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Friday 22 March 2024
Mobile Woman Sentenced to Two Years in Prison for Bank Fraud and Mail TheftRead the Press Release
MOBILE, AL – A Mobile woman was sentenced to 24 months in prison for bank fraud and mail theft.
According to court documents, Sanya Heathco Gutierrez, 47, admitted to using the stolen personal identifying information of an elderly Saraland resident to create a Gmail account. Federal agents executed a search warrant for the contents of the Gmail account, which Gutierrez admitted that she used for fraudulent purposes. Specifically, in January 2023, Gutierrez used the Gmail account to open a Chime checking account and obtain a Chime debit card without the elderly victim’s knowledge or authorization. Gutierrez then fraudulently used the card at various merchants, including Cash App, Cricut, Hulu, Roku, and Walmart.
In April 2023, Mobile police received several reports of mail thefts in a residential neighborhood. Police obtained surveillance video capturing Gutierrez stealing mail from her white Chevrolet Impala. On April 13, 2023, officers arrested Gutierrez at a gas station in Mobile and seized a pile of stolen mail from the passenger seat of the Impala. Gutierrez confessed to stealing mail and attempting to cash fraudulent checks that she stole from the mail. Gutierrez allowed agents to search her house, where they found additional stolen mail and a gun with an obliterated serial number. Agents seized and obtained a warrant to search Gutierrez’s cell phone, which contained numerous messages that she sent regarding her involvement in mail theft, check fraud, and identity theft.
In addition to the 24-month prison sentence, United States District Judge Terry F. Moorer ordered Gutierrez to serve a five-year term of supervised release, during which time she will undergo drug testing and treatment. The court did not impose a fine, but Judge Moorer ordered Gutierrez to pay $200 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of made the announcement.
The United States Postal Inspection Service, the United States Secret Service, and the Mobile Police Department investigated the case. The Jackson Police Department substantially assisted the investigation.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Mexican National Sentenced for Drug TraffickingRead the Press Release
ALBUQUERQUE – A federal judge sentenced a Mexican national to five years in federal prison for trafficking marijuana into the United States. Carlos Arturo Quintana, 41, of Namiquipa, Chihuahua, Mexico, was identified as the Police Chief of Namiquipa, as well as the Namiquipa Plaza Boss for the Juarez Cartel, and extradited to the United States in August of 2022.
According to court records, in March 2011, a confidential informant (CI) ordered 600 kilograms of marijuana from Elmy Hermosillo Trujillo, a key figure in the Juarez Cartel, known for trafficking large quantities of drugs into the United States annually. The Juarez Cartel, one of Mexico's oldest and most influential criminal groups, had diversified into various illicit activities beyond drug trafficking, including human trafficking, arms trading, kidnapping, extortion, and large-scale fuel theft from the government.
On March 19, 2011, the CI met with Quintana, who arrived wearing a police uniform, driving a marked police vehicle, and was accompanied by other uniformed officers. Quintana and the other officers delivered the 600 kilograms of marijuana in a dump truck. The CI then placed a GPS tracking device with the marijuana.
By March 26, 2011, the tracker revealed the marijuana's location at a storage facility in Ciudad Juarez, Mexico, prompting a law enforcement raid resulting in arrests, a fatality, and the confiscation of drugs, firearms, and communication devices.
On January 18, 2024, Quintana pled guilty to conspiracy to distribute 100 kilograms and more of a mixture and substance containing a detectable amount of marijuana, intending and knowing that said controlled substance would be unlawfully imported into the United States. Today, Quintana was sentenced to a term of 60 months in prison followed by four years of supervised release and ordered to pay a $10,000 fine.
There is no parole in the federal system.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The FBI Albuquerque Field Office investigated this case with assistance from the Drug Enforcement Administration and the Las Cruces-Doña Ana County Metro Narcotics Agency. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition of Quintana from Mexico. Assistant United States Attorneys Maria Y. Armijo and Randy M. Castellano are prosecuting the case.
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Member of Catalytic Converter Theft Crew Sentenced to Nearly Five Years in PrisonRead the Press Release
BOSTON – A Springfield man was sentenced in federal court in Boston to his role in a regional organized theft crew that stole catalytic converters from over 490 vehicles. It is alleged that the crew also stole from ATMs and jewelry stores.
Santo Feliberty, 34, was sentenced by U.S. District Court Judge Leo T. Sorokin to 57 months in prison and three years of supervised release. In October 2024, Feliberty pleaded guilty to conspiracy to transport stolen property in interstate commerce; two counts of interstate transportation of stolen property; conspiracy to commit bank theft; bank theft; and being a felon in possession of a firearm and ammunition.
In April 2023, Feliberty was arrested and charged along with six others in connection with the theft, transportation and sale of stolen catalytic converters taken from at least 496 vehicles across Massachusetts and New Hampshire in 2022 through April 2023 alone. It is believed that a significant number of additional thefts have not been identified or were not ever reported to law enforcement.
According to court filings, there has been a precipitous decline in catalytic converter thefts reported in Massachusetts as a result of the April 2023 takedown – with only seven reported incidents of catalytic converter theft over the past 11 months following the arrests, in comparison to the hundreds of thefts reported during the nine-month period prior.
Catalytic converter theft has become a nationwide problem across a multitude of state, local, and federal jurisdictions due to the high-valued precious metals they contain – some of which are more valuable than gold, with black-market prices being more than $1,000 each in recent years. The theft of a vehicle’s catalytic converter results in damage that renders the vehicle inoperable – both mechanically and legally under EPA regulations.
The thefts in this case resulted in losses of approximately $5,000 per vehicle with certain trucks costing over $10,000 to repair. This amounts to an approximate $2 million in losses suffered by more than 300 separate victims who were forced to deal with their vehicles being disabled for potentially weeks on end. The more than 300 victims included businesses and individuals across Massachusetts and parts of New Hampshire, including a food pantry, automotive businesses, tradesmen, a bakery, single parents, a home healthcare provider and the elderly. Some businesses were repeatedly targeted on multiple nights.
Once in possession of the stolen catalytic converters, the crew would then sell them to Jose Torres, who would accumulate stolen catalytic converters from multiple theft crews and then in turn sell them to scrap dealers in the Northeast – transacting approximately $30,000 to $80,000 in stolen catalytic converters per week. Torres then sold stolen catalytic converters to scrap dealers who have since been charged federally for interstate transportation of stolen property and money laundering in the District of Connecticut, the Eastern District of California and Northern District of Oklahoma.
At sentencing, Feliberty was held accountable for his participation in thefts of catalytic converters from 52 vehicles across eight cities and towns in Massachusetts and New Hampshire. On the first night of the thefts, Feliberty was confronted by the vehicle owner, who took matters into his own hands and smashed out the rear window of the car Feliberty was driving.
In addition to the catalytic converter thefts, Feliberty also conspired to steal from ATMs of federally insured banks in Massachusetts on three separate occasions in December 2022. This conspiracy involved the use of stolen trucks to rip the ATMs from the ground and gain access to the vault.
Feliberty also committed burglaries of two New Hampshire jewelry stores on Jan. 12, 2023, and the theft of a trailer on Dec. 14, 2022. The combined total value of the jewelry stolen during the burglaries was determined to be over $137,000, with each store facing approximately $10,000 in costs to repair the resulting damage.
Additionally, a firearm and ammunition were found at Feliberty’s residence. Feliberty is prohibited from possessing firearms and ammunition due to prior felony convictions.
On May 17, 2023, Torres pleaded guilty to his role in the catalytic converter theft conspiracy and is scheduled to be sentenced at a later date.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Kevin Gallagher, Director of Operations for the National Insurance Crime Bureau, Northeast Region made the announcement today. Valuable assistance was also provided by the United States Attorney’s Offices for the District of Connecticut, the Northern District of Oklahoma and the Eastern District of California; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the New England State Police Information Network (NESPIN). Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
Over 70 local police departments in Massachusetts, New Hampshire and Connecticut contributed to this investigation through the submission of their investigations of catalytic converter thefts in their jurisdiction. The Massachusetts police departments contributing to the investigation were Abington, Acton, Andover, Auburn, Bedford, Bellingham, Beverly, Billerica, Burlington, Bridgewater, Canton, Carver, Chelmsford, Concord, Cranston, East Hampton, Easton, Fitchburg, Framingham, Franklin, Gardner, Hampton, Hanover, Haverhill, Hingham, Holliston, Holyoke, Hudson, Ipswich, Lawrence, Leominster, Lynn, Malden, Mansfield, Medford, Marlborough, Methuen, Middleton, Milford, Millbury, Needham, Newton, Northborough, Norwell, Norwood, Peabody, Pembroke, Plymouth, Randolph, Rockland, Sharon, Shrewsbury, Springfield, Sterling, Sturbridge, Sudbury, Tyngsborough, Walpole, Waltham, Watertown, West Bridgewater, Weymouth, Wilmington, Woburn and Worcester. The Bow, Concord, Derry, Hooksett, Hudson, Londonderry, Manchester, Salem and Windham New Hampshire police departments also contributed. The South Windsor and Windsor Connecticut Police Departments also contributed to the investigation.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Ordered to Remove Shipping Container and Floating Docks from Lake Worth Lagoon after Violating Rivers and Harbors ActRead the Press Release
The U.S. District Court for the Southern District of Florida ordered a man to remove a shipping container and floating docks on which it rested from Lake Worth Lagoon near Palm Beach, Florida.
A 2021 complaint alleged that Fane Lozman violated the Rivers and Harbors Act (RHA) by placing the shipping container – which Lozman modified to include windows, doors, stairs, a rooftop deck and other additions – on floating docks in navigable waters of the United States without authorization. Since the United States commenced the action, Lozman removed several pieces of floating docks from Lake Worth Lagoon, but two floating docks and the modified shipping container remained.
Photo of floating docks and a shipping container on Lake Worth Lagoon, from United States’ Motion for Summary Judgment, Page 4 in U.S. v. Fane Lozman, case no. 21-cv-81119.Lozman moved the floating docks and shipping container to different areas in Lake Worth Lagoon and anchored them. One of the floating docks split apart. And Lozman’s floating docks became unmoored on several occasions including once when the dock with the shipping container on it floated across Lake Worth Lagoon and beached at a public park. The floating docks together weigh over 100,000 pounds.
Lake Worth Lagoon is Palm Beach County’s largest estuary at up to a mile wide and running approximately 21 miles from North Palm Beach to Ocean Ridge, with two inlets connecting it to the Atlantic Ocean. The Atlantic Intracoastal Waterway cuts through Lake Worth Lagoon.
“Building or placing structures in navigable U.S. waters without authorization is a violation of the Rivers and Harbors Act,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Unlawful structures can pose increased risks of harm to others, as in this case. We’re committed to enforcing the law.”
“The Rivers and Harbors Act provides for the safety of navigable U.S. waters,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Prompt enforcement action to remove unauthorized structures is needed to protect persons and commerce in navigable U.S. waters.”
“USACE Jacksonville greatly appreciates the expertise and support that the Justice Department brought to resolving this matter,” said District Commander Col. James Booth of the U.S. Army Corps of Engineers' (USACE) Jacksonville District.
“The USACE Jacksonville regulatory enforcement program is working to deter unauthorized activities such as this, while continuously maintaining the integrity of the nation's waterways and aquatic resources,” said Compliance and Enforcement Chief Bobby Halbert of USACE’s Jacksonville District.
The USACE’s Jacksonville District referred the case to the Justice Department’s Environment and Natural Resources Division (ENRD). The Jacksonville District Enforcement Section is often aided by state and federal agencies, as well as groups and individuals who report suspected violations. To report suspected violations of the Rivers and Harbors Act, contact the Jacksonville District's enforcement program at [email protected].
