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31 May 2024
Philadelphia Man Sentenced to 10 Years for Illegally Possessing a Firearm; Gun was Used in Violent Assault and Armed RobberyRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Kelvin Canales, 29, of Philadelphia, Pennsylvania, was sentenced by United States District Court Judge Karen S. Marston to 120 months’ imprisonment, three years of supervised release, and a $100 special assessment for possession of a firearm by a felon, stemming from an incident in which he violently assaulted a victim before disposing of the weapon.
On April 21, 2021, Canales robbed and assaulted a victim of his cell phone on a sidewalk in North Philadelphia. After the defendant returned to his car, he reapproached the victim and shot the victim multiple times in the back. Video footage shows Canales then fleeing the area. Approximately an hour later, the defendant crashed his car in a single-car accident. When paramedics arrived and attempted to speak with the defendant, he allegedly fled the accident scene, walked behind a row of houses, and hid a loaded firearm in a trash can.
Canales pleaded guilty to the felon in possession charge on November 29, 2023.
"Kelvin Canales' possession of a firearm as a repeat offender with a history of violent crime was a threat to the larger community," said U.S. Attorney Romero. "Today's sentencing of Canales for possession of a firearm keeps a dangerous man off the streets. It reinforces our commitment, in cooperation with our law enforcement partners, to keep Philadelphia safe and fight violent crime."
“This case is another example of ATF Philadelphia Field Division’s long history of partnership with the Philadelphia Police Department,” said Eric DeGree, Special Agent in Charge of the ATF Philadelphia Field Division. “Violent criminals who attack randomly like Kelvin Canales did will be prosecuted vigorously to ensure justice for the victims and to make our communities safer.”
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, and prosecuted by Assistant United States Attorney Robert E. Eckert.
Pharmacy Owner Sentenced for Paying Illegal Kickbacks and Engaging in a Money Laundering ConspiracyRead the Press Release
A Texas pharmacy owner was sentenced today to four years and four months in prison and ordered to pay over $59 million in restitution for paying illegal kickbacks and engaging in a money laundering conspiracy.
According to court documents and evidence presented at trial, Richard Hall, 53, of Fort Worth, worked with others to create and market expensive compounded medications, which are intended to be custom-tailored to individual patient needs. Hall paid marketers to recruit area doctors to write prescriptions for these expensive compounded medications, including by creating so-called “investment opportunities” so that doctors who wrote prescriptions to the pharmacy could profit from the pharmacy operations. Hall paid illegal kickbacks to these marketers and engaged in a conspiracy to launder the unlawful proceeds.
A federal jury in the Northern District of Texas convicted Hall in July 2023 of four counts of paying and receiving unlawful kickbacks and one count of conspiring to launder money.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS); Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office; Special Agent in Charge Chad B. Yarbrough of the FBI Dallas Regional Office; Special Agent in Charge Casey Howard of the Department of Labor Office of Inspector General (DOL-OIG) Central Regional Office; and Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement.
The DCIS, HHS-OIG, FBI, DOL-OIG, and VA-OIG investigated the case.
Assistant Chiefs Kate Payerle and Brynn Schiess and Trial Attorneys Lee Michael Hirsch and Jacqueline DerOvanesian of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Ozark Woman Pleads Guilty to Selling Counterfeit Luis Vuitton Bracelets OnlineRead the Press Release
SPRINGFIELD, Mo. – An Ozark, Mo., woman pleaded guilty in federal court today to selling counterfeit Louis Vuitton bracelets and other items online.
Carissa L. Bedford, 46, waived her right to a grand jury and pleaded guilty before U.S. Chief Magistrate Judge Willie J. Epps, Jr., to a federal information that charges her with trafficking in counterfeit goods.
Bedford operated JOVEE, LLC, an online wholesale business that sold to boutique stores and which operated out of Bedford’s residence.
By pleading guilty today, Bedford admitted she sold various counterfeit Louis Vuitton bracelets, hair ties, and other products through JOVEE from April to December 2022. The counterfeit consumer goods and apparel were typically manufactured in Hong Kong and China and shipped to the United States for distribution. Numerous shipments were delivered from Hong Kong or China to Bedford and another individual who operated JOVEE, who is not identified in court documents, from May 4 to Nov. 14, 2022.
Bedford specifically admitted to ordering 200 Louis Vuitton-branded, counterfeit bracelets from Hong Kong in April 2022. She also admitted to selling three Louis Vuitton-branded, counterfeit hair ties to an individual working in an undercover capacity in association with Immigration and Customs Enforcement on May 26, 2022. Bedford received $70,770 in criminal proceeds from her illegal actions.
Under federal statutes, Bedford is subject to a sentence of up to 10 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 Casey Clark. It was investigated by Homeland Security Investigations.
Orlando Jury Convicts Deerfield Beach Man for Bank Robbery and Brandishing Firearm During A Violent CrimeRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Johnson Saint-Louis (39, Deerfield) guilty of bank robbery using a dangerous weapon and using a firearm during a crime of violence. Saint-Louis faces up to 25 years in prison for the armed bank robbery, followed by a mandatory consecutive sentence of between 7 years, up to life, imprisonment for brandishing a firearm during the offense. His sentencing hearing is scheduled for September 10, 2024. Saint-Louis was indicted on December 14, 2022.
According to testimony and evidence presented at trial, Saint-Louis was a former ATM technician who traveled around the southeast tampering with ATMs serviced by his former employer. On February 16, 2021, Saint-Louis robbed an ATM technician who was sent out to fix an ATM malfunction caused by Saint-Louis at a bank in Longwood. Saint-Louis was previously convicted of a similar robbery in Tallahassee that took place in September 2021. In addition, during the trial, the government introduced evidence of similar robberies committed by Saint-Louis in Boca Raton in November 2019, and in Raleigh, North Carolina in August 2021.
As part of the FBI’s investigation into the bank robberies, Saint-Louis was surveilled by deputies from the Seminole County Sheriff’s Office on November 4, 2021, who observed Saint-Louis traveling to various bank locations in Seminole County. Deputies eventually stopped Saint-Louis, and during that traffic stop, they observed that Saint-Louis had a firearm inside his car with black tape covering its serial numbers, as well as several pieces of paper listing the branch locations in Jacksonville. The listed bank branches were annotated with whether the ATM at each location was manufactured by Saint-Louis’s former employer or by another company, as well as notes like “too open,” “not enough exit route,” and “two man job.”
This case was investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the Tallahassee Police Department. It is being prosecuted by Assistant United States Attorneys Rachel S. Lyons and Chauncey A. Bratt.
Oklahoma Attorney and Landman Cousin to Serve More Than Six Years in Federal Prison Collectively for Scheme to Defraud Oklahoma Oil CompanyRead the Press Release
OKLAHOMA CITY – BLAINE DYER (Blaine), 42, of Oklahoma City, and JAMES DYER (Jimmy), 39, of Edmond, have been sentenced to serve 78 months in federal prison collectively for conspiring to commit honest services wire fraud, announced U.S. Attorney Robert J. Troester.
On December 19, 2022, a federal grand jury returned an eleven-count Superseding Indictment against Blaine and Jimmy, charging them with one count of conspiracy to commit honest services wire fraud and six counts of honest services wire fraud, and charging Blaine with three counts of making a false statement on a promissory note. The Superseding Indictment alleged that Blaine, an attorney who specialized in oil and gas title opinions, and his cousin, Jimmy, who worked as a landman, conspired together to commit wire fraud against Continental Resources (CLR), an oil and gas exploration company based in Oklahoma City. In November 2013, Blaine and Jimmy received CLR’s confidential drilling and leasing plans from an employee of the company. Public record reflects that with knowledge reaped through the illegally obtained CLR plans, Jimmy sought out and negotiated with landowners across Oklahoma, and purchased leases that CLR intended to acquire. To avoid detection, Blaine, Jimmy, and others, formed several shell companies to facilitate these transactions.
The Superseding Indictment further alleged that in 2014, Blaine, Jimmy, and others, sold some of the leases purchased using CLR’s information back to CLR. As part of the agreement, CLR continued to make royalty payments on the leases to the defendants and others through the conspirators’ shell companies.
On February 17, 2023, Blaine pleaded guilty to a one-count Superseding Information, charging him with conspiracy to commit honest services wire fraud. As part of his plea, Blaine admitted to participating in the conspiracy to purchase leases using CLR’s stolen information, then selling those leases back to CLR, and accepting royalties on the leases through 2020. Jimmy pleaded guilty to conspiracy to commit honest services wire fraud on February 16, 2023.
At the sentencing hearings on May 30, 2024, U.S. District Judge Jodi W. Dishman sentenced Blaine to serve 60 months in prison, to be followed by two years of supervised release, and Jimmy to serve 18 months in federal prison, to be followed by one year of supervised release. The Court also ordered the defendants to pay $2,316,185.43 in restitution to CLR, and ordered Blaine and Jimmy to forfeit $1,661,263.42 and $230,761.74, respectively, to the United States. The defendants were ordered to self-surrender to the Bureau of Prisons to begin serving their sentences, Blaine within 30 days, and Jimmy within 60 days.
“The defendants’ greed resulted in an elaborate scheme to exploit insider information and defraud Continental simply to enrich themselves,” said U.S. Attorney Troester. “The significant sentences imposed by the Court should serve as a strong deterrent to those who seek personal gain and profit by defrauding Oklahoma businesses. I commend the investigation by the FBI and the prosecution by Assistant U.S. Attorneys Julia Barry and Brandon Hale in unraveling this scheme and holding these defendants accountable.”
This case is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Julia E. Barry and Brandon Hale prosecuted the case.
Reference is made to public filings for additional information.
Norway Man Sentenced to 2 Years for PPP Loan FraudRead the Press Release
PORTLAND, Maine: A Norway man was sentenced today in U.S. District Court in Portland for filing fraudulent applications for loans from the Paycheck Protection Program (PPP).
U.S. District Judge Nancy Torresen sentenced Merton Weed Jr., 52, to 24 months imprisonment followed by three years of supervised release. He was also ordered to pay restitution in the amount of $253,646. Weed pleaded guilty on October 23, 2023.
According to court records, between May 2020 and January 2021, Weed filed eight fraudulent PPP loan applications with four different lenders and received $243,745 in PPP funds. The applications listed false average monthly payrolls and numbers of employees for phony businesses that did not exist. Weed supported the applications with falsified bank records.
The FBI investigated the case.
“Motivated by greed, Merton Weed took advantage of a program intended to help small businesses survive economic uncertainty during the COVID-19 pandemic,” said U.S. Attorney Darcie N. McElwee. “Mr. Weed has a lengthy history of enriching himself through fraud, so it is perhaps not surprising that he made not one but eight attempts to take advantage of a time of international turmoil. The Department of Justice and my office will continue to bring to justice those who, like Mr. Weed, sought to capitalize on an unprecedented crisis to line their own pockets.”
Paycheck Protection Program (PPP): The PPP was a COVID-19 pandemic relief program administered by the Small Business Administration (SBA) that provided forgivable loans to small businesses for job retention and certain other expenses. The PPP permitted participating third-party lenders to approve and disburse SBA-backed PPP loans to cover payroll, fixed debts, utilities, rent/mortgage, accounts payable and other bills incurred by qualifying businesses during, and resulting from, the COVID-19 pandemic. PPP loans were fully guaranteed by the SBA.
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New Orleans Man Sentenced for Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – BRISON SHELTON (“SHELTON”), age 50, a resident of New Orleans, was sentenced on May 29, 2024 after previously pleading guilty to conspiracy to distribute and possess with intent to distribute five hundred grams or more of cocaine hydrochloride, and possession with intent to distribute five hundred grams or more of cocaine hydrochloride, violations of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846. Specifically, SHELTON was sentenced to twelve months and one day of imprisonment, three years of supervised release, and a $200 mandatory special assessment fee.
According to court documents, SHELTON, and other co-conspirators, are responsible for the distribution of multi-kilogram quantities of cocaine, fentanyl, and heroin within the Eastern District of Louisiana.
During the investigation, the Drug Enforcement Administration, seized over forty (71) kilograms of cocaine hydrochloride, twelve (12) kilograms of fentanyl, four and a half (4.5) kilograms of heroin, and nearly $1,200,000.00 in U.S. Currency and other seized property.
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.
This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office, and was assisted by the Federal Bureau of Investigation, the United States Border Patrol, the Gretna Major Crimes Task Force, the Kenner Police Department, the Jefferson Parish Sheriff’s Office, the St. John’s Parish Sheriff’s Office, the Orleans Parish Sheriff’s Office, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
New Orleans Man Indicted for Federal Gun ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – WARDELL FLETCHER (“FLETCHER”), age 48, a resident of New Orleans, was indicted on May 30, 2024, on three counts of being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8), announced U.S. Attorney Duane A. Evans.
As to each count, if convicted, FLETCHER faces up to 15 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release and a $100 mandatory special assessment fee.
According to court documents, on December 27, 2023, FLETCHER, knowing he was a convicted felon, possessed a Taurus Model 608, .357 Magnum caliber revolver, and ammunition. On January 25, 2024, FLETCHER possessed a Intratec Model TEC-9, 9-millimeter pistol, bearing a partially obliterated serial number as well as the above-referenced Taurus Model 608, .357 Magnum caliber revolver and ammunition.
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 reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crime Unit.
