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21 May 2024
Orthopedic Surgeon Sentenced to More Than One Year in Prison for Health Care FraudRead the Press Release
BOSTON – A Canton orthopedic surgeon was sentenced today in federal court in Boston for his role in a health care fraud scheme.
Dr. Olarewaju James Oladipo, 60, of Canton, was sentenced by U.S. District Court Judge Allison D. Burroughs to 16 months in prison, followed by one year of supervised release. In December 2023, Oladipo was convicted by a federal jury of 10 counts of health care fraud.
From approximately January 2016 through December 2019, Oladipo devised and executed a scheme to defraud health care benefit programs by falsely billing for patient visits. Specifically, Oladipo used billing codes for more complex—and thus more expensive—services that were not provided. Oladipo falsified medical records of patient visits to reflect examinations and services that were not performed. During the four-year period, Oladipo frequently billed for more than 60 patients per day and sometimes more than 100 patients per day. The result was that many, if not most, of Oladipo’s patient visits on such days could have only lasted five minutes or less. However, Oladipo used billing codes that typically corresponded to visits of 15, 25, 30, or even 45 minutes.
Additionally, Oladipo ensured this high flow of patients to his practice by prescribing powerful, highly addictive opioids at a rate that made him one of the top prescribers of such drugs in Massachusetts. The evidence presented at trial showed that Oladipo knowingly prescribed oxycodone to patients suffering from opioid addiction.
The U.S. Attorney’s Office for the District of Massachusetts; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Roberto Coviello, Special Agent in Charge, Health and Human Services-Office of Inspector General; and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office made the announcement. Valuable assistance was provided by the Massachusetts Attorney General’s Office; National Insurance Crime Bureau; and the Drug Enforcement Administration. Assistant U.S. Attorneys Evan D. Panich and William B. Brady are prosecuting the case.
North Little Rock Man Who Illegally Possessed Firearm Sentenced to over 15 Years in Federal PrisonRead the Press Release
LITTLE ROCK—Kamron Leemonte Mathis, a multi-convicted felon, will spend more than 15 years in federal prison for illegally possessing a firearm. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by United States District Judge James M. Moody, Jr.
On October 11, 2023, Mathis, 27, of North Little Rock, pleaded guilty to one count of being a felon in possession of a firearm. On Tuesday, Judge Moody sentenced Mathis to 188 months in the Bureau of Prisons to be followed by five years of supervised released. Mathis, whose prior felony convictions all involved firearms, was indicted on December 7, 2022, on one count of being a felon in possession of a firearm. The maximum penalty Mathis faced was not less than 15 years to life in prison and a fine of $250,000. There is no parole in the federal system.
Classified as an armed career criminal, Mathis’ sentence was based on the offense as well as his documented violent criminal history. Mathis has a prior conviction for being a felon in possession of a firearm as well as prior convictions for robbery on two different occasions, two counts of aggravated assault, and battery in the first degree.
On June 25, 2022, North Little Rock Police Department officers stopped the vehicle that Mathis was driving because the registration had expired. Mathis, who was on parole at the time of the traffic stop and had a search waiver on file, was asked to step out of the vehicle. During this search of the vehicle, a 9 mm firearm was found under the driver’s seat. Also found were two magazines and approximately 24 rounds of ammunition.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Little Rock Police Department.
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Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
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Multiple defendants prosecuted on federal firearms, drug chargesRead the Press Release
SAVANNAH, GA: Newly returned indictments in the Southern District of Georgia include felony charges for illegal firearms possession and drug distribution, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal gun charges.
“In addition to taking guns out of the hands of convicted felons, these cases also demonstrate the increased danger posed by the growing number of illegal machine guns on the streets,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “With our law enforcement partners, we will continue to identify and remove these illegal weapons from our communities.”
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally possess guns.
Those indicted during the May term of the U.S. District Court Grand Jury include:
- Jordan Richardson, 24, of Savannah, charged with Interference with Commerce by Robbery, Possession of a Firearm by a Convicted Felon, and Possession and Discharge of a Firearm in Furtherance of a Crime of Violence;
- Tavare Vashawne Ragin, 43, of Columbus, Ga., and Wesley Earl Wilson, 33, of Thomson, Ga., both charged with Conspiracy to Possess with Intent to Distribute Methamphetamine, and Possession with Intent to Distribute Methamphetamine. Ragin also is charged with Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Malik Havier McKenzie, 26, of Savannah, charged with Possession with Intent to Distribute Fentanyl, Cocaine, Carfentanyl, and Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Possession of a Machine Gun; and Possession of a Firearm by a Convicted Felon;
- Duane B. Smith, 50, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Anthony McQuarters, 31, of Hardeeville, S.C., charged with Possession of a Firearm by a Convicted Felon and Possession of Stolen Firearms. McQuarters was arrested on state charges following a chase on I-16 by multiple law enforcement agencies through Laurens, Treutlen, Emanuel and Candler counties;
- Kenyatta Dunn Nero, 40, of Augusta, charged with Possession of a Firearm by a Convicted Felon;
- Barry Christopher Carpenter, 43, of Gainesville, Ga., charged with Possession of a Firearm by a Convicted Felon. Carpenter was arrested on state charges in Columbia County during a burglary investigation;
- Brodrick Kyle Merritt, 42, of Augusta, charged with Possession of a Firearm by a Convicted Felon;
- Antuane Farmer, 37, of Hinesville, Ga., charged with Possession of a Firearm by a Convicted Felon;
- James Allen Ponder, 47, of Sylvania, Ga., charged with Possession of a Firearm by a Convicted Felon;
- Andrey Denorris Blockett, 37, of Augusta, charged with Possession of a Firearm by a Convicted Felon; and,
- Deleon Alexander Jackson, 23, of Augusta, charged with Possession of a Firearm by a Convicted Felon.
All indicted defendants are considered innocent unless and until proven guilty.
Defendants recently adjudicated on federal firearms charges include:
- Jamell Williams, 44, of Savannah, was sentenced to 80 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers investigating reports of shots fired near a motel determined Williams was in possession of a rifle.
- Akeem Ajmia Lanier, 36, of Metter, Ga., was sentenced to 77 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Metter police officers found a pistol in Lanier’s vehicle during a traffic stop.
- Wilbur Zaccaeus Hightower, 24, of Blackshear, Ga., was sentenced to 72 months in prison after pleading guilty to Possession with Intent to Distribute Cocaine and Marijuana, and Possession of a Machinegun. Pierce County sheriff’s deputies found a pistol and drugs in Hightower’s vehicle after an attempted traffic stop ended with Hightower striking a police vehicle and crashing. ATF agents determined the Glock 9mm pistol in Hightower’s possession was fitted with a device designed to render it fully automatic.
- Tommy Cowart, 60, of Statesboro, Ga., was sentenced to 66 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Bulloch County deputies arrested Cowart after finding a rifle in his car during a traffic stop.
- Zytavious Beck, 26, of Dublin, Ga., was sentenced to 68 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Dublin police arrested Beck while investigating an armed altercation at a housing development and finding Beck in possession of a pistol.
- Darrell Lamar Williams, 25, of Claxton, Ga., was sentenced to 64 months in prison and fined $1,500 after pleading guilty to Possession of Ammunition by a Convicted Felon. Georgia State Patrol troopers arrested Williams after a traffic stop and found him in possession of ammunition.
- Zachary Smith, 26, of Savannah, was sentenced to 45 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon.
- Christopher David Baskett, 46, of Augusta, was sentenced to 30 months in prison and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County sheriff’s deputies arrested Baskett while investigating reports of gunfire in downtown Augusta and a pistol in Baskett’s vehicle.
- Jodarrius Vaughner, 20, of Wrens, Ga., was sentenced to 24 months in prison and fined $1,500 after pleading guilty to Illegal Possession of a Machine Gun. Jefferson County sheriff’s deputies and Wrens police officers arrested Vaughner on a felony warrant from Richmond County. Vaughner had in his possession a Glock pistol fitted with a device that converted it to fully automatic. Vaughner also is under indictment on state charges including murder and aggravated assault.
- Hunter W. Taylor, 26, of Hephzibah, Ga., was sentenced to 40 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County deputies investigating reports of gunfire arrested Taylor after determining he possessed a rifle.
- Kavon Smalls, 29, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police found a pistol after chasing Smalls when he ran away from a vehicle that crashed during an attempted traffic stop.
- Benjamin Priester, 56, of Pooler, Ga., awaits sentencing after pleading guilty to Possession of a Stolen Firearm. Savannah police officers found a pistol in Priester’s possession during a traffic stop and later determined Priester knew the gun had been stolen.
- Daveon Daniels, 25, of Grovetown, Ga., awaits sentencing after pleading guilty to Illegal Possession of a Machine Gun. Columbia County sheriff’s deputies were investigating the accidental fatal shooting of a 4-year-old girl when they determined the gun belonged to Daniels, and that it was equipped with a “Glock switch” to convert it to fully automatic fire.
- Phillip Smith, 49, of Augusta, and Brian Hilliard, 40, of Augusta, both await sentencing after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, and Possession of a Firearm by a Convicted Felon. Seven co-defendants, including Edward Jake Walters, 29, of Grovetown; Glen Taylor, 45, of Beech Island, S.C.; Dustin Bayles, 36, and Joshua Wasden, 36, both of Thomson, Ga.; Linda Campbell, 53, of Augusta; Gary Holcomb, 59, of Martinez; and Destiny Poole, 23, of Grovetown, await sentencing after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine. All were charged in USA v. Walters et al., an indictment alleging an Augusta-area drug trafficking conspiracy. A tenth defendant, Donnie Skillman, 46, of Augusta, awaits further proceedings and is considered innocent unless and until proven guilty.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
21-24
Missoula fentanyl trafficker sentenced to more than four years in prisonRead the Press Release
MISSOULA — A Missoula woman who admitted to distributing fentanyl in the community was sentenced today to four years and two months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Janelle Ann Bergeson, 38, pleaded guilty in January to possession with intent to distribute controlled substances.
U.S. District Judge Donald W. Molloy presided.
The government alleged in court documents that from at least September 2022 to January 2023, Bergeson distributed fentanyl in the Missoula community, and on at least one occasion, traveled with a co-conspirator to acquire the drug in Spokane, Washington. The government estimated that Bergeson is accountable for the distribution of from 2,400 fentanyl pills to 6,000 pills. During an investigation, federal agents intercepted a package addressed to co-defendant Nikolas Pellant and that contained several hundred fentanyl pills. The investigation determined Pellant and his girlfriend and co-defendant, Lynsi Barnes, had been selling the drug that they acquired through the mail and regular trips to Spokane. Bergeson was their primary customer and purchased between 40 and 100 pills every day. In a traffic stop in January 2023, the Montana Highway Patrol stopped Barnes as she was returning from a trip to Spokane, and Bergeson was in the front passenger seat. Law enforcement searched the vehicle and seized more than 450 fentanyl pills. Pellant, Barnes and a third co-defendant, Beau James Breneman, each were sentenced to five years and three months for their convictions in the case.
Assistant U.S. Attorney Karla E. Painter prosecuted the case. The Missouri River Drug Task Force, Drug Enforcement Administration, Homeland Security Investigations, U.S. Postal Service, Montana Highway Patrol, Montana Division of Criminal Investigation, Missoula County Sheriff’s Office, Lewis and Clark County Sheriff’s Office and Shoshone County (Idaho) Sheriff’s Office conducted the investigation.
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Milford Drug Trafficker Pleads Guilty to Fentanyl Distribution ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that WILSON GUZMAN, JR., 39, of Milford, pleaded guilty yesterday before U.S. District Judge Sarala V. Nagala in Hartford to a fentanyl trafficking offense.
According to court documents and statements made in court, a DEA New Haven Task Force investigation revealed that Guzman advertised various controlled substances, including fake oxycodone pills containing fentanyl and fake Adderall pills containing methamphetamine, and other drugs, through an encrypted phone messaging application. He then distributed the drugs to customers in person and through the U.S. mail. Guzman used locations in West Haven and North Haven to store and prepare narcotics for distribution. Between June and August 2023, investigators made controlled purchases of drugs from Guzman, including more than 1,000 counterfeit pills containing fentanyl, counterfeit Adderall containing methamphetamine, and psilocybin mushrooms.
Guzman was arrested on September 6, 2023. On that date investigators searched his Milford residence and the West Haven and North Haven locations and seized various controlled substances, including methamphetamine pills, Xanax pills, psilocybin mushrooms, and approximately 20 kilograms of marijuana, as well as an AR-15 style rifle and a Glock style Polymer 80 handgun that had no serial numbers (“ghost guns”).