Trial Attorneys Brandon N. Adkins and Rachel Martinez of ENRD’s Environmental Defense Section and Civil Section Chief Dexter Lee of the U.S. Attorney’s Office for the Southern District of Florida handled the case.
Los Angeles Attorney Charged with Tax Evasion and Willful Failure to Pay TaxesRead the Press Release
A federal grand jury in Los Angeles indicted a California attorney yesterday with attempting to evade payment of his individual income taxes and willful failure to pay taxes.
According to the indictment, Milton C. Grimes, an attorney in Los Angeles, owed the IRS more than $1.7 million in taxes for tax years 2010 and 2014. The IRS allegedly tried to collect the unpaid taxes from Grimes by, among other things, levying his bank accounts. In response to the IRS’ collection efforts, from 2014 through 2020, Grimes allegedly engaged in a scheme to thwart the IRS’ levies by keeping his personal bank account balances low by routinely purchasing cashier’s checks and withdrawing cash from his business bank accounts, often immediately after depositing funds to his business bank accounts, thereby avoiding funding his personal accounts. Grimes allegedly withdrew approximately $16 million in funds from the accounts in cashier’s checks during those years.
In addition, Grimes allegedly filed individual income tax returns for tax years 2018 through 2021 reporting that he owed approximately $700,000 in taxes. Grimes allegedly did not, and has not, paid the taxes that he self-reported he owes.
In total, Grimes is alleged to have caused a tax loss of approximately $2,418,050 to the IRS.
If convicted, Grimes faces up to five years in prison for the tax evasion count and up to one year in prison for each count of willful failure to pay taxes. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Martin Estrada for the Central District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Sara Henderson of the Justice Department’s Tax Division and Assistant U.S. Attorney Valerie Makarewicz for the Central District of California are 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.
Los Angeles Attorney Charged with Tax Evasion and Willful Failure to Pay over $2.4 Million in TaxesRead the Press Release
LOS ANGELES – A federal grand jury has indicted Los Angeles attorney Milton C. Grimes with the evasion of payment of his individual income taxes and willful failure to pay taxes, the Justice Department announced today.
The indictment filed Thursday afternoon charges Grimes with one count of attempted tax evasion and four counts of willful failure to pay taxes. He is expected to be arraigned in United States District Court on April 10.
According to the indictment, Grimes owed the IRS more than $1.7 million in taxes for tax years 2010 and 2014. The IRS tried to collect the unpaid taxes from Grimes by, among other things, levying his personal bank accounts. In response to IRS collection efforts, from 2014 through 2020, Grimes allegedly engaged in a scheme to thwart the tax levies by keeping his personal bank account balances low. Grimes deposited the money he earned from representing clients into his law firm’s business bank accounts, and then he routinely purchased cashier’s checks and withdrew cash from those business bank accounts, the indictment states. By not depositing income earned into his personal accounts, Grimes allegedly avoided IRS collection efforts. With this scheme, Grimes allegedly withdrew approximately $16 million in funds from the business accounts in cashier’s checks during those years, rather than paying the amount owed to the IRS.
Grimes also allegedly filed individual income tax returns for tax years 2018 through 2021 reporting that he owed approximately $700,000 in taxes. Grimes allegedly did not, and has not, paid the taxes that he self-reported he owes.
In total, Grimes is alleged to have caused a tax loss of approximately $2,418,050 to the IRS.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Grimes faces up to five years in prison for the tax evasion count and up to one year in prison for each count of willful failure to pay taxes. A federal district court judge will determine any sentence after considering the United States Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation is investigating this matter.
Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section and Trial Attorney Sara A. Henderson of the Justice Department’s Tax Division are prosecuting the case.
Long Island Man Pleads Guilty to Conspiring to Distribute and Distributing Fentanyl Causing Two Overdose DeathsRead the Press Release
Earlier today, in federal court in Central Islip, Devon Thurmond pleaded guilty to conspiring to distribute fentanyl from 2021 through 2023 and to distribution of fentanyl in April 2021that ultimately caused the overdose death of a victim (Victim-1). As part of his plea, Thurmond admitted that he knowingly conspired with his codefendant Cartier Funderburke to sell fake oxycodone pills that actually contained fentanyl and on or about April 29, 2021 sold fake oxycodone pills containing fentanyl to Victim-1, leading to their death. Additionally, Thurmond also admitted at his plea proceeding, that while he was incarcerated on an unrelated state charge, he caused fake oxycodone pills containing fentanyl to be distributed by codefendant Melissa Trimarchi which ultimately led to the overdose death of another victim (Victim-2) on or about January 9, 2023. The plea proceeding was held before United States District Gary R. Brown. Both codefendants previously pleaded guilty and are awaiting sentencing. When sentenced, Thurmond faces up to 40 years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and, William Whitton, Chief of Police, Glen Cove Police Department (GCPD), announced the guilty plea.
“As he admitted today, Thurmond’s conspiracy and sale of fentanyl disguised as prescription pain pills directly led to the poisoning deaths of two Long Island residents,” stated United States Attorney Peace. “My Office and our law enforcement partners will continue to prosecute traffickers for their callous disregard for human life in pushing deadly drugs and contributing to the alarming opioid epidemic that has continued to harm this District.”
"Fentanyl is the greatest threat to our nation. The men and women of DEA New York Division continue to do everything we can, along with our law enforcement partners, to target those responsible for poisoning and destroying our communities” stated DEA New York Division Special Agent in Charge Frank Tarentino. “While this guilty plea doesn’t bring back the lives lost, it sends a message that we will do everything we can to make sure those responsible face the consequences.”
“The Glen Cove Police Department will continue to collaborate with agents of the DEA and the U.S. Department of Justice to identify, arrest, and prosecute those who believe they can profit from selling lethal drugs in our community,” stated GCPD Chief of Police Whitton.
Between April 2021 and February 2023, Thurmond conspired with Funderburke and Trimarchi to sell fentanyl disguised as oxycodone pain pills and sold such pills to Victim-1 and Victim-2. The investigation revealed that on April 29, 2021, a 34-year-old individual (Victim-1) died of a drug-related overdose at his residence in Glen Cove, Long Island. Cellular telephone analysis and additional investigation, showed that the fentanyl that Victim-1 used was purchased from Thurmond and Funderburke earlier that same day and that Thurmond personally delivered the drugs to Victim-1. On January 9, 2023, a 27-year-old individual (Victim-2) died of a drug-related overdose at his residence in Locust Valley, Long Island. A search of Victim-2’s phone revealed text messages between Trimarchi and Victim-2, which related to Victim-2’s purchase of fentanyl in the form of a single fake oxycodone pill in the hours before his overdose death. In recorded jail calls between Thurmond and Trimarchi, Trimarchi admitted to selling the fatal dose of fentanyl in the form of a fake oxycodone pill to Victim-2, which pill came from the supply of fake oxycodone pills provided by Thurmond to Trimarchi to sell on his behalf while he was incarcerated.
According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, in 2019, nearly 71,000 people died from drug overdoses, making it a leading cause of injury-related death in the United States. The increase in overdose deaths has been driven in large part by fentanyl, a drug that has been described as 50 to 100 times more potent than morphine. In 2019, over 14,000 people died in the United States from a drug overdose involving heroin. From 2013 to 2019, the synthetic opioid death rate increased by more than 1,000 percent. Of those deaths, over 70% involved a prescription or illicit opioid. Among New York State residents, the number of overdose deaths involving any opioid increased each year between 2010 and 2017, with an overall increase of 200.2 percent from 1,074 in 2010 to 3,224 in 2017, according to the New York State Health Department. If you or someone you know is struggling with substance abuse, please contact the Substance Abuse and Mental Health Services Administration (SAMHSA) Helpline: 1-800-662-HELP (4357) or Findtreatment.gov.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendant:
DEVON THURMOND (also known as “D Rock”)
Age: 23
Glen Cove, New YorkDefendants Who Previously Pleaded Guilty:
CARTIER FUNDERBURKE (also known as “Kartier,” “Kar” and “Slim”)
Age: 24
Glen Cove, New YorkMELISSA TRIMARCHI (also known as “Mel”)
Age: 37
Glen Cove, New YorkE.D.N.Y. Docket No. 23-CR-232 (GRB)
Las Vegas Resident Sentenced to Prison for COVID-19 Fraud SchemeRead the Press Release
LAS VEGAS – A Las Vegas woman was sentenced Wednesday by United States District Judge James C. Mahan to 30 months in prison to be followed by three years of supervised release for fraudulently seeking over $1 million in COVID-19 Paycheck Protection Program (PPP) loans.
According to court documents, from April 2020 to July 2020, Karen Chapon, aka Karen Hannafious, made multiple false statements about her companies’ respective business operations and payroll expenses, and submitted false documents to support six fraudulent PPP loan applications, including false federal tax filings. As part of the fraudulent loan applications, Chapon falsely stated that she had not been convicted of a felony in the past five years, but in fact, she pleaded guilty to felony fraud offenses in 2016. She received four loans totaling approximately $596,931. Chapon used fraudulently obtained funds for her own benefit, including the purchase of a Mercedes Benz SUV.
In August 2023, Chapon pleaded guilty to one count of bank fraud. In addition to the prison term, Chapon was ordered to pay $589,484.13 in restitution.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
United States Attorney Jason M. Frierson for the District of Nevada; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Spencer L. Evans for the FBI; Acting Inspector General Heather M. Hill for the Treasury Inspector General for Tax Administration (TIGTA); and Special Agent in Charge Weston King for the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Western Region made the announcement.
This case was investigated by the FBI, TIGTA, and SBA OIG. Assistant United States Attorney Jessica Oliva and Trial Attorneys Lucy Jennings and Jennifer Bilinkas of the Criminal Division’s Fraud Section prosecuted the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Lander man arraigned for possession with intent to distribute methamphetamineRead the Press Release
Brennon Scott, age 35, of Lander, Wyoming, was arraigned on Mar. 22 for possession with intent to distribute methamphetamine. Scott pleaded not guilty. A trial has been set for May 28, before Chief U.S. District Court Judge Scott W. Skavdahl.
Scott was detained at the request of the government and remanded to the custody of the U.S. Marshals Service. If convicted, Scott faces 5-40 years’ imprisonment with no less than four years of supervised release and up to a $5 million fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the FBI and the Wyoming Division of Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Timothy W. Gist.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 24-CR-00041
Lake County Woman Arrested for COVID-19 FraudRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Nicole Harding (38, Clermont) on an indictment charging her with one count of wire fraud. If convicted, Harding faces up to 20 years in federal prison.
According to court records, between March 28 and April 14, 2021, Harding devised a scheme to defraud the Small Business Administration by submitting a false Paycheck Protection Program (PPP) loan application. PPP loans were one of the sources of economic relief provided for by the Coronavirus Aid, Relief and Economic Security (CARES) Act. Harding, however, provided false representations in her PPP application to secure the loan. The loan proceeds ($19,965) were later electronically transferred into her bank account.
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.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
This case was investigated by the United States Postal Service - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
KC Man Charged After Officers Seize 59 Firearms, Including Machine Guns, and Illegal Drugs from ResidenceRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was charged in federal court today after law enforcement officers found 59 firearms, including machine guns, along with illegal drugs during a search of his residence.
Roberto Rosales Gonzales, 23, was charged in a three-count criminal complaint filed in the U.S. District Court in Kansas City, Mo. Gonzales remains in federal custody pending a detention hearing.
On Thursday, March 21, law enforcement officers executed a search warrant at Gonzales’s residence. During the search of the residence, officers found 59 firearms of various calibers, including two machine guns, assorted ammunition, a firearm silencer, and an inert hand grenade. Officers also found approximately 114.1 grams of suspected fentanyl pills, approximately 1.3 kilograms of methamphetamine, approximately 31.4 grams of suspected heroin, and more than $22,000 in cash.
