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14 May 2024
Four imprisoned in Mexican Mafia murder-for-hire plotRead the Press Release
McALLEN, Texas – Several California residents have received significant sentences for their roles in a South Texas murder-for-hire scheme, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for less than two hours before convicting Viola Elizabeth, Garcia, 53, following a four-day trial in November 2022. Christopher Andrade, 33, also proceeded to trial and was convicted in July 2023. Two others - Noah Solis, 25, and Ronaldo Gallegos, 25, had previously pleaded guilty. All four are from Oxnard, California. Diego Morales, 38, was incarcerated at the time, but also pleaded guilty to his role in the crime prior to trial.
Chief U.S. District Judge Randy Crane has now ordered Garcia, Andrade and Gallegos to each serve 120 months in federal prison, while Morales received a 60-month-term of imprisonment. All sentences will be immediately followed by three years of supervised release.
Solis will be sentenced at a later date.
“The Mexican Mafia, a deadly criminal enterprise that traffics in fear and terror, imported a mother and son duo - Garcia and Andrade - from California to murder a local man for $20,000,” said Hamdani. “Garcia and Andrade thought the scheme would raise their family’s fortunes, but thanks to the work of law enforcement, there won’t be any family reunions for years to come.”
“These four individuals crossed state lines to carry out senseless acts of violence,” said Special Agent in Charge Aaron Tapp of the FBI's San Antonio Field Office. “We want to thank the Hidalgo County Sheriff’s Office, Mission Police Department, Oxnard Police Department and California Department of Corrections for their continued partnership in keeping our communities safe.”
The jury heard that in 2018, Mexican Mafia gang members arranged for the murder of a male residing in Mission.
Morales was in California State prison serving a sentence for attempted murder when he recruited others to commit the murder via a contraband cell phone in his possession. Andrade was a Colonia Chiques gang member who recruited and conspired with the others, including his mother - Garcia - to execute the murder in exchange for $20,000. Evidence showed Mexican Mafia members ordered the murder.
On Aug. 30, 2018, Garcia and co-conspirators attempted to forcibly enter the victim’s residence near Mission. The murder attempt was unsuccessful. They then tried to flee from the scene. At that time, Garcia led responding law enforcement officers on a high-speed chase until she crashed the vehicle.
At Andrade’s trial, the jury heard testimony regarding text messages and phone calls he had made from his phone coordinating the murder attempt.
The jury also heard that in July 2018, they attempted to murder the same victim.
At her trial, Garcia admitted she traveled to Texas in July and August 2018 with the co-conspirators while they were in possession of firearms. She also admitted to being present and witnessing gunshots fired in the July 2018 murder attempt.
However, she attempted to convince the jury she was unaware of any agreement or attempt to commit murder. She claimed the purpose of the trip was to transport the individuals to visit family members and to look at potential real estate for her daughter who resided in Arizona.
Andrade said he was not in fact the user of the phone and was unaware of any agreement or attempt to commit murder.
The jury did not believe either claims and found both guilty as charged.
All have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of the California Department of Corrections and Rehabilitation and police departments in Mission and Oxnard, California. Assistant U.S. Attorneys Roberto Lopez Jr., Cahal P. McColgan and Sarina S. DiPiazza prosecuted the case.
Fort Belknap man admits assaulting two women on Fort Belknap Indian ReservationRead the Press Release
GREAT FALLS — A man accused of firing a pistol at two women in a housing area on the Fort Belknap Indian Reservation admitted to an assault charge today, U.S. Attorney Jesse Laslovich said.
Gilbert Raymond Martinez, 32, of Fort Belknap and North Dakota, pleaded guilty to assault with a dangerous weapon. Martinez faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for Sept. 19. Martinez was detained pending further proceedings.
In court documents, the government alleged on May 17, 2021, Martinez fired a 9mm pistol at two women in the Newtown Housing area of the Fort Belknap Indian Reservation. The second woman told the responding officer that if she had not moved out of the way, the bullet would have hit her.
The U.S. Attorney’s Office is prosecuting the case. The FBI, Fort Belknap Police Department and Blaine County Sheriff’s Office conducted the investigation.
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Former children’s hospital employee pleads guilty to sharing, receiving child pornographyRead the Press Release
COLUMBUS, Ohio – A former Nationwide Children’s Hospital employee who treated child burn patients pleaded guilty in U.S. District Court today to downloading, exchanging and receiving child pornography.
Ryan Ramos, 38, of Columbus, pleaded guilty to one count of distributing and receiving child pornography and one count of possessing child pornography. He faces an imprisonment range of five to 20 years in prison.
Ramos worked at Nationwide Children’s Hospital from 2018 until 2020 and then at The Ohio State University Wexner Medical Center in the ICU in burn trauma until 2023.
According to court documents, a 2020 FBI investigation in their Brooklyn-Queens office led agents to discover Ramos’s participation in a Signal app group dedicated to the exchange of child pornography.
Ramos shared hundreds of images and videos of child sexual abuse, including abuse of young boys and infants, to the chat group.
Further investigation into Ramos revealed that, in 2018, he had paid a sexual offender in New York City and received child pornography created by the offender in exchange for his payment. Ramos sent more than $500 via PayPal to the child exploiter.
Ramos’s iPhone contained more than 346,000 Signal, Telegram and other online chat messages, in most of which Ramos was distributing, seeking, receiving or discussing child pornography.
Ramos was charged by a bill of information on May 6 and pleaded guilty during his arraignment in federal court this afternoon. He is in custody pending sentencing.
Congress sets the minimum and maximum statutory sentences. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the guilty plea entered today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Former Camden County Sheriff’s Deputy Indicted on Additional Child Pornography ChargesRead the Press Release
JEFFERSON CITY, Mo. – A former Camden County, Mo., sheriff’s deputy and school resource officer, previously charged with distributing child pornography, was indicted by a federal grand jury today on additional related charges.
Darrin Marshall Skinner, 49, was charged in a three-count indictment returned by a federal grand jury in Jefferson City. Today’s indictment replaces a criminal complaint that was filed against Skinner on Thursday, May 9, and includes additional charges.
Skinner was employed by Camden County as a deputy sheriff and assigned as a school resource officer in the Macks Creek School District. Prior to being hired by Camden County, he worked as a police officer in Osage Beach, Mo.
Today’s indictment contains the original charge of distributing child pornography. The indictment additionally charges Skinner with one count of receiving child pornography and one count of possessing child pornography.
According to an affidavit filed in support of the original criminal complaint, the investigation began when the social media network MeWe reported to the National Center for Missing and Exploited Children’s Cyber Tip Line that a user, later identified as Skinner, had uploaded images of child pornography. On June 7, 2023, the National Center for Missing and Exploited Children sent the report to the Camden County Sheriff’s Department. Due to Skinner’s connection to the department, the case was taken over by the Missouri State Highway Patrol.
Investigators learned the email address allegedly used by Skinner was a member of several sexually themed social groups. On Aug. 1, 2023, law enforcement officers executed a search warrant and interviewed Skinner at his residence.
Investigators learned that MeWe had made a prior report to the Cyber Tip Line in 2020 related to a user identified as Skinner allegedly uploading multiple images of child sexual abuse through the application’s chat feature. Skinner allegedly sent child sexual abuse material on multiple occasions, including images of children under the age of 12 and a pre-school age child.
Skinner also shared a number of photos of prepubescent girls identified as being from the community with other users of the MeWe platform, the affidavit says. He cropped and adjusted these images to be more sexually suggestive. No local minors were contained in the images of child pornography. It is believed Skinner obtained some of these photos of local minors from social media since they were in gymnastics or dance clothes associated with a local gymnastics studio. The images were exchanged as part of sexually charged chats between Skinner and other MeWe users.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Melissa A. Pierce. It was investigated by the Missouri State Highway Patrol Digital Forensic Investigative Unit and the Missouri State Technical Assistance Team.
Project Safe Childhood
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."
Former Boone County Man Indicted for Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – A former Boone County, Mo., man was indicted by a federal grand jury today for using a 9-year-old victim to produce child pornography.
Emrah Eymez, 38, who currently resides in Lafayette, Indiana, was charged in a three-count indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Eymez on April 17, 2024.
The federal indictment alleges that Eymez used a child under the age of 12 to produce child pornography from March 11 through April 2, 2024. Eymez is also charged with one count of receiving child pornography and one count of transferring obscene material to a minor under the age of 16.
According to an affidavit filed in support of the original criminal complaint, the mother of the 9-year-old victim contacted law enforcement to report the extensive cell phone communication between Eymez and her daughter. The mother reported approximately 1,851 text messages, the affidavit says, including the exchange of nude images and a sexually explicit video the child sent to Eymez.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Boone County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
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."
Five Defendants Sentenced Following the Robberies of Two Cell Phone Stores in Montgomery, AlabamaRead the Press Release
Montgomery, Alabama – Today, United States Attorney Jonathan S. Ross announced the sentencing of five individuals for their roles in robbing two cell phone stores at gunpoint. Two of the defendants also pleaded guilty to possessing fentanyl with intent to distribute.
The following provides more detail about the various defendants convicted and the sentences imposed.
- On May 13, 2024, Devon Lemar Bledson, 29, received a sentence of 204 months in prison following his guilty plea to three charges: interference with interstate commerce by robbery, brandishing a firearm during a federal crime of violence, and possession with intent to distribute fentanyl.
- On April 16, 2024, 31-year-old Devontae Gentry, received a sentence of 240 months in prison following a guilty plea to committing interference with interstate commerce by robbery.
- On April 3, 2024, Antonio Lavasia Provo, 33, received a sentence of 72 months in prison after pleading guilty to interference with interstate commerce by robbery.
- On March 28, 2024, 19-year-old Jaylan Subry Bledson, received a 90-month sentence following a plea of guilty to committing interference with interstate commerce by robbery and brandishing a firearm during a federal crime of violence.
- On March 14, 2024, 29-year-old Staci Danielle Gilbert, received a prison sentence of 60 months for after pleading guilty to interference with interstate commerce by robbery and possession with intent to distribute fentanyl.
All defendants are residents of Montgomery, Alabama, with the exception of Devontae Gentry, who is from Chicago, Illinois.
According to the plea agreements and other court records, on April 25, 2023, members of the group entered a cell phone store located on the Eastern Boulevard in Montgomery. One of the members pointed a gun at store employees and demanded to be taken to the store’s safe. After gaining access to the safe, the defendants took assorted electronic devices. The group repeated the same actions on May 18, 2023, this time at a cell phone store on Ann Street in Montgomery. Again, the defendants used a firearm to threaten store employees and gain access to the safe.
After the Ann Street store robbery, law enforcement located the group as it was traveling on an interstate highway in Chilton County. Responding officers were able to stop the defendants’ vehicle after a brief pursuit. The officers identified Devon Bledson as the driver. They found three other group members in the vehicle: Staci Gilbert, Jaylan Bledson, and Devontae Gentry. When law enforcement searched the vehicle, they also found firearms and pills containing fentanyl. Further investigation revealed Antonio Provo’s involvement in the robberies.
“Combatting violent crime is a top priority for this office,” said United States Attorney Ross. “The use of firearms to commit crimes shows a complete disregard for the safety and well-being of community members. This case is yet another example of the good work that results from law enforcement agencies coming together to bring to justice violent individuals. I am grateful for the responding officers and deputies who put their lives on the line, as well as the investigators and agents who gathered the evidence needed for prosecution. Because of their efforts, these five defendants received the significant sentences imposed.”
“The sentences imposed on these defendants should send a strong message to anyone contemplating other violent criminal acts,” said FBI Special Agent in Charge Paul W. Brown with the Mobile, Alabama Field Office. “Those who work and live in Montgomery deserve to feel safe and secure in their community. The successful investigation and prosecution of these defendants was achieved due to the strong partnerships between the FBI, Montgomery Police Department, Clanton Police Department, Chilton County Sheriff’s Office, Alabama Law Enforcement Agency, and the United States Attorney’s Office.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
The Federal Bureau of Investigation, the Montgomery Police Department, the Clanton Police Department, the Chilton County Sheriff’s Office, and the Alabama Law Enforcement Agency conducted this investigation, and Assistant United States Attorney Brandon W. Bates prosecuted the case.