Guzman pleaded guilty to distribution of 40 grams or more of fentanyl, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. Judge Nagala scheduled sentencing for August 9, 2024. Guzman is detained pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, and the East Haven Police Department, West Haven Police Department, New Haven Police Department, Connecticut State Police, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.
Mexican man heads to prison for organizing scheme to smuggle 150 kilos of cocaineRead the Press Release
BROWNSVILLE, Texas – A 37-year-old man from Valle Hermoso, Tamaulipas, Mexico, has been sentenced following his conviction for conspiracy to possess with intent to distribute multi-kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Jesus Alfonso Leos-Orozco pleaded guilty May 1, 2023.
U.S. District Judge Fernando Rodriguez Jr. has now ordered Leos-Orozco to serve 140 months in federal prison to be immediately followed by three years of supervised release. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted the necessity to consider the seriousness of the offense, nature of the criminal activity and Leos-Orozco’s extensive involvement in the scheme.
Leos-Orozco was a manager/supervisor of the narcotics smuggling conspiracy responsible for distributing approximately 150 kilograms of cocaine.
From approximately 2019 to 2021, law enforcement conducted multiple arrests of individuals possessing multi-kilograms of cocaine in the Brownsville/Edinburg area. Authorities connected the narcotics seizures to attempts to enter the United States, gas station transfers, highway interdictions and bulk currencies destined for Mexico. The bulk currencies are proceeds of the conspiracy that are both connected to a truck transporting company and Leos-Orozco.
The investigation revealed Leos-Orozco would smuggle 15 to 20 kilograms of cocaine weekly and charge $500 per kilogram imported utilizing his commercial tractor trailers company “Leos Auto Transportes De Carga.” Leos-Orozco would then recruit drivers and pay them $250 per kilogram smuggled into the United States.
Further investigation indicated at least 20 border crossing incidents using a trailer are directly linked to Leos-Orozco. Surveillance video also identified Leos-Orozco as one of the individuals responsible for the transfer of a narcotics shipment to another driver.
Leos-Orozco will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Paul Marian and Luis Salazar prosecuted the case.
Maryland Man Charged with Fentanyl and Cocaine OffensesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Donald McDuffin Williams, age 49, of Baltimore, Maryland, was indicted on federal fentanyl and cocaine charges.
Williams is charged with possession with intent to distribute fentanyl and possession with intent to distribute cocaine base. According to court documents, investigators suspected Williams of trafficking drugs in Harpers Ferry, West Virginia. They obtained a search warrant for a property where Williams was staying and found fentanyl and cocaine.
Williams faces up to 20 years in federal prison for each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government.
This case was investigated by the Eastern Panhandle Task Force, a HIDTA-funded initiative.
An indictment is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Man Sentenced for Sex Trafficking ConspiracyRead the Press Release
WASHINGTON – A Texas man was sentenced today to 22 years and six months in prison for conspiracy to commit sex trafficking by force, fraud, or coercion.
According to court documents, in 2021 and 2022, Gregory Massey, 30, and his girlfriend and co-defendant Patricia Hart, 25, forced two adult victims to engage in commercial sex in different locations. Massey and Hart advertised the victims for commercial sex on websites, kept the money the victims made from commercial sex transactions, required the victims to earn a minimum dollar amount from commercial sex every day, and restricted the victims’ access to food. Massey also tracked the geolocation data on the victims’ phones so that they could not leave his control and used physical violence, including punching and strangling one victim while another watched, and threats of physical violence to force the victims to comply with his demands.
Massey pleaded guilty in January. He agreed to pay $128,800 in restitution to the victims. As a result of his plea, Massey must also participate in the sex offender registration and notification program.
Hart also pleaded guilty in November 2023 to conspiracy to commit sex trafficking. She is scheduled to be sentenced on June 25.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Louisiana Field Division made the announcement.
Homeland Security Investigations, ATF, and the Louisiana State Police investigated the case.
Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana prosecuted the case.
Man Sentenced for Sex Trafficking ConspiracyRead the Press Release
A Texas man was sentenced today to 22 years and six months in prison for conspiracy to commit sex trafficking by force, fraud, or coercion.
According to court documents, in 2021 and 2022, Gregory Massey, 30, and his girlfriend and co-defendant Patricia Hart, 25, forced two adult victims to engage in commercial sex in different locations. Massey and Hart advertised the victims for commercial sex on websites, kept the money the victims made from commercial sex transactions, required the victims to earn a minimum dollar amount from commercial sex every day, and restricted the victims’ access to food. Massey also tracked the geolocation data on the victims’ phones so that they could not leave his control and used physical violence, including punching and strangling one victim while another watched, and threats of physical violence to force the victims to comply with his demands.
Massey pleaded guilty in January. He agreed to pay $128,800 in restitution to the victims. As a result of his plea, Massey must also participate in the sex offender registration and notification program.
Hart also pleaded guilty in November 2023 to conspiracy to commit sex trafficking. She is scheduled to be sentenced on June 25.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; Deputy Special Agent in Charge Eric DeLaune of Homeland Security Investigations (HSI); and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New Orleans Field Division made the announcement.
HSI, ATF, and the Louisiana State Police investigated the case.
Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana prosecuted the case.
Man Sentenced for Laundering over $4.5M Obtained from Business Email Compromise and Romance Fraud SchemesRead the Press Release
ATLANTA - Malachi Mullings has been sentenced to 10 years in federal prison for laundering more than $4.5 million derived from romance fraud scams and business email compromise schemes, including a criminal conspiracy that defrauded a health care benefit program.
“Motivated by greed, Mullings and his co-conspirators brazenly stole millions of dollars from companies and elderly victims located throughout the United States,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our office’s commitment to collaborate closely with our law enforcement partners to bring to justice those who perpetrate these frauds, including at the expense of elderly citizens especially vulnerable to these schemes.”
“Malachi Mullings used various schemes to fraudulently obtain money to feed his greed, and in some cases took advantage of the elderly to do it,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents are skilled financial investigators who can unravel complex financial transactions and money laundering schemes criminals use to hide their ill-gotten money. We will also continue pursuing criminals who commit financial fraud on government programs, financial system, and the elderly.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From at least 2019 through July 2021, Mullings opened 20 bank accounts in the name of a sham company, The Mullings Group LLC. Mullings used those accounts to launder millions of dollars of fraud proceeds generated by business email compromise (BEC) schemes targeting, among others, a health care benefit program and private companies, and romance fraud scams targeting numerous individual victims, several of whom were elderly. Together with his co-conspirators, Mullings engaged in financial transactions designed to conceal the fraud proceeds and used some of the funds to purchase luxury items, such as expensive cars and jewelry. In one instance, Mullings laundered $310,000 that was fraudulently diverted from a state Medicaid program and had been intended as reimbursement for a hospital. In another instance, Mullings obtained $260,000 from a romance scam perpetrated on an elderly victim, which Mullings used to purchase a Ferrari.
Malachi Mullings, 31, of Sandy Springs, Georgia, was sentenced by U.S. District Judge Michael L. Brown to 10 years in prison to be followed by three years of supervised release. He was also ordered to pay restitution to victims. He pleaded guilty to one count of conspiracy to commit money laundering and seven counts of various money laundering offenses on January 17, 2023.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
This case was investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and the U.S. Department of Health and Human Services, Office of the Inspector General.
Assistant U.S. Attorney Kelly K. Connors prosecuted the case, with Trial Attorneys Gary Winters and Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man Sentenced for Laundering over $4.5M Obtained from Business Email Compromise and Romance Fraud SchemesRead the Press Release
A Georgia man was sentenced today to 10 years in prison for laundering more than $4.5 million derived from business email compromise (BEC) schemes, including a scheme that defrauded a health care benefit program, and romance fraud schemes.
According to court documents and evidence presented at sentencing, Malachi Mullings, 31, of Sandy Springs, opened 20 bank accounts in the name of a sham company, The Mullings Group LLC. From at least 2019 through July 2021, Mullings used those accounts to launder millions of dollars of fraud proceeds generated by BEC schemes targeting, among others, a health care benefit program and private companies, and romance fraud schemes targeting numerous individual victims, several of whom were elderly. Together with his co-conspirators, Mullings engaged in financial transactions designed to conceal the fraud proceeds and used some of the proceeds to purchase luxury items, such as expensive cars and jewelry. In one instance, Mullings laundered $310,000 that was fraudulently diverted from a state Medicaid program and had been intended as reimbursement for a hospital. In another instance, Mullings obtained $260,000 from a romance scam, which Mullings used to purchase a Ferrari.
Mullings pleaded guilty in January 2023 to one count of conspiracy to commit money laundering and seven counts of various money laundering offenses.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Kansas City Region; Special Agent in Charge Demetrius D. Hardeman of IRS Criminal Investigation (IRS-CI) Atlanta Field Office; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; and Special Agent in Charge Eugene S. Kowel of the FBI Omaha Field Office made the announcement.
HHS-OIG, IRS-CI, and the FBI investigated the case.
Trial Attorneys Gary Winters and Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kelly Connors for the Northern District of Georgia 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.
Magellan Diagnostics Agrees to Plead Guilty and Pay $42 Million to Resolve Criminal ChargesRead the Press Release
BOSTON – Magellan Diagnostics, Inc., a medical device company headquartered in Billerica, Mass., has agreed to resolve criminal charges relating to its concealment of a device malfunction that produced inaccurately low lead test results for potentially tens of thousands of children and other patients.
As part of the criminal resolution, Magellan will plead guilty to violations of the federal Food, Drug and Cosmetics Act and pay a $21.8 million fine, $10.9 million in forfeiture and a minimum of $9.3 million to compensate patient victims. Today’s resolution also includes a deferred prosecution agreement to resolve felony conspiracy fraud charges against the company.
Magellan’s devices – LeadCare Ultra, LeadCare II and LeadCare Plus – detected lead levels and lead poisoning in the blood of children and adults using either venous (i.e., blood draws through the arm) or fingerstick samples. LeadCare II, which was predominantly used to test fingerstick samples, accounted for more than half of all blood lead tests conducted in the United States from 2013 through 2017. LeadCare Plus and LeadCare Ultra were predominantly used to test venous samples.
Magellan has admitted that it misled its customers and the FDA about a serious malfunction that affected Magellan’s LeadCare devices when they were used to test venous blood samples. By hiding the malfunction and later deceiving customers and the FDA about when the company discovered the malfunction, the nature, extent and frequency of the malfunction, and the risks associated with the malfunction, Magellan caused an estimated tens of thousands of children and other patients to receive inaccurately low lead test results.
Magellan first learned that a malfunction in its LeadCare Ultra device could cause inaccurate lead test results – specifically, lead test results that were falsely low – during the FDA clearance process in June 2013. Magellan, however, released LeadCare Ultra to the market in December 2013 without informing customers or the FDA of the malfunction. Several months after the release, LeadCare Ultra customers independently discovered the malfunction and complained about inaccurate results. In response, Magellan told its customers that it had only recently identified the malfunction and had not observed the malfunction in its clinical trials prior to product release. Magellan, in fact, had known about the malfunction for over a year, including before the product release.
Magellan’s testing in 2013 also indicated that the same malfunction affected the LeadCare II device, which was by far Magellan’s highest-revenue product. Magellan, however, did not notify its customers and the FDA about the LeadCare II malfunction until November 2016.
In 2017, the FDA contacted Magellan and asked when the company first discovered the malfunction. Magellan’s representative falsely told the FDA that Magellan first discovered the problem after receiving customer complaints in late 2014 and shortly before Magellan notified the FDA in 2015 – even though Magellan had discovered the malfunction in 2013. Magellan then sent a false timeline to the FDA, which omitted the company’s internal 2013 studies about the malfunction.
The FDA ultimately found that the LeadCare Devices could not accurately test venous samples, leading to a recall of all LeadCare Devices using venous samples and a warning to the public not to use LeadCare Ultra, LeadCare II and LeadCare Plus for venous blood samples because of the malfunction.
According to the Centers for Disease Control and Prevention, there is no safe level of lead in the blood. Lead exposure may cause irreversible lifelong physical and mental health problems. Young children and pregnant women are most vulnerable to lead exposure, especially those from low-income households and those who live in housing built before 1978 because those homes are more likely to contain lead-based paint and have fixtures containing lead.
As part of today’s criminal resolution, Magellan has agreed to compensate all patients who were demonstrably harmed for the pecuniary damages they suffered as a result of the malfunction in Magellan’s blood lead testing devices. If you or a family member believe you received an inaccurate blood lead test result from a LeadCare device between 2013–2017, please complete the questionnaire located on the FBI’s website at www.fbi.gov/MagellanCaseInquiry. Information about the status of the case is located on the U.S. Attorney’s Office website: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/magellan-diagnostics-inc.