The two machine guns, which were loaded, were identified as a Glock .40-caliber pistol and a Glock 17 9x19mm pistol, each of which contained a switch to convert it into a machine gun.
According to an affidavit filed in support of the federal criminal complaint, an undercover law enforcement operation made several purchases of illegal drugs and firearms from Gonzales prior to the execution of the search warrant.
Following the transactions, the affidavit says, investigators learned that a pistol and a rifle sold by Gonzales had been reported stolen. A National Integrated Ballistic Information Network (NIBIN) evaluation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives indicates that the rifle was a match to shell casings recovered from two shootings.
Today’s criminal complaint charges Gonzales with one count of possessing methamphetamine with the intent to distribute, one count of possessing firearms, including machine guns, in furtherance of a drug-trafficking crime, and one count of illegally possessing machine guns.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by Homeland Security Investigations, the Jackson County Drug Task Force, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
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.
National Integrated Ballistic Information Network
This investigation involved leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Jury Finds Romance Scammer Guilty on All CountsRead the Press Release
SALT LAKE CITY, Utah – A federal jury convicted Clinton Chukwudi Uchendu, 26, of Dunwoody, GA, today for his involvement in a romance scam that cost victims more than $600,000. In a five day trial, Uchendu was found guilty of one count of conspiracy to commit money laundering, one count of mail fraud, and one count of operating an unlicensed money transmitting business.
According to evidence presented at trial, from February 2018 through October 2018, Uchendu participated in a money laundering conspiracy that involved receiving and transmitting funds from victims of romance scams. The object of the conspiracy was accomplished though social manipulators, referred to as “Yahoo Boys” who set up fake profiles online, developed relationships with their victims, gained the victims trust and then asked the victims for money using a variety of false pretenses. “Yahoo Boys” usually operate overseas, in this case, Nigeria, pretending to be United States soldiers, international businessmen, or celebrities. “Yahoo Boys” rely on their coconspirators in the United States, who have U.S. bank accounts to assist them. These individuals are referred to as “pickers.” As a “picker,” Uchendu provided accounts to collect funds from the victims and to add layers to conceal the source and destination of the funds, to avoid being flagged by banks. Uchendu collected money into bank accounts and then laundered the funds to Nigeria or other destinations.
At trial, the jury was presented with evidence that, Uchendu also participated in mail fraud and aided the operations of an unlicensed money transmitter. Several victims testified to losing hundreds of thousands of dollars. In addition to these victims’ testimony, evidence showed Mr. Uchendu received money from dozens of people from around the United States, whom he did not know, which he transmitted to Nigeria after retaining a portion of the money.
Uchendu is scheduled to be sentenced June 7, 2024, at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
United States Attorney Trina A. Higgins of the District of Utah made the announcement.
The case is being investigated by the FBI Salt Lake City Field Office
Assistant United States Attorneys Carl D. LeSueur and Stewart Young of the U.S. Attorney’s Office for the District of Utah are prosecuting the case.
Jury Convicts KC Man of Heroin Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was convicted in federal court today of his role in a conspiracy to distribute heroin and of illegally possessing firearms.
Edgar A. Mejia, 49, was found guilty by a jury of one count each of conspiracy to distribute heroin and possessing firearms in furtherance of a drug-trafficking crime.
On Oct. 10, 2022, law enforcement officers searched a 2000 Coachman recreational vehicle that belonged to Mejia. At the time of the search, Mejia was in custody in Oklahoma following his arrest for drug trafficking. Investigators in Oklahoma received information that Mejia had additional drugs and firearms hidden in his Coachman RV, and notified local authorities.
Officers located Mejia’s RV parked next to an abandoned residence in the 2300 block of Drury Avenue in Kansas City, Mo. Investigators searched the RV and found, hidden behind a wall in the kitchen, 541 grams of heroin, a Springfield Armory Hellcat 9mm semi-automatic handgun, an American Tactical AR-15-style rifle, and ammunition.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately three and a half hours before returning guilty verdicts to U.S. District Judge Greg Kays, ending a trial that began Wednesday, March 20.
Mejia previously pleaded guilty to one count of possessing the heroin inside the RV with the intent to distribute it and one count of being a felon in possession of the firearms recovered from the RV.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Mejia has two prior state felony convictions for possession of a controlled substance and prior federal felony convictions for conspiracy to distribute methamphetamine and for being a felon in possession of a firearm.
Under federal statutes, Mejia is subject to a mandatory minimum sentence of 10 years in federal prison without parole. The maximum sentence the court could impose is life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Ashleigh A. Ragner and Robert M. Smith and Special Assistant U.S. Attorney Jessica L. Jennings. It was investigated by the Jackson County Drug Task Force; the District Attorney’s Task Force for the 13th Judicial District in Ottawa and Delaware Counties, Oklahoma; Wyandotte Nation Tribal Police Department, Wyandotte, Oklahoma; the Kansas City, Mo., Police Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
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.
Iowa City Man Sentenced to 25 Years in Federal Prison related to Overdose DeathRead the Press Release
DAVENPORT, Iowa – An Iowa City man was sentenced yesterday to 25 years in federal prison for Conspiracy to Distribute a Mixture and Substance Containing a Detectable Amount of Heroin Resulting in Death and Distribution of a Mixture and Substance Containing a Detectable Amount of Heroin Resulting in Death.
According to public court documents and evidence presented at trial, on January 23, 2021, Iowa City Police Officers were dispatched to a residence related to a suspected overdose. After investigation, Lugene Shipp, 43, and Dione Dante Mobley, 43, were arrested related to the conspiracy to distribute and distribution of heroin.
Shipp and Mobley were both convicted after a trial last fall. This week, Shipp was sentenced to 25 years of imprisonment. After completing his term of imprisonment, Shipp will be required to serve 5 years of supervised release. There is no parole in the federal system. Mobley is scheduled to be sentenced on April 23, 2024.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Iowa City Police Department, the University of Iowa Police Department, and the Johnson County Drug Taskforce.
Inmate at FCI Miami pleads guilty to possession with intent to distribute cocaine inside a federal prisonRead the Press Release
MIAMI – On March 21, an inmate serving a 60-month sentence at the Federal Correctional Institution (FCI) Miami pleaded guilty to possession of a controlled substance with intent to distribute.
During a routine search at FCI Miami, correctional officers found Pedro Jose Collazo-Prieto with more than 50 grams of cocaine, divided among 21 plastic baggies, and one larger, unsealed plastic bag, also containing cocaine. In addition to the cocaine, Collazo-Prieto was found with more than 17 grams of marijuana.
The sentencing hearing is scheduled for May 31 before U.S. District Judge Jose E. Martinez. Collazo-Prieto faces up to 20 years in federal prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Warden Grant Heuett of FCI, Bureau of Prisons (BOP) made the announcement.
FBI Miami, Homestead Resident Agency, and BOP, Special Investigative Section (SIS), investigated the case. Special Assistant U.S. Attorney Elizabeth Noonan-Pomada is prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20456.
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Honduran National Pleads Guilty to Possession of Machinegun, Additional Firearm, and AmmunitionRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that on March 19, 2024, JUNIOR ALEXANDER MONCADA-VARGAS, age 34, of Honduras, pleaded guilty to a four-count federal indictment. Count One charged MONCADA-VARGAS with possession and transfer of a machinegun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2), and Counts Two through Four charged him with being an illegal alien in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(5)(A) and 924(a)(8).
According to court documents, on or about July 21, 2023, August 2, 2023 and September 18, 2023, respectively, MONCADA-VARGAS, sold to undercover agents, a Glock Model 22 Gen 5, .40 caliber semi-automatic handgun, with a Glock auto-sear, and approximately twenty-two (22) rounds of ammunition, a Kalashnikov USA Model KR103, 7.62 x 39 milli-meter semi-automatic rifle and approximately thirty (30) rounds of ammunition, and a Norinco Model SKS, 7.62 x 39 milli-meter semi-automatic rifle, and approximately thirty (30) rounds of ammunition. On September 18, 2023, MONCADA-VARGAS was arrested by federal agents. Following his arrest, he admitted that he was an illegal alien and unlawfully in the United States.
At sentencing, MONCADA-VARGUS, faces up to 10 years of imprisonment, up to a $250,000.00 fine, and up to 3 years of supervised release for Count One, possession and transfer of a machinegun. He faces up to 15 years of imprisonment, up to a $250,000.00 fine, and up to 3 years of supervised release for each of the charges described in Counts Two through Four, being an illegal alien in possession of a firearm and ammunition. MONCADA-VARGUS also faces a mandatory $100 special assessment fee per count.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (A.T.F.) and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crimes Unit.
Harrison County Man Charged with Firearms and Fentanyl OffensesRead the Press Release
CLARKSBURG, WEST VIRGINIA –Martin Lynn Queen, age 61, of Clarksburg, West Virginia, was indicted on federal firearms and fentanyl charges.
Queen is charged with unlawful possession of a firearm and possession with intent to distribute fentanyl. According to court documents, investigators conducted multiple vehicle and property searches, uncovering fentanyl stamps, fentanyl, drug paraphernalia, and other controlled substances, as well as several firearms. Queen is prohibited from having firearms because of a prior firearms conviction in the Northern District of West Virginia.
Queen faces up to 10 years in federal prison for the firearms charge and faces up to 20 years for the drug charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Jeffrey Parsons is prosecuting the case on behalf of the government.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug Task Force, a HIDTA-funded initiative.
An indictment is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Harrisburg Man Sentenced to 65 Months’ Imprisonment for Possessing Ammunition as Previously Convicted FelonRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jason Robles, age 43, formerly of Harrisburg, Pennsylvania, was sentenced by U.S. District Court Judge Jennifer P. Wilson to serve 65 months’ imprisonment, three years’ supervised release, and $100 in financial penalties based upon his guilty plea to possessing ammunition as a previously convicted felon.
According to United States Attorney Gerard M. Karam, in August 2021, Robles was operating a motorcycle at a high rate of speed on I-81 in Cumberland County. A Pennsylvania State Trooper attempted to stop Robles and a high-speed chase ensued where speeds reached up to 115 mph and Robles crossed the median into oncoming traffic. Robles was eventually stopped and found in possession of heroin, marijuana, and cocaine base, as well as a .9mm Polymer handgun with no serial number, known as a “ghost gun,” loaded with 15 rounds of ammunition. Prior to the August 2021 incident, Robles was previously convicted of a state felony drug offense in 2021 and a federal drug offense in 2002 that prohibited him from possessing firearms or ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Pennsylvania State Police and the Bureau of Alcohol, Tobacco, and Firearms (ATF). Assistant U.S. Attorney Bruce D. Brandler and Former Assistant U.S. Attorney Paul J. Miovas prosecuted the case.
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Four Indicted in Money Laundering ConspiracyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment Thursday against Tracy Arnett, 38, of Los Angeles; Daniel Hooker, 35, of Los Angeles; Sandro Duval, 36, of Atlanta, Georgia; and Shelina Bissett, 35, of Atlanta, Georgia, charging them with conspiracy to commit money laundering and charging Arnett and Hooker with additional counts of money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from August 2023 through March 2024, Arnett, Hooker, Duval and Bissett conspired to launder purported drug trafficking proceeds, utilizing their personal bank accounts or commercial bank accounts they operated to wire the funds to controlled accounts. By wiring the proceeds, they intended to conceal their unlawful nature and source. In total, the co-conspirators received approximately $940,000 in purported drug trafficking proceeds. Of that amount, the co-conspirators laundered approximately $811,000.
