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Tuesday 30 April 2024
Bergen County Man Admits Nearly Half Million Dollars in Overtime Fraud Involving Hudson Bergen Light Rail ProjectsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted more than $487,000 in overtime fraud involving projects on which he worked relating to the Hudson Bergen Light Rail (HBLR), U.S. Attorney Philip R. Sellinger announced.
Joseph Ferrara, 56, of North Arlington, New Jersey, pleaded guilty before U.S. District Judge Julien X. Neals in Newark federal court to one count of embezzling, stealing, and obtaining by fraud more than $487,000 of funds belonging to and under the care, custody and control of the HBLR.
According to the documents filed in this case:
From January 2018 through April 2020, Ferrara submitted fraudulent claims for compensation related to work performed on HBLR projects on which he had worked as an employee of a subcontractor specializing in electrical work. The HBLR maintains approximately two dozen stations throughout Hudson County and serves more than 50,000 passengers each weekday. Ferrara, who supervised numerous workers on HBLR projects, was compensated at a regular rate for normal workday hours, at an elevated overtime rate for work performed during non-regular weekday hours and Saturdays, and at a double time rate for work performed on Sundays. During a more than two-year period, Ferrara submitted claims for compensation covering hundreds of hours relating to work allegedly performed during regular, overtime and double time hours knowing that he had not actually performed that work for his employer or on HBLR projects. For example, Ferrara admitted that he spent approximately 10 days vacationing in Florida in both late December 2018 and late December 2019 during which he performed no work for his employer or upon HBLR projects. Nevertheless, Ferrara submitted fraudulent claims representing that he had worked more than 200 hours at regular, overtime and double time rates during those periods. In total, Ferrara admitted to receiving $487,899 in compensation for hours during which he performed no work. As part of his plea agreement, Ferrara agreed to forfeit this amount.
The theft charge is punishable by a maximum potential penalty of 10 years in prison and a maximum $250,000 fine. Sentencing is scheduled for Sept. 5, 2024.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark.
ferrara.information.pdfBeaverton Man Sentenced to Federal Prison for Role in Fatal Fentanyl OverdoseRead the Press Release
PORTLAND, Ore.—A Beaverton, Oregon man was sentenced to federal prison today for distributing fentanyl that caused the fatal overdose of a local man.
Billy Ray Trueblood II, 33, was sentenced to 41 months in federal prison and four years’ supervised release.
According to court documents, in early March 2019, investigators from the Westside Interagency Narcotics Team (WIN) responded to a fatal overdose of a local man in his early thirties who was found unresponsive by his roommates. An autopsy by the Oregon State Crime Lab later confirmed the man died of an acute fentanyl overdose.
Further investigation revealed that the victim became addicted to opioids after using prescription pain killers in college to deal with athletic injuries. Investigators also learned the victim had been purchasing drugs from Trueblood since college and had recently exchanged text messages with him to arrange the purchase of “blues,” a term used to describe counterfeit Oxycodone pills manufactured with fentanyl.
In the days following the victim’s fatal overdose, investigators attempted to locate Trueblood, but were unable to do so until one investigator spotted him on television at a Portland Trailblazers basketball game. After another investigator confirmed the man spotted was indeed Trueblood, the investigators relayed the information to police officers at the game who located and arrested him. During his arrest, Trueblood was found in possession of a large amount of cash and several types of pills including some that resembled those found in the deceased victim’s bedroom.
On November 10, 2020, a federal grand jury in Portland returned a three-count indictment charging Trueblood with distributing fentanyl, distributing fentanyl resulting in death, and possessing with intent to distribute fentanyl.
On May 30, 2023, Trueblood pleaded guilty to distributing fentanyl.
This case was investigated by WIN and the FBI. It was prosecuted by Lewis S. Burkhart, Assistant U.S. Attorney for the District of Oregon.
WIN is a Washington County, Oregon-based multi-jurisdictional narcotics task force supported by the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program that includes members from the Washington County Sheriff’s Office, Beaverton and Hillsboro Police Departments, Oregon National Guard Counter Drug Program, FBI, U.S. Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI).
Atlantic County Resident Sentenced to 30 Months in Prison for Laundering Proceeds of COVID-19 Small Business Relief Program FraudRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced to 30 months in prison for laundering the proceeds of fraudulently obtained Paycheck Protection Program loans, U.S. Attorney Philip R. Sellinger announced today.
Jeremy Earley, 42, of Egg Harbor Township, New Jersey, and Lilburn, Georgia, pleaded guilty on June 1, 2023, before U.S. District Judge Karen M. Williams to an information charging him with one count of engaging in a monetary transaction in criminally derived property. Judge Williams imposed the sentence on April 29, 2024, in Camden federal court.
According to documents filed in this case and statements made in court:
In 2020 and 2021, two companies owned by Earley received loans totaling more than $1.3 million from the Paycheck Protection Program (PPP), a federal program that provided forgivable loans to small businesses for job retention and certain other expenses. The loans were approved based on fraudulent applications submitted by another individual stating that the companies had dozens of employees and monthly payrolls of $145,000 and $382,400, respectively. The applications also contained forged tax forms. In fact, Earley’s businesses had no employees other than himself and paid minimal to no wages. After receiving the PPP loan proceeds, Earley wrote checks totaling nearly $400,000 to the individual who submitted the loan applications to compensate her for her role in submitting the fraudulent loan applications. Earley also wired $85,000 of the proceeds out of a bank account he controlled after being advised by federal agents not to spend the money because it constituted proceeds of bank fraud.
In addition to the prison term, Judge Williams sentenced Earley to three years of supervised release.
Rhonda Thomas previously pleaded guilty to bank fraud conspiracy and money laundering and was sentenced to five years in prison.
U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Bradley Parker; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia; and special agents of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman and Attorney-In-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.
Monday 29 April 2024
West Covina Man Arrested for Allegedly Attempting to Pick up Money from Elderly Victims Who Were Defrauded in Phishing SchemeRead the Press Release
LOS ANGELES – A San Gabriel Valley man is scheduled to appear in court this afternoon on federal charges stemming from his alleged attempt to obtain additional funds from two elderly victims who had already paid thousands as part of an online phishing scheme that locked up their home computer.
Tai Su, 48, of West Covina, is scheduled to make his initial appearance this afternoon in United States District Court in downtown Los Angeles. Su was arrested Friday in a sting orchestrated by Homeland Security Investigations (HSI), and federal prosecutors Sunday filed a criminal complaint that alleges one count of conspiracy to commit wire fraud.
Su was arrested at the victims’ Encino residence when he showed up to retrieve $35,000 from the two elderly victims who had already paid the fraudsters $25,000 in cash. According to the affidavit in support of the criminal complaint, Su is part of a scheme that included a computer virus, callers pretending to help the victims, and two other people who masqueraded as federal agents.
The cyberattack began on April 23 when the victims opened an email and clicked on a link launching malware that seized their computer and displayed a phone number that was purportedly “Microsoft Support.” The victims called the number and spoke to a person who advised they had been “hacked,” and the hackers now had their bank account information at City National Bank.
The victims were then connected to another person pretending to be a “Fraud and Risk Investigator” with City National Bank, who instructed the victims to withdraw $25,000 in cash and give the money to purported “federal agents” who would come to the victims’ house. The victims withdrew the cash and, later on April 23, two men pretending to be federal agents – one of whom displayed a fake badge – came to the victims’ residence and collected the money.
Over the next two days, the scammers continued to seek additional funds from the victims, even directing them to make a $10,000 withdrawal at a particular City National Bank branch.
HSI agents on April 25 learned about the ongoing scam and planned a sting operation.
On April 26, during a series of phone calls with participants in the scheme, the victims agreed to make another $35,000 cash payment. After rebuffing demands to deposit the funds into a virtual wallet at a remote location, the victims arranged for another pick-up by a “federal officer” at their residence.
At the agreed-upon time, Su drove to the victims’ home. He identified himself to an 86-year-old victim, gave a passcode, and then said he was from Coinbase, a popular cryptocurrency platform. HSI agents then arrested Su, who was found to be carrying thousands of dollars in cash in large denominations, according to the affidavit.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The charge of conspiracy to commit wire fraud carries a statutory maximum sentence of 20 years in federal prison.
The investigation was conducted by the Homeland Security Investigations-led El Camino Real Financial Crimes Task Force, a multi-agency task force that includes federal and state investigators who are focused on financial crimes in Southern California.
Assistant United States Attorneys Kedar S. Bhatia and Joseph De Leon of the General Crimes Section are prosecuting this case.
This case is the product of an investigation by the Vulnerable Communities Task Force, which is focused on investigating and prosecuting individuals and entities that prey on communities that typically are less likely to report crimes to law enforcement and historically have had less legal recourse to address the offenders targeting them. These groups may include immigrants and migrant workers defrauded in immigration schemes, indigent individuals reliant on public benefits, the elderly, and those who have been reluctant to seek assistance from government authorities.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. English, Spanish and other languages are available.
Two Plead Guilty to Counterfeit Pill Trafficking ConspiracyRead the Press Release
BOSTON – Two men have pleaded guilty in federal court in Boston to their roles in a North Shore-based drug trafficking organization (DTO) that distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.
Nelson Mora, 31, of Lynn, and Christopher Nagle, 30, of Revere, pleaded guilty to one count each of conspiring to distribute and to possess with intent to distribute controlled substances. Christopher Nagle also pleaded guilty to possession with intent to distribute more than 500 grams of methamphetamine. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencings for Aug. 5, 2024 and Aug. 13, 2024, respectively.
According to court documents, Christopher Nagle and allegedly his brother Lawrence Michael Nagle were identified as leaders of a DTO distributing various controlled substances throughout the North Shore region of Massachusetts. It is alleged that the Nagle DTO distributed significant quantities of various controlled substances, including, Adderall (both pharmaceutical-grade pills and counterfeit pills containing methamphetamine), methamphetamine, Xanax, Oxycodone (both pharmaceutical-grade and counterfeit pills containing fentanyl), cocaine and marijuana, among others.
Christopher Nagle’s brother, Lawrence Michael Nagle, allegedly distributed controlled substances to a small network of individuals who would then redistribute the drugs to other traffickers, including Mora, who also had access to a pill press machine which he used to create counterfeit pills.
A search of Christopher Nagle’s apartment recovered more than 74,000 counterfeit Adderall pills containing methamphetamine, weighing more than 24 kilograms.
Mora and Nagle are the 10th and 11th defendants to plead guilty in this case.
The charge of conspiracy to possess with intent to distribute and to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years of supervised release and fine of up to $1 million. The charge of possession with intent to distribute more than 500 grams of methamphetamine provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Essex County District Attorney’s Office and the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorneys James E. Arnold and Evan D. Panich of the Narcotics & Money Laundering Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Pinellas County Men Indicted for Robbing Convenience Store with A FirearmRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces return of an indictment charging Alex Jones (31, Pinellas County) and Jhakheem Smith (24, Pinellas County) with Hobbs Act robbery, conspiracy to commit that robbery, and one count of brandishing a firearm during a crime of violence during the commission of the robbery. If convicted of the robbery offenses, each faces a maximum penalty of 20 years in federal prison for each charge. If convicted of the firearm offense, each faces a maximum penalty of life in federal prison.
According to the indictment and court hearings, on November 8, 2023, Jones and Smith robbed a convenience store in the Clearwater area. During the robbery, they brandished a firearm. They also used the firearm to strike the victim, a store clerk, in the back of the head. Jones and Smith then forced the victim at gun point to the back of the store before they fled the scene.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clearwater Police Department, and the Largo Police Department. It is being prosecuted by Assistant United States Attorney Samantha Newman.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make out neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in first place, setting focused and strategic enforcement priorities, and measuring the results.
