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3 May 2024
Justice Department Strengthens Efforts, Builds Partnerships to Address Violent Crime in Indian CountryRead the Press Release
The Justice Department joins its partners across the federal government, as well as people throughout American Indian and Alaska Native communities, in recognizing May 5 as National Missing or Murdered Indigenous Persons (MMIP) Awareness Day.
In recognition of MMIP Awareness Day, Attorney General Merrick B. Garland announced stepped up and continued efforts to tackle violent crime and other pressing public safety challenges, like the fentanyl crisis, which have negatively affected Native Americans, exacerbating violence and addiction in already vulnerable communities.
“There is still so much more to do in the face of persistently high levels of violence that Tribal communities have endured for generations, and that women and girls, particularly, have endured,” said Attorney General Merrick B. Garland. “In carrying out our work, we seek to honor those who are still missing, those who were stolen from their communities, and their loved ones who are left with unimaginable pain. Tribal communities deserve safety, and they deserve justice. This day challenges all of us at the Justice Department to double down on our efforts, and to be true partners with Tribal communities as we seek to end this crisis.”
The U.S. Attorney’s Office for the District of Wyoming is dedicated to maintaining and improving public safety on the Wind River Indian Reservation by assisting in investigations and prosecuting crimes committed there, including crimes involving missing and murdered Indigenous persons. Since 1995, the U.S. Attorney’s Office has maintained a branch office in Lander, Wyoming, to serve the Reservation. The staff of the Lander office, consisting of three experienced federal prosecutors and a paralegal, is focused on prosecuting violent crimes and drug trafficking crimes committed on the Reservation. The U.S. Attorney’s Office recently moved one of those three prosecutors from Cheyenne to Lander and it also added a fourth prosecutor, located in Cheyenne, to its Indian Country Prosecution Team. One of the prosecutors in Lander also serves as the office’s Tribal Liaison. In that role, she continually engages with Tribal and law enforcement officials, and other stakeholders, on the Reservation.
“The U.S. Attorney’s Office works closely with our federal, Tribal, state, and local law enforcement partners in and around the Reservation,” said U.S. Attorney Nicholas Vassallo. “We could not be effective without these partnerships.”
Like the U.S. Attorney’s Office, the FBI maintains an office in Lander to investigate crimes committed on the Reservation. In addition, the Bureau of Indian Affairs operates the Wind River Police Department and employs special agents on the Reservation.
Justice Department Prioritization of MMIP Cases
Last July, the Justice Department announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions.The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to U.S. Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
In Wyoming, the FBI is currently engaged in a data collection project to further refine its understanding of the MMIP situation in the state and determine what additional resources the FBI can bring to address the problem. “The U.S. Attorney’s Office fully supports the FBI’s MMIP project,” said U.S. Attorney Vassallo, “and we encourage the public to report what they know about any missing or murdered Indigenous persons.” The FBI has set up a designated email account, [email protected], to collect information from citizens across Wyoming who might have information about unsolved cases involving missing tribal members or Native Americans whose murders have not been solved. Whether these cases were never reported, were never properly investigated, or new information is available, the FBI wants to hear about it. People can also leave a message at 307-433-3221. All callers who leave a name and phone number will receive a return call.
Not Invisible Act Commission Response
In March, the Departments of Justice and the Interior released their joint response to the Not Invisible Act Commission’s recommendations on how to combat violent crime in Indian Country, including missing or murdered Indigenous persons cases and human trafficking cases. The NIAC response, announced by Attorney General Garland during a visit to the Crow Nation, recognizes that more must be done across the federal government to help resolve this longstanding issue and support healing from the generational traumas that Indigenous peoples have endured throughout the history of the United States.Addressing Violent Crime and the Fentanyl Crisis in Indian Country
As noted in the joint response to the NIAC, research suggests that certain public safety challenges faced by many American Indian and Alaska Native communities—including violence against women, families, and children; substance abuse; drug trafficking; and labor and sex trafficking—increase the number of missing and murdered Indigenous persons. Further, fentanyl poisoning and overdose deaths are the leading cause of opioid deaths throughout the United States, including Indian County. In response, the U.S. Attorney’s Office and its law enforcement partners have ramped up efforts to address the fentanyl crisis and related violent crime.In Wyoming, the FBI leads the Safe Trails Task Force, which investigates drug trafficking on the Wind River Indian Reservation, and in surrounding communities, with an emphasis on stopping the distribution of fentanyl. In addition to the FBI, task force members include the United States Drug Enforcement Administration, the Wyoming Division of Criminal Investigation, the Wyoming Highway Patrol, the Fremont County Sheriff’s Office, the Riverton Police Department, and the Lander Police Department.
Accessing Department of Justice Resources
Over the past year, the Department awarded $268 million in grants to help enhance Tribal justice systems and strengthen law enforcement responses. These awards have also gone toward improving the handling of child abuse cases, combating domestic and sexual violence, supporting Tribal youth programs, and strengthening victim services in Tribal communities. For additional information about the Department of Justice’s efforts to address the MMIP problem, please visit the Missing or Murdered Indigenous Persons section of the Tribal Safety and Justice website at https://www.justice.gov/tribal/mmip. For information about the U.S. Attorney’s Office for the District of Wyoming and the cases we prosecute, please visit the News section of the office’s website at https://www.justice.gov/usaowy/pr. For more information about reporting or identifying missing persons, please visit the Justice Department’s Report and Identify Missing Persons website at https://www.justice.gov/actioncenter/report-and-identify-missing-persons.
Justice Department Strengthens Efforts, Builds Partnerships to Address the Crisis of Missing or Murdered Indigenous PersonsRead the Press Release
LAS VEGAS – The Justice Department joins its partners across the federal government, as well as people throughout American Indian and Alaska Native communities, in recognizing May 5 as National Missing or Murdered Indigenous Persons (MMIP) Awareness Day.
In recognition of MMIP Awareness Day, Attorney General Merrick B. Garland highlighted ongoing efforts to tackle the MMIP and human trafficking crises in American Indian and Alaska Native communities, and other pressing public safety challenges, like the fentanyl crisis, in Tribal communities.
“There is still so much more to do in the face of persistently high levels of violence that Tribal communities have endured for generations, and that women and girls, particularly, have endured,” said Attorney General Merrick B. Garland. “In carrying out our work, we seek to honor those who are still missing, those who were stolen from their communities, and their loved ones who are left with unimaginable pain. Tribal communities deserve safety, and they deserve justice. This day challenges all of us at the Justice Department to double down on our efforts, and to be true partners with Tribal communities as we seek to end this crisis.”
“We know that government-to-government partnerships are critical to improving the safety and well-being of Tribal communities. This is why, throughout the year, our office meets with Tribal leadership, Tribal law enforcement, and community groups to hear challenges, share resources and information, and strengthen our relationships,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We remain dedicated in our commitment to address violence against indigenous women, fentanyl overdoses, human trafficking, and other public safety issues in Tribal communities. We will continue working with our law enforcement partners to help ensure that all people in Indian Country are safe in their communities.”
“The FBI remains unwavering in our pledge to work with our law enforcement partners to address the violence that has disproportionately harmed Tribal communities and families,” said FBI Director Christopher Wray. “We will continue to prioritize our support of victims and will steadfastly pursue investigations into the crime impacting American Indian and Alaska Native communities.”
“DEA’s top priority is protecting all communities from deadly drugs, like fentanyl, and drug related violent crime,” said DEA Administrator Anne Milgram. “We know that no community has been spared from these deadly threats and we are committed to keeping Tribal communities safe.”
Justice Department Prioritization of MMIP Cases
Last July, the Justice Department announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions.
The MMIP Regional Outreach Program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to U.S. Attorneys’ offices promoting public safety in Indian Country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
Nevada is home to 28 federally recognized tribes, bands and communities located on 31 Indian reservations and colonies. The U.S. Attorney’s Office has resources, including a Tribal Liaison, dedicated to promoting safety and security on tribal lands and in tribal communities. Assistant U.S. Attorney Penelope Brady serves as the MMIP Coordinator for the District of Nevada. Information about resources may be found at: https://www.justice.gov/usao-nv/tribal-matters-indian-country-public-lands.
Last year, the U.S. Attorney’s Office for the District of Nevada obtained a conviction after a jury trial:
- U.S. v. Michael Burciaga – In September 2023, Burciaga was sentenced by Chief United States District Judge Miranda M. Du to life in prison, plus 20 years in prison, for murdering his pregnant girlfriend, a registered member of the Pyramid Lake Paiute Tribe, on the Pyramid Lake Indian Reservation in December 2020.
Not Invisible Act Commission Response
The Department’s work to respond to the MMIP crisis is a whole-of-department effort. In March, the Departments of Justice and the Interior released their joint response to the Not Invisible Act Commission’s recommendations on how to combat the missing or murdered Indigenous peoples (MMIP) and human trafficking crisis. The NIAC response, announced by Attorney General Garland during a visit to the Crow Nation, recognizes that more must be done across the federal government to resolve this longstanding crisis and support healing from the generational traumas that Indigenous peoples have endured throughout the history of the United States.
Addressing Violent Crime and the Fentanyl Crisis in Indian Country
As noted in the joint response to the NIAC, research suggests that certain public safety challenges faced by many American Indian and Alaska Native communities—including disproportionate violence against women, families, and children; substance abuse; drug trafficking; and labor and sex trafficking—can influence the rates of missing AI/AN persons.
Further, fentanyl poisoning and overdose deaths are the leading cause of opioid deaths throughout the United States, including Indian County, where drug-related overdose death rates for Native Americans exceeds the national rate.
Therefore, federal law enforcement components are ramping up efforts to forge stronger partnerships with federal and Tribal law enforcement partners to address violent crime and the fentanyl crisis, which exposes already vulnerable communities to greater harm.
Accessing Department of Justice Resources
Over the past year, the Department awarded $268 million in grants to help enhance Tribal justice systems and strengthen law enforcement responses. These awards have also gone toward improving the handling of child abuse cases, combating domestic and sexual violence, supporting Tribal youth programs, and strengthening victim services in Tribal communities.
For additional information about the Department of Justice’s efforts to address the MMIP crisis, please visit the Missing or Murdered Indigenous Persons section of the Tribal Safety and Justice website.
Click here for more information about reporting or identifying missing persons.
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Justice Department Strengthens Efforts, Builds Partnerships to Address the Crisis of Missing or Murdered Indigenous PersonsRead the Press Release
WASHINGTON – The Justice Department joins its partners across the federal government, as well as people throughout American Indian and Alaska Native communities, in recognizing May 5 as National Missing or Murdered Indigenous Persons (MMIP) Awareness Day.
In recognition of MMIP Awareness Day, Attorney General Merrick B. Garland highlighted ongoing efforts to tackle the MMIP and human trafficking crises in American Indian and Alaska Native communities, and other pressing public safety challenges, like the fentanyl crisis, in Tribal communities.
“There is still so much more to do in the face of persistently high levels of violence that Tribal communities have endured for generations, and that women and girls, particularly, have endured,” said Attorney General Merrick B. Garland. “In carrying out our work, we seek to honor those who are still missing, those who were stolen from their communities, and their loved ones who are left with unimaginable pain. Tribal communities deserve safety, and they deserve justice. This day challenges all of us at the Justice Department to double down on our efforts, and to be true partners with Tribal communities as we seek to end this crisis.”
“Every missing person, every victim, is a son or a daughter, and their absence is a tragedy that tears at the fabric of families, tribes, and communities," said United States Attorney Christopher J. Wilson for the Eastern District of Oklahoma. "This office is proud to join with our partners in the Tribal Nations within Eastern Oklahoma to recognize MMIP Awareness Day and shine an important light on what it means to seek justice for victims and their families."
“The FBI remains unwavering in our pledge to work with our law enforcement partners to address the violence that has disproportionately harmed Tribal communities and families,” said FBI Director Christopher Wray. “We will continue to prioritize our support of victims and will steadfastly pursue investigations into the crime impacting American Indian and Alaska Native communities.”
“DEA’s top priority is protecting all communities from deadly drugs, like fentanyl, and drug related violent crime,” said DEA Administrator Anne Milgram. “We know that no community has been spared from these deadly threats and we are committed to keeping Tribal communities safe.”
Justice Department Prioritization of MMIP Cases
Last July, the Justice Department announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions.
The MMIP Regional Outreach Program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to U.S. Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
Not Invisible Act Commission Response
The Department’s work to respond to the MMIP crisis is a whole-of-department effort. In March, the Departments of Justice and the Interior released their joint response to the Not Invisible Act Commission’s recommendations on how to combat the missing or murdered Indigenous peoples (MMIP) and human trafficking crisis. The NIAC response, announced by Attorney General Garland during a visit to the Crow Nation, recognizes that more must be done across the federal government to resolve this longstanding crisis and support healing from the generational traumas that Indigenous peoples have endured throughout the history of the United States.
Addressing Violent Crime and the Fentanyl Crisis in Indian Country
As noted in the joint response to the NIAC, research suggests that certain public safety challenges faced by many American Indian and Alaska Native communities—including disproportionate violence against women, families, and children; substance abuse; drug trafficking; and labor and sex trafficking—can influence the rates of missing AI/AN persons.