Acting U.S. Attorney Joshua S. Levy; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Roberto Coviello, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Jamie Herbert, Kelly Lawrence, Elysa Wan and Leslie Wright of the Criminal Division are prosecuting the case.
Long Island Man Sentenced to 30 Years in Prison for Drug Trafficking, Distribution of Drugs Causing Death, and Illegal Possession of FirearmsRead the Press Release
Earlier today, in federal court in Central Islip, Marlon Thompson was sentenced by United States District Judge Joan M. Azrack to 30 years in prison for distribution of fentanyl causing the death of a young Long Island man, conspiracy to distribute controlled substances on Long Island, and being a felon in possession of firearms. Thompson was found guilty on all counts following a December 2022 jury trial.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration (DEA), Robert Waring, Acting Police Commissioner, Suffolk County Police Department (SCPD), and Raymond A. Tierney, Suffolk County District Attorney, announced the sentence.
“Today, Thompson was held accountable for the large quantities of fentanyl he distributed all over Suffolk County which had a devastating impact on the community, including the tragic poisoning death of a young man on Long Island,” stated United States Attorney Peace. “This Office, together with our federal and local partners, will continue to work tirelessly to prosecute those who contribute to this epidemic.”
"Today’s sentencing reflects the consequences to those who manufacture and distribute lethal narcotics, while tearing our communities apart” stated DEA New York Division Special Agent in Charge Frank Tarentino. “We will continue to work with our law enforcement partners in making sure those responsible for poisoning our communities bear the heavy burden of the lives they have destroyed.”
“The lethalness of fentanyl is not a secret, and yet, this defendant continued to distribute the deadly drug at the expense of others to make a profit,” Suffolk County Police Acting Commissioner Robert Waring said. “We will continue to work with our law enforcement partners to stem the flow of deadly opioids.”
"Opioid overdose deaths are at crisis levels in the United States and here in Suffolk County, where at least one of our residents dies every day from a fentanyl overdose. I appreciate the help from our federal partners at the Eastern District and the DEA in combating this scourge and I hope that this sentence brings some measure of closure to the family of Mr. Koenig," stated Suffolk County D.A. Raymond A. Tierney.
As proven at trial, from January 2017 through May 2019, the defendant conspired to distribute fentanyl, heroin and cocaine base throughout Suffolk County. On Christmas Day in 2018, the defendant supplied fentanyl to the victim, Freddy Koenig, who suffered a fatal overdose at his parents’ home in Selden, New York. The defendant continued supplying fentanyl, heroin, and crack in Suffolk County for months after Koenig’s death.
When Thompson was arrested, law enforcement recovered fentanyl and drug packaging materials from his basement bedroom, and also seized three illegal guns, including a sawed-off shotgun, and ammunition from Thompson’s storage unit. The government’s evidence included testimony from Thompson’s co-conspirators, text messages between the defendant and drug dealers discussing their illicit business, drug paraphernalia, and thousands of dollars of bundled U.S. currency derived from the drug sales seized from the defendant’s residence.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Samantha Alessi, Gabriel Park and Catherine M. Mirabile are in charge of the prosecution, with the assistance of Paralegal Specialist Adam Bernard.
The Defendant:
MARLON THOMPSON
Age: 42
Selden, New YorkE.D.N.Y. Docket No. 19-CR-596 (S-1) (JMA)
Lead Drug Trafficker Sentenced for Escorting More than 100 Kilos of Pure Methamphetamine through Pawnee CountyRead the Press Release
TULSA, Okla. – A man was sentenced today for his lead role in organizing the drug trafficking of more than 100 kilos of pure methamphetamine, announced U.S. Attorney Clint Johnson.
U.S. District Judge John F. Heil, III, sentenced Jabier Bustos, 35, to 324 months imprisonment, followed by 5 years of supervised release for Drug Conspiracy.
“Today’s prison sentence puts criminals who bring dangerous drugs into the Northern District of Oklahoma, on notice of the cost of that activity,” said U.S. Attorney Clinton Johnson. “My office will continue to work towards disrupting and dismantling any criminal organization trying to operate in our backyards. With the collaboration of several law enforcement partners, more than 100 kilos of pure methamphetamine were stopped from being distributed into the Northern District of Oklahoma.”
“The importance of the defendant’s sentence cannot be overstated. He knowingly smuggled and distributed hundreds of pounds of methamphetamine and other dangerous drugs across Oklahoma,” said Robert Melton, Assistant Special Agent in Charge for the HSI Dallas – Oklahoma Division. “Meth is a major concern affecting our society, with connections to violent crime, theft, addiction, and hundreds of overdose fatalities in the last few years. HSI will aggressively investigate any individual or transnational criminal organization seeking to jeopardize the well-being and safety of our communities through the illicit drug trade.”
“This investigation demonstrates the tremendous importance of state and federal partnerships working to identify and dismantle criminal drug trafficking organizations. Oklahoma continues to see the devastating impact of methamphetamine and fentanyl on lives and communities. And my agency will aggressively target and help prosecute these traffickers who threaten the peace and safety of this state.” — OBN Director Donnie Anderson
According to court documents, Bustos collaborated with his co-defendant, Abel Anthony Flores to get the pure methamphetamine from a drug trafficking organization. Once Bustos and Flores received the delivery they facilitated and escorted more than 101 kilograms of pure methamphetamine through Pawnee County. They both expected to be paid for their involvement in escorting the drugs. Agents not only seized the pure methamphetamine but also found cocaine, fentanyl pills, and several firearms during a search warrant.
Flores previously pled guilty to Drug Conspiracy and was sentenced by U.S. District Judge David O. Nuffer in Feb. 2024. Judge Nuffer ordered Flores to 135 months imprisonment, followed by five years of supervised release.
Bustos will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Homeland Security Investigations, Oklahoma Bureau of Narcotics, and Tulsa County Sheriff’s Office investigated the case. Assistant U.S. Attorney Joel-lyn A. McCormick prosecuted the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Le Mars Man Pleads Guilty to Meth and Firearm ChargesRead the Press Release
Timothy Mullally, 48, from Le Mars, Iowa, pled guilty on May 16, 2024, in federal court in Sioux City to one count of conspiracy to distribute methamphetamine and one count of prohibited person in possession of firearms.
At the plea hearing, Mullally admitted that between January 2022 through September 2022, he and others distributed more than two kilograms of methamphetamine. Evidence showed that on two occasions in August and September 2022 he distributed more than 800 grams of pure methamphetamine to an individual cooperating with law enforcement. During investigation of this matter, law enforcement and United States Postal Inspection Service intercepted a three pound package of methamphetamine coming from California to Mullally’s house in September 2022. During the investigation, including a search warrant at Mullally’s properties and vehicles, law enforcement seized $5,830 and two firearms. Mullally admitted to being a regular user of methamphetamine, and thereby was prohibited from possessing any firearm.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Mullally was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. On the drug conviction, Mullally faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment. For the firearm conviction, Mullally faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine and not more than three years of supervised release.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4083. Follow us on Twitter @USAO_NDIA.
Laurel County Man Sentenced for Conspiracy to Defraud Natural Gas CompaniesRead the Press Release
LONDON, Ky. – A London man, Mark Edward Holbook, 72, was sentenced on Tuesday, by U.S. District Judge Claria Horn Boom, to 12 months and one day in prison, along with two months of home detention, for conspiracy to rig natural gas meters allowing him to steal thousands of dollars from two Kentucky gas companies.
According to his plea agreement, Mark Holbrook and his son, Marshall Holbrook, worked in the business of sourcing natural gas throughout the past 20 years, drilling wells and acquiring gas rights. The Holbrooks often used Delta Gas or Somerset Gas Services (SGS) to transport their gas or for direct sales. In 2016, after the market price of natural gas had fallen substantially, the Holbrooks compensated by manipulating meters that SGS and Delta used on their pipelines to measure how much natural gas the Holbrooks were providing. This scheme allowed the Holbrooks to boost their profit substantially, while financially harming both SGS and Delta.
Mark Holbrook admitted that the financial loss due to this conspiracy was greater than $250,000 and the Court entered a forfeiture order against him, in the amount of $332,952. The Court also ordered Mark Holbrook to pay restitution of $1,207,016 to SGS, and $172,964 to Delta.
Earlier this month, Judge Boom sentenced Marshall Holbrook for his role in the same conspiracy. Marshall Holbrook was sentenced to four months imprisonment and six months of home detention, followed by 18 months of supervised release. He was ordered to pay Delta $239,642 in restitution.
Upon his release from prison, Mark Holbrook will be under the supervision of the U.S. Probation Office two and a half years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Michael E. Stansbury, Special Agent in Charge, FBI Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. Assistant U.S. Attorney Will Moynahan prosecuted the case on behalf of the United States.
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Lafayette Parish Couple Charged with Drug TraffickingRead the Press Release
NEW ORLEANS, LOUISIANA – TERRY REED, age 54, and CHASSIDY MENARD, age 38, a couple from Lafayette Parish, were charged on May 9, 2024, in a four-count indictment by a federal grand Jury. REED was charged with possession with intent to distribute fifty grams or more of methamphetamine, a Schedule II controlled substance, its salts, isomers, and salts of its isomers, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A); felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1); and possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c). MENARD was charged with simple possession of heroin, in violation of 21 U.S.C. § 844(a), announced U.S. Attorney Duane A. Evans.
If convicted of the drug count, REED faces a mandatory minimum term of imprisonment of 10 years, up to life imprisonment, a fine of up to $10,000,000, at least 5 years of supervised release, and a $100 mandatory special assessment fee. If convicted of felon in possession of a firearm, REED faces a term of imprisonment up to 15 years, a fine of up to $250,000, up to 3 years of supervised release, and a $100 mandatory special assessment fee. If convicted of possession of a firearm in furtherance of a drug trafficking crime, REED also faces a consecutive mandatory minimum term of imprisonment of 5 years, up to life imprisonment, a fine of up to $250,000, up to 5 years of supervised release, and a $100 mandatory special assessment fee. MENARD faces imprisonment up to 1 year, and a minimum fine of $1,000. If convicted, REED shall pay a $100 mandatory special assessment fee for each count. If convicted, MENARD must pay mandatory special assessment fee of $25.
According to the filed indictment, on or about February 3, 2024, REED intentionally possessed with the intent to distribute (50) grams or more of methamphetamines, possessed a firearm, a Ruger Model LC9, nine-millimetre pistol despite being previously convicted of a felony which prohibits possession of firearm. REED allegedly used the illegally possessed firearm in furtherance of a drug trafficking crime. Finally, on February 3, 2024, MENARD allegedly intentionally possessed heroin.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the St. John the Baptist Parish Sheriff’s Office and the Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney Lauren Sarver of the Narcotics Unit.
Justice Department and Stanford University to Cohost Workshop “Promoting Competition in Artificial Intelligence”Read the Press Release
The Justice Department and Stanford University will hold a public workshop on May 30 to discuss the state of competition across the Artificial Intelligence (AI) technology industry from the chip to the app.
“The Antitrust Division is excited to partner with Stanford University on this workshop to learn from stakeholders at various levels of the AI stack who are all adapting to the fast-paced developments in AI,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We look forward to hearing about how competition is developing, bottlenecks and other challenges established firms and new entrants are facing and how AI is affecting the authors, musicians, artists and other content creators that drive creativity and innovation in our economy.”
The Justice Department’s Antitrust Division, Stanford Graduate School of Business and Stanford Institute for Economic Policy Research will cohost the free full-day workshop to discuss competition and AI industry structure, including competition in AI models, semiconductors, the cloud and AI applications. The workshop will be livestreamed from 9 a.m. PT to 6:00 p.m. PT. A recording of the workshop will be available on Stanford’s event page after the workshop. An agenda and a list of speakers will be available in the near future on the Antitrust Division’s event page and Stanford’s event page. Members of the public should register on Stanford’s event page and members of the press should send a copy of their registration confirmation to [email protected] on their registration email.
In a series of panels, presentations and remarks, government and industry representatives, academics from both law and business, content creators, inventors and other tech industry stakeholders will explore how competition at one level of the AI stack affects other AI technologies, how standards and accountability systems can be designed to promote competition and the challenges AI poses to content creators. The workshop also will explore how competition affects the funding decisions of investors and the practical considerations that investors face when evaluating whether to invest in startups.
The Justice Department invites comments from the public on the topics covered by this workshop. Interested parties may submit public comments online now through July 15 at [email protected].