Two Men Sentenced to 10 Years for Trafficking Mass Quantities of Fentanyl from Southern California to the DistrictRead the Press Release
WASHINGTON – Mario Ernesto Benitez, 29, and Diamante Markell Hall, 29, both of Washington D.C., were sentenced today to 120 months in prison for their roles in a large-scale narcotics conspiracy that trafficked kilogram quantities of fentanyl and additional amounts of cocaine from Southern California to the metropolitan region.
The sentences were announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office Criminal and Cyber Division, DEA Special Agent in Charge Jarod A. Forget of the Washington Division of the U.S. Drug Enforcement Administration (DEA), Inspector in Charge Damon Wood, of the United States Postal Inspection Service Washington Division, and Colonel Gary T. Settle, Superintendent of the Virginia State Police.
Benitez, who pleaded guilty to conspiracy to distribute fentanyl and cocaine on January 11, 2024, was sentenced to 10 years in prison by U.S. District Judge Dabney L. Friedrich, who also ordered Benitez to serve five of supervised release on completion of the prison term.
Hall, who pleaded guilty to conspiracy to distribute fentanyl and cocaine, was sentenced to 10 years in prison by Judge Friedrich, who also ordered Hall to serve five years of supervised release.
According to court documents, Benitez admitted to trafficking more than three kilograms of a mixture of substance containing fentanyl and 217 grams of cocaine from December 2022 until his arrest in May 2023. Hall admitted to trafficking nearly six kilograms of fentanyl to the metro area in the span of a few months.
Authorities learned that on December 13, 2022, two packages were shipped at the same time from a facility in Monterrey Park, California, to the Washington, D.C. area. Both packages were addressed to “Martes Benito,” on the 700 block of Congress Street, S.E. The shipper opened the first package pursuant to their own policies as the package was deemed suspicious by its employees. Virginia State Police and the DEA recovered approximately 700 grams of fentanyl pills and 200 grams of cocaine from the first package.
On December 17, 2022, the shipper informed law enforcement that a second package addressed to “Martes Benito” at the Congress Street address had been intercepted. Law enforcement obtained a state court warrant for the package. It was found to contain approximately one kilogram of fentanyl pills. Video from the shipping facility in Monterrey Park confirmed that Benitez mailed both packages at the same time on December 13, 2023, and the video footage shows the distinctive tattoos on Benitez’s left hand and left wrist.
Agents also learned that beginning in June 2022, approximately twice a month, Benitez made short trips, flying to Los Angeles, California and then returning to the Washington D.C. area. One of those trips took place from December 12 to December 13, 2023, which coincided with the date that both packages were shipped from the facility near Los Angeles in Monterrey Park. Hall often accompanied him on those trips and helped to ship packages of fentanyl to the Washington metro area.
On May 3, 2023, agents arrested Benitez in the District. Upon his arrest, agents executed a search warrant at his residence where they seized six grams of cocaine and 150 grams of fentanyl pills, a DPMS AR-style rifle and a Glock Model 19 handgun, $57,226 in cash, and implements used to ship the narcotics. The magazine in the AR-style rifle was loaded.
Hall addressed his packages to the 500 block of Rittenhouse Street, NW. On September 18, 2023, law enforcement arrested Hall in Maryland. In searching Hall’s residence, agents found 28 grams of suspected cocaine, a loaded Glock Model 30 handgun with an obliterated serial number, additional ammunition of different calibers, a money counter, a digital scale, and $1,500 in cash which Hall admitted was proceeds from his drug sales.
This investigation was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the FBI, the DEA, U.S. Postal Inspection Service Washington Division, and Virginia State Police. It is being prosecuted by Assistant U.S. Attorney Nihar Mohanty of the Violent Crime and Narcotics Trafficking Section and Assistant U.S. Attorney Alicia Long.
Two Men Admit to Federal Firearms OffensesRead the Press Release
WHEELING, WEST VIRGINIA – Two West Virginia men have admitted to firearms charges.
Mustafa A. Baker, age 54, of Wheeling, West Virginia, pled guilty today to the unlawful possession of a firearm. According to court documents and statements made in court, Baker was wanted on outstanding warrants of brandishing and destruction of property. Wheeling Police officers pulled over Baker’s vehicle and found a loaded 9mm semiautomatic pistol and 10 rounds of ammunition. Baker is prohibited from having firearms because of eight prior felony convictions in Virginia, including drug possession, 3rd offense DUI, felony domestic assault, and felony assault and battery.
Michael Douglas Murphy, Jr., age 38, of Hedgesville, West Virginia, pled guilty to making a false statement in applications for a firearm. According to court documents, Murphy falsified a form when purchasing a firearm at the licensed dealer in Martinsburg, claiming the firearm was for his personal use, when in fact, the firearm was for another individual who was prohibited by law from possessing firearms.
Investigative agencies include the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the West Virginia State Police; and the Wheeling Police Department.
Special Assistant U.S. Attorney John Kyle, also with the Brooke County Prosecutor's Office, and Assistant U.S. Attorney Kyle Kane are prosecuting the cases on behalf of the government.
Two Former Missouri Health Care Charity Executives Sentenced for Roles in Multimillion-Dollar Bribery and Embezzlement SchemeRead the Press Release
Two former executives of a Springfield, Missouri-based charity were sentenced for their roles in a multimillion-dollar public corruption scheme that involved embezzlement and bribes paid to multiple elected public officials in the State of Arkansas.
Bontiea Bernedette Goss, 65, was sentenced today to three years in prison, and her husband, Tommy “Tom” Ray Goss, 68, was sentenced on April 25 to six years in prison. They were also ordered to jointly pay $4.35 million in forfeiture and/or restitution.
According to court documents, Bontiea and Tom Goss were the former chief operating officer and chief financial officer, respectively, at Preferred Family Healthcare Inc., a charity that provided a variety of services to individuals in Missouri, Arkansas, Kansas, Oklahoma, and Illinois. Some of these services included mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities, and medical services. In exchange for the bribes and kickbacks offered and paid by the Gosses and their co-conspirators, elected state officials in Arkansas provided favorable legislative and official action for the charity, including, but not limited to, influencing legislation that would impact the charity and directing funds from the State’s General Improvement Fund.
In September 2022, both Bontiea and Tom Goss pleaded guilty to conspiracy to pay bribes and kickbacks to elected officials in Arkansas. Tom Goss also pleaded guilty to participating in the conspiracy by embezzling funds from the charity and to one count of aiding and assisting in the preparation and presentation of a false tax return.
In 2022, Preferred Family Healthcare also agreed to pay more than $8 million in forfeiture and restitution to the federal government and the State of Arkansas under the terms of a non-prosecution agreement, which acknowledged the criminal conduct of its former officers and employees.
As part of this long-running, multi-jurisdiction federal investigation, additional former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court, including the following:
- Former CEO Marilyn Luann Nolan, of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
- Former Director of Operations and Executive Vice President Robin Raveendran, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds.
- Former Executive and Head of Clinical Operations Keith Fraser Noble, of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony.
- Former employee and Head of Operations and Lobbying in Arkansas Milton Russell Cranford, also known as Rusty, of Rogers, Arkansas, was sentenced to seven years in prison after pleading guilty to one count of federal program bribery.
- Political consultant Donald Andrew Jones, also known as D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
- Former Arkansas State Senator Jeremy Hutchinson, of Little Rock, pursuant to a global plea agreement, pleaded guilty on June 25, 2019 in the Eastern District of Arkansas to filing a false tax return; pleaded guilty on June 25, 2019, to an information filed in the Western District of Arkansas to conspiracy to commit federal program bribery; and pleaded guilty in the Western District of Missouri on July 8, 2019, to conspiracy to commit federal program bribery. Hutchinson was sentenced to eight years in prison.
- Former Arkansas State Representative Eddie Wayne Cooper, of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare.
- Former Arkansas State Senator and State Representative Henry “Hank” Wilkins IV pleaded guilty to conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the State of Arkansas of their right to honest services. Wilkins was sentenced to one year and one day in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Teresa A. Moore for the Western District of Missouri; U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas; U.S. Attorney David Clay Fowlkes for the Western District of Arkansas; Special Agent in Charge Thomas F. Murdock of the IRS Criminal Investigation (IRS-CI) St. Louis Field Office; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Inspector General Michael E. Horowitz of the Justice Department Office of Inspector General; Special Agent in Charge William J. Hannah of the Justice Department Office of the Inspector General, Midwest Region; Inspector General Larry D. Turner of the Department of Labor Office of Inspector General; and Assistant Inspector General for Investigations Shimon R. Richmond of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General made the announcement.
IRS-CI, FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and FDIC investigated the cases.
Acting Deputy Chief Marco A. Palmieri and Trial Attorneys Jacob Steiner and Aaron Jennen of the Criminal Division’s Public Integrity Section; Supervisory Assistant U.S. Attorney Randall Eggert for the Western District of Missouri; Assistant U.S. Attorney Stephanie Mazzanti for the Eastern District of Arkansas; and Assistant U.S. Attorneys Ben Wulff and Steven M. Mohlhenrich for the Western District of Arkansas are prosecuting the cases.
The Justice Department Supports More Competition and Lower Prices for Communications from Jails and PrisonsRead the Press Release
The Justice Department’s Antitrust Division today filed comments with the Federal Communications Commission (FCC) in support of efforts to lower prices and improve the quality of incarcerated people’s communications services (IPCS).
“Telephone services are a lifeline between incarcerated people and the outside world,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Regular and reliable communication keeps families connected and reduces recidivism after release. I applaud the FCC for its work over the past decade to make rates and charges for incarcerated people’s communications services more fair, just, and reasonable. We encourage the FCC to build on this work as it considers new rules in this area.”
Communication with loved ones can improve incarcerated people’s wellbeing. It also provides significant benefits to families, especially to children with incarcerated parents. Yet as the department’s comment details, a small group of corporations now dominate the market for IPCS. As a result, phone calls in prison and jail are often low quality and prohibitively expensive. In fact, as many as one third of families with incarcerated family members have gone into debt to pay for calls and visits to prisons.
The department’s comment, filed as an ex parte submission to assist the FCC in their implementation of the Martha Wright-Reed Just and Reasonable Communications Act of 2022, suggests a number of regulatory safeguards that would promote competition, better align market incentives and help to lower costs. All of these measures would provide much-needed relief to American families trying to stay connected with incarcerated loved ones.
The Justice Department is committed to protecting the competitive process across the economy, and it has worked actively to promote competition in telecommunications. The department works closely with the FCC to promote competition through review of communications mergers and in other matters, and the department looks forward to continuing its work with the FCC to achieve affordable communications services for incarcerated people and their families.
Sunbury Man Sentenced to 24 Months in Prison for Failing to Comply with Sex Offender Registration RequirementsRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Xavier Josey, age 33, of Sunbury, Pennsylvania, was sentenced today to 24 months in prison on the charge of failing to comply with sex-offender registration requirements.
According to United States Attorney Gerard M. Karam, Josey was required to comply with the Sex Offender Registration and Notification Act due to a 2013 conviction for indecent liberties with a child in North Carolina, but failed to do so upon establishing a residence in Pennsylvania. The indictment charged that Josey traveled interstate to Pennsylvania, established a residence in Sunbury, but failed to register or update his sex offender registration information in Pennsylvania as required by the law.
In addition to the prison term, United States District Court Chief Judge Matthew W. Brann also ordered that Josey be supervised by a probation officer for five years following his release from prison, that he undergo sex-offender treatment, and that he comply with all registration requirements of the Sexual Offender Registration and Notification Act.