Further, fentanyl poisoning and overdose deaths are the leading cause of opioid deaths throughout the United States, including Indian county, where drug-related overdose death rates for Native Americans exceeds the national rate.
Therefore, federal law enforcement components are ramping up efforts to forge stronger partnerships with federal and Tribal law enforcement partners to address violent crime and the fentanyl crisis, which exposes already vulnerable communities to greater harm.
Accessing Department of Justice Resources
Over the past year, the Department awarded $268 million in grants to help enhance Tribal justice systems and strengthen law enforcement responses. These awards have also gone toward improving the handling of child abuse cases, combating domestic and sexual violence, supporting Tribal youth programs, and strengthening victim services in Tribal communities.
For additional information about the Department of Justice’s efforts to address the MMIP crisis, please visit the Missing or Murdered Indigenous Persons section of the Tribal Safety and Justice website.
Click here for more information about reporting or identifying missing persons.
Justice Department Strengthens Efforts to Build Partnerships that Address the Crisis of Missing or Murdered Indigenous PersonsRead the Press Release
TULSA, Okla. – The Northern District of Oklahoma joins the Justice Department and its partners across the federal government, as well as people throughout American Indian and Alaska Native communities, in recognizing May 5 as National Missing or Murdered Indigenous Persons (MMIP) Awareness Day.
In recognition of MMIP Awareness Day, Attorney General Merrick B. Garland announced stepped up efforts to tackle the MMIP and human trafficking crisis in American Indian and Alaska Native communities, and other pressing public safety challenges like the fentanyl crisis which have had a disproportionate impact on Native Americans, exacerbating violence and addiction in already vulnerable communities.
“There is still so much more to do in the face of persistently high levels of violence that Tribal communities have endured for generations, and that women and girls, particularly, have endured,” said Attorney General Merrick B. Garland. “In carrying out our work, we seek to honor those who are still missing, those who were stolen from their communities, and their loved ones who are left with unimaginable pain. Tribal communities deserve safety, and they deserve justice. This day challenges all of us at the Justice Department to double down on our efforts, and to be true partners with Tribal communities as we seek to end this crisis.”
“The Northern District of Oklahoma is committed to combatting violent crime in Indian Country, especially when it results in Missing or Murdered Indigenous Persons,” said U.S. Attorney Clint Johnson. “We will use every available resource to hold violent offenders accountable, support Indian Country victims, and ensure MMIP remains a priority.”
Justice Department Prioritization of MMIP Cases
Last July, the Justice Department announced the creation of the MMIP Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions.This program will dedicate an MMIP Regional Outreach Program Coordinator (Coordinator) and an MMIP Assistant United States Attorney (AUSA) for the Northern District of Oklahoma. The AUSA will support and assist in MMIP cases and related crimes. The Coordinator will assist in promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues. Our victim services staff and support personnel will assist the AUSA and Coordinator's dedication to investigating and prosecuting violent crimes, organized crimes, and sex crimes in Indian Country.
The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to U.S. Attorneys’ offices promoting public safety in Indian Country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 4053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
National Missing and Unidentified Persons System
In 2005, the National Missing and Unidentified Persons System (NamUs) was created. NamUs is the only national centralized repository and resource center for missing, unidentified, and unclaimed person cases across the United States. Currently, there are 16 missing indigenous persons within the Northern District of Oklahoma.- Rhonda Anderson – American Indian/Alaska Native, Tribe Unknown
- Lauria Jaylene Bible – Member of the Cherokee Nation
- Tina Brashear – Member of the Muscogee (Creek) Nation
- Roley Butler – Member of the Muscogee (Creek) Nation
- Coolidge Cochran – American Indian/Alaska Native, Tribe Unknown
- David Allen Crabtree – Member of the Cherokee Nation
- Lee Andrew Davis – Member of the Cherokee Nation
- Aubrey Dameron – Member of the Cherokee Nation
- Stephanie Jean Fuller – American Indian/Alaska Native, Tribe Unknown
- Anthony Hardy-Bear – Member of the Muscogee (Creek) Nation
- Robert Livers – Member of the Cherokee Nation
- Kimberly Doreen Mullens – Member of the Cherokee Nation
- Danielle Lea Prost – Member of the Cherokee Nation
- Tracy Michelle Samuels – Member of the Cherokee Nation
- Jonas Albert Summers – Member of the Muscogee (Creek) Nation
- Crystal Dawn Wiggins – American Indian/Alaska Native, Tribe Unknown
Accessing Department of Justice Resources
Over the past year, the Justice Department awarded $2.8 million to help enhance Tribal justice systems and strengthen law enforcement responses in the Northern District of Oklahoma. These awards have also gone toward improving the handling of child abuse cases, combating domestic and sexual violence, supporting Tribal youth programs, and strengthening victim services in Tribal communities.For additional information about the Department of Justice’s efforts to address the MMIP crisis, please visit the Missing or Murdered Indigenous Persons section of the Tribal Safety and Justice website.
Click here for more information about reporting or identifying missing persons.
Justice Department Seeks to Shut Down Miami-Dade County, Florida, Tax Return PreparerRead the Press Release
The Justice Department filed a civil injunction suit today to permanently bar Dieuseul Jean-Louis, both individually and doing business as DJL Multiservices, from preparing federal tax returns for others. The United States also seeks an order requiring Jean-Louis disgorge to the United States his ill-gotten preparation fees.
The complaint, filed in the U.S. District Court for the Southern District of Florida, alleges that Jean-Louis prepared over 2,000 federal income tax returns from 2019 through 2023 that intentionally understated customers’ tax liabilities and overstated the refunds to which they were entitled. According to the complaint, Jean-Louis used a variety of schemes claim false deductions and credits, including falsifying itemized deductions, knowingly reporting fake or inflated business expenses and fraudulently claiming various credits like the Fuel Tax Credit and American Opportunity Credit, all without customers’ knowledge. The complaint alleges that Jean-Louis falsified customers’ income and filing statuses to increase the amount of the Earned Income Tax Credit.
The complaint also asserts that Jean-Louis furnished to customers copies of returns that are different from those filed with the IRS, where the returns filed with the IRS claim a higher refund. Jean-Louis allegedly retained the additional refunds for himself without the customers’ knowledge.
According to the complaint, the United States has been harmed by Jean-Louis’s conduct, resulting in the significant loss in tax revenue of more than $2.3 million for the 2021 and 2022 tax years alone.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant against dishonest tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jean-Louis Complaint.pdfJamestown felon pleads guilty to gun chargeRead the Press Release
BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that Steven Glover, Sr., 39, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to being a felon in possession of a firearm. The charge carries a maximum penalty of 15 years in prison and a $250,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that on the morning of December 14, 2022, a Jamestown Police officer observed Glover in a vehicle. The officer knew that Glover was suspended from driving. The officer stopped the vehicle and made contact with Glover, who immediately advised that he had a pipe on his person. Glover then handed over a glass pipe that contained what appeared to be methamphetamine residue inside. Glover was detained and a search of the vehicle recovered a digital scale with white crystal residue and a pistol. Glover was charged in New York State Court and released on bail. In 2019, Glover was convicted of a felony in Chautauqua County Court and is legally prohibited from possessing a firearm.
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 is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
Sentencing is scheduled for August 30, 2024, at 11:00 a.m. before Judge Sinatra.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on May 2 was:
James Vernon Day, Jr., 55, of Thompson Falls, on charges of prohibited person in possession of a firearm and possession of an unregistered firearm. If convicted of the most serious crime, Day faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Day was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Sanders County Sheriff’s Office and Lincoln County Sheriff’s Office conducted the investigation. PACER case reference. 24-23.
Appearing on April 29 was:
Edward Wayne Brock, 66, and Jane Ami McGovern, 55, both of Missoula, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Brock and McGovern face a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Brock and McGovern were detained pending further proceedings. The Drug Enforcement Administration, Missoula County Sheriff’s Office and Montana Highway Patrol investigated the case. PACER case reference. 24-6.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on April 30 was:
Dalton Michael Williams, 22, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Williams faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Williams was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Sweet Grass County Sheriff’s Office investigated the case. PACER case reference. 23-153.
Isaac James Cardona, 45, of Belgrade, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Cardona faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Cardona was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Belgrade Police Department investigated the case. PACER case reference. 24-11.
Appearing on a criminal complaint was:
Oscar Enrique Ruiz Rojas, 25, of Gallatin Gateway, on charges of alien in possession of a firearm. If convicted of the most serious crime, Rojas faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Rojas was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration investigated the case. PACER case reference. 24-24.
Appearing on April 29 and pleading not guilty was:
John Michael Hadler, 37, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Hadler faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Hadler was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Division of Criminal Investigation conducted the investigation. PACER case reference. 24-53.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indictment Charges Brothers with Trafficking Narcotic PillsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in New Haven has returned an indictment charging KYLE PETERSEN, 38, of Newington, and ERIK PETERSEN, also known as “Peach,” 43, of New Britain, with conspiracy to distribute, and to possess with intent to distribute, controlled substances.
The indictment was returned on April 15, 2024, and each defendant appeared in Hartford federal court earlier this week and entered a plea of not guilty. They have been detained since April 3, 2024.
As alleged in court documents and statements made in court, in May 2023, members of the DEA New Haven Tactical Diversion Squad began investigating suspicious packages that were being delivered to Kyle Petersen’s Newington residence. At the time, Petersen was on federal supervised release following a federal conviction in 2017 involving the trafficking of fentanyl and prescription pills. During the investigation, a court-authorized search of a package mailed to Petersen contained more than 400 grams of pills containing Protonitazene, a synthetic opioid typically more potent than fentanyl. The investigation revealed that Petersen had received approximately 34 similar package mailed from the same source in Michigan, and also received approximately 46 packages from California and Oregon suspected to contain multiple pounds of marijuana. Investigators also made controlled purchases of counterfeit Percocet pills containing fentanyl from Kyle Petersen’s brother, Erik Peterson.
Kyle and Erik Petersen were arrested on federal criminal complaints on April 3, 2024. On that date, a search of Kyle Petersen’s residence revealed more than a kilogram of counterfeit Adderall pills containing methamphetamine, counterfeit oxycodone pills containing fentanyl, counterfeit Xanax pills, a large quantity of Protonitazene approximately 40 grams of cocaine, and $76,650 in cash.
If convicted of the charge in the indictment, based on the type and quantities of controlled substances attributed to each defendant, Kyle Petersen faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and Erik Petersen faces a maximum term of imprisonment of 20 years. The indictment also seeks the forfeiture of the cash seized from Kyle Petersen’s apartment, an additional $57,530 in cash seized from a bank account, and Kyle Petersen’s 2014 Porsche Cayenne.
Kyle Petersen faces additional penalties if he is found to have violated the conditions of his supervised release.
U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the DEA New Haven Tactical Diversion Squad, which is composed of personnel from the DEA and the Bristol, East Windsor, Hamden, New Britain, West Haven, Newington, Manchester, Glastonbury, and Watertown Police Departments. The case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.
Interpol Washington Hosts International Law Enforcement SymposiumRead the Press Release
Yesterday, INTERPOL Washington hosted an international law enforcement breakfast symposium, featuring representatives from more than 30 different countries and dozens of agencies, to discuss enhancing global police partnerships against transnational threats and terrorism. The event, held at INTERPOL Washington headquarters in DC and cohosted with the International Law Enforcement Association (ILEA) and Liaison Officers Association (LOA), brought together law enforcement leaders for critical operational updates and briefings on their collaborative successes with police partners across the world.
“Our communities, both in the United States and across the globe, face unprecedented transnational threats each and every day,” said INTERPOL Washington Director Michael A. Hughes in his remarks. “The only way to defeat these threats is through transnational partnerships. Those partnerships are what we continue to build and strengthen here today, because we know that working together, we can make a difference.”
“As we gather to celebrate and reflect upon our collective successes in international law enforcement, it is imperative to recognize the critical role that everyone in this room plays in safeguarding our communities here in America and all over the world every day,” said INTERPOL Washington Deputy Director Jeffrey Grimming in his remarks. “Your continued cooperation and collaboration helps catch the world’s most dangerous fugitives, helps reunite families, helps bring closure to cold cases, and disrupts the most heinous organizations and plots.”
Patrick Stevens, Chair of ILEA, and John S. Warren, Vice Chair of LOA, also addressed the audience, providing examples of tangible successes thanks to international police partnerships. They underscored the significance of both bilateral and multilateral police cooperation and highlighted their equal importance and symbiotic relationship in fostering success stories worldwide.
INTERPOL Washington hosts these types of symposiums and events to underscore the importance of international police cooperation in combating global crime and ensuring the safety and security of citizens worldwide. Through shared intelligence, resources, and expertise, law enforcement agencies from different nations are able to effectively address transnational threats and uphold the rule of law on a global scale. Events like this symposium serve as vital platforms for fostering relationships, exchanging best practices, and strengthening partnerships among law enforcement agencies worldwide. Together, united in purpose and determination, the international law enforcement community remains committed to confronting evolving threats and protecting the well-being of people everywhere.