Nevada felon sentenced for gun possessionRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Justin Hall, 43, of Wellington, Nevada, who was convicted of being a prohibited person in possession of firearms, was sentenced to time served (24 months) by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Garrett Fitzsimmons, who handled the case, stated that in May 2021, Hall was arrested in Gardnerville, Nevada, for possessing a firearm. Subsequently, in May 2022, the Federal Bureau of Investigation in Buffalo, received information from the Nevada FBI that Hall was traveling around the Buffalo area. On May 22, 2022, law enforcement conducted a motor vehicle stop of Hall’s vehicle on Interstate 90 near the Transit Road exit. A search of Hall’s vehicle recovered three firearms, as well as over 1,200 rounds of various caliber ammunition and five magazines. In March 2017, Hall was convicted a misdemeanor crime of Domestic Battery in Nevada, and is legally prohibited from possessing firearms.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia. Additional assistance was provided by the Douglas County, Nevada Sheriff’s Office and the Nevada FBI.
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Nashua Man Pleads Guilty to Possessing Child Sexual Abuse MaterialRead the Press Release
CONCORD – A Nashua man pleaded guilty today in federal court to possessing child sexual abuse material (CSAM), U.S. Attorney Jane E. Young announces.
Dwayne Frechette, 60, pleaded guilty to possessing and accessing with intent to view child pornography. U.S. District Court Joseph Laplante scheduled sentencing for September 23, 2024.
Frechette was identified during an undercover investigation involving a peer-to-peer network used to exchange CSAM. During the investigation, agents identified an IP address in Nashua that was using the peer-to-peer network to make images of CSAM available for others to download. The target IP address geolocated to a restaurant in Nashua, where it was later determined that Frechette was a delivery driver. A search warrant for the restaurant resulted in the seizure of Frechette’s cell phone, which was found to contain hundreds of cached images of CSAM.
The charging statute provides a sentence of no greater than 20 years in prison, at least 5 years of supervised release, a fine of $250,000, and mandatory restitution. 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.
Homeland Security Investigations and the Nashua Police Department led the investigation. The Homeland Security Investigations and the Nashua Police Department provided valuable assistance. Assistant U.S. Attorney Kasey Weiland is prosecuting 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.
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Miami resident sentenced to prison for shooting at a U.S. Postal Service Mail CarrierRead the Press Release
MIAMI – On May 29, Charlie Holley, 43, of Florida City, Florida, was sentenced to 192 months in prison by U.S. District Judge Rodolfo Ruiz II, after having been convicted by a federal jury of forcibly assaulting a federal employee, brandishing and discharging a firearm in furtherance of a violent crime, possession of a firearm by a convicted felon, and possession of ammunition by a convicted felon.
According to evidence introduced at trial, in June 2021, the victim, a mail carrier with the U.S. Postal Service (USPS), was delivering the mail on her usual route in Florida City when she arrived at Holley’s townhouse to deliver a package addressed to a name used by Holley. The victim got out of the mail truck and heard Holley speaking to her from a second-story window. The victim told Holley that she had a package for him. In response, Holley demanded that the victim open the package. The victim advised Holley that she was not permitted to open the package, which Holley responded to by shouting, “Do you think I’m f----- playing with you?,” and then lifting a 45 caliber, semi-automatic rifle and pointing it at the victim. The victim fled to her postal truck and heard a bullet hit her truck as she drove away.
In response to her 911 call, officers responded to Holley’s residence, where he barricaded himself inside. After a near two-hour standoff, Holley surrendered. The black rifle was found in a bedroom with several magazines loaded with ammunition, and a bullet fragment was recovered from above the gas tank of the postal truck.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS), Miami Division, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD), and Chief Pedro W. Taylor of the Florida City Police Department made the announcement.
USPIS, FBI Miami, ATF, MDPD and the Florida City Police Department investigated the case. Miami-Dade Schools Police Department and Homestead Police Department provided valuable assistance. Assistant U.S. Attorneys Lindsey Maultasch and Zachary A. Keller prosecuted it.
Anyone with information about a crime having been committed against a postal employee, to include an assault, robbery or attempted robbery is encouraged to call 877-876-2455 or submit a tip to the U.S. Postal Inspection Service at www.uspis.gov/report. The Postal Inspection Service is authorized to issue monetary rewards for the forcible assault, robbery or attempted robbery of any custodian of any mail, money, or other property of the United States under the control and jurisdiction of the Postal Service.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20373.
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Mexican National Sentenced for Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – A Mexican national has been sentenced in federal court after more than 88 pounds of methamphetamine was found in the trunk of a car in which he was traveling on Interstate 70.
Juan Emilio Gomez-Padilla, 32, who was residing in Chicago, Illinois, was sentenced by U.S. Chief District Judge Beth Phillips on Thursday, May 30, to 11 years and six months in federal prison without parole. The court also ordered Gomez-Padilla to forfeit to the government $5,505 that was seized by law enforcement.
On Jan. 5, 2024, Gomez-Padilla pleaded guilty to conspiracy to distribute methamphetamine. Gomez-Padilla admitted that he was a passenger in a car that was carrying more than 88 pounds of methamphetamine in the trunk when it was stopped by a Missouri State Highway Patrol trooper in Saline County, Mo., on April 5, 2021.
Gomez-Padilla is the third and final defendant to be sentenced in this case. Co-defendants Jose Alfredo Renteria-Rojas, 35, and his brother, Gustavo Renteria-Rojas, 40, who are both citizens of Mexico residing in Chicago, have each been sentenced to 11 years and six months in federal prison without parole. They each pleaded guilty to their roles in the drug-trafficking conspiracy and to illegally possessing a firearm.
All three of the defendants were in a white 2011 Volkswagen Jetta driven by Gustavo Renteria-Rojas on eastbound Interstate 70 that was stopped by a state trooper in Saline County. As Jose Renteria-Rojas was getting out of the vehicle, the state trooper saw a loaded Smith & Wesson .380-caliber handgun that contained a magazine as well as an extra magazine in the door pocket. The trooper found four white cardboard boxes in the trunk, which contained 36 packages of methamphetamine that weighed a total of 88.7 pounds. The trooper also found $5,505 in cash in the car.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Drug Enforcement Administration and the Missouri State Highway Patrol.
Massachusetts Surgeon to Pay $200,000 to Resolve Allegations of Soliciting and Receiving Illegal KickbacksRead the Press Release
BOSTON – Massachusetts doctor has agreed to pay $200,000 to resolve allegations that he violated the Anti-Kickback Statute and the False Claims Act by soliciting and receiving free products from DePuy Synthes, Inc. and DePuy Synthes Sales, Inc. (collectively “DePuy”), in return for ordering DePuy products for use in his procedures. Doctor used these free products in surgeries he performed overseas in countries including the Kingdom of Saudi Arabia, Lebanon, and Qatar.
In January 2023, the U.S. Attorney’s Office for the District of Massachusetts announced that DePuy had agreed to pay approximately $9.75 million to resolve allegations related to its role in this conduct. DePuy manufactures and distributes medical devices, including spinal implants, and has headquarters in Raynham, Mass.
According to the settlement agreement, Dr. Tannoury admits, acknowledges, and accepts responsibility for the facts underlying the government’s allegations. From at least July 2016 through February 2018, Dr. Tannoury received products from DePuy for use in overseas surgeries, including cages, rods, screws, plates, and modular access and retraction systems. He performed at least five surgeries using these products in countries including the Kingdom of Saudi Arabia, Lebanon and Qatar. Dr. Tannoury never paid DePuy for these products that he used overseas and continued to use DePuy products in surgeries in Boston, including for Medicare and Medicaid beneficiaries.
The Anti-Kickback Statute (“AKS”) prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs. The 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 United States contends that Dr. Tannoury knowingly and willfully solicited and received free DePuy products, worth over $100,000, in return for Dr. Tannoury’s ordering, arranging for, and recommending the purchase of DePuy’s products in spine surgeries he performed on Medicare and Medicaid patients in Massachusetts in violation of the AKS.
“Physicians violate the law when they solicit and receive free goods from medical device manufacturers. Unlawful kickbacks like these can corrupt medical judgment and create an uneven playing field for companies that play by the rules,” said Acting United States Attorney Joshua S. Levy. “Today’s settlement reflects our office’s commitment to holding individuals who receive kickbacks accountable under the False Claims Act.”
“Improper financial arrangements can compromise medical judgment and adversely influence the medical decision-making process,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “These types of arrangements have no place in our health care system, and we will continue working together with our federal and state law enforcement partners to pursue such allegations.”
“Today’s settlement resolves allegations that Dr. Tony Tannoury solicited and received illegal kickbacks, and in doing so, used his patients as pawns,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division. “Health care fraud has serious costs, and serious consequences, and the FBI will continue to make investigations like this a priority as we work to deter this behavior.”
Acting U.S. Attorney Levy, HHS-OIG SAC Coviello, and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Jessica J. Weber and Andrew A. Caffrey, III of the Affirmative Civil Enforcement Unit handled this matter. The Commonwealth of Massachusetts is represented by Assistant Attorney General Kevin Lownds.
Maryland Felon Convicted After Four Day Jury Trial of Possessing A Firearm and AmmunitionRead the Press Release
Greenbelt, Maryland – After a four-day trial, a federal jury returned a guilty verdict today convicting John Robert Williams III, age 42, of Upper Marlboro, Maryland on the federal charge of possessing a firearm and ammunition after having been convicted of a crime punishable by a term of imprisonment exceeding one year.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron, Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief of Police Malik Aziz of the Prince George’s County Police Department.
According to the evidence at trial, the defendant possessed a firearm and ammunition, specifically, a Kel-Tec P-11 semi-automatic pistol loaded with one round of 9mm Luger caliber ammunition – after having been convicted of a crime punishable by a term of imprisonment exceeding one year.
Specifically, on the evening of September 10, 2022, members of the Prince George’s County Police Department (“PGPD”) were conducting proactive patrols in a specific area of Oxon Hill, Maryland in response to recent gun and drug-related crime in this area. An officer noticed a white Chevy Trailblazer stopped next to a business in this area and saw what he believed to be an interrupted drug transaction as he drove by.
After additional officers returned to do an investigative stop, law enforcement saw what appeared to be a firearm in the back right pocket of Mr. Williams’ pants. Mr. Williams was placed into handcuffs for the officers’ safety, and law enforcement pulled from Mr. Williams’ back right pocket a Kel-Tec P-11 semi-automatic pistol loaded with one round of 9mm Luger caliber ammunition.
Trial testimony further showed that the officers also recovered from Mr. Williams the keys to the Trailblazer and approximately $2,458 in cash. A subsequent search of the Trailblazer found a number of bags of marijuana, as well as two more firearms: a loaded Smith & Wesson .38 Special revolver, and a loaded Ruger Model P89 9mm pistol.
At sentencing, the defendant faces a maximum sentence of 15 years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Chuang has scheduled sentencing for September 11, 2024 at 2:30 p.m.
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.
United States Attorney Erek L. Barron commended the ATF and PGPD for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joshua Rosenthal and William Moomau, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Manchester Man Charged with Child Exploitation Offenses Related to Sexual Abuse MinorRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Michael J. Krol, Special Agent in Charge of Homeland Security Investigations (HSI), and Manchester Police Chief William Darby today announced that HERNAN AYALA, 32, of Manchester, has been charged by federal criminal complaint with child exploitation offenses.
Ayala appeared yesterday in Hartford federal court. He has been detained since his arrest on related state charges on March 9, 2024.
As alleged in court documents, in March 2024, the Manchester Police Department received a complaint that a minor female had been sexually abused by Ayala. The minor female reported that Ayala had engaged in sexual conduct with her for more than eight years, and that Ayala had recorded his sexual abuse of her on his cellphone. On that date, investigators searched Ayala’s residence and seized several electronic devices, including his iPhone. Analysis of the seized phone revealed numerous videos and images of Ayala engaging in sexual conduct with the minor victim.
The complaint charges Ayala with sexual exploitation of children, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and with possession of child pornography, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI), the Manchester Police Department, the Glastonbury Police Department, and the Connecticut Center for Digital Investigations. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
U.S. Attorney Avery thanked the State’s Attorney’s Offices for the Judicial Districts of Hartford and Tolland for their cooperation in the investigation and prosecution of this case.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Lawrence Man Sentenced to More Than Three and a Half Years in Prison for Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence was sentenced today in federal court in Boston for his role in a fentanyl trafficking conspiracy.
Fraily Rodriguez Morillo, 26, was sentenced by U.S. District Chief Judge F. Dennis Saylor, IV to 46 months in prison to be followed by two years of supervised release. In February 2024, Morillo pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue; three counts of distribution and possession with intent to distribute 40 grams or more of fentanyl; and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue.
Morillo was indicted by a federal grand jury along with Melvin Antonio Perez Medina and Manuel Fredis Guerrero Guzman in November 2022.
Between March 2022 and August 2022, Morillo, Perez Medina and Guzman conspired to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue, in Lawrence, Woburn, Wilmington and Andover.