The charges were the result of an investigation by the United States Marshals Service – Harrisburg office. The case is being prosecuted by Assistant U.S. Attorney Michael Scalera.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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Stanislaus County Man Sentenced to over 19 Years in Prison for Trafficking MethamphetamineRead the Press Release
FRESNO, Calif. — Andrew Satariano, 43, of Modesto, was sentenced today to 19 years and seven months in prison for possessing with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 4, 2021, police tried to conduct a traffic stop on a vehicle Satariano was driving. Satariano stopped briefly, let a female out of the car, and then took off at a high rate of speed reaching speeds of up to 100 miles per hour. Satariano collided with several vehicles and the vehicle was disabled. Satariano fled from the car and hid nearby, after which police found and arrested him. Satariano had two loaded handguns, one of which was stolen and had a high-capacity magazine attached. He also had over 850 grams of pure methamphetamine that he was selling. Satariano’s sentence was affected by his extensive criminal history starting in 2001, which included prior convictions for evading police.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Stanislaus County District Attorney’s Office; the Stanislaus County Probation Department; and the Modesto Police Department. Assistant U.S. Attorney Kimberly Sanchez prosecuted the case.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Stanislaus County District Attorney’s Office; the Stanislaus County Probation Department; and the Modesto Police Department. Assistant U.S. Attorney Kimberly Sanchez 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 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.
Stanislaus County Man Sentenced to 18 Months in Prison for Passing Counterfeit Savings BondsRead the Press Release
SACRAMENTO, Calif. — Ronnie Douglas Fleming, 38, of Keyes, was sentenced today to 18 months in prison for one count of passing counterfeit obligations of the United States, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on 10 occasions between March and May 2022, Fleming passed 11 counterfeit United States savings bonds at banks in the Counties of Stanislaus, San Joaquin and other California counties. Fleming received $134,784 for the savings bonds.
This case was the product of an investigation by the U.S. Secret Service. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
Springfield CPA Pleads Guilty to Stealing $400,000 from Trust FundRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man pleaded guilty in federal court today to embezzling more than $400,000 from a trust fund under his control.
Ray Leonard Marple, 61, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with one count of wire fraud and one count of making a false federal tax return.
Marple, a certified public accountant, has been operating his own accounting firm since 1999. By pleading guilty today, Marple admitted that he embezzled approximately $432,981 from a revocable trust account from July 7, 2017, through May 3, 2023, following the death of the grantor.
According to the plea agreement, Marple would have been entitled to trustee fees less than $2,500 annually, or $17,500 total for the seven years, significantly less than he withdrew from the trust account for personal purposes. Marple therefore stole at least $415,481 from the trust account. Marple admitted he used proceeds from the fraud scheme to purchase his residential property in Springfield.
Marple also admitted that he under-reported his income on federal tax returns from 2018 to 2020. Marple earned nearly $177,000 in taxable income that was not reported over those three years, for which he owes $59,622 in federal income taxes.
Under the terms of today’s plea agreement, Marple must pay up to $415,481 in restitution to the trust and at least $59,622 in restitution to the Internal Revenue Service, as ordered by the court. Marple also must forfeit to the government a money judgment of $415,481 and his Springfield residential property.
Under federal statutes, Marple is subject to a sentence of up to 23 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation and the FBI.
Sioux Falls Woman Sentenced to Federal Prison for Possession of a Firearm by a Prohibited PersonRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, woman, convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on April 22, 2024, in Sioux Falls, South Dakota.
Christina Gonzalez, age 34, was sentenced to one year and eight months in federal prison, followed by three years of supervised release. She was ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Gonzalez was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in December of 2023. She pleaded guilty on February 6, 2024.
On October 20, 2023, law enforcement responded to a call of a suspicious person trespassing on private property. The reporting party advised the trespasser was a female and that she had a handgun in her possession. When law enforcement arrived, they located Gonzalez next to her vehicle parked near the property. When Gonzalez was placed under arrest, a search of her vehicle was conducted, and law enforcement located the handgun the witness previously saw in her possession.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sioux Falls Police Department. Assistant U.S. Attorney Paige Petersen prosecuted the case.
Gonzalez was remanded to the custody of the U.S. Marshals Service to continue serving her sentence.
Sioux Falls Man Charged with Conspiracy to Distribute Methamphetamine Sentenced to over 16 Years in Federal PrisonRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on April 22, 2024.
Edward Ward, 52, was sentenced to 16 years and eight months in federal prison, followed by five years of supervised release. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Ward was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in March of 2023. He pleaded guilty on January 23, 2024.
Ward obtained methamphetamine through the mail from a co-conspirator in California and re-distributed it in South Dakota. On May 3, 2022, Ward sold approximately four ounces of methamphetamine to a confidential informant who was working with law enforcement. Also on May 17, 2022, he sold another 5.5 ounces of methamphetamine to the informant during a controlled purchase orchestrated by law enforcement. Then again on May 26, 2022, Ward sold another eleven ounces of methamphetamine to the same informant. He was personally involved in the handling and distribution of approximately 100 pounds of methamphetamine during his involvement in the conspiracy.
This case was investigated by the Drug Enforcement Administration and the Sioux Falls Police Department. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Ward was immediately remanded to the custody of the U.S. Marshals Service.
Sarasota Man Pleads Guilty to Stealing Railroad Retirement Board Disability BenefitsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Allen R. Jenkins (68, Sarasota) has pleaded guilty to theft of government property. Jenkins faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Jenkins, a United States Railroad Retirement (USRRB) disability annuitant, was actively working in multiple capacities throughout the period he was receiving USRRB disability benefits and failed to report any of that work as required. Specifically, Jenkins was listed as a Registered Agent/Officer of at least 22 businesses, maintained five real estate broker’s licenses, and was licensed and working as a Community Association Manager. Jenkins failed to report this work activity, despite receiving annual reminder notices to report all work activity, and provided false, incomplete, and misleading answers on the one occasion he was directly asked about his work activity by the RRB. Jenkins was also buying and renovating properties for profit, which he did not report. Based on Jenkins’s failure to make the required reports, USRRB overpaid him approximately $271,124 in disability benefits.
This case was investigated by the Railroad Retirement Board, Office of the Inspector General. It is being prosecuted by Special Assistant United States Attorney Suzanne Huyler and Assistant United States Attorney Michael Gordon.
Sacramento County Man Indicted for Fraud in Connection with Medical Device SalesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment on April 25, 2024, against Michael Andrew Scott, 38, of Fair Oaks, charging him with wire fraud, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed today following Scott’s arrest.
According to court documents, between June 2018 and June 2022, Scott devised a scheme to defraud investors in his company, Trusted Medical Partnership. Scott told investors that either he or Trusted Medical Partnership received purchase orders from various health care providers in Northern California for medical devices but lacked the capital to fulfill the orders. Scott solicited and obtained loans from these investors, and, in exchange, promised them substantial returns in a relatively short time with zero risk. In order to convince some of his victims to lend him money, Scott sent them fabricated copies of these purchase orders. Scott’s victims lent him money on the basis of his false statements, including the fraudulent purchase orders, however, they received little to no returns on their investments. Instead, Scott spent the money on gambling, personal expenses, and payments to prior investors in order to keep the scheme running.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Dhruv M. Sharma is prosecuting the case.
If convicted, Scott faces a maximum statutory penalty of 20 years in prison and a $250,000 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.
Russian National Residing in Sacramento Sentenced to 12 Years in Prison for Attempting to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
SACRAMENTO, Calif. — Murat Kurashev, 37, a Russian national who resided in Sacramento, was sentenced today to 12 years in prison for attempting to provide material support to a designated foreign terrorist organization, U.S. Attorney Phillip A. Talbert announced.
“This sentence holds Kurashev accountable for attempting to provide material support to a designated terrorist organization,” said U.S. Attorney Talbert. “Kurashev’s attempts to provide that material support were not isolated. They took place over a substantial period of time and his intent with those financial transfers was clear. We appreciate the court’s thoughtful consideration of this case and its recognition of the seriousness of Kurashev’s offense. Working with our investigative partners, we will continue to vigorously prosecute those who seek to provide material support to terrorist organizations.”
“The FBI’s mission is clear – to protect the American people and uphold the Constitution. Anyone who provides support to a terrorist organization is a threat to the safety and security of all Americans, both here and abroad,” said Special Agent in Charge Siddhartha Patel of the FBI Sacramento Field Office. “I am grateful for the tireless dedication of FBI and U.S. Attorney’s personnel who are deeply committed to our partnership and ensuring all cases like these are thoroughly investigated and fairly prosecuted.”
According to court documents, Kurashev attempted to provide financial support to Hayat Tahrir al-Sham (HTS), which is designated by the Secretary of State as a foreign terrorist organization that engages in terrorism in Syria. Between July 2020 and February 2021, Kurashev used money transfer services to send approximately $13,000 to two known couriers of an HTS fundraiser. Records obtained from the money transfer services documented multiple transactions from Kurashev to the couriers in Turkey, usually in increments of $1,000. The couriers retrieved the funds often within 24 hours of transfer. Surveillance footage from money transfer businesses captured Kurashev during some of the transactions.
Social media and encrypted mobile messaging discussions between Kurashev and the fundraiser made clear that Kurashev was fully aware of the fundraiser’s violent extremist ideology and participation and work on behalf of HTS. Kurashev stated that he wished he could join the fight in Syria as a mujahideen and regretted that he could only provide financial support. As their conversations showed, Kurashev and the fundraiser believed that providing money in support of the HTS fighters was tantamount to being engaged in violent jihad.
According to court documents, Kurashev followed the fundraiser’s online presence and various social media accounts, which included solicitations for money to purchase military equipment, boots, clothing, firearms, and, in one case, a motorcycle. Forensic analysis of Kurashev’s Apple iCloud account revealed it to be replete with violent extremist content, including a video depicting HTS fighters.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Heiko P. Coppola and Trial Attorney Dmitriy Slavin of the Department of Justice’s Counterterrorism Section prosecuted the case.
Rochester man sentenced to more than 12 years in prison for drug trafficking and gun possessionRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Torrence Dyck, 51, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine and possession of firearms and ammunition by a convicted felon, was sentenced to serve 150 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Dyck operated a drug house on Warsaw Street in Rochester, using workers, who he recruited and paid, to distribute street-level quantities of cocaine to customers at the drug house. During the investigation, law enforcement recovered approximately 640 grams of cocaine, more than $20,000 in drug proceeds, drug packaging materials, and two firearms. Dyck has four prior felony convictions for Robbery, Criminal Negligent Homicide, federal narcotics conspiracy, and Aggravated Unlicensed Operation of a Motor Vehicle and Operating a Motor Vehicle Under the Influence of Alcohol, and is legally prohibited from possessing firearms.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division. Additional assistance was provided by the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Rensselaer Felon Pleads Guilty to Illegally Possessing FirearmRead the Press Release
ALBANY, NEW YORK – Andrew Williams, age 38, of Rensselaer, New York, pled guilty today to illegally possessing a rifle as a previously convicted 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.
Williams admitted that on May 2, 2023, he possessed the rifle and 15 other firearms, as well as ammunition, at his residence in Rensselaer. A prior felony conviction for burglary in the third degree prevented Williams from legally possessing the firearms and ammunition.
Williams will be sentenced on September 4, 2024, by United States District Judge Mae A. D’Agostino. Williams faces up to 15 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by ATF and the East Greenbush Police Department, with the assistance of the Rensselaer County District Attorney’s Office. Assistant U.S. Attorneys Emmet O’Hanlon and Mikayla Espinosa are 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.
