribute, dispense, possess a controlled substance (2 counts)
Ahmed Perez
28
▪ Manufacture, distribute, dispense, possess a controlled substance (1 count)
Juan Acosta
55
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
▪ Unlawfully engaging in the business of firearms (1 count)
▪ Unlawful shipment, transfer, receipt, or possession of a firearm by a felon (2 counts)
▪ Trafficking in firearms (1 count)
Angel Colon
35
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
▪ Unlawfully engaging in the business of firearms (1 count)
▪ Unlawful shipment, transfer, receipt, or possession of a firearm by a felon (1 count)
▪ Trafficking in firearms (1 count)
Alexander Roman Delgado
33
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
▪ Unlawful shipment, transfer, receipt, or possession of a firearm by a felon (1 count)
▪ Trafficking in firearms (1 count)
Angel Velez
33
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
▪ Unlawful shipment, transfer, receipt, or possession of a firearm by a felon (1 count)
Jose Rodriguez
30
▪ Conspiracy to commit offense or to defraud U.S. (1 count)
12 June 2024
White Swan Woman Pleads Guilty to Murder on the Yakama NationRead the Press Release
Yakima, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Tahsheena Stacy Sam, 35, of White Swan, Washington, pleaded guilty to Second Degree Murder in Indian Country for the murder of Destiny Lloyd, who was an enrolled member of the Yakama Nation. United States District Judge Mary K. Dimke accepted Sam’s guilty plea and scheduled a sentencing hearing for September 17, 2024, in Yakima, Washington.
In the plea agreement accepted by the court, and in information disclosed during court proceedings, on December 25, 2017, the victim, Destiny Lloyd, who was 23 years old at the time, was socializing with a group of friends. The Defendant, whom Lloyd did not know, also joined the group.
Later that evening, Sam, and others who were with her, decided to rob Ms. Lloyd. The group drove to an area near Harrah Road and Marion Drain Road on the Yakama Nation Indian Reservation. There, money was forcibly taken from Lloyd, and Lloyd was then left on the side of the road.
After the assault, members of the group became concerned that Lloyd might report the incident. They then drove back to where they left her and used a flashlight to follow her tracks in the snow. Sam found Lloyd. She then obtained a large wrench from another member of the group and used the wrench to strike Lloyd several times on the head. Sam and the others left Lloyd’s body where it was discovered by a passing motorist a few days later.
“My heart breaks for the victim and her family. Ms. Lloyd’s loss leaves a hole that cannot ever be filled,” stated U.S. Attorney Waldref. “This case involved a lengthy investigation and witnesses that were not always forthcoming with law enforcement. Yet, the FBI and Yakama Nation Tribal Police remained undeterred and continued investigating this case – following available leads, which ultimately led to Ms. Sam. While federal law enforcement often is unable to disclose to the public each step in an investigation, the U.S. Attorney’s office, FBI, and Yakama Nation have remained committed to securing justice for victims of violent crime, including for Ms. Lloyd and her family. We work tirelessly with our law enforcement partners to pursue those who cause harm in our community and to address the root causes leading to the crisis of murdered or missing Indigenous people.”
“It is hard to comprehend the wanton violence of this case,” said Kelly M. Smith, Assistant Special Agent in Charge of the FBI Seattle field office. “I am grateful that Ms. Sam has now taken responsibility for her role in Ms. Lloyd’s tragic death. Now the process of healing can begin for the loved ones of the victim. The FBI will continue working to ensure the safety of our state’s reservations.”
This case was investigated by the FBI and the Yakama Nation Tribal Police. It has been prosecuted by Assistant United States Attorneys Todd Swensen, Timothy J. Ohms, and Ian Garriques.
Charges remain pending for a co-defendant in this case. Those charges are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Westbrook Man Sentenced to 12 ½ Years for Possessing Child Sexual Abuse MaterialRead the Press Release
BANGOR, Maine: A Westbrook man was sentenced on Tuesday in U.S. District Court in Bangor for possessing child pornography.
Chief U.S. District Judge Lance E. Walker sentenced Michael Peterson, 39, to 150 months in prison followed by 10 years of supervised release.
According to court records, between December 2021 and August 2022, Peterson received and attempted to receive child sexual abuse material using the Telegram application. Peterson received the images from an individual using Telegram and paid the same individual in hopes of obtaining additional images.
Homeland Security Investigations (HSI) and the Maine State Police investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – referred to in legal terms as "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.
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Washington County Woman Sentenced to 600 Months in Federal Prison for Production of Child PornographyRead the Press Release
DAVENPORT, Iowa – A Riverside woman was sentenced yesterday to 600 months in federal prison for two counts of Production of Child Pornography, following a plea of guilty on an earlier date.
According to public court documents and evidence presented at sentencing, Abigail Margarete Knight, 36, produced child sexual assault material of two minor victims between July 2020 and May 2023. Knight used photos and videos of minors and sent the child sexual assault material to two men, one in Texas and the other in Missouri, through the use of cellular phones and internet chats.
After completing her term of imprisonment, Knight will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Washington County, Iowa, Sheriff’s Office, the Federal Bureau of Investigation, the Iowa Department of Criminal Investigations, and the ICAC Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
Vero Beach Resident Sentenced to over 15 Years in Federal Prison for Distributing FentanylRead the Press Release
MIAMI– On June 10, Sudiata Stinson, 47, of Vero Beach, Fla., was sentenced to 188 months in prison for distributing a mixture or substance containing a detectable amount of fentanyl, by U.S. District Judge Jose E. Martinez sitting in Miami.
On February 7, Stinson pleaded guilty to an indictment charging two counts of distributing a mixture or substance containing a detectable amount of fentanyl before U.S. Magistrate Judge Shaniek Maynard, sitting in Fort Pierce, Fla.
According to court documents filed in the case, following the fentanyl overdose death of a young Vero Beach woman, law enforcement began investigating Stinson as the source of supply. Over the next few months, in a joint investigation, Drug Enforcement Administration (DEA) and Indian River County Sheriff’s Office (IRCSO) orchestrated two purchases of fentanyl from Stinson, which led to his indictment for two counts of distributing fentanyl.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the DEA Miami Field Division, and Sheriff Eric Flowers of the IRCSO made the announcement. The case was prosecuted by Assistant U.S. Attorney Justin Hoover.
According to the DEA’s National Drug Threat Assessment, synthetic drugs, such as fentanyl, are poisoning the nation. Fentanyl is the deadliest drug threat the United States has ever faced, killing 38,000 Americans in the first six months of 2023 alone. Just one fentanyl pill can kill, as noted in DEA’s One Pill Can Kill campaign. Two milligrams of fentanyl is considered a potentially fatal dose and laboratory testing indicates seven out of 10 pills seized by the DEA contain a lethal dose of fentanyl. The public is encouraged to be cautious.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-CR-14040.
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Two Russia-Born U.S. Citizens Arrested for Conspiring to Send $500,000 Worth of Luxury Goods to RussiaRead the Press Release
WASHINGTON – An indictment was returned yesterday in the District of Alaska charging Sergey Nefedov, 40, of Anchorage, Alaska, and Mark Shumovich, 35, of Bellevue, Washington, with allegedly operating a scheme to illegally export nearly half a million dollars’ worth of snowmachines and associated parts from the United States to Russia without the required licenses and approvals, in violation of U.S. export laws. Nefedov and Shumovich were arrested yesterday morning in Alaska and Washington, respectively.
“As alleged in the indictment, the defendants engaged in a scheme to evade export restrictions by smuggling hundreds of thousands of dollars’ worth of snowmachines and associated parts to Russia,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This matter is the latest example of our commitment to hold accountable those who violate sanctions laws and our determination to impose costs on the Russian government for its unjustified invasion of Ukraine.”
“Violations of export laws carry significant consequences for perpetrators in the U.S. and abroad,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Our office will continue to work with the FBI, Homeland Security Investigations and the Department of Commerce to prosecute this case to the fullest extent of the law and ensure U.S. export restrictions are enforced.”
“The charges laid out in the indictment are serious offenses,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “The FBI will continue to work with our law enforcement partners to investigate those who subvert export laws to smuggle goods out of the United States.”
“Covertly selling snowmachines to Russia violates our export laws, regardless of whether the sales are direct or laundered through Hong Kong,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Today’s arrests are just the latest example of our aggressive efforts to enforce the export restrictions imposed on Russia following its brutal full-scale invasion of Ukraine.”
“This seizure of snowmachines and the coordinated investigation led to the disruption and identification of a transnational criminal network attempting to circumvent Russian sanctions,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in the Pacific Northwest. “Using our unique customs authorities, HSI works with its law enforcement partners, including U.S. Customs and Border Protection, to identify, search, and seize merchandise being exported contrary to law, and prosecute those responsible.”
As alleged in the indictment, between at least March 2022 and May 2023, Nefedov and Shumovich conspired with individuals doing business in Russia and Hong Kong to evade the U.S. export restrictions that were imposed on luxury goods to Russia pursuant to Executive Order 14068 following Russia’s full-scale, unlawful invasion of Ukraine on Feb. 24, 2022, by shipping snowmobiles and associated parts to Russia through an intermediary company in Hong Kong.
In furtherance of the conspiracy, a Russian national who owned a company selling snowmachines in Russia (Co-Conspirator 1, or CC-1) allegedly contracted with a Russian national doing business in Hong Kong (Co-Conspirator 2, or CC-2) for shipment of nearly $1 million worth of goods from Hong Kong to Russia. Separately, CC-1 allegedly created invoices for CC-2’s company to purchase snowmachines and other motorsport vehicles from Nefedov’s company, Absolut Auto Sales LLC. As alleged, CC-1 told a freight forwarder that he needed goods to “transit in a third country” from the United States because deliveries of equipment to Russia “have been stopped.”
According to the indictment, Nefedov and Shumovich then received quotes from U.S.-based snowmachine distributors and freight forwarders to purchase and ship snowmachines. As alleged, Nefedov forwarded those quotes to CC-1, who approved of quotes and instructed Nefedov on additional questions to pose to the U.S. distributors and freight forwarders. To fund the purchase of snowmachines, CC-1’s company allegedly wired funds to CC-2’s company in Hong Kong, which wired funds to Nefedov’s company, Absolut Auto Sales LLC. Nefedov used those funds to purchase snowmachines in the United States with the aid of Shumovich. According to the indictment, Nefedov and Shumovich told freight forwarders that the snowmachines would be going to Hong Kong, where they knew that a license was not required for export, thereby causing a freight forwarder to provide false information to U.S. authorities by concealing the end user and destination of the snowmachines.