In March 2022, Morillo and Guzman met with a cooperating witness to negotiate future drug deals, including the price that Guzman would charge for fentanyl and for cocaine. On two separate occasions in April 2022 Morillo distributed 50 grams of fentanyl to a cooperating witness in Lawrence. In July 2022, Morillo worked with Perez Medina to distribute nearly 130 grams of fentanyl on one occasion, and over 560 grams of a mixture of fentanyl and p-fluorofentanyl (a fentanyl analogue) on another occasion, to a cooperating witness and Woburn. In total, Morillo is responsible for the distribution of approximately 230 grams of fentanyl and 560 grams of a mixture of fentanyl and p-fluorofentanyl (a fentanyl analogue).
In August 2022, Perez Medina was arrested and found in possession of nearly two kilograms of a mixture containing fentanyl and a fentanyl analogue. The nearly two kilograms were found secreted inside of a cereal box.
On Jan. 18, 2024, Perez Medina was sentenced to 64 months in prison and three years of supervised release after previously pleasing guilty to his role in the conspiracy. In March 2024, Guzman pleaded guilty and on May 30, 2024 Guzman was sentenced to 21 months in prison to be followed by two years of supervised release
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Massachusetts Department of Correction; the Norfolk County Sheriff’s Office; and the Watertown, Reading, Peabody, Hudson, Concord and Waltham Police Departments provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Lancaster Man Sentenced for Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky. – A Lancaster, Ky., man, Brett M. Martin, 33, was sentenced on Friday, by Chief U.S. District Judge Danny Reeves, to 180 months in prison, for possession with intent to distribute 50 grams or more of methamphetamine.
According to his plea agreement, on October 12, 2022, law enforcement conducted a search warrant at Martin’s residence, locating six firearms and 93.53 grams of methamphetamine. Additionally, officers located $36,685.99 in cash at Martin’s grandmother’s residence. Martin admitted to drug trafficking and to possessing the methamphetamine with the intent to distribute it.
Under federal law, Martin must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge of the DEA Louisville Field Division; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; Phillip J. Burnett, Commissioner of the Kentucky State Police (KSP); Sheriff Willie Skeens, Garrard County Sheriff’s Office; and Sheriff Shawn Hines, Lincoln County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the DEA, ATF, KSP, Garrard County Sheriff’s Office, and Lincoln County Sheriff’s Office. Assistant U.S. Attorney Paco Villalobos prosecuted the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Lake City Resident Sentenced to 15 Years in Prison for Sexual Exploitation of MinorsRead the Press Release
ERIE, Pa. - A former resident of Lake City, Pennsylvania, has been sentenced in federal court to 15 years in prison, to be followed by 10 years of supervised release, and ordered to make restitution in the amount of $4,000 and to pay a $5,100 special assessment on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on William Joseph Leuschen, 39.
According to information presented to the Court, from in and around May 2020 to in and around February 2022, Leuschen received and possessed images depicting prepubescent minors, some as young as infants and toddlers, engaging in sexually explicit conduct.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, Erie County Detectives Bureau, and Erie County Adult Probation and Parole Department for the investigation leading to the successful prosecution of Leuschen.
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 (CEOS), 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.
Justice Department Expands Efforts to Dismantle Human Smuggling Operations and Support Immigration ProsecutionsRead the Press Release
Ahead of the third anniversary of the establishment of Joint Task Force Alpha (JTFA), the Justice Department today announced additional efforts to dismantle human smuggling operations and increase accountability for those who violate our immigration laws. Launched in June 2021 by Attorney General Merrick B. Garland and Secretary of Homeland Security Alejandro N. Mayorkas, JTFA represents a partnership between the Justice Department and the Department of Homeland Security (DHS) with a mandate to disrupt and dismantle human smuggling and trafficking organizations operating in and through Guatemala, Honduras, El Salvador, and Mexico. To build on the success of JTFA, including an increase of more than 25% in defendants charged with alien smuggling since 2020, the Justice Department is realigning resources, providing financial incentives, and proposing increased penalties for human smuggling offenses.
The Justice Department also is coordinating with border U.S. Attorneys and their districts, as well as with the Department of Homeland Security (DHS) and other law enforcement agencies, to evaluate current needs and resource allocations, and to identify available and potentially new opportunities to address immigration issues.
Prioritizing Prosecutions Involving Smugglers
The Justice Department will continue to prioritize the prosecution of cases involving human smuggling, working through JTFA — which is led by the Criminal Division’s Human Rights and Special Prosecutions Section — and the efforts of individual U.S. Attorneys’ Offices and their law enforcement partners.
Felony prosecutions for smuggling have been on an upward trajectory, increasing by 27% since 2020. These cases are significant. -They include human smuggling of both vulnerable populations and individuals who pose security concerns, as well as unlawful transportation of assets and contraband, high-speed flight from law enforcement and possession of firearms by smuggling defendants. Focusing on felony smuggling prosecutions creates a deterrent effect, not only impacting the defendant but creating a ripple effect that discourages future smuggling. Additional smuggling prosecutions will target known routes utilized and controlled by cartels and other organized criminal groups.
JTFA will continue to focus on the highest-level human smugglers — the worst of the worst. Since its creation in June 2021, JTFA has achieved significant tangible results, including:
- Over 300 arrests, including of leaders, organizers, and significant facilitators;
- Over 240 U.S. convictions;
- Over 170 U.S. defendants sentenced, with significant sentences of 30 years or more in prison;
- Substantial seizures and forfeiture of assets and contraband including millions of dollars in cash, real property, vehicles, firearms and ammunition, and drugs; and
- Multiple indictments and successful extradition requests against foreign leadership targets located in Guatemala, Mexico, and Honduras.
Just this week, the leader of a migrant smuggling organization was sentenced to 10 years in prison for her role in smuggling over 100 migrants from Honduras to the United States for profit.
Using Financial Rewards to Dismantle the Leadership of Transnational Human Smuggling Networks
The Justice Department and Department of State are launching an Anti-Smuggling Rewards (ASR) Initiative designed to dismantle the leadership of human smuggling organizations that bring migrants through Central America and across the southern U.S. border. The ASR Initiative will use existing statutory authority — through the State Department’s Transnational Organized Crime Rewards Program — to offer financial rewards for information leading to the identification, location, arrest, or conviction of those most responsible for significant human smuggling activities in the region.
The ASR Initiative will target categories of high-priority human smuggling targets, such as:
- Leaders of certain identified cartels and other transnational organizations responsible for human smuggling through the Western Hemisphere and across the southern U.S. border;
- Leaders and organizers of human smuggling networks responsible for certain identified mass casualty events; and
- Certain identified high-priority international fugitives wanted for human smuggling offenses.
In addition, the Justice Department will offer the possibility of additional rewards to tipsters whose information results in the forfeiture of criminal proceeds of human smuggling activities. The Department of the Treasury, in coordination with the ASR Initiative, will continue to employ its authorities to disrupt high priority human smuggling operations.
Increasing Penalties for the Most Prolific and Dangerous Human Smugglers
Since at least 2016, the Justice Department and DHS have urged the U.S. Sentencing Commission to consider stiffening penalties for those who commit human smuggling offenses. The current sentencing guidelines fail to fully account for the severity or extent of defendants’ misconduct in human smuggling cases — resulting in perverse incentives and reduced ability for prosecutors to go after leaders of smuggling organizations. Despite renewed requests from the Justice Department and DHS as recently as last year the Commission has not significantly bolstered penalties for the most dangerous human smugglers.
Thus, the Justice Department and DHS are supporting prosecutors in their efforts to hold accountable individuals charged with dangerous human smuggling, and the Justice Department intends to seek new and increased penalties against human smugglers to properly account for the severity of their criminal conduct and the human misery that it causes. The proposal would make three important changes to U.S. Sentencing Guideline §2L1.1, which governs human smuggling offenses:
- Creating steeper penalty tiers based on the number of people smuggled by the defendant;
- Increasing penalties when the defendant’s conduct results in injury or death to more than one person; and
- Ensuring defendants are subject to sentencing enhancements for sexual assault and other types of prohibited sexual conduct committed during the smuggling offense, even if that conduct occurred outside U.S. jurisdiction.
Deploying Justice Department and DHS Resources for Targeted Enforcement Efforts
The Justice Department is partnering with DHS to direct additional prosecutors and support staff to increase federal immigration-related prosecutions in crucial border U.S. Attorneys’ Offices. This critical operational partnership is being done in spite of a fiscal year 2024 enacted budget that included the largest year-over-year funding decrease to U.S. Attorneys’ Offices in Justice Department history. Efforts include deploying additional DHS Special Assistant U.S. Attorneys to border U.S. Attorneys’ Offices, assigning support staff detailees to critical U.S. Attorneys’ Offices, seeking Justice Department attorneys to serve details in U.S. Attorneys’ Offices in border districts, and partnering with federal agencies to identify additional resources to target these crimes.
In addition to surging new resources to border districts, U.S. Attorneys’ Offices continue to deploy existing resources and strategies to target immigration crimes.
About Joint Task Force Alpha
The Criminal Division’s Human Rights and Special Prosecutions Section leads JTFA in partnership with the U.S. Attorneys’ Offices and with dedicated support from the Office of International Affairs; Office of Prosecutorial Development, Assistance, and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from the DHS, FBI, Drug Enforcement Administration, and other partners. JTFA coordinates closely with foreign law enforcement partners on cross-border investigations, arrests of foreign targets, and extraditions.
Jersey City Man Convicted of Possession with Intent to Distribute CocaineRead the Press Release
NEWARK, N.J. – A Jersey City man was convicted today on a charge of possession with intent to distribute cocaine, U.S. Attorney Philip R. Sellinger announced.
Jamil King, 32, of Jersey City, was convicted after a two-day trial before U.S. District Court Judge Esther Salas in Newark federal court. The jury deliberated two hours before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
King is a high-ranking member of the Jersey City neighborhood street gang known as Parkside. Law enforcement officials obtained a search warrant for King’s residence, and during the evening of July 8, 2022, officers executed that warrant. When the police arrived, King fled, but law enforcement recovered approximately 50 grams of cocaine from a pair of sweatpants inside the apartment. Those sweatpants contained the defendant’s DNA and matched the sweatshirt that the defendant was wearing that night.
The count on which King was convicted is punishable by a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 23, 2024.
U.S. Attorney Philip Sellinger credited the Jersey City Police Department, under the direction of Director James Shea, for the investigation leading to the conviction. He also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration’s New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations, the Jersey City Police Department, the Hudson County Prosecutor’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Desiree Grace, Chief of the Criminal Division, and Assistant U.S. Attorney Joseph Stern of the Office’s General Crimes Unit in Newark.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on May 28 was:
Jordan Charles Kirsch, 34, of Bozeman, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Kirsch faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Kirsch was detained pending further proceedings. The Missouri River Drug Task Force conducted the investigation. PACER case reference. 24-14.
Oscar Enrique Ruiz Rojas, 25, of Gallatin Gateway, on charges of alien in possession of a firearm. If convicted of the most serious crime, Rojas faces maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Rojas was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration conducted the investigation. PACER case reference. 24-17.
Cameron Lee Richard Carr, 34, of Kalispell, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of firearm. If convicted of the most serious crime, Carr faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charges and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the charge of possessing a firearm in furtherance of drug trafficking. Carr was detained pending further proceedings. The FBI, Blackfeet Law Enforcement Services and Glacier County Sheriff’s Office conducted the investigation. PACER case reference. 24-23.
Nicole Elice Anderson, 39, of Post Falls, Idaho, on charges of unlawfully obtaining controlled substances. If convicted of the most serious crime, Anderson faces a maximum of four years in prison, a $250,000 fine and one year of supervised release. Anderson was released pending further proceedings. The Drug Enforcement Administration conducted the investigation. PACER case reference. 24-24.
Jeri Angeline Phillips, 36, of Butte, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Phillips faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Phillips was detained pending further proceedings. The Drug Enforcement Administration, Montana Division of Criminal Investigation and Montana Highway Patrol conducted the investigation. PACER case reference. 24-16.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 31 was:
Darrien Christian Snow, 23, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Snow faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Snow was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Highway Patrol conducted the investigation. PACER case reference. 24-75.
Appearing on May 30 was:
Juan Ortiz, 47, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Ortiz faces a maximum of 15 years prison, a $250,000 fine and three years of supervised release. Ortiz was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation. PACER case reference. 24-42.
Appearing on May 28 was:
Richard Dale Wright, 46, of Big Fork, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Wright faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Wright was detained pending further proceedings. The Montana Highway Patrol, Golden Valley Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
PACER case reference. 23-127.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston for an initial appearance on a criminal complaint on May 28 was:
Melody Rose Bernard, 51, of Box Elder, and Ashley Jocelyn Cortez, 23, of California, on a criminal complaint charging conspiracy to possess with intent to distribute meth and fentanyl and possession with intent to distribute meth and fentanyl. If convicted of the most serious crime, Bernard and Cortez face a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Bernard and Cortez were detained pending further proceedings. The FBI, Montana Division of Criminal Investigation, Tri Agency Task Force and Fort Belknap Police Department conducted the investigation. PACER case reference. 24-46.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Idaho Falls Couple Sentenced for Distributing Fentanyl and Methamphetamine in Eastern IdahoRead the Press Release
POCATELLO – Richard Corey Fox, 54, and Angelina Larae Norton, 61, a couple living in Idaho Falls, were sentenced to over ten years combined for distributing fentanyl and methamphetamine in eastern Idaho, U.S. Attorney Josh Hurwit announced today.