This case is the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew Thuesen and Whitnee Goins are prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $500,000 fine or twice the value of the property involved in the money laundering for the conspiracy count. Arnett and Hooker face a maximum statutory penalty of 20 years in prison and a $200,000 fine for each count of money laundering. 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former privacy consultant convicted of cyberstalking campaign against former roommate, her family members, boyfriend, police and prosecutorsRead the Press Release
Seattle – A Seattle man previously employed as a privacy consultant was convicted today in U.S. District Court in Seattle of conspiracy to engage in cyberstalking, three counts of cyberstalking in violation of a criminal order, and three counts of cyberstalking, announced U.S. Attorney Tessa M. Gorman. Sumit Garg, 34, was Indicted in March 2021. He has been in custody at the Federal Detention Center at SeaTac since that time. U.S. District Judge John C. Coughenour scheduled sentencing for June 25, 2024.
According to records in the case and testimony at trial, in 2020, Garg began an extensive campaign of threats and sexually explicit messaging and posts about a woman who used to share an apartment with Garg’s wife. Using personal information Garg accessed after he moved into the apartment with his spouse, Garg threatened and tormented the former roommate.
In April 2020, the victim reported the harassment to police. Following this, Garg and his wife tried to make it appear that they too were harassment victims and made false police reports.
Garg also used his computer skills to threaten multiple people in the former roommate’s life, including her uncle who represented her in obtaining a civil protection order; her boyfriend; the Seattle Police Detective who investigated the threats; and even the Deputy Prosecuting Attorney who prosecuted Garg for his illegal stalking conduct. Garg used his computer skills to try to hide who was sending the threats or making the posts. The stalking campaign also grew increasingly violent, ultimately coming to include gruesome threats of rape, torture, and death. Over time, Garg’s stalking campaign involved thousands of emails sent from scores of accounts set up for the purpose of stalking.
At one point in his scheme, Garg was videotaped in the lobby of the victim’s new apartment building at the same time photos were taken and sent of that location to frighten the victim.
Garg enlisted his wife in the scheme – instructing her to send harassing emails to herself and others while he was jailed to make it appear someone else was doing the harassment campaign. He told his wife to destroy clothes he wore when he was in the lobby of the ex-roommate’s apartment building. His wife did send emails but did not destroy the clothes and ultimately cooperated with investigators.
In her trial testimony, Garg’s wife said she finally felt free to tell the truth when he was booked on federal charges and would not be returning to their home to abuse her verbally and physically.
In closing arguments, prosecutors told the jury, “The victims were terrified. They were worried for themselves, and they were worried for their families…the victims all suffered substantial emotional distress.”
Conspiracy to engage in cyberstalking is punishable by up to five years in prison. Cyberstalking in violation of criminal order is punishable by a mandatory minimum of one year and a maximum of five years in prison. Cyberstalking is punishable by up to five years in prison.
The case is being investigated by the United States Secret Service with assistance from the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Andrew Friedman and Senior Trial Attorney Anthony V. Teelucksingh of DOJ’s Computer Crime and Intellectual Property Section.
Former employee of online car sales company pleads guilty to wire fraud for $2+million theftRead the Press Release
Seattle – A 41-year-old California man, who previously resided in Tacoma, Washington pleaded guilty today in U.S. District Court to wire fraud, for his scheme to steal more than $2 million from his employer, announced U.S. Attorney Tessa M. Gorman. John Whisenant was arrested in July 2023. U.S. District Judge Lauren King scheduled sentencing for July 3, 2024.
According to records filed in the case, Whisenant worked in a variety of roles at the online used car sales company beginning in October 2018. About a year after he began with the company, Whisenant was promoted into a role where he had access to the company bank accounts and accounting software.
Beginning in about June 2019 and continuing until November 2021, Whisenant used his access to make 57 wire transfers totaling over $2 million into accounts he controlled. Whisenant disguised the transfers as legitimate business expenses in the company’s accounting software with a variety of false entries. Whisenant defrauded the company of $2,084,799. Whisenant then transferred the money to others and mixed it with other funds making it difficult to trace.
According to records in the case, Whisenant used some of the money for a lavish lifestyle. He bought luxury automobiles such as Porches and Mercedes. He spent $123,096 for a 2022 Audi E-Tron and bought a $98,100 Tesla. He rented luxury homes in Southern California and purchased two airline tickets to Paris at a cost of nearly $23,000 each.
The fraud on the company accounts was discovered when a bookkeeper began a more comprehensive review of the company’s financials in January 2022. Whisenant resigned abruptly in February 2022.
Prosecutors have agreed to recommend a seven-year prison sentence. Judge King is not bound by that recommendation and can impose any sentence allowed by law. Wire fraud is punishable by up to 20 years in prison.
Whisenant has agreed to make full restitution of $2,084,779.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Sean Waite.
Former U.S. Postal Service Employee Indicted for Theft of Postal Money OrdersRead the Press Release
BOSTON – A former U.S. Postal Service (USPS) employee has been indicted for allegedly embezzling over $19,000.
Christine Hedges, 46, of Brockton, was indicted on March 20, 2024 on one count of theft of government money. She appeared today in federal court and was released on conditions.
According to the indictment, Hedges began working for USPS around 2020, most recently as a Lead Sales & Service Associate in Brockton. It is alleged that from approximately October 2021 to August 2023, Hedges engaged in a scheme to steal USPS funds for her personal use. As part of this scheme, Hedges allegedly generated, for her own use, no-fee money orders without a customer physically present at her customer window and which a customer did not request. Hedges also allegedly stole cash from her USPS workstation and often attempted to conceal her theft by replacing the cash with these fraudulent money orders. During the relevant period, Hedges allegedly generated approximately 70 fraudulent no-fee money orders. It is alleged that 11 of those no-fee money orders were made out to her boyfriend or a family member. From on or about Aug. 1, 2023 to on or about Aug. 14, 2023, video surveillance from above Hedges’ workstation allegedly showed Hedges on at least one occasion removing cash from her assigned drawer and putting it in her pocket. In all, Hedges allegedly stole approximately $19,707 in postal funds.
The charge of theft of government money provides a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of the Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Kentucky Probation and Parole Officer Sentenced for Sexually Abusing Women Under His Supervision and Covering up His MisconductRead the Press Release
Ronald Raye Tyler, 56, of Shepherdsville, Kentucky, was sentenced today to 36 months in prison and two years of supervised release for using his former position as a probation and parole officer at the Kentucky Department of Corrections to engage in unwanted sexual contact with women under his supervision.
In December 2023, Tyler admitted to engaging in unwanted sexual contact with three women who were under his supervision and to making false statements during an interview with the Kentucky State Police for the purpose of obstructing an investigation into allegations that he had sexually assaulted women under his supervision.
“The defendant is being held accountable for preying upon women who were under his supervision because of their probationary status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Probation officers should not use their position of authority to make unlawful and unwanted sexual advances on women, regardless of whether they are in custody or on probation. The Justice Department will continue to pursue justice for victims of sexual misconduct and hold law enforcement accountable for their actions.”
“I commend the FBI Louisville Field Office and Louisville Metro Police Department for their outstanding work in investigating this case,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “Citizens involved in our system of justice have every right to be treated with respect and dignity by employees within the system who exercise authority over them. We will continue to aggressively investigate and prosecute those employees who abuse their positions of trust.”
“When allegations of abuse of power are brought to our attention, the FBI will stop at nothing to uncover all of the relevant facts,” said Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office. “In this case, these women were preyed upon by an officer whose duty it was to protect them. Our hope is that today’s sentencing will bring some semblance of closure to the victims and their families, send a message that we will not ignore such egregious behavior, and begin to restore the public’s trust in law enforcement that was once placed in this officer.”
The FBI Louisville Field Office and Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force.
Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Trial Attorneys Tara Allison and Anita Channapati of the Civil Rights Division are prosecuting the case.
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Former Georgia Insurance Commissioner John Oxendine Pleads Guilty in Health Care Fraud SchemeRead the Press Release
ATLANTA - John W. Oxendine, the former Georgia State Insurance Commissioner, pleaded guilty today to conspiracy to commit health care fraud in which a co-conspirator and he referred unnecessary medical tests to a lab company in Texas in return for hundreds of thousands of dollars in kickbacks.
“John Oxendine, as the former state-wide insurance commissioner, knew the importance of honest dealings between doctors and insurance companies,” said U.S. Attorney Ryan K. Buchanan. “But for personal profit he willfully conspired with a physician to order hundreds of unnecessary lab tests, costing hundreds of thousands of dollars. He will now be held accountable for violating the public’s trust.”
“This scheme to bill for unnecessary services has no place in our healthcare system,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “It not only increased healthcare costs for all beneficiaries, but they also violated the trust of patients. John Oxendine not only profited from this scheme but took it a step farther and directed another to lie to federal agents to try and cover up the fraud.”
“Individuals who participate in kickback schemes risk undermining the integrity of federal health care programs,” said Special Agent in Charge Tamala E. Miles, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to aggressively investigate anyone engaging in illicit activities to protect taxpayer-funded federal health care programs from abuse by bad actors.”
“Today’s plea should serve as a strong deterrent to those in positions of power who seek to exploit and defraud TRICARE, the military’s healthcare system relied on by our service members, retirees, and their families,” said Special Agent-in-Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “This investigation is part of an ongoing effort by the Defense Criminal Investigative Service to work with our law enforcement partners and aggressively investigate allegations of healthcare fraud that affect the Department of Defense and put its personnel at risk.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: John Oxendine conspired with Dr. Jeffrey Gallups and others to submit fraudulent insurance claims for medically unnecessary Pharmacogenetic, Molecular Genetic, and Toxicology testing. Physicians associated with Dr. Gallups’s ENT practice were pressured to order these medically unnecessary tests from Next Health, a lab in Texas. As part of Oxedine’s health care fraud scheme, Next Health agreed to pay Oxendine and Dr. Gallups a kickback of 50 percent of the net profit for eligible specimens submitted by Dr. Gallups’s practice to the lab company.
In connection with the scheme, Oxendine gave a presentation at the Ritz Carlton in Buckhead where he pressured doctors in Dr. Gallups’s practice to order the unnecessary tests. Next Health later submitted insurance claims seeking more than $2,500,000 in payments from private health insurers for the unnecessary tests. The insurance companies paid almost $700,000 to Next Health because of these fraudulent claims. Next Health then paid $260,000 in kickbacks to Oxendine and Dr. Gallups. Some patients were also charged for the tests, receiving bills of up to $18,000.
To conceal the kickback payments, Oxendine and Dr. Gallups arranged for the payments to be made from Next Health to Oxendine Insurance Services, Oxendine’s insurance consulting business. Oxendine used a portion of the kickback money to pay debts for Dr. Gallups: a $150,000 charitable contribution and $70,000 in attorney’s fees.
When a compliance officer at Dr. Gallups’s practice raised concerns about the kickbacks, Oxendine told Dr. Gallups to lie and say the payments from Oxendine to Dr. Gallups were loans. He directed Dr. Gallups to repeat the lie after he was questioned by federal agents about Next Health. And when interviewed about Next Health by the Atlanta Journal-Constitution in connection with a private lawsuit, Oxendine falsely denied working with the lab company or receiving money from the business.
This case is related to United States v. Gallups, criminal no. 1:21-cr-00370-SCJ, in which Dr. Jeffrey Gallups pleaded guilty to health care fraud.Sentencing for John W. Oxendine, 61, of Johns Creek, Georgia, is scheduled for July 12, 2024, at 10 am before U.S. District Judge Steve C. Jones.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of the Inspector General, and the Defense Criminal Investigative Service.