Authorities seized all snowmachines related to this case. Nefedov and Shumovich are charged with the following offenses, which carry associated maximum penalties as follows: conspiracy to unlawfully export goods from the U.S. and defraud the U.S. (5 years in prison); false electronic export information activities (5 years in prison); smuggling (10 years in prison); unlawful export without a license in violation of the Export Control Reform Act (20 years in prison); and conspiracy to commit international money laundering (20 years in prison). Nefedov is also charged with money laundering and making a false statement in violation of the Export Control Reform Act, which both carry maximum penalties of 20 years in prison. The defendants face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Anchorage Field Office, Homeland Security Investigations, and the Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement are investigating the case.
Assistant U.S. Attorney Adam Alexander for the District of Alaska and Trial Attorney Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
These cases were coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Russia-Born U.S. Citizens Arrested for Conspiring to Send $500,000 Worth of Luxury Goods to RussiaRead the Press Release
An indictment was returned yesterday in the District of Alaska charging Sergey Nefedov, 40, of Anchorage, Alaska, and Mark Shumovich, 35, of Bellevue, Washington, with allegedly operating a scheme to illegally export nearly half a million dollars’ worth of snowmachines and associated parts from the United States to Russia without the required licenses and approvals, in violation of U.S. export laws. Nefedov and Shumovich were arrested yesterday in Alaska and Washington, respectively.
“As alleged in the indictment, the defendants engaged in a scheme to evade export restrictions by smuggling hundreds of thousands of dollars’ worth of snowmachines and associated parts to Russia,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This matter is the latest example of our commitment to hold accountable those who violate sanctions laws and our determination to impose costs on the Russian government for its unjustified invasion of Ukraine.”
“Violations of export laws carry significant consequences for perpetrators in the U.S. and abroad,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Our office will continue to work with the FBI, Homeland Security Investigations and the Department of Commerce to prosecute this case to the fullest extent of the law and ensure U.S. export restrictions are enforced.”
“Covertly selling snowmobiles to Russia violates our export laws, regardless of whether the sales are direct or laundered through Hong Kong,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Department of Commerce. “Today’s arrests are just the latest example of our aggressive efforts to enforce the export restrictions imposed on Russia following its brutal full-scale invasion of Ukraine.”
“These arrests serve as an example of the FBI’s determination to stop those individuals who allegedly export U.S. goods to foreign adversaries in violation of U.S. law,” said Executive Assistant Director Larissa L. Knapp of the FBI's National Security Branch. “Any attempt to circumvent U.S. laws, sanctions and regulations will not be tolerated, and the FBI will continue to work with our partners to counter any efforts to illegally ship U.S. goods to sanctioned nations.”
“The charges laid out in the indictment are serious offenses,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “The FBI will continue to work with our law enforcement partners to investigate those who subvert export laws to smuggle goods out of the United States.”
“This seizure of snowmachines and the coordinated investigation led to the disruption and identification of a transnational criminal network attempting to circumvent Russian sanctions,” said Special Agent in Charge Robert Hammer of Homeland Security Investigations (HSI)’s operations in the Pacific Northwest. “Using our unique customs authorities, HSI works with its law enforcement partners, including U.S. Customs and Border Protection, to identify, search and seize merchandise being exported contrary to law, and prosecute those responsible.”
As alleged in the indictment, between at least March 2022 and May 2023, Nefedov and Shumovich conspired with individuals doing business in Russia and Hong Kong to evade the U.S. export restrictions that were imposed on luxury goods to Russia pursuant to Executive Order 14068 following Russia’s full-scale, unlawful invasion of Ukraine on Feb. 24, 2022, by shipping snowmachines and associated parts to Russia through an intermediary company in Hong Kong.
In furtherance of the conspiracy, a Russian national who owned a company selling snowmachines in Russia (Co-Conspirator 1, or CC-1) allegedly contracted with a Russian national doing business in Hong Kong (Co-Conspirator 2, or CC-2) for shipment of nearly $1 million worth of goods from Hong Kong to Russia. Separately, CC-1 allegedly created invoices for CC-2’s company to purchase snowmachines and other motorsport vehicles from Nefedov’s company, Absolut Auto Sales LLC. As alleged, CC-1 told a freight forwarder that he needed goods to “transit in a third country” from the United States because deliveries of equipment to Russia “have been stopped.”
According to the indictment, Nefedov and Shumovich then received quotes from U.S.-based snowmachine distributors and freight forwarders to purchase and ship snowmachines. As alleged, Nefedov forwarded those quotes to CC-1, who approved of quotes and instructed Nefedov on additional questions to pose to the U.S. distributors and freight forwarders. To fund the purchase of snowmachines, CC-1’s company allegedly wired funds to CC-2’s company in Hong Kong, which wired funds to Nefedov’s company, Absolut Auto Sales LLC. Nefedov used those funds to purchase snowmachines in the United States with the aid of Shumovich. According to the indictment, Nefedov and Shumovich told freight forwarders that the snowmachines would be going to Hong Kong, where they knew that a license was not required for export, thereby causing a freight forwarder to provide false information to U.S. authorities by concealing the end user and destination of the snowmachines.
Authorities seized all snowmachines related to this case. Nefedov and Shumovich are charged the following offenses, which carry associated maximum penalties as follows: conspiracy to unlawfully export goods from the United States and defraud the United States (five years in prison); false electronic export information activities (five years in prison); smuggling (10 years in prison); unlawful export without a license in violation of the Export Control Reform Act (20 years in prison); and conspiracy to commit international money laundering (20 years in prison). Nefedov is also charged with money laundering and making a false statement in violation of the Export Control Reform Act, which both carry maximum penalties of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, HSI and Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement are investigating the case.
Trial Attorney Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorney Adam Alexander for the District of Alaska are prosecuting the case.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
View the indictment here
Troy Felon Pleads Guilty to Selling Fentanyl and Illegally Possessing a FirearmRead the Press Release
ALBANY, NEW YORK – Jashene Austin, age 29, of Troy, New York, pled guilty today to distributing fentanyl and illegally possessing a firearm as a felon.
United States Attorney Carla B. Freedman and Bryan Miller, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Austin admitted that on August 11, 2023, he sold, to another person, 50 grams of fentanyl and a semi-automatic pistol. A prior felony conviction for attempted burglary prevented Austin from legally possessing the firearm in New York.
Austin faces a minimum term of 5 years and up to 40 years in prison, a fine of up to $5 million, and a term of post-imprisonment supervised release of at least 4 years and up to life, when he is sentenced on October 22, 2024, by United States District Judge Mae A. D’Agostino.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
ATF investigated this case with assistance provided by the Troy Police Department. Assistant U.S. Attorney Emmet O’Hanlon is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Toppenish Man Sentenced to Federal Prison for Violent Armed RobberyRead the Press Release
Yakima, Washington - Chief United States District Judge Stanley A. Bastian sentenced Eduardo Valencia, age 42, of Toppenish, Washington, to 162 months in federal prison on charges of Robbery Affecting Commerce and Using, Carrying, or Brandishing a Firearm During a Crime of Violence. Valencia was convicted of those crimes on March 6, 2024, following a jury trial. Chief District Judge Bastian also imposed 5 years of federal supervision after Valencia is released from prison.
According to court documents and information disclosed at trial and sentencing, on November 18, 2020, Valencia and an accomplice walked into the La Milpa Market in Yakima, Washington. Valencia and the accomplice pulled out firearms and demanded money from the clerk, whom they threatened to kill. Valencia and the accomplice then ran behind the counter, fought with the clerk, and ultimately pistol-whipped the clerk. Valencia and the accomplice ran out of the store with approximately $10,000. Both men were masked during the robbery, and Valencia was later identified through, among other things, DNA on a glove that he dropped during the fight with the clerk.
“All people in Eastern Washington deserve to be safe at work. Mr. Valencia’s violent robbery and assault on a store clerk caused lasting trauma that will continue even after this case concludes,” stated United States Attorney Vanessa R. Waldref. “My office is committed to safeguarding our neighborhoods and communities by aggressively prosecuting those who resort to violence.”
“Mr. Valencia’s actions clearly warranted this sentence,” said ATF Seattle Special Agent in Charge Jonathan Blais. “Using a firearm in the commission of an already violent crime only further increases the danger to those involved, and to the public in general.”
This case was investigated by the ATF and Yakima Police Department. It was prosecuted by Assistant United States Attorney Tom Hanlon.
Titusville Man Pleads Guilty to Interstate Firearms Parts Theft ConspiracyRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Chad Earl Cotsamire (44, Titusville) today pleaded guilty to conspiracy to transport stolen property in interstate commerce. Cotsamire faces a maximum penalty of five years in federal prison. Cotsamire has agreed to forfeit $190,314.83, the proceeds of the conspiracy.
According to the plea agreement, Cotsamire was an employee of a firearms and firearms parts manufacturer. Between September 2019 and June 2022, at the direction of co-conspirators, Cotsamire stole firearms parts from his employer, and transported those firearms parts to buyers across state lines. Cotsamire personally obtained $190,314.83 as a result of the conspiracy.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Noah P. Dorman.
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.
Texas Man Sentenced for Witness TamperingRead the Press Release
United States Attorney Susan Lehr announced that Richard Garza, 61, of Edinburg, Texas, was sentenced on June 12, 2024, in federal court in Lincoln, Nebraska for tampering with a witness. Senior United States District Judge John M. Gerrard sentenced Garza to 66 months’ imprisonment. There is no parole in the federal system. After Garza’s release from prison, he will begin a 3-year term of supervised release.
Garza was convicted after a jury trial in October 2023, of tampering with a witness. Evidence presented at trial showed Garza attempted to bribe a witness into testifying falsely on his behalf at his trial when both Garza and the witness were incarcerated in the Saline County Jail. Garza used a jail text messaging system to communicate with the witness. Garza had a relative put money on the witness’ texting account, and Garza purchased various jail commissary items for the witness, at the witness’ request, such as food and clothing items. All of this was done to get the witness to testify that Government witnesses lied about their dealings with Garza. The witness could not truthfully testify about this, because she had no independent knowledge regarding Garza’s dealings or lack of dealings with the other witnesses.