According to court records, detectives with the BADGES Task Force initiated an investigation in the summer of 2022 in which they identified Fox and Norton as the source of supply for fentanyl, along with other controlled substances, for other individuals in the region. The Bonneville County Sheriff’s Office conducted a traffic stop on Fox’s vehicle on July 19, 2022. During the stop, law enforcement seized an ounce of methamphetamine and a large amount of U.S. currency. Shortly thereafter, a separate vehicle in which Norton was a passenger was stopped and three-quarters of a pound of methamphetamine was seized. Further investigation uncovered cell phone communications showing that Norton and Fox actively engaged in distributing fentanyl and methamphetamine and were in possession of firearms.
On May 28, 2024, Chief U.S. District Judge David C. Nye sentenced Fox to 92 months in federal prison to be followed by three years of supervised release. On December 22, 2023, Judge Nye sentenced Norton to 37 months, almost three years, in federal prison to be followed by three years of supervised release.
“This case exemplifies the strong partnerships between our office and law enforcement in rooting out drug distribution in Eastern Idaho,” said U.S. Attorney Hurwit. “We will spare no effort in removing dangerous drugs from our streets and holding dealers accountable.”
“We appreciate the hard work from all of the agencies that worked in conjunction on this investigation,” said Pocatello Police Chief Roger Schei. “This is a testimony of the power of relationships within law enforcement agencies and what can happen when we all work together towards one common goal.”
U.S. Attorney Hurwit commended the investigation by the Drug Enforcement Administration, the Idaho State Police, the Bannock County Sheriff’s Office, the Pocatello Police Department, and the Chubbuck Police Department, which participated as part of the HIDTA BADGES Task Force. The Bonneville County Sheriff’s Office also participated in the investigation. Assistant U.S. Attorney Blythe H. McLane prosecuted the case.
This case was investigated through the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program. HIDTA is an Office of National Drug Control Policy (ONDCP) sponsored counterdrug gran program that coordinates with and provides funding resources to multiagency drug enforcement initiates, including the BADGE Task Force.
The BADGES Task Force is a collaboration of federal, state, and local law enforcement agencies that focuses primarily on drug trafficking crimes in Bannock County and throughout the region.
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Henderson Man Sentenced to 23 Years in Federal Prison for Causing Two Overdose DeathsRead the Press Release
Owensboro, KY – Yesterday, a Henderson, Kentucky, man was sentenced to 23 years in federal prison for two counts of distributing fentanyl resulting in death.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Chief Sean L. McKinney of the Henderson Police Department, and Sheriff David Crafton of the Henderson County Sheriff’s Office made the announcement.
According to court documents, Elijah Lovell, 20, was sentenced to 23 years in prison, followed by 5 years of supervised release, for two counts of distributing fentanyl resulting in death. Between December 27, 2021, and January 31, 2022, Lovell distributed fentanyl that resulted in the death of another person, “J.H.” Additionally, on or about May 5, 2022, Lovell distributed fentanyl that resulted in the death of another person, “C.G.”
“Let this sentence serve notice to those who traffic drugs in the Western District that this office, together with our law enforcement partners, will aggressively investigate and prosecute individuals who cause the tragic loss of life through the distribution of their poison,” said U.S. Attorney Bennett. “I commend the Henderson Police Department and the Henderson County Sheriff’s Office for their excellent work and partnership during the investigation and prosecution of this case.”
There is no parole in the federal system.
The Henderson Police Department and Henderson County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Frank Dahl prosecuted the case.
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Fort Dodge Sex Offender Sent to Federal Prison for 13 Years for Possession of a FirearmRead the Press Release
A man who shot into a residence and threatened people was sentenced on May 28, 2024, to 13 years in federal prison. Archester Rodgers, age 42, from Fort Dodge, Iowa, received the prison term after a January 23, 2024, guilty plea to one count of possession of a firearm by a prohibited person.
Evidence in the case revealed that on September 20, 2022, in Fort Dodge, police officers responded to a call from a woman being threatened by Rodgers, who was outside her apartment with an assault rifle. During the call, the victim heard Rodgers fire the gun and other people began calling 911 to report hearing shots. Rodgers fled from police when they arrived, eventually crashing his car. In Rodgers’ crashed car, officers found spent shell casings which were determined to be fired from Rodgers’ assault rifle, which was later recovered by police. It was later determined that earlier the same night, Rodgers shot his assault rifle into another residence in Fort Dodge at least three times. Rodgers was also in violation of his duty to register as a sex offender. Rodgers has a lengthy criminal history, including convictions for: Rape, Sexual Battery, Domestic Assault—Bodily Harm (twice), Failure to Register as a Sex Offender (four times), Assault, Terroristic Threats, Criminal Sexual Conduct—Fifth Degree—Nonconsensual Sexual Contact, Domestic Assault—Commits Act to Cause Fear or Immediate Bodily Harm or Death, Possession of a Controlled Substance (twice), and Eluding (twice).
Rodgers was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 156 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Rodgers is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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.
The case was prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Fort Dodge Police Department and the United States Marshal Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3027.
Follow us on Twitter @USAO_NDIA.
Former Southern Pine Credit Union President Sentenced to Prison and Ordered to Pay Nearly $4.5 Million RestitutionRead the Press Release
VALDOSTA, Ga. – The former President of Southern Pine Credit Union in Valdosta was sentenced to serve four years in prison and pay back nearly $4.5 million in restitution after she admitted to a long-running multimillion-dollar bank loan and aggravated identity theft scheme.
Leah Lehman, 63, of Valdosta, was sentenced to serve 24 months imprisonment for aggravated identity theft and 48 months imprisonment for bank fraud, for a total of 72 months in prison, on May 30. In addition, Lehman was ordered to pay $4,491,253.97 in restitution to Southern Pine Credit Union. Lehman pleaded guilty to these charges on Oct. 26, 2023.
Co-defendant Teresa Paulo, of Valdosta, pleaded guilty to one count of bank fraud and one count of aggravated identity theft on Nov. 2, 2023. Paulo faces a maximum of 30 years in prison for bank fraud, and a mandatory two years in prison in addition to any other prison term imposed for aggravated identity theft, to be followed by a maximum of five years of supervised release and a $1,000,000 fine. Sentencing is scheduled for July 11.
U.S. District Judge W. Louis Sands is presiding over this case. The defendants are not eligible for parole.
“Lehman chose greed and deception, abusing her trusted leadership role to steal millions of dollars at this credit union over the course of many years,” said U.S. Attorney Peter D. Leary. “Our office, alongside our law enforcement partners, take financial crimes seriously, and we will work to hold fraudsters accountable.”
“This sentencing is the direct result of a diligent investigation by hardworking FBI employees and our partners at the Federal Deposit Insurance Corporation, Office of Inspector General,” said Rich Bilson, Senior Supervisory Resident Agent of FBI Atlanta’s Valdosta office. “Lehman’s greed driven scheme stole hundreds of thousands of dollars and damaged the financial security of innocent victims. They will now be held accountable for their blatant misuse of the power of their positions.”
“The criminal behavior in this case represents the most egregious betrayal of trust by two of this institution’s leaders, resulting in years of ill-gotten gains for the defendants, all while violating the faith that SPCU’s members placed in them,” said Kyle A. Myles, Special Agent in Charge of the Federal Deposit Insurance Corporation, Office of Inspector General, Atlanta Region. “We are grateful to our regulatory and law enforcement partners in this case and will continue to vigorously investigate allegations of financial crime at FDIC-supervised institutions and in support of our fellow financial regulators.”
According to court documents, Lehman served as President of Southern Pine Credit Union (SPCU) in Valdosta from 1990 to 2020. Paolo was SPCU’s controller from Oct. 2011 to June 2020. The Credit Union’s members are employees of the local paper mill and their families. Lehman and Paolo were both authorized to originate all types of loans, were responsible for filing quarterly reports to the National Credit Union Administration (NCUA) and had access to all SPCU employees’ usernames and passwords for all SPCU computers and software.
Lehman began her fraud in June 2003, when she created a share secured loan in a SPCU account using the name and social security number of a member without that individual’s knowledge. From Feb. 2012 to May 31, 2020, Lehman paid off the loan and rebooked it multiple times with additional advances. She would take the proceeds and put them in a joint share draft account she had with the individual, using the proceeds to pay for a boat, a hunting club share, personal expenses and gifts to family members. This loan was repaid in full. However, Lehman created another share secured loan in another individual’s name without their knowledge and would also pay off the loan and rebook it multiple times for personal spending. To conceal these activities, Lehman created false credit transactions using the names and passwords of SPCU employees. These transactions would advance the due date on the loans, which prevented these loans from appearing on quarterly call reports to the NCUA and allowed Lehman to defer or not make payment on these loans. Following these transactions, Lehman created debit entries to put the loans back on the accounts, which would often include interest accrued on the outstanding loans. She made additional fraudulent loan advances simultaneously with those entries to advance the loan dates. She reflected the loans as being paid off at the end of the quarter to prevent possible detection of artificial growth in the SPCU loan portfolio. In total, the drafts needed to pay off the loan balances at each quarter grew to $4,112,870.63, excluding payments and interest, as of May 31, 2020.
Paulo committed a similar fraud scheme to Lehman. In Oct. 2011, Paulo created a share secured loan in a SPCU account using the name and social security number of a member without that individual’s knowledge. From Nov. 2011 until May 29, 2020, Paulo took out additional advances on the loan as well as additional loans from the account. Paulo would transfer the loan proceeds into a joint account for personal spending purposes. She created another share secured account using the personal identity of another individual and would pay off the loan and rebook it multiple times with additional advances, using the proceeds for her own personal expenses or electronically transfer money into her family’s accounts. Paulo concealed her schemes as Lehman concealed hers: creating false credit transactions using the usernames and passwords of SPCU employees to simulate the payoff of the loans, which would advance the due date on the loans. Paulo also created debit entries using other people’s usernames and passwords to put the loans back on the accounts, which would often include interest accrued on the outstanding loans. The drafts needed to pay off the loan balances at each quarter grew to $1,233,201.77, excluding payments and interest, as of May 31, 2020. Paulo made $7,736.16 in legitimate payments to the loan balances.
The case was investigated by the FBI and the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC OIG).
Assistant U.S. Attorney Hannah Couch is prosecuting this case for the Government.
Former Senior Executive and Former Sales Manager Convicted of Selling Data on Millions of U.S. Consumers to Perpetrators of Mail Fraud SchemesRead the Press Release
The Justice Department announced today that a jury found a former senior executive and a former sales manager of Epsilon Data Management LLC (Epsilon) guilty of federal criminal charges related to the targeting of millions of U.S. consumers for mass-mailing fraud schemes.
Robert Reger, 57, of Boulder, Colorado, and David Lytle, 64, of Leawood, Kansas, were found guilty today of conspiracy to commit mail and wire fraud and numerous counts of substantive mail and wire fraud.
According to evidence presented at the two-week trial, the defendants were key participants in a scheme that knowingly sold targeted lists of consumers and their addresses to perpetrators of fraud schemes involving the sending of false and deceptive mail to consumers over the course of 10years. The defendants committed the crimes while working at data broker Epsilon which used transactional data collected from marketing clients to predict new “responsive buyers” using computer algorithms and a database of 100 million U.S. households. The jury found the defendants knew that their scheme was providing data to fraudster clients. Evidence at trial showed that the defendants used Epsilon’s algorithms to predict new lists of consumers most likely to respond to the frauds and that the defendants’ business unit worked with dozens of clients with scam letters promising large prizes or falsely personalized astrological mailings promising wealth.
As part of the scheme, the conspirators sold the names and address of millions of U.S. consumers to perpetrators of schemes engaged in fraud, knowing that their fraudster clients were targeting elderly and vulnerable people. Evidence at trial showed that the defendants sold nearly 100 lists to just one fraudster client, and that the defendants had many other fraudster clients with scam letters. At trial, elderly victims and their adult children testified about the scam letters victims received falsely promising cash prizes. Evidence showed that each of these victims were targeted for fraud by members of the conspiracy. A number of current and former Epsilon employees also testified, along with three witnesses who previously pleaded guilty to conspiracy to commit mail fraud: a list broker and two Epsilon clients who operated mail fraud schemes.
“This case serves as a warning that the Justice Department Consumer Branch and its law enforcement partners will hold corporate executives accountable for fraudulent use of consumer data,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will investigate and prosecute individuals who use sophisticated technology to defraud consumers.”
“Defrauding elderly and vulnerable consumers will not be tolerated in the State of Colorado,” said U.S. Attorney Cole Finegan for the District of Colorado. “This case is an example of the responsibility both executives and companies hold when it comes to gathering and selling personal data, and I hope other companies take note of the serious outcomes of this case.”
“The U.S. Postal Inspection Service (USPIS) sees the conviction of these individuals as a significant victory in our ongoing efforts to protect older adults from fraud and exploitation,” said Inspector in Charge Eric Shen of USPIS’ Criminal Investigations Group. “These criminals preyed on some of the most vulnerable members of our community, and today's verdict sends a clear message that such predatory behavior will not be tolerated. We will continue to work tirelessly to ensure justice is served and to prevent these crimes from happening in the future.”
Evidence at trial showed that Robert Reger worked at Epsilon from 2005 to 2017, where he led sales teams after building and leading the sales unit engaged in fraud, the Direct to Consumer Unit. When Reger left Epsilon, he was senior vice president overseeing the Direct to Consumer Unit. In convicting Reger, the jury found he intentionally joined in the conspiracy and had specific intent to defraud victims of the schemes.