Honduran National Sentenced for Being an Illegal Alien in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – JOSE SANCHEZ-MORADEL, age 36, a native of Honduras, was sentenced on April 30, 2024 for being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A), announced U.S. Attorney Duane A. Evans. He was sentenced to three years probation. Based on SANCHEZ-MORADEL’s immigration status, SANCHEZ-MORADEL shall not reenter the United States without the prior written permission of the Secretary of Homeland Security if deported.
According to court documents, on April 26, 2023, the Mandeville Police Department responded to a call by an individual who advised them that her ex-boyfriend, SANCHEZ-MORADEL, was trying to enter her residence in Mandeville, Louisiana. Police observed a white 2016 Chevrolet Silverado bearing a Texas plate leaving the apartment complex. Mandeville Police stopped the vehicle and detained the driver who was identified as SANCHEZ-MORADEL.
The complaining witness advised police that the defendant forcibly entered her residence through her sliding glass door on the side of the building. Police confirmed that SANCHEZ-MORDAEL was the individual in the truck stopped by other police officers on Monroe Street. SANCHEZ-MORADEL was placed under arrest. A handgun magazine containing ten 22LR rounds was located in his shorts pocket. Officers also located on SANCHEZ-MORADEL a Husky multi tool knife with a damaged blade tip. Officers conducted a search of his vehicle incidental to arrest and located inside the center console a Glock Model G44, 22LR caliber handgun, which was manufactured in another state and shipped in interstate commerce to Louisiana.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency and the Mandeville Police Department in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
Gonzales Man Sentenced for Interstate Travel in Aid of Racketeering and Drug Trafficking FacilitationRead the Press Release
NEW ORLEANS, LOUISIANA – VIET NGUYEN (“NGUYEN”), age 30, a resident of Gonzales , Louisiana, was sentenced on May 1, 2024 by United States District Judge Jane Triche Milazzo to one (1) year and one (1) day of imprisonment, three years of supervised release, and a $500.00 mandatory special assessment fee after previously pleading guilty to four counts of interstate travel in aid of racketeering, in violation of Title 18, United States Code, Section 1952(a)(3), and one count of use of a communication facility to facilitate a drug trafficking crime, in violation of Title 21, United States Code, Section 843(b), announced U.S. Attorney Duane A. Evans.
According to court documents, in July 2019, Jefferson Parish Sheriff’s Office agents learned that Vinh Nguyen and others, participated in a drug and money trafficking network that spanned from California to Louisiana. Text messages confirmed that Vinh Nguyen worked with a supplier in California, who negotiated the cost and strains of marijuana with growers in San Francisco on his behalf. Vinh Nguyen paid for the marijuana by having others, including NGUYEN, fly the cash to the supplier in San Francisco. Another co-conspirator owned a shipping company that shipped the marijuana from San Francisco to a warehouse in Kenner from which another co-conspirator would pick up the marijuana shipments and drop them off at various unknown locations in New Orleans and various other cities. On April 15, May 7, June 26, and August 15, 2019, NGUYEN, at the direction of Vinh Nguyen, flew from New Orleans to California to deliver money for the purchase of marijuana
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Jefferson Parish Sheriff’s Office and the Office of Homeland Security Investigations. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
Ghanaian National Sentenced to 48 Months’ Imprisonment for Receiving Money Stolen from Romance Scam VictimsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Emmanuel Quamey, a Ghanaian national, was sentenced by United States District Judge Carol Bagley Amon to 48 months in prison for his role in receiving and laundering stolen money which was obtained through romance scams that defrauded over a dozen vulnerable and/or elderly victims in the United States. As part of his sentence, Quamey was ordered to pay $3.3 million in forfeiture and restitution to the victims in the amount of approximately $3.8 million. Quamey pleaded guilty in October 2023 to conspiring to receive stolen money for his role in the romance scams.
Breon Peace, United States Attorney for the Eastern District of New York, and Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the sentence.
“Romance scams are callous crimes in which perpetrators steal money from vulnerable and elderly victims by taking advantage of the victims’ trust and desire to form human connections,” stated United States Attorney Peace. “This sentence serves as a warning to individuals like the defendant that there are real consequences to participating in these cruel scams. This Office and our law enforcement partners are committed to bringing these fraudsters to justice and getting the victims’ money back.”
Mr. Peace thanked the Special Agents of Homeland Security Investigations New York for their exemplary work on the case.
As set forth in court filings, between September 2019 and March 2023, Quamey and a network of co-conspirators received over $3.8 million in fraud proceeds that were stolen from several vulnerable and elderly U.S. victims of romance scams. A “romance scam” is a type of online financial fraud that occurs when an individual user of social media or an internet dating website is targeted for fraud by a scammer posing as a potential romantic partner. The scammers use a fake persona to express strong romantic interest in the targeted victim in order to trick them into sending money to the scammer under false pretenses. The specific stories that the scammers use to induce romance scam victims to send money vary, but as part of the fraud, the victims are directed to wire their money to one or more bank accounts to purportedly help their romantic partners. The victims would then be defrauded of the money.
Quamey was responsible for receiving and laundering the victims’ money. He personally received approximately $3.3 million of the victims’ money that was wired into bank accounts he directly controlled. Using more than a dozen bank accounts in the United States and Ghana, Quamey and his co-conspirators would then transfer the victims’ money overseas to Ghana.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Shannon C. Jones and Genny Ngai are in charge of the prosecution with the assistance of Paralegal Specialist Jacob Menz. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters in the case.
The Defendant:
EMMANUEL QUAMEY
Age: 36
Accra, GhanaE.D.N.Y. Docket No. 23-CR-226 (CBA)
Fresno Man Indicted for Receiving Child PornographyRead the Press Release
FRESNO, Calif. — On May 2, 2024, a federal grand jury returned an indictment against Timothy Austin Panuco, 34, of Fresno, charging him with receipt of child pornography, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed following his arrest today.
According to court documents, between Feb. 1, 2023, and March 22, 2024, Panuco received material depicting at least one or more minors engaged in sexually explicit conduct.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brittany M. Gunter is prosecuting the case.
If convicted, Panuco faces a maximum statutory penalty of 20 years in prison, with a mandatory minimum of five years in prison, and a fine up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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 those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Fort Dodge Man Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
A man who illegally possessed firearms pled guilty May 3, 2024, in federal court in Sioux City.
Matthew Knowles, 37, from Fort Dodge, Iowa, admitted at the plea hearing to possessing a .380 ACP pistol, and a .410 gauge shotgun on November 10, 2022, in Fort Dodge, Iowa. He further admitted to being a user of methamphetamine, marijuana, and knowing he was a felon when he possessed the firearms. As a felon and drug user, Knowles was prohibited from possessing firearms.
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.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Knowles remains in custody of the United States Marshal pending sentencing. Knowles faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Webster County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3039. Follow us on Twitter @USAO_NDIA.
Former Wise County man sentenced for income tax-related fraudRead the Press Release
PLANO, Texas – A former Decatur man, now living in California, has been sentenced to federal prison for tax fraud in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Kenneth Edward Jackson, 47, pleaded guilty to false statements on income tax return and was sentenced to 36 months in federal prison by U.S. District Judge Robert W. Schroeder, III on May 1, 2024. Jackson was also ordered to pay restitution in the amount of $484,187.57 to the IRS and several of his small-business clients.
According to information presented in court, Jackson was the president and owner of Employer Tools and Solutions (ETS), a payroll service provider that operated in Denton County, Texas. ETS filed Forms 940 and 941 on its clients’ behalf and made payroll and payroll tax payments using funds provided by its clients. Part of ETS’s function in processing its clients’ payroll was holding and remitting employment tax to the Internal Revenue Service for its clients. Employment tax consists of trust fund taxes, which are items withheld from employees’ paychecks, and the employer portion of taxes.
From 2017 to 2019, Jackson embezzled hundreds of thousands of dollars from his small-business clients. He took funds provided by various clients for employment taxes and failed to pay the money over to the IRS. Instead, he kept this money and used it to pay bills—including payments on his home—and to fund his lifestyle—including a European vacation. Jackson also failed to report the client funds he embezzled as income on his U.S. Individual Income Tax return.
“As a payroll service provider, Jackson’s clients trusted him to honestly handle their finances,” said U.S. Attorney Damien M. Diggs. “But Jackson allowed his greed to overtake his fiduciary duties. In addition to defrauding the United States, he also preyed upon his own clients to support his opulent lifestyle. We are grateful for our partners at the IRS, who not only protect our nation’s treasury, but also victims of financial fraud.”
“The failure to pay employment tax has a pernicious effect on the American public. It results in the loss of tax revenue to the United States government and the loss of future social security or Medicare benefits for the employees,” said Christopher J. Altemus Jr., special agent in charge of the IRS Criminal Investigation’s Dallas Field Office. “Instead of paying over the employment taxes received from his clients as part of his payroll business, Mr. Jackson embezzled those funds. He has been held accountable for his actions and sentenced to 36 months in prison and ordered to pay $484,187.57 in restitution.”
This case was investigated by the Internal Revenue Service – Criminal Investigations and the Frisco Police Department and prosecuted by Assistant U.S. Attorney Sean J. Taylor.
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Former School Bus Driver Indicted on Child Pornography ChargesRead the Press Release
ST. LOUIS – A former school bus driver from St. Peters, Missouri, has been indicted and accused of recording the sexual abuse of minors.
Robert W. Stillwell, 66, of St. Peters, Missouri, was indicted in U.S. District Court in St. Louis with two counts of production of child pornography.
The indictment accuses Stillwell of recording his sexual abuse of two minor victims between Dec. 1, 2020, and Jan. 5, 2024.
Stillwell is currently in custody in the St. Charles County Detention Center.
If convicted, each charge of production of child pornography carries a mandatory sentence of 15 years in prison and a maximum of 30 years.
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.
The FBI, the St. Peters Police Department and the St. Charles County Cyber Crime Task Force investigated the case. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Postal Employee Sentenced to 15 Months in Federal Prison for Conspiracy to Commit Bank Fraud and Wire FraudRead the Press Release
Greenbelt, Maryland – On May 2, 2024, U.S. District Judge Lydia K. Griggsby sentenced Alexus Paige Tyson, age 28, a resident of Hyattsville, Maryland, to 15 months in federal prison, followed by three years of supervised release, for participation in a conspiracy whereby she used her position as a United States Postal Service (“USPS”) mail carrier to wrongfully access checks, money orders, and personal mail put into the mail by victims. That information was then used by a co-conspirator, Travis Nnamani, to create counterfeit checks to take money from victims’ bank accounts. In addition to the prison sentence, Judge Griggsby ordered Tyson to pay restitution of $129,967.22 to her victims.
According to her plea agreement, between August 2019 and October, 2020, Tyson assisted Nnamani to create fraudulent checks using victims’ personal information that Tyson and others at the United States Postal Service took from checks and other documents that victims placed into the mail system. In many instances, checks or other documents mailed by victims were photographed by Tyson or other USPS employees and then the documents were put back into the mail with the victims not knowing their information had been stolen. That information would then be used by Nnamani to create false checks using that information to access funds in victims’ bank accounts.
Tyson also played a role as a recruiter of other employees at the USPS to engage in similar conduct, including selling federal stimulus checks they took from the mail.
Tyson was the last of three defendants, including Nnamani and another USPS postal worker, Breanna Cartledge, to be sentenced in this case.
United States Attorney Erek L. Barron commended the United States Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Darren S. Gardner, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.# # #
Former CEO, CFO, and CCO of Cred LLC Charged with Alleged Multi-Million-Dollar Cryptocurrency-Related Wire Fraud ConspiracyRead the Press Release
SAN FRANCISCO – A federal grand jury has charged Daniel Schatt, Joseph Podulka, and James Alexander with wire fraud conspiracy and related crimes in connection with their respective roles in an alleged scheme to defraud customers and investors in Cred, LLC (Cred) allegedly causing losses of customer cryptocurrency assets with a market value that may have exceeded $780 million. Cred, a San Francisco-based financial services firm that specialized in making investments in cryptocurrencies, filed for Chapter 11 bankruptcy on November 7, 2020. The charges against the defendants are set out in two separate indictments handed down by the grand jury earlier this week.
“The Northern District of California is home to many of the nation’s most innovative businesses,” said U.S. Attorney Ismail Ramsey. “Maintaining a market for continued prosperity requires rooting out those who use fraud as a substitute for success. This prosecution demonstrates our determination to keep our markets free of fraudsters and safe for investors.”
“The allegations against the defendants associated with Cred, LLC highlight a predatory, deceptive scheme defrauding potential victims of hundreds of millions of dollars of cryptocurrency at market value,” said IRS Criminal Investigation Acting Special Agent in Charge Mark Mosley. “The indictments levied demonstrate the investigative capabilities of IRS Criminal Investigation and our commitment to pursuing justice against financial criminals.”