At the time of trial, Garza was also charged with conspiracy to distribute methamphetamine and cocaine, and a separate count of witness tampering. Garza was acquitted on the second witness tampering charge, and the jury was unable to reach a verdict on the conspiracy charge. The conspiracy charge was later dismissed.
This case was investigated by the Lincoln/Lancaster County Drug Task Force and the Saline County Sheriff’s Department.
Statement from Attorney General Merrick B. GarlandRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland regarding the U.S. House of Representatives’ vote on H. Res. 1292:
“It is deeply disappointing that this House of Representatives has turned a serious congressional authority into a partisan weapon. Today’s vote disregards the constitutional separation of powers, the Justice Department’s need to protect its investigations, and the substantial amount of information we have provided to the Committees.
I will always stand up for this Department, its employees, and its vital mission to defend our democracy.”
Springfield, Massachusetts Man Sentenced to Five Years in Prison for Drug and Gun CrimesRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on June 10, 2024, Keniel Santiago, 21, of Springfield, Massachusetts, was sentenced by United States District Judge Christina Reiss to a term of 60 months’ imprisonment to be followed by a three-year term of supervised release. Santiago previously pleaded guilty to conspiring to distribute heroin and crack cocaine in Vermont between September 2020 and March 2021 and aiding and abetting making false statements in connection with the acquisition of a firearm in Vermont in January 2021.
According to court records, Santiago worked with other people to bring heroin and crack cocaine from Springfield, Massachusetts to Bennington, Vermont where they would sell the illegal drugs. Santiago also arranged for one of his co-conspirators to purchase a handgun for Santiago from a dealer in Vermont. In doing so, Santiago’s co-conspirator lied to the firearms dealer, saying the gun was for them and not for Santiago. Santiago knew that his associate had to lie to make the purchase. In exchange for the gun, Santiago paid them in money and drugs.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of Homeland Security Investigations, the Bennington Police Department, the Vermont State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted by Assistant U.S. Attorneys Joseph Perella and Colin Owyang. Santiago was represented by Ian Carleton, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Sioux Falls Man Charged with Multiple Counts of Child PornographyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Sioux Falls, South Dakota, man for six counts of Attempted Production of Child Pornography, three counts of Production of Child Pornography, and seven counts of Transfer of Obscene Materials to Minors.
Justin Preuschl, age 27, was indicted in June of 2024. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 7, 2024, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $1,600 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that starting in October of 2023 and continuing in 2024, Preuschl engaged in sexually explicit communications with multiple juvenile female victims. Preuschl pretended to be a 15-year-old male and pressured the victims into sending him sexually explicit materials. Preuschl also sent pictures of male genitals to the victims. He was employed as a teacher at Whittier Middle School in Sioux Falls at the time of many of the charged offenses.
The charges are merely accusations and Preuschl is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The investigation is ongoing. If you or someone you know has had contact with the Snapchat accounts cpiper9696, justinpreuschl1, swilliams69420, swilliams420696, justin99696, or justin9996, or cambam7276 on TikTok, call the HSI Tipline at 1-877-4-HSI-TIP. The public can also contact [email protected].
The investigation is being conducted by Homeland Security Investigations, Sioux Falls Police Department, South Dakota Division of Criminal Investigation, and the North Liberty Iowa Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Preuschl was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Seventeen Federal Agencies Recognize Decade of Federal Progress Addressing Elder AbuseRead the Press Release
At a meeting of the Elder Justice Coordinating Council (EJCC) on Wednesday, June 12, 17 federal agencies including the Justice Department and the Department of Health and Human Services (HHS) will look back on a decade in which the federal government has significantly expanded efforts to combat elder abuse, neglect, and exploitation — including in the areas of enforcement, public education, training, interagency collaboration, research, and support for older adults who experience or are at risk of experiencing abuse.
“We know that the vast majority of elder abuse cases go unreported. And that too many victims remain unseen,” said Attorney General Merrick B. Garland. “That is why the Department of Justice has aggressively targeted perpetrators of elder fraud and abuse, while providing victims with the support they need. In the last five years, the Department has pursued more than 1,500 criminal and civil cases involving conduct that targeted or disproportionately affected older adults. We have provided services to more than 1.5 million older victims. And we have returned hundreds of millions of dollars to elder fraud victims. The Elder Justice Coordinating Council has played a key role in our work.”
“The Biden-Harris Administration is committed to supporting the health, well-being, and independence of older adults and to advancing equity for all Americans. Elder justice is a crucial element of both,” said HHS Secretary Xavier Becerra. “Today, we celebrate the progress we have made advancing elder justice. But we will not rest until every older person lives with dignity and without fear of abuse or neglect.”
“We know that it will take an all-of-government approach to make our shared vision of elder justice and community inclusion a reality, and in the last decade, the federal response to elder abuse has become more robust and coordinated,” said Alison Barkoff, who leads the Administration for Community Living. “It is incredible to reflect on the progress we have made in the years since the EJCC first convened. We have a lot of progress to build upon and so many opportunities to do more. The work of advancing elder justice has never been more important, or more urgent.”
The EJCC was established by the 2010 Elder Justice Act to coordinate federal activities related to elder abuse, neglect, and exploitation across the federal government. Today’s meeting looked back on accomplishments in the decade since the EJCC adopted Eight Recommendations for Increased Federal Involvement in Addressing Elder Abuse, Neglect, and Exploitation as a common set of priorities to guide federal efforts. Highlights include:
- HHS’ Administration for Community Living awarded the first-ever federal formula grants to support state adult protective services (APS) programs and established the first-ever federal regulations to improve quality and consistency of APS services. Until recently, APS programs had been funded and administered wholly at the state or local level.
- The Justice Department expanded its critical efforts to identify and combat transnational elder fraud schemes and, over just the past five years, has pursued over 1,500 criminal and civil cases involving conduct that targeted or disproportionately affected older Americans. It also significantly enhanced the capacity of state and local elder justice professionals to identify, investigate, and address elder abuse, neglect, and financial exploitation.
- The Justice Department, FBI, U.S. Postal Inspection Service, and five other federal law enforcement agencies undertake an annual Money Mule Initiative, targeting networks of individuals through which international fraudsters obtain proceeds of fraud schemes. These individuals, sometimes referred to as money mules, receive money from fraud victims and forward the illicit funds, often to overseas perpetrators. Since 2020, U.S. law enforcement has taken to address over 14,000 money mules through the annual initiative; enforcement actions have occurred in every state in the country.
- The HHS’ Administration for Community Living developed the National Adult Maltreatment Reporting System (NAMRS), a first-of-its-kind effort to systematically collect from APS programs across the country standardized data about the incidence of elder maltreatment. Participation is voluntary, but all states, territories, and the District of Columbia submit data each year.
- The Social Security Administration (SSA) launched Slam the Scam Day in 2020 to raise awareness about government imposter scams. In addition, SSA has created a variety of resources to train its employees, representative payees, and others on to recognize elder abuse and financial exploitation.
- The Federal Trade Commission established the Senior Scams Prevention Advisory Group of government partners, consumer advocates, and industry representatives to collaborate, develop ideas, share suggestions, and insights and identify actions that can be taken to help older adults spot, avoid, and report scams. The advisory group’s four subcommittees focus on expanding consumer education efforts; improving industry training on scam prevention; identifying innovative or high-tech methods to detect and stop scams; and developing research on consumer or employee engagement to reduce fraud.
In addition to leaders from HHS and the Justice Department, speakers at today’s EJCC meeting will include four pioneers of the elder justice movement whose hard work has made the progress of the last decade possible:
- Marie-Therese Connolly, President, RISE Collaborative; Former Coordinator, Elder Justice Initiative and Former Senior Trial Counsel, Civil Fraud Section, Commercial Litigation Branch, Civil Division, Justice Department
- Kathy Greenlee, Senior Director of Elder Justice Initiatives, Advancing States and Former Assistant Secretary for Aging, Administration for Community Living, HHS
- Sidney Stahl, former Chief, Individual Behavioral Processes Branch, National Institute on Aging, National Institutes of Health
- Edwin Walker, former Deputy Assistant Secretary for Aging at HHS’ Administration for Community Living.
By statute, the EJCC is chaired by the HHS Secretary, and the Attorney General is a permanent member. HHS has assigned responsibility for implementing the EJCC to the Administration for Community Living. Since it was created, the EJCC has grown from nine to 17 members, with each new agency bringing unique knowledge and resources to address the complex issue of elder maltreatment.
Research shows that at least one in 10 older adults who live in the community experiences some form of maltreatment each year — and this is likely an undercount, because only one in 14 cases is reported. People who experience abuse have higher rates of depression, hospitalization, and institutionalization — and they are more likely to die prematurely. They also may experience deteriorated family relationships, diminished autonomy, and institutionalization as the direct result of maltreatment.
Sanostee Man Sentenced for Voluntary ManslaughterRead the Press Release
ALBUQUERQUE – A Sanostee man was sentenced to 144 months in prison after pleading guilty to the beating death of his friend during a drunken altercation.
There is no parole in the federal system.
According to court documents, on June 8, 2022, John Doe went to the residence of Tyrone Atcitty Nez, 34, an enrolled member of the Navajo Nation, to assist with repairing a water heater. During the visit, John Doe and Nez were drinking together and rough housing.
At one point, John Doe stood up from a seated position, and Nez punched him in the face, knocking him unconscious and causing him to fall to the floor. While John Doe lay unconscious and unresponsive on the floor, Nez proceeded to kick him in the face and torso approximately 5 to 10 times while wearing work boots until he noticed Doe was bleeding profusely from his nose and mouth.
Worried Doe would choke, Nez turned him onto his side and exited the residence to ask neighbors to call 911. The Navajo Department of Criminal Investigations responded, and Nez admitted to punching and kicking Doe.
Doe died at Nez’s residence from the head injuries inflicted. The medical examiner listed the cause of death as blunt head trauma, with contusions, fractures, internal bleeding, and brain swelling.
After completing his term of imprisonment, Nez will be required to serve five years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorneys Brittany DuChaussee and R. Eliot Neal are prosecuting the case.