Assistant U.S. Attorneys Christopher J. Huber and David A. O’Neal are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Executive Director Pleads Guilty in Federal Court for Stealing Thousands of Dollars from Gastonia Non-ProfitRead the Press Release
CHARLOTTE, N.C. – Stephanie L. Roberts, 54, of Gastonia, N.C., pleaded guilty today to stealing thousands of dollars from a non-profit corporation for cancer patients, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined by Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI),Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, and Chief Trent Conard of the Gastonia Police Department in making today’s announcement.
According to court documents, Roberts served as the executive director of a Gastonia non-profit corporation that provides support and resources for cancer patients. Beginning no later than January 8, 2016, through January 21, 2022, Roberts embezzled more than $136,000 from the non-profit corporation. In addition, Roberts admitted in court today that she failed to pay more than $200,000 withheld from the paychecks of the non-profit corporation’s employees for federal income, Medicare and Social Security taxes to the IRS. Lastly, Roberts made and subscribed under penalty of perjury U.S. Income Tax Returns in which she falsely stated the amount of tax withheld from her wages and claimed that amount was paid to the IRS.
Roberts pleaded guilty to theft in connection with health care, which carries a maximum penalty of 10 years in prison; failure to truthfully account for and pay over trust fund taxes, which carries a statutory sentence of no more than five years in prison; and making and subscribing a false tax return, which carries a penalty of up to three years in prison. According to the terms of Roberts’ plea agreement, she will be required to pay full restitution to the non-profit corporation. Also, at sentencing, Roberts will be subject to additional court fines and a forfeiture money judgement. A federal judge will determine the actual sentence at a hearing not yet scheduled.
In making today’s announcement, U.S. Attorney King commended IRS-CI, USPIS, and the Gastonia Police Department for their investigation of the case.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
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Former Beverly Hills-Based Marriage and Family Therapist Indicted for Allegedly Distributing Child Sexual Abuse MaterialRead the Press Release
LOS ANGELES – A former Beverly Hills-based licensed marriage and family therapist has been indicted by a federal grand jury for allegedly distributing child sexual abuse material, the Justice Department announced today.
Ron Gad, 49, of the Pico-Robertson area of Los Angeles, was charged Thursday with one count of distribution of child pornography.
Gad, whose marriage and family therapist license expired in November 2023, is free on $250,000 bond. He is expected to be arraigned on May 3 in United States District Court in downtown Los Angeles.
According to the indictment, on December 2, 2021, Gad knowingly distributed child sexual abuse material (CSAM) involving a pre-teen via the internet and which had been shipped in interstate commerce.
Court documents previously filed in this case state that in the fall of 2022, law enforcement became aware that Gad, who maintained a Beverly Hills office for his therapy practice, had engaged in sexually explicit online chats with someone he believed was a 13-year-old girl, but who in fact was an undercover law enforcement officer.
In October 2022, Gad allegedly drove more than 180 miles from Beverly Hills to San Luis Obispo to a public park, an arranged meeting site where he believed he was to meet the “girl.” Law enforcement conducted a traffic stop, arrested Gad and seized several digital devices, according to an affidavit filed with a criminal complaint in this matter.
A search of Gad’s digital devices pursuant to a search warrant led to evidence of Gad’s distribution of CSAM, as well as communications with suspected minors and internet searches related to sex with minors, the affidavit alleges.
The San Luis Obispo County District Attorney’s Office previously charged Gad in state court. That case was dismissed so Gad could be charged in federal court.
An indictment and a complaint contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, Gad would face a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 20 years in federal prison.
Homeland Security Investigations and the San Luis Obispo County Sheriff’s Office are investigating this matter.
Anyone who may have additional information concerning this case is encouraged to call HSI's tip line at (866) 347-2423.
Assistant United States Attorneys Damaris Diaz of the Violent and Organized Crimes Section and Angela C. Makabali of the Cyber and Intellectual Property Crimes Section are prosecuting this case.
Fifth Member of Alleged Gun Trafficking Group Arrested on Indictment Charging the Burglary of a Pawn Shop for GunsRead the Press Release
WASHINGTON – A fifth defendant was arrested this morning as part of an 11-count indictment, filed in U.S. District Court, connected to the December 13, 2023, robbery of nearly three dozen firearms – which included handguns, rifles, and shotguns – from a pawn shop in Glen Burnie, Maryland that is a Federal Firearms Licensee. The indictment was announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Craig Kailimai of the ATF’s Washington Field Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
Earlier today, agents with the ATF and officers from MPD arrested defendant Tyjuan McNeal, 27, of Washington, D.C. Charged in the conspiracy with McNeal are: Vincent Lee Alston, aka “Vedo,” 22, Juwon Markel Anderson aka “Peezy,” 21, and Niquan Odumn, aka “Stickz” and “Debo,” 22, all of Washington, D.C., and Cy’Juan Hemsley, aka “Juan,” 18, of District Heights, Maryland. Alston and Anderson were arrested December 15, 2023. Hemsley and Odumn are also in custody. The charges include conspiracy to commit firearm trafficking, conspiracy to commit theft from a federal firearms licensee, unlawful possession of stolen firearms, unlawful possession of firearms by a convicted felon, and interstate transportation of a stolen motor vehicle.
“These defendants allegedly conspired to steal dozens of firearms from a licensed dealer and to illegally flood our community with them,” said U.S. Attorney Graves. “The spread of illegal firearms is like the spread of a virus; when there are more illegal guns in the community, more people will get hurt. We appreciate the efforts of our partners at ATF and MPD to stop these firearms from hitting our streets.”
“This group of individuals was looking to make a quick profit by filling the streets of D.C. with firearms and arming the sort of people who aim to destroy our communities,” said Special Agent in Charge Kailimai. “But, today, we derailed that plan by arresting a fifth member involved in this scheme, all while seizing more of the stolen firearms. We will continue protecting the public from the proliferation of illegal guns.”
According to the indictment, one of the goals of the conspiracy was to transport stolen firearms from the Maryland pawn shop into the District, and then sell or transfer the stolen firearms to other individuals. The indictment further alleges that on December 13, 2023, the five men broke into the pawn shop with a portable saw and a crowbar. They collected 34 firearms and traveled back to Washington D.C. in a stolen red sedan. Later that day, a co-conspirator attempted to sell some of the stolen guns. Hemsley reached out to an associate stating that “I got u a gift” and “I got u a missile” while sending a video of two firearms. On December 14, 2023, one of the co-conspirators transferred four of the firearms – which included two Smith & Wesson M&Ps; a Glock 47, 9mm; and an FN, FNX 45 – to an unknown third party.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Metropolitan Police Department, with assistance from the ATF Baltimore Field Division. It is being prosecuted by Assistant U.S. Attorneys Shehzad Akhtar and Ryan Lipes.
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.
Federal jury convicts New York man for defrauding restaurant employees and COVID-19 relief programRead the Press Release
NORFOLK, Va. – A federal jury convicted a Mount Vernon, New York, man today on charges of wire and mail fraud.
According to court records and evidence presented at trial, Derickson Lawrence, 67, was the Chief Executive Officer and sole owner of MarketView Resources, Inc., a company that provided third-party payroll services. MarketView had only one significant client, a Virginia Beach company that owned restaurant franchises in the mid-Atlantic region. The Virginia Beach company regularly transferred payroll money to a bank account controlled by Lawrence to pay the salaries of its employees who elected to receive their wages via debit card.
From March 2017 through October 2019, Lawrence wired approximately $230,000 from the bank account with the employees’ wages to his brokerage account, most of which he lost through risky, speculative options trading. Lawrence also used the restaurant workers’ wages to pay debit cards he gave to himself, his own employee, and family members.
As early as December 2018, on numerous occasions there was not enough money left to cover the transactions of employees who used their debit cards to withdraw their wages. The financial services company that processed those transactions for MarketView covered nearly $90,000 until they terminated their relationship with Lawrence in September 2019. On Sept. 25, 2019, when the paycards were shut off, MarketView’s own records showed an available balance to cardholders of more than $465,000, while the bank account only contained $2,400.
In addition to defrauding his client, Lawrence defrauded the Paycheck Protection Program (PPP), a COVID-19 relief program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP program was intended to provide loans backed by the Small Business Administration to certain businesses, nonprofit organizations, and other entities to help them retain their employees or stay afloat during the pandemic. In April 2020, Lawrence submitted a PPP loan application that falsely stated he had two employees and paid over $10,000 in monthly wages. Lawrence falsely portrayed MarketView’s 2020 payroll by using an altered bank statement that actually reflected activity from February 2016. Lawrence received a PPP loan of $26,250, which he used for options trading.
Lawrence faces 20 years in prison on each of the 11 counts when sentenced on July 19. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after Senior U.S. District Judge John A. Gibney, Jr, accepted the verdict.
Assistant U.S. Attorneys Anthony Mozzi and E. Rebecca Gantt are prosecuting 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. 2:23-cr-89.
Federal Jury Finds Shakopee Man Guilty of Methamphetamine TraffickingRead the Press Release
ST. PAUL, Minn. – A federal jury found a Shakopee man guilty of possession and distribution of methamphetamine, announced U.S. Attorney Andrew M. Luger.
Following a three-day trial before Judge Donovan W. Frank, Saul Rodriguez Pineda, 40, was convicted today on three counts of distribution of methamphetamine and one count of possession with intent to distribute methamphetamine. A sentencing hearing will be scheduled at a later date.
According to the evidence presented at trial, law enforcement executed a series of controlled buys of methamphetamine from Rodriguez Pineda on three separate occasions between September and October 2022. On October 12, 2022, law enforcement searched the residence where Rodriguez Pineda was staying in Shakopee, Minnesota, and found 31 pounds of methamphetamine in Rodriguez Pineda’s yard as well as a liquid methamphetamine conversion lab. Law enforcement also found numerous items related to drug trafficking inside the residence.
This case is the result of an investigation conducted by the Drug Enforcement Administration, Minnesota Bureau of Criminal Apprehension, Minnesota River Valley Drug Task Force, and the Shakopee Police Department.
Assistant U.S. Attorneys Allen A. Slaughter and Raphael B. Coburn tried the case.
Federal Grand Jury Indicts Logan County Felon for Methamphetamine and Fentanyl Trafficking and Firearms OffensesRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green, Kentucky, returned an indictment on March 13, 2024, charging a Logan County man with methamphetamine and fentanyl trafficking, possessing a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Director Tommy Loving of the Bowling Green/Warren County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Drug Task Force made the announcement.
According to the indictment, on February 15, 2024, in Warren County, Kentucky, Joshua O. Duncan, 39, possessed with the intent to distribute 500 grams or more of methamphetamine mixture and 400 grams or more of fentanyl mixture. Duncan is also charged with possessing a Smith and Wesson .38 caliber revolver in furtherance of his drug trafficking. In addition to the revolver, Duncan also possessed a Springfield Armory .45 caliber semiautomatic pistol, a Ruger .380 caliber semiautomatic pistol, and a Smith and Wesson .40 caliber semiautomatic pistol. Duncan was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On August 21, 2018, in Logan Circuit Court, Duncan was convicted of first-degree trafficking in a controlled substance, first offense, greater than 2 grams of methamphetamine.
On August 27, 2012, in Logan Circuit Court, Duncan was convicted of first-degree trafficking in a controlled substance, first offense, cocaine.
On March 11, 2010, in Logan Circuit Court, Duncan was convicted of first-degree trafficking in a controlled substance, first offense, cocaine.
On March 21, 2024, Duncan made an initial court appearance before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. If convicted, he faces a minimum sentence of 15 years in prison and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the ATF Bowling Green Field Office and the Bowling Green/Warren County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Drug Task Force.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting this 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.