The announcement was made by United States Attorney Ismail Ramsey, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, and IRS Criminal Investigation Acting Special Agent in Charge Michael Mosley of the Oakland Field Office.
The first indictment (Schatt Indictment) charges Schatt, 53, of San Mateo, and Podulka, 51, of Palo Alto, with conspiracy, thirteen counts of wire fraud and money laundering. The second indictment (Alexander Indictment) recites many of the same allegations and charges Alexander, 54, of Sherman Oaks, with conspiracy, four counts of wire fraud and money laundering.
According to the indictments, Schatt was Cred’s co-owner and Chief Executive Officer, Podulka was Cred’s Chief Financial Officer, and Alexander was Cred’s Chief Capitol Officer. Cred was founded in 2018 by Schatt and another individual and provided financial services to holders of cryptocurrency and other assets. By late 2018, Cred’s business included two principal businesses: (1) offering loans in U.S. dollars to customers using customers’ cryptocurrency as collateral and (2) accepting deposits of cryptocurrency in exchange for a promise for a yield (interest payments) for that cryptocurrency.
The indictments allege that no later than March of 2020, the defendants began making false and fraudulent statements to customers and investors about Cred’s lending and investing practices. For example, the defendants represented to Cred’s customers and investors that Cred engaged only in “collateralized or guaranteed lending,” that Cred’s cryptocurrency investments were “hedged,” and that Cred maintained an “all weather approach” to investment to protect against volatility. Cred’s marketing materials asserted that the company was a “licensed lender with comprehensive insurance.” Further, after the “flash crash” in March of 2020, during which many cryptocurrencies were significantly devalued, defendants allegedly continued to represent to Cred’s customers and investors that Cred remained solvent and that the company maintained comprehensive insurance that assured Cred’s customers would be made whole. The indictments allege all these assurances and statements were false.
The indictments describe how the defendants lured customers to make investments by promising to return a significant yield on cryptocurrency investments—the defendants did not disclose, however, that virtually all the assets to pay the yield were generated by a single company whose business was to make unsecured micro-loans to Chinese gamers. Contrary to the defendants’ assurances, Cred engaged in lending that was neither collateralized nor guaranteed. Moreover, Cred’s hedging strategy did not protect the company’s investments against volatility. Indeed, shortly after the flash crash in March of 2020, Cred had lost its hedging partner, had learned that a significant creditor to whom Cred had loaned $40 million would be unable fulfill its promise to repay the loan, was being threatened with a lawsuit, and was effectively insolvent. The indictments describe the striking contrast between the reality of Cred’s financial situation by the end of March 2020 and the statements the defendants made to customers and investors at that time. On the one hand, on March 16, 2020, Cred’s General Counsel informed the defendants that “Cred may not be financially solvent and that defendants “must be careful at all times to be accurate in its statements to its creditors and to all stakeholders.” Nevertheless, rather than disclose to Cred’s customers and investors the reality of Cred’s finances, defendants allegedly attempted to keep the business afloat by bringing in new customer funds and by discouraging existing customers from seeking and obtaining redemptions from their investments. According to the indictment, at the time Cred collapsed and filed for bankruptcy, its customers suffered losses of cryptocurrency assets with a market value of $150 million at the time of the bankruptcy, and a “maximum market value of over $783 million since the date of the bankruptcy.”
The indictments describe how the defendants assured numerous victims to make or renew financial commitments to Cred even after the company’s effective insolvency.
With respect to Schatt and Podulka, the Schatt Indictment lists 13 transactions that occurred between April 14, 2020, and October 15, 2020, as the defendants continued to make repeated false and fraudulent assurances that Cred’s financial situation was sound. The indictment further describes how Schatt and Podulka failed to inform customers about significant losses sustained by the company until October of 2020, when a cryptocurrency exchange, then a customer of Cred, contacted Cred to inquire about its finances. During the two-hour call, the cryptocurrency exchange learned for the first time that Cred had no hedges, that its asset to liabilities ratio was off by tens of millions of dollars, and that Cred discovered it had lost over $8 million in February 2020 after Alexander was scammed by a fake customer earlier that year. According to the Schatt Indictment, Cred filed bankruptcy on November 7, 2020, and in a bankruptcy-related filing, Schatt misleadingly claimed that Cred’s financial difficulties were “primarily due to James Alexander’s “malfeasance,” including his appropriation of approximately 255 bitcoin on June 24, 2020,” and his alleged failure to do proper due diligence with respect to the February 2020 scam.
With respect to Alexander, the Alexander Indictment alleges that between May 15, 2020, and June 24, 2020, Alexander reassured a victim that the flash crash was “a good thing” for Cred and failed to disclose to another customer that Cred was having a solvency crisis. In addition, the Alexander Indictment lists two transactions in which victims transferred funds to Cred after receiving reassurances from Alexander that Cred’s financial situation was sound. The Alexander Indictment further describes how on or about June 24, 2020, the day Schatt fired him from his position in Cred, Alexander instructed a Cred employee to transfer approximately 225 bitcoin from a Cred account to one controlled by Alexander. The indictment alleges that in the months following his ouster, Alexander appropriated the bitcoin to his own use, including converting some of it to U.S. dollars, depositing the assets in his private bank account, and making personal expenditures.
In sum, the defendants are charged with the following crimes:
Defendant
Violation
Maximum Sentence (per count), if Convicted
All Defendants (1 count, each)
18 U.S.C. § 1349
Conspiracy to Commit Wire Fraud
20 years’ imprisonment
$250,000 fine
3 years’ supervised release
SCHATT (13 counts)
PODULKA (13 counts)
ALEXANDER (4 counts)
18 U.S.C. § 1343
Wire Fraud
20 years’ imprisonment
$250,000 fine
3 years’ supervised release
SCHATT (1 count)
PODULKA (1 count)
ALEXANDER (8 counts)
18 U.S.C. § 1957
Engaging in Transactions in Property Derived from Specified Unlawful Activity (Money Laundering)
10 years’ imprisonment
$250,000 fine
3 years’ supervised release
SCHATT (1 count)
PODULKA (1 count)
18 U.S.C. § 1956(a)(1)(A) Engaging in a Financial Transaction to Promote Unlawful Activity
20 years’ imprisonment
$500,000 fine
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. In addition, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Schatt and Podulka made their initial federal court appearance on May 2, 2024. They have been ordered to return to court on May 8, 2024, for further proceedings including the entry of a plea. Alexander’s initial federal court appearance has not yet been scheduled.
Assistant United States Attorneys Barbara J. Valliere and Adam A. Reeves are prosecuting these cases with the assistance of Beth Margen and Kathy Tat. These prosecutions are the result of an investigation by the FBI and the IRS Criminal Investigation.
Florida man sentenced for stealing people’s identities and selling their homesRead the Press Release
ALEXANDRIA, Va. – A Florida man was sentenced today to three years in prison for conspiracy to commit mail and wire fraud.
According to court documents, beginning around February 2020, at the start of the pandemic lockdown, Jose Manuel Santiago, 43, of Sarasota, identified unoccupied homes in Virginia, Florida, North Carolina, and other states and stole the identities of the homeowners, then sold their homes out from under them to unsuspecting buyers.
Santiago and Rosson Dwayne Hamilton, 40, opened and controlled bank accounts in the names of the property owners. Santiago recruited other people, including Vernon Lavoie, 59, whom Santiago instructed to appear before mobile notaries with high-quality false identification, fraudulently represent themselves as the property owners, and forge the owners’ signatures on closing documents. After money from the sales of the homes was deposited in the accounts, the recruits withdrew the money and provided it to Santiago and Hamilton. Santiago paid recruits with small amounts of cash or illegal drugs. Santiago and Hamilton also wired money from those bank accounts to various retailers.
Though some purchases were reversed, in at least one case the third-party purchaser refused to return the home to the rightful owner despite acknowledging the fraudulent nature of the sale. In another case, the rightful owner lost his irreplaceable military memorabilia and other personal belongings as a result of the fraudulent sale of his home.
During the conspiracy, Santiago and his co-conspirators attempted to fraudulently sell at least 10 properties and stole the identities of at least 10 people. They successfully obtained $581,808 and attempted to obtain an additional $768,175. Santiago pled guilty on Feb. 20.
Hamilton pled guilty on Feb. 6 and was sentenced to one day in prison. Lavoie, who charged separately, pled guilty on July 28, 2021, and was sentenced to two years seven months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorneys Russell L. Carlberg and Christopher Hood prosecuted the case. Former Assistant U.S. Attorney Carina Cuellar prosecuted Lavoie and significantly contributed to 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. 1:23-cr-193.
This release was revised on May 7, 2024, to correct the sentence of Vernon Lavoie. The original version showed a sentence of seven months in prison.
Federal Jury Convicts Former Durant Middle School Employee of Sex CrimesRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Ryan John Capps, age 25, of Calera, Oklahoma, was found guilty by a federal jury of one count of Coercion and Enticement, one count of Sexual Exploitation of a Child/Use of a Child to Produce a Visual Depiction, and one count of Sexual Abuse of a Minor in Indian Country.
The jury trial began with testimony on Monday, April 29, 2024, and concluded on Wednesday, May 1, 2024, with the guilty verdicts on all charges.
During the trial, the United States presented evidence that in the autumn of 2022, while employed as a teacher and coach at Durant Middle School, Capps enticed a minor to produce child sexual abuse material and engage in illegal sexual activity. The crimes occurred in Bryan County, within the boundaries of the Choctaw Nation Reservation of Oklahoma, in the Eastern District of Oklahoma.
The guilty verdicts were the result of investigations by the Durant Police Department and the Federal Bureau of Investigation.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the trial and ordered the completion of a presentence report. The sentencing will be scheduled following completion of the report. Capps was remanded to the custody of the United States Marshal until sentencing.
Assistant United States Attorneys Jessie K. Pippin and Jessica Bove represented the United States.
District Man Sentenced to Seven-Year Prison Term for Armed Robbery and Shooting in Northwest WashingtonRead the Press Release
WASHINGTON – Lawrance Arnold, 33, of Washington, D.C., was sentenced today to 84 months in prison for shooting a civilian in the Logan Circle Area of Northwest Washington DC, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD). Mr. Arnold pleaded guilty to Armed Robbery in January 2024, in the Superior Court of the District of Columbia before the Honorable Michael Ryan.
According to the government’s evidence, on the morning of November 25, 2023, Arnold broke into the victim’s apartment in the 14th & U Street area of Northwest Washington DC. The victim woke at approximately 7:20 am and found Arnold in his apartment, taking his clothing. The victim confronted Arnold and tried to take back his property. During that altercation, which spilled into the hallway outside the apartment, Arnold pulled a gun, shot the victim in the neck, and ran.
Bleeding from the neck, the victim walked to the corner of 14th an V Street Northwest, and flagged down a police officer. Arnold was able to provide a detailed description of his assailant, which police used to apprehend Arnold several blocks away. The victim subsequently identified Arnold as his assailant. Investigators also linked the firearm used in this case to another case, in which Arnold was captured by surveillance footage after discharging a firearm.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Crystal Waddy.
Finally, they commended the work of Assistant U.S. Attorney Emmanuel Hampton, who investigated and prosecuted the case.
District Man Pleads Guilty to Two Counts of Armed RobberyRead the Press Release
WASHINGTON –Isaiah Green, 19, of Washington D.C., pleaded guilty yesterday in the Superior Court of the District of Columbia, to two counts of robbery while armed, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
On May 2, 2024, Isaiah Green pleaded guilty before the Honorable Lynn Leibovitz. Judge Leibovitz scheduled sentencing for July 5, 2024.
According to the evidence, with which the defendant agreed, he robbed two victims, D.H. on August 19, 2023, and E.C. on December 3, 2023 at gunpoint.
In the days leading up to the August 19, 2023, robbery, D.H. had seen a Stihl brand saw advertised for sale on Facebook Marketplace. D.H. contacted the purported seller and arranged to meet him in the 5100 block of B Street SE to buy the saw. When D.H. arrived, Green and an accomplice immediately grabbed D.H. and robbed him at gunpoint, taking his cell phone, wallet, credit and debit cards, and checks totaling $1500. A citizen came to D.H.’s aide after the robbery and called 911.
In the days leading up to the December 3, 2023, robbery, E.C. had also seen an item advertised on Facebook Marketplace, a Hilti Laser, and contacted the purported seller to arrange to buy it. E.C. agreed to meet the seller in the 3600 block of Highwood Drive SE. E.C. drove with his wife to that location, where a man then got out of his car with a box E.C. believed contained the laser. As E.C. got of his car to inspect the laser, two assailants approached him, held him at gunpoint, and robbed him of his wallet, containing cash and bank cards, and an iPhone 13. The gunmen then pointed their guns at E.C.’s wife and rifled through the center console of the car, taking additional cash and a card. All three men then drove off together.
Working in tandem with Prince George’s County Police, MPD Detectives obtained evidence from Facebook about the accounts used to set up these and other crimes, and used that information to identify Green. Police obtained a search warrant for his residence, which they executed on December 21, 2023. During that search, police found a phone on Green’s bed that was linked to the Facebook account used in the robbery of D.H, E.C.’s wallet, credit cards and identification card on a dresser in the same room, and the Hilti laser and box used to lure E.C. from his car.