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Roofing Company Principal Sentenced to Four Months in Prison for Failing to Protect an Employee Who Fell to His DeathRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSE LEMA, a/k/a “Jose Lema Mizhirumbay,” the founder and principal of ALJ Home Improvement, Inc., a New York roofing company, was sentenced today to four months in prison by U.S. Magistrate Judge Judith C. McCarthy for willfully violating Occupational Safety and Health Administration (“OSHA”) regulations, resulting in the death of an employee (“Victim-1”) in New Square, New York, on February 8, 2022. LEMA previously pled guilty to one count of willfully violating OSHA regulations, resulting in the death of an employee on February 26, 2024.
U.S. Attorney Damian Williams said: “Jose Lema endangered the safety of his workers by disregarding regulations and failing to ensure his employees used fall protection systems. This conduct led to the death of a roof worker on a construction site. Today’s sentence should send a message to small businesses that failure to comply with safety regulations endangers workers and can lead to unnecessary and preventable tragedy, and this Office will hold you accountable.”
According to the allegations contained in the Information, court filings, and statements made during court proceedings:
On the morning of February 8, 2022, LEMA sent Victim-1 and three other ALJ employees to install a roof on a three-story multi-family apartment building under construction in New Square, New York. LEMA failed to protect his employees from fall hazards by having them work on the roof of the building without fall protection. After ascending a ladder to the roof, Victim-1 fell to the ground and died from his injuries.
Victim-1’s deadly fall was not the first time an employee of LEMA and ALJ fell to his death at one of ALJ’s worksites or that ALJ employees were exposed to fall hazards. The first fatal fall, on February 27, 2019, involved an ALJ employee who slipped off the roof of a newly constructed three-story home in Kiamesha Lake, New York. During the time between the two employees’ deaths, OSHA investigated and issued numerous citations to ALJ relating to six other ALJ worksites for failure to ensure employees were using fall protection systems. Even after Victim-1’s death, OSHA investigated yet another ALJ worksite and issued citations to ALJ for failing to ensure employees were using fall protection.
In imposing LEMA’s sentence, Judge McCarthy observed that Victim-1’s death was “avoidable” and noted LEMA’s repeated failures to comply with fall protection regulations after the first ALJ employee’s death from falling from a roof.
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In addition to the prison term, LEMA, 41, of Nanuet, New York, was sentenced to one year of supervised release.
Mr. Williams praised the outstanding work of OSHA; the Department of Labor, Office of the Inspector General; and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Margery Feinzig is in charge of the prosecution.
Rochester sex offender pleads guilty to new child pornography chargesRead the Press Release
Rochester, N.Y.-U.S. Attorney Trini E. Ross announced today that Gregory Pum, 48, of Rochester, NY, pleaded guilty before U.S. Magistrate Judge Marian W. Payson to possession of child pornography by an individual with a prior sex offense conviction, which carries a mandatory minimum penalty of 10 years in prison, a maximum of 20 years, and a fine of $250,000.
Assistant U.S. Attorneys Nicholas M. Testani and Meghan K. McGuire, who are handling the case, stated that in January 2014, Pum was convicted in Monroe County Court of Possessing Sexual Performance by a Child Less than 16, and sentenced to serve six months in jail, followed by 10 years’ probation. Pum violated his probation terms and was resentenced to prison. He was discharged from parole on May 31, 2016.
In May 2022, law enforcement received two cybertips from the National Center for Missing and Exploited Children (NCMEC), that a user of an email account, later determined to belong to Pum, had uploaded 29 images and a video of child pornography to a file sharing site. Investigators later received seven additional cybertips related to the same email account. In June 2022, a search warrant was executed at Pum’s residence, during which electronic devices that contained images of child pornography were seized. On March 11, 2024, while Pum was on pretrial release, law enforcement executed another search warrant at his residence after receiving two additional NCMEC cybertips. An iPhone was seized and found to contain 19 images and one video of child pornography.
The plea is the result of an investigation by the New York State Police, under the direction of Major Miklos Szoczei III, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, and the National Center for Missing and Exploited Children.
Sentencing is scheduled for September 20, 2024, before U.S. District Judge Charles J. Siragusa.
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Pontotoc County Resident Pleads Guilty to Assault in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brenden Kaleb Rains, age 25, of Pontotoc County, Oklahoma, entered a guilty plea to one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country and one count of Assault Resulting in Serious Bodily Injury.
The Indictment against Rains alleged that on August 29, 2023, Rains attacked an individual with a dangerous weapon, intending to do harm, and caused that individual serious bodily injury. The crimes occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Chickasaw Nation Lighthorse Police and the Bureau of Indian Affairs.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Rains was remanded to the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Kevin Gross represented the United States.
Plymouth Man Sentenced to 15 Years for Heroin and Fentanyl Trafficking in Central MaineRead the Press Release
BANGOR, Maine: A Plymouth man was sentenced today in U.S. District Court in Bangor for conspiracy to distribute and possession with intent to distribute controlled substances.
Chief U.S. District Judge Lance E. Walker sentenced Adam Johnson, 32, to 180 months in prison to be followed by five years of supervised release. Johnson was found guilty by a federal jury following a two-day trial in January 2024.
According to evidence presented at trial, between June 2017 and February 2018, Johnson participated in a conspiracy to traffic fentanyl in central Maine. Johnson would travel out of state to meet the source and pick up heroin and fentanyl that he would then bring back to Maine to package and sell to dealers. The amount of fentanyl exceeded 400 grams. Just 2 milligrams of fentanyl is a potentially lethal dose.
The U.S. Drug Enforcement Administration (DEA) and Somerset County Sheriff’s Office investigated the case.
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Pittsburgh Man Sentenced to 15 Years in Prison for Committing Series of Armed RobberiesRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court on June 10, 2024, to 180 months of incarceration, to be followed by three years of supervised release, and ordered to pay $26,583.43 in restitution on his conviction of robbery and firearms violations, United States Attorney Eric G. Olshan announced today.
United States District Judge Robert J. Colville imposed the sentence on Richard James, 33.
According to information presented to the Court, in April and May of 2021, James committed a series of armed robberies of cellular phone stores in the Pittsburgh area, during each of which James brandished a pistol at store employees. During one robbery, James ordered a store employee to the ground at gunpoint before demanding that the employee put cell phones in his bag. At another robbery, James rushed an employee as she was entering the back storage area of the store and then dragged her into the room. While holding that employee at gunpoint, James demanded that a second employee fill his bag with cell phones. The Court was also informed that James was found in illegal possession of a firearm in August 2021. As a previously convicted felon, James is prohibited under federal law from possessing a firearm or ammunition.
“The successful investigation and prosecution of Richard James for his commission of several violent armed robberies was a collaborative effort between our office, the ATF, Pittsburgh Bureau of Police, Swissvale Police Department, and Wilkinsburg Police Department,” said U.S. Attorney Olshan. “Among the results of that collaboration is that James will be spending the next decade and a half in federal prison. The United States Attorney’s Office will continue to work with our law enforcement partners at the federal, state, and local levels to help protect our communities from gun violence and prosecute those who attempt to carry out such crimes.”
“Stopping firearms-related violent crime and bringing justice for its victims is core to ATF’s mission,” said Eric DeGree, Special Agent in Charge of the ATF Philadelphia Field Division. “I hope the sentencing of Richard James brings closure and helps restore a sense of security to his victims and the communities he terrorized.”
Assistant United States Attorney Douglas C. Maloney prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, Pittsburgh Bureau of Police, Wilkinsburg Police Department, and Swissvale Police Department for the investigation leading to the prosecution of James.
Philadelphia Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. - A Philadelphia man pleaded guilty today to possession with intent to distribute methamphetamine.
According to court documents, William Charles Clemmons, Jr., 40, was indicted by a federal grand jury and pleaded guilty to one count of possession with intent to distribute methamphetamine.
Clemmons is scheduled to be sentenced on September 11, 2024, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Assistant Special Agent in Charge Anessa Daniels-McCaw of the Drug Enforcement Administration made the announcement.
The Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Philadelphia Police Department are investigating the case.
Assistant U.S. Attorney Samuel Goff is prosecuting the case.
Pharmacy Owner Sentenced for $1M Health Care Fraud SchemeRead the Press Release
A California man was sentenced today to two years in prison for submitting more than $1 million in false and fraudulent claims to Medicare for prescription drugs that were never dispensed to beneficiaries.
According to court documents, Paul Mansour, 56, of Sierra Madre, was a pharmacist who co-owned Mansour Partners Inc., doing business as Best Buy Drugs (Best Buy). From January 2017 to July 2022, Mansour created fake patient profiles in the Best Buy pharmacy’s digital filing system using fictitious names, dates of birth, and addresses. Mansour added fraudulent prescriptions to the fake patient profiles and then submitted false and fraudulent claims to Medicare for those prescriptions in the name of actual Best Buy patients. In doing so, Mansour billed Medicare for fraudulent prescriptions that were never dispensed to beneficiaries.
Mansour pleaded guilty on April 5, 2023, to one count of health care fraud.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Acting Assistant Director in Charge Krysti Hawkins of the FBI Los Angeles Field Office; and Special Agent in Charge Timothy DeFrancesca of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorney Matthew R. Belz of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Passaic County Man Sentenced to 125 Months in Prison for Possessing Fentanyl and Firearm in Furtherance of Drug TraffickingRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 125 months in prison for possessing fentanyl for distribution and possessing a firearm in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced.
Jessie Mayfield, 61, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of being a previously convicted felon in possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
On Aug. 24, 2021, Mayfield possessed a quantity of fentanyl that was packaged for distribution, with the intent to sell it. He also possessed a Ruger .22 caliber pistol, along with a box containing 95 .22 caliber long rifle cartridges.
In addition to the prison term, Judge Padin sentenced Mayfield to three years of supervised release.
U.S. Attorney Sellinger credited the members of the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri Jr.; Paterson Police Department, under the direction of Officer in Charge Isa Abbassi; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Ross A. Marchetti, Newark Field Division, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Cybercrimes Unit.
Oregon Check Casher Found Guilty for Role in Payroll Tax SchemeRead the Press Release
PORTLAND, Ore.—A federal jury in Portland found the operator of a local chain of check cashing businesses guilty today for his role in a multiyear scheme to obstruct the IRS from collecting payroll and income taxes on construction workers’ wages.