Felon Admits Illegally Possessing Gun Used in Bar FightRead the Press Release
ST. LOUIS – A convicted felon on Monday admitted illegally possessing firearms twice, including when he used one in a bar fight in Overland, Missouri.
Kenneth Jordan, 63, of University City, Missouri, pleaded guilty to two counts of being a felon in possession of a firearm. He admitted that on Feb. 22, 2023, he got into a fight over a pool game at a bar in Overland, Missouri. Jordan struck a bar patron in the head with a revolver before threatening him with the gun.
Police identified Jordan as the attacker. During a search of his home on March 7, 2023, they found the revolver used in the assault as well as three shotguns. Jordan is a convicted felon and barred from possessing firearms.
Jordan is scheduled to be sentenced August 14.
The Overland Police Department and the St. Louis County Department investigated the case. Assistant U.S. Attorney Nino Przulj 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.
Fallen Missouri Law Enforcement Officers Honored During National Police WeekRead the Press Release
KANSAS CITY, Mo. – In honor of National Police Week, U.S. Attorney Teresa Moore recognizes the service and sacrifice of federal, state, and local law enforcement. The week will be observed Saturday, May 11 through Friday, May 17, 2024.
“Each year, during National Police Week, we honor those officers and agents who made the ultimate sacrifice by giving their lives in the line of duty in service to our community,” Moore said. “National Police Week is also an opportunity to express our appreciation for the service and sacrifice of law enforcement officers and agents. We recognize their hard work, dedication, loyalty, and commitment to keeping our communities safe.”
National Police Week is a week set aside to honor and remember law enforcement officers who gave their lives in the line of duty while serving in federal, state, and local law enforcement agencies. In 1962, President John F. Kennedy proclaimed May 15 as National Peace Officers Memorial Day, and National Police Week is held annually to commemorate fallen officers.
“As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.”
U.S. Attorney Moore recently attended the Kansas City, Mo., Police Department’s memorial service honoring the 120 officers in department history who died in the line of duty.
Another event held in conjunction with National Police Week is the inclusion of the names of fallen officers on the National Law Enforcement Memorial in Washington, D.C. On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the memorial’s wall were read during a Candlelight Vigil. To view a recording of the livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
The fallen officers who were memorialized include five members of the law enforcement community from Missouri:
- Charles Lee Burns, Camden County, Mo., Sheriff’s Department;
- Mason Evans Griffith, Hermann, Mo., Police Department;
- James Matthew Muhlbauer, Kansas City, Mo., Police Department;
- Kelly Bernard Rolando, Missouri Department of Corrections;
- Jason Scott Pulliam, Missouri Department of Corrections.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
Ex-Riverside Man Agrees to Plead Guilty to Hate and Gun Crimes for Shooting Two Jewish Men Leaving L.A. Synagogues Last YearRead the Press Release
LOS ANGELES – A former Riverside resident who last year shot and wounded two Jewish men as they left religious services in the Pico-Robertson area of Los Angeles has agreed to plead guilty to hate crimes and firearms offenses, the Justice Department announced today.
Jaime Tran, 29, has agreed to plead guilty to all charges against him: two counts of hate crimes with intent to kill and two counts of using, carrying, and discharging a firearm during and in relation to a crime of violence.
Tran is expected to plead guilty to the felony charges before United States District Judge George H. Wu in the coming weeks.
Upon entering his guilty plea, Tran will face a statutory maximum sentence of life in federal prison for each hate crime count, and a maximum of life imprisonment and a mandatory minimum sentence of 10 years for each firearm count.
Under the plea agreement, which prosecutors filed today, Tran would receive a prison sentence of between 35 years and 40 years.
“This defendant sought to murder two men simply because they were Jewish,” said United States Attorney Martin Estrada. “Rather than allow these horrific crimes to divide us, however, our community came together and swiftly brought the perpetrator to justice. Hate and intolerance have no place in America. We will remain firm in our approach of using all the tools at our disposal to aggressively prosecute acts of hate.”
“The defendant’s hatred led him to plan the murder of two innocent victims simply because he believed they were practicing their Jewish faith,” said Krysti Hawkins, the Acting Assistant Director of the FBI’s Los Angeles Field Office. “I’m relieved that the hard work by investigators and prosecutors led to Tran’s admission to these abhorrent crimes, and hope that members of the Jewish community take some solace in knowing that he will not be in the position to target their fellow members.”
“I’m thankful for the hard work our investigators and prosecutors have put into this case,” said Los Angeles Police Chief Dominic Choi. “Hate crimes tear at the fabric of our communities and safety. The Los Angeles Police Department is stronger through our federal partnerships, better serving the people of Los Angeles.”
According to his plea agreement, Tran developed and espoused antisemitic beliefs and made violent threats toward Jewish people. In 2018, Tran left dental school after making hate-filled statements about other students whom he perceived to be Jewish.
From August 2022 to December 2022, Tran’s antisemitic statements escalated and included increasingly violent language, including against a former classmate whom he repeatedly called and texted with messages such as “I want you dead, Jew,” “Someone is going to kill you, Jew,” and “Burn in an oven chamber.”
In November 2022, Tran emailed two dozen former classmates a flyer containing antisemitic propaganda, including the statement, “EVERY SINGLE ASPECT OF THE COVID AGENDA IS JEWISH.” The following month, Tran emailed his former classmates excerpts from a website describing Jewish persons as “primitive” and having “thick skulls.”
As a result of previous mental health holds, as of 2023, Tran was prohibited from purchasing firearms. In January 2023 in Phoenix, Tran asked a third party to buy two firearms for him. Tran selected the firearms he wanted and paid approximately $1,500 in cash to the third party, who then purchased them.
On the morning of February 15, 2023, Tran used the internet to research locations with a “kosher market,” and planned to shoot someone near a kosher market because he believed there would be Jewish people in the area. Tran drove to Pico-Robertson and shot a Jewish victim wearing a yarmulke as he was leaving religious services at a synagogue. Tran, believing the victim was Jewish, shot him at close range in the back, intending to kill him. Tran then fled the scene in his car.
The next morning, February 16, 2023, Tran returned to the Pico-Robertson area, intending to shoot another Jewish person. Tran shot a second Jewish victim, also wearing a yarmulke and leaving a synagogue after attending religious services. Tran shot the victim at close range, intending to kill him, as the victim crossed the street. Tran again fled the scene.
Both victims survived the attacks. Law enforcement arrested Tran on February 17 and he has remained in custody since then.
The FBI and the Los Angeles Police Department are investigating this matter. The Riverside County Sheriff’s Department, the Cathedral City Police Department, and the Fountain Valley Police Department provided substantial assistance.
Assistant United States Attorneys Kathrynne N. Seiden of the Terrorism and Export Crimes Section and Frances S. Lewis of the Public Corruption and Civil Rights Section are prosecuting this case.
Evoqua Water Technologies Corp. Agrees to Pay $8.5 Million Criminal Penalty for Fraudulent Revenue RecognitionRead the Press Release
PROVIDENCE – United States Attorney Zachary A. Cunha announced today that Evoqua Water Technologies Corp. (EVOQUA), a Pennsylvania company with a division in Rhode Island, has entered a non-prosecution agreement (NPA) with the U.S. Attorney’s Office relating to EVOQUA’s securities fraud arising from improper revenue recognition and false statements to its external auditors between late 2016 and 2018. Under the NPA, EVOQUA will pay an $8.5 million criminal penalty. This amount adds to an $8.5 million civil penalty EVOQUA paid to the U.S. Securities and Exchange Commission (SEC) and $16.65 million that EVOQUA paid to settle shareholder class-action claims based on the same course of conduct. The NPA also imposes monitoring, reporting, and compliance obligations on EVOQUA for two years.
United States Attorney Zachary A. Cunha commented, “EVOQUA deceived investors by claiming it had earned revenue when it had not. As the agreed-upon Statement of Facts makes clear, the Government’s investigation identified serious misconduct for which our agreement holds the company accountable. We will continue to use all of our tools to hold accountable those who commit fraud on the financial markets and thus undermine confidence in our public markets.”
“Today’s settlement should make it clear to companies that we are watching to make sure they are accurately reporting their revenue so investors can make a fair assessment of their stock values. What EVOQUA did in this case by falsely claiming it earned revenue when it did not, seriously undermines the public’s trust in our financial system,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Investor confidence is essential to keeping our financial markets afloat and the FBI is committed to vigorously investigating complex financial crimes and ensuring corporate accountability.”
Under the NPA, EVOQUA accepts responsibility for the actions of its employees and admits to facts sufficient to prove securities fraud, including the following:
Until May 2023, EVOQUA was a corporation headquartered in Pennsylvania with its Aquatics and Disinfection (“A&D”) Division based in Coventry, Rhode Island that provided municipal and industrial water and wastewater treatment and water filtration equipment and services. In May, 2023, EVOQUA’s stock was acquired by XYLEM INC.
From late 2016 through 2018, EVOQUA’s A&D Division falsely inflated and improperly recognized revenue in violation of Generally Accepted Accounting Principles. EVOQUA intentionally and improperly booked revenue from purported sales of products where:
- the sale was contingent and receiving revenue was not reasonably assured;
- the products had not shipped to customers in the quarter during which the revenue was recognized; and/or
- the component parts had not been completed and/or assembled.
The A&D Division’s improper revenue recognition caused EVOQUA to misstate financial statements as part of its November 2017 initial public stock offering and in subsequent annual and quarterly filings with the SEC. From in or about the fall of 2017 through 2018, EVOQUA also made materially false and misleading statements to and omitted material facts necessary to make statements not misleading to its external auditors concerning EVOQUA’s revenue-recognition practices.
This resolution reflects EVOQUA’s cooperation, acceptance of responsibility for its criminal conduct, remediation efforts, and commitment to enhanced compliance efforts, as well as its prior resolution with the SEC and the shareholder class action. It also takes into account the fact that EVOQUA was acquired by XYLEM, INC. after the conduct at issue in this investigation occurred.
The matter was investigated by the Federal Bureau of Investigation. The case was investigated and prosecuted by First Assistant United States Attorney Sara Miron Bloom and Assistant United States Attorney Kevin Bolan. United States Attorney Cunha thanks the U.S. Securities and Exchange Commission for its valuable assistance with the investigation.
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non_prosecution_agreeement.pdfDrug smuggler sent to prison for six-kilo cocaine seizure at bridgeRead the Press Release
BROWNSVILLE, Texas – A 22-year-old U.S. citizen residing in Matamoros, Mexico, has been sentenced for conspiracy to possess and possession with intent to distribute 6.16 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Javier Eduardo Vicencio pleaded guilty Aug. 24, 2023.
U.S. District Judge Fernando Rodriguez Jr. has now ordered Vicencio to serve 48 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that while Vicencio had some character references, the court needed to consider the seriousness of the offense, protecting the public and a deterrence to criminal conduct because Vicencio had committed at least five prior successful drug crossings.
On May 2, 2023, Vicencio drove into the United States through the Gateway Port of Entry in Brownsville. He was the sole occupant of a Chevy Cobalt bearing Mexican license plates. Upon initial inspection, Vicencio denied possessing alcohol, weapons, drugs or other items. However, authorities noticed he appeared nervous and referred him to secondary inspection.
There, they observed anomalies in the side passenger fire wall which resulted in the discovery of 35.4 pounds of cocaine.
Vicencio claimed his family had owned the vehicle for about 10 years and he was trying to “help” them. He believed he was crossing the border with cocaine and would receive payment of $1,000 per trip for delivery to others in Brownsville.
Vicencio will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Oscar Ponce prosecuted the case.
Drug Trafficker Sentenced to 15 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that WALLACE BEST, also known as “Coop,” 57, of Bridgeport, was sentenced yesterday by U.S. District Judge Victor A. Bolden in New Haven to 180 months of imprisonment, followed by 10 years of supervised release, for trafficking fentanyl and heroin.