This case was investigated by the Metropolitan Police Department and has been prosecuted by Assistant U.S. Attorneys Iris McCranie and Elizabeth Van Haasteren.
District Man Indicted on Enhanced Second-Degree Theft for Theft from CVS in SouthwestRead the Press Release
WASHINGTON – On Wednesday, May 1, 2024, Calvin Miler, 25, of Washington, D.C., was indicted by a grand jury in the Superior Court of the District of Columbia on one count of felony second-degree theft stemming from events occurring on February 2, 2024, U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD) announced.
Miler will be arraigned on May 20, 2024 before a Superior Court judge.
According to the government’s evidence, on February 2, 2024, Miler went inside the CVS store located in Southwest Washington D.C. and took store merchandise for sale from the shelves. He then walked out of the CVS store without paying for the items. Miler was arrested after investigation by members of the Metropolitan Police Department.
Miler has two or more prior theft convictions, though not from the same occasion, and therefore is subject to enhanced penalties for his alleged theft, including a mandatory minimum sentence of one year in jail for each count of theft for which he is indicted.
Since September 1, 2023, including the aforementioned case, the United States Attorney’s Office for the District of Columbia has indicted 42 cases involving a felony second-degree theft charge based on a defendant’s two or more prior theft convictions, not from the same occasion.
This case was investigated by the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Special Assistant U.S. Attorney Yee Yee Myint.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
miler_indictment_redacted.pdfDistrict Man Indicted on Enhanced Second-Degree Theft for Theft from CVS in SouthwestRead the Press Release
WASHINGTON – On Wednesday, May 1, 2024, Ernest McEachin, 39, of Washington, D.C., was indicted by a grand jury in the Superior Court of the District of Columbia on onecount of felony second-degree theft stemming from events occurring on February 23, 2024, U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD) announced.
McEachin will be arraigned on May 20, 2024 before a Superior Court judge.
According to the government’s evidence, on February 23, 2024, McEachin went inside the CVS store located in Southwest Washington D.C. and took store merchandise for sale from the shelves. McEachin then walked out of the CVS store without paying for the items. McEachin was arrested after investigation by members of the Metropolitan Police Department.
McEachin has two or more prior theft convictions, though not from the same occasion, and therefore is subject to enhanced penalties for his alleged theft, including a mandatory minimum sentence of one year in jail for each count of theft for which he is indicted.
Since September 1, 2023, including the aforementioned case, the United States Attorney’s Office for the District of Columbia has indicted 42 cases involving a felony second-degree theft charge based on a defendant’s two or more prior theft convictions, not from the same occasion.
This case was investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Special Assistant U.S. Attorney Erika Norman.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
mceachin_indictment_redacted.pdfDelta Junction man sentenced for “Bud and Breakfast” fraud schemeRead the Press Release
FAIRBANKS, Alaska – A Delta Junction man was sentenced today to two years in prison and is required to pay over $580,000 in restitution for running a years’ long scheme to defraud nearly two-dozen investors out of over $600,000.
According to court documents, from January 2017 to January 2020, Brian Corty, 53, was the organizer and manager of a conspiracy to use false and fraudulent claims to gain investments for a potential business and use the investments for personal gain. As part of the scheme, Corty sold investors units in Ice Fog Holdings LLC to raise capital for a “Bud and Breakfast” which was described as a marijuana theme park, where they would grow, cultivate and sell marijuana, and allow customers to use marijuana on site.
Corty purchased a building on the Richardson Highway near Salcha, Alaska, as the proposed location of the business. Corty falsely told investors that they were already growing marijuana and generating income and that the business would make millions of dollars in annual sales. Based on these misrepresentations, at least 22 people invested over $600,000 into the fraudulent scheme and the defendant used the money for personal gain, including to refinance his home and pay off debt.
Corty pleaded guilty in January to one count of conspiracy to commit wire fraud. Corty is also required to serve three years’ supervised release as part of his sentence.
“Mr. Corty manipulated unknowing investors by promising millions in proceeds and used their money for his personal gain,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Ensuring that white collar criminals, like Mr. Corty, are held accountable is a priority for my office. No one is above the law. We will continue work with our law enforcement partners to pursue prosecutions against individuals who choose to exploit unknowing victims through fraudulent means.”
“Mr. Corty lured investors with promises of prosperity and guaranteed returns, when in truth, he diverted the investor money to fund his own lifestyle,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “Those who engage in fraudulent schemes at the expense of others will be investigated and held accountable.”
The FBI Anchorage Field Office, Fairbanks Resident Agency, with assistance from the Alaska Department of Law, investigated the case.
Assistant U.S. Attorneys Tom Bradley and Ryan Tansey prosecuted the case.
Convicted felon pleads guilty to new child pornography chargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Joshua Zak, 46, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possession of child pornography, which carries a mandatory minimum penalty of 10 years in prison, and a maximum of 20 years.
Assistant U.S. Attorney Franz M. Wright, who is handling the case, stated that in May 2018, Zak was convicted of receipt of child pornography and sentenced to serve 72 months in prison and 20 years supervised release, which began in May 2022. In March 2023, a United States Probation Officer interviewed Zak during a home visit, during which he admitted to using a smart phone that he found at his mother's residence to view pornography. Zak also admitted that he found an old SD card that was not located by law enforcement when he was previously arrested. A few days later, U.S. Probation met Zak at his mother's residence, where he led officers to a trash bag that contained several electronic devices, as well as an SD card. A review of the SD card recovered more than 600 images and videos of child pornography, some of which included depictions of violence against children.
The plea is the result of an investigation by the U.S. Probation Office, under the direction of Chief Probation Officer Timothy Englert, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing scheduled for September 9, 2024, before Judge Vilardo.
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Convicted Felon Sentenced to More Than Six Years in Prison for Possessing a Firearm and Ammunition while on Federal Supervised ReleaseRead the Press Release
BOSTON – A Boston man was sentenced today for being a felon in possession of a firearm and ammunition, specifically a loaded Taurus 9mm pistol with an obliterated serial number. At the time of the offense, the defendant was on supervised release after serving a federal prison sentence for firearm and drug convictions.
Tevin Abercrombie, 29, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 78 months in prison followed by three years of supervised release. In January 2024, Abercrombie was convicted by a federal jury of one count of being a felon in possession of a firearm and ammunition.
In April 2020, while responding to shorts fired, officers stopped a vehicle that was of interest. During that stop, Abercrombie was found to be in possession of a black Taurus 9mm pistol with an obliterated serial number loaded with one round in the chamber and an additional seven rounds of 9mm ammunition in the magazine. In 2016, Abercrombie was convicted in federal court of being a felon in possession of a firearm and ammunition and conspiracy to distribute cocaine base, cocaine and heroin and sentenced to 60 months in prison. Abercrombie was on federal supervised release at the time of this offense.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorneys John T. Dawley and Fred M. Wyshak, III of the Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Chicago Health Care Company and Its Owner to Pay $1 Million to Settle False Claims Act LawsuitRead the Press Release
CHICAGO — A Chicago health care company and its owner will pay $1 million to the United States to resolve a civil lawsuit arising from the submission of false claims to Medicare.
BRIAN J. WEINSTEIN and APOLLO HEALTH INC. violated the False Claims Act by submitting claims to Medicare for care plan oversight services that were not actually performed, according to a consent judgment and settlement agreement filed in U.S. District Court in Chicago. Care plan oversight services (“CPO”) involve a physician’s supervision of a patient receiving complex or multidisciplinary medical care. At Weinstein’s direction, Apollo’s billers submitted 12,592 claims for CPO services on behalf of 25 providers purportedly employed by Apollo. Weinstein knew that the providers had not actually provided CPO services to Medicare patients and that CPO services had not been documented in the patients’ medical records.
As part of the consent judgment and settlement agreement entered this week by U.S. District Judge Sharon Johnson Coleman, Weinstein and Apollo agreed to pay $1 million to the United States. The consent judgment and settlement agreement resolve a civil lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private citizens to bring lawsuits on behalf of the United States for false claims, and to share in any recovery. The United States intervened in the lawsuit prior to the settlement.
The consent judgment and settlement were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney Virginia Hancock.
In a separate criminal prosecution, Weinstein pleaded guilty last year to a federal health care fraud charge and was sentenced to three years of probation.
Consent Judgment and Settlement AgreementCartersville Man Pleads Guilty to Producing Child PornographyRead the Press Release
ROME, Ga. – Ian Alicea Prewett has pleaded guilty to sexual exploitation of a child. In connection with his guilty plea, Prewett admitted he engaged in sex acts with minors under the age of 18 and enticed a child under the age of eight to produce sexually explicit images.
"Prewett preyed upon innocent children by enticing them to send him sexually explicit images and then victimized two minors, including during an out-of-state trip, by sexually assaulting those children,” said U.S. Attorney Ryan K. Buchanan. “This office remains steadfast in our commitment to work with our law enforcement partners to uncover and prosecute child sexual predators attempting to lurk behind the anonymity of the internet.”
“Due to the dedication of our special agents and law enforcement partners, Prewett is no longer able to victimize children within our communities,” said Anthony J. Patrone, Acting Special Agent in Charge of HSI Atlanta that covers Georgia and Alabama. “HSI will continue to seek justice for victims and hold child predators accountable.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On various dates between 2020 and 2022, Ian Alicea Prewett uploaded sexually explicit digital images of minors to Instagram. While he tried to conceal his online identity, in May 2023, federal agents identified him as the individual who uploaded the images and obtained a warrant to search his home. During the search, agents discovered a cell phone associated with the Instagram accounts that Prewett used to distribute child pornography.
Additionally, at the time agents executed the search warrant, Prewett was awaiting trial in Cobb County, Georgia, for statutory rape, child molestation, and child enticement. Those charges resulted from Prewett chatting with a 14-year-old girl on Instagram, asking her to send him sexually explicit photographs of herself, meeting her at her school bus stop, engaging in sexual intercourse with her, and then dropping her off at her school.
Prior to his arrest in May 2023, Prewett used social media to entice numerous minors to create sexually explicit material and engage in sexual acts. One of his victims was a minor under eight years old living in the United Kingdom. Prewett directed her to send him pictures and videos of herself performing sexual acts. Prewett also instructed a minor from Mobile, Alabama to do the same. Prewett later traveled to Alabama to meet, photograph, and engage in sex acts with the minor.
Sentencing for Ian Alicea Prewett, 30, of Cartersville, Georgia, is scheduled for September 3, 2024, at 3:00 p.m. before U.S. District Judge William M. Ray, II in Rome, Georgia.
This case is being investigated by Homeland Security Investigations with assistance from the Cobb County Police Department, Bartow County Sheriff’s Office, Georgia Bureau of Investigation, and Wiltshire Police (United Kingdom).
Assistant U.S. Attorneys Theodore S. Hertzberg and Calvin A. Leipold, III are prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Bloods Gang member going to prison for 12 yearsRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Mario Cain-Henry, 31, of Rochester, NY, who was convicted of conspiracy to distribute controlled substances and possession of a firearm in furtherance of drug trafficking, was sentenced to serve 144 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that Cain-Henry is an associate of the nationally recognized Bloods Gang, and a member of a local subset known as the Immortal Stone Gorilla Gang. In December 2022, Cain-Henry and others were arrested after a lengthy investigation into narcotics trafficking, weapons possession, and associated violence by several members of the group. On December 14, 2022, several search warrants were executed at locations associated with Cain-Henry, including his residence. During the searches, investigators recovered quantities of narcotics, drug paraphernalia, cash, loaded firearms, and ammunition.
The investigation began in the aftermath of the murder of Rochester Police Investigator Anthony Mazurkewicz and the assault of Investigator Sino Seng in July 2022. It’s alleged that individuals associated with Cain-Henry were engaged in a violent feud with another group led by Brandon “B-Mack” Washington. Washington and several associates have also been charged with federal drug and weapons offenses.
The sentencing is the result of an investigation conducted by members of the Rochester Police Department Special Investigation Section, under the direction of Chief David Smith, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarantino, III, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division.
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Baton Rouge Woman Sentenced to Three Years in Federal Prison for Defrauding COVID-19 Pandemic Relief ProgramsRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Chief Judge Shelly D. Dick sentenced Linda Gurvin, age 56, a resident of Baton Rouge, Louisiana, to 36 months in federal prison following her convictions for wire fraud and unlawful monetary transactions. Following her release from federal prison, she will be required to serve three years supervised release. The Court further sentenced Gurvin to pay $496,673.78 in restitution to the United States Small Business Administration and ordered her to forfeit an additional $447,600 in proceeds from her offenses. Previously in this investigation, the United States seized a 2020 Range Rover that Gurvin purchased with fraudulent proceeds, and at today’s sentencing, the Court ordered her interest in the vehicle forfeited.