David A. Katz, 48, of Tualatin, Oregon, was found guilty of conspiracy to defraud the United States and filing false currency transaction reports with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
“This defendant’s efforts to help others circumvent their tax responsibilities was thwarted thanks to the dedicated criminal investigators at the IRS. Business owners who abuse the system and help others hide taxable income will be held accountable,” said Natalie Wight, U.S. Attorney for the District of Oregon.
“Our tax system is based on the honesty and integrity of taxpayers who understand that taxes fund the common good. However, there are some, like Mr. Katz, who choose to line their own pockets at the expense of their friends and neighbors,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (CI), Seattle Field Office. “Mr. Katz’s conviction by a jury of his peers emphasizes the fact that no one is above paying their fair share, and shows that CI is committed to investigating those who choose to undermine their communities.”
According to court documents and trial testimony, from January 2014 through December 2017, Katz, the compliance officer of Check Cash Pacific, Inc., conspired with others in the construction industry to defraud the United States by facilitating under-the-table payments to construction workers. To carry out the scheme, sham construction companies were created and used to cash more than $177 million in payroll checks at different Check Cash Pacific locations. The cash was used to pay construction workers under-the-table, with no taxes being withheld or reported to the IRS.
Construction companies would notify Katz when they planned to bring checks into one of his check cashing locations so that Katz could ensure he had enough cash on hand to complete the transaction. Hundreds of thousands of dollars of payroll checks were cashed daily and Katz was aware that at least one of his co-conspirators used a false name and social security number.
For his role in the scheme, Katz received a 2% commission on each transaction which, in total, amounted to more than $4 million. Over the course of their conspiracy, Katz and his co-conspirators prevented the IRS from collecting more than $44 million in payroll and income taxes due on the cash wages.
On December 2, 2021, a federal grand jury in Portland returned a five-count indictment charging Katz and five others with conspiracy to defraud the United States. Katz was charged in the same indictment with four counts of filing false currency transaction reports with FinCEN.
Conspiracy to defraud the United States is punishable by up to five years in federal prison, a $250,000 fine, and three years’ supervised release. Filing false currency transaction reports is punishable by up to 10 years in federal prison, a $250,000 fine, and three years’ supervised release.
Three of Katz’s co-conspirators have pleaded guilty to felony charges stemming from their roles in the conspiracy. Two are awaiting sentencing and the third was sentenced to 30 months in federal prison. Another co-conspirator is awaiting trial and one is a fugitive.
This case was investigated by IRS-CI. It was prosecuted by Robert S. Trisotto and Andrew T. Ho, Assistant U.S. Attorneys for the District of Oregon.
Orange County Man Indicted for Allegedly Robbing Anaheim Bank and Taking Hostages the Day After His Release from State PrisonRead the Press Release
SANTA ANA, California – A federal grand jury today returned an indictment against an Orange County man who allegedly took three bank employees hostage when he robbed a bank branch in Anaheim last month – the day after being released from state prison.
Eric Walter Gray, 53, is charged with one count of bank robbery and forced accompaniment. Gray has been in federal custody since June 5 after being transferred from state custody. A federal magistrate judge has ordered him jailed without bond.
Gray’s arraignment is scheduled for June 24 in United States District Court in Santa Ana.
“One day after his release from prison, this defendant allegedly chose to return to crime by taking three victims hostage while he robbed a bank,” said United States Attorney Martin Estrada. “My office will continue its efforts to prosecute and punish violent recidivist criminals who harm our community.”
“The victims in this case dealt with fear and death threats while the defendant held them hostage until they were rescued, thanks to the courage of bank employees who notified police,” said Krysti Hawkins, the Acting Assistant Director in Charge of the FBI's Los Angeles Field Office. “This ongoing investigation is the result of a collaborative effort among local and federal law enforcement and prosecutors with the shared goal of holding Mr. Gray accountable for his violent actions.”
According to an affidavit in support of a criminal complaint filed in this case, Gray robbed a BMO bank branch in Anaheim on May 8 – the day after being released from San Quentin Rehabilitation Center. While in the bank branch and after loitering there for a long time, Gray allegedly jumped over the teller counter, stated that he had a gun, and demanded money from the teller. Money was taken from the teller drawers and was given to Gray, who proceeded to put the money in his pockets.
Gray then allegedly ordered the bank manager and two bank employees into a storage room inside the bank. Gray eventually let two of those employees out of the storage room but held the bank manager hostage for approximately one hour, according to court documents. During the robbery, at least one bank employee notified law enforcement. Eventually, Gray exited the storage room with the bank manager and was arrested without incident. Law enforcement later found cash and narcotics hidden inside Gray’s body, court papers allege.
Gray was taken to a hospital for a scan and, while there, allegedly repeatedly tried to escape and also fought with police officers, resulting in multiple injuries to the officers involved.
“I am incredibly proud of the professionalism, restraint, and compassion of our Officers as they risked their lives to bring this volatile incident to a safe resolution,” said Anaheim Police Chief Rick P. Armendariz. “This incident is just one example of the exceptional work done every day by the men and women of the Anaheim Police Department to ensure Anaheim is a safe community to live, work, and play.”
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, Gray would face a mandatory minimum sentence of 10 years in federal prison and a maximum sentence of 20 years in federal prison.
The Orange County District Attorney’s Office charged Gray in connection with this incident, but dismissed their case so the federal case against him could proceed.
Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.
The FBI and the Anaheim Police Department are investigating this matter.
Assistant United States Attorney Caitlin J. Campbell of the Santa Ana Branch Office is prosecuting this case.
One Detroit Violence Reduction Partnership to Host Third Annual Peacenics at Heilman Recreation Center and O’Hair ParkRead the Press Release
DETROIT - More than 70 community organizations and federal, state, and local law enforcement agencies will gather at Heilmann Recreation Center on June 15 (Rain Date: June 23) and O’Hair Park on June 29 (Rain Date: June 30) for the third annual Peacenics. The events will run from 3:00 p.m. to 7:00 p.m. each day.
The Peacenics are part of the One Detroit Violence Reduction Partnership, a coalition of community and law enforcement partners working together to develop and execute the best strategies to reduce violent crime. The strategy has three components—enforcement, prevention, and reentry. As part of its Safe Summer Streets initiative, One Detroit will hold its third annual Peacenics in coordination with its enhanced summer enforcement strategy aimed at reducing gun violence in Detroit’s neighborhoods with the highest incidence of violent crime – Detroit’s 8th and 9th Precincts.
The Peacenics are a collective gathering of the community and law enforcement coming together in the name of peace and where residents can have fun, engage with law enforcement, and obtain resources to improve the quality of their lives. The Peacenics will feature vendors offering a variety of resources including job training, literacy programs, mental health and medical screenings, utility assistance, educational and vocational opportunities, tutorial and career development programs, expungement assistance and more. Several law enforcement agencies will be there to engage with the community and recruit to fill vacancies in their organizations.
In addition to the resources, there will be bounce houses, a petting zoo, face painting, and a free throw tournament for kids. There will also be community basketball and volleyball games. The Detroit Public Library will have their bookmobile on site for kids to enjoy storytelling time. Adults will be able to join in the fun with Hustle Dance lessons, and a Spades tournament as well as Uno tables. And back by popular demand will be the Peacenic Thrift Clothing Boutique, where residents can shop for free gently used clothing for all ages. Free food, such as pizza, hot dogs, sliders, and ice cream will also be available for residents at the Peacenics.
“We are so excited to partner with the City of Detroit and the rest of our One Detroit Partners to bring the Peacenics back to Detroit again this year. We look forward to this amazing opportunity to have the community and our law enforcement join together to celebrate peace. The Peacenics will have resources to help improve lives as well as plenty of opportunities for fun and community bonding,” said United States Attorney Dawn N. Ison.
"Peacenics are about connecting with the community. We can't enforce without the community's understanding and buy-in," said Deputy Mayor Todd Bettison. "This is about coming together with our residents in the name of peace, and the city and our partners bringing much-needed resources right into the neighborhoods. We are thankful for the One Detroit partnership, our corporate sponsors and our volunteers who work hard to make these events happen."
Residents are encouraged to register for the events by visiting the following websites: For the Peacenic at Heilmann: https://www.eventcreate.com/e/june15peaceniconedetroitprevention. For the Peacenic at O’Hair Park: https://www.eventcreate.com/e/june29city-of-detroit-host-peacen.
Heilman Recreation Center is located at 19601 Brock Street (9th Precinct) and O’Hair Park is located at 20253 Stahlian Street, Detroit (8th Precinct). Media is welcome to attend the event. U.S. Attorney Dawn N. Ison, Deputy Mayor Todd Bettison, Wayne County Prosecutor Kym Worthy, and Detroit Police Chief James White will be available for interviews at the Heilman Peacenic. Please contact Gina Balaya at the above email address or contact her directly at (313)226-9758 or Corey McIsaac, Deputy Director of Media Relations, City of Detroit at (248) 870-8620 for more information or to schedule an interview.
Omaha Man Sentenced to Nearly 12 Years Imprisonment for Armed Bank RobberiesRead the Press Release
United States Attorney Susan T. Lehr announced that on June 12, 2024, Tre D. Boswell, 27, of Omaha, Nebraska, was sentenced in federal court in Omaha, for bank robbery and brandishing a firearm during and in relation to a crime of violence. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Boswell to 141 months’ imprisonment and to pay $195,217.50 in restitution. There is no parole in the federal system. After his release from prison, Boswell will be required to complete a 5-year term of supervised release.
Boswell and another suspect, brandishing a firearm, robbed, or attempted to rob a series of banks in the Omaha area between December of 2021 and December of 2022. Although Boswell and the second suspect concealed their appearances during the robberies, investigators obtained their general physical descriptions and a detailed description of the firearm they used in the robberies. The suspects threatened bank employees with the firearm and nearly $200,000 was stolen from two banks during the completed robberies. Investigators collected potential DNA evidence throughout the investigation and ultimately obtained warrants authorizing them to obtain a sample of Boswell’s DNA, and to seize and search his cell phone. In addition to the physical descriptions of the suspects and of the firearm, GPS data from Boswell’s phone placed him in the vicinity of the robberies when they occurred, and DNA evidence further corroborated his involvement. The other suspect has not been identified at this time.