According to court documents and statements made in court, in 2019, the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force began investigating an organization that was distributing heroin, fentanyl and crack cocaine in an around Bridgeport. During the investigation, Task Force members made four controlled purchases of heroin and fentanyl from Frank Best. The investigation, which included court-authorized wiretaps and hundreds of consensual recordings, revealed that Frank Best’s uncles, Wallace Best and Jeffrey Thomas, were supplying Frank Best and others with narcotics.
The investigation further revealed that Jeffrey Thomas worked with Jason Cox to establish a connection to Mexican-sourced drug suppliers in California who could provide kilogram quantities of narcotics for distribution on the East Coast. In December 2019, a cooperating source working in conjunction with Wallace Best, Thomas, and Cox, traveled to a Home Depot parking lot in San Diego and purchased from their suppliers 1.1 kilograms of fentanyl, cut with Xylazine, which is a veterinary sedative, and Tramadol, in exchange for $27,000. After this successful transaction, the conspirators arranged to purchase five kilograms of heroin from their Mexican suppliers. On February 10, 2020, four individuals were arrested after they arrived at the same parking lot to conduct the transaction and investigators seized a box containing approximately 4.9 kilograms of heroin. A related search of a storage locker in San Diego revealed an additional five kilograms of heroin.
On October 14, 2022, a jury found Wallace Best, Thomas, and Cox guilty of one count of conspiracy to distribute and to possess with intent to distribute kilogram quantities of heroin and fentanyl, and Wallace Best, Thomas, and Frank Best guilty of conspiracy to distribute and to possess with intent to distribute heroin, fentanyl, and cocaine base (“crack”). In addition, Frank Best was found guilty of five counts of possession with intent to distribute, and distribution of, heroin, fentanyl, and cocaine base.
Wallace Best’s criminal history includes a federal cocaine trafficking conviction in 2002.
Wallace Best was arrested on February 11, 2020. Released on a $150,000 bond, he is required to report to prison on July 15.
On April 24, 2024, Cox was sentenced to 125 months of imprisonment. Thomas and Frank Best await sentencing.
This matter was investigated by the DEA’s Bridgeport HIDTA Task Force with the assistance of the DEA San Diego Field Division. The DEA’s Bridgeport HIDTA Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford, and Danbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck, Lauren C. Clark, and Katherine E. Boyles through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Convicted felon sentenced after being caught again in possession of a firearmRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to two years and three months in prison for being a felon in possession of a firearm.
According to court documents, on Sept. 5, 2023, Henrico County Police officers performed a traffic stop on Nathaniel Jay Brown, 35, after observing Brown committing traffic infractions. During the traffic stop and in response to an officer’s questions, Brown indicated that he was in possession of a firearm. After Brown got out of the vehicle, the officer retrieved from Brown’s waistband a .380 caliber semiautomatic handgun with a fully loaded magazine.
As a previously convicted felon, Brown cannot legally possess a firearm. At the time of the incident, Brown had multiple felony convictions, including a 2013 conviction for being a felon in possession of a firearm.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Eric D. English, Chief of Henrico County Police Division, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Patrick J. McGorman and Stephen E. Anthony prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-146.
Comfort Care Medical Equipment, Inc. and Its Owner Agree to Pay $352,800 to Settle False Claims Act Allegations Regarding Its Submission of False Claims for Compression GarmentsRead the Press Release
Baltimore, Maryland – Comfort Care Medical Equipment, Inc. (“Comfort Care”) and one of its owners, Patrick Chalmers, have agreed to pay the United States $352,800 to resolve allegations that they violated the federal False Claims Act by submitting false claims to the Office of Personnel Management (OPM), which administers the Federal Employees Health Benefit Program (FEHBP) (collectively, the “United States”). Comfort Care is a durable medical equipment provider that provides compression and lymphedema garments, for various body parts including legs and arms, to patients. Patrick Chalmers was an owner of Comfort Care. He owned 100% of its stock and served as Comfort Care’s President from September 2005 until December 31, 2019.
The civil settlement was announced by United States Attorney for the District of Maryland Erek L. Barron, and Special Agent in Charge for the OPM Office of the Inspector General (OIG) Derek M. Holt.
The civil investigation was opened by the United States Attorney’s Office based upon a referral from OPM, OIG regarding excessive billings. Comfort Care billed almost all compression stockings (arms, legs, bras, etc.) utilizing HCPCS Code A6459 (gradient compression garment, not otherwise specified). According to the contract that Comfort Care had with Care First, which administered the FEHBP plan, Comfort Care could utilize this code only if no other HCPCS code could be billed for the compression garment provided. Once the A6549 HCPCS code was used, Comfort Care could bill FEHBP contracted plans for any amount and would be reimbursed at 65% of that amount.
“Federal contractors are required to bill the appropriate code for services rendered, not the code that puts the most money in their pockets. The U.S. Attorney’s Office and our partners are committed to ferreting out unlawful compliance with government contracts," said U.S. Attorney Erek L. Barron.
“False claims threaten the integrity of the FEHBP and can make health care more expensive for American taxpayers,” said Special Agent in Charge Derek M. Holt, OPM OIG. “I applaud our investigative staff and partners at the Department of Justice for their hard work on this case.”
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Comfort Care nor a concession by the United States that its claims are not well-founded.
United States Attorney Erek L. Barron commended the U.S. Office of Personnel Management, Office of the Inspector General, for its work in this investigation. Mr. Barron thanked Assistant U.S. Attorneys Thomas Corcoran and Sarah Marquardt, who handled the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Colorado Man Arrested for Allegedly Distributing Fentanyl to Texas ResidentRead the Press Release
ALPINE, Texas – A Colorado man was arrested Saturday in Denver on criminal charges related to his alleged possession with intent to distribute fentanyl.
According to the indictment, Douglas Christopher Steele, 53, of Denver allegedly conspired with others to possess with the intent to distribute a controlled substance, which contained a detectable amount of fentanyl. The indictment alleges that Steele’s alleged fentanyl distribution resulted in the death of an Alpine resident.
Steele made his initial appearance Monday in a federal court in Denver. He is charged with one count of conspiracy to possess with intent to distribute fentanyl and one count of possession with intent to distribute fentanyl. If convicted, he faces 20 years to life in prison for each count. 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 the Texas Department of Public Safety Criminal Investigation Division are investigating the case with assistance from the Alpine Police Department, Brewster County Sheriff’s Office, and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Amy Greenbaum 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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Chinle Man Sentenced to Life in Prison for Multiple Counts of Child Sex AbuseRead the Press Release
PHOENIX, Ariz. – Kendall Anagal, 41, of Chinle, was sentenced last week by United States District Judge Diane J. Humetewa to life in prison for multiple counts of child sexual abuse.
On February 9, 2024, a federal jury found Anagal guilty of three counts of Aggravated Sexual Abuse and one count of Abusive Sexual Contact of a Child. Anagal repeatedly and violently sexually abused a child who, at the time of the abuse, was between nine and 10 years old. The victim reported these offenses when she was 17 years old; she did not disclose them earlier because she feared for her life.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorneys Tracy Van Buskirk and Sharon K. Sexton, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-8113-PCT-DJH
RELEASE NUMBER: 2024-063_Anagal# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Butte meth trafficker sentenced to more than seven years in prisonRead the Press Release
MISSOULA — A Butte man identified as a major drug supplier in an investigation was sentenced today to seven years and three months in prison, to be followed by five years of supervised release, after he admitted to trafficking methamphetamine in the community, U.S. Attorney Jesse Laslovich said.
The defendant, Juan Jose Romero, 39, pleaded guilty to possession with intent to distribute meth, in December 2023.
U.S. District Judge Dana L. Christensen presided.
In court documents the government allege that Romero was identified as a major drug supplier in Butte, and that a source told law enforcement about having purchased heroin from Romero while Romero was in the Butte Pre-Release Center. Agents contacted Romero at his apartment after they learned he had absconded from felony supervision. In a search of his residence, agents located a loaded .22 magazine, two cell phones and drug paraphernalia. In December 2022, law enforcement in Butte conducted a traffic stop on Romero and located 29 grams of meth, two firearms, drug paraphernalia and 14 suspected fentanyl pills in the vehicle. Romero admitted he was selling meth.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case. The Southwest Montana Drug Task Force, Montana Division of Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and FBI conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Buffalo man pleads guilty to production of child pornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Michael Bevill, 36, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. to production of child pornography, which carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years and a $250,000 fine.
Assistant U.S. Attorney Franz T. Wright, who is handling the case, stated that between June 2022, and August 2023, Bevill engaged in prohibited sexual conduct with a minor child under 12-years-old. Bevill produced photographs and video recordings of himself sexually abusing the minor child on multiple occasions. He admits that he gave the minor child sedatives before producing the child pornography. Bevill then distributed the visual depictions he produced to another individual using the Telegram messaging application.
The plea is the result of an investigation by the federal bureau of Investigation, under under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing will be scheduled at a later date.
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Buffalo man pleads guilty to lying during drug overdose investigationRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Roman Lapp, 49, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to obstruction of Justice, which carries a maximum penalty of 10 years in prison and a $250,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that in June 2019, an individual known to law enforcement contacted Lapp, asking for narcotics. As a result, Lapp obtained heroin/fentanyl/acetyl fentanyl from his supplier, Steven Gonzalez, then delivered the narcotics to the individual’s residence. After using the heroin/fentanyl/acetyl fentanyl, the individual overdosed and died. Lapp was initially interviewed by the Buffalo Police Department, during which he identified the source of the narcotics as someone other than Steven Gonzalez. Lapp reiterated this information during a follow up interview with members of federal law enforcement. Later in the interview however, he admitted that he was not truthful about the identity of the source of the narcotics. Lapp then stated Steven Gonzalez was the actual source and that he lied to protect Gonzalez, among other reasons. Gonzalez was convicted and sentenced to serve 188 months in prison.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea of the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarantino, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
Sentencing will be scheduled at a later date.
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Brookland Man Pleads Guilty to Tax EvasionRead the Press Release
LITTLE ROCK—Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced today that a man who owned and operated an information technology business that provided services to various governmental entities has pleaded guilty to tax evasion. Ronnie Lyn Drummond, 52, of Brookland, entered this guilty plea earlier today before United States District Judge James M. Moody, Jr.
Judge Moody will sentence Drummond at a later date. Tax evasion is punishable by not more than five years’ imprisonment, not more than three years’ supervised release, and a fine of not more than $100,000.
The investigation revealed that Drummond failed to timely file tax returns for the tax years of 2008 – 2012. When Drummond eventually filed returns for these years, his calculations reflected tax obligations, which Drummond failed to pay. Between 2014 and 2017, the defendant received gross receipts of $1,044,043.05, to include labor and materials. In an attempt to conceal his gross receipts, including income, from the Internal Revenue Service, the defendant cashed the majority of the checks he received. The tax loss, excluding interest and penalties, is $177,357.98.
“Law-abiding U.S. citizens who responsibly file their tax returns each year and pay their taxes expect those who won’t, to be held accountable. Unlike the vast majority of his fellow citizens, Mr. Drummond chose to conceal income; to not file his tax returns for several years; and to fail to pay the amounts he knew were owed to the Internal Revenue Service,” said Ross. “As demonstrated by this case, failure to file taxes or evading paying the taxes you owe, can result in prosecution and a potential sentence in federal prison.”
“Every U.S. Citizen has the common duty of paying their fair share of taxes, which in turn helps provide for the general welfare and the common defense of this great Nation,” said Christopher J. Altemus Jr., Special Agent in Charge, IRS Criminal Investigation, Dallas Field Office. “The women and men of IRS Criminal Investigation will continue to bring people to justice who blatantly disregard their civic duty and willfully break the law by evading their taxes. Mr. Drummond willfully chose not to pay his taxes, and in some cases, he chose not to file his tax returns with the IRS. Now he faces the possibility of jail time and the payment of restitution for taxes owed, plus interest and penalties.”
Drummond was indicted on May 4, 2023, and charged with one count of tax evasion and one count of failure to file taxes. In exchange for his guilty plea to tax evasion, the remaining count was dismissed.