According to admissions made as part of her guilty pleas, Gurvn submitted six fraudulent applications seeking more than $1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), funds that were designed to provide emergency financial assistance to the millions of Americans who were suffering from the economic effects caused by the COVID-19 pandemic.
Gurvin filed several applications in the names of businesses that she had formed prior to the pandemic but which had had closed years earlier. She then filed two fraudulent applications in the names of new entities she formed after the start of the pandemic, solely for the purposes of her scheme—a purported non-profit entity that she called Gurvin’s Marine & Air Force Guardian Angels Foundation, and an entity she called Heaven’s Paradise Church of All Nations. Throughout the applications, Gurvin made false representations regarding the businesses and their operations, and she submitted fraudulent documents intended to bolster the applications, such as fraudulent documents that purported to be the businesses’ federal tax filings. Based on the false representations, Gurvin attempted to obtain more than $1 million in COVID-19 relief funds and actually received more than $440,000.
Meanwhile, as Gurvin received proceeds from the applications, she made frequent transactions to move the funds among numerous bank accounts that she controlled at the time, before spending the funds on personal expenses and purchases, such as by making large down payments on a 2020 Land Rover Range Rover and a 2021 Volkswagen Atlas.
This case was investigated by the Treasury Inspector General for Tax Administration, the Federal Bureau of Investigation, and the Small Business Administration - Office of Inspector General. The case was prosecuted by Assistant United States Attorneys Alan A. Stevens, who also serves as Senior Litigation Counsel, and J. Brad Casey.
BTC-e Operator Pleads Guilty to Money Laundering ConspiracyRead the Press Release
A Russian national pleaded guilty today to conspiracy to commit money laundering related to his role in operating the cryptocurrency exchange BTC-e from 2011 to 2017.
According to court documents, Alexander Vinnik, 44, was one of the operators of BTC-e, which was one of the world’s largest virtual currency exchanges. From its inception in or around 2011 until it was shut down by law enforcement in or around July 2017 contemporaneous with Vinnik’s arrest, BTC-e processed over $9 billion-worth of transactions and served over one million users worldwide, including numerous customers in the United States.
“Today’s result shows how the Justice Department, working with international partners, reaches across the globe to combat cryptocrime,” said Deputy Attorney General Lisa Monaco. “This guilty plea reflects the Department’s ongoing commitment to use all tools to fight money laundering, police crypto markets, and recover restitution for victims.”
BTC-e was one of the primary ways by which cyber criminals around the world transferred, laundered, and stored the criminal proceeds of their illegal activities. BTC-e received criminal proceeds of numerous computer intrusions and hacking incidents, ransomware attacks, identity theft schemes, corrupt public officials, and narcotics distribution rings. Vinnik operated BTC-e with the intent to promote these unlawful activities and was responsible for a loss amount of at least $121 million.
Despite doing substantial business in the United States, BTC-e was not registered as a money services business with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), as federal law requires. BTC-e had no anti-money laundering (AML) and/or “know-your-customer” (KYC) processes and policies in place, as federal law also requires. BTC-e collected virtually no customer data at all, which made the exchange attractive to those who desired to conceal criminal proceeds from law enforcement.
BTC-e relied on shell companies and affiliate entities that were similarly unregistered with FinCEN and lacked basic anti-money laundering and KYC policies to electronically transfer fiat currency in and out of BTC-e. Vinnik set up numerous such shell companies and financial accounts across the globe to allow BTC-e to conduct its business.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In 2017, FinCEN announced that it assessed an approximately $110 million civil money penalty against BTC-e for willfully violating U.S. AML laws, and a $12 million civil penalty against Vinnik for his role in the violations.
The FBI; IRS Criminal Investigation’s Cyber Crime Unit and Oakland Field Office; U.S. Secret Service Criminal Investigative Division; and Homeland Security Investigations (HSI) are investigating the case. The lengthy investigation was supported by numerous former prosecutors and investigators from multiple agencies.
Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Claudia Quiroz and Katie Lloyd-Lovett for the Northern District of California are prosecuting the case. Pelker and Quiroz are members of the Department’s National Cryptocurrency Enforcement Team (NCET).
The Justice Department’s Office of International Affairs provided valuable assistance in securing the extradition of Vinnik. The Justice Department thanks the Government of Greece for its cooperation in securing Vinnik’s transfer to the United States.
BTC-e Operator Pleads Guilty to Money Laundering ConspiracyRead the Press Release
SAN FRANCISCO – A Russian national pleaded guilty today to conspiracy to commit money laundering related to his role in operating the cryptocurrency exchange BTC-e from 2011 to 2017.
According to court documents, Alexander Vinnik, 44, was one of the operators of BTC-e, which was one of the world’s largest virtual currency exchanges. From its inception in or around 2011 until it was shut down by law enforcement in or around July 2017 contemporaneous with Vinnik’s arrest, BTC-e processed over $9 billion-worth of transactions and served over one million users worldwide, including numerous customers in the United States and the Northern District of California.
“Today’s result shows how the Justice Department, working with international partners, reaches across the globe to combat cryptocrime,” said Deputy Attorney General Lisa Monaco. “This guilty plea reflects the Department’s ongoing commitment to use all tools to fight money laundering, police crypto markets, and recover restitution for victims.”
BTC-e was one of the primary ways by which cyber criminals around the world transferred, laundered, and stored the criminal proceeds of their illegal activities. BTC-e received criminal proceeds of numerous computer intrusions and hacking incidents, ransomware attacks, identity theft schemes, corrupt public officials, and narcotics distribution rings. Vinnik operated BTC-e with the intent to promote these unlawful activities and was responsible for a loss amount of at least $121 million.
Despite doing substantial business in the United States, BTC-e was not registered as a money services business with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), as federal law requires. BTC-e had no anti-money laundering (AML) and/or “know-your-customer” (KYC) processes and policies in place, as federal law also requires. BTC-e collected virtually no customer data at all, which made the exchange attractive to those who desired to conceal criminal proceeds from law enforcement.
BTC-e relied on shell companies and affiliate entities that were similarly unregistered with FinCEN and lacked basic AML and KYC policies to electronically transfer fiat currency in and out of BTC-e. Vinnik set up numerous such shell companies and financial accounts across the globe to allow BTC-e to conduct its business.
Vinnik faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In 2017, FinCEN announced that it assessed an approximately $110 million civil money penalty against BTC-e for willfully violating U.S. AML laws, and a $12 million civil penalty against Vinnik for his role in the violations.
U.S. Attorney Ismail J. Ramsey; Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division; Chief Guy Ficco of IRS Criminal Investigation (IRS-CI); Special Agent in Charge William Mancino of the U.S. Secret Service (USSS) Criminal Investigative Division; and Special Agent in Charge Tatum King of Homeland Security Investigations (HSI) San Francisco made the announcement.
The FBI; IRS-CI Cyber Crime Unit and Oakland Field Office; USSS Criminal Investigative Division; and HSI are investigating the case. The lengthy investigation was supported by numerous former prosecutors and investigators from multiple agencies, including IRS-CI Special Agent James Hade (1980-2019) and former IRS-CI Special Agent Tigran Gambaryan.
Assistant U.S. Attorneys Claudia Quiroz and Katie Lloyd-Lovett for the Northern District of California and Trial Attorney C. Alden Pelker of the Justice Department’s Computer Crime and Intellectual Property Section are prosecuting the case. Pelker and Quiroz are members of the Justice Department’s National Cryptocurrency Enforcement Team (NCET).
The Justice Department’s Office of International Affairs provided valuable assistance in securing the extradition of Vinnik. The Justice Department thanks the Greek government for its cooperation in securing Vinnik’s transfer to the United States.
18-Year Prison Sentence Handed Down for District Man for Second-Degree Murder of Ex-Girlfriend in Northwest WashingtonRead the Press Release
WASHINGTON - Carson Posey, 24, of Washington, D.C., was sentenced today to 18 years in prison for second degree murder while armed related to the fatal shooting of 28-year-old Shantal Hill, on April 15, 2020, in front of the Tyler House Apartments on the south side of 1200 North Capitol Street, Northwest. The sentencing was announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Posey pleaded guilty, on September 29, 2023, to one count of second-degree murder while armed. Superior Court Judge Michael O’Keefe also ordered Posey to serve five years of supervised release.
According to court documents, on April 15, 2020, Posey and Hill walked out of the front of the apartment building following what appeared to be a heated argument involving a third person. Posey shot Hill, his ex-girlfriend, nine times in the legs, buttocks, and chest and fled the area. Hill identified her assailant to responding police officers while aid was being provided on the scene. Hill also stated, “I [am] a single mother and I can’t die.” She died shortly after midnight on April 16, 2020.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Criminal Investigations Division, Homicide Branch, of the Metropolitan Police Department.
They also commended the work of Assistant U.S. Attorney John Interrante, who prosecuted the case.
2 May 2024
Woman Pleads Guilty to Federal Wire Fraud Charges for Swindling More Than $300,000 from Her GrandmotherRead the Press Release
EAST ST. LOUIS, Ill. – A Florida woman admitted to federal charges Wednesday for scamming her grandmother living in Cahokia Heights out of more than $300,000.
Tanya M. Aboseada, 38, of Pompano Beach, Florida, pleaded guilty to 12 counts of wire fraud.
“The Department’s Elder Justice Initiative dedicates federal resources to combat abuse and financial crimes targeted at senior citizens,” said U.S. Attorney Rachelle Aud Crowe. “I’m thankful for our partnership with the FBI to hold offenders accountable, and in this case, a criminal who stole from and victimized her elderly family member.”
According to court documents, Aboseada convinced her grandmother to wire money into her bank account under false pretenses on at least 12 occasions between November 2021 and August 2022. Aboseada lied to her grandmother about needing money to transfer a truck title into her name, owing money to the IRS, paying attorney fees and fines for a vehicular accident she was in, and paying the family of an alleged child she killed in a vehicular accident to avoid going to jail.
“Older Americans are too often the target of scammers who hide behind computer screens while stealing money. But criminals who steal the hard-earned life savings of their own family members demonstrate an even greater disregard for this vulnerable population,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “The FBI is committed to investigating and holding to account those intent on harming seniors.”
In total, Aboseada admitted to stealing $317,049 from her grandmother.
Wire fraud is punishable by up to 20 years’ imprisonment per count. Aboseada’s sentencing is scheduled for Aug. 13.
This case was brought as part of the Department of Justice’s Elder Justice Initiative.
The FBI Springfield Field Office conducted the investigation. Assistant U.S. Attorneys Scott Verseman and Kathleen Howard are prosecuting the case.
Woman Accused of Bilking St. Louis-Area Company Extradited from ScotlandRead the Press Release
ST. LOUIS – A woman has been extradited from Scotland to face an indictment that accuses her of embezzling $165,000 from a St. Louis-area company.
Sarah Lynn Tweedie, now 49, was indicted in U.S. District Court in St. Louis on June 21, 2018, with three counts of mail fraud, five counts of wire fraud and two counts of aggravated identity theft. The indictment says Tweedie worked as a controller of a St. Louis area publishing company and was responsible for payroll processing, expense reimbursements and paying all company bills, including company credit cards.
The indictment says that from July through January of 2018, Tweedie stole from her employer in multiple ways. She used her company credit card and a card belonging to a former employee to make $138,137 in purchases, a Scottish kilt and a $1,239 premium seat upgrade on her flight from Chicago to Glasgow. She used the corporate account to purchase $6,400 in Amazon gift cards, the indictment says.
The indictment says Tweedie also fraudulently increased her annual salary from $80,000 to $110,000 and triggered $16,086 in expense reimbursements to which she was not entitled.
Tweedie began a long-distance relationship with a Scottish man in 2015, according to extradition documents, and they became engaged in March of 2017, the month before she began working for the publishing company.
A motion seeking to have Tweedie held in jail until trial says she told her employer in December of 2017 that her fiancée had been injured in a car accident and that she needed to leave to be with him. In reality, Tweedie had applied for and received a visa to live in Scotland and did not plan to return. She was arrested on July 9, 2019, but fought extradition. In March her final appeal was denied and United States Marshals escorted her to St. Louis.
Tweedie, formerly known as Sarah Jauregui, appeared in court Tuesday and pleaded not guilty to the charges.
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.
The Florissant Police Department and the FBI investigated the case. The Justice Department’s Office of International Affairs worked with Scottish authorities to secure the arrest and extradition of Tweedie. Assistant U.S. Attorney Kyle Bateman is prosecuting the case.
Williston Man Sentenced to 15 Years in Federal Prison for Possession of a Firearm and Ammunition by a Convicted FelonRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that on May 2, 2024, Eric Obregon, Jr., age 32, from Williston, North Dakota, appeared before U.S. District Court Judge Daniel M. Traynor and was sentenced to serve 15 years in federal prison, followed by three years of supervised release, after he pleaded guilty to Possession of a Firearm and Ammunition by a Convicted Felon.
On December 9, 2022, a Williston Police Officer approached the driver of a vehicle that was parked at the intersection of 2nd Avenue West and 42nd Street West in Williston, ND, because the vehicle was partially blocking the intersection. A second officer arrived on scene and recognized the driver of the vehicle to be Eric Obregon and knew Obregon to have warrants for his arrest.