This case was investigated by the Federal Bureau of Investigation Great Plains Violent Crimes Task Force and the Omaha Police Department.
Oklahoma sex offender sentenced to seven years in prison for failing to register in MontanaRead the Press Release
BILLINGS — An Oklahoma man convicted by a federal jury in Montana of failing to register as a sex offender after moving to the Billings area and despite repeated orders to do so was sentenced today to seven years in prison, to be followed by 15 years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Windelyn Valdo Shoulderblade, Jr., 33, of Broken Arrow, Oklahoma, was convicted of failure to register as a sex offender on Jan. 30, following a two-day jury trial.
U.S. District Judge Susan P. Watters presided. The court ordered the sentence to run consecutive to other cases pending in Oklahoma.
“For years, Shoulderblade refused to comply with the Sex Offender Registration and Notification Act (SORNA), while continuing to commit sex offenses and exhibiting public displays of sexual deviancy. By not registering as required by law, Shoulderblade posed a constant threat to community safety. But not anymore, as he will spend the next seven years in federal prison due to aggressive and effective work of our federal prosecutors, the U.S. Marshals Service, the Northern Cheyenne SORNA Compliance Office, and Yellowstone County Sheriff’s Office,” U.S. Attorney Laslovich said.
“Since the passage of the Adam Walsh Child Protection and Safety Act in July 2006, the U.S. Marshals Service, nationally and in Montana, has vigorously pursued those who have failed to stay compliant with the legal requirements of their registration. We will continue to do so. This sentence was the culmination of some great collaboration among several federal, tribal, state and local law enforcement entities and is a good example of how, when all of us work together, we can make our communities a safer and better place to live,” said U.S. Marshal Craig Anderson.
In court documents, the government alleged that Shoulderblade was convicted of felony sexual battery in Oklahoma in 2014 and was required by law to register as a sex offender under SORNA. The government further alleged that from about December 2022 to November 2023 in Montana, Shoulderblade knowingly failed to register and update his sex offender registration. Since his 2014 conviction, Shoulderblade continued exhibiting predacious behavior while refusing to comply with his sex offender registration requirements. While out of compliance with his registration requirements, Shoulderblade spent years committing additional sex crimes. Shoulderblade moved to Montana in December 2022 and had contacts with law enforcement in Billings and on the Northern Cheyenne Indian Reservation. Despite instructions to register by a Northern Cheyenne SORNA compliance officer and the Yellowstone County Sheriff’s Office, Shoulderblade never did. After relocating to Billings, Shoulderblade had frequent, near-weekly contact with local law enforcement between March 2023 and July 2023.
The U.S. Attorney’s Office prosecuted the case. The U.S. Marshals Service, Northern Cheyenne SORNA Compliance Office and Yellowstone County Sheriff’s Office conducted the investigation.
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Oklahoma Corrects Noncompliance with the National Voter Registration Act Following Justice Department NoticeRead the Press Release
The Justice Department announced that the State of Oklahoma has taken corrective action regarding driver’s license and ID card applications and forms that previously did not comply with Section 5 of the National Voter Registration Act (NVRA).
Section 5 of the NVRA, also known as the motor voter provision, requires that all applications for a driver’s license or state ID — including online renewal applications — provide an opportunity to register to vote or to update an existing voter registration. The NVRA also requires that any paper or online change of address form for a driver’s license or state ID automatically update the address on voter registration records, unless a voter indicates that the change is not for voting purposes.
“An inclusive democracy must provide all eligible voters access to the full range of voter registration opportunities required by law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We encourage states and jurisdictions across the country to ensure that they are making voter registration opportunities fully and equally accessible at DMVs and other social services agencies, both in person and online. The Justice Department is committed to ensuring full compliance with the NVRA.”
Earlier this year, the Justice Department told the state that its online renewal applications for driver’s licenses and state ID cards did not provide the required opportunity to register or update an existing voter registration record. The state’s online change of address form also could not update voter registration records. The department met with state officials, who acted to correct these omissions, along with similar ones on paper forms. The state also committed to notifying voters affected by these lapses. Additionally, the state is providing instructions so that eligible citizens not currently registered to vote at the address found in their driver’s license or ID card records can register or update outdated registration records.
The department will continue to monitor the implementation of these changes and this remedial program, and it welcomes feedback from the public. Complaints about discriminatory practices may be reported through the Civil Rights Division’s website at civilrights.justice.gov or by calling (800) 253-3931.
More information about the NVRA and about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.
Nonprofit Organizations Pay over $5.8 Million to Resolve Allegations of Fraudulently Obtaining Pandemic-Related LoansRead the Press Release
NEWS RELEASE SUMMARY – June 12, 2024
SAN DIEGO – Multiple nonprofit organizations—including two private country clubs and two homeowners associations—have paid $5,809,021.60 to settle allegations that they violated the False Claims Act by knowingly submitting false claims and obtaining Paycheck Protection Program loans for which they were not eligible.
Congress created the Paycheck Protection Program loans, known as PPP, in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other permitted business expenses. Under the CARES Act, certain entities organized under section 501(c) of the Internal Revenue Code were not eligible for PPP loans.
Rancho Santa Fe Association is a homeowners association and 501(c)(4) nonprofit organization. Rancho Santa Fe Association serves members in the community of Rancho Santa Fe in San Diego County, which includes over 4,000 residents, the Rancho Santa Fe Golf Club, the Rancho Santa Fe Tennis Club, private sports fields, The Inn at Rancho Santa Fe, nearly 60 miles of private equestrian and pedestrian trails, shops, restaurants, and full-time security patrol. In April 2020, Rancho Santa Fe Association applied for a PPP loan and later received disbursement of a $1,542,100 loan. The United States contended that Rancho Santa Fe Association knew or should have known it was not eligible to receive its PPP loan as a 501(c)(4) nonprofit organization, and it caused the Small Business Administration (SBA) to forgive the loan and to pay lender fees and interest to the bank that processed the loan. Rancho Santa Fe Association paid $2,037,451.44 to settle allegations that it knowingly violated the False Claims Act.
Pine Mountain Lake Association, a homeowner’s association and 501(c)(4) nonprofit organization, is in Groveland, California near Yosemite National Park. Pine Mountain Lake Association is a gated community with amenities that include a private lake with six miles of shoreline, 18-hole championship golf course, swimming pool, tennis and pickleball courts, hiking trails, archery range, equestrian center, restaurant and lounge, and lake lodge. In April 2020, Pine Mountain Lake Association applied for a PPP loan and later received disbursement of a $687,500 loan. In January 2021, Pine Mountain Lake Association applied for a second PPP loan and later received disbursement of a $950,000 loan. The United States contended that Pine Mountain Lake Association knew or should have known it was not eligible to receive its PPP loans as a 501(c)(4) nonprofit organization, and it caused the SBA to forgive the loan and to pay lender fees and interest to the bank that processed the loans. Pine Mountain Lake Association paid $2,372,440.98 to settle allegations that it knowingly violated the False Claims Act
Glendora Country Club, a private country club and 501(c)(7) nonprofit organization, is in San Gabriel Valley and offers its members an 18-hole golf course, a 25-yard swimming pool, and dining and entertainment options. In April 2020, Glendora Country Club applied for a PPP loan and later received disbursement of a $471,685 loan. The United States contended that Glendora Country Club knew or should have known it was not eligible to receive its PPP loan as a 501(c)(7) nonprofit organization, and it caused the SBA to forgive the loan and to pay lender fees and interest to the bank that processed the loan. Glendora Country Club paid $708,843.42 to settle allegations that it knowingly violated the False Claims Act.
The Palms Golf Club, a private, single membership golf club and a 501(c)(7) nonprofit organization, is in La Quinta, California. The Palms Golf Club claims to offer a world-class golfing environment with a golf course designed by Fred Couples, state-of-the-art practice facility, locker rooms and fitness facilities, and multiple dining options. In May 2020, The Palms Golf Club applied for a PPP loan and later received disbursement of a $327,035 loan. The United States contended that The Palms Golf Club knew or should have known it was not eligible to receive its PPP loan as a 501(c)(7) nonprofit organization, and it caused the SBA to forgive the loan and to pay lender fees and interest to the bank that processed the loan. The Palms Golf Club paid $690,285.76 on an ability-to-pay basis to settle allegations that it knowingly violated the False Claims Act.
“The PPP program was born from the urgent need to support small businesses weathering the storm of a generational pandemic,” said U.S. Attorney Tara McGrath. “These agreements hold accountable those who deceitfully diverted public funds from the deserving hands of struggling small businesses trying to support their employees and serve their customers.”
“Providing false information to obtain PPP loans and forgiveness is wrong,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Today’s settlement sends a strong message that attempts to wrongfully obtain loan fund and forgiveness will not go unnoticed, and violators will be identified. I want to thank the Department of Justice and our law enforcement partners for their support and dedication to pursuing justice in this case.”
The settlements resolve claims brought by Wade Riner under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party can file an action on behalf of the United States and receive a portion of the recovery. The case is captioned United States ex rel. Riner v. Rancho Santa Fe Ass’n, et al., 22-CV-1285-GPC-KSC. Mr. Riner will receive a total share of nearly $700,000.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Southern District of California and the SBA’s Office of General Counsel and Office of the Inspector General. In total, the United States recovered over $6.1 million against the named defendant in the qui tam action.
This matter was handled by Assistant U.S. Attorney Dylan M. Aste.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
New York Man Sentenced for Distributing Fentanyl in New JerseyRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to time already served – 25 months in prison – for distribution and possession with the intent to distribute fentanyl, U.S. Attorney Philip R. Sellinger announced.
Jose Migel Cleto, 65, of Manhattan, New York, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of distribution and possession with the intent to distribute a mixture and substance containing a detectable amount of fentanyl.
According to documents filed in this case and statements made in court:
In April 2022, Cleto distributed, and possessed with the intent to distribute, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl to a man in a commercial parking lot in Fort Lee, New Jersey.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Vincent D. Romano of the OCDETF Unit in Newark.
New York Fund Manager Admits Multimillion-Dollar Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York fund manager today admitted defrauding investors out of millions of dollars, U.S. Attorney Philip R. Sellinger announced.