Readout of Pardon Attorney’s Outreach Efforts During Second Chance MonthRead the Press Release
During the month of April, which is recognized as Second Chance month, the Office of the Pardon Attorney hosted a number of events to highlight opportunities for both currently incarcerated and formerly incarcerated individuals. On Monday, April 22, and Tuesday, April 23, Pardon Attorney Elizabeth G. Oyer and staff members of the Office of the Pardon Attorney held a series of meetings and trainings in partnership with the Federal Bureau of Prisons (FBOP) as part of the department’s initiative to increase the accessibility and transparency of the clemency process through education and community engagement. In 2023, the Office met with over 1,800 people in Federal Bureau of Prisons facilities to provide information about applying for clemency.
On Monday, Pardon Attorney staff visited FCI Danbury, a low security co-ed institution. The Pardon Attorney’s team met with over 200 inmates and staff during their visit. The team provided a series of educational sessions about the federal clemency process and answered questions from inmates and staff.
On Tuesday, the Pardon Attorney and members of her team met with over 1,100 incarcerated people and staff throughout the Yazoo City Federal Correctional Complex (FCC) in Yazoo City, Mississippi. The Pardon Attorney and her team conducted educational sessions at all three of the institutions in the FCC – Low I, Low II and Medium. Staff attended a session at the training center for FBOP employees and then visited each of the institutions with the Pardon team.
Following the Yazoo City visit, Pardon Attorney Oyer and her staff traveled to Jackson, Mississippi, to meet with Judge Carlton Reeves, U.S. Attorney Todd Gee for the Southern District of Mississippi, Federal Public Defender Omodare Jupiter and U.S. Probation Officer Mark Quarles. During the meeting, U.S. Attorney Gee shared the critical steps his office has taken to expedite the review of cases and improve the clemency process.
“Collaboration among stakeholders in the criminal justice system is essential to ensuring a well-functioning clemency process,” said Pardon Attorney Oyer. “Our visits to the Federal Bureau of Prisons have allowed us to provide thousands of incarcerated people with the knowledge and tools to utilize the clemency application process effectively. We have also educated hundreds of FBOP staff about the important role they can play in the process. Direct outreach and engagement with those in prison is essential to promoting public confidence in the clemency process.”
The visits to FCI Danbury and Yazoo City FCC were the sixth and seventh in a series of quarterly educational events that the Pardon Attorney is conducting for incarcerated people and staff at different FBOP locations.
April is recognized as Second Chance Month which helps to educate and highlight the resources available to those who are leaving incarceration. This April, the Office of the Pardon Attorney hosted its second annual “Celebration of Second Chances.” Deputy Attorney General Lisa Monaco, Pardon Attorney Oyer and other Justice Department officials delivered remarks highlighting the Justice Department’s support for second chances. The Justice Department is committed year-round to improving opportunities for rehabilitation and redemption and reforming and streamlining the clemency process. In December 2023, the department released a fact sheet detailing the actions taken to improve transparency, accessibility, efficiency and public engagement. Recent improvements include simplification of clemency forms to ensure that they are easy to understand and to use. The Office is also taking steps to reduce processing times and close long-pending petitions. As Deputy Attorney General Monaco noted in her remarks, the Office has reviewed approximately 12,000 clemency applications during the last two years. The department continues to engage with and educate the public on the clemency process.
Raleigh Man Sentenced to 40 Years for Leadership Role in Cross-Country Drug ConspiracyRead the Press Release
RALEIGH, N.C. – Lawrence Levon Jones, age 45, of Raleigh, was sentenced to 480 months in prison for his role as a leader of a Raleigh-based drug organization that sourced drugs from Los Angeles, California, and Newark, New Jersey. Jones was convicted by a federal jury of drug trafficking and firearms offenses in December 2023. He has eight prior felonies, including seven drug trafficking offenses and one conviction for felon in possession of a firearm.
“This operation – which seized nine guns, over a hundred kilos of narcotics, and over three-quarters of a million dollars from a prolific drug trafficker – is a perfect example of our enforcement strategy. We are partnering with Raleigh Police to bring federal tools to dismantle the trans-national drug trafficking networks touching our Capital City,” said U.S. Attorney Michael Easley. “Jones’ stored cocaine, ecstasy, and ‘kilo presses’ in a Raleigh stash house and had narcotics shipped across our interstates in a hidden compartment made to look like a stack of lumber on a truck. Today marks the end of the road for Lawrence Jones and his enterprise.”
“Jones and his partners boldly believed they could run their cross-country drug trafficking operation from Raleigh without detection. The FBI and our law enforcement partners at the Raleigh Police Department worked tirelessly to ensure everyone involved in this conspiracy is held accountable for peddling drugs in our community,” said Robert M. DeWitt, the Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina.
According to court records and evidence presented at trial, during an investigation into drug trafficking activity, which included surveillance and wiretaps, agents determined that Jones regularly traveled to Los Angeles and Newark, picked up money from conspirators who were holding for him, and purchased large quantities of cocaine and marijuana. Couriers transported the drugs to the Raleigh area.
On July 22, 2020, law enforcement in Texas stopped one of these couriers traveling eastbound from California and seized 400 pounds of marijuana and three kilograms of cocaine from a hidden compartment in the back of the truck that had been constructed to look like a large stack of lumber. That same day, agents arrested Jones when he arrived at his stash house in Raleigh. Inside the home, agents found 3.5 kilograms of cocaine, 138 grams of crack, 2 kilograms of marijuana, hundreds of ecstasy pills that contained methamphetamine, two handguns (one stolen), over $99,000 in cash, and five-kilo presses. Over the next two days, agents executed multiple search warrants at homes used by Jones’s organization in Raleigh and California and seized nine guns, over $757,000, and additional drugs.
The prosecution of Jones was a part of the Organized Crime and Drug Enforcement Task Force Operation (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Other defendants associated with Jones pled guilty to drug trafficking and or firearms offenses and received the following sentences imposed by U.S. District Judge James C. Dever III:
-Tyrone Bragg, of Raleigh, pled guilty to drug trafficking conspiracy and firearms charges and received a sentence of 168 months in prison followed by five years of supervised release;
-Calvin Lamar Kelley, of Keysville, Georgia, pled guilty to a drug trafficking conspiracy charge and received a sentence of 60 months in prison followed by four years of supervised release;
-Wesley Kimball Kelly, of Atlanta, Georgia, pled guilty to a drug trafficking conspiracy charge and received a sentence of 35 months in prison followed by five years of supervised release;
-Keishron Ko-She Kilpatrick, of Raleigh, pled guilty to drug trafficking conspiracy and firearms charges and received a sentence of 84 months imprisonment followed by three years of supervised release;
-Marquis Deja Brite, of Raleigh, pled guilty to drug trafficking conspiracy and firearms charges and received a sentence of 90 months in prison followed by five years of supervised release;
-Hurley Matthew Cannady, of Raleigh, pled guilty to drug trafficking conspiracy and firearms charges and received a sentence of 117 months in prison followed by five years of supervised release;
-David Earl Seawell, Jr., of Raleigh, North Carolina, pled guilty to drug trafficking conspiracy charges and received a sentence of 78 months in prison followed by five years of supervised release and
-Robert McNeal, of Raleigh, pled guilty to drug trafficking conspiracy and is awaiting sentencing.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. District Judge James C. Dever III sentenced the defendant. The Raleigh Police Department and Federal Bureau of Investigation investigated the case, and Assistant U.S. Attorneys Casey Peaden and Nick Hartigan prosecuted it. Investigators also received valuable assistance from the Drug Enforcement Administration and the 32nd Judicial District Attorney’s Office in Texas.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-00388-D-1.
Port Charlotte Man Sentenced to More Than 4 Years in Federal Prison for Child Sexual Abuse OffensesRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Richard Welbourne (67, Port Charlotte) to 51 months in federal prison for possessing and accessing with intent to view images depicting the sexual abuse of children. Welbourne was also sentenced to 15 years of supervised release and ordered to register as a sex offender. Welbourne pleaded guilty on January 12, 2024.
According to court documents, from August 7, 2022, through November 15, 2022, Welbourne knowingly possessed and accessed with intent to view child sexual abuse material that he had searched for, downloaded, and viewed from the internet.
In June of 2022, the National Center for Missing and Exploited Children (NCMEC) received four cybertips from an Electronic Service Provider reporting that Welbourne was involved in the possession of child sexual abuse material (CSAM).
On November 15, 2022, the FBI executed a search warrant at Welbourne’s residence in Port Charlotte, Florida and Welbourne’s computer was seized. In addition, agents spoke with Welbourne, who admitted that he would click on links that contained CSAM. Welbourne admitted that he would save the links to his “favorites” in the web browser so he could easily access the sites in the future. Welbourne said that he did not save any of the images or videos to his computer. Welbourne also admitted that he had seen girls as young as 4 or 5 years old on the CSAM sites that he visited and to accessing the internet to view CSAM for approximately 20 years.
A subsequent forensic examination of Welbourne’s computer revealed child sexual abuse material.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force, which includes the Charlotte County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Orlando Man Charged with Trafficking over 20 Kilograms of CocaineRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Tyrone Jose Beltran Lugo (27, Orlando) with possession with intent to distribute five kilograms or more of cocaine. If convicted, Beltran Lugo faces a maximum penalty of life in federal prison.
According to court documents, a federal search warrant was executed at a residence used by Beltran Lugo. At the residence, agents located over 20 kilograms of cocaine, approximately $96,000 in currency, nearly 85 grams of heroin, and two loaded handguns with extended magazines.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, with valuable assistance from the United States Postal Inspection Service and the Orange County Sherriff’s Office. It will be prosecuted by Assistant United States Attorney Noah P. Dorman.
Orange County Sober Living Homes Owner Indicted for Allegedly Paying Nearly $175,000 in Kickbacks to ‘Body Brokers’ for Referring PatientsRead the Press Release
SANTA ANA, California – The owner and operator of addiction treatment facilities in Orange County is expected to be arraigned today on a federal grand jury indictment alleging he paid nearly $175,000 in illegal kickbacks to so-called “body brokers” in exchange for finding him new patients.
Scott Raffa, 57, of Newport Beach, was arrested Saturday at Los Angeles International Airport. He is scheduled for arraignment this afternoon in United States District Court in Santa Ana. Raffa is charged with 12 counts of illegal remunerations for referrals to clinical treatment facilities.
According to the indictment that a grand jury returned on April 10, Raffa operated Orange County-based sober living homes, including Sober Partners Waterfront Recovery Center, Sober Partners Reef House, and Sober Partners Beach House. These facilities treated patient populations that received health care benefits through health insurers.
Raffa allegedly paid thousands of dollars per patient in illegal kickbacks to individuals who referred patients to his facilities, a practice known as “body brokering.” The body brokers in this case each controlled their own business entities and Raffa allegedly paid them kickbacks by depositing checks or wiring money to bank accounts that the brokers controlled. The kickbacks were intended as compensation for the brokers referring patients and to induce the brokers to continue to refer patients to Raffa’s facilities, the indictment alleges.
Raffa allegedly entered into sham contracts with certain body brokers that were designed to conceal the nature of the illicit payments, including by purportedly prohibiting payments from Raffa’s sober living homes based on “volume or value” of the body brokers’ patient referrals.
The brokers and Raffa allegedly met or would communicate via encrypted messaging services to calculate and negotiate the kickback amounts he owed the brokers for patient referrals. The kickback amounts allegedly were based on the insurance revenues that Raffa expected to receive for the respective patients, factoring in each patient’s insurance provider and the duration of the patient’s treatment at one of his sober living homes. Raffa refused to pay the kickbacks unless patients received at least 21 days’ treatment at one of his facilities, according to the indictment.