The case was investigated by the Internal Revenue Service with assistance from the Housing and Urban Development Office of Inspector General.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line at
https://www.justice.gov/edar
X (formerly known as Twitter):
@USAO_EDAR
Activity in the U.S. Attorney's OfficeRead the Press Release
Firearm Offenses
Jared Trent Dozier, 44, of Colorado, was sentenced to 37 months in federal prison for being a felon in possession of a firearm. According to court documents, on Oct. 7, 2023, Dozier was arrested by the Wyoming Highway Patrol after fleeing from a traffic stop on Interstate 25 in
Converse County, Wyoming. After a high-speed chase, Dozier’s vehicle was eventually stopped with the assistance of stop sticks and a tactical vehicle interception. During a search of the vehicle, troopers located narcotics, stolen mail, and a loaded Walther PK380 handgun in a holster next to the driver’s seat. Dozier pleaded guilty to the charge on Feb. 20 and U.S. District Court Judge Alan B. Johnson imposed the sentence on May 13. This crime was investigated by the U.S. Postal Inspection Service, Wyoming Highway Patrol, and Wyoming Division of Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Paige Hammer.
Drug Trafficking
Amanda Christine Gray, 35, of Cheyenne, Wyoming, was sentenced to 120 months in federal prison for conspiracy to distribute fentanyl and carrying a firearm during and in relation to a drug trafficking crime. According to court documents, on Aug. 3, 2023, the Cheyenne Police Department witnessed Gray slumped over in the driver seat of her vehicle in a parking lot. Gray admitted to smoking fentanyl and was treated by medical professionals. A search of the vehicle uncovered a loaded .40 caliber Smith & Wesson pistol, 183 fentanyl pills, and $1,300 in cash. Gray pleaded guilty to the charges on Feb. 20 and Senior U.S. District Judge Nancy D. Freudenthal imposed the sentence on May 13. The crime was investigated by the Cheyenne Police Department and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney T.J. Forwood.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
13 May 2024
Wheatland Man Pleads Guilty to Submitting False Claims Against the United States in Relation to COVID-19 Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Jason Toland, 43, of Wheatland, pleaded guilty today to one count of submitting false claims against the United States related to COVID-19 pandemic tax credits, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Toland attempted to obtain more than $13.4 million in COVID-19 pandemic relief, including by filing multiple false tax returns with the IRS seeking refunds for the Employee Retention Credit and the COVID Sick and Family Leave Credit. Toland used shell companies that had no real employees and no actual business activity to seek over $11 million in such tax refunds to which he was not entitled. In addition, between 2020 and 2023, Toland used the shell companies to fraudulently obtain more than $1.7 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds. All these tax credits and programs were intended to alleviate the economic harm caused by the COVID-19 pandemic on real businesses with real employees and operating expenses.
To pursue the funds, Toland submitted multiple: (1) Tax forms 941 and 941-X seeking Employee Retention Credit and COVID Sick and Family Leave Credit refunds from the IRS; (2) PPP loan applications to various banks; and (3) EIDL applications to the Small Business Administration (SBA) – all on behalf of the phony shell companies. In one specific instance, on Nov. 18, 2022, Toland filed two false Forms 941 (which are Employer’s Quarterly Federal Tax Returns) to the IRS that resulted in improper refunds in the amount of $210,868 being paid out to Toland.
Of the over $13.4 million that he sought through false tax returns and fraudulent loan applications, Toland successfully obtained over $1.95 million. All the funds Toland received went to his own personal enrichment. As a part of his plea agreement, Toland has agreed to pay $1,952,504 in restitution, plus interest and fees, to the IRS and SBA.
“Tax credits are another face of pandemic fraud, and our COVID-19 Fraud Strike Force will continue to pursue those who abuse them,” said U.S. Attorney Talbert. “The defendant’s false claims targeted credits meant for real businesses suffering real consequences of the pandemic. The U.S. Attorney’s Office remains committed to working with our law enforcement partners to identify and prosecute those who provide false information to seek these credits.”
“Mr. Toland’s plea reinforces a simple message. Crime does not pay,” said IRS Criminal Investigation Oakland Field Office Acting Special Agent in Charge Michael Mosley. “Our highly trained agents are experts at investigating financial crimes and following the money directly to criminals pursing ill-gotten gains. Our agents are also motivated to protect the American people against fraudsters siphoning money from citizens in need.”
This case is the product of an investigation by IRS Criminal Investigation (CI) Oakland Field Office in collaboration with the CI Nationally Coordinated Investigation Unit. IRS-CI received significant assistance from the SBA Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Denise N. Yasinow is prosecuting the case.
Toland is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 8, 2024. Toland faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Violent Armed Robbery in Oklahoma City Leads to 25 Years in Federal Prison for Mississippi ManRead the Press Release
OKLAHOMA CITY – CHARLES LAMAR SCOTT, 36, of Greenville, Mississippi, has been sentenced to serve 25 years in federal prison for robbing an Oklahoma City pharmacy, discharging a firearm during the robbery, and possessing a firearm that had been modified to operate as a machinegun, announced U.S. Attorney Robert J. Troester.
On May 3, 2023, a federal grand jury returned a five-count Indictment against Scott, charging him with interference with commerce by robbery, using, carrying, and discharging a firearm during and in relation to a crime of violence, using, carrying, brandishing, and discharging a machinegun during and in relation to a crime of violence, unlawful possession of a machinegun, and felon in possession of a firearm.
According to the public record, on or about December 26, 2022, Scott committed an armed robbery at a CVS Pharmacy located in Oklahoma City. During the robbery, Scott violently assaulted a CVS employee and then forcibly took a handgun from a retired police officer, firing the stolen weapon at the building as he left the pharmacy. Scott also fired another handgun at law enforcement responding to the crime. The second firearm was modified with a machinegun conversion device, commonly known as a “switch”, which converted the semi-automatic weapon into a fully automatic handgun.
On September 22, 2023, Scott pleaded guilty to Counts 1, 2, and 4 of the Indictment. As part of his plea, Scott admitted that he used force and violence in order to obtain money from CVS, that he discharged a firearm during and in relation to the robbery, and that he was aware that one of the firearms he possessed had been modified to become a machinegun.
At the sentencing hearing on May 10, 2024, U.S. District Judge Charles Goodwin sentenced Scott to serve 25 years in federal prison, followed by three years of supervised release. In announcing his sentence, Judge Goodwin noted the troubling circumstances of the offense and the need to promote respect for the rule of law.
This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorneys Stan J. West and David R. Nichols, Jr. prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. This case is also part of “Project Switch Off,” the Western District of Oklahoma’s local implementation of PSN. “Project Switch Off” targets illegal machinegun conversion devices to address the significant danger these illegal devices present and to remove them from our streets. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
Utah man sentenced to 21 months in prison for defrauding Montana employer, $700,000 restitution orderedRead the Press Release
HELENA — A Utah man who admitted embezzling approximately $700,000 from a Montana company was sentenced today to 21 months in prison, to be followed by three years of supervised release, and ordered to pay $700,000 restitution, U.S. Attorney Jesse Laslovich said.
The defendant, Thomas Lynn Syddall, 50, of American Fork, Utah, who worked for a company owned by Anderson ZurMuehlen & Co., pleaded guilty in October 2023 to wire fraud and to money laundering-concealment as charged in an indictment.
Chief U.S. District Judge Brian M. Morris presided.
“For more than a year, Syddall stole hundreds of thousands of dollars from his employer through a calculated scheme using fictitious purchasing orders and invoices. Syddall’s conduct violated the trust of his employer for his own personal enrichment, which now makes him a federal felon. Our office, working with our law enforcement partners, will remain committed to holding white collar criminals accountable,” U.S. Attorney Laslovich said.
“IRS Criminal Investigation (CI) enforces the nation’s tax laws, but we also assist our federal law enforcement partners in these types of cases by following the money,” said Andy Tsui, Special Agent in Charge, Denver Field Office. “Our special agent’s ability to unravel embezzlement and money laundering schemes is vital to these types of investigations, and we will continue to work with our partners to hold criminals accountable for their actions.”
In court documents, the government alleged that Syddall was a salesman for Information Technology Corporation, which was owned by Anderson ZurMuehlen & Co. From about March 2020 to about August 2021 in Helena, Syddall embezzled money through multiple means, including creating bogus purchase orders and invoices, stealing inventory and directing payments to fictitious companies and unauthorized vendors. Syddall then sold the inventory, none of which was authorized, on eBay and KSL Classifieds. When questioned by other employees about the discrepancies in orders and payments, Syddall sent lulling emails attempting to cover up and prolong the fraud. In addition, Syddall concealed financial transactions by laundering proceeds from the wire fraud into third-party accounts. Syddall then directed the transfer of the money into accounts over which he had control. The government identified approximately $700,000 in restitution.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case. The FBI and IRS Criminal Investigation conducted the investigation.
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Union County Man Sentenced to 33 Months in Prison for Role in Conspiracy to Target Asian Small Business Owners in Residential BurglariesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 33 months in prison for his role in a conspiracy that targeted residences belonging to Asian small business owners, U.S. Attorney Philip R. Sellinger announced.
Kevin Jackson, 57, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge Evelyn Padin to an information charging him with one count of conspiracy to commit interstate transportation of stolen property. Judge Padin imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From Dec. 2, 2016, to March 20, 2019, Jackson participated in a conspiracy to burglarize the residences of certain Asian small business owners living in New Jersey, New York, Pennsylvania, and Delaware, stealing large sums of money, valuable jewelry, and other items and transporting the stolen goods in interstate commerce, including to residences in New Jersey and Pennsylvania.
In addition to the prison term, Judge Padin sentenced Jackson to three years of supervised release and ordered restitution of $294,586.
U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing. He also thanked the South Plainfield Police Department, the Middlesex County Prosecutor’s Office, the New Jersey State Police, the Port Authority of New York and New Jersey, the U.S. Department of Labor, the U.S. Department of State, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of Transportation, the U.S. Postal Inspection Service, the Union County Prosecutor’s Office, and the Bernards Township, Bethlehem Township, Cherry Hill, Cinnaminson, Clark, Colonial Regional, Cranford, Delaware State Police-Troop 2, Delran, Edison, East Brunswick, East Hanover, Eatontown, Elizabeth, Essex County Sheriff’s Office-Bureau of Narcotics, Evesham Township, Exeter Township, Fair Lawn, Forks Township, Fort Lee, Franklin Township, Glassboro, Gloucester Township, Hackensack, Haverstraw, Hazlet, Highland Park, Hillside, Hillsborough Township, Howell Township, Jackson, Kenilworth, Lawrence Township, Linden, Lyndhurst, Mahwah, Marlboro Township, Maywood, Middletown, Montgomery County, Montville, Morris Township, Mount Laurel, Mountainside, New Castle County, New Providence, New York Police Department’s 105th Detective Squad, North Brunswick, North Plainfield, Old Bridge, Paramus, Parsippany, Phillipsburg, Piscataway, Pocono Mountain Regional, Pocono Township, Raritan, Roselle Park, Sayreville, Somerville, South Brunswick, South River, South Whitehall Township, Spotswood, Town of Tuxedo, Tinton Falls, Toms River, Township of Ocean, Union, Upper Macungie Township, Wall Township, Warren, Washington Township, Watchung, Westfield, Whitehall Township, and Woodbridge Township police departments.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the U.S. Attorney’s Office Cybercrime Unit in Newark.
U.S. Attorney's Office Observes National Police WeekRead the Press Release
CHARLOTTE, N.C. – In observance of National Police Week, U.S. Attorney Dena J. King and the U.S. Attorney’s Office for the Western District of North Carolina recognize the service and sacrifice of federal, state, local, and Tribal law enforcement and pay tribute to the officers who have fallen in the line of duty. National Police Week is observed Saturday, May 11 through Friday, May 17, 2024.
“Throughout National Police Week, we pay tribute to the courageous men and women in law enforcement who made the ultimate sacrifice in service. We will forever remember their valor, dedication, and selflessness in the face of danger,” said U.S. Attorney King. “We also stand in solidarity with our federal, state, local and Tribal law enforcement partners, as we express our gratitude for their unwavering commitment to uphold justice and serve our communities with integrity and distinction.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.