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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Federal Court Enters $9.9M Penalty and Injunction Against Man Found to Have Caused Thousands of Unlawful Spoofed RobocallsRead the Press Release
WASHINGTON – A federal court in Montana entered a $9.9 million penalty on Tuesday against a man found responsible for causing thousands of unlawful and malicious “spoofed” robocalls to consumers across the nation. The court also imposed an injunction prohibiting any future violations of the Truth in Caller ID Act and Telephone Consumer Protection Act.
The case arose out of an investigation conducted by the Federal Communications Commission (FCC) into unlawful robocalls received by consumers in states including Florida, Georgia, Idaho, Iowa and Virginia in 2018. The calls displayed inaccurate caller IDs indicating they were from local phone numbers, inducing the recipients to answer the calls and listen to the recorded messages. Those messages included highly inflammatory and disturbing content, often directed at certain communities, that intended to offend or harm the recipients. For example, hundreds of the spoofed robocalls targeted residents of the Brooklyn, Iowa, area in the aftermath of a local woman’s murder. Similarly, more than 2,000 of the spoofed robocalls targeted residents of Charlottesville, Virginia, during the investigation and prosecution of James Alex Fields Jr. for killing one woman and injuring dozens during the “Unite the Right” rally in August 2017. Many consumers who received the calls submitted complaints to FCC and other law enforcement regarding unwanted and harassing robocalls.
FCC traced the unlawful spoofed robocalls to Scott Rhodes, a resident of Idaho and Montana, and in January 2021, FCC imposed a $9,918,000 forfeiture penalty against Rhodes. In September 2021, the Justice Department sued Rhodes in the District of Montana to recover that penalty and obtain an injunction. In October 2023, the United States moved for summary judgment, and the court subsequently entered an injunction and the full $9,918,000 forfeiture penalty against Rhodes, after concluding based on a de novo review of the evidence that Rhodes committed the violations found by FCC.
“The department is committed to protecting consumers from deceptive robocalls,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “We are very pleased by the court’s judgment, and we will continue working with the FCC and other agency partners to vigorously enforce the telemarketing laws that prohibit these practices.”
“Virtually every Montanan has been the subject of unwanted and harassing robocalls, and the person responsible for such calls usually escapes accountability,” said U.S. Attorney Jesse Laslovich for the District of Montana. “But not this time. In placing thousands of harassing and malicious spoofing calls to consumers across the country, Rhodes showed a blatant disregard to caller ID and telephone consumer protection laws designed to prevent this sort of conduct. I applaud the court’s injunction and nearly $10 million forfeiture penalty that hold Rhodes accountable. These results send the clear message that the Justice Department is determined to protect consumers.”
“When persistent and malicious robocallers break the law, it takes strong partnerships like this one to bring them to justice,” said Chairwoman Jessica Rosenworcel of the FCC. “I thank the Justice Department team, in conjunction with FCC lawyers, for vigorously pursuing this penalty. I especially want to thank FCC investigators for tracking down this robocaller and building such a strong case. Our agency will continue to relentlessly pursue these unwanted robocalls and build on our multi-faceted collaborative approach with law enforcement agencies at home, as well as the growing partnerships we’re fostering with our counterparts abroad, so that we can quickly and effectively neutralize bad actors.”
Assistant Director Patrick Runkle, Trial Attorney Michael Wadden, Trial Attorney Amanda Kelly, Investigator Giovan Aloisio and Senior Deputy Director Lisa Hsiao of the Civil Division’s Consumer Protection Branch handled the case with the assistance of Assistant U.S. Attorney Shannon Clarke for the District of Montana.
Drug trafficker with 10 previous convictions sentenced againRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to 24 years and four months in prison for possession with intent to distribute fentanyl.
According to court documents, from July 28, 2020, to July 15, 2022, Kevin Ronregus Jones, 54, conducted numerous sales of heroin, fentanyl, and cocaine to a confidential source working with federal investigators. In at least some of the fentanyl transactions, the defendant agreed to sell heroin, but instead knowingly sold fentanyl. On one occasion, Jones sold fentanyl while accompanied by a 12-year-old boy.
On Oct. 24, 2020, investigators executed a warrant to search Jones’ Portsmouth drug house where he received, stored, packaged, and distributed controlled substances. Investigators recovered approximately 1,683 grams of fentanyl, 420 grams of powder cocaine, 31 grams of cocaine base, four plastic bags containing drug-cutting agents quinine and caffeine, a drug press, and $24,915 in fentanyl proceeds.
Upon completion of his prison term, Jones will be subject to 10 years of supervised release.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C.; and Stephen Jenkins, Chief of Portsmouth Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-104.
Downtown Benson Business Owner Who Trafficked Pounds of Methamphetamine and Cocaine Sentenced to 14 Years in PrisonRead the Press Release
NEW BERN, N.C. – Jimmy Waylon Johnson, age 59, was sentenced to 179 months and a $50,000 fine for his role as the leader of a drug trafficking organization that distributed pounds of methamphetamine and cocaine across Eastern North Carolina. Johnson pled guilty to two drug trafficking charges and one money laundering charge on December 11, 2023.
“We are partnering with law enforcement to get illegal drugs off our streets and make our communities safer,” said U.S. Attorney Michael Easley. “Southeastern North Carolina must stay a safe place for our families and businesses. Drug traffickers like Johnson will be prosecuted and spend time behind bars.”
According to court documents and other information presented in court, officials from the Drug Enforcement Agency (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Duplin, Johnston, and New Hanover County Sheriffs’ Offices, were involved in a multi-year investigation into Johnson’s drug activity. Through joint undercover operations, traffic stops, and search warrants, law enforcement determined that Johnson was a leader in the drug trafficking organization that distributed large amounts of methamphetamine and cocaine in at least four counties, stretching from Benson down to Wilmington. Johnson’s drug distribution began as early as 2015 and lasted until his arrest in 2021.
At times, Johnson used his gambling machine business, Benson Arcade, in downtown Benson to facilitate the drug trafficking. Along with kilograms of methamphetamine, Johnson would provide video gambling machines to subordinates who would run video gambling in bars, residences, backyards, and motorcycle clubs. Local law enforcement indicate that some of these locations also became hotbeds for methamphetamine distribution and addiction. On October 14, 2021, law enforcement executed search warrants at Benson Arcade and Johnson’s residence. This resulted in the seizure of $8,000, a kilogram of methamphetamine, and half a kilogram of cocaine. There were also several items observed and seized at Benson Arcade related to the Hells Angels motorcycle gang.
As part of the investigation, four additional co-conspirators were indicted and previously sentenced:
- Edward Neal Huffman, New Hanover County, 180 months for drug distribution and possessing firearms in furtherance of drug trafficking;
- Johnie Wayne Culpepper, New Hanover County, 108 months for drug distribution and possessing firearms in furtherance of drug trafficking;
- Michelle Marie Boring, New Hanover County, 84 months for drug distribution;
- Leigh Beverly Davis, Wake County, 100 months for drug distribution and possessing firearms in furtherance of drug trafficking; and
- Randall Norris, Duplin County, 30 months for drug distribution.
The investigation into Johnson and the above co-conspirators also resulted in the seizure of 32 firearms, a bulletproof vest, and several hundred rounds of ammunition.
As part of his guilty plea, Johnson admitted to buying a motorcycle worth approximately $17,000, using drug money. This motorcycle was seized and forfeited by law enforcement.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. Assistant U.S. Attorney Tyler Lemons prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-321-FL.
District Man Sentenced to 17 Year Prison Term for Daytime Shooting in Apartment BuildingRead the Press Release
WASHINGTON – Raekwon Sutton, 26, of Washington, D.C., was sentenced on Thursday, March 21, 2024, to 17 years in prison for a shooting that took place in Southeast Washington on March 19, 2022, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD). Sutton was found guilty of multiple assault and firearms-related offenses following a trial in the Superior Court of the District of Columbia before the Honorable Lynn Leibovitz. Sutton was found guilty following a jury trial on October 3, 2023.
According to the government’s evidence, Sutton went to his ex-girlfriend’s apartment armed with a handgun. In a fit of rage, he fired ten rounds at the front door of the apartment while two family members were inside. A few hours before the shooting, Sutton sent multiple text messages and voice messages threatening to shoot at the apartment. Shortly after the shooting, Sutton sent additional messages threatening to return to the apartment and fire additional shots.
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 also expressed appreciation for the assistance provided by the U.S. Marshals Service. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Robert Platt, Paralegal Specialists Nancy Murillo and Tiffany Fogle, and Victim/Witness Advocate Lu Lan.
Finally, they commended the work of Assistant U.S. Attorneys Yasmin Emrani and Brian Yang, who investigated and prosecuted the case.
District Man Sentenced to 11 Years in Prison for the 2019 Shooting of a Man in Northwest D.C.Read the Press Release
WASHINGTON – Dominic Copeland, 33, of Washington D.C., was sentenced today to 132 months in prison for assault with intent to kill while armed, aggravated assault while armed, two counts of possession of a firearm during a crime of violence, and possession of a firearm by a convicted felon. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
A jury found him guilty on September 21, 2023. In addition to the prison term, Superior Court Judge Maribeth Raffinan ordered Copeland to serve five years of supervised release.
According to the evidence presented at trial, on April 26, 2019, the victim drove to a local fast-food restaurant after work to meet Copeland. After he was directed to follow Copeland’s car to the area of N Street and First Street NW and park, the victim entered the back seat of the car Copeland occupied and handed him money. Copeland took the victim’s money and, afterwards, a dispute occurred between them. The victim exited and returned to his own car and got in the driver’s seat. Copeland then exited the car he was in, pulled out a handgun, and shot at the victim multiple times. The victim began to drive away but was hit twice in the upper back and crashed into multiple parked cars before finally coming to rest on the side of the street. MPD officers immediately responded to the scene and found that the victim was unable to physically move because he was temporarily paralyzed by one of the bullets. The victim promptly identified his shooter to police as “Dominic,” whom he knew from work and, up to that point, had considered a friend. Police recovered six fired cartridge casings from the scene. Two bullets entered the victim’s upper back, with one puncturing his lung causing a severe medical emergency. The treating physician declared that bullet would have resulted in the victim’s death had he not received prompt medical care. Doctors left the bullets inside the victim’s body after determining that it would cause even more injury to attempt to remove them.
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 also expressed appreciation for the assistance provided by the U.S. Marshals Service and acknowledged the efforts of all of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Rachel Forman, Seth Gilmore, Gregory Kimak, and Paul Courtney, Paralegal Specialist Debra McPherson, and Supervisory Paralegal Specialist Renee Prather.
Finally, they commended the work of Assistant U.S. Attorneys Saman Danai and Richard Carlton, who investigated and prosecuted the case.
District Man Pleads Guilty to Second Degree Murder for a May 2023 Fatal Shooting in Southeast D.C.Read the Press Release
WASHINGTON - Antoine Lynch, 37, of Washington, DC, pleaded guilty today to second degree murder while armed for the fatal shooting of Devonte Maxwell, 30, of Southeast Washington, D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD). Superior Court Judge Robert Okun scheduled a sentencing hearing for June 7, 2024.
According to the government’s evidence, around 7:54 p.m. on May 11, 2023, Lynch and two other individuals approached the victim, on foot, as he was walking down the sidewalk on Prout Street, Southeast, Washington, D.C. When they were about to pass each other, the defendant pulled out a gun and shot Mr. Maxwell several times. Mr. Maxwell was treated at the scene but died from his injuries a short time later. Mr. Maxwell and Lynch had previously gotten into a verbal dispute when Mr. Maxwell was walking by Lynch’s residence earlier that same day. Surveillance video captured the prior dispute and the murder.
This case was investigated by the Homicide Branch of the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney Brian Ganjei.