David Lytle worked at Epsilon from 2012 to 2018 as a business development manager recruiting clients for the Direct to Consumer Unit and was responsible for signing up many of the clients engaged in fraud.
The jury found that Reger and Lytle were guilty of conspiracy to commit mail or wire fraud based on evidence that members of the conspiracy knew they were routinely selling consumer data to fraudsters.
The jury found both Reger and Lytle guilty of seven counts of mail fraud. Evidence at trial showed that the conspirators sold lists of consumers to fraudsters, which caused victims to send checks in response to letters promising large cash prizes. The jury found also Reger guilty of six counts of wire fraud and Lytle guilty of 12 counts of wire fraud in connection with electronic shipments of names and addresses and other emails that carried out the objectives of the scheme to defraud.
A sentencing hearing is scheduled on Sept. 30. Reger and Lytle both face a maximum penalty of 20 years in prison for each count.
In 2018, former Epsilon Vice President Steven Fritz Kessler pleaded guilty to conspiracy to commit mail fraud for his participation in the fraudulent scheme.
The defendants’ former employer, Epsilon resolved its criminal liability via a deferred prosecution agreement in 2021, paying $150 million in penalties and victim compensation. That victim compensation effort has returned $122 million to more than 200,000 victims of fraud schemes for which Epsilon provided data.
USPIS’ Transnational Elder Fraud Strike Force investigated this matter.
Senior Trial Attorney Alistair Reader and Assistant Director Rachael Doud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Rebecca Weber for the District of Colorado prosecuted the case. Senior Trial Attorney Ehren Reynolds and former Assistant U.S. Attorney Hetal Doshi for the District of Colorado also assisted in the case, along with outstanding support staff from the Civil Division’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Colorado.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. 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. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the Federal Trade Commission at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Former Senior Executive and Former Sales Manager Convicted of Selling Data on Millions of U.S. Consumers to Perpetrators of Mail Fraud SchemesRead the Press Release
DENVER – The Justice Department announced today that a jury found a former senior executive and a former sales manager of Epsilon Data Management LLC (Epsilon) guilty of federal criminal charges related to the targeting of millions of U.S. consumers for mass-mailing fraud schemes.
Robert Reger, 57, of Boulder, Colorado, and David Lytle, 64, of Leawood, Kansas, were found guilty today of conspiracy to commit mail and wire fraud and numerous counts of substantive mail and wire fraud.
According to evidence presented at the two-week trial, the defendants were key participants in a scheme that knowingly sold targeted lists of consumers and their addresses to perpetrators of fraud schemes involving the sending of false and deceptive mail to consumers over the course of 10years. The defendants committed the crimes while working at data broker Epsilon which used transactional data collected from marketing clients to predict new “responsive buyers” using computer algorithms and a database of 100 million U.S. households. The jury found the defendants knew that their scheme was providing data to fraudster clients. Evidence at trial showed that the defendants used Epsilon’s algorithms to predict new lists of consumers most likely to respond to the frauds and that the defendants’ business unit worked with dozens of clients with scam letters promising large prizes or falsely personalized astrological mailings promising wealth.
As part of the scheme, the conspirators sold the names and address of millions of U.S. consumers to perpetrators of schemes engaged in fraud, knowing that their fraudster clients were targeting elderly and vulnerable people. Evidence at trial showed that the defendants sold nearly 100 lists to just one fraudster client, and that the defendants had many other fraudster clients with scam letters. At trial, elderly victims and their adult children testified about the scam letters victims received falsely promising cash prizes. Evidence showed that each of these victims were targeted for fraud by members of the conspiracy. A number of current and former Epsilon employees also testified, along with three witnesses who previously pleaded guilty to conspiracy to commit mail fraud: a list broker and two Epsilon clients who operated mail fraud schemes.
“This case serves as a warning that the Justice Department Consumer Branch and its law enforcement partners will hold corporate executives accountable for fraudulent use of consumer data,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will investigate and prosecute individuals who use sophisticated technology to defraud consumers.”
“Defrauding elderly and vulnerable consumers will not be tolerated in the State of Colorado,” said U.S. Attorney Cole Finegan for the District of Colorado. “This case is an example of the responsibility both executives and companies hold when it comes to gathering and selling personal data, and I hope other companies take note of the serious outcomes of this case.”
“The U.S. Postal Inspection Service (USPIS) sees the conviction of these individuals as a significant victory in our ongoing efforts to protect older adults from fraud and exploitation,” said Inspector in Charge Eric Shen of USPIS’ Criminal Investigations Group. “These criminals preyed on some of the most vulnerable members of our community, and today's verdict sends a clear message that such predatory behavior will not be tolerated. We will continue to work tirelessly to ensure justice is served and to prevent these crimes from happening in the future.”
Evidence at trial showed that Robert Reger worked at Epsilon from 2005 to 2017, where he led sales teams after building and leading the sales unit engaged in fraud, the Direct to Consumer Unit. When Reger left Epsilon, he was senior vice president overseeing the Direct to Consumer Unit. In convicting Reger, the jury found he intentionally joined in the conspiracy and had specific intent to defraud victims of the schemes.
David Lytle worked at Epsilon from 2012 to 2018 as a business development manager recruiting clients for the Direct to Consumer Unit and was responsible for signing up many of the clients engaged in fraud.
The jury found that Reger and Lytle were guilty of conspiracy to commit mail or wire fraud based on evidence that members of the conspiracy knew they were routinely selling consumer data to fraudsters.
The jury found both Reger and Lytle guilty of seven counts of mail fraud. Evidence at trial showed that the conspirators sold lists of consumers to fraudsters, which caused victims to send checks in response to letters promising large cash prizes. The jury found also Reger guilty of six counts of wire fraud and Lytle guilty of 12 counts of wire fraud in connection with electronic shipments of names and addresses and other emails that carried out the objectives of the scheme to defraud.
A sentencing hearing is scheduled on Sept. 30. Reger and Lytle both face a maximum penalty of 20 years in prison for each count.
In 2018, former Epsilon Vice President Steven Fritz Kessler pleaded guilty to conspiracy to commit mail fraud for his participation in the fraudulent scheme.
The defendants’ former employer, Epsilon resolved its criminal liability via a deferred prosecution agreement in 2021, paying $150 million in penalties and victim compensation. That victim compensation effort has returned $122 million to more than 200,000 victims of fraud schemes for which Epsilon provided data.
USPIS’ Transnational Elder Fraud Strike Force investigated this matter.
Senior Trial Attorney Alistair Reader and Assistant Director Rachael Doud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Rebecca Weber for the District of Colorado prosecuted the case. Senior Trial Attorney Ehren Reynolds and former Assistant U.S. Attorney Hetal Doshi for the District of Colorado also assisted in the case, along with outstanding support staff from the Civil Division’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Colorado.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. 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. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the Federal Trade Commission at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Former Executive Director of Tribal non-profit sentenced for embezzling federal fundsRead the Press Release
Tacoma – The former Executive Director of the Western Washington Indian Employment Training Program (WWIETP) was sentenced yesterday in U.S. District Court in Tacoma to five months in custody for embezzling from a program receiving federal funds, announced U.S. Attorney Tessa M. Gorman. Debbie Rawle, 69, formerly of Tacoma, served as Executive Director of the tribally owned non-profit job training program for several years until October 2019. The non-profit is now defunct and no longer receiving any federal funds. At the sentencing hearing, Chief U.S. District Judge David G. Estudillo said that a custodial sentence was appropriate given the seriousness of the offense, which hurt so many who were looking for assistance from the program.
“As the Chairman of the Squaxin Island Tribe noted for the court, this non-profit was supposed to provide services to twenty-one member tribes, whose members “are among those in the greatest need,”’ said U.S. Attorney Gorman. “While eligible tribal members’ needs went unmet, Ms. Rawle spent lavishly on herself – installing an above ground pool, buying electronics and accessories for motorcycles.”
According to records in the case, the job training non-profit received $698,153 in 2018 and $703,388 in 2019 to provide employment and training services for eligible tribal members. The U.S. Department of Labor, Employment and Training Administration, Division of Indian and Native American Programs administers the funds.
In September 2019, the Division of Indian and Native American Programs began investigating questionable expenditures using the debit card of the non-profit training organization at a Macy’s store. Rawle provided false and misleading information about the purchases, claiming they were work related. In fact, there were multiple purchases of items for Rawle’s own use including a new mattress, sunglasses, and clothing.
Further investigation revealed Rawle used the organization debit card for purchases at Best Buy, Amazon, and Costco. At Costco she purchased a cedar pavilion and above ground swimming pool, while on Amazon she ordered a pool maintenance kit, and motorcycle accessories costing more than $1,000. In all, the embezzled funds amount to $99,990, which Rawle has agreed to pay in restitution.
Vicki Kruger, a Squaxin Island tribal elder and former WWIETP board member, spoke at the sentencing hearing about the substantial harm caused by Rawle’s mismanagement and theft of Program funds, money that would have been used by tribal members to better their lives. According to Kruger, Rawle destroyed the program and harmed the well-being of tribal members for generations to come.
“Debbie Rawle embezzled federal grant funds that were intended to provide education, job training, and employment services to Native Americans in western Washington under the Western Washington Indian Employment and Training Program (WWIETP). As the former executive director of the program, Rawle violated the trust of those she served by personally enriching herself with those funds. We will continue to work with our law enforcement partners to aggressively identify those who misuse U.S. Department of Labor grant funds and bring them to justice,” said Quentin Heiden, Special Agent-in-Charge, Western Region, U.S. Department of Labor, Office of Inspector General.
The case was investigated by the U.S. Department of Labor, Employment and Training Administration, Division of Indian and Native American Programs (“DINAP”), the U.S Department of Labor Office of Inspector General (DOL-OIG) and the FBI.
The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.
Former Commercial Airline Pilot Convicted by Federal Jury of Tax CrimesRead the Press Release
MINNEAPOLIS – A federal jury found a former commercial airline pilot guilty of tax evasion, filing false tax returns, failing to file tax returns, and making false claims, announced U.S. Attorney Andrew M. Luger.
According to the evidence presented at trial, Charles Randall Sorensen, 72, of Minnetonka, was a commercial airline pilot who retired in 2016. In January 2017, Sorensen filed a fraudulent tax return for the 2015 tax year, falsely claiming that he was entitled to a $55,365 tax refund. In reality, Sorensen owed more than $49,000 in income taxes that year. In March 2017, Sorensen filed a fraudulent tax return for the 2016 tax year, falsely claiming that he was entitled to a $123,370 tax refund. In reality, he owed more than $175,000 in taxes that year. The IRS conducted an audit of Sorensen’s 2015 and 2016 tax returns and found that Sorensen fraudulently received more than $150,000 in tax refunds to which he was not entitled and owed more than $290,000 in taxes, interest, and penalties for those tax years.
According to the evidence presented at trial, Sorensen refused to pay his tax debt and took steps to actively evade the IRS’s collection efforts by hiding his income and assets in bank accounts in the name of shell religious non-profits and by liquidating his retirement accounts and converting the funds into cryptocurrency. Sorensen also failed to file federal income tax returns for 2017, 2018, and 2019. Sorensen owes the United States more than $300,000.
Following a four-day trial before Chief Judge Patrick J. Schiltz in U.S. District Court, Sorensen was found guilty today on two counts of filing a false tax return, one count of tax evasion, three counts of failing to file a tax return, and one count of making a false claim. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by IRS – Criminal Investigations.
Assistant U.S. Attorneys Michael P. McBride and Campbell Warner tried the case.
Former Clutier City Clerk Sentenced to Nearly Two Years in Federal Prison for Stealing from the CityRead the Press Release
A woman who formerly worked as the city clerk for the City of Clutier, Iowa, and who committed wire fraud to steal from the city was sentenced today to nearly two years in federal prison.
Keri Kopriva, age 44, from Elberon, Iowa, received the prison term after an October 26, 2023, guilty plea to one count of wire fraud.
Information from a plea agreement and at sentencing showed that Kopriva was working as the city clerk for the City of Clutier between January 2016 and December 2018. During this time, Kopriva stole money from the city in various ways, including writing checks to herself and to family members, using city credit cards for personal expenses, and pocketing money meant for utility payments from citizens of the city. Information at sentencing showed that over the nearly three years, Kopriva stole more than $107,000 from the city.
Kopriva was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Kopriva was sentenced to 21 months’ imprisonment. She was ordered to make more than $108,000 in restitution to the City of Clutier. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Kopriva is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-cr-13.
Follow us on Twitter @USAO_NDIA.
Florida Man Sentenced to 96 Months in Prison for Role in Multimillion-Dollar Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A Florida man was sentenced to 96 months in prison for his role in a multimillion-dollar durable medical equipment (DME) kickback scheme, Attorney for the United States Vikas Khanna, District of New Jersey, and U.S. Attorney Markenzy Lapointe, Southern District of Florida, announced today.
Kareem Memon, 34, of Coral Springs, Florida, previously pleaded guilty before U.S. District Court Judge Raag Singhal to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute. Judge Singhal imposed the sentence on May 29, 2024, in the Southern District of Florida.