Justice Department Secures Landmark Agreement with City of Anoka, Minnesota, to End Disability Discrimination in “Crime-Free” Housing ProgramRead the Press Release
The Justice Department announced today that it filed a complaint and proposed consent decree to resolve allegations that the city of Anoka, Minnesota, violated the Americans with Disabilities Act (ADA) and the Fair Housing Act by denying tenants with mental health disabilities an equal opportunity to receive emergency assistance.
Under Anoka’s rental licensing and “crime free” housing ordinance, the city can penalize landlords for “nuisance calls” to their properties. Nuisance calls include disorderly conduct and “unfounded” calls to the police. The department previously found that because of the nuisance ordinance, when tenants with mental health disabilities and those associated with them (like their families or landlords) request or receive emergency assistance, they risk eviction, fines or loss of a rental license.
“So-called ‘crime-free’ ordinances are often fueled by discriminatory objectives, and have the effect of destabilizing communities and promoting fear intended to drive people from their homes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Anoka’s so-called ‘crime-free’ housing program does not protect public safety but rather risks lives by discouraging people with disabilities and their loved ones from calling for help when needed most. No person should feel discouraged from seeking help during a mental health crisis. The Justice Department is committed to contesting discriminatory ‘crime free’ ordinances and programs that block, discourage or penalize people for simply accessing emergency services.”
For years, the city also sent weekly reports to landlords detailing calls for emergency service from all rental properties. These reports often revealed personal and sensitive information about residents’ mental health disabilities, such as their diagnoses, medications or even suicide attempts. The city used these reports to notify landlords of potential nuisance calls and encourage landlords to evict tenants.
The proposed consent decree resolves the department’s allegations that the city, through its “crime-free” housing program, discouraged and prevented tenants with mental health disabilities and those associated with them from seeking emergency assistance, including during medical or mental health crises.
Under the proposed consent decree, which must be approved by the U.S. District Court for the District of Minnesota, the city has agreed to pay a total of $175,000 to compensate individuals harmed by the program; end its practice of publicizing the disability, medical and health information of individuals with mental health disabilities; adopt non-discrimination policies and complaint procedures; notify landlords, property owners and tenants of changes to the program; designate an ADA coordinator; train staff and provide reports to the department during a monitoring period.
Individuals who believe they were harmed by the city’s “crime-free” housing program may be entitled to compensation under the settlement fund and should contact the Justice Department at [email protected] or by calling the toll-free number 888-473-3940.
In late 2022, the department also settled a lawsuit against the City of Hesperia, California, and the San Bernardino County Sheriff’s Department alleging that their implementation of a “crime-free” program and ordinance discriminated on the basis of race and national origin in violation of the Fair Housing Act and Title VI of the Civil Rights Act of 1964. Black renters were almost four times more likely, and Hispanic renters 29% more likely, to be evicted under Hesperia’s program than white renters.
For more information on the Civil Rights Division and the civil rights laws it enforces, please visit www.justice.gov/crt. Individuals may submit a report of discrimination online, call 833-591-0291 to report housing discrimination or call 800-514-0301 (TTY 1-833-610-1264) to report disability discrimination and to reach the department’s ADA Information Line.
Justice Department Files Lawsuit Against the State of Oklahoma Regarding Unconstitutional State Immigration LawRead the Press Release
The Justice Department today filed suit against the State of Oklahoma to challenge House Bill 4156 (HB 4156) under the U.S. Constitution’s Supremacy Clause and Foreign Commerce Clause. The Constitution assigns the federal government the authority to regulate immigration and manage our international borders. Pursuant to this authority, Congress has established a comprehensive immigration framework governing noncitizens’ entry, reentry and presence. Because HB 4156 is preempted by federal law and violates the U.S. Constitution, the Justice Department seeks a declaration that HB 4156 is invalid and an order enjoining the state from enforcing the law.
“Oklahoma cannot disregard the U.S. Constitution and settled Supreme Court precedent,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We have brought this action to ensure that Oklahoma adheres to the Constitution and the framework adopted by Congress for regulation of immigration.”
As outlined in the complaint, Oklahoma’s law would create new state crimes to regulate noncitizens’ entry and reentry into and presence in, the United States, with charges ranging from a misdemeanor to a felony. In particular, HB 4156 requires noncitizens convicted of violating its provisions to leave the State, effectively granting Oklahoma the independent authority to exile noncitizens from the State and permitting a patchwork of state immigration schemes. The Supreme Court recognized in Arizona v. United States, 567 U.S. 387 (2012), however, that the authority to admit noncitizens and to determine their status in the United States is a core responsibility of the federal government. HB 4156 impedes the federal government’s comprehensive immigration scheme and interferes with its conduct of foreign relations.
The suit was filed on behalf of the United States, including the Justice Department, Department of Homeland Security and Department of State.
ComplaintJury Finds Woman Guilty of Kidnapping Her RoommateRead the Press Release
WASHINGTON – Antoinette Gilmore, 28, of Washington, DC was convicted yesterday of kidnapping, after a three-day jury trial before the Honorable Errol Arthur in the Superior Court of the District of Columbia, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD). Sentencing is scheduled for July 23, 2024.
On October 12, 2023, the victim got into an argument on the phone, with his roommate, defendant Gilmore. During the argument, the defendant told the victim she wanted him to move out of her apartment. They agreed that the defendant would pick up the victim from downtown and bring him back to her apartment so that he could remove his belongings. Defendant Gilmore and her cousin went to pick up the victim.
Once inside the car, the defendant instructed her cousin to punch and beat the victim and take his belongings as the defendant drove. The victim tried to get out of the car, but they locked the doors and trapped him from within. At one point, he was able to get the back door open and escape. At the defendant’s direction, her cousin jumped out and chased the victim down, eventually catching him and dragging him by the collar of his shirt back into the defendant’s car. Once they reached their destination, the victim was pulled out of the car where he managed to break free and ran straight to the Sixth District Police substation where he reported the assault to police.
This case was investigated by the Metropolitan Police Department. It was prosecuted and tried by Assistant U.S. Attorneys Sara Hanson and Lauren Miller of the Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia.
Joplin Man Sentenced for $300,000 Fraud SchemesRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for two fraud schemes, totaling nearly $300,000, including fraudulent loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and a so-called “transaction reversal” bank scheme.
Deaviyon Rockett, 22, was sentenced by U.S. District Judge Roseann A. Ketchmark to five years and three months in federal prison without parole. The court also ordered Rockett to pay $260,000 in restitution.
On April 5, 2023, Rockett pleaded guilty to two counts of wire fraud. Rockett admitted that he submitted at least $119,262 in fraudulent Paycheck Protection Program loan applications. Rockett also admitted that he engaged in a $176,007 “transaction reversal” fraud scheme.
PPP Fraud Scheme
The purpose of the CARES Act was to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration to provide Paycheck Protection Program (PPP) loans to small businesses to retain workers and maintain payroll, and make mortgage interest payments, lease payments, and utility payments. Under the PPP, both the principal and interest on those loans were eligible for forgiveness.
Rockett admitted that, from March 26 to May 17, 2021, he submitted six PPP loan applications using the names of other individuals that falsely claimed a business, its employees, and/or the amount of the salaries to be covered through these loans existed. In reality, those representations were entirely false. Rockett then accessed the bank accounts of these individuals, withdrawing much of the money that had been fraudulently received, and used those funds for expenses that were unrelated to and prohibited to be used under the PPP loan program.
“Transaction Reversal” Fraud Scheme
Law enforcement in Neosho and Jasper Counties was contacted in August 2022 by numerous individuals who reported that Rockett had contacted them through various media platforms. Rockett told these individuals that he was part of a business that involved “transaction reversal,” and that if they would give him their bank account information, he would make himself and the victim money by conducting these transactions on their bank account.
Rockett accessed the victims’ bank accounts in order to deposit fraudulent checks written on the bank accounts of Coffeyville Community College and/or Santander Consumer USA. Once the checks were deposited, the bank would credit the account on a preliminary basis. However, those checks were not authorized by either entity and were not honored by either entity.
Rockett immediately withdrew either the amount of the checks or, in some cases, completely emptied the bank account of all funds before the bank reversed the deposits. At least $176,007 in total was fraudulently withdrawn from the bank accounts of fraud victims.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Joplin, Mo., Police Department.
Irmo Man Sentenced to 11 Years in Federal Prison for Fentanyl Distribution and Gun ViolationsRead the Press Release
COLUMBIA, S.C. — Joseph Anthony Johnson, 34, of Irmo, was sentenced to 11 years in federal prison after pleading guilty to distributing fentanyl and for two convictions of felon in possession of a firearm.
On Jan. 24, 2022, according to evidence presented in court, officers with the West Columbia Police Department found Johnson in possession of fentanyl and a loaded .380 caliber handgun with an obliterated serial number. That firearm was stolen, and Johnson was prohibited from possessing any firearm at the time due to multiple prior felony convictions. Johnson had 19 prior convictions, including for assault and battery 3rd degree, methamphetamine distribution, seven drug possessions, an illegal firearm possession, resisting arrest, failure to stop on police command, and financial transaction card theft.
On Feb. 15, 2022, and again on Feb. 24, 2022, while out on bond for the conduct above, Johnson sold heroin and another loaded .380 caliber pistols to an undercover source. Johnson was armed with a firearm in his waistband during one of the drug transactions. On July 22, 2022, when Johnson was arrested for the conduct above, he was again found with heroin and fentanyl.
United States District Judge Mary Geiger Lewis sentenced Johnson to 11 years in federal prison with six years of court-ordered supervision to follow. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Columbia Police Department, the Lexington County Sheriff’s Department, and the South Carolina Law Enforcement Division (SLED). Assistant U.S. Attorney Elliott B. Daniels prosecuted the case.
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Huntington Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Amy Lynn Carter, 40, of Huntington, was sentenced today to six years and 15 days in prison, to be followed by four years of supervised release, for possession with intent to deliver 5 grams or more of methamphetamine.
According to court documents and statements made in court, on January 20, 2021, Carter was a passenger in a vehicle parked at a Barboursville convenience store when a law enforcement officer approached the vehicle. The officer observed drug paraphernalia in plain view within the vehicle. A police K-9 alerted to the presence of controlled substances in the vehicle. Officers searched the vehicle and found 19 grams of a heroin and fentanyl mixture, more than 242 grams of methamphetamine and $10,300. Carter admitted that she possessed the seized methamphetamine and intended to distribute it. Carter further admitted that she intended to buy approximately 8 pounds of methamphetamine in Ohio with the cash found in the vehicle for distribution within the Southern District of West Virginia.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Troy D. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-19.
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Huntington Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Tyson Davis Sr., 45, of Huntington, pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, on June 14, 2023, Davis sold approximately 2.93 grams of fentanyl to a confidential informant while in a parked vehicle in Huntington. Davis admitted to the transaction.
Davis is scheduled to be sentenced on September 3, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff's Office, and the Drug Enforcement Administration (DEA).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Lesley C. Shamblin is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-23.
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Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Quintez Robert Kilgore, also known as “Cortez Robert Jackson,” 28, of Huntington, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on November 6, 2023, law enforcement officers encountered Kilgore on the 200 block of Olive Street in Huntington while searching for a fugitive. Kilgore admitted that he possessed a Glock Model 33 .357-caliber pistol that he placed underneath a nearby vehicle to conceal it as the officers approached him. The officers saw Kilgore’s attempt to hide the firearm and seized it. Kilgore admitted that he also possessed 12.64 grams of cocaine base, also known as “crack,” and 9.78 grams of fentanyl that the officers found and seized. Kilgore further admitted that he intended to distribute the seized controlled substances.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Kilgore knew he was prohibited from possessing a firearm because of his prior felony convictions for possession with intent to distribute a controlled substance in Cabell County Circuit Court on October 12, 2017, and being a person prohibited from possessing firearms in Wayne County Circuit Court on January 8, 2020.
Kilgore is scheduled to be sentenced on September 3, 2024, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service (USMS) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-6.
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Houstonian heads to prison in $1.7M insider trading scheme using wife’s private company informationRead the Press Release
HOUSTON – A 42-year-old man has been sentenced for securities fraud, announced U.S. Attorney Alamdar S. Hamdani.
Tyler Loudon pleaded guilty Feb. 22.
U.S. District Judge Sim Lake has now ordered Loudon to serve 24 months in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, Judge Lake noted a significant sentence of incarceration was required to reflect the seriousness of the offense, promote respect for the law and afford adequate deterrence to this type of criminal conduct.
“Insider trading is rampant, extremely difficult to uncover and adversely affects the integrity of the financial markets and the public perception of the markets,” said Hamdani. “These types of offenses erode the public’s confidence in the integrity of the markets and lead to widespread cynicism that the markets are rigged in favor of a fortunate few. Mr. Loudon was only able to commit this crime because he had an unfair advantage: his spouse was an insider who gave him material nonpublic information. This sentence sends a clear message to those who would take advantage of their access to confidential insider information to personally profit are not above the law.”