Discovery Zone Learning Center to Make Changes to Comply with ADARead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that the government and the Discovery Zone Learning Center (“Discovery Zone”), a private childcare center with locations in Columbia, Hebron, and Marlborough, Connecticut, have entered into a settlement agreement to resolve allegations that Discovery Zone staff discriminated against a child with Autism Spectrum Disorder in violation of the Americans with Disability Act (“ADA”).
This matter was initiated by a complaint made with the U.S. Department of Justice on behalf of a child with Autism. Based on its investigation, the government found that Discovery Zone failed to reasonable modify its programs to accommodate the child, which resulted in Discovery Zone excluding the child from its childcare programs.
Under the terms of the settlement agreement, Discovery Zone has agreed not to discriminate against children with disabilities in the future, will implement new policies and procedures for handling requests for reasonable modifications that are consistent with the ADA, and will provide training to its staff on the ADA. Discovery Zone has also agreed to pay $1,500 to the complainant.
“No family should have to worry that their child will be excluded from group childcare because the child is disabled,” said U.S. Attorney Avery. “I want to commend the Discovery Zone Learning Center for doing the right thing by cooperating with our investigation and agreeing to comply with the ADA going forward.”
The settlement agreement is effective for three years, and the U.S. Attorney’s Office will monitor compliance during that time.
This matter was handled by Assistant U.S. Attorney Stewart C. Dearing.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700 and ask for the Civil Rights Intake Specialist.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Department of Justice Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Delaware County Mushroom Farm Owner Sentenced to 46 Months’ Imprisonment for Tax ViolationsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Donna Fecondo, 63, of Garnet Valley, PA, was sentenced by United States District Court Judge Mitchell S. Goldberg to 46 months in federal prison for tax crimes. Fecondo was also ordered to pay restitution.
Fecondo pleaded guilty in 2022, admitting that she failed to remit employment (payroll) taxes to the IRS, with a loss to the government, for the years charged in the indictment, of approximately $600,000, and failed to file corporate and personal income tax returns.
Fecondo was the president and sole owner of Joseph Silvestri & Son, a/k/a Joseph Silvestri & Son, Inc. (“JSSI”). JSSI was a business operating a mushroom farm, with its principal place of business in Garnet Valley. As the sole owner of JSSI, Fecondo was responsible for collecting, accounting for, and paying over employment taxes. JSSI paid its employees weekly and was required by the IRS to electronically deposit its payroll taxes weekly. Fecondo withheld the taxes from her employees’ pay but did not remit the taxes to the IRS.
Fecondo did not timely file Forms 943, Employer’s Annual Federal Tax Return for Agricultural Employees, for tax years 2013 through 2016. Instead, Fecondo filed the Forms 943 for tax years 2013 through 2016 in or about July 2017, well after the due dates and after the Internal Revenue Service had contacted her about her failure to pay employment taxes and her failure to file returns.
Although Fecondo reported substantial payroll taxes due and owing on the Form 943 for tax years 2013 through 2016 that she made in July 2017, and although JSSI withheld employment taxes from JSSI’s employees’ wages, Fecondo did not pay over any employment taxes to the IRS for those tax years. In total, for tax years 2013 through 2016, Fecondo should have withheld and remitted to the IRS a total of approximately $1,255,068.94 in employment taxes, but instead she remitted nothing. Of this amount, Fecondo should have withheld and remitted to the IRS a total of approximately $599,159.94 related to tax years 2015 and 2016, but instead remitted nothing.
Fecondo also failed to file her 2015 and 2016 personal income tax returns even though she knew that she was required by law to file a tax return for each of those years. Further, Fecondo failed to file corporate tax returns on behalf of JSSI for tax years 2015 and 2016.
“We’re in the middle of tax season, when a lot of people are grumbling about what they owe the IRS — but they still go ahead and pay what they’re supposed to.” said U.S. Attorney Romero. “It’s these honest taxpayers who are being robbed when people try to cheat the system. Donna Fecondo was obligated to properly remit payroll taxes to the government and file personal and business returns annually, but simply decided not to. Her nearly four-year prison sentence should send a loud message to anyone even contemplating tax fraud that it will wind up costing them dearly, in the end.”
“Payroll taxes are an integral source of funding for government programs such as Social Security and Medicare,” said Yury Kruty, IRS-CI Special Agent in Charge. “Employment tax fraud will continue to be a priority for IRS-CI and we will aggressively pursue those who do not comply with their employment tax obligations.”
The case was investigated by the Internal Revenue Service - Criminal Investigation and prosecuted by Assistant United States Attorney Karen Grigsby.
Convicted Felon Sentenced to over a Decade in Federal Prison for Armed Robbery of Far East Side Dollar GeneralRead the Press Release
INDIANAPOLIS- Devron Coleman, 39, of Indianapolis, has been sentenced to 121 months in federal prison after pleading guilty to Interference of Commerce by Robbery, Brandishing a Firearm During and In Relation to a Crime of Violence, and Unlawful Possession of a Firearm by a Convicted Felon.
According to court documents, on August 30, 2023, Coleman entered the Dollar General store located on the far east side of Indianapolis and brandished a firearm at an employee, demanding cash from the register. Coleman inadvertently stole a tracking device from the store when he collected the cash, leading IMPD officers to locate him at his Indianapolis residence quickly after.
Officers obtained a search warrant and recovered $200 in cash and a Smith and Wesson firearm used in the robbery on Coleman’s person.
At the time of his arrest, Coleman had been previously convicted of multiple felonies including two counts of being a felon in possession of a handgun, operating a motor vehicle while intoxicated, and pointing a firearm at another person. These felony convictions prohibit Coleman under federal law from ever legally possessing a firearm.
“Reducing violence is a top priority for this office and illegally armed felons in particular will continue to be the target of our investigative resources,” said U.S. Attorney Zachary A. Myers. “Repeat violent offenders face lengthy terms in federal prison because we know they pose a higher risk to the community. I commend the FBI and IMPD, and our federal prosecutor, for their work to quickly arrest the defendant and hold him accountable.”
“Our communities are put at serious risk when felons illegally arm themselves and endanger others in the process,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI and our law enforcement partners will continue our efforts to hold those accountable who choose to violate federal law.”
The FBI and IMPD investigated this case. The sentence was imposed by Chief U.S. District Court Judge Tanya Walton Pratt. Chief Judge Pratt also ordered that Coleman be supervised by the U.S. Probation Office for five years following his release from federal prison and pay $200 in restitution.
U.S. Attorney Myers thanked Assistant United States Attorney Jeremy C. Fugate, who prosecuted this 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.
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Convicted Felon in Brandon Road Rage Shooting Sentenced to Eight Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced James Eugene Smith (44, Wimauma) to eight years in federal prison for being a felon in possession of a firearm and ammunition. The court also ordered Smith to forfeit the firearm and ammunition. Smith entered a guilty plea on December 18, 2023.
According to court documents, in the early morning hours of January 14, 2023, Smith was driving west on Bloomingdale Avenue in Brandon, Florida. Smith believed that a driver in a black sedan was brake checking (applying brakes and causing the following vehicle to slow down) him, while a separate driver prevented Smith from passing. Smith eventually passed both cars using the bi-directional center lane before brake checking the black sedan in return. The driver of the black sedan eventually drove around Smith. Smith and the driver of the black sedan then exchanged gunfire.
Smith, in an alleged attempt to see the tag of the black sedan, made a U-turn. After making the U-turn, Smith spotted a gray sedan that he thought was the black sedan. Smith opened fire, endangering the lives of the two victims – the driver and a passenger in the front seat. The gray sedan then turned into a gas station. Smith followed the vehicle into the gas station, again firing at it. Neither victim was shot. At the time of the incident, Smith had multiple prior felony convictions. As a convicted felon Smith is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael R. Kenneth. The forfeiture is being handled by Assistant United States Attorney James A. Muench.
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.
Collierville Commodity Trader Sentenced to 51 Months for $2,000,000 Investment Fraud SchemeRead the Press Release
Memphis, TN – A federal judge in Memphis sentenced a Collierville resident to more than four years in prison for running a fraudulent commodities investment scheme which lost investors over $2,000,000. United States Attorney Kevin G. Ritz announced the sentence today.
According to information presented in court, between January and November 2022, Donald Wray Rodgers, 55, lied to more than 50 investors in multiple states about the performance of his unregistered commodities trading fund, Three Brides Trading. Rodgers doctored monthly performance statements to mimic fund growth; in reality, the fund was depreciating due to Rodgers’s bad trades. The fraud victims ran the gamut of income levels, from bank executives to landscapers. Rodgers’s deception was finally uncovered in November 2022 when victims made calls on their investments that Three Bridges Trading Fund did not have the funds to cover.
Rodgers pled guilty to wire fraud on December 18, 2023. On March 21, District Judge Thomas L. Parker sentenced Rodgers to 51 months in federal prison followed by one year of supervised release. There is no parole in the federal system.
The FBI Memphis Field Office investigated this case.
United States Attorney Ritz thanked Assistant United States Attorney William C. Bateman III, who prosecuted this case on behalf of the federal government, as well as law enforcement partners who investigated the case.
Charleston Man Sentenced to 9 Years in Federal Prison for Weapon and Drug ViolationsRead the Press Release
CHARLESTON, S.C. — Joshua Nathaniel Strader, 41, of Charleston, was sentenced to nine years in federal prison after pleading guilty to possession of a firearm by a felon and possession with intent to distribute controlled substances.
Evidence presented to the court showed that Strader was released from federal prison for a firearm and controlled substances violation in November 2019. Five months later, on April 25, 2020, officers with the North Charleston Police Department attempted to stop Strader’s vehicle based on a stolen vehicle investigation. Strader led police on a dangerous and high-speed chase through residential areas, crashed into a civilian vehicle, and ultimately lost control and ended up in a ditch. Strader ran from the vehicle, but officers quickly caught and arrested him. Officers searched Strader and found a .9mm pistol, 76.9 grams of crack cocaine, and 13 grams of powder cocaine in his pockets. Strader was on federal supervision at the time of this arrest. Strader has multiple felony convictions on his record prohibiting him from possessing a firearm. This was his second conviction for possessing a firearm as a felon.
United States District Judge David C. Norton sentenced Strader to 71 months imprisonment to be followed by four years of court ordered supervision for the April 2020 incident, and 36 months imprisonment for the federal supervised release violation. These sentences will run consecutively resulting in a total of 107 months imprisonment.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the North Charleston Police Department. Assistant U.S. Attorney Chris Lietzow is prosecuting the case.
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Career Offender Pleads Guilty to Firearm and Drug OffensesRead the Press Release
BOSTON – A Lowell man has pleaded guilty in federal court in Boston to firearms and drug offenses.
Ricardo Colon, 34, pleaded guilty on March 20, 2024 to one count of possession with intent to distribute fentanyl and cocaine and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for June 10, 2024.
On March 21, 2022, Colon was found in possession of cocaine and fentanyl intended for distribution as well as firearms and ammunition: a .22 caliber revolver, two 9 mm pistols, multiple gun magazines and 140 rounds of ammunition. Colon is prohibited from possessing firearms and ammunition due to multiple previous felony convictions.
The charge of being a felon in possession of firearms and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of distribution of and possession with intent to distribute fentanyl and cocaine provides for a sentence of up to 20 years in prison, up to a lifetime 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; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Greg Hudon Superintendent of the Lowell Police Department made the announcement. Assistant U.S. Attorney David Tobin of the Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Cannon County Man Sentenced to 11 Years in Federal Prison for Committing Three Nashville Bank RobberiesRead the Press Release
NASHVILLE – Clifton Knight, 62, of Woodbury, Tennessee, was sentenced today to 11 years in federal prison, followed by 3 years of supervised release, announced United States Attorney Henry C. Leventis. In August 2023, Knight pled guilty to a three-count Indictment charging him with three bank robberies in Nashville.