When Obregon was asked to step out of the vehicle, he pushed one of the officers and fled on foot. As the officers pursued Obregon, they repeatedly advised him to get his hands out of his pants. Obregon presented a firearm and discharged the firearm toward the officers while running. The officers returned fire and Obregon again fired at the officers and continued to flee around the east side of a building. One of the officers fired and struck Obregon in the leg. After additional officers arrived on scene and Obregon was secured, a Smith and Wesson M&P Shield 9mm handgun was located on the ground next to Obregon, and one firearm magazine containing two rounds of ammunition was recovered from his pocket.
The defendant was prohibited from possessing a firearm and ammunition due to a previous conviction for Prohibited Possession of a Firearm, on or about September 24, 2020, in Williams County (ND) District Court. The defendant was on state probation for this conviction when he committed the instant offense.
“This is a just sentence for someone who violently put law enforcement lives at risk,” Schneider said. “Thanks to the courage and skill of the Williston Police Department, this individual was neutralized and brought to federal court to face justice. I want to thank our law enforcement partners in Williston as well as the Williams County State’s Attorney’s Office for their work in obtaining this result. The United States Attorney’s Office will continue to aggressively use the felon in possession statute to take violent offenders out of our communities and fairly put them in federal prison.”
“I would like to express sincere appreciation for the relationship between the Williston Police Department, the Williams County State’s Attorney’s Office and the Federal Prosecutors,” said Chief of Police David A. Peterson of the Williston Police Department. “The Williston Police Department believes in the partnerships we have created with the U.S. Attorney’s Office. The work completed by the men and women of the WPD, BCI, FBI and other agencies. Their work brought resolution to the Obregon case, holding the Defendant responsible for his actions. Ultimately, I am extremely thankful our Officers were able to go home to their families on the night in question and have the ability to continue to serve the Williston Community.”
"Obregon's choice to fire upon law enforcement officers was an egregious assault on their lives," said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. "With unwavering commitment, we support our partners, holding individuals like Obregon accountable for their actions, and upholding the rule of law."
This case was investigated by the Williston Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted by the United States Attorney’s Office, with Assistant United States Attorney David Hagler assigned to the case.
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Utah Man Sentenced for Conspiracy to Distribute FentanylRead the Press Release
United States Attorney Susan Lehr announced that Celso Carillo, 44, of Beryl, Utah, was sentenced on May 2, 2024, in federal court in Lincoln, Nebraska for conspiracy to distribute and possess with the intent to distribute 400 grams or more of fentanyl. Senior United States Judge John M. Gerrard sentenced Carillo to 121 months’ imprisonment. There is no parole in the federal system. After Carillo’s release from prison, he will begin a 5-year term of supervised release.
On January 10, 2023, a Nebraska State Patrol trooper stopped a car driven by Alfonso Carillo, in which Celso Carillo was a passenger, for license plate violations near North Platte, Nebraska. Celso Carillo admitted he had two THC vape cartridges in the car. Alfonso Carillo had a pipe with methamphetamine residue on his person. As a result, the vehicle was searched. Three packages of fentanyl weighing a total of 6.6 pounds were found. Later, additional information was developed which led investigators to do an additional search of the vehicle. During that search, an additional package of fentanyl weighing 2.5 pounds was found, for a total of 9.1 pounds.
While incarcerated in Lincoln County, Celso Carillo wrote two letters taking responsibility for the drugs. Alfonso Carillo, believed to be Celso Carillo’s nephew, pleaded guilty to a state felony charge of possession of meth in Lincoln County and was sentenced to 364 days in jail in June of 2023. He was given credit for time served and was released. He was federally indicted with Celso Carillo in August of 2023, but his whereabouts are currently unknown.
This case was investigated by the Nebraska State Patrol.
United States Obtains Judgment for Fraudulent Veterans Assistance Claims Against Moss Point Barber School and Owner in the Amount of $916,392Read the Press Release
Gulfport, Miss. - Todd Gee, United States Attorney for the Southern District of Mississippi, announced today that the United States obtained a civil judgment in the amount of $916,392 in connection with fraudulent veterans assistance claims made by barber school and salon owner April Tucker Beard; Beard’s salon and barber school, April’s Mane Attraction, Inc. (AMA); and April’s Mane Attraction, Inc., Academy (AMA/Academy).
On October 5, 2023, the United States filed a civil complaint against these defendants pursuant to the False Claims Act (FCA) seeking treble damages and penalties and alleging that Beard and her school knowingly defrauded the United States Department of Veterans Affairs’ Post-9/11 GI Bill education assistance program. The Post-9/11 GI Bill provides educational assistance benefits for eligible veterans and members of the armed services who enroll in qualified education or training programs. The VA pays benefits for tuition and fees directly to qualifying schools and provides qualifying veteran students a monthly housing allowance and stipend for books and supplies. These benefits are part of the United States’ promise to support veterans after honorably serving our country.
In its complaint, the United States alleged that Beard and AMA/Academy falsely certified that they provided 1500 hours of formal class instruction to its students when they did not do so; and further, that they charged comparable tuition for VA and non-VA students. Instead, Beard and her school charged grossly inflated and disproportionate tuition and fees for VA students in the amount of $22,400 as compared to $2,400 ($50/week) for non-VA students. According to the United States, Beard did not regularly conduct classes or otherwise provide instruction and most of the veteran students for whom AMA/Academy received Post-9/11 GI benefits did not receive certificates of completion and did not test with the Mississippi State Board of Barber Examiners to fulfill licensing requirements in Mississippi. The United States alleged that Beard did not maintain accurate attendance records and payment ledgers as a means to conceal her failure to adhere to program requirements.
As a result of Beard’s false certifications, the United States claimed Beard fraudulently received $235,734 in tuition payments for barber instructor and/or training services she did not provide to veterans. Under the FCA, the United States is entitled to an award of three times the government’s loss plus penalties for each claim filed. On April 19, 2024, United States District Judge Halil Suleyman Ozerden entered judgment against Beard, AMA, and AMA/Academy for $916,392.
“The Post-9/11 GI Bill is an important part of our promise to aid our military veterans and their families for honorably serving our country,” said Todd Gee, United States Attorney for the Southern District of Mississippi. “This type of fraud drains funds from vital veterans’ programs and this office remains committed to holding offenders who abuse and exploit these programs accountable.”
“Safeguarding Post-9/11 GI Bill education benefit funds reserved for deserving veterans remains a priority, and this judgment is a testament to our commitment to holding accountable those who would defraud VA’s benefit programs,” said Department of Veterans Affairs Office of Inspector General Special Agent in Charge Kris Raper of the South Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office for their efforts in this case.”
This investigation was the result of a dedicated and coordinated effort from the VA OIG, the Veterans Benefits Administration, Education Service, and the U.S. Attorney’s Office, SDMS. Assistant United States Attorney Deidre Colson investigated and litigated this matter.
United States Attorney’s Office Warns of Reported Financial Litigation ScamRead the Press Release
Salt Lake City, Utah – The U.S. Attorney’s Office for the District of Utah is alerting the public about a reported scammer making phone calls claiming to be with our office and requesting restitution payments.
This week, the office received multiple phone calls from concerned citizens regarding an individual who identifies himself as a member of the Financial Litigation Unit (FLU) of the U.S. Attorney’s Office, requesting restitution payments. The caller further claims the individual failed to appear in court regarding COVID-19 relief funds. All callers are then given a phone number to make a payment.
The U.S. Attorney’s Office will never call requesting a payment of restitution over the phone. Past due restitution payment letters are sent from our office, but criminal restitution payments are made to the federal court. Civil debts are paid through the Nationwide Central Intake Facility or through Pay.gov. If you receive a phone call from this individual or anyone claiming to be with the U.S. Attorney’s Office asking for restitution payments, this is a scam. If you think you are a victim of a scam or know someone who is, report it to the FBI at IC3.gov or the FBI Salt Lake City Field Office.
United States Attorney’s Office for the District of Maryland Secures Agreement with Hotel Owner in White Marsh, Maryland, to Ensure Access for People with DisabilitiesRead the Press Release
Baltimore, Maryland – The Department of Justice announced today it has reached a settlement agreement under the Americans with Disabilities Act (ADA) with the Hilton Garden Inn at White Marsh, located in White Marsh, Maryland, to resolve alleged violations of Title III of the Americans with Disabilities Act. The Department reached the agreement with AHIP MD Baltimore 5015 Enterprises LLC, who owns and, together with its agents, operates the hotel. Under the agreement, the hotel will provide training to its staff about the ADA’s requirements to ensure that customers enjoy equal access to its services. Without admitting it violated the ADA, the hotel owner also agreed to a monetary payment to fully resolve the matter.
The settlement resolves an ADA complaint alleging that, after reserving an accessible room, when an individual with a disability and his mother attempted to check-in, the Hilton Garden Inn provided a room that was not accessible as it lacked a bathroom with a roll-in shower. According to the complaint, the individual with a disability and his mother were forced to accept a different room that did not have a roll-in shower as they had reserved. As a result, the individual with a disability used a shower chair that was not affixed to the wall and slid backwards when he attempted to transfer, causing serious bodily injury.
The complaint prompted an investigation by the United States Attorney’s Office for the District of Maryland. The ADA requires that hotels provide access to individuals with disabilities, including honoring reservations, providing fully accessible rooms, and making accommodations.
“People with disabilities deserve equal access to life’s most basic necessities, such as safe access to bathrooms and showers,” said U.S. Attorney Erek L. Barron for the District of Maryland. “The law protects people with disabilities who are traveling and requires that hotels provide equal access to their rooms and facilities. We appreciate the hotel’s remedial action and I encourage all hotels in the District of Maryland to review their policies and facilities to ensure they are accessible to all.”
Assistant U.S. Attorney Kimberly S. Phillips represented the government during the investigation and settlement process. For more information about the ADA, please visit www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at https://www.justice.gov/crt/how-file-complaint.
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U.S. Attorney Warns of Increasing Threat from Machinegun Conversion Devices as Jackson Man Pleads Guilty to Possessing a MachinegunRead the Press Release
Jackson, Miss. – U.S. Attorney Todd Gee announced today that his office has seen an increase in cases involving illegal machinegun conversion devices (MCDs), commonly known as “switches” or “auto sears,” which convert semi-automatic handguns into fully automatic weapons (i.e., machineguns) in a matter of seconds. MCDs present a significant danger in our community to both the public and law enforcement. An individual found in possession of an MCD will face up to ten years in prison and a $250,000 fine.
The Bureau of Alcohol Tobacco, Firearms and Explosives reported a 570% increase in the number of MCDs collected by police departments between 2017 and 2021, the most recent data available.
Today in the Southern District of Mississippi, defendant Kylin Demond Russell of Jackson, 22, pled guilty to illegal possession of a machinegun by possessing a Glock pistol with an attached MCD. According to court documents, on Friday, February 9, 2024, Russell led Capitol Police officers on a high-speed chase, reaching speeds of up to 120 mph, after failing to yield for a traffic stop. When his vehicle ultimately came to a stop, he attempted to flee on foot, was detained, and two Glock pistols with attached MCDs were found in the vehicle. Capitol Police contacted the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The vehicle driven by Russell appears to match the description of a vehicle seen in a video, taken by a citizen in Jackson and widely distributed on-line, showing a person firing a weapon from the vehicle.
Russell was indicted by a federal grand jury on February 21, 2024. He will be sentenced on August 2, 2024, and faces a maximum penalty of 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
Assistant U.S. Attorney Matt Allen is prosecuting the case.
The case is being investigated by the ATF and Capitol Police and is a result of Operation Unified and Project Safe Neighborhoods (PSN), both of which are coordinated efforts between state, local, and federal law enforcement agencies. Agencies participating in Operation Unified include the Mississippi Department of Public Safety’s Bureau of Narcotics, Capitol Police and Office of Homeland Security; the Jackson Police Department; the Hinds County District Attorney and Hinds County Sheriff’s Office; the Mississippi Department of Corrections; and the FBI, DEA, and ATF, as well as the U.S. Attorney’s Office.
The PSN Program is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Army Lieutenant Colonel Arrested and Charged with Arms Export Control Act Violations, Smuggling Firearms Parts, Firearms Trafficking, Possession of Machineguns, Unlawful Transportation of a Firearm and Dealing in Firearms Without a LicenseRead the Press Release
NASHVILLE – Frank Ross Talbert, 40, a Lieutenant Colonel with U.S. Army Explosives Ordinance Disposal (EOD) assigned to Fort Campbell, is facing federal criminal charges after law enforcement officers conducted an investigation and executed multiple search warrants uncovering evidence that Talbert unlawfully imported firearms parts from Russia and other countries, unlawfully dealt in firearms without a federal firearms license, and committed multiple firearms violations related to the possession of machineguns, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee.
Talbert was arrested today on a twenty-one count federal indictment charging him with eight counts of importing defense articles without a license, eight counts of smuggling firearms parts into the United States, one count of firearms trafficking, two counts of possession of unregistered machineguns, one count of transporting a machinegun without a license and one count of dealing in firearms without a license.