The names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial will be read on Monday, May 13, 2024, at the 36th Annual Candlelight Vigil in Washington, D.C., starting at 8:00 p.m. EST. To view a livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
U.S. Attorney Ryan K. Buchanan Recognizes National Police WeekRead the Press Release
ATLANTA – In honor of National Police Week, U.S. Attorney Ryan K. Buchanan recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 12, 2024, through Saturday, May 18, 2024.
“Every day, law enforcement officers selflessly risk their lives to help protect our families, friends, and neighbors, and all while facing unforeseen dangers,” said U.S. Attorney Ryan K. Buchanan. “We are grateful for the dedication and bravery of these men and women and their commitment to public safety.”
In 1962, U.S. President John F. Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. The National Law Enforcement Officer Memorial Fund’s preliminary report indicates that 136 law enforcement officers died in the line of duty in 2023.
During National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. Here in the Northern District of Georgia we also solemnly commemorate the five officers who tragically died in the line of duty within the past year:
- Sergeant Marc Andrew McIntyre, Spalding County Sheriff's Office, End of Watch: December 29, 2023
- Officer Kenya D. Galloway, Atlanta Police Department, End of Watch: January 4, 2024
- Deputy Sheriff Eric A. Minix, Coweta County Sheriff's Office, End of Watch: January 4, 2024
- Trooper Jimmy Cenescar, Georgia State Patrol, End of Watch: January 28, 2024
- Trooper First Class Chase Winston Redner, Georgia State Patrol, End of Watch: February 20, 2024
Each year, the National Law Enforcement Officer Memorial Fund in Washington, D.C. also hosts an Annual Candlelight Vigil to memorialize those who sacrificed their lives. The names of hundreds of officers killed in the line of duty are engraved on the walls of the Memorial and their names will be read aloud during the 36th Annual Candlelight Vigil being held tonight, Monday, May 13, 2024, at 8:00 p.m. Eastern Time. The Candlelight Vigil will be livestreamed on YouTube, Facebook, and Twitter.
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.
U.S. Attorney Jesse Laslovich recognizes National Police WeekRead the Press Release
BILLINGS — In honor of National Police Week, U.S. Attorney Jesse Laslovich, for the District of Montana, recognizes the public service and sacrifice of federal, state, local and tribal law enforcement. This year, the week is observed from Sunday, May 12, through Saturday, May 18.
“This week, we pay special tribute to the men and women in law enforcement who selflessly risk their lives every day to protect us. Far too many have sacrificed their lives to make our communities safer, and we honor their legacies and bravery by reaffirming our commitment to every law enforcement officer making our communities safer. On behalf of all of us in the United States Attorney’s Office, I extend my heartfelt appreciation for all they do every day,” U.S. Attorney Laslovich said.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), the names of 282 officers killed in the line of duty were added this year to the National Law Enforcement Officers Memorial in Washington, D.C. These 282 officers include 118 officers who were killed during 2023. An additional 164 officers died in years prior to 2023. Many of their stories of sacrifice had been lost until now. Currently, there are 24,067 names, dating back to the first known death in 1786, engraved on the memorial.
The names of the fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Monday, May 13, during the 36th Annual Candlelight Vigil in Washington, D.C., starting at 8:00 p.m. ET. Those who wish to view the vigil live online can watch on the NLEOMF YouTube channel found at https://youtu.be/_AJEOg_3npQ. The schedule of National Police Week events is available on NLEOMF’s website at https://nleomf.org/
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U.S. Attorney Duane A. Evans Recognizes National Police WeekRead the Press Release
NEW ORLEANS — In honor of National Police Week, United States Attorney Duane A. Evans recognizes the service and sacrifice given by federal, state, local, and Tribal law enforcement. National Police Week is being observed from Saturday, May 11 through Friday, May 17, 2024.
“This week our nation honors the noble contributions from our brave law enforcement professionals for their service to the public, especially in the Eastern District of Louisiana, said U.S. Attorney Evans. “We thank them for their invaluable dedication and sacrifice. We also praise them for their selfless choices to protect and serve, despite job dangers. Above all, we extend our condolences to the colleagues and loved ones of the officers who made the ultimate sacrifice. Know that you have our unwavering appreciation and support.”In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.
On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 have been added to the wall at the National Law Enforcement Officers Memorial and will be read during a Candlelight Vigil at 8:00 p.m. EDT. To view a livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
Two Sacramento Men Sentenced to Years in Prison for Conspiracy, Bank Fraud, and Aggravated Identity Theft Tied to Postal TheftsRead the Press Release
SACRAMENTO, Calif. — Carlos Aranda, 41, and Daniel Hunt, 38, both of Sacramento, were sentenced today to 66 and 57 months in prison, respectively, for conspiracy, bank fraud, and aggravated identity theft connected to postal thefts, United States Attorney Phillip A. Talbert announced.
According to court documents, Aranda, Hunt, and others engaged in a conspiracy to steal postal locks, create postal keys, and steal mail, all in order to obtain stolen checks. The conspirators periodically gathered together at motel rooms and elsewhere to alter or “wash” stolen checks together. The conspirators then took the checks and attempted to negotiate, deposit, and/or cash them. In total, conspirators were responsible for nearly $250,000 in check fraud.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorney Elliot C. Wong prosecuted the case.
Tracy Resident Sentenced to Serve Home Confinement and Probation for Computer Attack on Discovery Bay Water Treatment FacilityRead the Press Release
OAKLAND – Rambler Gallo was sentenced to serve six months of home confinement and 36 months of probation for intentionally causing damage to the computer network for the Discovery Bay Water Treatment Facility, located in the Town of Discovery Bay, Calif., and thereby threatening public health and safety. Specifically, Gallo intentionally uninstalled the main operational system for the water treatment plant that operates the automated monitoring system that protects the entire water treatment system, including monitoring and controlling the chemical levels and filtration of the water across all the Discovery Bay water service facilities. The sentence was handed down on Wednesday by Haywood S. Gilliam Jr., United States District Judge. The announcement was made by United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp.
Gallo, 53, of Tracy, Calif., was a full-time employee of a private Massachusetts-based company identified in the indictment as Company A, which contracted with Discovery Bay to operate the town’s wastewater treatment facility. The facility provides treatment for the water and wastewater systems for the town’s 15,000 residents. During his employment with Company A, from July of 2016 until December of 2020, Gallo was the company’s “Instrumentation and Control Tech,” with responsibility for maintaining the instrumentation and the computer systems used to control the electromechanical processes of the facility in Discovery Bay.
According to his plea agreement, while Gallo was employed with Company A, he installed software into his own personal computer and into Company A’s private internal network that allowed Gallo to gain remote access to Discovery Bay’s Water Treatment facility computer network. Gallo resigned from his employment with Company on November 25, 2020, giving two weeks’ notice. Approximately five weeks later, Gallo accessed the facility’s computer system remotely and transmitted a command to uninstall certain software which was designed to perform as the main hub of the facility’s computer network.
The software that Gallo accessed protected the entire water treatment system, including water pressure, filtration, and chemical levels. Documents filed by the government in connection with Gallo’s sentencing describe how Gallo’s actions took the monitoring software offline into the following day when it was discovered by employees. Employees thereafter took steps to rectify the situation and mitigate any potential damage to the water treatment system. The government argued that Gallo’s actions “were well thought out to be as disruptive as possible” and “caused a potential threat to the health and safety of the community’s water supply.”
A federal grand jury indicted Gallo on June 27, 2023, charging him with one felony count of transmitting a program, information, code, and command to cause damage to a protected computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B)(i). Gallo pleaded guilty to the charge.
In addition to the prison term, Judge Gilliam ordered Gallo to forfeit his computer and to pay $44,250 restitution.
Assistant United States Attorney Cynthia Frey is prosecuting this case with assistance from Kathy Tat and Kevin Costello. The case is being investigated by the FBI.
Three More Accused of Role in Scamming Elderly NationwideRead the Press Release
ST. LOUIS – Three people from California have been federally indicted and accused of participating in a conspiracy that used Taiwanese passports, fraudulent immigration documents and bank accounts and “money mules” to scam elderly victims nationwide, joining four others also accused of a role.
On May 8, Bowen Chen, 21, of Monterey Park, Jiacheng Chen, 19, of East San Gabriel, and Vianne Chen, a.k.a. Tingting T. Chen, 41, were added to an indictment in U.S. District Court in St. Louis. Four other Californians have already been indicted on charges including conspiracy to commit mail, bank and wire fraud: Liang Jin, 24, of Walnut, Tsz Yin Kan, 41, of Chino Hills, Kaiyu Wen, 25, of Irvine, and Yu-Chieh Huang, 22, of Chino Hills.
The expansion of the initial case in St. Louis was part of the Money Mule Initiative, an annual campaign to identify, disrupt, and criminally prosecute networks of individuals who transmit funds from fraud victims to international fraudsters. Fraudsters rely on money mules to aid a range of fraud schemes, including those that predominantly impact older Americans, such as lottery fraud, romance scams and grandparent scams as well as those that target businesses or government pandemic funds. This year, law enforcement took action to stop over 3,000 money mules. These actions ranged from criminal prosecutions to letters warning those who may have been unknowingly recruited by fraudsters. Agencies are also educating the public about how fraudsters use money mules and how to avoid unknowingly assisting fraud by receiving and transferring money.
The St. Louis indictment accuses Kan of setting up "USA You Yi Sheng Inc." as an education service business in California. Kan then produced fraudulent immigration paperwork known as the Form I-20, or "Certificate of Eligibility for Nonimmigrant Student Status," the indictment says. Vianne Chen, a bank employee, as well as Kan and others opened student checking accounts using the fake I-20 forms and Taiwanese passports that had been shipped to Kan, the indictment says.
Other scammers targeted older Americans with tech support fraud, romance fraud, and imposter schemes and tricked their victims into collecting and delivering large amounts of cash to money mules like Huang, the indictment says. Using the fraudulently-opened bank accounts, couriers converted the cash they collected from fraud victims and others engaged in criminal activity into cashier’s checks that they deposited into a bank account that has received more than $7 million, the indictment says.
Bowen Chen was the largest depositor into that account, accounting for $1.3 million, the indictment says. Jiacheng Chen deposited approximately $615,000 and Kan deposited $440,000, it says.
Huang was the first to be charged in the case. In August, an elderly Missouri man was told via a pop-up ad that his computer was infected with a virus. He and his wife were then falsely told that someone had been accessing child pornography through the computer and they would have to pay $88,000 to avoid prosecution, according to charging documents. The Missouri couple gathered the money, but got suspicious and contacted police, who arrested Huang.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Tracy Berry and Kyle Bateman are prosecuting 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.
Three Admit Half-Million Dollar Health Care Fraud ConspiracyRead the Press Release
ST. LOUIS –The former owner, office manager, and business manager of a St. Louis County, Missouri-based home health care company pleaded guilty to a federal charge Monday and admitted involvement in a health care fraud conspiracy that fraudulently billed the Missouri Medicaid program more than $552,000.
Doriann Morgan, 58, of St. Louis County, Thalisa Walton, 46, of Hazelwood, and Barbara Jackson, 59, of St. Louis, pleaded guilty to a felony charge of conspiracy to commit health care fraud in three separate hearings in U.S. District Court in St. Louis.
They each admitted that from roughly January 2018 to August 2021, they conspired to submit fraudulent reimbursement claims to Missouri’s Medicaid program for personal care services that were never provided. They admitted receiving $552,659.
Jackson was business manager of A Mother’s Touch In-Home Care LLC, responsible for recruiting clients and assigning employees to provide care. Morgan owned the company and submitted Medicaid claims. Walton was office manager.
Morgan, Walton and Jackson are no longer affiliated in any way with A Mother’s Touch In-Home Care LLC, which continues to do business under new ownership.
The three submitted fraudulent claims for personal care services purportedly provided by Jackson for a woman who did not live in Missouri and received no services, their plea agreements say. They also submitted claims for providing services for clients at times when their own social media posts showed them doing something else.