“Mr. Loudon took advantage of his and his wife’s ‘work from home’ situation and betrayed his spouse by eavesdropping on her confidential business calls to realize a profit of $1.7M in less than two months,” said Special Agent in Charge Douglas Williams of the FBI Houston field office. “Insider trading cases like this one cause damage to everyday investors, our economy and the public’s trust in the fairness of our financial markets. Fair trading laws and regulations are in place so that anyone who can, and wants to, participate in the stock market does, but on an equal playing field.”
Loudon made $1.7 million in illegal profits from the purchase and sale of stock market shares.
Loudon’s wife was an associate manager in mergers and acquisitions at international oil and gas company. Loudon learned her company was planning to purchase a travel center operator business.
Unbeknownst to his spouse, Loudon used the non-public information about the expected acquisition to purchase 46,450 shares ahead of the public notice.
After the announcement, the travel center’s stock price increased. Loudon then sold his shares for a substantial profit.
Prior to sentencing, Loudon forfeited the $1.7 million in illegal proceeds to the United States.
Loudon will self-surrender to a Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and the Financial Industry Regulatory Authority. Assistant U.S. Attorney Karen M. Lansden prosecuted the case.
Former teacher pleads guilty to possession of child pornographyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Anthony V. Giambrone, 40, of Kenmore, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession of child pornography involving prepubescent minors, which carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in April 2020, Giambrone, a former teacher with Erie One BOCES working at Maryvale Intermediate School, possessed images of child pornography on two separate laptop computers. Giambrone possessed approximately 1,052 images and 381 videos of child pornography, some of which included prepubescent minors.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger.
Sentencing is scheduled for August 27, 2024, at 12:00 p.m. before Judge Arcara.
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Former Program Director at the U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights and Nephew Arrested in Kickback SchemeRead the Press Release
WASHINGTON – Kirk Perry, 59, of Lorain, Ohio, and his nephew Jamarea Grant, 30, of Cleveland, Ohio, were arrested this morning on wire fraud and conspiracy charges filed in U.S. District Court in Washington, D.C., announced U.S. Attorney Matthew M. Graves, and Inspector General Phyllis K. Fong of the U.S. Department of Agriculture Office of Inspector General.
Both defendants are expected to make their initial appearance in the Northern District of Ohio today.
According to the indictment, from August 2015 through November 2022, Perry, a United States Department of Agriculture (USDA) Program Director, arranged for Grant to be hired by two companies under contract with the USDA Office for Civil Rights. Court documents allege that Grant reported directly to Perry, and the two of them conspired to bill the government for work that Grant did not actually perform. Grant is alleged to have received nearly $400,000 for work he did not do, and, in return, kicked back approximately $125,000 to Perry as part of the criminal scheme.
If convicted, each defendant faces a maximum statutory sentence of 20 years in prison for the charged offenses of Money, Property, and Honest Services Wire Fraud, and Conspiracy to Commit Money, Property, and Honest Services Wire Fraud. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided for informational purposes. If convicted, the defendants’ sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the U.S. Department of Agriculture Office of Inspector General, Sensitive Investigations Office (SIO). It is being prosecuted by Assistant U.S. Attorneys Brian P. Kelly and Joshua Rothstein of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by the U.S. Attorney’s Office for the Northern District of Ohio.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Professor Charged with Obstructing Justice by Falsifying RecordsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a Criminal Information charging MATTHEW QUEEN with falsification of records in connection with falsified notes Queen produced to the FBI related to an ongoing federal investigation. QUEEN was arraigned on the Information before U.S. District Judge Lewis Kaplan earlier today.
U.S. Attorney Damian Williams said: “As alleged, Matthew Queen attempted to interfere with a federal grand jury investigation by creating false notes in an attempt to corroborate his own lies. The criminal obstruction charge announced today should exemplify the seriousness of attempts by any individual to manipulate or interfere with a federal investigation.”
FBI Assistant Director in Charge James Smith said: “Matthew Queen, an interim Provost, allegedly failed to inform the FBI of a conspiracy to destroy evidence related to the ongoing investigation of sexual misconduct and instead produced falsified notes to investigators. Queen’s alleged actions deliberately violated a court order and delayed justice for the sexual abuse victims. The FBI will never tolerate those who intentionally lie and mislead our investigation in an attempt to conceal their malicious behavior.”
According to the allegations in the Information filed today in Manhattan federal court and other public statements made in court:[1]
Since approximately 2022, the U.S. Attorney’s Office for the Southern District of New York (“U.S. Attorney’s Office”) and the FBI have been investigating allegations of sexual abuse and misconduct related to a national religious denomination (the “Denomination”) and its affiliated entities, and the alleged cover-up of such allegations by individuals and entities associated with the Denomination. In October 2022, as part of that investigation, a grand jury subpoena was issued to a seminary that is affiliated with the Denomination (the “Seminary). Among other things, the subpoena required the production of all documents in the Seminary’s possession related to allegations of sexual abuse against anyone employed by or associated with the Seminary.
The following month, in November 2022, a Seminary employee (“Employee-1”) received a report alleging that a current Seminary student had committed sexual abuse. Employee-1 immediately notified the campus police at the Seminary. No further action was taken by the Seminary at that time, however, and the allegation was not reported to the U.S. Attorney’s Office.
In January 2023, Employee-1 created a document describing the sexual abuse allegation Employee-1 received in November 2022, and the failure of the Seminary to take action regarding the allegation at that time (the “Document”). On January 26, 2023, Employee-1 met with MATTHEW QUEEN, the then-Interim Provost and professor at the Seminary, and a member of the Seminary’s executive staff (“Employee-2”). During that meeting, and in QUEEN’s presence, Employee-2 directed Employee-1, in sum and substance, to destroy the Document.
In May 2023, the U.S. Attorney’s Office and the FBI interviewed MATTHEW QUEEN in Fort Worth, Texas regarding the January 26, 2023 meeting with Employee-2 and Employee-1. During that interview, QUEEN falsely stated that he had not heard Employee-2 direct Employee-1 to destroy the document. Three days after the interview, QUEEN falsely stated to another Seminary employee (“Employee-3”) that he had just located a notebook in his office containing purportedly contemporaneous notes of the January 26, 2023 meeting. The notes falsely stated that during the January 26, 2023 meeting, Employee-2 and Employee-1 merely discussed providing the Document to a different department at the Seminary, and omitted the fact that Employee-2 had directed Employee-1 to destroy the Document. Queen provided the falsified notes to Employee-2 to produce in response to the grand jury subpoena.
In June 2023, MATTHEW QUEEN provided the U.S. Attorney’s Office with a copy of his notes. On June 20, 2023, QUEEN met again with the U.S. Attorney’s Office and the FBI in New York and produced the original notebook containing his notes. During his second interview, QUEEN initially falsely stated that he had written the notes contemporaneously with the January 26, 2023 meeting, but then during the same meeting, QUEEN falsely stated that he instead had written the notes months later, in April 2023. In truth and in fact, QUEEN had written the notes following his initial May 2023 interview with the U.S. Attorney’s Office and the FBI.
On June 21, 2023, MATTHEW QUEEN testified under oath that he had in fact heard Employee-2 direct Employee-1 to make the Document “go away.”
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QUEEN, 49, of Greensboro, North Carolina, is charged with one count of falsification of records, which carries a maximum sentence of twenty years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative efforts of the FBI. He added that the investigation is ongoing.
The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorney Jacqueline Kelly is in charge of the prosecution.
The charges contained in the Information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Mexican Police Officer Pleads Guilty to Trafficking Meth into U.S.Read the Press Release
ALPINE, Texas – A Mexican national, formerly a Mexican police officer, pleaded guilty in a federal court in Alpine to possession with intent to distribute methamphetamine.
According to court documents, Cesar Alonzo Lopez Ruiz, 34, of Rosales, Mexico, attempted to enter the United States from Mexico at the Presidio Point of Entry. A search revealed 50 packages of methamphetamine hidden inside the gas tank of his vehicle. The total weight of the meth was approximately 27.8 kilograms.
Lopez Ruiz pleaded guilty to one count of possession with intent to distribute methamphetamine. He is scheduled to be sentenced on Aug. 26 and faces a penalty of 10 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
Homeland Security Investigations and Customs and Border Protection are investigating the case.
Assistant U.S. Attorneys Scott Greenbaum and Amy Greenbaum are prosecuting the case.
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Food Suppliers to Pay $395,000 to Resolve Claims of Mislabeled Inspection Dates on Frozen Beef Patties Sold to Federal PrisonsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that four related food supply companies will pay $395,000 to resolve claims that frozen ground beef patties they supplied to the Federal Bureau of Prisons (the BOP) were misleadingly labeled.
The United States contends that, in early 2020, the companies — Prime Food Sales, Inc. of Port Washington, N.Y., Prime Food Sales LLC of Dresher, Pennsylvania, JTP Sales, LLC of Atlanta, Georgia, and JW Sales & Distribution, LLC of Dresher, Pennsylvania — sold 190,000 pounds of the patties to the BOP for distribution to federal prisons nationwide. Though the supply contract with the BOP required that the patties be no more than 6 months old when delivered, re-inspection labels on the product packaging created the false appearance that the patties were younger than six months old at delivery when they were actually older. This non-compliance with the contract’s terms resulted in the companies making false payment claims to the BOP.
The U.S. Attorney’s Office coordinated its investigation with the U.S. Department of Justice’s Office of the Inspector General (DOJ-OIG), which began investigating after the U.S. Department of Agriculture’s Food Safety and Inspection Service detained some of the patties in February 2020. The government’s investigation concluded that, although product labeling misrepresented inspection dates and the patties’ age, product quality and safety were unaffected.
“When supplying food to federal agencies, federal contractors are in a position of public trust and must adhere to contract specifications, especially those like product-age requirements that may impact food safety or quality,” said U.S. Attorney Romero. “Today’s resolution should send a message to firms supplying food to the Federal Bureau of Prisons and other federal agencies that we will hold these contractors responsible for violations of law, including when they present claims for payment while disregarding contract terms. We will continue to work with law enforcement partners to identify federal contractors and subcontractors who risk the health or safety of consumers and to hold them accountable.”
“Contractors that are selected and paid by the government to supply food to inmates are expected to comply with contractual and other standards. When they provide mislabeled products, as the companies allegedly did here, the government is deprived of what it bargained for and the health and safety of inmates is potentially placed at risk,” said Andrew B. Hartwell, Special Agent in Charge of DOJ OIG’s Fraud Detection Office. “The DOJ OIG is committed to rooting out this type of contract fraud.”
The settlement resolves civil claims under the False Claims Act that are allegations only. There has been no determination of liability, and the companies did not admit liability. They generally cooperated with the U.S. Attorney’s Office’s investigation.
The matter was handled in the U.S. Attorney’s Office by Assistant U.S. Attorney Gerald B. Sullivan and Auditor Dawn Wiggins, with support from the Department of Justice Office of Inspector General and the U.S. Department of Agriculture Food Safety and Inspection Service.
The Department of Justice’s investigation was part of its enforcement focus on combatting federal procurement fraud. The False Claims Act is one of the most powerful tools in this enforcement effort. Although there was no whistleblower in this matter, the False Claims Act includes whistleblower provisions allowing a private party to file an action on behalf of the United States and to receive a portion of any recovery. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement in connection with Federal Bureau of Prison contracts or against other Department of Justice components can be reported at https://oig.justice.gov/hotline.
Florida Man Arrested for Embezzling from EmployerRead the Press Release
BOSTON – A Florida man has been arrested and charged for allegedly embezzling approximately $4 million from his employer, a Florida-based portfolio company owned by a Massachusetts investment firm.
Paul Schnitzer, 51, of Clermont, Fla., was charged with one count of wire fraud. Schnitzer was arrested this morning and will make an initial appearance in the Middle District of Florida tomorrow. He will appear in federal court in Boston at a later date.
According to the charging document, Schnitzer worked as the finance director for the portfolio company. It is alleged that between January 2023 and May 2024, Schnitzer made over 90 transfers, each of tens of thousands of dollars disguised as “equity distributions,” from the company’s operating account into his personal account. To hide these transfers, Schnitzer allegedly provided falsified financial reports with inflated cash balances for the company to the investment firm. It is also alleged that Schnitzer secretly used a line of credit to replenish the company’s operating account after he had stolen from it.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Florida Man Admits Defrauding Zelle UsersRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that KADER GAHMAAL BIWAKI EDMOND, 24, of Miami, Florida, pleaded guilty today in New Haven federal court to an offense stemming from his role in a scheme that defrauded individuals who use the electronic payments system Zelle.