If convicted, Talbert faces a maximum sentence of twenty years imprisonment and a fine up to $1,000,000.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bowling Green Field Office; U.S. Customs and Border Protection; Homeland Security Investigations; Federal Bureau of Investigation, Memphis Field Office, Nashville Resident Agency; and the U.S. Army Criminal Investigation Division. Assistant U.S. Attorney Brooke Farzad is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Seminole County Felons Indicted for Firearms OffensesRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Rovonte Lamar Daniels (29, Sanford) and Frederick Lee Brown (31, Sanford) each with possession of a firearm by a convicted felon. If convicted, Daniels and Brown each face a maximum penalty of 15 years in federal prison. The indictment also notifies Brown and Daniels that the United States intends to forfeit the firearms and ammunition involved in the offense.
According to the indictment, Daniels has previously been convicted of four felony offenses and Brown has previously been convicted of five felony offenses. Despite knowing they were felons, Brown and Daniels each possessed a Canik firearm on December 13, 2023. As convicted felons, Brown and Daniels are prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, with valuable assistance from the Seminole County Sheriff’s Office and the Orange County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Richard Varadan.
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.
Two Men Sentenced to Prison as Part of Federal Investigation That Dismantled Mexico-to-Chicago Drug PipelineRead the Press Release
CHICAGO — Two suburban Chicago men have been sentenced to prison as part of a federal investigation that dismantled a Mexico-to-Chicago drug pipeline.
SHELDON MORALES and EDUARDO SANTANA conspired with a supplier in Mexico and two inmates in a prison in Texas to traffic methamphetamine, fentanyl, and cocaine from Mexico to Evanston, Ill., and Morton Grove, Ill., in 2019. The drugs were sent in packages from California and Arizona and later sold on the streets in the Chicago area.
Law enforcement uncovered the drug trafficking activities through the use of wiretapped cellular phones, package seizures, and extensive surveillance. The case was part of an Organized Crime Drug Enforcement Task Forces investigation. OCDETF identifies, disrupts, and dismantles drug traffickers and other criminal offenders that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A jury in U.S. District Court in Chicago in 2022 convicted Morales, 42, of Morton Grove, Ill., and Santana, 47, of Skokie, Ill., on a drug conspiracy charge. Morales was also convicted of an individual drug charge related to his attempted possession of methamphetamine and fentanyl. U.S. District Judge Mary M. Rowland on Tuesday sentenced Santana to 16 years and eight months in prison. Judge Rowland sentenced Morales on April 16, 2024, to 19 years and seven months in prison.
Two other defendants were also convicted and sentenced to prison as part of this investigation. DARIUS MORALES, 34, of Evanston, Ill., was sentenced in 2022 to nearly eight years in federal prison for illegally possessing a semi-automatic handgun in Evanston. DEMETRIUS SHAVERS, 42, of Chicago, was sentenced in 2021 to more than six and a half years in federal prison for trafficking heroin, cocaine, and fentanyl in the Chicago area.
The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office. Substantial assistance was provided by the Evanston Police Department. Assistant U.S. Attorneys Charles W. Mulaney and Kirsten Moran represented the government.
Two Individuals Arrested for Defrauding Canadian Company that Sought to Purchase Protective Surgical Masks at Outset of Covid-19 PandemicRead the Press Release
Earlier today, at the federal courthouse in Central Islip, a criminal complaint was unsealed charging Jonathan Cannon and Julie Dotton with wire fraud in connection with a scheme to defraud a company seeking to purchase personal protective equipment (“PPE”) at the outset of the COVID-19 pandemic. Cannon was arrested this morning at his home on Long Island and arraigned before United States Magistrate Judge Steven L. Tiscione who released the defendant on a $500,000 bond. Dotton was arrested this morning in Buffalo and will make her initial appearance this afternoon in federal court in the Western District of New York.
Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“As alleged in the complaint, the defendants sought to take advantage of a provider’s need for life-saving personal protective equipment through a fraudulent scheme that was designed in reality to line their own pockets,” stated United States Attorney Peace. “This Office will continue to work diligently to ensure that fraudsters who sought to capitalize on the worldwide pandemic will be brought to justice. There is no free pass for Covid-19 fraud.”
“Jonathan Cannon and Julie Dotton allegedly defrauded a healthcare company of approximately $8.2 million under the false pretense of selling personal protective equipment. The defendants’ alleged failure to provide these critical garments, especially during the onset of a global pandemic, selfishly deprived potential consumers and patients in need. Today’s arrests highlights the FBI’s steadfast pursuit of those who jeopardize the health of others for personal financial gain,” stated FBI Assistant Director-in-Charge Smith.
According to court filings, as part of their fraudulent scheme, Cannon and Dotton allegedly misrepresented their ability to obtain PPE to a Canadian company that was an official provider of PPE to two Canadian provinces during the COVID-19 pandemic. Using a nominal entity she controlled, Dotton entered into a contract with the company to sell approximately 12 million face masks to it for $8.2 million. Cannon and Dotton then caused the company to wire the $8.2 million payment to a purported third-party escrow agent’s bank account. Rather than use the funds to procure the PPE as promised, Cannon and Dotton caused the purported escrow agent to transfer the funds to a bank account controlled by Cannon, who, in turn, disbursed the funds to various third parties for the defendants’ benefit. After Cannon and Dotton failed to procure the agreed upon PPE for the company, and the company demanded delivery of the PPE or a refund, Cannon and Dotton strung them along with excuses for a number of months.
The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Drew G. Rolle, John O. Enright and Adam Toporovsky are in charge of the prosecution with assistance from Paralegal Specialist Peyton Jefferson.
The Defendants:
JONATHAN CANNON
Age: 58
Miller Place, New YorkJulie Dotton
Age: 51
Orchard Park, New YorkE.D.N.Y. Docket No. 24-MJ-342
Two District Men Sentenced to Decades in Prison for January 2021 Murder in Southeast WashingtonRead the Press Release
WASHINGTON – Delonta Stevenson, 29, and Vorreze Thomas Jr., 26, both of Washington, D.C., were sentenced today for the murder of Terrance Allen, 32, in Southeast Washington, D.C. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Delonta Stevenson was sentenced to 85 years in prison by D.C. Superior Court Judge Marisa J. Demeo after being found guilty on February 1, 2024 of conspiracy to commit a crime of violence, first-degree murder while armed, two counts of assault with intent to kill while armed, and related firearms offenses.
Vorreze Thomas Jr. was sentenced to 53 years in prison by D.C. Superior Court Judge Marisa J. Demeo after being found guilty on February 1, 2024 of conspiracy to commit a crime of violence, first-degree murder while armed, two counts of assault with intent to kill while armed, and related firearms offenses. Thomas was found guilty under an aiding and abetting theory.
According to the government’s evidence presented at trial, on the morning of January 18, 2021, Stevenson and Thomas’ vehicle intercepted a vehicle driven by Mr. Allen as it was leaving the Stanton Glen Apartments. Stevenson fired thirty-four shots with a rifle, while sitting in the front passenger’s seat, into the back of Mr. Allen’s vehicle. As a result, the victim was killed and two other passengers in Mr. Allen’s car were wounded. Mr. Allen was not the intended target; rather, Stevenson and Thomas were attempting to kill one of the other men in the car with Mr. Allen with whom they had a dispute.
Following the shooting, Stevenson and Thomas attempted to flee the scene in Thomas’ vehicle. A nearby MPD officer heard the shooting, observed the men fleeing the scene and was given authorization to pursue. Stevenson and Thomas eventually crashed their vehicle at the intersection of 29th and Erie Street SE and successfully fled on foot. Both men were arrested on February 17, 2021.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department Homicide Branch. They also expressed appreciation for the assistance provided by the U.S. Marshals Service and the Capital Area Regional Fugitive Task Force. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Paralegal Specialist Tasha Harris, Lead Paralegal Specialist Meridith McGarrity, Paralegal Specialists Mabry Johnson, Lashone Samuels, and Stephanie Gilbert, Investigative Analyst Zach McMenamin, Supervisory IT Specialist Leif Hickling, IT Specialist Charlie Bruce, Supervisory Victim-Witness Services Coordinator Katina Adams-Washington, Victim/Witness Services Coordinators Shanika McCullough and Maenylie Watson, Victim Assistance Specialist Christina Bloodworth, Supervisory Security Specialist Lesley Slade, and Security Specialist Robert Cephas.
Finally, they commended the work of Assistant U.S. Attorney Jack Korba who investigated and indicted the case and Assistant U.S. Attorneys Miles Janssen and Zach Horton who prosecuted the case.
Three Men Plead Guilty to Drug Distribution ChargesRead the Press Release
UTICA, NEW YORK – Joseph Lastrina, age 38, of Norwalk, Connecticut, pled guilty today to conspiring to distribute methamphetamine.
As part of the same investigation, Thaddeus Price, age 47, of Albany, and Robert Sanger, age 59, of Rensselaer, New York, previously pled guilty to distributing methamphetamine and possessing methamphetamine with the intent to distribute it, respectively.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
The charges to which the three men pled guilty carry a maximum term of 20 years in prison; a fine of up to $1 million; and a term of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Lastrina admitted to directing both Sanger and Price to complete drug deals that he arranged in November 2022 in the Capital Region. Those transactions collectively involved 177 grams of pure methamphetamine. A search warrant executed at Sanger’s home led to the recovery of an additional 217 grams of pure methamphetamine in May 2023.
The DEA is investigating the case, which Assistant U.S. Attorneys Jonathan S. Reiner and Ashlyn Miranda are prosecuting.
State of Franklin Healthcare Associates Agrees to Resolve Potential Controlled Substances Act ClaimsRead the Press Release
KNOXVILLE, Tenn. – On May 2, 2024, United States Attorney Francis M. Hamilton III announced that State of Franklin Healthcare Associates, PLLC (SOFHA), which operates a multi-specialty physician-led medical group consisting of more than 30 clinics in Tennessee and Virginia, has agreed to pay civil monetary penalties to resolve allegations that the company violated the Controlled Substances Act (CSA) by failing to make, keep, and furnish essential documents and records pertaining to the acquisition, transfer, and disposition of Schedule III and Schedule IV controlled substances.
Pursuant to the terms of the settlement agreement, SOFHA agreed to pay $200,000 to resolve allegations that from October 2020 to January 2023, SOFHA violated 21 U.S.C. ' 842(a)(5) by failing to create or retain and could not furnish required documentation and information. The United States contends that during this time SOFHA did not make and could not produce records pertaining to: the transfers of Schedule III and Schedule IV controlled substances from SOFHA physicians to an unregistered SOFHA supply warehouse; the transfers of Schedule III and Schedule IV controlled substances from SOFHA physicians to other SOFHA physicians; the transfers of Schedule III and Schedule IV controlled substances from the SOFHA supply warehouse to unregistered SOFHA clinics for dispensing by registered SOFHA physicians; and the loss or theft of a Schedule III controlled substance.
The CSA requires that DEA registrants make and retain documents and records detailing the acquisition, dispensing, and disposition of controlled substances. The investigation revealed that SOFHA failed to implement procedures for making and preserving crucial records itemizing controlled substances acquired by SOFHA physicians and transferred to and from unregistered SOFHA clinics and a warehouse and could not provide required information to DEA when requested.
“When medical providers fail to follow the record-keeping requirements of the CSA, it significantly contributes to the risk of diversion of controlled substances from legitimate purposes to improper usage, causing harm to our citizens and communities,” said United States Attorney Francis M. Hamilton III. “This settlement agreement demonstrates that the United States Attorney’s Office, the DEA, federal, state, and local law enforcement partners, are using all tools available to enforce the requirements of the CSA and degrade the diversion of controlled substances.”
“DEA registrants have an obligation to adhere to the strict recordkeeping rules in accordance with the Controlled Substances Act in order to reduce the potential for the diversion of licit drugs with a high potential for abuse,” said Erek Davodowich, acting special agent in charge of the Drug Enforcement Administration’s Louisville Division. “State of Franklin Health Care failed to meet their obligation, resulting in a substantial financial penalty in this case.”
The DEA conducted the investigation of this matter. SOFHA cooperated with the DEA inquiry.
Assistant United States Attorney Alan G. McGonigal and Ben D. Cunningham represented the United States.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Springfield Woman Pleads Guilty to Possessing Fentanyl with Intent to DistributeRead the Press Release
BOSTON – A Springfield woman pleaded guilty on Tuesday to possessing fentanyl intended for distribution.
Karyela Santiago, 27, pleaded guilty to one count of possession with intent to distribute fentanyl. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Aug. 8, 2024. In September 2023, Santiago was indicted by a federal grand jury.
On March 30, 2022, Santiago possessed fentanyl intended for distribution. Specifically, Santiago possessed a total of 8,090 bags of fentanyl intended for distribution – containing a total of 129 grams of fentanyl.
The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, four year of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration in New England; and Springfield Police Superintendent Lawrence Akers made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office is prosecuting the case.