According to documents filed in the case and statements made in court:
Memon and his conspirators owned and operated marketing call centers and telemedicine companies through which they obtained doctors’ orders for DME for Medicare beneficiaries without regard to medical necessity. Memon and his conspirators provided doctors’ orders in exchange for bribes from DME companies that provided the braces to Medicare beneficiaries. Memon and his conspirators caused losses to Medicare in excess of $11 million.
On Sept. 21, 2023, Memon pleaded guilty to wire fraud, money laundering, and felon in possession charges in a separate case before Judge Singhal. Memon submitted fraudulent loan applications seeking more than $451,000 in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and used those funds for personal gains. At the time of Memon’s arrest he was a felon and found to be unlawfully in possession of an arsenal of 12 firearms and ammunition.
In addition to the prison term, Judge Singhal sentenced Memon to three years of supervised release.
Attorney for the United States Khanna and U.S. Attorney Lapointe credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Acting Special Agent in Charge is Maged Behnam in Miami, Florida; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Brian J. Solecki; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Matthew Specht of District of New Jersey and Assistant U.S. Attorney Robin Waugh of the Southern District of Florida. Assistant U.S. Attorney Mitchell Hyman for the Southern District of Florida is handling asset forfeiture.
Five Rochester Residents Plead Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
CONCORD – Five Rochester residents pleaded guilty this week in federal court to drug offenses, U.S. Attorney Jane E. Young announces.
The following defendants pleaded guilty to drug offenses:
- Monty Granger, age 43, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and three counts of distribution of methamphetamine. U.S. District Court Judge Joseph Laplante scheduled sentencing for September 9, 2024.
- Michelle Fredette-Chatman, age 38, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and one count of distribution of methamphetamine. U.S. District Court Judge Joseph Laplante scheduled sentencing for September 13, 2024.
- Edward Deal III, age 38, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine. U.S. District Court Judge Joseph Laplante scheduled sentencing for September 18, 2024.
Charged in a separate indictment, the following defendants also pleaded guilty to drug offenses:
- Felix Urrutia, age 51, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and four counts of distribution of methamphetamine. U.S. District Court Judge Joseph Laplante scheduled sentencing for July 15, 2024.
- Hailey Cahill, age 28, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine. U.S. District Court Judge Paul Barbadoro scheduled sentencing for September 10, 2024.
Between October 3 and October 12, 2023, Mr. Granger sold methamphetamine to a confidential source on three occasions. On October 23, 2023, the confidential source paid Mr. Granger for another methamphetamine purchase. Therefore, Mr. Deal organized the drug transaction and Ms. Fredette-Chatman ultimately sold the methamphetamine to the confidential source.
Between July 27, 2023 and October 2023, Ms. Cahill sold methamphetamine to Mr. Urrutia on several occasions. Thereafter, Urrutia sold the methamphetamine to a confidential source. Investigators uncovered the conspiracy through surveillance of Ms. Cahill, who left her home and met with Mr. Urrutia prior to each drug transaction between Mr. Urrutia and the confidential source.
The charge of conspiracy to distribute and to possess with intent to distribute controlled substances and the distribution of controlled substances provides for a sentence up to 20 years in prison, at least a three-year term of supervised release, and a maximum fine of $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation’s Major Offender Task Force led the investigation. The Major Offender Task Force is comprised of federal agents partnered with law enforcement officers from police departments state-wide. Valuable assistance was provided by the Dover and Rochester Police Departments, the Strafford County Sheriff’s Office, and the United States Marshals Service. Assistant U.S. Attorney Heather A. Cherniske is prosecuting the case.
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Final Defendant Sentenced for Federal Conspiracy Against Rights and Freedom of Access to Clinic Entrances (FACE) Act Convictions Related to 2020 D.C. Clinic Invasion and BlockadeRead the Press Release
Paulette Harlow was sentenced today to 24 months in prison following her convictions for federal conspiracy against rights and Freedom of Access to Clinic Entrances (FACE) Act offenses in connection with the blockade of a Washington, D.C., area reproductive health clinic on Oct. 22, 2020.
Previously, Lauren Handy was sentenced to 57 months in prison, John Hinshaw was sentenced to 21 months in prison, William Goodman was sentenced to 27 months in prison, Jonathan Darnel was sentenced to 34 months in prison, Herb Geraghty was sentenced to 27 months in prison, Jean Marshall was sentenced to 24 months in prison, Joan Bell was sentenced to 27 months in prison and Heather Idoni was sentenced to 24 months in prison. A 10th defendant, Jay Smith, was sentenced to prison following his guilty plea to a felony FACE Act offense on March 1, 2023.
“These 10 defendants have been held accountable for using force, threatening to use force and physically obstructing access to reproductive health care in the District of Columbia,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to protect both patients seeking reproductive health services and providers of those services. We will hold accountable anyone who seeks to unlawfully obstruct or block access to reproductive health services in our country.”
“Today, the final defendant was sentenced in an elaborate conspiracy by 10 people to intentionally and forcibly block patients and workers from accessing a reproductive health clinic while streaming it live online,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “The FBI will not stand for anyone who violates federal laws causing destruction, injury and violent attacks like this one. We are dedicated to protecting the rights of all Americans to safely access medical services and ensuring providers can perform their duties freely.”
These defendants were convicted following three separate trials in 2023. Idoni is scheduled to be sentenced in a separate matter on July 30, following conspiracy and FACE Act convictions in an unrelated clinic blockade from Tennessee.
Evidence presented at trial established that the defendants used force and physical obstruction to execute a clinic blockade that was organized by the group’s leaders, Handy and Darnel. The defendants planned and organized the clinic invasion using social media, text messages and telephone calls, and several co-conspirators, including defendants Hinshaw, Goodman, Geraghty, Marshall, Bell, Harlow, Idoni and Smith traveled from northeast and midwestern states to participate in the blockade. Prior to the clinic incursion, the defendants met with other co-conspirators to plan their crime, which included making a fake patient appointment to ensure the group’s entry into the clinic, using chains and locks to barricade the facility and passively resisting their anticipated arrests to prolong the blockade. The clinic invasion was advertised on social media as a “historic” event that was live-streamed on Facebook. The defendants’ forced entry into the clinic at the outset of the invasion resulted in injury to a clinic nurse. During the blockade, one patient had to climb through a receptionist window to access the clinic, while another laid in the hallway outside of the clinic in physical distress, unable to gain access to the clinic.
The FBI Washington Field Office investigated the case.
Prosecutors from the Civil Rights Division and U.S. Attorney’s Office for the District of Columbia prosecuted the case.
Final Defendant Sentenced for Federal Civil Rights Conspiracy and Freedom of Access to Clinic Entrances OffensesRead the Press Release
WASHINGTON – Paula Paulette Harlow, 75, of Kingston, Massachusetts, was sentenced in U.S. District Court today to 24 months incarceration for her role in a conspiracy that created a blockade at a Washington, D.C. reproductive health care clinic to prevent the clinic from providing, and patients from receiving, reproductive health services.
The announcement was made by U.S. Attorney Matthew M. Graves, Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, and FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division.
Harlow is the 10th member of the conspiracy to be sentenced on charges of civil rights conspiracy and Freedom of Access to Clinic Entrances (FACE) Act violations. Earlier this month, U.S. District Judge Colleen Kollar-Kotelly sentenced eight other members of the conspiracy.
Another of the defendants, the only one to plead guilty, Jay Smith, 34, of Freeport, New York, was sentenced to 10 months in prison and three years of supervised release in March 2023.
As the evidence at trial showed, the defendants engaged in a conspiracy to create a blockade at the reproductive health care clinic to prevent the clinic from providing, and patients from receiving, reproductive health services. As part of the conspiracy, many of the defendants traveled to Washington, D.C. from various northeast and midwestern states, to meet with Lauren Handy and participate in a clinic blockade that was directed by Handy and was broadcast on Facebook.
According to the evidence, on October 22, 2020, Handy – along with her co-conspirators Jonathan Darnel, John Hinshaw, William Goodman, Jean Marshall, Joan Bell, Herb Geraghty, Heather Idoni, and Paula Harlow, among others – forcefully entered the clinic and set about blockading two clinic doors using their bodies, furniture, chains, and ropes. Once the blockade was established, they live-streamed their activities. The evidence also showed that the defendants violated the FACE Act by using a physical obstruction to injure, intimidate and interfere with the clinic’s employees and a patient, because they were providing or obtaining reproductive health services.
DEFENDANTS
NAME
AGE
GUILTY OF
SENTENCE
Lauren Handy
Alexandria, VA
30
Found Guilty on August 29, 2023, of Felony Conspiracy Against Civil Rights and Violation of the Freedom of Access to Clinic Entrances (FACE) Act
Sentenced
May 14, 2024, to 57 Months Incarceration and Three Years of Supervised ReleaseJohn Hinshaw
Levittown, NY
69
Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 14, 2024, to 21 Months Incarceration and Three Years of Supervised ReleaseWilliam Goodman Bronx, NY
54
Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 14, 2024, to 27 Months Incarceration and Three Years of Supervised ReleaseJay Smith
Freeport, NY
34
Pleaded Guilty March 1, 2023, to Violating the FACE Act
Sentenced
Aug. 17, 2023, to 10 Months Incarceration and Three Years of Supervised ReleaseJonathan Darnel Arlington, VA
42
Found Guilty September 15, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 15, 2024, to 34 Months Incarceration and Three Years of Supervised Release
Jean Marshall Kingston, MA
74
Found Guilty September 15, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 15, 2024, to 24 Months Incarceration and Three Years of Supervised Release
Joan Bell
Montague, NJ
76
Found Guilty September 15, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 15, 2024, to 27 Months Incarceration and Three Years of Supervised Release
Herb Geraghty Pittsburgh, PA
27
Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 15, 2024, to 27 Months Incarceration and Three Years of Supervised Release
Heather Idoni Linden, MI
59
Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 22, 2024 to 24 Months Incarceration and Three Years of Supervised ReleasePaula Harlow
Kingston, MA
75
Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 31, 2024 to 24 Months IncarcerationThis case was investigated by the FBI’s Washington Field Office, with valuable assistance from the Metropolitan Police Department and the FBI Field Offices in Newark, New York City, Boston, Pittsburgh and Detroit provided valuable assistance. It was prosecuted by the Justice Department’s Civil Rights Division and the Fraud, Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York, and Southern District of New York; and FBI Field Offices in Newark, New York City, Boston, and Detroit provided valuable assistance.
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Federal Jury Finds Belizean National Guilty of Illegal Re-Entry in Del RioRead the Press Release
DEL RIO, Texas – A federal jury convicted a Belizean national in a federal court in Del Rio for illegal re-entry into the United States.
According to court documents and evidence presented at trial, Francis Kerr aka Francis Deon Flowers, 51, of Belmopan, Belize, was arrested Aug. 22, 2023, near Eagle Pass. He was found to have been in the U.S. illegally, after being formally deported through Houston on or about Oct. 1, 2009.
Kerr had previously served a prison sentence of 17 years and four months after being convicted by a jury in Los Angeles, California for two counts of 2nd degree robbery, four counts of assault with a firearm, and one count of conspiracy to commit robbery.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
U.S. Customs and Immigration Services and the U.S. Border Patrol are investigating the case.
Assistant U.S. Attorneys Paul Markovits and Joshua Garland are prosecuting the case.
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Essex County Man Sentenced to 65 Months in Prison for Role in Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 65 months in prison for his role in a conspiracy to distribute and possess with intent to distribute narcotics, including fentanyl, heroin, and cocaine; and possessing with intent to distribute various narcotics, U.S. Attorney Philip R. Sellinger announced.
Ali Carney, 46, of Newark, pleaded guilty on Jan. 17, 2024, before U.S. District Judge Susan D. Wigenton to a superseding information charging him with conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and cocaine; and possession with intent to distribute fentanyl. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this and other cases and statements made in court:
From April 2021 through October 2022, Carney and others – members and associates of the Grape Street Crips gang – participated in a drug trafficking organization that controlled the drug trade in and around the Oscar Miles Village housing complex in Newark. Carney admitted his role in the conspiracy and that he sold controlled substances on a near daily basis during the conspiracy.
In addition to the prison term, Judge Wigenton sentenced Carney to three years of supervised release.
All 11 of Carney’s co-defendants – Thomas Barney, Najuwan Blake-Williams, Altray Brown, Najee Carney, Tyrone Cradle, Jaquan McAllister, Ikaim McSwain, Latif Terry, Shaquan Ward, Taji Williams, and Zaid Williams – previously pleaded guilty in connection with their respective roles in the conspiracy.
A year-long investigation revealed that the drug trafficking organization distributed over a kilogram of fentanyl-laced heroin and over 280 grams of crack cocaine. Law enforcement also seized multiple firearms, which were used in furtherance of the narcotics trade, from the members of the conspiracy.
U.S. Attorney Sellinger credited special agents of the U.S. Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Cheryl Ortiz; investigators of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; investigators from the U.S. Marshal Service, under the direction of Marshal Juan Mattos Jr.; investigators of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the Newark Police Department, under the direction of Director of Public Safety Fritz G. Fragé, with the investigation leading to the guilty pleas.
The investigation was conducted as part of the Newark Violent Crime Initiative (“VCI”). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Samantha C. Fasanello and Olta Bejleri of the Criminal Division in Newark.