From April 2020 to October 2021, Raffa paid a total of $174,600 in illegal kickbacks to body brokers, the indictment alleges.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, Raffa would face a statutory maximum sentence of 10 years in federal prison for each count.
The FBI is investigating this matter.
Assistant United States Attorneys Benjamin R. Barron and Nandor Kiss of the Santa Ana Branch Office are prosecuting this case.
O.C. and Houston Men Sentenced to Decades in Prison for Supplying Fentanyl and Other Drugs Sold on Darknet and Causing Fatal ODsRead the Press Release
SANTA ANA, California – Two men, one from Orange County and the other from Texas, were sentenced today to lengthy prison terms for using the darknet and encrypted messaging applications to sell more than 120,000 fentanyl-laced pills and other drugs to more than 1,000 customers across the country, causing several fatal overdoses in the process.
Michael Ta, 25, of Westminster, was sentenced to 260 months (21 years and eight months) in federal prison by United States District Judge David O. Carter. At a separate hearing today, Judge Carter sentenced Rajiv Srinivasan, 37, of Houston, to 235 months (19 years and seven months) in federal prison.
Ta pleaded guilty in August 2023 to one count of conspiracy to distribute controlled substances. Srinivasan pleaded guilty in June 2023 to the same charge and to one count of distributing fentanyl resulting in death.
Srinivasan operated the account “redlightlabs” on multiple darknet marketplaces, including the site “Dark0de.” Srinivasan and Ta used the redlightlabs account to advertise and sell counterfeit M30 oxycodone pills containing fentanyl and other illicit drugs.
Srinivasan also used the encrypted messaging application Wickr to communicate with and sell drugs to customers. Srinivasan received virtual currency as payment for the drugs and then routed that virtual currency through cryptocurrency exchanges.
Ta communicated with Srinivasan about drug orders, obtained fentanyl-laced pills and methamphetamine from sources of supply, stored those drugs in his residence, and mailed out packages with drugs to customers who had ordered them from Srinivasan on the “redlightlabs” account.
From at least February 2022 to November 2022, Srinivasan and Ta engaged in at least 3,800 drug deals to approximately 1,400 customers in all 50 U.S. states, totaling more than 123,000 fentanyl-laced M30 pills, more than 9 kilograms (20 pounds) of methamphetamine, nearly 300 grams of “China white” (fentanyl powder) and black tar heroin, and 27 grams of cocaine.
Ta and Srinivasan admitted in their plea agreements to causing the fentanyl overdose deaths of three victims. Both defendants further admitted to distributing fentanyl-laced pills to two additional victims, both of whom suffered fatal drug overdoses shortly after they received the pills from Ta and Srinivasan.
Prosecutors wrote in a sentencing memorandum, “the five victims of defendants’ crimes ranged in age from 19 to 51. They lived across the country, from California to Florida, Colorado to Arkansas. Each of the five victims leaves behind a family that has been forever and fundamentally changed by defendants’ actions. [Ta and Srinivasan] also victimized countless others as part of an epidemic of addiction and despair plaguing our district and our country.”
In a related case, Omar Navia, 39, of South Los Angeles, pleaded guilty today to one count of conspiracy to distribute controlled substances. Navia admitted in his plea agreement that, from at least August 2021 to December 2022, he supplied fentanyl-laced pills and methamphetamine to Srinivasan and Ta’s customers. Navia faces a 10-year mandatory minimum prison sentence and a statutory maximum sentence of life imprisonment at his August 19 sentencing hearing.
Adan Ruiz, 27, of Garden Grove, a co-defendant in the Navia criminal case and an alleged co-conspirator with Srinivasan and Ta, has pleaded not guilty to one count of conspiracy to distribute controlled substances and one count of distribution of fentanyl. His trial is scheduled for September 24. Both Navia and Ruiz are in federal custody.
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.
The FBI investigated this matter. The United States Postal Inspection Service, and the United States Attorney’s Office for the Southern District of Texas provided substantial assistance.
The investigation in this matter was conducted under the auspices of the FBI-led Joint Criminal Opioid Darknet Enforcement Team (JCODE), which targets darknet vendors by using sophisticated, high-tech techniques to identify drug traffickers who wrongly believe the dark web allows them to engage in criminal conduct with anonymity. Since its inception in 2018, JCODE investigations have resulted in the arrest of more than 300 darknet drug traffickers, as well as the seizure of more than $42 million in drug-tainted proceeds, over 800 kilograms of narcotics, and approximately 145 firearms.
The Northern Colorado Drug Task Force (NCDTF) also helped investigate this matter. NCDTF works to protect the community by identifying, investigating, and impacting drug-related crime in Larimer County. Participating agencies who make this effort possible include Fort Collins Police Services, Larimer County Sheriff's Office, Loveland Police Department, Windsor Police Department, the Eighth Judicial District Attorney’s Office, and Colorado Adult Parole. The Drug Enforcement Administration’s Fayetteville Resident Agency also assisted during the investigation.
Assistant United States Attorney Gregg E. Marmaro of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
Newport Man Detained on Federal Charge of Child EnticementRead the Press Release
PROVIDENCE, RI – A Newport man who is alleged to have enticed a minor female to engage in illicit sexual activity and who was allegedly found to be in possession of child pornography has been ordered detained in federal custody, announced United States Attorney Zachary A. Cunha.
Kyle Patrick Tormey, 39, is charged by way of a federal criminal complaint with enticement of an individual less than eighteen years of age to engage in sexual activity, receipt of child pornography, and possession of child pornography. He was ordered detained at his initial appearance in U.S. District Court on Friday.
It is alleged in charging documents that Tormey repeatedly communicated with a minor female on various social media platforms, enticing the young girl to provide him with photographs of herself and to meet with him to engage in illicit sexual activity. It is alleged that at the end of a sexual encounter in Tormey’s van in late December 2023, he gave the minor victim $200 in cash.
It is further alleged that as a result of the execution of federal court-authorized search warrants, law enforcement discovered multiple images of the minor victim in various stages of undress stored in social media accounts belonging to Tormey; numerous communications with the girl that led up to the alleged sexual encounter; and multiple images of other minors that constituted child pornography.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Milind M. Shah.
The matter was investigated by the FBI and West Warwick Police Department. United States Attorney Cunha thanks the Newport Police for their assistance during the investigation and arrest of the defendant.
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.
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New Orleans Man Sentenced for Violating Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS - TYRONE SMOTHERS, age 42, of New Orleans, was sentenced on April 25, 2024 to 102 months imprisonment, followed by three (3) years of supervised release, and a $300 mandatory special assessment fee, by U.S. District Judge Eldon E. Fallon, after previously pleading guilty to possession with intent to distribute a controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, SMOTHERS was previously convicted of felony offenses in Orleans Parish. Due to his criminal history, he was prohibited from having a firearm. In the indictment against him, SMOTHERS was charged with illegally possessing multiple firearms, possessing fentanyl, cocaine, methamphetamine, and marijuana with the intent to distribute and, possessing firearms in furtherance of drug distribution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The case is being prosecuted by Special Assistant U.S. Attorney James Ollinger of the Violent Crime Unit.
New Orleans Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – NOEL CHENEAU, age 56, a resident of New Orleans, was sentenced on April 25, 2024 by U.S. District Judge Barry W. Ashe for violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to court records, the Drug Enforcement Agency and Federal Bureau of Investigation conducted government authorized wire intercepts targeting individuals who transported large quantities of narcotics from Houston, Texas to New Orleans. After learning that another individual discussed supplying CHENEAU with heroin, federal agents contacted CHENEAU. CHENEAU then admitted that the discussions heard on intercepted calls involved drug trafficking and that CHENEAU’s drug trafficking activity involved more than 100 grams of heroin.
As part of CHENEAU’s guilty plea, CHENEAU also admitted to a prior federal drug trafficking conviction from the United States District Court for the Southern District of Texas, for conspiracy to distribute 500 grams or more of cocaine, a violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B) and 846. The prior conviction increased the penalties against CHENEAU pursuant to recidivist enhancement provisions of federal law.
Judge Ashe sentenced CHENEAU to 120 months imprisonment, the mandatory minimum, to be followed by eight years of supervised release. Judge Ashe also ordered CHENEAU to pay a mandatory special assessment fee of $100.
The case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney David Haller, Senior Litigation Counsel.
Nevada Man Arrested and Indicted After Allegedly Stealing over $7M Worth of Treasury ChecksRead the Press Release
St. George, Utah – An indictment was unsealed today following the arrest of a Nevada man who was indicted earlier this month by a federal grand jury for multiple federal crimes, including bank fraud.
According to court documents, Kyle Eugene Duncan-Carle, 40, of Las Vegas, Nevada carried out a scheme to defraud multiple credit unions from January 2023 through September 2023 in the District of Utah. Duncan-Carle conducted the scheme by obtaining stolen U.S. Treasury checks made out to individuals and companies, assuming the identity of the individuals whose names were on the checks, opening credit union accounts under the assumed identities, and then depositing the checks and withdrawing the funds. The scheme resulted in Duncan-Carle obtaining at least six stolen treasury checks that totaled $7,075,695.55. This included an incident in April 2023 when Duncan-Carle assumed a victim’s identity, opened an American First Credit Union account under the victim’s name, and deposited a stolen tax-refund check for $821,333 made out to the victim. Duncan-Carle was arrested over the weekend in Lyon County, Nevada.
Duncan-Carle is charged with bank fraud, aggravated identity theft, and receipt of stolen government property. Because Duncan-Carle was arrested in Nevada, his initial court appearance on the indictment will take place at a United States District Courthouse in Nevada.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated by the Internal Revenue Service, Criminal Investigations (IRS-CI); the Internal Revenue Service Treasury Inspector General for Tax Administration (TIGTA); and the FBI Salt Lake City Field Office.
Assistant United States Attorneys Stephen P. Dent and Luisa Gough of the U.S. Attorney’s Office for the District of Utah are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.Mission Man Sentenced for Commission of a Crime of Violence while Failing to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Mission, South Dakota, man convicted of Failure to Register as a Sex Offender; Assaulting, Resisting, and Impeding a Federal Officer with a Dangerous Weapon; and Commission of a Crime of Violence while Failing to Register as a Sex Offender. The sentencing took place on April 24, 2024.
Louis Andrew Rabbitt, Jr., age 42, was sentenced to six years and five months in federal prison, followed by five years of supervised release, and ordered to pay a $300 special assessment to the Federal Crime Victims Fund.
Rabbitt was indicted by a federal grand jury in October and December of 2023. He was convicted of all counts on January 25, 2024, following a three-day jury trial in federal district court in Pierre, South Dakota.
According to evidence presented at trial, Rabbitt failed to update his sex offender registration after moving from his registered address in July of 2023. Rabbitt had continued to fail to update his sex offender registration when the U.S. Marshals Service arrived to arrest Rabbitt pursuant to an arrest warrant on September 20, 2023. In an effort to avoid arrest, Rabbitt threatened Deputy U.S. Marshals with a baseball bat before being apprehended.
This case was investigated by the U.S. Marshals Service with the assistance of the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Wayne Venhuizen and Meghan Dilges prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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.
Rabbitt was immediately remanded to the custody of the U.S. Marshals Service.
Michael Wayne Bentley Sentenced to over 23 Years Imprisonment for Firearm and Drug OffensesRead the Press Release
GREENEVILLE, Tenn. – On April 29, 2024, Michael Wayne Bentley, III, 28, of Gray, Tennessee, was sentenced to 284 months of imprisonment by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville. Following his incarceration, Bentley will be on supervised release for five years.