In a separate civil settlement, Morgan, Walton and Jackson agreed to pay $910,000 to resolve allegations that they violated the False Claims Act by billing Missouri Medicaid using false timesheets and payroll records for in home services that were never provided. The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Michele Bickley. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Ms. Bickley will receive $90,090 of the proceeds from the settlement.
“HHS-OIG is committed to protecting our communities and taxpayer funds from schemes targeting Missouri's Medicaid program, which provides necessary services to vulnerable populations,” said Special Agent in Charge Linda Hanley of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working proudly with the Missouri Attorney General’s Medicaid Fraud Control Unit and our other law enforcement partners, our agency will continue to investigate those who threaten the integrity of federal and state health care programs and the people served by them.”
The three are scheduled to be sentenced August 26. The charge is punishable by up to 10 years in prison, a $250,000 fine, or both prison and a fine.
The U.S. Department of Health and Human Services Office of Inspector General and the Missouri Attorney General’s Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorneys Suzanne Moore and Derek Wiseman are prosecuting the case.
Ten Individuals Charged with Theft of Federal Program Funds from Tuskegee UniversityRead the Press Release
Montgomery, Alabama – Today, United States Attorney Jonathan S. Ross announced that a grand jury has indicted ten individuals for theft of federal program funding from Tuskegee University. Tuskegee University, located in Macon County, Alabama, receives federal funding in excess of $10,000 per calendar year.
The individuals named in the indictment are: (1) Wanda Tyner Hairston, 51, from Auburn, Alabama; (2) Lora Regina Baker, 52, from Montgomery, Alabama; (3) Keyonn Dalarrion Cannon, 26, from Tuskegee, Alabama; (4) Lanequia Shanice Cooper, 29, also from Auburn; (5) Ledaryl Tremayne Johnson, 27, from Tuskegee, Alabama; (6) Jeanette Moss-Smith, 50, also from Auburn; (7) Cassandra Harris Parker, 61, also from Tuskegee; (8) Phyllis Vanessa Tyner, 57, also from Auburn; (9) Morris Gene Welch, another resident of Auburn; and (10) Abraham Torbert Wright, Jr., 23, also from Tuskegee. All ten are charged with conspiracy to commit federal program theft.
According to the indictment, Cassandra Harris Parker, Lora Regina Baker, Jeanette Moss-Smith, and Wanda Tyner Hairston were Tuskegee University employees during the time frame of the alleged conspiracy, which began at an unknown date and continued to the year 2020. As Purchasing Manager, Parker created purchase orders indicating money was owed to co-conspirators so that checks would be issued to them. Baker worked in the Accounts Payable Department and entered the check requests into the university’s accounting system, causing the checks to be issued. Moss-Smith signed the check request forms and Hairston assigned grant codes to the forms confirming sufficient funds existed to cover the checks. Once issued, Parker delivered the checks to the co-conspirators. The indictment alleges that Cannon, Cooper, Johnson, Tyner, Welch, and Wright, Jr., each cashed checks provided to them as part of the scheme. The indictment further alleges that the ten named individuals conspired to steal federal program funds through the wrongful issuance of these checks. In addition to the conspiracy charges, Parker, Baker, Moss-Smith, and Hairston are also charged with theft concerning programs receiving federal funds.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The conspiracy to commit federal program theft charge carries a potential sentence of up to five years in prison. In addition, Parker, Baker, Moss-Smith, and Hairston, face sentences of up to ten years for the charge of theft concerning programs receiving federal funds. Trials for each defendant is currently scheduled for August 12, 2024.
“The United States Attorney’s Office considers the theft of federal dollars to be a serious crime,” said United States Attorney Ross. “My office will continue to prosecute those who exploit federal programs and who exploit the institutions, like Tuskegee University, entrusted with using federal program funds for their intended purposes.”
“This constitutes a flagrant misuse of federal grant funds for personal use,” said Special Agent in Charge Tamala Miles with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We remain committed to collaborating with our law enforcement partners to uphold the integrity of HHS programs.”
The U.S. Department of Agriculture - Office of Inspector General, the Department of Health and Human Services - Office of Inspector General, and the Alabama Law Enforcement Agency investigated this case, which Assistant United States Attorney Christopher P. Moore is prosecuting.
Supreme Court Denies Cert in UDF Case, Upholding Four ConvictionsRead the Press Release
The United States Supreme Court on Monday declined to review the United Development Funding (UDF) case, allowing a Fifth Circuit decision upholding the convictions of four company executives to stand, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In January 2022, a federal jury convicted UDF CEO Hollis Morrison Greenlaw, UDF Partnership President Benjamin Lee Wissink, UDF CFO Cara Delin Obert, and UDF Asset Management Director Jeffrey Brandon Jester of ten counts, including conspiracy to commit wire fraud affecting a financial institution, conspiracy to commit securities fraud, and securities fraud. The UDF executives were sentenced in May 2022 to a combined 20 years in federal prison.
That same month, the UDF executives appealed their convictions to the Fifth Circuit. Following oral argument, the Fifth Circuit affirmed the UDF executives’ convictions and noted the government’s “avalanche of evidence” proving its case. After the Fifth Circuit denied rehearing en banc, the UDF executives asked the Supreme Court to review their case.
On Monday, the Supreme Court denied certiorari without comment.
Assistant U.S. Attorneys Amy Burch, Amy Mitchell, Elise Aldendifer, and Brian McKay handled the appeal in the Fifth Circuit. Assistant U.S. Attorneys Tiffany H. Eggers, Rachael Jones, Elyse Lyons, and Errin Martin prosecuted the case in the district court.
State of Rhode Island Found to be in Violation of Federal Disability Laws for Over-Hospitalization of Children with Behavioral Disabilities in State CareRead the Press Release
PROVIDENCE, RI - An investigation by the United States Attorney’s Office for the District of Rhode Island and the United States Department of Health and Human Services Office of Civil Rights (HHS OCR) has found that the State of Rhode Island has violated federal civil rights laws by routinely and unnecessarily segregating children with mental health and/or developmental disabilities at Bradley Hospital, an acute-care psychiatric hospital, announced United States Attorney Zachary A. Cunha and HHS OCR Director Melanie Fontes Rainer.
As detailed in a Letter of Findings transmitted to the Governor of Rhode Island and the Director of the Rhode Island Department of Children, Youth and Families (DCYF), the federal government’s comprehensive, multi-year investigation found that, rather than complying with its legal obligation to provide services in the most integrated setting appropriate to the needs of these children, the state has instead left them hospitalized at Bradley for far longer than is necessary.
While Bradley Hospital inpatient admissions are designed to last only one to two weeks, the federal investigation concluded that children with behavioral health disabilities in DCYF’s care were often forced to languish in the hospital for weeks, months, and, in some cases, for more than a year, despite being ready for discharge, and despite the fact that these children would be better served in a family home.
The investigation found that DCYF failed to ensure that children with disabilities were able to access the intensive in-home and community-based services they need, and failed to facilitate prompt discharges from Bradley Hospital to family homes, resulting in extended and unnecessary hospitalization, or risk of future hospitalization, all in violation of federal law, specifically Title II of the Americans with Disabilities Act and Section 504 of the Rehabilitation Act of 1973.
“It is nothing short of appalling that the state has chosen to warehouse children in a psychiatric institution, rather than stepping up to provide the community care, support, and services that these kids need, and that the law requires,” remarked U.S. Attorney Zachary A. Cunha. “I am hopeful that the findings we announce today will spur swift action by the state to meet its obligations under federal law, and far more importantly, to ensure that the civil rights of these children are upheld.”
“Children with disabilities should be able to come home to the love and support of their families and not be confined to an institution for months on end,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue our vigorous enforcement of the ADA to ensure that children with disabilities can receive the community-based services they need to live with their families and participate in their communities.”
“Today’s finding follows on the heels of the Office for Civil Rights’ efforts to strengthen access to care for people with disabilities like these children,” said HHS OCR Director Melanie Fontes Rainer. “We must do better by our children and the communities we serve, and States and others must follow federal civil rights laws to ensure every child can access care free from discrimination. As we approach the 25th anniversary of the Olmstead decision, today’s action also emphasizes our commitment to continue to protect the critical right of individuals to live in their own homes and communities.”
As detailed in the government’s Letter of Findings, from January 1, 2017, through September 30, 2022, a staggering 527 children either in DCYF care and custody, or receiving services voluntarily through DCYF, were admitted to Bradley Hospital. Of these 527, 116 were hospitalized in a single admission for more than 100 consecutive days; 42 were hospitalized for more than 180 days; and seven children were hospitalized for more than one year. Many of these children were subjected to these avoidable and unnecessarily lengthy hospitalizations at Bradley because DCYF failed to provide the community-based services they need. Keeping a child hospitalized for an extended period when their needs could be served in a less restrictive setting only serves to exacerbate the child’s acute needs. Indeed, the investigation found that extended hospitalization often traumatizes the children as well as their families.
According to the Letter of Findings, DCYF also does not plan for hospital discharges in a way that places children in the most integrated setting appropriate to meet their needs. DCYF’s failure to look for placements in a family home setting with services leads both to delayed discharges and to inappropriate placements post-discharge, which, in turn, often leads to subsequent hospitalizations
This joint investigation by the United States Attorney’s Office and HHS OCR was conducted by Assistant U.S. Attorney Amy R. Romero and Equal Opportunity Specialist Erin Walker of HHS.
The ADA, Section 504, and the Supreme Court’s ruling in Olmstead v. L.C., require state and local governments to make services available to people with disabilities in the most integrated setting appropriate to their needs, regardless of age or type of disability. Enforcement of Title II of the ADA, Section 504, and the integration mandate of the Olmstead decision, is a priority of the Department of Justice and Department of Health and Human Services.
Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD). For more information on Section 504 of the Rehabilitation Act and how it protects individuals with disabilities, visit: https://www.hhs.gov/civil-rights/for-individuals/disability/index.html. For more information about OCR’s Olmstead activities, visit: https://www.hhs.gov/civil-rights/for-individuals/special-topics/community-living-and-olmstead/index.html.
Individuals who believe their civil rights have been violated can file a complaint with the Office for Civil Rights at: www.hhs.gov/civil-rights/filing-a-complaint/index.html. Anyone in Rhode Island may also report civil rights violations directly to the U.S. Attorney’s Office for the District of Rhode Island at https://www.justice.gov/usao-ri/civil-rights-enforcement or 401-709-5000.
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us_ada_and_section_504_violation_findings_letter_to_rhode_island_5.13.24_508.pdfSports Equipment Sales Professional Pleads Guilty to Long-Running Bid Rigging Schemes and Conspiracy to Defraud Public SchoolsRead the Press Release
A former sales employee of a manufacturer and distributor of football helmets and other sports equipment pleaded guilty today for his role in three separate conspiracies — two conspiracies to rig bids in violation of the Sherman Act and one conspiracy to commit wire fraud — all related to sports equipment for schools located in Mississippi and elsewhere. At least 100 schools throughout Mississippi and elsewhere were victims of these conspiracies.
According to court documents, Charles Ferrell Trimm conspired with two unnamed sports equipment distributors and numerous individuals to rig bids from August 2020 through November 2022 and from May 2021 to February 2023, respectively. Trimm and his co-conspirators agreed to submit complementary bids to schools located in Mississippi and elsewhere in order to obtain procurements for school sports equipment and related services. Trimm also conspired with unnamed co-conspirators to commit wire fraud by submitting false bids to schools located in Mississippi and elsewhere from May 2016 to July 2023. As a part of this scheme, Trimm and others used an unidentified individual’s identity without authorization, including by forging the individual’s signature.
“The charged criminal schemes harmed public schools by subverting their procurement processes and providing the false appearance of competition for precious taxpayer dollars,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division and its partners will continue to protect taxpayers and students across the country by stopping bid rigging and fraud that targets government procurements wherever we find it, including at the state and local levels.”
“The conspirators took advantage of schools in Mississippi by rigging bids to affect the prices schools paid for sports equipment,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “The Justice Department is committed to prosecuting these types of anti-competitive practices and ensuring that schools and other buyers can obtain goods and services from a fair and open marketplace.”