Essex County Convicted Felon Sentenced to 12 Years in Prison for Involvement in Two Shootings, Possessing Firearm with Extended Magazine, and Possessing Heroin with Intent to DistributeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 144 months in prison for his involvement in two shootings, as well as illegally possessing a handgun and possessing heroin he intended to distribute, U.S. Attorney Philip R. Sellinger announced today.
Antoine Hawkins, 31, of Newark, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an indictment charging him with two counts of possession of ammunition by a convicted felon, one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Aug. 18, 2020, video surveillance footage depicted Hawkins as he fired a gun on a Newark street, striking a victim, who survived the shooting. Hawkins was also identified as the perpetrator of another shooting in Newark on Aug. 13, 2020, and cartridge casings from the locations of both shootings were a ballistics match.
On Sept. 16, 2020, law enforcement encountered Hawkins and observed what appeared to be a firearm in Hawkins’s jacket. A subsequent search of Hawkins revealed a 9-millimeter pistol, which was loaded in an extended magazine containing 19 rounds of ammunition.
A search warrant executed at Hawkins’s residence revealed, among other items, 626 glassine envelopes containing heroin and three 9-millimeter magazines.
In addition to the prison term, Judge Hayden sentenced Hawkins to three years of supervised release.
U.S. Attorney Sellinger credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Newark Department of Public Safety, under the direction of Director Fritz G. Fragé; members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the charges.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole Board, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, and New Jersey Department of Corrections.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.
Erie Resident Charged with Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
The two-count Indictment named James Michael Hendricks, 44, as the sole defendant.
According to the Indictment, from on or about May 8, 2021, to on or about May 16, 2022, Hendricks received images depicting minors engaging in sexually explicit conduct. Hendricks also possessed and accessed with intent to view child sexual abuse material in and around June 2022.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of up to $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Pennsylvania State Police conducted the investigation leading to the Indictment.
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 (CEOS), 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delaware Man Admits Coercing New Jersey 11-Year-Old to Travel to Delaware for Sexual ActivityRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a Bear, Delaware man pled guilty in federal court today to one count of Coercion and Enticement of a Minor. The Honorable Jennifer L. Hall, U.S. District Judge for the District of Delaware, accepted the plea.
According to court documents, Darius Matylewich, 27, was arrested by the FBI after he removed an 11-year-old from her New Jersey home and travelled with her to his Bear, Delaware home to engage in sexual activity. On September 10, 2023, the Wayne Township New Jersey Police Department (“WTPD”) received a report of a missing 11-year-old victim. Through investigative measures, WTPD determined that Matylewich took the 11-year-old victim from New Jersey to his home in Bear, Delaware. In assisting WTPD, the New Castle County Police Department safely recovered the 11-year-old victim and arrested Matylewich.
A subsequent investigation revealed that Matylewich met the 11-year-old victim on the internet and communicated with the victim via the online video games and social media platforms. A forensic analysis of Matylewich’s cellphone and social media uncovered message threads in which Matylewich coerced the 11-year-old victim to perform sexual acts, and, in turn, produce child pornography, for him. Investigators also recovered messages in which Matylewich described covertly watching and following the victim near her New Jersey home.
Matylewich also used an application on his iPhone to covertly record conversations, videos, and images of the 11-year-old performing sexual acts that Matylewich solicited from the victim. Matylewich stored hundreds of videos and images of the victim within the “hidden” folder of his Apple Photos application, which could only be accessed via facial recognition.
U.S. Attorney Weiss stated, “My office is dedicated to protecting children from those, like the defendant, who prey on the innocent and vulnerable on the internet. I urge families to be wary of sharing information with online strangers to avoid individuals like the defendant. I commend the diligent work of the FBI, New Castle County Police, and Wayne Township Police for their swift work in bring the defendant to justice.”
“Darius Matylewich is a child predator whose sick and abhorrent behavior took advantage of an innocent girl, who now has significant healing ahead of her,” said Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office. “Unequivocally, our community is safer with Matylewich behind bars, locked away where he can no longer victimize anyone else’s child.”
The case was prosecuted by Assistant U.S. Attorneys Michelle Thurstlic-O’Neill and Kevin P. Pierce. The case was investigated by the FBI’s Delaware Violent Crime and Safe Streets Taskforce with assistance from the Passaic County Prosecutor’s Office, Wayne Township New Jersey Police Department, New Castle County Police Department, and the U.S. Marshals Service.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:23-CR-102.
Danville Man Sentenced for Trafficking Fentanyl Resulting in Overdose DeathRead the Press Release
LEXINGTON, Ky. – A Danville, Ky., man, Akili O. Simpson, 23, was sentenced on Friday, by Chief U.S. District Judge Danny Reeves, to 26 years in prison, for conspiracy to distribute 40 grams or more of fentanyl and distribution of fentanyl that resulted in death.
According to his plea agreement, from March 2022 until July 2023, Simpson conspired with others to distribute quantities of fentanyl in Danville. Simpson also admitted the quantity of the drugs involved in the conspiracy was at least 40 grams of fentanyl. Following a distribution of drugs by Simpson, on November 3, 2022, a victim in Danville overdosed and died, due to the ingestion of fentanyl. The fentanyl distributed by Simpson was in a counterfeit pill, which was marked to resemble an oxycodone pill. During the investigation, law enforcement discovered Instagram messages on the victim’s phone that showed Simpson was the source of the fentanyl that caused the overdose death.
After Simpson’s federal indictment, multiple search warrants were executed and law enforcement located two firearms, ammunition, marijuana, drug trafficking paraphernalia, a drug ledger, and a money counting machine. Simpson admitted to law enforcement agents that he obtained approximately 300 to 500 of the counterfeit pills per month for distribution in Danville. Simpson further admitted that he knew that the pills contained fentanyl.
“This case is a stark reminder of the dangers of illicit fentanyl, its prevalence in our communities, and the devious methods of those selling it,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “These drugs are extremely dangerous and there is little way to know for certain what a drug dealer may be selling. Dealers often distribute fentanyl in the form of counterfeit pills; but while they may look like legitimate pharmaceuticals, the pills contain fentanyl – about 100 times stronger than oxycodone. Any disruption of this illicit fentanyl trade will surely spare others from tragic results, and this prosecution would not have been possible without the outstanding work of the Danville Police and the DEA. Their efforts will energize the committed pursuit of those placing so many people in grave danger.”
“Illicit Fentanyl is the greatest drug threat facing America today, and people like Mr. Simpson, who sow misery and death in our communities, should expect to meet the full weight of the justice system for their actions,” said Erek Davodowich, Acting Special Agent in Charge of the Drug Enforcement Administration’s Louisville Division.
Under federal law, Simpson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
United States Attorney Shier; Erek Davodowich, Acting Special Agent in Charge of the DEA Louisville Field Division; and Chief Tony Gray, Danville Police Department, jointly announced the sentence.
The investigation was conducted by the DEA and Danville Police Department. Assistant U.S. Attorney Todd Bradbury prosecuted the case on behalf of the United States.
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Columbus man sentenced to 10 years in prison for dealing methRead the Press Release
COLUMBUS, Ohio – A Columbus man was sentenced in U.S. District Court today to 120 months in prison for trafficking methamphetamine.
Jerrell E. Harrison, 23, of Columbus, was arrested in September 2023 and pleaded guilty in December 2023 to two counts of distributing 50 grams or more of methamphetamine. Harrison is also known as “T” and “Chubbs.”
According to court documents, in January and February 2023, Harrison sold hundreds of grams of methamphetamine to undercover agents. The drugs field tested at 99 percent and 100 percent purity.
In recordings of Harrison, he discussed owning more than 20 firearms and offered to sell them. He also produced a loaded handgun and stated that he carried his “baby” because one his “trap houses” in the Bottoms was recently shot up, and he had to return fire.
Harrison also offered to sell Glock switches – devices that turn a semi-automatic weapon into a fully automatic machineguns – to the undercover agents.
Additionally, Harrison told the undercover agents he could sell them fentanyl for $1,000 an ounce and said it was the “best price in the city.”
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the sentence imposed by U.S. District Court Judge Edmund A. Sargus, Jr. Assistant United States Attorney Noah R. Litton is representing the United States in this case.
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College Place Man Sentenced to More Than 16 Years in Federal Prison for Drug Trafficking and Illegally Possessing FirearmsRead the Press Release
Richland, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Rex Michael Kern Jr., 39, of College Place, Washington, was sentenced after pleading guilty to two counts of Possession with Intent to Distribute 50 Grams or More of Actual (Pure) Methamphetamine and two counts of being a Felon in Possession of Firearms. United States District Judge Mary K. Dimke imposed a sentence of 198 months imprisonment to be followed by 5 years of supervised release.
According to court documents and information presented at the sentencing hearing, early in the morning of February 11, 2022, the Walla Walla Police Department (WWPD) conducted a traffic stop of a white Hyundai hatchback. The Hyundai had been reported stolen out of Spokane a couple weeks earlier. Kern was driving and was the only occupant in the vehicle.
Officers arrested Kern and obtained search warrants for the Hyundai. Officers recovered a .22 caliber rifle, a 9mm caliber pistol, a small amount of cocaine, a half-pound of marijuana, nearly a pound of methamphetamine, two digital scales with drug residue, and $2,700 in cash from inside the vehicle.
In July of 2022, WWPD officers saw Kern going in and out of vehicles in the driveway of a residence in Walla Walla. Officers arrested Kern on an unrelated felony warrant from Walla Walla Superior Court and conducted a search. Officers located a cell phone, marijuana, methamphetamine, and brass knuckles.
Officers obtained and executed a search warrant for one of the vehicles Kern was accessing before his arrest. Inside the vehicle, WWPD located a cell phone, two 9mm pistols – one of which had no serial number, ammunition, firearm magazines, $3,927 in cash, a half-pound of methamphetamine, 638 fentanyl pills and a small amount of marijuana. One of the cell phones recovered contained messages detailing drug transactions and photographs of fentanyl pills.
“Drug traffickers like Mr. Kern perpetuate the cycle of substance abuse disorders and fatal overdoses by trafficking dangerous drugs into our neighborhoods,” stated U.S. Attorney Waldref. “I am thankful to all the members of our law enforcement team who work hand in hand with my office to keep our communities safe and fight the spread of illicit narcotics.”
“Felons know they’re not supposed to possess firearms,” said ATF Seattle Special Agent in Charge Jonathan Blais. “Not only didn’t Mr. Kern learn a lesson from his previous conviction, he exacerbated it by dealing in narcotics while possessing firearms. Hopefully this sentence will finally send a message to him that he needs to change his actions.”
This case was investigated by the ATF and the Walla Walla Police Department. It was prosecuted by Assistant United States Attorney Brandon Pang.
Clearwater Man Sentenced to Seven Years in Federal Prison for Multiple Child Sexual Abuse Material OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Robert Boyan Carra (44, Clearwater) to 7 years and 3 months in federal prison for receiving, distributing, and possessing child sexual abuse material. The court also ordered Carra to pay $15,000 in restitution to the victims of the offense. Carra entered a guilty plea on January 12, 2024.
According to court documents, in April 2023, agents from Homeland Security Investigations (HSI) executed a federal search warrant at Carra’s residence and discovered more than 300 videos and images of child sexual abuse material on several electronic devices belonging to Carra. Federal agents arrested Carra in June 2023 at Tampa International Airport and seized his cellphone. A forensic search revealed more than 700 images and videos of child sexual abuse material.
“This sentencing for the receipt, distribution, and possession of child sexual abuse material reaffirms HSI’s unwavering commitment to collaborate with our law enforcement partners to seek out those who exploit our children’s innocence,” said HSI Tampa Assistant Special Agent in Charge Kristopher Pagitt.
This case was investigated by Homeland Security Investigations – Tampa, with substantial assistance from the Pinellas Park Police Department. It was prosecuted by Assistant United States Attorney Erin Claire Favorit.
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.
Chinese Nationals Arrested for Alleged $12.3 Million Fraud Involving Fraudulent Return of Counterfeit Apple iPhones and Other DevicesRead the Press Release
LOS ANGELES – Five Chinese nationals are scheduled to be arraigned today after their arrest on federal charges alleging they operated a large-scale, trans-Pacific counterfeit Apple Inc. device scheme that included the fraudulent returns of thousands of iPhones, iPads, and other Apple goods and caused the Cupertino-based technology company at least $12.3 million in losses.
A federal grand jury charged the following defendants in a 22-count indictment that was returned on May 23 and was unsealed today:
- Yang Song, 40, of Corona, the alleged ringleader;
- Junwei Jiang, 37, of East Los Angeles;
- Zhengxuan Hu, 26, of Alhambra;
- Yushan Lin, 30, of Corona; and
- Shuyi Xing, 34, of Corona.
All of the defendants are charged with one count of conspiracy to commit wire fraud and mail fraud, one count of aggravated identity theft, seven counts of wire fraud, 12 counts of mail fraud, and one count of conspiracy to traffic in counterfeit goods.
They were arrested on Thursday and are expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.
“The defendants are accused of taking advantage of Apple’s customer-service policies to steal more than $12 million in merchandise,” said United States Attorney Martin Estrada. “Companies should not be victimized and defrauded for being responsive to customer needs, and these federal charges send a message that our office will take decisive action to uncover and prosecute those who perpetrate fraud.”
“Protecting American ingenuity, ensuring economic security, and shielding the consumers across the nation is a top priority for Homeland Security Investigations,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “Due to the outstanding work of HSI Los Angeles with our law enforcement and private sector partners targeting this large-scale fraud operation, we have prevented millions of dollars from lining the pockets of this transnational criminal organization.”