Joshua Goltry, 30, of New York pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of securities fraud.
U.S. Attorney Philip R. Sellinger“Joshua Goltry admitted making outlandish claims in falsifying the achievements of his purported investment fund. In doing so, he duped investors out of millions of dollars, money they thought they were investing carefully, but which, in reality, this defendant was using to repay other investors or spending on his own bills. The investing public needs to be protected from unscrupulous frauds like this, and our office will work with our law enforcement partners to make sure that happens.”
“Fraudsters operating what amounts to a Ponzi scheme shouldn't be shocked when the cash dries up,” FBI – Newark Special Agent in Charge James E. Dennehy said. “They’re usually spending exorbitant amounts of other people’s money on lavish lifestyles, with no thought to what happens next. Goltry admits lying to his clients, promising huge returns that he pulled out of thin air, and then lying several more times to secure funding so he could keep the scheme going. It should also come as no surprise that his criminal behavior led to the FBI investigating him and holding him accountable.”
According to documents filed in this case and statements made in court:
Beginning in 2020, Goltry operated and controlled JAG Cap LLC d/b/a JAG Capital, which purported to be an investment fund with a history of successful performance. From 2020 to September 2023, he solicited investments in JAG Capital by making material misrepresentations and omissions. For example, in late 2020, he sent potential investors marketing materials falsely claiming that JAG Capital’s track record included positive returns nearly every quarter from 2018 through mid-2020, with three of those quarters showing returns greater than 50 percent. He also claimed that JAG Capital outperformed three well-known stock indices nearly every quarter. In April 2021, in reliance on those and other misrepresentations, two victims invested a total of $700,000 in JAG Capital.
Goltry also claimed to potential investors that JAG Capital’s performance exceeded 200 percent; at other times, he claimed its performance exceeded 1,000 percent. He also claimed that JAG Capital managed more than $20 million; at other times, he told potential investors that JAG Capital managed more than $50 million. Over the course of his scheme, Goltry obtained more than $3 million from investors.
Goltry claimed to investors that he would invest their money in securities for which he performed “extensive due diligence,” including “diversified tech opportunities” when in reality, he used investor money to repay previous investors and to pay for his own lifestyle, including paying for the rent on his Manhattan apartment, vacations, and personal credit card bills.
In May 2023, after depleting nearly all investor money, Goltry sought a short-term loan from an investment company by submitting false and forged documents purporting to be from the Red Bank, New Jersey office of a national bank. In reliance on those false documents, the investment company transferred $150,000 to JAG Capital.
In a parallel action, the Securities and Exchange commission today charged Goltry and JAG Advisors with violating antifraud provisions of the federal securities laws. Goltry and JAG Advisors agreed to settle the charges against them. The settlement, which is subject to court approval, would permanently enjoin Goltry and JAG Advisors from violating the charged provisions of the federal securities laws and allows the court to decide the amounts of disgorgement, prejudgment interest, and civil penalties at a later date.
The securities fraud charge to which Goltry pleaded guilty carries a maximum potential sentence of 20 years imprisonment and a fine equal to the greatest of $250,000 or twice the gain or loss resulting from the offense. Sentencing is scheduled for Oct. 19, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.
goltry.information.pdfNew York City Resident Sentenced to Prison for Defrauding Wisconsin Residents in Professional Sports Ticket ScamRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 12, 2024, Nikhil S. Mahtani (age: 28) of New York, New York, was sentenced to 15 months in federal prison for wire fraud.
According to court documents, between approximately January 4, 2019, and December 11, 2022, Mahtani placed over one thousand ads on Craigslist offering high end tickets and luxury box suites to National Football League (NFL), National Basketball Association (NBA), and other professional sporting events around the country. Numerous individuals throughout the Eastern District of Wisconsin were victimized by Mahtani, who accepted thousands of dollars in payments for tickets and suites he knew were not legitimate. In one instance, a large group of friends and family members showed up at Fiserv Forum the night the Milwaukee Bucks won the NBA Championship in 2021, only to be turned away and told they had been scammed. Mahtani is estimated to have received approximately $120,000 from over 100 victims in Wisconsin and across the United States.
At the sentencing hearing, Senior United States District Judge William C. Griesbach noted the serious nature of the crime and the need to deter the defendant and others from engaging in this type of fraud. He rejected Mahtani’s request for probation noting that this was not a “crime of impulse,” but rather a “systematic victimization” of sports fans who had their hearts set on attending a variety of professional sporting events including Green Bay Packers and Milwaukee Bucks games.
Mahtani will spend 15 months in prison and was ordered to pay $88,000 in restitution to his victims. He will also spend three years on supervised release.
This case was investigated by the New York Police Department Financial Crimes Task Force, Homeland Security Investigations, and the Winnebago County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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New Haven Man Charged with 2 Gunpoint Bank RobberiesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that a federal grand jury in New Haven returned a four-count indictment today charging MARQUE GREENE-PENDERGRASS, 31, of New Haven, with offenses stemming from the armed robberies of two banks in December 2019 and January 2020.
As alleged in the indictment, on December 27, 2019, Greene brandished a revolver and robbed a TD Bank located at 128 Amity Road in Woodbridge, stealing $7,139. On January 7, 2020, Greene brandished a revolver and robbed a Citizens Bank located at 430 Foxon Boulevard in East Haven, stealing $11,600. During the second robbery, Greene discharged the firearm.
The indictment charges Greene with two counts of bank robbery with a dangerous weapon, an offense that carries a maximum term of imprisonment of 25 years on each count; one count of brandishing a firearm during and in relation to a crime of violence, an offense that carries a mandatory consecutive term of imprisonment of at least seven years; and one count of discharging a firearm during and in relation to a crime of violence, an offense that carries a mandatory consecutive term of imprisonment of at least 10 years.
Greene is currently incarcerated serving an unrelated state sentence.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the FBI’s Connecticut Violent Crimes Task Force with the assistance of the Woodbridge and East Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff 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.
Nahant Woman and Winthrop Man Plead Guilty to Fraud and Tax EvasionRead the Press Release
BOSTON – A Nahant woman and Winthrop man pleaded guilty today in federal court in Boston to conspiring to commit wire fraud and tax evasion.
Gary P. DeCicco, 65, and Pamela M. Avedisian, 61, each pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the United States. U.S. District Court Judge Richard G. Stearns scheduled DeCicco’s sentencing for Sept. 18, 2024; Avedisian’s sentencing date has not yet been scheduled. DeCicco and Avedisian were indicted by a federal grand jury in January 2018.
Between April 2012 and February 2013, DeCicco repeatedly told the IRS that he did not have the ability to pay his over $340,000 tax liability and that he had very little cash, no vehicles or real property and no ownership interest in any asset with a positive value. However, DeCicco had ownership interests in several businesses, vehicles and real properties titled in his name and the names of Avedisian, Lynnway Auto Sales Inc., and other entities, in order to conceal those assets from the IRS during that time period. In addition, beginning in March 2013, after the IRS accepted DeCicco’s proposed monthly payment plan (based on the false information DeCicco provided about his assets and income), DeCicco bought and sold numerous real properties, boats and high-end cars and concealed those assets and his income from the IRS, often with Avedisian’s assistance.
In addition, Avedisian owned a property in Nahant that was subject to a mortgage in excess of $1 million. In October 2015, DeCicco and Avedisian conspired to defraud the mortgage holder by proposing the sale of the property for significantly less than the outstanding mortgage, in what is commonly referred to as a “short sale.” By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated and act independently, allowing sellers to cede their ownership of the property in exchange for the short-selling bank’s agreement to release them from their unpaid mortgage debt. In order to get approval for the sale, DeCicco and Avedisian concealed their long-term romantic and business relationships from the loan servicing company and falsely represented that Avedisian could no longer make payments towards the mortgage on the property. In fact, just two months before the “short sale” closed, Avedisian purportedly received $3.5 million from the sale of another asset to DeCicco.
The conspiracy charges each provide for up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and Neil J. Gallagher, Jr. of the Public Corruption & Special Prosecutions Unit are prosecuting the case.
NYS Corrections Officer on administrative leave arrested on gun chargeRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Matthew R. Zamborowski, 48, of Hamburg, NY, was arrested and charged by criminal complaint with possession of a firearm or ammunition by a person under a qualifying Domestic Violence Order of Protection, which carries a maximum penalty of 15 years in prison and a $250,000 fine.
Assistant U.S. Attorney Donna M. Duncan, who is handling the case, stated that according to the complaint, on May 6th, 2024, an Erie County Sheriff’s Deputy initiated a traffic stop on Route 219, just south of Route 39, after determining that the vehicle had a surrendered plate. The driver, Zamborowski, informed the deputy that he was concealing a firearm on his right hip and that he was a New York State Corrections Officer. When asked for his license, Zamborowski stated that he did not have one and that there may be issues with it due to unpaid tickets in court. The deputy returned to his vehicle, confirmed Zamborowski’s license status, and learned that he had been served an order of protection, which mandated him to surrender all firearms in his possession. As a result, Zamborowski was arrested and the deputy and secured Zamborowski’s firearm. The complaint further states that Zamborowski had five additional firearms in the trunk of his vehicle. A check with the New York State Albion Correctional Facility determined that Zamborowski was on administrative leave since February 2024, and that he should have returned his badge and State ID. Zamborowski was taken to the Erie County Holding Center.
The complaint is the result of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Mount Carmel Woman Sentenced to 15 Years in Prison for Methamphetamine TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Micia Best, age 45, of Mount Carmel, was sentenced to 15 years’ imprisonment to be followed by four years of supervised release by U.S. District Court Chief Judge Matthew W. Brann on the charge of possession with intent to distribute more than fifty grams of methamphetamine.
According to United States Attorney Gerard M. Karam, Best possessed more than 350 grams of a substance containing methamphetamine. The charge stemmed from a broader investigation into drug trafficking in Northumberland County through which Best was identified as moving significant amount of methamphetamine.
The investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Missouri Man Pleads Guilty to Fraud and Tax OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that LYELL CHAMPAGNE, JR., 24, of St. Louis, Missouri, pleaded guilty yesterday before U.S. District Judge Sarala V. Nagala in Hartford to charges stemming from two different fraud schemes.