“Charles Trimm and his co-conspirators’ actions fraudulently deprived public schools of valuable resources to support students,” said Acting Special Agent in Charge Rebecca Day of the FBI Jackson Field Office. “The FBI is committed to working with our partners to hold individuals like Trimm accountable for their actions.”
Trimm faces a maximum penalty of 10 years in prison and a $1 million criminal fine for the Sherman Act violation. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime. Trimm faces a maximum penalty of 20 years in prison, a criminal fine and court-ordered restitution for the fraud charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s Washington Criminal Section and the FBI investigated this case as part of an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the school sports equipment industry.
Trial Attorneys Jill Rogowski, Laura Butte, Marc Hedrich and Evan Binder of the Justice Department’s Antitrust Division prosecuted the case.
In November 2019, the Justice Department created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force.
Sports Equipment Sales Professional Pleads Guilty to Long-Running Bid Rigging Schemes and Conspiracy to Defraud Public SchoolsRead the Press Release
Jackson, Miss. - A former sales employee of a manufacturer and distributor of football helmets and other sports equipment pleaded guilty today for his role in three separate conspiracies — two conspiracies to rig bids in violation of the Sherman Act and one conspiracy to commit wire fraud — all related to sports equipment for schools located in Mississippi and elsewhere. At least 100 schools throughout Mississippi and elsewhere were victims of these conspiracies.
According to court documents, Charles Ferrell Trimm conspired with two unnamed sports equipment distributors and numerous individuals to rig bids from August 2020 through November 2022 and from May 2021 to February 2023, respectively. Trimm and his co-conspirators agreed to submit complementary bids to schools located in Mississippi and elsewhere in order to obtain procurements for school sports equipment and related services. Trimm also conspired with unnamed co-conspirators to commit wire fraud by submitting false bids to schools located in Mississippi and elsewhere from May 2016 to July 2023. As a part of this scheme, Trimm and others used an unidentified individual’s identity without authorization, including by forging the individual’s signature.
“The charged criminal schemes harmed public schools by subverting their procurement processes and providing the false appearance of competition for precious taxpayer dollars,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division and its partners will continue to protect taxpayers and students across the country by stopping bid rigging and fraud that targets government procurements wherever we find it, including at the state and local levels.”
“The conspirators took advantage of schools in Mississippi by rigging bids to affect the prices schools paid for sports equipment,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “The Justice Department is committed to prosecuting these types of anti-competitive practices and ensuring that schools and other buyers can obtain goods and services from a fair and open marketplace.”
“Charles Trimm and his co-conspirators’ actions fraudulently deprived public schools of valuable resources to support students,” said Acting Special Agent in Charge Rebecca Day of the FBI Jackson Field Office. “The FBI is committed to working with our partners to hold individuals like Trimm accountable for their actions.”
If convicted, for the Sherman Act violation, Trimm faces a maximum penalty of 10 years in prison and a $1 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime. If convicted of the fraud charge, Trimm faces a maximum penalty of 20 years in prison, a criminal fine and court-ordered restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s Washington Criminal Section and the FBI investigated this case as part of an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the school sports equipment industry.
Trial Attorneys Jill Rogowski, Laura Butte, Marc Hedrich and Evan Binder of the Justice Department’s Antitrust Division prosecuted the case.
In November 2019, the Justice Department created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force.
Slidell Man Indicted for Manufacturing Explosive Materials Without a License and Unlawful Storage of Explosive MaterialRead the Press Release
NEW ORLEANS, LOUISIANA – DEVIN JUNEAU (JUNEAU), age 38, a resident of Slidell, Louisiana was charged on May 9, 2024 by a federal grand jury in a four-count indictment announced U.S. Attorney Duane A. Evans. Counts 1, 2, and 3 charges him with engaging in the business of manufacturing and dealing in explosive materials without a license, in violation of Title 18, United States Code, Sections 842(a)(1) and 844(a)(1). Count 4 charges him with improper storage of explosive materials, in violation of Title 18, United States Code, Sections 842(j) and 844(b), and Title 27, Code of Federal Regulations, Section 555.201, et seq.
If convicted, JUNEAU faces up to 10 years of imprisonment, up to a $250,000 fine, and up to 3 years of supervised release for Counts 1, 2, and 3, and up to 1 year of imprisonment, up to a $250,000 fine, and up to 3 years of supervised release for Count 4. JUNEAU also faces payment of a $100 mandatory special assessment fee as to all 4 counts.
According to court documents, on February 6, 2024, March 6, 2024, and May 1, 2024, JUNEAU manufactured and sold explosive materials without a license, and did not store the explosive materials as required by law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crime Unit.
Six Members of Violent Transnational Gang Convicted in Connection with Two Killings and Racketeering ActivityRead the Press Release
WASHINGTON – Six members of “18th Street,” a violent international street gang, were found guilty in U.S. District Court on an array of charges that included racketeering, kidnapping, and murder.
The convictions were announced today by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, ICE Deputy Director Russ Hott of U.S. Immigration and Customs Enforcement Division of Enforcement and Removal Operations (ICE-ERO), and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
A federal jury in Washington D.C. deliberated for three days before delivering the verdicts to U.S. District Judge Trevor N. McFadden. The Court published the verdicts on Friday and today. Judge McFadden scheduled sentencings for September 20; September 27; October 4; and October 11, 2024.
The 18th Street organization engages in a variety of criminal activities throughout the United States, including in the District, Virginia, and Maryland Its activities have included acts of murder, kidnapping, assault, robbery, witness intimidation, and firearms and narcotics trafficking to fuel the gang’s violent operations. The gang is active throughout Central and South America -- particularly in El Salvador, Guatemala, and Honduras -- and has established a presence in Europe. It uses violence to maintain control over specific geographical areas.
This investigation began in 2019 and looked into the full breadth of criminal activity 18th Street was involved in within the greater D.C. metropolitan area. As the investigation into 18th Street’s racketeering activities progressed, it began to center on a series of murders, attempted murders, and kidnappings of suspected rivals and members suspected of disloyalty.
One such act was the attempted murder of C.H. on May 21, 2021. With respect to that offense, the evidence at trial showed that Jexon Madrid-Flores and another 18th Street member brandished a firearm at C.H. as the latter stopped at a convenience store in Columbia Heights that afternoon during the middle of an afternoon bike ride. Defendant Madrid-Flores and the other gang member then followed C.H. and pulled up their vehicle alongside the victim, who was riding his bike in the bike lane. From their vehicle, the other 18th Street member discharged multiple rounds at C.H. in broad daylight, striking C.H. in the leg. The evidence showed that Madrid-Flores believed the victim to be a member of a rival gang and had hoped for a promotion within 18th Street for attempting to murder a potential rival.
The investigation also entailed the July 14, 2021, murder of Carlos Ramos Martinez in a wooded area near Elkton, MD. Martinez, aka “FIRE,” was a member of a rival faction of 18th Street called the Revolucionarios and was believed to be recruiting members away from the LCB clique. According to the seven-count superseding indictment, Jose Santos Alvarado-Velasquez and Gerlin Neptali Diaz-Lopez killed Ramos Martinez. Carlos Rolando Martinez-Mora and Jose Anselmo Ibarra-Cristales participated in planning and facilitating the slaying, respectively. Alvarado-Velasquez, Diaz-Lopez, and Ibarra-Cristales were in the U.S. illegally at the time.
The investigation also involved a second murder committed in Rockville, MD, on December 19, 2021. According to the superseding indictment, Rolando Martinez-Mora planned and ordered the killing of a suspected member of MS13, Danis Alcides Salgado Mata. As a result, Mata was shot and killed on the heels of his mother’s wedding celebration. Mata’s mother and stepfather were also shot but survived their injuries.
A dozen members of 18th Street were arrested and charged in the conspiracy. The first trial against six of the defendants commenced on April 10, 2024, and concluded last week. A second group of 18th Street gang members will be tried in July 2024.
According to the indictment, members of 18th Street are required to commit acts of violence to further the interests of the gang. These violent acts are often directed against rival gang members, 18th Street members who violate gang rules or otherwise disrespect the gang, and persons who are suspected of cooperating with law enforcement. Additionally, 18th Street members sell and transport narcotics, weapons, and other contraband to generate money to support the gang and its criminal activities. Some of the proceeds of this criminal activity are wired to members of the gang’s leadership in other countries. 18th Street members control geographical areas and use violence to maintain their control.
18th Street – a gang founded in Los Angeles that now includes up to 50,000 members – is organized into “cliques,” or smaller groups operating within specific cities or regions that all operate under the umbrella rules of 18th Street to include the following: the Tiny Locos Sureños (TLS), Los Crazy Brothers (LCB), and the Revolucionarios.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the FBI Washington Field Office, the Department of Homeland Security’s Immigration and Customs Enforcement - Enforcement Removal Operations, the U.S. Marshals Service, the Metropolitan Police Department (MPD), and the Montgomery County, Maryland Police Department. The District of Columbia Department of Forensic Sciences and the Montgomery County, Maryland State’s Attorney’s Office provided valuable assistance.
The case is being prosecuted by Assistant U.S. Attorneys Jack Korba, Will Hart, and Sitara Witanachchi. Valuable assistance was provided by former Assistant U.S. Attorneys Gilead Light and Christopher Marin.
18th STREET DEFENDANTS
NAME
AGE
AKA
CLIQUE
CONVICTED OF
Jose Santos Alvarado-Velasquez,
Takoma Park, MD
22
“Vago”
Los Crazy Brothers
Racketeer Influenced and Corrupt Organizations (RICO) -Conspiracy; Violent Crimes in Aid of Racketeering (VICAR)- Murder; Conspiracy to Commit Kidnapping Resulting in Death; Kidnapping Resulting in Death; Discharge of a Firearm – Crime of Violence; Unlawful Possession of a Firearm – Illegal Alien
Gerlin Neptali Diaz-Lopez
Washington, D.C.
22
“Sicario”
Tiny Locos Sureños
RICO-Conspiracy; VICAR-Murder; Conspiracy to Commit Kidnapping Resulting in Death; Kidnapping Resulting in Death; Discharge of Firearm – Crime of Violence; Unlawful Possession of a Firearm – Illegal Alien
Jose Anselmo Ibarra-Cristales
Beltsville, MD
23
“Chemo”
Los Crazy Brothers
RICO-Conspiracy, VICAR-Murder; Conspiracy to Commit Kidnapping Resulting in Death;
Carlos Rolando Martinez-Mora
Hyattsville, MD
24
“Crosty”
Los Crazy Brothers
RICO-Conspiracy; VICAR-Murder x2; Conspiracy to Commit Kidnapping Resulting in Death; Kidnapping Resulting in Death
Bradley Andree Martinez-Mora
Hyattsville, MD
21
“Joker”
Los Crazy Brothers
RICO-Conspiracy; Conspiracy to Commit Kidnapping Resulting in Death
Jexon Madrid-Flores
Boston, MA
22
“Spooky”
Tiny Locos Sureños
RICO-Conspiracy; Conspiracy to Commit Kidnapping Resulting in Death
VICAR-Attempted Murder;
VICAR-ADW; Brandishing a Firearm During a Crime of Violence; Discharging a Firearm During a Crime of Violence; Aggravated Assault while Armed
Rochester man pleads guilty for his role in illegal sports betting ringRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Louis P. Ferrari, II, 42, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to conspiracy to transmit wagering information in interstate commerce and conduct an illegal gambling business, which carries a maximum penalty of five years in prison, and a fine of $250,000.
Assistant U.S. Attorneys Meghan K. McGuire and Melissa M. Marangola, who are handling the case, stated that between April 25, 2019, and April 17, 2021, Ferrari conspired with Dominic Sprague, Anthony Amato, Tomasso Sessa, Joseph Lombardo, Jeffrey Boscarino, James Civiletti, and others, to finance, manage, and own all or part of an illegal bookmaking business, which had a gross daily revenue of approximately $2,000.00. In furtherance of the conspiracy, Ferrari, and co-defendant Amato, created accounts for Sprague, Boscarino, and Lombardo on “sport700.com”, a website for placing and tracking bets on sports events. Sprague, Boscarino, and Lombardo would call and text Ferrari to place, edit, and remove bets on sporting events for individual bettors on sport700.com. Ferrari also called and texted messages to Amato asking him to create accounts, change passwords, and place, edit, and remove bets for Sprague, Boscarino, Lombardo, and individual bettors on sport700.com.