On December 14, 2023, following a three-day jury trial, Bentley was found guilty of conspiracy to distribute 50 grams or more of methamphetamine and attempting to possess with the intent to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)A); and using, carrying, and/or brandishing a firearm during and in relation to a drug trafficking offense, in violation of 18 U.S.C. § 924(c)(1)(A)(ii).
The evidence presented at trial demonstrated that Bentley arranged to receive deliveries of methamphetamine to the Kingsport area via the U.S. Postal Service from a source of supply located in Mexico. Law enforcement intercepted one postal package containing more than 894 grams of methamphetamine. Approximately three weeks later, another package was intercepted, containing more than 839 grams of methamphetamine. That package was addressed to Bentley’s grandparent’s residence. Agents replaced the methamphetamine in the second package with items of a similar weight and the package was delivered. Agents testified they observed Bentley’s grandmother accept the package and, shortly thereafter, Bentley arrived at the residence. Once Bentley left the residence, agents approached Bentley and attempted to arrest him. Bentley pointed a firearm at the agents and fled on foot, with agents in pursuit. During the chase, Bentley again pointed his firearm at the agents and two agents discharged their firearms at Bentley, who was not injured. He was then taken into custody.
During a post-arrest interview, Bentley admitted to agents that he had been receiving methamphetamine through the U.S. mail and distributing it. He also admitted that he had acquired the firearm for protection from other drug dealers.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee, Special Agent in Charge, Rana M. Saoud, of the United States Homeland Security Investigations (“HSI”), and Inspector in Charge of the Atlanta Division, Tommy D. Coke, of the United States Postal Inspection Service (“USPIS”) made the announcement.
The criminal indictment was the result of an investigation by HSI, USPIS, and the Second Judicial Drug Task Force. This investigation was led by HSI Special Agent John Bulla.
Assistant United States Attorneys Emily Swecker and B. Todd Martin represented the United States.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Memphis Man Sentenced for Possession of 25 ‘Switch’ DevicesRead the Press Release
Memphis, TN – A federal judge has sentenced a Memphis resident to five years in federal prison for possessing 25 machine gun conversion devices, more commonly known as “switches”. United States Attorney Kevin Ritz announced the sentence today.
According to information presented in court, U. S. Customs and Border Protection agents intercepted a package from an overseas shipper addressed to Roosevelt Wilson, 43, which was found to contain 25 machine gun conversion devices. These devices significantly enhance the rate of fire of a semi-automatic firearm, converting a gun designed to fire a bullet and quickly reload after each trigger pull to instead function as a fully automatic weapon.
On February 28, 2023, officers made a controlled delivery of the package to the address listed. Wilson retrieved the package and the officers attempted arrest. The defendant then led officers on a high-speed pursuit through a residential neighborhood, tossing the package and a firearm out of his vehicle. Both were discovered along his path of travel. The firearm was later identified as a .40 caliber privately made, Glock-style gun with no serial numbers; it also had a machine gun conversion device affixed to it.
Wilson pled guilty on January 12 to possession of 25 machine gun conversion devices and to receiving and possessing 25 machine gun conversion devices that had been unlawfully imported into the United States. On April 25, 2024, United States District Thomas L. Parker sentenced Wilson to 60 months in federal prison followed by three years of supervised release.
Homeland Security Investigations and U. S. Customs and Border Protection investigated this case on behalf of the Department of Homeland Security. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Southaven Police Department, and the United States Marshals Service also provided assistance.
United States Attorney Ritz thanked Assistant United States Attorney Eileen Kuo, who prosecuted this case, as well as law enforcement partners who investigated the case.
Member of Violent Gang Pleads Guilty to Racketeering Involving Attempted MurderRead the Press Release
BOSTON – A Boston man pleaded guilty today to his role in Cameron Street, a violent Boston gang.
Eric Correia, a/k/a, “Bubba,” 26, has pleaded guilty to one count of conspiracy to participate in a racketeering enterprise, more commonly referred to as RICO conspiracy, and one count of distribution of and possession with attempt to distribute marijuana. U.S. Senior District Court Judge William G. Young scheduled sentencing for Sept. 11, 2024.
Correia was identified as a member of Cameron Street, a violent gang based largely in Dorchester that uses violence to preserve, protect and expand its territory, promote fear and enhance its reputation. According to the charging documents, members use social media applications to promote Cameron Street, celebrate murders and other violent crimes committed by the gang, as well as denigrate rival gangs – in particular, the Dorchester-based NOB gang (Norton, Onley and Barry Streets), known more generally as Wendover. Cameron Street members allegedly possess, carry and use firearms to murder and assault gang rivals as well as protect narcotics and drug proceeds. Cameron Street members also allegedly distribute controlled substances and firearms, commit armed robberies and engage in human trafficking in part to generate income for the Cameron Street enterprise.
Correia pleaded guilty to committing a March 2019 attempted murder with a firearm of a NOB/Wendover gang member on Clayborne Street in Dorchester. Additionally, Correia pleaded guilty to his role in an armed robbery of a drug customer as well as to distributing $1,400 worth of marijuana to a cooperating witness. Despite wearing a mask during the drug deal, Correia was identified through a “C” tattoo on his hand – a symbol commonly used by Cameron Street members to designate membership.
The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of distribution of marijuana provides for a sentence of up to five years in prison, at least two years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of Levy’s Criminal Division are prosecuting the case.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Media Advisory: Sentencing of Jareh DalkeRead the Press Release
What: United States Attorney for the District of Colorado Cole Finegan, and FBI Special Agent in Charge Mark Michalek, will speak at a press conference about the sentencing of Jareh Dalke, 31, of Colorado Springs.
Mr. Dalke will be sentenced by Judge Raymond P. Moore after pleading guilty in October 2023, to six counts of attempting to transmit classified National Defense Information to an agent of the Russian Federation
When: Monday, April 29, 2024
Sentencing begins at 10:30 a.m. The press conference will commence approximately 15 minutes after the end of the hearing. This is likely to occur after 1 p.m.Where: Steps of the Alfred A. Arraj United State Courthouse at 901 19th Street, Denver, CO
USA Finegan and SAC Michalek are not available for questions or interviews.
McAlester Resident Sentenced for Federal Firearm OffenseRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lawanna Renee Pogue, age 41, of McAlester, Oklahoma, was sentenced to time served for possessing a firearm after being previously convicted of a felony offense.
The charges arose from investigations by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On April 19, 2023, Pogue pleaded guilty to one count of Felon in Possession of a Firearm. According to investigators, on December 25, 2022, deputies with the Pittsburg County Sheriff’s Office stopped Pogue’s vehicle after observing a traffic infraction and located a .22 caliber firearm in the vehicle’s trunk compartment. Pogue later admitted to possessing the firearm despite her status as a convicted felon.
The Honorable Keith Starrett, U.S. District Judge in the United States District Court for the Southern District of Mississippi, sitting by assignment, presided over the hearing in Muskogee.
Assistant United States Attorney Joshua Satter represented the United States.
Maryland Man Pleads Guilty to a String of Armed Robberies and Attempted Robberies of Northwest Commercial BusinessesRead the Press Release
WASHINGTON – Roberto McBean, 30, of Hyattsville, MD, pleaded guilty in U.S. District Court on Friday to a string of 10 armed robberies and attempted robberies in the District between August 22, 2023, and January 8, 2024, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office, and Chief Pamela A. Smith of the Metropolitan Police Department.
McBean admitted to committing all 10 robberies. He pleaded guilty to four counts of interference with interstate commerce by robbery, aka Hobbs Act robbery, on April 26, 2024, before U.S. District Judge Colleen Kollar-Kotelly, who scheduled sentencing for September 5, 2024.
According to court documents, McBean used a small hammer to rob a Sunoco gas station on the 2400 block of Wisconsin Ave., NW, on August 22, 2023. On August 31, McBean used a small vegetable knife to rob the Georgetown Wine and Spirits on the 2700 block of P street, NW of cash and a bottle of red wine. On September 18, 2023, McBean was stymied when he brandished a knife at the Universal Wine and Spirits on the 2000 block of Florida Ave.-- a customer saw what was happening and barked “Not today, Get out!” and McBean left without taking any money. On November 23, 2023, McBean entered the Glover Park Market on the 2400 block of 37th Street, NW, with a black firearm and robbed the market of cash. On December 8, 2023, McBean gained entry to an Exxon gas station in Georgetown, on the 1600 block of Wisconsin Ave., NW, produced a gun and left with a small amount of cash. On December 8, 2023, McBean returned to the Sunoco gas station on Wisconsin Ave., produced his firearm, and ordered the employee to empty the register in a bag. On December 16, 2023, McBean returned to the Glover Park Market, went behind the counter, and opened the cash register. McBean took the cash from the register, multiple lottery tickets, and a plastic bag.
On December 20, 2023, McBean went back to the Georgetown Wine and Spirits shop and ordered an employee to empty the register. The employee told McBean that he didn’t have a key to the register and McBean pulled out a firearm and again demanded money. The employee picked up the entire register and handed it to McBean. McBean fumbled with the machine before handing it back. Unsuccessful, McBean left the store. On January 4, 2024, McBean entered Sara’s Market and Dry Cleaners on the 3000 block of Q Street NW. McBean picked up a bottle of wine, set it on the counter, and demanded cash. The employee said the market did not accept cash and only accepted electronic payments. McBean left the store with only a bottle of wine. On January 5, 2024, McBean again returned to the Glover Park Market armed with a handgun and ordered an employee to fill a bag with cash. In addition to the money, McBean took lottery tickets and two packs of cigarettes with him. On January 8, 2024, McBean returned to the Glover Park Market for the fourth time. The store employee recognized McBean as the same man who had robbed her in December and a few days before.
Agents with the FBI’s Washington Field Office arrested McBean on January 26, 2024.
Because each of the six stores that McBean robbed bought and sold goods in interstate commerce, McBean’s actions in each of the robberies delayed, obstructed, or affected interstate commerce.
This case was investigated by the FBI Washington Field Office Violent Crimes Task Force and the Metropolitan Police Department. It was prosecuted by Ryan Lipes and Omeed A. Assefi.
Marion County Man Pleads Guilty to Disability Benefit Fraud Involving the Department of Veterans AffairsRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Paul Lesslie Thompson (70, Anthony) has pleaded guilty to receipt of stolen government property. Thompson faces up to 10 years in federal prison and an order of forfeiture for at least $1.16 million, which represents the proceeds of the offense. A sentencing date has not yet been set.
According to court records, on January 26, 1983, Thompson applied for United States Veterans Affairs (VA) Disability Compensation based on a loss of vision. Between May 1993 and December 2022, Thompson exaggerated the impairment during his VA vision examinations. Based on his false representations to the VA, he eventually received 100 percent disability compensation. Despite his claims to the VA, however, Thompson maintained a Florida driver license and passed multiple associated vision examinations with the Department of Motor Vehicles. Based on his exaggerated visual impairment, Thompson fraudulently received $1,169,327.54 from the VA in disability compensation.
This case was investigated by the Department of Veterans Affairs - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Man Charged with Carjacking Resulting in DeathRead the Press Release
Orlando, FL –United States Attorney Roger B. Handberg announces the filing of a complaint charging Jordanish Garcia-Torres (28, Orlando) with carjacking resulting in death. If convicted, Garcia Torres faces a maximum penalty of death or life imprisonment.
According to the complaint, on April 11, 2024, Garcia-Torres carjacked a woman at gunpoint in Winter Springs, Florida, and forced her to drive to a location in Osceola County where she was murdered by gunshot and burned while in her vehicle.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff’s Office, with assistance from the Osceola County Sheriff’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the St. Cloud Police Department, the United States Postal Inspection Service, and the United States Marshals Service. It will be prosecuted by Assistant United States Attorneys Stephanie McNeff and Michael P. Felicetta.