According to court documents and statements made in court, law enforcement has been investigating crimes against users of digital payment applications, including Zelle. Typically, a scheme victim receives a fraudulent text message, purporting to be from the victim’s bank, asking the victim to confirm whether a Zelle transaction was authorized. When the victim denies the transaction, the victim receives a response that a bank representative will be in contact. The victim then receives a phone call from an individual impersonating a bank representative, who informs the victim that an unauthorized transaction has occurred and that they need to work together to reverse the transaction. By this point, without the victim’s knowledge, the fraudsters have linked the victim’s actual phone number or email address via Zelle to a bank account that does not belong to the victim. The victim is then instructed to “reverse” the fictional fraudulent transaction by making a Zelle payment to what they believe is their own account, but is, in fact, an account controlled by the fraudsters.
From approximately February 2021 through August 2023, Edmond and others defrauded numerous victims, including victims in Connecticut, of a total of more than $250,000 through this Zelle scheme and other fraud schemes.
Edmond was arrested on August 31, 2023.
Edmond pleaded guilty to conspiracy to commit bank fraud, an offense that carries a maximum term of imprisonment of 30 years. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea on August 14 in Hartford.
Edmond is released on a $100,000 bond pending sentencing.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Edward Chang.
Victims can report Zelle fraud to their bank or credit union, or to the Internet Crime Complaint Center (IC3), which is run by the FBI and serves as the country’s hub for reporting cybercrime, at www.ic3.gov.
Additional information about digital payment application schemes is available at https://www.ic3.gov/Media/Y2022/PSA220414.
Flight Attendant and Two Bank Employees Charged in Federal Indictment of Alleged Mexico-Based Drug Trafficking OrganizationRead the Press Release
CHICAGO — A flight attendant and two bank employees in Indiana have been charged in a federal indictment that accuses a Mexico-based drug trafficking organization of moving thousands of kilograms of cocaine into the United States and laundering tens of millions of dollars in proceeds.
A superseding indictment unsealed Friday in U.S. District Court in Chicago charges flight attendant GLENIS ZAPATA, 34, of Lafayette, Ind., with assisting the traffickers in the transportation of drug proceeds on commercial airline flights. Glenis Zapata possessed a “Known Crew Member” badge and used her authority to help the traffickers move cash drug proceeds from the Midwest to the southern part of the U.S. and into Mexico, the indictment states. The traffickers also allegedly used other means to ship the money, including semi-trailer trucks and a private charter airplane that was seized by federal authorities in 2021 at the Gary/Chicago International Airport in Gary, Ind.
The two bank employees – ILENIS ZAPATA, 33, of Lafayette, Ind., and GEORGINA BANUELOS, 39, of Lafayette, Ind. – helped launder the drug proceeds by exchanging lower denominated bills for higher denominated bills, the indictment states. Ilenis Zapata and Banuelos, who worked together at a bank in Lafayette, Ind., also knowingly and willfully failed to file currency reports for the transactions, as required under federal law, the indictment states.
The superseding indictment added Glenis Zapata, Ilenis Zapata, and Banuelos as defendants and renewed conspiracy and money laundering charges previously filed against 15 others, including the alleged leader of the drug trafficking organization, OSWALDO ESPINOSA, 41, of Mexico; the organization’s primary manager, JORGE BORBON-OCHOA, 46, of Mexico; and the head of its Chicago operations, RICARDO TELLO, 37, of Mission, Texas. Espinosa’s organization allegedly transported the cocaine in wholesale quantities from Mexico to various U.S. cities, including Chicago, from 2018 to 2023. The traffickers used warehouses, garages, and stash houses in Chicago to receive and store the cocaine and cash, the indictment states.
Arraignments on the superseding charges have not yet been scheduled.
The superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration, LaFonda Sutton-Burke, Director of the Chicago Field Office of U.S. Customs and Border Protection, Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office. Substantial assistance was provided by the Federal Deposit Insurance Corporation’s Office of Inspector General and the Lafayette, Ind. Police Department. The government is represented by Assistant U.S. Attorneys Andrew Erskine, Ashley Chung, and Adam Rosenbloom.
The case is part of an Organized Crime Drug Enforcement Task Forces investigation. OCDETF identifies, disrupts, and dismantles drug traffickers and other criminal offenders 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 against criminal networks.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Espinosa et al indictmentFinal two defendants, a mother and daughter, were sentenced to prison for their involvement in elder fraud schemeRead the Press Release
MIAMI – Five people, to include a mother and her daughter, were sentenced to federal prison for their involvement in a South Florida elder fraud scheme.
Aisladys Diaz, 45, of Miami, Florida was a private duty health aide who worked with a home health aide agency. The agency provided home health aides to residents at senior communities in Miami-Dade County. From May to June 2020, Aisladys Diaz stole the personal identifiable information of two elderly residents under her care. Aisladys Diaz then shared the information with her daughter, Ailensy Buron Diaz, 29, also of Miami, Berto Omar Rodriguez Fonseca, a finance manager at a car dealership in Miami Lakes, and husband and wife Yandys Diaz, 30, and Yainelis Perez Diaz, 34, both of Hialeah, who used the information to purchase numerous new and used vehicles at car dealerships, at a cost totaling over $500,000, and apply for credit cards, an Economic Disaster Injury Disaster Loan (EIDL), and a Small Business Administration (SBA) loan under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
A jury previously convicted Aisladys Diaz and Ailensy Buron Diaz of conspiracy to commit access device fraud, use of an unauthorized access device, conspiracy to commit wire fraud, aggravated identity theft, and wire fraud. On May 3, Aisladys Diaz and Ailensy Buron Diaz were sentenced to 52 months and 48 months in prison, respectively, to be followed by three years of supervised release. A restitution hearing is scheduled for August 1.
Rodriguez Fonseca previously pleaded guilty to conspiracy to commit access device fraud, aggravated identity theft, and conspiracy to commit wire fraud. Yainelis Perez Diaz and Yandys Diaz each pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft. On Dec. 20, 2023, Yainelis Perez Diaz, Yandys Diaz, and Rodriguez Fonseca were sentenced to 30 months, 36 months, and 40 months in prison, respectively, to be followed by three years of supervised release.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Scott H. Moffit of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Cybercrime Investigations Division, made the announcement.
FBI Miami and TIGTA’s Cybercrime Investigations Division investigated the case. Assistant U.S. Attorney Robert Moore prosecuted the case.
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: 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. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints.
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 www.justice.gov/civil/consumer-protection-branch. The Justice Department provides information about a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which are available at www.ovc.gov.
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 22-cr-20354.
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Federal Grand Jury Indicts Three Men in Connection with Violent Robberies of Chicago BusinessesRead the Press Release
CHICAGO — A federal grand jury has indicted three men for allegedly conspiring to violently rob several liquor stores and convenience stores in Chicago.
Charged with federal conspiracy and firearm offenses are ARDARIES HARRIS, 26, of Chicago, JORDAN FOX, 24, of Chicago, and ROOSEVELT VEAL, 26, of Rockford, Ill., and formerly of Chicago. All three defendants have been ordered detained in federal custody pending trial.
According to an indictment returned Monday in U.S. District Court in Chicago, the robbers wore masks and brandished firearms in five heists in November 2023 and January 2024:
- Nov. 24, 2023: Veal and a co-conspirator robbed Super Saving Food, located in the 4400 block of West Belmont Avenue in Chicago.
- Jan. 13, 2024: Harris, Fox, and a co-conspirator robbed Buchanas Food & Liquor, located in the 1800 block of West 47th Street in Chicago.
- Jan. 15, 2024: Harris, Fox, Veal, and a co-conspirator robbed Mr. P Beverage Depot, located in the 2000 block of West Division Street in Chicago.
- Jan. 15, 2024: Harris, Fox, Veal, and a co-conspirator robbed Before You Go Liquor, located in the 1900 block of West Fullerton Avenue in Chicago.
- Jan. 15, 2024: Harris, Fox, Veal, and a co-conspirator robbed Clybourn Market, located in the 2800 block of North Clybourn Avenue in Chicago.
In addition to the five robberies, the indictment alleges that the conspiracy continued until May 4, 2024, and involved additional heists, including robberies of bars in Chicago. The federal investigation remains ongoing.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by Homeland Security Investigations in Chicago and the Illinois State Police. The government is represented by Assistant U.S. Attorneys Emily C.R. Vermylen and Stephanie Stern.
The investigation was conducted in coordination with ATF’s Crime Gun Intelligence Center of Chicago. The CGIC is a centralized law enforcement hub that focuses exclusively on investigating and preventing gun violence in Chicago and throughout northern Illinois. The CGIC is an interagency collaboration that brings together - under one roof - federal, state, and local law enforcement officers, prosecutors, and intelligence analysts to move quickly to investigate and prosecute violent crimes.
Holding firearm offenders accountable through federal prosecution is the centerpiece of Project Safe Neighborhoods, a nationwide Department of Justice initiative that brings together law enforcement officials, prosecutors, community leaders, and other stakeholders to develop comprehensive solutions to the most pressing violent crime problems. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Harris et al indictmentFederal Court Permanently Shuts Down Connecticut Tax Preparer and BusinessesRead the Press Release
The U.S. District Court for the District of Connecticut issued a permanent injunction today against a Connecticut tax return preparer, Juan Carlos Frias, and his businesses, USA Tax LLC, Multi Latin Services LLC and Connecticut Tax and Services Inc., permanently barring them from preparing federal tax returns for others.
According to Justice Department’s complaint, from 2017 through 2021, Frias and his companies prepared over 10,000 tax returns for customers. The complaint alleges that, during those years, Frias and his companies displayed a pattern of filing tax returns that understated customers’ liabilities and inflated their refunds by falsifying business expenses, reporting false filing statuses and qualifying children or dependents, claiming false education and residential energy credits and fabricating erroneous itemized deductions, including medical and dental expenses, charitable deductions and impairment-related work expenses.
According to the IRS, anyone who is paid to prepare or assists in preparing federal tax returns is legally required to have a valid Personal Tax Identification Number (PTIN) and paid preparers must sign and include their PTIN on the return. Not signing the return, commonly known as “ghost preparation” is often a red flag that a preparer is attempting to avoid detection by the IRS. The United States alleges that Frias acted as a ghost preparer.
According to the court’s order, Frias and his businesses consented to entry of the injunction, which permits the United States is permitted to conduct post-judgment discovery to monitor compliance with the injunction. The order requires that they (1) send notice of the injunction to each person for whom Frias and his companies prepared federal tax returns, amended tax returns or claims for refund between Jan. 1, 2018, to the present and (2) post a paper copy of the injunction at all physical locations where they conducted business and an electronic copy of the injunction on any business website, social media site or social media profile they maintain and create over the next five years.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid ghost preparers and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Frias Permanent Injunction Order.pdfEl Paso Man Arrested for Firearm Trafficking, Dealing Without a LicenseRead the Press Release
EL PASO, Texas – An El Paso man was arrested in El Paso for alleged crimes related to trafficking and selling firearms without a license.
According to court documents, Jesse Garay, 26, allegedly purchased numerous firearms between Sept. 7, 2022 and March 24, 2023, answering on each Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 that he was “the actual transferee/buyer of the firearm(s) listed on this form.” Private messages obtained in a search warrant allegedly revealed that Garay sold the firearms to other individuals, including a minor. Additionally, at least three of the firearms purchased by Garay are alleged to have been recovered at either crime scenes or in Mexico.
Garay is charged with one count of trafficking in firearms, one count of dealing firearms without a license, and two counts of false statement during a firearm acquisition. If convicted, he faces a maximum penalty of 15 years in prison for the trafficking charge, five years for the dealing without a license charge, and 10 years for each false statement charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jeffrey C. Boshek II for the ATF Dallas Field Division made the announcement.
ATF is investigating the case.
Assistant U.S. Attorney Mathew Engelbaum is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Disbarred Attorney Sentenced to Nine Years in Prison for COVID-19 Relief Loan Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DOUGLAS RAYMOND ARNTSEN was sentenced to nine years in prison for his scheme to defraud the U.S. Small Business Administration (“SBA”) of more than $1.4 million in government-funded loans designed to provide relief to small businesses during the COVID-19 pandemic. ARTSEN previously pled guilty before U.S. District Judge P. Kevin Castel, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Douglas Raymond Arntsen, a disbarred attorney and recidivist fraudster, took advantage of a national emergency to line his pockets, masterminding a scheme to defraud the government out of more than $1.4 million by submitting fraudulent COVID-19 relief loan applications. Thanks to the hard work of this Office and our law enforcement partners, Arntsen is being held accountable for his fraud.”