On January 4, 2022, Knight robbed a SunTrust Bank located on Hobbs Road in Nashville, where he took over $3,000. On February 4, 2022, he robbed a SunTrust Bank on Old Hickory Boulevard in Hermitage, where he threatened a clerk and stole over $5,000. Finally, on February 8, 2022, he robbed a Fifth Third Bank on Donelson Pike and took over $4,000.
The case was investigated by the Metro Nashville Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph P. Montminy prosecuted the case.
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Cameroonian National Sentenced to 12 Years in Federal Prison for a Business Email Compromise Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Njuh Valentine Fombe, a/k/a “Valentine”, age 37, a Cameroonian citizen, formerly residing in Beltsville, Maryland, today to 12 years in federal prison, followed by three years of supervised release, for conspiracies to commit wire fraud and money laundering, and for aggravated identity theft, in connection with a business email compromise fraud scheme with intended losses of more than $2 million. Based on court documents and evidence presented during Fombe’s sentencing, the Court also found that Fombe engaged in a pandemic-related unemployment fraud scheme while he was a fugitive residing in the United Kingdom.
In addition to prison time, Judge Chasanow ordered Fombe to pay restitution of $325,856.12 and to forfeit $547,310.23.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Troy W. Springer, National Capital Region of the U.S. Department of Labor's Office of Inspector General (DOL-OIG); Chief Robert McCullough of the Baltimore County Police Department; and Chief Russell E. Hamill III of the Laurel Police Department.
According to court documents and evidence presented at today’s sentencing hearing, from at least September 2016 to August 2018, Fombe conspired with others to commit wire fraud by conducting business email compromise (“BEC”) schemes in which Fombe‘s co-conspirators gained unauthorized access to email accounts, personal identifying information, and bank accounts by sending false wiring instructions to the victims’ email accounts. Fombe and his co-conspirators then used the illegally obtained personal information to obtain counterfeit checks in the name and information of the victims’ bank accounts. Victims of the BEC scheme were from California, Tennessee, Michigan, Hawaii and Illinois. Fombe and his co-conspirators also registered fraudulent shell entities to facilitate the scheme, opening and managing bank accounts in the names of the fraudulent shell entities’, as well as their own names and aliases, to direct and receive proceeds of the BEC and check schemes.
After Fombe’s indictment in 2019, Fombe fled the United States on a fraudulently obtained Honduran passport, ultimately residing in the United Kingdom until his arrest there on June 16, 2022 and subsequent extradition to the United States.
United States Attorney Erek L. Barron commended HSI, DOL-OIG, the Baltimore County Police Department and the Laurel Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kelly O. Hayes, Christopher M. Sarma, and Bijon Mostoufi, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Businesswoman Pleads Guilty to Fabricating Millions in Business Income to Obtain Pandemic ReliefRead the Press Release
BOSTON – A Massachusetts businesswoman pleaded guilty today to submitting fraudulent loan applications seeking COVID-19 relief.
Vanessa Nixon, 45, of Framingham, pleaded guilty to bank fraud. U.S. Senior District Court Judge Indira Talwani scheduled sentencing for June 26, 2024. Nixon was charged in February 2024.
Nixon was the owner and operator of multiple businesses in Massachusetts, including Mass Homes Investments LLC, Nixon Homes LTD and Alpha Auto Body, Inc. Between April 2020 and November 2022, Nixon submitted multiple fraudulent loan applications in the names of her various businesses to banks and the U.S. Small Business Administration through the Paycheck Protection Program and the Economic Injury Disaster Loan program that fabricated millions in business income. Nixon also created fake tax documents that she submitted with the loan applications to substantiate the fabricated business income. In total, Nixon received more than $450,000 in loans that were subsequently forgiven by banks and the U.S. Small Business Administration.
The charge of bank fraud provides for a sentence of up to 30 years in prison, up to five years 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; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Boston Man Pleads Guilty to Drug OffensesRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday to his role in a conspiracy to distribute fentanyl, heroin and cocaine that had been delivered in packages to various locations, including the Harvard University campus.
Lennon Carrasco, 38, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl, heroin and cocaine. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 27, 2024. Carrasco was indicted by a federal grand jury in December 2020 along with co-conspirator Dorian Rojas.
In June 2019, law enforcement recovered a FedEx package that had been delivered to a biology lab on the campus of Harvard University. The package was found to contain approximately one kilogram of fentanyl and one kilogram of cocaine. A subsequent investigation revealed that Rojas, who was a former FedEx delivery driver, asked Carrasco, who was working as a FedEx delivery driver, to retrieve the package and deliver it to Rojas. In August 2019, Carrasco was observed retrieving another package and delivering it to Rojas. Shortly after, Rojas was arrested, and the package was found to contain almost one kilogram of heroin. It was ultimately determined that Carrasco had diverted more than 20 FedEx packages for Rojas from November 2017 to June 2019.
In October 2022, Rojas was sentenced to 10 years in prison and five years of supervised release after previously pleading guilty to his role in the conspiracy.
The charge of conspiracy to distribute fentanyl, heroin, and cocaine provides for a sentence of up to 20 years in prison, at least three years and up to life 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; Harvard University Police Chief Victor Clay; Christine Elow, Commissioner of the Cambridge Police Department; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England made the announcement. Assistant U.S. Attorney J. Mackenzie Duane of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Bellevue, Nebraska Man Sentenced to 24 Months in Federal Prison for Child Pornography ChargesRead the Press Release
COUNCIL BLUFFS, Iowa – A Bellevue, Nebraska man was sentenced March 19, 2024, to 24 months in prison for Possession of Child Pornography.
According to public court documents, Ernest Ray Roberts Jr., 53, pled guilty to a one-count Indictment charging him with Possession of Child Pornography. In August 2021, an employee with Prairie Flower Casino discovered a Samsung cellular phone on the floor of the casino. While attempting to identify the owner of the cellular phone, child sexual abuse material was discovered to have been saved from the internet to the cellular telephone. The owner of the cellular phone was determined to be Roberts.
After completing his term of imprisonment, Roberts is required to serve seven years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by Carter Lake Police Department and Pottawattamie County Sheriff’s Office.
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 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 https://www.justice.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
Bayamón Man Arrested for Bank FraudRead the Press Release
SAN JUAN, Puerto Rico – A Bayamón man was arrested on March 19, 2024, on criminal charges related to various schemes involving bank fraud, aggravated identity theft, money laundering, and wire fraud.
According to court documents, from July 2021 until September 2021, Manuel Burgos-Ortiz, 28, knowingly executed and attempted to execute a scheme and artifice to defraud a federally insured financial institution, and to obtain moneys, funds, credits, and property owned by and under the custody and control of said institution by means of materially false and fraudulent pretenses, representations, and promises. The defendant conducted and attempted to conduct more than 70 fraudulent refund transactions for more than $5,000,000 using two debit cards and a Point of Sale (POS) system.
The defendant was able to apply for and obtain a POS system by means of materially false and fraudulent pretenses, representations and promises, and by using, without lawful authority, a means of identification of another person. Shortly after acquiring the POS system, the defendant started to conduct fraudulent refund transactions to two debit cards associated with Global Marketing PR LLC’s bank account, a company that he owned and controlled. The fraudulent refund transactions created a temporary false balance of funds in Global Marketing PR LLC’s bank account. By taking advantage of the transaction validation process the defendant was able to gain access to funds he was not entitled to and spend funds that did not belong to him. Throughout the scheme the defendant managed to use funds originated by the fraudulent POS refund transactions, and temporarily available in his account, to conduct numerous purchases, cash withdrawals and ATH Móvil transfers, resulting in an overdraft of more than $270,000 in Global Marketing PR LLC’s bank account.
The defendant engaged in monetary transactions in criminally derived property of a value greater than $10,000.00, by conducting transactions to purchase a new vehicle with funds that originated from fraudulent refund transactions, which the defendant was able to use by taking advantage of the transaction validation process. On July 23, 2021, two fraudulent refund transactions totaling more than $140,000 were conducted and approved using the POS system acquired by the defendant and a debit card associated with Global Marketing PR LLC’s bank account. That same morning, the defendant went in person to purchase a manager’s check for $74,036.25. That same day, the defendant used the manager’s check to purchase a new 2021 Black Dodge Rebel 1500.
From November 2023 until February of 2024, the defendant devised a scheme to defraud multiple small businesses and their owners, and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises. As part of the scheme to defraud the defendant deceitfully identified himself as an employee of a transaction processing company that provides merchant acquiring, payment services and business process management services, and by means of false and fraudulent pretenses, representations and promises, was able to gain access to multiple POS systems of small business to perform fraudulent refund transactions using debit cards associated with accounts he owned or had access to.
“The defendant falsely represented himself as a legitimate business owner and employee of a company and stole money in many different ways,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “I commend the Secret Service agents and law enforcement partners who uncovered the complex web of financial transactions that led to the defendant’s arrest.”
If convicted, Burgos-Ortiz faces the following penalties: up to 30 years in prison for bank fraud; a mandatory consecutive sentence of at least two years for the aggravated identity theft count; up to ten years for money laundering; and up to 20 years in prison for wire fraud or up to 30 years if the wire fraud violation affects a financial institution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Secret Service is investigating the case with the collaboration of the Puerto Rico Police Bureau.
Assistant U.S. Attorney Manuel Muñiz-Lorenzi from the Asset Recovery and Money Laundering Division is prosecuting the case.
Tips and information assist the Secret Service and its federal, state, and local law enforcement partners. If you believe to be a victim of any of the fraudulent schemes describe above or if you have any information about this defendant, contact the Secret Service San Juan Resident Office at 787-277-1515.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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24-261_criminal_complaint_bank_wire_fraud_3-22-24.pdfBay St. Louis Woman Sentenced to Nearly Five Years in Prison for Conspiracy to Possess with Intent to Distribute FentanylRead the Press Release
Gulfport, MS – A Bay St. Louis woman was sentenced to 57 months in federal prison for conspiracy to possess with intent to distribute 50 pills containing fentanyl.
Emma Kate Stoute, 19, was sentenced in U.S. District Court in Gulfport.
According to court documents, on August 29, 2023, the Hancock County Sheriff’s Office and the Drug Enforcement Administration followed up on a written complaint alleging drug trafficking at the Motel 6 in Bay St. Louis, Mississippi. Agents surveilled the motel and narrowed down the suspected parties and rooms. Agents observed a red Toyota Camry arrive at the hotel to pick up two of the individuals suspected of selling drugs. Agents followed the vehicle across state lines and observed the occupants of the vehicle participate in what appeared to be a drug transaction in Louisiana. After the transaction, agents followed the Camry back into Mississippi and conducted a traffic stop. Stoute was one of the occupants of the vehicle and was in possession of 50 pills containing fentanyl. A subsequent search of Stoute’s cell phone confirmed that she was trafficking fentanyl pills.
According to the U.S. Drug Enforcement Administration, fentanyl is approximately 100 times more potent than morphine and 50 times more potent than heroin. The DEA reports that two milligrams of fentanyl can be lethal, and one kilogram of fentanyl has the potential to kill 500,000 people. More facts on fentanyl can be found at https://www.dea.gov/resources/facts-about-fentanyl and https://www.dea.gov/resources/facts-about-fentanyl.
On November 27, 2023, Stoute pled guilty to one count of conspiracy to possess with intent to distribute fentanyl.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Steven L. Hofer of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and the Hancock County Sheriff’s Office.
Assistant U.S. Attorney Erica Rose prosecuted the case.