“The defendants allegedly sought to introduce more than 16,000 fraudulent devices into Apple’s product line with the purpose of exchanging them for genuine devices to be sold for profit,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “CI follows the money, and our expertise helps us safeguard U.S. businesses when faced with fraud. We are committed to our partnerships with fellow law enforcement agencies like Homeland Security Investigations to protect our country’s commerce ecosystem by investigating those who seek to take advantage of businesses’ consumer protection programs.”
According to the indictment, from at least December 2015 to March 2024, Song and Jiang coordinated with co-conspirators in China to ship counterfeit Apple iPhones, iPads, and other devices to them and other U.S.-based co-conspirators. The counterfeit Apple devices shipped to Song, Jiang, and others in the U.S. were designed to look like genuine Apple devices and included identification numbers matching the numbers on real Apple products that had been sold in North America, were owned by real people, and were under warranty through Apple’s manufacturer warranty and AppleCare+, Apple’s extended warranty program.
The defendants allegedly then fraudulently returned the counterfeit iPhones, iPads, and other devices to Apple as if they were genuine and had been legitimately purchased, were eligible for Apple’s warranty programs, and as if they were the lawful possessor of the Apple devices. The real identification numbers and serial numbers on the counterfeit devices that defendants allegedly retuned were designed to essentially impersonate the real Apple devices owned by real people throughout the United States, which defrauded Apple’s warranty programs and potentially deprived the Apple devices’ lawful owners of the warranty benefits to which they were entitled.
The defendants allegedly knowingly and fraudulently represented that the counterfeit Apple devices they returned were genuine but were broken or non-operational and were covered by the company’s warranty programs. Some of the false reasons given to Apple store employees were because the devices purportedly would not power on, were physically damaged, or had other defects. But the defendants allegedly knew that the Apple devices they were returning were counterfeit and fraudulently used the identification numbers and serial numbers of real people’s Apple devices to victimize both Apple and the device owners.
As part of the scheme, the defendants allegedly visited multiple Apple stores throughout Southern California, including Apple stores in Beverly Hills, Sherman Oaks, Pasadena, Irvine, Northridge, Manhattan Beach, Brea, Rancho Cucamonga, Cerritos and at shopping malls such as The Grove in Los Angeles, South Coast Plaza in Costa Mesa, Fashion Island in Newport Beach, and The Americana at Brand in Glendale. In many cases, they would drive all over Southern California in a single day and visit as many as 10 different Apple stores where they would allegedly return counterfeit devices.
Once at the Apple stores, Apple employees then either replaced or repaired the counterfeit Apple device with a genuine Apple device in the same visit or, on other occasions, took the defendants’ counterfeit devices and ship them to a repair center. Apple then shipped to the defendants a genuine replacement Apple device or a repaired device to either an Apple store, where the defendants returned to pick up the new device or at the dozens of mailboxes that the defendants allegedly rented across Southern California.
As part of the scheme, the defendants allegedly took multiple steps to disguise their identities and hide their fraud over the years. For example, they allegedly rented dozens of mailboxes at UPS stores across Southern California for use in the scheme, including to receive counterfeit devices from China and receive genuine replacement devices from Apple. They allegedly also misspelled the mailing addresses they provided to Apple and added or removed extra characters to the mailing addresses, to disguise the fact that they were processing numerous fraudulent returns of Apple devices. Other times, they allegedly used aliases to make appointments at Apple stores to process their fraudulent returns of devices.
After successfully returning the counterfeit Apple devices for genuine ones, the defendants allegedly shipped the genuine devices to co-conspirators both in the United States and abroad, primarily in China, where the genuine Apple devices were resold at a substantial profit.
In total, the defendants fraudulently returned and attempted to return more than 16,000 counterfeit Apple devices, causing Apple at least $12.3 million in losses.
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, the defendants would face a statutory maximum sentence of 20 years’ imprisonment on each of the conspiracy to commit mail and wire fraud, wire fraud, and mail fraud charges, a statutory mandatory minimum sentence of two years’ imprisonment for the aggravated identity theft charge, and a statutory maximum sentence of 10 years’ imprisonment on the conspiracy to traffic counterfeit goods charge.
Homeland Security Investigations and IRS Criminal Investigation are investigating this matter. The United States Postal Inspection Service and the Los Angeles Police Department provided substantial assistance.
Assistant United States Attorney Andrew M. Roach of the Cyber and Intellectual Property Crimes Section is prosecuting this case.
Charlotte Man Sentenced to Federal Prison for Fraudulent Real Estate SchemeRead the Press Release
GREENVILLE, S.C. —Dennis S. Lepka, Jr., 42, of Charlotte, North Carolina, was sentenced to six and a half years in federal prison for his role in a real estate fraud scheme.
The Federal Bureau of Investigation (FBI) began an investigation after they received multiple complaints that Lepka was engaging in fraudulent real estate transactions. Lepka’s business model was built upon misleading both sellers and buyers of residential properties. He promised the sellers that he would purchase their home and take over their outstanding mortgage. In some instances, Lepka told them they would stay on the mortgage as a credit repair service. He assured the buyers that they were in a rent-to-own agreement with Lepka. In truth, Lepka did not own the properties he was selling. He concealed information about existing mortgages from the buyers and did not disclose to the banks holding mortgages that real estate transactions were taking place. He required the buyers to provide substantial down payments and then make monthly payments to him. Lepka did not make the mortgage payments to the original lenders and multiple properties went into foreclosure. Some victims became homeless as a result.
Evidence showed that Lepka targeted members of the Hispanic community because of their immigration status. Lepka believed that victims without legal status would be reluctant to report fraud to the authorities. Lepka also expressed to his victims that they should trust him because he was a practicing Christian. Victims who spoke at the sentencing expressed hurt that Lepka appealed to their faith to lure them into transactions.
United States District Judge Timothy M. Cain sentenced Lepka to 78 months imprisonment. He also ordered him to pay $2,020,213.50 in restitution. There is no parole in the federal system.
This case was investigated by the FBI Columbia Field Office. Assistant U.S. Attorney Bill Watkins prosecuted the case.
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Cedar Rapids Man Sentenced to Federal Prison for Methamphetamine Distribution and Money Laundering CrimesRead the Press Release
A man who conspired with others to distribute methamphetamine and launder proceeds from trafficking drugs was sentenced May 30 to 30 years in federal prison.
Albert McReynolds, age 35, from Cedar Rapids, Iowa, received the prison term after a November 2, 2023, jury verdict finding him guilty of one count of conspiracy to distribute methamphetamine, one count of conspiracy to commit money laundering, and one count of engaging in a monetary transaction involving property derived from unlawful activity.
The evidence at trial showed that McReynolds was a methamphetamine dealer in the Cedar Rapids area. Between September 2020 and November 2021, McReynolds worked with others to distribute methamphetamine. The evidence at trial showed that McReynolds and one of his coconspirators, Calvin Williams, traveled to California to meet with another person to get methamphetamine. Following the meeting, the source of supply in California sent packages containing methamphetamine through the United States Postal Service to several addresses in Cedar Rapids. McReynolds had the packages sent to other individuals’ addresses to avoid having the methamphetamine delivered directly to him. Investigators intercepted and searched three packages that were mailed from California to addresses associated with McReynolds in Cedar Rapids. In each of those packages, investigators located multiple pounds of methamphetamine. In total, investigators identified 46 packages mailed from California to the Cedar Rapids area between September 2020 and November 2021 that all shared similar characteristics to the packages that investigators intercepted and searched. These 46 packages had a combined total mailing weight of over 700 pounds.
The evidence at trial showed that, between October 2020 and November 2021, McReynolds also conspired with others to commit money laundering. McReynolds and others distributed the methamphetamine McReynolds received from California. McReynolds vacuum-sealed the money that he made from selling methamphetamine, and McReynolds and Williams sent packages containing cash through the United States Postal Service to multiple different addresses associated with the methamphetamine source in California. McReynolds and Williams placed fake names and addresses on the return labels of the packages containing the cash so law enforcement would not be able to link McReynolds and others to those packages. On July 28, 2021, McReynolds mailed a package from Cedar Rapids to an address associated with his source in California. Investigators intercepted and searched that package and located $56,470 in cash.
McReynolds was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. McReynolds was sentenced to 360 months’ imprisonment. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
McReynolds is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Adam J. Vander Stoep and Shawn S. Wehde and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the United States Postal Inspection Service, the Internal Revenue Service, and the Drug Enforcement Administration (DEA) Task Force. The DEA Task Force consists of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-91-CJW.
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Cedar Rapids Man Pleads Guilty to Being a Prohibited Person in Possession of FirearmsRead the Press Release
A prohibited person who possessed firearms pled guilty today in federal court in Cedar Rapids, Iowa.
Kyler Goettsch, age 26, of Cedar Rapids, was convicted of one count of being a prohibited person in possession of firearms. At the plea hearing, Goettsch admitted that, in November 2023, he possessed a Springfield pistol and a Sig Sauer pistol after having been convicted of four felonies and a misdemeanor crime of domestic violence.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Goettsch remains in custody of the United States Marshal pending sentencing. Goettsch faces a possible maximum sentence of fifteen years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
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.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 24-16.
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California Resident Sentenced for Federal Drug ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Marco Antonio Naranjo-Aguilar, age 30, of Sacramento, California, was sentenced to 235 months for one count of Possession with Intent to Distribute Methamphetamine.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
On January 9, 2023, Naranjo-Aguilar pleaded guilty to the charge. According to investigators, on January 20, 2022, Naranjo-Aguilar led officers on a high-speed pursuit on Oklahoma Interstate Highway 40 in Sequoyah County, Oklahoma. Upon apprehending and arresting Naranjo-Aguilar, law enforcement seized approximately 22.3 kilograms of methamphetamine from his vehicle.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. Naranjo-Aguilar was remanded to the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Joshua Satter represented the United States.
Brooklyn Man Charged with Gunpoint Robbery of Postal WorkerRead the Press Release
Earlier today, a ten-count indictment was unsealed charging the defendant Alfonso Forney with robbery of a postal worker, a related firearms offense, mail theft related offenses, wire fraud, bank fraud, access device fraud and aggravated identity theft. The defendant’s initial appearance is scheduled for this afternoon before United States Magistrate Judge Joseph A. Marutollo at the federal courthouse in Brooklyn.
Breon Peace, United States Attorney for the Eastern District of New York and Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS) announced the charges.
“The safety of our mail carriers is essential to assuring the unobstructed flow of goods, checks and information through the United States Postal Service,” stated United States Attorney Breon Peace. “The defendant’s pattern of violent behavior endeavored to turn this vital system into his own personal pipeline for theft and fraud.”
USPIS Inspector-in-Charge Daniel B. Brubaker said, “Our highest priority as postal inspectors is the safety of our employees, especially our letter carriers who are out on the streets every day delivering for the American public. They deserve to be protected from violent criminals who prey on these hardworking public servants that serve our communities. Today’s arrest of this alleged armed robber and mail thief is proof of this fact: postal inspectors working alongside our law enforcement partners in the NYPD, and the U.S. Attorney’s Office, Eastern District of New York, will relentlessly pursue violent criminals wherever they lurk. No matter how long it takes, no matter where they hide, we will find them and bring them to justice for their alleged crimes.”
As alleged in the indictment and other court papers, the defendant engaged in both a robbery and mail theft scheme as well as an identity theft scheme.
With respect to the robbery and mail theft scheme, between January 2023 and December 2023, the defendant and others committed gunpoint robberies of United States Postal Service mail carriers to obtain arrow keys, which are universal keys that allow mail carriers to access various postal boxes within a certain geographic area. The defendant and others used the keys to steal mail, including checks from the mail, which were subsequently deposited into the defendant’s bank accounts or otherwise cashed.
With respect to the identity theft scheme, between January 2024 and March 2024, the defendant misrepresented himself as another individual (the “Victim”) to fraudulently gain access to the Victim’s bank accounts. He did so by changing the address on the Victim’s driver’s license to his own address, and then ordering a duplicate of that driver’s license to his residence. After gaining access to the Victim’s bank accounts, the defendant withdrew at least $245,000 and deposited a portion of the funds into his own bank accounts. The defendant also used the Victim’s identity to obtain an automobile loan for approximately $25,000, which the defendant used to purchase a vehicle in the Victim’s name.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 39 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Sean M. Sherman is in charge of the prosecution, with the assistance of Paralegal Specialist Stephanie Heyward.
The Defendant:
ALFONSO FORNEY
Age: 45
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-220 (KAM)
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Boston Man Sentenced to over Two Years in Prison for Firearm and Ammunition OffenseRead the Press Release
BOSTON – A Boston man was sentenced today for unlawfully possessing a firearm and ammunition.
Victor Florentino, 29, was sentenced by U.S. District Court Judge Patti B. Saris to 30 months in prison to be followed by three years of supervised release. In December 2023, Florentino pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
In April 2022, during a motor vehicle stop in Quincy, Florentino was found in possession of a Glock 9mm pistol and 15 rounds of ammunition. Florentino is prohibited from possessing a firearm or ammunition due to a prior felony conviction in 2016 for firearms trafficking. Florentino had completed federal supervised release two months prior to being arrested in April 2022.
Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney John Dawley of the Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.