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.
Madera County Man Sentenced to 10 Years in Prison for Distributing Fentanyl that Caused Overdose DeathRead the Press Release
FRESNO, Calif. — Elias Soliz, 26, of Madera, was sentenced today to 10 years in prison for distributing fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 3, 2023, Soliz knowingly distributed one fentanyl pill to J.M. in Madera. J.M. suffered a fatal overdose just a few hours later. Law enforcement searched Soliz’ phone under a warrant and found that Soliz had deleted communications with the victim that had been found on the victim’s phone. Law enforcement also located additional evidence of drug dealing.
This case was the product of an investigation by the Drug Enforcement Administration and the Madera Police Department. Assistant U.S. Attorney Antonio J. Pataca prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Louisiana Woman Pleads Guilty to Conspiracy to Possess with Intent to Distribute FentanylRead the Press Release
Gulfport, Miss. – A New Orleans, Louisiana woman pleaded guilty today to conspiracy to possess with intent to distribute one ounce of fentanyl.
According to court documents, Angelle McLaughlin, 30, was caught in the parking garage of a Mississippi casino engaging in a drug transaction. McLaughlin traveled with two other individuals from Louisiana to the Mississippi casino to sell fentanyl. Officers encountered the trio and found that McLaughlin was in possession of one ounce of fentanyl that was intended for sale to a recipient at the casino.
According to the U.S. Drug Enforcement Administration, fentanyl is approximately 100 times more potent than morphine and 50 times more potent than heroin. The DEA reports that two milligrams of fentanyl can be lethal, and one kilogram of fentanyl has the potential to kill 500,000 people. More facts on fentanyl can be found at https://www.dea.gov/resources/facts-about-fentanyl and https://www.dea.gov/resources/facts-about-fentanyl.
McLaughlin pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. She is scheduled to be sentenced on August 14, 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 and Assistant Special Agent in Charge Anessa Daniels-McCaw of the Drug Enforcement Administration made the announcement.
The Drug Enforcement Administration and the Hancock County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Erica Rose is prosecuting the case.
Leader of a Keene-Based Crack Cocaine Drug Trafficking Organization Sentenced to 70 Months in Federal PrisonRead the Press Release
CONCORD – A Vermont man was sentenced in federal court in Concord for conspiracy to distribute a controlled substance, namely crack cocaine, U.S. Attorney Jane E. Young announces.
Lamar Carter, 33, was sentenced by U.S. District Court Judge Samantha Elliott to 70 months in prison and 3 years of supervised release. On December 19, 2023, Carter pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute a controlled substance.
“The defendant admitted to leading a drug distribution organization that sold crack cocaine in Keene. After law enforcement searched the location used as a hub of operation, seizing a firearm, he was undeterred and continued to operate his illegal drug trafficking business from various hotel rooms in the Keene area,” U.S. Attorney Jane Young said. “Thanks to the diligent work of our law enforcement partners in Keene and at Homeland Security Investigations, the defendant was arrested and will no longer be able to distribute dangerous drugs that make their way into every community throughout the Granite State.”
“Carter led a group that brought deadly drugs into New Hampshire, exploiting addiction for his own profit. HSI is committed to working with local partners like the Keene Police Department to dismantle drug trafficking networks and make our communities safer,” said Michael J. Krol, Special Agent in Charge of Homeland Security in New England.
Carter was a leader of a drug distribution organization that obtained powder cocaine from New Jersey, “cooked” the cocaine to manufacture crack, and distributed the crack in and around Keene, New Hampshire. The organization had several employees who worked for Carter and conducted hand-to-hand drug transactions with customers. The organization operated out of a local resident’s home, as well as several hotel rooms.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the Keene Police Department. Assistant U.S. Attorney Jarad Hodes prosecuted the case.
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Laboratory Marketer and North Carolina Physicians Agree to Pay over $1.3M to Settle Kickback AllegationsRead the Press Release
Laboratory marketer Thomas Anthony Carnaggio, of Irmo, South Carolina, and his marketing company, as well as three physicians in Charlotte, North Carolina, Steven Bauer, M.D., Larry Berman, M.D. and Alireza Nami, M.D., and their medical practices, have agreed to pay a total of $1,373,400 to resolve alleged False Claims Act violations arising from their involvement in laboratory kickback schemes. The parties have agreed to cooperate with the Justice Department’s investigations of other participants in the alleged schemes.
“Using financial inducements to steer patients to a particular laboratory for taxpayer-funded testing can distort medical decision making and result in unnecessary services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will diligently pursue those who undermine the integrity of federal health care programs by violating rules designed to protect the programs and their beneficiaries from fraud and abuse.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, TRICARE, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that a marketer and his marketing company offered kickbacks to doctors on behalf of a laboratory in Anderson, South Carolina, and that doctors and their medical practices received kickbacks from the laboratory in return for laboratory referrals. The alleged kickbacks resulted in the submission of false or fraudulent laboratory testing claims to Medicare and TRICARE in violation of the False Claims Act.
- Thomas Anthony Carnaggio and South Ventures LLC. Carnaggio and his marketing company agreed to pay $400,000 to resolve allegations that from January 2017 to January 2020, Carnaggio and his company, on behalf of the laboratory, offered to doctors in North Carolina and South Carolina thousands of dollars in kickbacks disguised as purported office space rental and phlebotomy payments to induce the doctors to order laboratory testing. In addition, Carnaggio and his marketing company allegedly received commissions from the laboratory as independent contractors based on the volume and/or value of the Medicare and TRICARE referrals that they arranged for and/or recommended, in violation of the Anti-Kickback Statute.
- Steven Bauer and Ballantyne Medical Associates PLLC. Dr. Bauer and his medical practice agreed to pay $205,000 to resolve allegations that from May 2016 to December 2021, they received thousands of dollars in kickbacks in the form of purported office space rental and phlebotomy payments from the laboratory, in return for ordering testing. Dr. Bauer and his practice provided information that assisted the government’s investigation and received credit under the Department of Justice’s guidelines for taking cooperation into account in False Claims Act matters.
- Larry Berman and Larry F. Berman, M.D., P.C. Berman and his medical practice agreed to pay $385,000 to resolve allegations that from July 2017 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the laboratory in return for ordering testing.
- Alireza Nami and Joint and Muscle Medical Care, P.C. Nami and his medical practice agreed to pay $383,400 to resolve allegations that from November 2016 to November 2021, they received thousands of dollars in kickbacks from the laboratory disguised as the purchase price for used laboratory equipment, office space rental, and phlebotomy payments, in return for ordering testing.
“Schemes like this compromise the integrity of our healthcare programs,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “We will continue to pursue those engaged in illegal kickbacks and hold them accountable.”
“This resolution underscores our commitment to ensuring fair and ethical practices in the healthcare industry,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “The FBI, along with our law enforcement and regulatory partners, will continue to hold those accountable who defraud our healthcare systems for their personal gain.”
“Providers who participate in kickback schemes do so at the risk of undermining the integrity of federal healthcare programs,” said Special Agent in Charge Tamala Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG remains steadfast in its collaboration with law enforcement partners to diligently investigate individuals engaged in kickback schemes for personal gain.”
“It is unethical and wholly inappropriate for physicians to accept financial incentives to drive business,” said Special Agent in Charge Chris Dillard of the Defense Criminal Investigative Service (DCIS) Mid Atlantic Field Office. “Government healthcare systems are degraded and the reputation of the medical profession is tarnished when vendors pay medical providers kickbacks for use of their services. Working closely with our law enforcement partners, DCIS will continue to hold accountable those who choose to enrich themselves at the expense of patient health and trust.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from HHS-OIG, DCIS and the FBI.
Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Beth C. Warren for the District of South Carolina handled the case. The United States previously resolved allegations that physicians in South Carolina and Texas received kickbacks from the same laboratory.
The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are only allegations. There has been no determination of liability.
Kingsport Man Sentenced to Life in Prison for Role in Fentanyl Overdose DeathRead the Press Release
GREENEVILLE, Tenn. – On April 29, 2024, Terrance Lamont Hines, 42, of Kingsport, Tennessee, was sentenced to life in prison by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville. During the sentencing hearing, Judge Greer determined that Hines was both an armed career criminal under the applicable federal statutory law and a career offender under the federal sentencing guidelines. Following his incarceration, Hines will be on supervised release for 10 years.
Following a five-day trial, on June 26, 2023, a federal jury in Greeneville found Hines guilty of conspiring to distribute 400 grams or more of fentanyl with a resulting death in violation of 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A), multiple counts of distributing fentanyl in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C), possessing with intent to distribute more than 40 grams of fentanyl in violation of 21 U.S.C. § 841(a)(1) and 841(b)(1)(B), possessing a firearm in furtherance of drug trafficking in violation of 18 U.S.C. § 924(c), and possessing firearms by a convicted felon in violation of 18 U.S.C. § 922(g).
According to the evidence presented at trial, on December 3, 2020, the victim, a 52-year-old Kingsport woman, died in her home in Sullivan County. The victim’s husband located her unresponsive body. A subsequent autopsy and toxicology tests revealed that the victim had overdosed on fentanyl. After a lengthy battle with chronic pain, the victim had begun self-medicating with controlled substances she purchased from others.
Following a lengthy investigation by the Tennessee Bureau of Investigation (TBI), investigators were able to establish that Hines had supplied the fentanyl that resulted in the victim’s death and had distributed the fentanyl through a series of lower-level dealers and users. Three codefendants, Shaina K. Langford, 34, of Jonesborough, Tennessee, Adam Presnell, 37, of Knoxville, Tennessee, and Robin Hutchins, 63, of Kingsport, Tennessee, were part of the chain of distribution. Hines sold the fentanyl to Hutchins, who sold it to Presnell, who sold it to Lanford, who supplied it directly to the victim. Hutchins, Presnell, and Lanford previously pleaded guilty to conspiracy to distribute fentanyl.
After identifying Hines, investigators coordinated three controlled purchases of fentanyl from Hines. Investigators also obtained search warrants for Hines’ business, OD Records, and his apartment, both located in Kingsport. When executing those search warrants on July 20, 2021, investigators located evidence that was introduced at trial, including a 9mm pistol, over 100 grams of fentanyl with a street value exceeding $116,000, $1,400 in cash, an assault rifle, and other drug paraphernalia.
The jury specifically found that Hines had conspired to supply the mixture of fentanyl that caused the victim’s death.
Hines’ codefendants have been sentenced or are awaiting sentencing. Lanford was sentenced on November 20, 2023, to 120 months in prison. Presnell was sentenced on January 3, 2024, to 84 months in prison. Hutchins entered a plea of guilty on June 12, 2023, and she is scheduled to be sentenced on August 19, 2024.
“Fentanyl is an exceedingly dangerous drug, and overdose deaths from fentanyl have become all too common across Tennessee and the nation,” said United States Attorney Francis M. Hamilton III. “The United States Attorney’s Office and our law enforcement partners will continue to use every available resource to prosecute those who traffic fentanyl to provide justice to the victims and to deter others who might be considering trafficking in fentanyl.”
The criminal indictment was the result of an investigation by the Tennessee Bureau of Investigation and the Sullivan County Sheriff’s Office with assistance from the Drug Enforcement Administration and the Kingsport Police Department. This investigation was led by TBI Special Agent Scott Lott.
Assistant United States Attorneys Emily Swecker and Mac Heavener represented the United States.
This case was brought as 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 communication, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring results.