According to court documents and statements made in court, between approximately March 2021 and April 2022, Champagne conspired with Kristian Gupta to obtain online bank account credentials from potential victims, and then transfer money from victims’ bank accounts to cryptocurrency accounts controlled by Champagne and Gupta. As part of the scheme, Gupta provided Champagne with personal identifying information of victims, and Champagne used that information to open email accounts and accounts at a cryptocurrency exchange. Champagne and Gupta attempted to recruit bank “insiders” to participate in their scheme, but were disrupted by an undercover law enforcement investigation and failed to transfer any funds from compromised accounts.
In a second scheme, Champagne filed wholly fictitious tax returns for “Shireberk International,” which had no actual business operations, for the 2018 through 2021 tax years. The returns resulted in a refund of $3,449,935.
Champagne pleaded guilty to one count of conspiracy to commit bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of filing false claims with the IRS, which carries a maximum term of imprisonment of five years.
Champagne has agreed to pay restitution of $111,738.52. The remaining funds were recovered by law enforcement.
Judge Nagala scheduled sentencing for September 10. Champagne is released on a $200,000 bond pending sentencing.
On April 19, 2024, Gupta, of Port Charlotte, Florida, pleaded guilty to conspiracy to commit bank fraud. He is released on a $100,000 bond pending sentencing, which is scheduled for September 19.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Edward Chang.
Michigan Shipping Magnate Charged with Filing False Tax Returns and Employment Tax CrimesRead the Press Release
A Michigan man made his initial appearance in court today before U.S. Magistrate Judge Elizabeth A. Stafford of the U.S. District Court for the Eastern District of Michigan on an indictment that charged him with filing false tax returns and not paying employment taxes for his company’s employees.
According to the indictment, which was unsealed on June 4, from 2017 to 2020, Ali Kassem Kain, of Northville, operated a transportation business that arranged for automobiles to be shipped abroad. For tax years 2017 through 2020, Kain allegedly underreported the business’ gross receipts by several million dollars each year on the business’ corporate returns. For those same years, he also underreported the amount of income he earned from his business on his personal returns.
In addition, Kain was allegedly responsible for withholding Social Security, Medicare and federal income taxes from his employees’ wages and paying those amounts over to the IRS. Instead, Kain allegedly did not collect all these taxes for his company’s employees and did not pay over the full amount due to the IRS.
In total, Kain is alleged to have caused a tax loss to the IRS of nearly $5 million.
Kain was charged with 15 counts of failing to collect and pay over employment taxes and eight counts of filing false tax returns. If convicted, Kain faces a maximum penalty of five years in prison for each employment tax count and a maximum penalty of three years in prison for each count of filing a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dawn N. Ison for the Eastern District of Michigan made the announcement.
IRS Criminal Investigation and the FBI Detroit Field Office are investigating the case.
Senior Litigation Counsel Corey Smith and Trial Attorney Richard Kelley of the Tax Division and Assistant U.S. Attorney Jerome Gorgon for the Eastern District of Michigan 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.
Michael White Pleads Guilty to Federal Charges Related to Murder of Big Stone Gap Police Officer Michael ChandlerRead the Press Release
ABINGDON, Va. – Michael Donivan White pled guilty today to federal charges related to the November 2021 murder of Big Stone Gap Police Officer Michael Chandler and a wide-ranging drug conspiracy.
White, 36, of South Carolina, pled guilty today to eight counts in relation to the murder of Officer Chandler. Specifically, he pled guilty to one count of causing the death of a person using a firearm, which killing was first-degree murder, in furtherance of a drug trafficking crime, one count of conspiring to distribute or possess with the intent to distribute 500 grams or more of methamphetamine, one count of using a place for the purpose of distributing or using a controlled substance, one count of using a communication facility in committing any felony-controlled substance offense, one count of possession of a firearm by a convicted felon, one count of possession of a stolen firearm, and one count of possession of a firearm in furtherance of a drug trafficking crime and using, brandishing and discharging that firearm in relation to a drug trafficking crime.
“Big Stone Gap Police Officer Michael Chandler died serving his community. The men and women among us who swear the oath and put on the badge keep all of us safe,” United States Attorney Christopher R. Kavanaugh said today. “While nothing we do in a courtroom can ever bring Michael back, our hope is that today’s guilty plea brings some semblance of peace to his family, friends, and brethren in law enforcement that today, justice was done.”
“ First, let me say our prayers for healing go out to the family of Big Stone Gap Police Officer Michael Chandler. At the core of this tragic event is a previously convicted felon getting illegal access to a firearm,” said ATF Washington Field Division Special Agent in Charge Craig Kailimai. “It is our hope that Mr. White receives a lengthy sentence that holds him accountable for every one of his criminal acts. Keeping our communities safe and supporting our fellow law enforcement partners is what drives ATF in the fight against violent crime.”
According to court documents, beginning in August 2021 and continuing even after the time of his arrest in October 2022, White and 18 other defendants participated in a conspiracy to distribute more than 15 kilograms of methamphetamine, heroin, and fentanyl.
Tragically, at approximately 4:00 a.m. on November 13, 2021, Big Stone Gape Police Officer Michael Chandler responded to a dispatch call at 2505 Orr Street in Big Stone Gap, known locally as “the red house.” Upon arriving at the red house, Officer Chandler encountered a vehicle outside the residence. Officer Chandler requested backup, telling dispatch, “This car is taking off on me.” Inside the vehicle, Michael White told a female co-defendant, Misty Ward, to “get the fu*k out of there” because there were drugs in the vehicle and that “he was not going back to jail.” Ward started to drive off as directed, but then stopped and got out of the vehicle. As Ward exited the vehicle, Officer Chandler asked Ward to show him her hands, which were covered by her jacket. Ward complied, raising her hands up in the air. At that point, White attempted to flee the scene, however the vehicle got stuck in the grass. Officer Chandler approached the vehicle on the driver’s side, hitting the window with his flashlight.
White brandished a Taurus 9mm pistol and immediately fired eight shots through the driver’s side window and door, striking Officer Chandler’s wrist and abdomen just below his bulletproof vest.
Officer Chandler died later that evening from his injuries.
Following the shooting, law enforcement identified White as a suspect. White was later located at a motel in Kingsport, Tennessee and a subsequent search of the motel room found a Taurus, 9mm pistol. Further testing ultimately proved this firearm to be the same one that fired the shots that killed Officer Chandler.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Virginia State Police, the United States Marshal’s Service, the Wise County Sheriff’s Office, the City of Norton Virginia Police Department, the Kingsport Tennessee Police Department, the Big Stone Gap Police Department, the Wise County Commonwealth’s Attorney’s Office, the East Tennessee Drug Task Force, and the Southwest Virginia Drug Task Force, which is comprised of investigators from the Virginia State Police, Lee County Sheriff’s Office, Scott County Sheriff’s Office, Wise County Sheriff’s Office, City of Norton Police Department, and Big Stone Gap Police Department.
Assistant U.S. Attorneys Lena L. Busscher and Danielle Stone are prosecuting the case.
Mexican National Sentenced for Transportation Resulting in DeathRead the Press Release
ALBUQUERQUE – A Mexican national was sentenced to 10 years in prison for his role as a foot guide in a deadly alien smuggling conspiracy where he threatened witnesses to cover up his involvement after one migrant died from heat exposure in the New Mexico desert.
There is no parole in the federal system.
According to court documents, on July 18, 2023, Texas Department of Public Safety officers pulled over a vehicle driven by Jorge Luis Estrada-Velasquez with four undocumented aliens. The aliens informed agents that other members of their group were still in the desert a few miles away and one was very ill.
Border Patrol agents and emergency medical technicians located Rafael Radillo-Bernal, 40, and three others in the desert near Strauss Road in Doña Ana County and began rendering aid to the sick individual. Tragically, the victim succumbed to the heat and passed away.
Border Patrol took the surviving seven aliens, including Radillo-Bernal, and Estrada-Velasquez, into custody. Estrada-Velasquez was charged with Conspiracy to Transport Illegal Aliens and the seven aliens, including Radillo-Bernal, were designated as material witnesses.
Initially, none of the witnesses admitted to being the foot guide, and one claimed the guide had returned to Mexico. After their initial appearances, the witnesses were released to a halfway house in Las Cruces.
Subsequent interviews with the witnesses revealed consistent accounts of crossing late at night, walking for 8-9 hours with limited water, and the victim showing signs of illness early on due to diabetes. Radillo-Bernal initially claimed to have joined the group halfway through their journey after crossing the border alone. Radillo-Bernal stated that he walked with the victim, getting to know him, and encouraging him to continue when he started falling behind. Radillo-Bernal claimed he stayed with the victim while he called his family to say he was not going to make it before leaving him in the shade of a mesquite bush to find water and help.
On September 8, 2023, two witnesses came forward alleging that Radillo-Bernal was the foot guide and had threatened them to remain silent about his role in the conspiracy.
On January 23, 2024, Radillo-Bernal pled guilty to transporting an illegal alien resulting in the death of any person. After completing his term of imprisonment, Radillo-Bernal will be subject to deportation proceedings.
Estrada-Velasquez pled guilty to conspiracy to transport illegal aliens on October 19, 2023, and was sentenced to 36 months in federal prison. After completing his term of imprisonment, Estrada-Velasquez will be subject to deportation proceedings.
U.S. Attorney Alexander M.M. Uballez and Jason T. Stevens, Acting Special Agent in Charge of Homeland Security Investigations - El Paso, made the announcement today.
Homeland Security Investigations investigated this case with the assistance of U.S. Customs and Border Protection. Assistant United States Attorney Alyson R. Hehr prosecuted the case.
Migrants attempting to cross the U.S.-Mexico border face grave dangers and risks. The harsh desert terrain, with scorching temperatures, rugged mountains, and vast stretches without water, poses immense physical challenges that have led to thousands of deaths from dehydration, heat stroke, and exposure. Migrants are also preyed upon by criminal organizations and human traffickers who exploit, extort, and abandon them in remote areas, leaving them vulnerable to violence, sexual assault, and human trafficking.
Those involved in human smuggling operations, including foot guides, drivers, and coordinators, face severe legal consequences if caught and prosecuted. Human smuggling is a federal crime under U.S. law, with penalties that can include hefty fines and lengthy prison sentences, especially in cases involving death, serious injury, or other aggravating factors.
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