According to the Indictment, other public filings, and statements made in court:
Between about June 2020 through about August 2020, DOUGLAS RAYMOND ARNTSEN orchestrated a scheme to defraud the SBA by submitting fraudulent loan applications through the Economic Injury Disaster Loan (“EIDL”) Program. In doing so, ARNTSEN recruited multiple co-conspirators. ARNTSEN promised potential co-conspirators a way out of their difficult financial circumstances. Certain of those co-conspirators trusted ARNTSEN because they thought he was an attorney. In reality, ARNTSEN had been disbarred.
ARNTSEN asked his co-conspirators to give him their personal information, including social security and driver’s license numbers, and then used this information to submit fraudulent loan applications to the EIDL program. The applications submitted by ARNTSEN falsely claimed that the co-conspirators owned businesses that had substantial revenue. Often, the co-conspirators named as owners of the businesses, in fact, had no legitimate connection to the businesses at all. After the loan applications were submitted, ARNTSEN directed his co-conspirators to lie to the SBA during the loan diligence process.
ARNTSEN also directed his co-conspirators to recruit additional participants to his fraudulent scheme. After one co-conspirator had obtained a fraudulent loan, ARNTSEN directed him, in sum and substance, to “[g]et me one more warm body.” The co-conspirator proceeded to give ARNTSEN the personal information of a relative, which was then used to obtain another fraudulent loan.
In total, ARNTSEN and his co-conspirators obtained at least approximately $1.4 million in fraudulent loans and attempted to obtain hundreds of thousands of dollars of additional loans that the SBA declined to fund. After one fraudulent loan was approved by the SBA, ARNTSEN texted a co-conspirator, in sum and substance, “Need how you want your bank checks. Your chariot has arrived this morning.”
Prior to the instant offense, in 2012, ARNTSEN, then a barred attorney working for Crowell & Moring, was convicted and sentenced to four to 12 years in prison for engaging in a multi-year scheme to steal more than $10 million in clients’ money from escrow accounts.
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In addition to his prison term, ARNTSEN, 45, of Staten Island, New York, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,430,200 and to forfeit the same amount.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and additionally thanked the Suffolk County District Attorney’s Office for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Sowlati is in charge of the prosecution.
Dark Web drug vendor and clandestine lab manufacturer sentenced to prison for trafficking in methamphetamine and fentanylRead the Press Release
MIAMI – On May 17, an Orange County, California, resident, Tenzin Orgil, 24, was sentenced to 168 months in federal prison for participating in a drug trafficking enterprise that included the sale of methamphetamine and fentanyl on the dark web, as well as the manufacture of ecstasy (also known as MDMA) and methamphetamine in clandestine laboratories. Orgil pleaded guilty in July 2023 and was sentenced by U.S. District Judge Kathleen M. Williams in the Southern District of Florida.
According to the Drug Enforcement Administration’s (DEA) National Drug Threat Assessment synthetic drugs have resulted in the most dangerous and deadly drug crisis the United States has ever faced. These synthetic drugs, such as fentanyl and methamphetamine, are responsible for nearly all of the fatal drug poisonings in our nation. Fentanyl killed 38,000 Americans in the first six months of 2023 alone. Just one fentanyl pill can kill. Two milligrams of fentanyl is considered a potentially fatal dose and laboratory testing indicates seven out of 10 pills seized by the DEA contain a lethal dose of fentanyl.
Since at least 2020, until the time of his arrest, Orgil worked under the dark web vendor monikers iEUROPA, iUSA, iAMERICA, UNITEDAIRLINES and SVR667, to distribute large amounts of narcotics via various dark web marketplaces, as well as the peer-to-peer encrypted chat platform, Wickr. Orgil was based in California and sold cocaine, MDMA, heroin, fentanyl, and methamphetamine via the U.S. mail system to customers all over the United States, to include in South Florida. Between 2020 and 2021, through undercover purchases from Orgil via the dark web or Wickr, law enforcement officers in South Florida seized 2.54 grams of fentanyl, in the form of counterfeit oxycodone pills, and 4.965 kilograms of methamphetamine, which was 100% pure. Orgil was also a major manufacturer of MDMA and methamphetamine. He operated numerous clandestine laboratories in California.
Photo of one of Orgil’s dark web vendor pages, included in the Government’s Reply to Defendant’s Response to Motion for Revocation of Magistrate Court’s Order of Bond (DE 15-1)
On Dec. 23, 2022, Irvine Police Department officers in California stopped Orgil while he was driving a vehicle. During a search of his vehicle, Orgil had in his possession several precursor chemicals, obtained from Chinese chemical companies, that are used to produce MDMA, as well as two cellphones. A search of these phones found photos of narcotics, as well as evidence of Orgil’s dark web vendor moniker name of “iBULK” and his access of darknet marketplaces. The search also revealed photos of clandestine laboratories and screenshots of text messages explaining how to manufacture illicit narcotics. Orgil’s phones also revealed that he was in communication with several Chinese chemical manufacturing companies in order to purchase precursor chemicals.
Photo of one of Orgil’s clandestine laboratories, included in the Government’s Response to the Defendant’s Sentencing Memorandum (DE 67).
Photo of Orgil’s text communications regarding drug manufacturing, included in DE 67
On Jan. 18, 2023, law enforcement agents arrested Orgil and a search warrant was executed at his residence in California. A search of his residence revealed a gun with a loaded magazine, numerous fake identification cards, a recipe for manufacturing methamphetamine, and a computer. A search of his computer revealed photographs of counterfeit blue M30/oxycodone pills with a Dark Market/United Airlines label, bags of methamphetamine with an iUSA label and cocaine with a SVR667 label. Additionally, copies of the mailing labels for the packages sent in the undercover purchases were preserved on Orgil’s computer.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, Special Agent in Charge Jeffery B. Veltri of the FBI, Miami Field Office, Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS), Miami Division, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami announced the sentence imposed.
DEA Miami Field Division’s Counternarcotic Cyber Investigations Task Force, FBI Miami, USPIS Miami, IRS-CI Miami Field Office and HSI Miami investigated the case with assistance from DEA San Jose, United States Postal Inspection Service San Jose, DEA New England, Massachusetts State Police - Gaming Enforcement Unit, DEA Orange County, DEA Omaha, DEA Forth Worth, Irvine Police Department, and the Costa Mesa Police Department. Assistant U.S. Attorney Monique Botero prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff handled asset forfeiture.
The indictment is a result of Organized Crime Drug Enforcement Task Force (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20018.
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Court Orders Durham Practitioner to Pay $500,000 for Writing Unauthorized Prescriptions for Controlled SubstancesRead the Press Release
GREENSBORO - United States Attorney for the Middle District of North Carolina Sandra J. Hairston announced today that a federal court entered a consent judgment ordering Sharon Raynes Halliday (Halliday) and her practice, RAPHA Healthcare Services, LLC (RAPHA), located in Durham, to pay $500,000 in civil penalties to resolve allegations that she violated the Controlled Substances Act and the False Claims Act by writing invalid prescriptions and by causing Medicare and North Carolina Medicaid to pay for those prescriptions.
The consent judgment resolves a complaint filed by the United States and the State of North Carolina on July 17, 2022, alleging that Halliday wrote prescriptions for controlled substances without authorization, and, through RAPHA, caused Medicare and Medicaid to pay for these unauthorized and invalid prescriptions. The complaint alleges that Halliday obtained a medical school faculty license, also known as a faculty limited license, under false pretenses from Duke University Medical School. A faculty limited license is intended to allow medical schools in North Carolina to benefit from expertise or specialized skills of physicians who are not otherwise eligible for full licensure in North Carolina. The faculty limited license only allows physicians holding such license to practice to the extent authorized by its sponsoring university. According to the complaint, Duke University never authorized Halliday to write prescriptions, nor was Halliday authorized to open RAPHA, which had multiple locations.
Halliday and her practice, RAPHA, agreed to pay the $500,000 civil penalty and be bound by the terms of the consent judgment.
“It is essential to the health and safety of all citizens that medical practitioners only write prescriptions for controlled substances when authorized and legitimate,” said U.S. Attorney Hairston. “The laws surrounding prescriptions exist to ensure the legitimacy and safety of every controlled substance prescription, and our office will continue to hold responsible those violating these laws.”
The resolutions obtained in this matter were the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of North Carolina, the U.S. Drug Enforcement Administration, and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. The United States was represented by Assistant U.S. Attorney Rebecca Mayer.
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Convicted Sex Offender Sentenced to Federal Prison for Illegal Reentry to the United StatesRead the Press Release
PROVIDENCE, RI – A convicted sex offender deported to his native Guatemala from the United States in April 2019 following his conviction and incarceration on a Rhode Island state charge of indecent solicitation of a minor was sentenced today to twelve months and one day in federal prison for illegally reentering the United States, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, Carlos Gregorio Santos, 52, was arrested by Providence Police on September 29, 2023, following an investigation into an alleged altercation between himself and another man over a dispute about wages. At the time of his arrest, in an apparent effort to shield his true identity, the defendant provided police with a false name and false date of birth. The FBI later confirmed his real identity.
Santos pleaded guilty in U.S. District Court on February 15, 2024, to a charge of illegal reentry after removal. He was sentenced today by U.S. District Court Judge Mary S. McElroy to twelve months and one day in prison to be followed by one year of federal supervised release. Santos faces deportation upon completion of his current term of incarceration.
The case was prosecuted by Assistant U.S. Attorney Julie M. White.
The matter was investigated by U.S. Immigration and Custom Enforcement, with the assistance of the FBI and Providence Police Department.
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Companies that Own and Operate Oil Tanker Plead Guilty to Environmental CrimesRead the Press Release
Two related companies that operated the motor tanker PS Dream – Prive Overseas Marine LLC and Prive Shipping Denizcilik Ticaret – pleaded guilty today to conspiracy, knowingly violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice related to the falsification of the tanker’s Oil Record Book, which is a required log.
Exhibit 1 in U.S. v. Prive Overseas Marine, LLC and Prive Shipping Denizcilik Ticaret, A.S., case number 24-cr-00074. Credit: USCG.The guilty pleas were entered in federal court in New Orleans before Chief U.S. District Court Judge Nannette Jolivette Brown. If the court approves the plea agreement, the companies will be fined a total of $2 million and serve four years of probation. Separate charges have been filed against Captain Abdurrahman Korkmaz, a Turkish national who was the ship’s master.
The criminal case stems from the report of a crew member who, on Jan. 11, 2023, contacted the Coast Guard in New Orleans, which was the next port-of-call, and shared a video showing oil being pumped overboard and trailing behind the tanker. When the ship arrived in New Orleans two weeks later, this individual and another crew member blew the whistle and provided evidence to the Coast Guard. Video and photographic images were filed in court today by the prosecutors.
“Deliberate pollution from ships, intentional falsification of records and obstruction of justice are serious environmental crimes that will be vigorously prosecuted to the full extent of the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Maritime laws regulating pollution from ships are intended to ensure that ocean waters are not used as a dumping ground.”
“This case involved deceit and willful pollution, and this prosecution is intended to hold both the corporations and individuals accountable,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Criminal prosecutions are needed to deter deliberate efforts to circumvent our Nation’s anti-pollution laws. Importantly, $500,000 of the criminal penalty will go toward environmental protection of the marine environment in our area.”
“Today's outcome sends a powerful message: those who falsify logs and take deliberate actions to conceal pollution will face significant consequences,” said Captain Greg Callaghan, Deputy Commander of U.S. Coast Guard (USCG) Sector New Orleans. “The Coast Guard and our partners remain steadfast in our shared commitment to safeguarding our waters and holding accountable those who threaten our marine ecosystems. We encourage individuals to continue reporting any suspicious activities, as each report plays a crucial role in protecting the marine environment."
“It is long past time for the maritime industry to meet its obligations under international law and stop illegal pollution from ships,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Illegal ocean dumping and falsifying records to conceal those violations will not be tolerated by EPA and our federal law enforcement partners.”
The falsified logs, presented to the Coast Guard during its inspection, were intended to conceal the fact that the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with MARPOL Annex I, an international treaty regulating oil pollution from ships. According to court documents, the ship’s master ordered crew members to pump overboard from the residual oil tank, which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew. Senior managers at Prive Shipping were aware that the oil-contaminated waste remained in the tank and were informed by the ship’s master that it had been dumped overboard.
The proposed $2 million criminal penalty includes $500,000 in organizational community service payments that will fund various maritime environmental projects in the Eastern District of Louisiana. Those projects will be managed by the congressionally established National Fish & Wildlife Foundation. The court also has authority to award up to $500,000, half of the APPS portion of the fine, to the whistleblowers that provided evidence leading to conviction.