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Justice Department Secures Agreement to Resolve Sexual Harassment Lawsuit Against Savannah, Georgia, LandlordRead the Press Release
The Justice Department announced today that Iraj Shambayati, a landlord who owns and manages over 45 residential properties in and around Savannah, Georgia, has agreed to pay $600,000 to resolve allegations that he violated the Fair Housing Act (FHA) by sexually harassing and retaliating against his female tenants for over 15 years.
“No female tenant should have to endure sexual harassment and abuse in the sanctity of her own home,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement should send a clear message to housing providers and property owners: when you exploit your power and sexually harass and abuse tenants, the Justice Department will aggressively use federal civil rights laws to hold you accountable. As we mark National Fair Housing Month, we want survivors of these heinous acts to know that we stand with them and we encourage them to speak out and report complaints of unlawful sexual harassment.”
“Sexual harassment by a landlord is never acceptable,” said U.S. Attorney Jill E. Steinberg for the Southern District of Georgia. “This consent order takes Iraj Shambayati out of the property management business and emphasizes the Justice Department’s commitment to hold accountable landlords who would use their power to exploit tenants.”
Under the consent order approved by the United States District Court for the Southern District of Georgia, Shambayati and two other defendants, 1511 Rosewood LLC and IDHD Properties LLC, will pay $590,000 in monetary damages to female tenants and prospective tenants harmed by Shambayati’s conduct, as well as a civil penalty to the federal government. The order requires the defendants to vacate any retaliatory eviction judgments obtained against these tenants and to take steps to correct the tenants’ credit histories. The defendants are also prohibited from managing residential rental properties in the future and must retain an independent property manager for the properties.
The lawsuit, filed in August 2023, alleged that, since at least 2008, Shambayati harassed female tenants by making repeated and unwelcome sexual comments and advances, inappropriately touching their bodies without their permission, entering their homes without their permission or knowledge, requesting sexual acts from them in exchange for rent or other housing-related benefits and taking retaliatory actions against female tenants who rejected his sexual advances or complained about the harassment.
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Georgia handled the case.
Individuals who believe that they may have been victims of sexual harassment at rental dwellings owned or managed by Iraj Shambayati should contact the Justice Department at [email protected] or [email protected] or leave a message at 1-833-591-0291, selecting option 1 for English, option 2 for sexual harassment and then option 2 for Shambayati.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the department’s initiative is to address, deter and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 40 lawsuits alleging sexual harassment in housing and recovered nearly $12 million for victims of such harassment.
The FHA prohibits discrimination in housing based on sex, race, color, religion, national origin, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals can report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291 or submitting a report online. Individuals can also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Justice Department Recovers Fraudulent Transfer of Proceeds Arising from Kickback SchemeRead the Press Release
The Justice Department announced today that it reached a settlement worth over $16 million with Floyd Calhoun Dent, III arising from a health care fraud judgment against Dent as well as fraudulent transfer claims against Dent, certain members of his family, his family trust and several corporations owned or controlled by Dent that received millions in assets that were the proceeds of the fraud.
Dent, along with two other individuals, was found liable by a South Carolina jury in 2018 for submitting false claims to Medicare and TRICARE, in violation of the Anti-Kickback Statute and the False Claims Act. A judgment was subsequently entered against Dent and the other two individual defendants jointly for $114 million. The judgment was affirmed by the Fourth Circuit Court of Appeals in 2021.
Prior to the judgment, but after Dent’s company, BlueWave Healthcare Consultants Inc., which he owned jointly with co-defendant Brad Johnson, had been served with a Department of Health and Human Services Inspector General subpoena (IG subpoena), Dent transferred tens of millions of dollars in assets, which were the proceeds of his health care fraud scheme, to his spouse, his parents, his in-laws, a family trust and 10 corporations owned and/or operated by Dent. These transfers started within a few months of service of the IG subpoena and continued through 2015. In 2016, the District Court froze 12 parcels of real property that were owned by Dent and his spouse and certain of the Dent corporations.
In 2019, the United States filed an action under the Federal Debt Collection Procedures Act (FDCPA) against Dent and his spouse, the Dent children and the family trust, Dent’s parents and in-laws, the 10 Dent corporations, Dent’s sister, Dent’s long-time friend, two of Dent’s long-term employees and the spouse of one such employee. The 2019 lawsuit sought to recover amounts transferred by Dent to these entities and individuals.
As part of the settlement announced today, Dent, his spouse and his family, the family trust and the 10 Dent corporations are surrendering nearly all of their assets, which are valued at over $33.6 million, including 22 parcels of real property worth approximately $19 million, $5 million in gold and silver coins, $8 million in cash and $1 million in vehicles, boats, farm equipment and other personal property. The settlement requires the assets be surrendered to the Justice Department and the Liquidating Trustee for now bankrupt Health Diagnostic Laboratories Inc. (HDL), a blood testing laboratory that participated in the health care fraud with Dent and his co-defendants. The HDL Liquidating Trustee will split these assets between the United States and other creditors of HDL pursuant to a bankruptcy court agreement. The United States’ share of the recovered assets is expected to exceed $16 million.
“The payment of kickbacks has the potential to corrupt medical decision-making and to increase the cost of healthcare,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who pay or receive such kickbacks, as well as those who improperly seek to benefit from such violations by receiving the illegal proceeds.”
Previously, in 2022, the United States resolved claims against a long-time friend of Dent and a long-term employee of Dent and the employee’s wife. These claims settled for a combined total of $2.4 million, which was split between the United States and the HDL Liquidating Trustee.
“This recovery demonstrates our commitment to protect our federal health care programs so they can serve the people who need them most,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina.
The settlement announced today resolves the 2018 judgment against Dent in favor of the United States under the False Claims Act. It also resolves the United States’ allegations under the FDCPA that Dent’s transfer to certain family members, family corporations and the family trust were fraudulent transfers.
The settlement was the result of a coordinated effort between the Civil Division’s Fraud and Corporate/Financial Litigation Sections and U.S. Attorney’s Office for the District of South Carolina. Senior Trial Counsel Alicia J. Bentley and Trial Attorney Andrew Warner of the Civil Division and Assistant U.S. Attorneys James Leventis, Johanna Valenzuela and Joanna Stroud and Anne Frate (paralegal) for the District of South Carolina handled the FDCPA matter.
The cases are United States ex rel. Lutz, et al. v. BlueWave Healthcare Consultants, Inc., et al. (D.S.C. Case No. 9:14-cv-00230-RMG) (False Claims Act judgment) and United States v. AROC Enterprises, LLC, et al. (D.S.C. Case No. 9:19-cv-234 RMG) (Federal Debt Collection Procedures action).
The False Claims Act claims against Dent were adjudicated against him and other defendants. The fraudulent transfer claims resolved by the settlement are allegations only and there has been no determination of liability as to those claims.
SettlementJury Finds U.S. Army Major Guilty After He Smuggled Guns to Ghana in Blue Barrels of Rice and Home GoodsRead the Press Release
WILMINGTON, N.C. – A federal jury convicted a United States Army Major, currently assigned to Fort Liberty, on charges of dealing in firearms without a license, delivering firearms without notice to the carrier, smuggling goods from the United States, illegally exporting firearms without a license, making false statements made to an agency of the United States, making false declarations before the court, and conspiracy. Kojo Owusu Dartey, age 42, faces a maximum penalty of 240 months when sentenced on July 23, 2024.
“We are partnering with law enforcement agencies across the globe to expose international criminals – from money launderers to rogue international arms traffickers capable of fueling violence abroad,” said U.S Attorney Michael Easley. “Through a partnership with Ghanaian officials, this rogue Army Major was convicted at trial after smuggling guns to Ghana in blue barrels of rice and household goods. I want to thank the Ghana Revenue Authority and the International Cooperation Unit Office of the Attorney-General of Ghana for their assistance in the investigation. I also commend the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI) attachés to U.S. Embassy Accra and the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division for their significant assistance to this prosecution.”
“Far from being a victimless crime, firearms trafficking threatens public safety across our nation and beyond,” said Toni M. Crosby, Special Agent in Charge of the ATF Baltimore Field Division. “The Baltimore Field Division is proud to partner with the Ghana Revenue Authority and ATF’s Charlotte and Louisville Field Divisions for this investigation, which has kept firearms off the streets — preventing them from being used in any number of killings and other crimes — and ended this international firearm trafficking scheme.”
The Ghana Revenue AuthorityAccording to court records and evidence presented at trial, between June 28 and July 2, 2021, Dartey purchased seven firearms in the Fort Liberty area and tasked a U.S. Army Staff Sergeant at Fort Campbell, Kentucky, to purchase three firearms there and send them to Dartey in North Carolina. Dartey then hid all the firearms, including multiple handguns, an AR15, 50-round magazines, suppressors, and a combat shotgun inside blue barrels underneath rice and household goods and smuggled the barrels out of the Port of Baltimore, Maryland, on a container ship to the Port of Tema in Ghana. The Ghana Revenue Authority recovered the firearms and reported the seizure to the DEA attaché in Ghana and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division. At the same time, Dartey was a witness in the trial of U.S. v. Agyapong. A case that involved a 16-defendant marriage fraud scheme between soldiers on Fort Liberty and foreign nationals from Ghana that Dartey had tipped off officials to. In preparation for the trial, Dartey lied to federal law enforcement about his sexual relationship with a defense witness and lied on the stand and under oath about the relationship.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the verdict. The ATF, Army Criminal Investigation Division and the U.S. Department of Commerce’s Office of Export Enforcement investigated the case. Assistant U.S. Attorney Gabriel J. Diaz prosecuted it with technical assistance from David Ryan, DOJ Counterintelligence and Export Control Section.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-cr-00165-M-RJ-1.
Jury Finds Sioux City Man Guilty of Kidnapping and Possessing Ammunition as a Felon and Drug UserRead the Press Release
A recidivist felon was convicted by a jury on April 26, 2024, after a 5-day trial in federal court in Sioux City.
Bobby Rhoden, age 49, from Sioux City, Iowa, was convicted of one count of kidnapping and one count of possession of ammunition by a felon and drug user.
Evidence at trial showed that Rhoden used threats to get his victim, a former girlfriend, into his car to help him recover a phone she had taken. Over the next 36 hours, he brutalized her, and drove her to at least two locations in an effort to find his phone. The victim escaped Rhoden by running away from him to a neighbor’s house. As she ran, Rhoden fired his gun at or near her. A subsequent investigation of the kidnapping revealed live ammunition and a spent casing in the garage where Rhoden lived, and one of the locations where he held his victim.
Rhoden was previously convicted of two counts of forgery in Scott County, Iowa, possession with intent to deliver a controlled substance in Scott County, Iowa and conspiracy to distribute 50 grams or more of methamphetamine in the United States District Court for the Northern District of Iowa.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Rhoden remains in custody of the United States Marshal pending sentencing. Rhoden faces a possible maximum sentence of life imprisonment, a $250,000 fine, and 5 years of supervised release following any imprisonment.
The case is being investigated by the Sioux City, Iowa Police Department, ATF and is prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-04073.
Follow us on Twitter @USAO_NDIA.
Joint Statement on Fatal Officer-Involved Incident in the Grand Rapids AreaRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney for the Western District of Michigan Mark Totten, the Justice Department’s Civil Rights Division, and the FBI Field Office Detroit today issued the following statement concerning the fatal officer-involved incident that led to the death of Samuel Sterling in Kentwood, Michigan on Wednesday, April 17, 2024.
“The U.S. Attorney’s Office for the Western District of Michigan, the Justice Department’s Civil Rights Division, and the FBI Field Office Detroit are monitoring the ongoing state investigation into the circumstances that led to the tragic death of Samuel Sterling. We will continue to coordinate with our state and local law enforcement partners. If in the course of the state investigation, evidence reveals a potential violation of federal criminal statutes, we will take appropriate action.”
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