Ferrari, Sprague, and Lombardo collected money owed by individual bettors and money owed to individual bettors in cash and through online payment applications, including CashApp, PayPal, Venmo, and Zelle. After Sprague and Lombardo collected from individual bettors, they kept a portion and paid the remainder to Ferrari. Sessa and Civiletti also collected from individual bettors in cash and through online payment applications, and then paid Sprague and Ferrari.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent-in-Charge Thomas Fattorusso, the New York State Police, under the direction of Major Miklos Szoczei II, the Greece Police Department, under the direction of Chief Michael Wood, and the Rochester Police Department, under the direction of Chief David Smith. Additional assistance was provided by the Monroe County District Attorney’s Office.
Sentencing is scheduled for August 7, 2024, at 3:00 p.m. before Judge Wolford.
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Registered Sex Offender Indicted for Federal Child Exploitation OffensesRead the Press Release
Jackson, TN – A federal grand jury in the Western District of Tennessee recently returned a multi-count indictment charging a registered sex offender, Markettus Lorenzo Broyld, 47, of Jackson, Tennessee, with new federal child exploitation offenses. United States Attorney Kevin G. Ritz announced the return of the indictment today.
Broyld is charged with production of child pornography, coercion and enticement of a minor, receipt and possession of child pornography, and commission of a felony offense involving a minor as a registered sex offender. These charges are related to Broyld’s interactions with a minor in the Jackson area in and around December 2022.
According to the indictment, Broyld engaged in electronic communications with a minor. During these communications, Broyld allegedly asked the minor to take and send sexually explicit photographs and videos, and the minor complied with that request. Also according to the indictment, Broyld engaged in the possession of child pornographic photographs and videos on his cell phone. Broyld is a convicted sex offender and was required to register under the sex offender registry in the state of Tennessee when these alleged offenses occurred.
If convicted on all counts, Broyld is facing a sentence of up to life in prison. This case is pending before United States District Court Judge S. Thomas Anderson in Jackson, Tennessee with a trial date of October 15, 2024. If Broyld is convicted of the charges, Judge Anderson will determine the sentence to impose on the defendant after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the FBI Memphis Child Exploitation Task Force and the Jackson Police Department. Anyone with additional information on this case is asked to contact FBI Task Force Officer Aubrey Richardson.
The charges and allegations contained in the indictment are merely accusations of criminal conduct, not evidence. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt and convicted through due process of law.
Assistant United States Attorney Josh Morrow is prosecuting this case on behalf of the government.
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For more information, please contact the media relations team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Raleigh County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Justin L. Saunders, 33, of Mabscott, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on May 30, 2023, law enforcement officers arrested Saunders on a felony warrant. During the arrest, officers found a Ruger model EC9s 9mm handgun on Saunders.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Saunders knew he was prohibited from possessing a firearm because of his prior felony convictions for first-degree robbery and malicious wounder in Raleigh County Circuit Court on June 5, 2012.
Saunders is scheduled to be sentenced on September 6, 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Raleigh County Sheriff's Office.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorneys Brian D. Parsons and Andrew D. Isabell are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-185.
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Providence Man Sentenced for Robbery and Assault of U.S. Postal CarrierRead the Press Release
PROVIDENCE, R.I. – A federal judge on Monday sentenced a Providence man in connection with the robbery and assault of a U.S, Postal Service carrier and the trafficking of more than 500 grams of cocaine, announced United States Attorney Zachary A. Cunha.
United States District Judge William E. Smith sentenced Juan Bautista Rosario-Sandoval, 31, to 40 months in federal prison following convictions for conspiracy to assault and rob a U.S. mail carrier, and conspiracy to possess more than 500 grams of cocaine. Rosario-Sandoval plead guilty to the charges on December 23, 2023.
According to court records, Rosario-Sandoval admitted that, on September 18, 2021, he and another person approached a U.S. mail carrier and conspired to forcibly take a Priority Mail Express Parcel addressed for delivery to a Providence address. When the postal carrier refused to hand over the package, Rosario-Sandoval and the second person opened the doors to the carrier’s Postal Service vehicle, began to pull at and punch the carrier, and then stole and fled with the package. The mail carrier suffered several injuries.
Rosario-Sandoval further admitted to receiving multiple packages of cocaine delivered through the U.S. Mail to addresses in Providence, with gross weights in excess of 500 grams of cocaine.
Rosario-Sandoval is a citizen of the Dominican Republic and will face immigration proceedings upon completion of his sentence.
The case was prosecuted by Assistant U.S. Attorney Ly Chin.
The matter was investigated by United States Postal Inspection Service agents, with the assistance of Providence Police and the Rhode Island State Police.
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Postal Service Supervisor Admits Misappropriation of Postal FundsRead the Press Release
CAMDEN, N.J. – A Cape May County, New Jersey, man today admitted misappropriating postal funds, U.S. Attorney Philip R. Sellinger announced.
Austin T. Mahan, 44, of Cape May Court House, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with misappropriating over $1,000 in postal funds.
According to documents filed in this case and statements made in court:
For approximately six months in 2022 and 2023, Mahan, who worked as a United States Postal Service (USPS) supervisor at the Sea Isle and Somers Point Post Offices at various times, misused USPS credit cards to make personal purchases at various retail stores operating in and around New Jersey. These purchases included thousands of dollars’ worth of gift cards as well as various home décor items, home renovation materials, power and handheld tools, tool storage equipment, and other personal items. The unauthorized expenses totaled $54,356.
The charge to which Mahan pleaded guilty is punishable by a maximum of 10 years in prison and a maximum potential fine of $250,000, or a sum equal to the amount of value of the money or property misappropriated from the offense. Sentencing is scheduled for Sept. 25, 2024.
U.S. Attorney Sellinger credited agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the complaint.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the Special Prosecutions Division in Camden.
mahan.information.pdfPittsburgh Man Previously Convicted of Drug and Firearm Felonies Sentenced to Five Years in Prison for Possession of Firearm and Large Quantity of CocaineRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to five years of imprisonment, to be followed by four years of federal supervised release, on his convictions for possession with intent to distribute over 500 grams of cocaine and possession of a firearm and ammunition by a convicted felon, United States Attorney Eric G. Olshan announced today.
United States Senior District Judge Nora Barry Fischer imposed the sentence on Allen Gregory Edmonds, 36.
According to information presented to the Court, on December 19, 2023, law enforcement executed federal search warrants upon Edmonds, his vehicle, and properties associated with him. In the living room of his Pittsburgh residence, investigators found a backpack containing approximately two kilograms of cocaine, a Schedule II controlled substance. The closet within Edmonds’ bedroom contained a loaded handgun, a search of the serial number of which revealed that it had been reported stolen. Edmonds previously had been convicted in the Court of Common Pleas in Allegheny County of both a felony drug trafficking offense and a felony firearm offense. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation and Pennsylvania State Police for the investigation leading to the successful prosecution of Edmonds.
Ohio Man Sentenced for Disabling Emissions Controls on Diesel TrucksRead the Press Release
A Hamilton County, Ohio, man was sentenced to prison today for violating the Clean Air Act through an aftermarket scheme to disable the emissions control systems of diesel trucks.
Davis Owens, 34, of Cleves, was sentenced to serve 30 days in prison, seven months of home confinement and one year of supervised release. He had previously pleaded guilty to one count of aiding and abetting the tampering of a monitoring device required under the Clean Air Act.
According to court documents, Owens was the co-owner of Holderdown Performance and owner of Cincy Diesel Performance. In 2020, Owens entered a Consent Agreement and Final Order (CAFO) with the Environmental Protection Agency (EPA) regarding allegations that he and Holderdown had knowingly worked to bypass or “defeat” components that controlled emissions on heavy duty diesel truck engines. Research has shown that bypassing a vehicle’s emissions components can increase particulate matter 40 times, nitrogen oxides 310 times, carbon monoxide 120 times and non-methane hydrocarbons 1,100 times.
Owens paid a $7,500 civil penalty as part of the CAFO and agreed that neither he nor Cincy Diesel Performance would manufacture, sell or install defeat devices. Investigation revealed that Owens and Cincy Diesel Performance continued to sell and install defeat devices as well as emissions deleting computer software until February 2022.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made the announcement.
The EPA’s Criminal Investigation Division and the Ohio Attorney General’s Bureau of Criminal Investigations investigated the case.
Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.
Ohio Man Pleads Guilty to Creating and Distributing Videos Depicting Monkey Torture and MutilationRead the Press Release
A plea agreement was unsealed today in which an Ohio man pleaded guilty to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys.
Ronald P. Bedra, of Etna, pleaded guilty to conspiring to create and distribute so-called “animal crush” videos. According to court documents, Bedra conspired with others to create and distribute the videos which depicted acts of sadistic violence against baby and adult monkeys, including having digits and limbs severed and being forcibly sodomized with a heated screwdriver.
The conspirators used encrypted chat apps to direct money to individuals in Indonesia willing to commit the requested acts of torture on camera. Bedra also mailed a thumb drive containing 64 videos of monkey torture to a co-conspirator in Wisconsin.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made the announcement.
The U.S. Fish and Wildlife Service and FBI investigated the case.
Trial Attorney Mark Romley and Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio are prosecuting the case.
New Orleans Man Pleads Guilty to Federal Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA –DANTE FRAZIER, age 33, a resident of New Orleans, pleaded guilty on May 9, 2024 before U.S. District Judge Eldon E. Fallon to possession with the intent to distribute 50 grams or more of methamphetamine and a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C); and being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), announced U.S. Attorney Duane A. Evans.
According to court documents, New Orleans Police Department (NOPD) officers responded to an emergency call and found FRAZIER passed out in the driver’s seat of a vehicle. After becoming aware of NOPD’s presence, FRAZIER drove into the neutral ground on Saint Claude Avenue, struck a median, and then drove into a gas station parking lot and fled on foot. While fleeing from NOPD, FRAZIER fired five shots from a firearm and then hid underneath a nearby house. NOPD officers located FRAZIER shortly after the pursuit. Inside his vehicle NOPD found over 50 grams of methamphetamine and 14 grams of cocaine, which FRAZIER intended to distribute. Before his instant arrest, FRAZIER had been convicted of three counts of armed robbery and possession with intent to distribute marijuana.
Related to his narcotics charges, FRAZIER faces a minimum of five years and up to 40 years in prison, a minimum of four years of supervised release, and up to a $5,000,000 fine. As for his firearm charge, he faces up to 10 years in prison, up to three years of supervised release, and up to a $250,000 fine. Each count also carries a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Mexico Man Indicted for Possessing - with Intent to Distribute - 47 Pounds of FentanylRead the Press Release
PHOENIX, Ariz. – Luis Angel Pulido, 22, of Rio Rancho, New Mexico, was indicted by a federal grand jury last week on one count of Possession with Intent to Distribute Fentanyl.
The indictment alleges that, on or about April 7, 2024, Pulido knowingly and intentionally possessed with the intent to distribute a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance. Pulido was stopped on Interstate 40, on the Navajo Nation Indian Reservation, in Sanders, Arizona, after committing civil traffic violations. During the traffic stop, a drug‑sniffing canine alerted on Pulido’s vehicle. Bureau of Indian Affairs officers searched the vehicle and discovered approximately 47 pounds of fentanyl pills hidden in the trunk.
Possession with Intent to Distribute Fentanyl carries a maximum sentence of 20 years in prison, a fine of up to $1,000,000, and up to lifetime supervised release.
Bureau of Indian Affairs is conducting the investigation in this case. Assistant U.S. Attorney Genevieve Ozark, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR-24-08044-PCT-DWL
RELEASE NUMBER: 2024-061_Pulido# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.