Prive Overseas Marine is based in Dubai and Prive Shipping is based in Turkey. The corporations were charged with four felonies: conspiracy, an APPS violation and two counts of obstruction of justice. Captain Korkmaz was charged with two counts: a violation of APPS and obstructing the Coast Guard’s inspection of the ship.
The Coast Guard Investigative Service and the EPA Criminal Investigations Division investigated the case with assistance from USCG Sector New Orleans.
Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Ryan Connors of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorneys G. Dall Kammer and Christine M. Calogero for the Eastern District of Louisiana are prosecuting the case.
Exhibits in U.S. v. Prive Overseas et al. 24-cr-00074.pdfCompanies that Own and Operate Oil Tanker Plead Guilty to Environmental CrimesRead the Press Release
Two related companies that operated the motor tanker PS Dream – Prive Overseas Marine LLC and Prive Shipping Denizcilik Ticaret – pleaded guilty today to conspiracy, knowingly violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice related to the falsification of the tanker’s Oil Record Book, which is a required log.
Exhibit 1 in U.S. v. Prive Overseas Marine, LLC and Prive Shipping Denizcilik Ticaret, A.S., case number 24-cr-00074. Credit: USCG.The guilty pleas were entered in federal court in New Orleans before Chief U.S. District Court Judge Nannette Jolivette Brown. If the court approves the plea agreement, the companies will be fined a total of $2 million and serve four years of probation. Separate charges have been filed against Captain Abdurrahman Korkmaz, a Turkish national who was the ship’s master.
The criminal case stems from the report of a crew member who, on Jan. 11, 2023, contacted the Coast Guard in New Orleans, which was the next port-of-call, and shared a video showing oil being pumped overboard and trailing behind the tanker. When the ship arrived in New Orleans two weeks later, this individual and another crew member blew the whistle and provided evidence to the Coast Guard. Video and photographic images were filed in court today by the prosecutors.
“Deliberate pollution from ships, intentional falsification of records and obstruction of justice are serious environmental crimes that will be vigorously prosecuted to the full extent of the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Maritime laws regulating pollution from ships are intended to ensure that ocean waters are not used as a dumping ground.”
“This case involved deceit and willful pollution, and this prosecution is intended to hold both the corporations and individuals accountable,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Criminal prosecutions are needed to deter deliberate efforts to circumvent our Nation’s anti-pollution laws. Importantly, $500,000 of the criminal penalty will go toward environmental protection of the marine environment in our area.”
“Today's outcome sends a powerful message: those who falsify logs and take deliberate actions to conceal pollution will face significant consequences,” said Captain Greg Callaghan, Deputy Commander of U.S. Coast Guard (USCG) Sector New Orleans. “The Coast Guard and our partners remain steadfast in our shared commitment to safeguarding our waters and holding accountable those who threaten our marine ecosystems. We encourage individuals to continue reporting any suspicious activities, as each report plays a crucial role in protecting the marine environment."
“It is long past time for the maritime industry to meet its obligations under international law and stop illegal pollution from ships,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Illegal ocean dumping and falsifying records to conceal those violations will not be tolerated by EPA and our federal law enforcement partners.”
The falsified logs, presented to the Coast Guard during its inspection, were intended to conceal the fact that the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with MARPOL Annex I, an international treaty regulating oil pollution from ships. According to court documents, the ship’s master ordered crew members to pump overboard from the residual oil tank, which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew. Senior managers at Prive Shipping were aware that the oil-contaminated waste remained in the tank and were informed by the ship’s master that it had been dumped overboard.
The proposed $2 million criminal penalty includes $500,000 in organizational community service payments that will fund various maritime environmental projects in the Eastern District of Louisiana. Those projects will be managed by the congressionally established National Fish & Wildlife Foundation. The court also has authority to award up to $500,000, half of the APPS portion of the fine, to the whistleblowers that provided evidence leading to conviction.
Prive Overseas Marine is based in Dubai and Prive Shipping is based in Turkey. The corporations were charged with four felonies: conspiracy, an APPS violation and two counts of obstruction of justice. Captain Korkmaz was charged with two counts: a violation of APPS and obstructing the Coast Guard’s inspection of the ship.
The Coast Guard Investigative Service and the EPA Criminal Investigations Division investigated the case with assistance from USCG Sector New Orleans.
Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Ryan Connors of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorneys G. Dall Kammer and Christine M. Calogero for the Eastern District of Louisiana are prosecuting the case.
Exhibits in U.S. v. Prive Overseas et al. 24-cr-00074.pdf
Columbia Man Sentenced to 15 Years for Armed Bank Robbery in BoonvilleRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man who was involved in a string of armed robberies across the state has been sentenced in federal court for the armed robbery of a Boonville, Mo., bank.
Drake Adam Stockton-Kenney, 32, was sentenced by U.S. District Judge Rosann A. Ketchmark on Monday, May 20, to 15 years in federal prison without parole. The court ordered the federal sentence to be served consecutively to the state sentence he is currently serving for a robbery conviction in a separate and unrelated case.
On Oct. 6, 2023, Stockton-Kenney pleaded guilty to one count of armed bank robbery. Stockton-Kenney admitted that he stole $22,027 from Alliant Bank in Boonville on June 25, 2021. Stockton-Kenney pointed a Taurus 9mm semi-automatic handgun at bank employees and ordered them to put their hands up. After putting the money in a white shopping bag, Stockton-Kenney ordered the employees to lie on the floor and count to 60 as he left the bank.
A nearby resident saw Stockton-Kenney cross her yard and get into a vehicle immediately after the robbery. Within about 10 minutes of the robbery, a license plate reader captured the license plate of the Chevrolet Spark rented by Stockton-Kenney traveling on Interstate 70.
According to court documents, Stockton-Kenney was involved in a string of robberies across the state between April 17 and June 25, 2021, committed within weeks of his release from a prior robbery sentence. Stockton-Kenney also robbed Check into Cash in Moberly on April 17, 2021; World Finance in Mexico on May 4, 2021; Advance America in Marshall on May 6, 2021; Check ‘n Go in Hannibal on May 20, 2021; and Alliant Bank in Pilot Grove on June 2, 2021. In each of those robberies, Kenney brandished a firearm and threatened to shoot anyone who did not comply with his demands.
Under the terms of his plea agreement, the government dismissed federal charges related to the additional robberies but took them into account in seeking a longer sentence than the federal sentencing guidelines recommendation.
Stockton-Kenney’s history of criminal activity includes felony convictions for two burglaries, tampering with a motor vehicle, and robbery. Stockton-Kenney committed the robbery four months after being paroled on his first three convictions in 2011. Stockton-Kenney remained in custody for his robbery conviction until Feb. 21, 2021, when he was again paroled. Stockton-Kenney’s most recent spree of criminal conduct began weeks after his February 2021 parole.
This case was prosecuted by Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Boone County, Mo., Sheriff’s Department, the Booneville, Mo., Police Department, the Columbia, Mo., Police Department, the Cooper County, Mo., Sheriff’s Department, the Hannibal, Mo., Police Department, the Marion County, Mo., Sheriff’s Department, the Marshall, Mo., Police Department, the Mexico, Mo., Police Department, the Moberly, Mo., Police Department, the Pilot Grove, Mo., Police Department, the Missouri State Highway Patrol, the FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Columbia County Man Indicted for Forcibly Assaulting and Threatening to Kill Two United States Secret Service AgentsRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Eric Evan Brown (57, White Springs) with interstate transmission of a threat to injure, threatening a United States Secret Service Protectee, two counts of forcibly assaulting a federal officer without use of a deadly weapon, and two counts of threatening a federal official. If convicted, Brown faces up to 10 years in federal prison for each count of threatening a federal official, up to 8 years in prison for each count of forcibly assaulting a federal officer, and up to 5 years in prison for the transmission of a threat and threat against a U.S. Secret Service Protectee. Brown made his appearance in federal court on May 20, 2024, and was ordered detained.
According to court documents, on April 7, 2024, Brown posted on X/Twitter a threatening communication to kill the spouse of a former president of the United States. On May 9, 2024, while two U.S. Secret Service agents were conducting a follow up investigation regarding the threat against the Protectee, Brown threatened to assault and murder both agents.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Secret Service – Jacksonville Field Office, with assistance from the Columbia County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Chinese national charged in “pig butchering” schemeRead the Press Release
TYLER, Texas – A Chinese national has been charged with participating in a scheme to launder the proceeds of cryptocurrency investment scams and other fraudulent schemes involving millions of dollars in victim funds in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Fei Liao, 29, of San Gabriel, California, was brought into federal custody on May 3, 2024. On May 20, 2024, Liao waived arraignment and pleaded not guilty to the charges. The indictment charges Liao with conspiracy to commit wire fraud and conspiracy to commit money laundering. Liao and others allegedly conspired to open shell companies and bank accounts to launder victim proceeds of cryptocurrency investment scams – also known as “pig butchering” – and other fraudulent schemes. Then, they allegedly transferred the funds involved in the fraud schemes to domestic and international financial institutions. Each of the charges for conspiracy to commit wire fraud and conspiracy to commit money laundering carry a maximum statutory sentence of 20 years in federal prison.
According to court documents, pig butchering fraud schemes (a term derived from a foreign-language phrase used to describe these crimes) consist of scammers encountering victims on dating services or social media, or through unsolicited messages or calls, often masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scheme operating fraudulent cryptocurrency investment platforms and applications, where victims are persuaded to make financial investments. Once funds are sent to scammer-controlled accounts, the investment platform often falsely shows significant gains on the purported investment, and the victims are thus induced to make additional investments. Ultimately, the victims are unable to withdraw or recover their money, often resulting in significant losses for the victims.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the U.S. Secret Service, Tyler Resident Office. This case is being prosecuted by Assistant U.S. Attorney Robert Austin Wells.
If you or someone you know is a victim, report it to the www.IC3.gov. In the report, please reference “Pig Butchering PSA” and include as much information as possible in the complaint including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.
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Cedar Rapids Man Charged with Attempted Sex Trafficking of a Child and Destruction of EvidenceRead the Press Release
Joshua Johnson, age 49, of Cedar Rapids, Iowa, has been charged with attempted sex trafficking of a child and destruction of evidence. The charges are contained in an Indictment filed on May 9, 2024, in United States District Court in Cedar Rapids.
The Indictment alleges that, in December 2023, Johnson attempted to recruit, entice, obtain, patronize, and solicit a person he believed to be under 14 to engage in a commercial sex act. The Indictment also alleges that Johnson destroyed electronic data with the intent to impede, obstruct, and influence the investigation.
If convicted, Johnson faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, and at least five years and up to life on supervised release following any imprisonment.
Johnson appeared for a detention hearing on May 20, 2024, in federal court in Cedar Rapids and was held without bond. Johnson’s next appearance for trial is set for July 15, 2024.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Federal Bureau of Investigation, Homeland Security Investigations, and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 24-38.
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California Woman Sentenced to Nearly Four Years in Federal Prison for Trafficking Methamphetamine in Rhode IslandRead the Press Release
PROVIDENCE, RI – A Mexican national who, at the direction of an individual incarcerated in a Maine prison, participated in the delivery of four pounds of methamphetamine to a courier who drove to Rhode Island from Maine to take possession of the drugs, has been sentenced to nearly four years in federal prison, announced United States Attorney Zachary A. Cunha.
According to court documents, while under law enforcement surveillance in Rhode Island on June 6, 2022, Nora Cecilia Carranza Reyes, 52, of Huntington Park, CA, participated in the delivery of a paper bag that contained four pounds of crystal meth to an individual who, at the direction of the Maine inmate, traveled to Rhode Island from Maine to retrieve the drugs. That individual was kept under constant law enforcement surveillance while returning to Maine, and the drugs were seized by law enforcement during a traffic stop in Maine.
A court-authorized search of Carranza Reyes’ motor vehicle in Rhode Island at the time of her arrest on June 8, 2022, resulted in the discovery of more than two-and one-half pounds of methamphetamine stashed inside a duffel bag and in a sophisticated hide located within the engine compartment of the vehicle.
Carranza Reyes pleaded guilty on January 25, 2024, to a charge of conspiracy to distribute and possess with intent to distribute methamphetamine and to a charge of possession with intent to distribute methamphetamine. She was sentenced today by U.S. District Court Judge Mary S. McElroy to forty-six months of incarceration to be followed by three years of federal supervised release.
The case was prosecuted by Assistant United States Attorney Stacey A. Erickson.
The matter was investigated by the Drug Enforcement Administration.
United States Attorney Cunha thanks the United States Attorney’s Office for the District of Maine and the DEA in Bangor, Maine, for their assistance.
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