Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
1 May 2024
Man Convicted of Sex Trafficking A Child, Other CrimesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal jury convicted Terrence Clay, age 39, of Kent County, on all charges: (1) sex trafficking of a child; (2) sexual exploitation of a child; and (3) distribution of child pornography. Clay is scheduled to be sentenced on September 17, 2024.
“Treating his victim like nothing more than property, Terrence Clay repeatedly ordered a minor to sell herself for sex,” said U.S. Attorney Mark Totten. “Today’s guilty verdict on all counts secures a measure of justice for the victim and the entire community who is harmed by these heinous crimes. Working with our law enforcement partners, social service providers, and others we will continue our efforts to end the scourge of human trafficking.”
Evidence introduced at trial showed that Clay met the minor victim at a park in the City of Grand Rapids in early October 2022. He had sex multiple times with the victim and ordered her to have sex with other men for money, at one point directing her to “make a sign” and “panhandle,” offering specific sex acts at set prices. After securing nude images of the minor victim, Clay advertised her online.
Police found the minor victim in a library, and she was taken to a foster home in the Upper Peninsula, while law enforcement began its investigation. Meanwhile, Clay located the minor victim and picked her up at her foster home early on the morning of November 12, 2022, without the knowledge of the foster family. Shortly after crossing south of the Mackinac Bridge, law enforcement pulled over the vehicle and found the minor victim in the car with the defendant.
“The conviction of Terrence Clay is a testament to the exceptional investigative work carried out by our WEBCHEX task force in partnership with law enforcement agencies to combat child trafficking,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “We are committed to doing everything in our power to protect our children from exploitation and will continue to work tirelessly towards this goal.”
“Our Human Trafficking Task Force continues to make progress in prosecutions and building relationships with area victim service providers to further enhance Kent County’s response to sex and labor trafficking,” said Kent County Sheriff Michelle LaJoye-Young. “It is not lost on us the impact these horrible crimes have on victims and our overall community.”
The case was investigated by the Kent County Sheriff’s Office, the FBI, Kentwood Police Department, Forsythe Police Department, Cheboygan Sheriff’s Office, Tuscarora Township Police Department, the Michigan State Police and prosecuted by Assistant United States Attorney Constance Turnbull.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office for the Western District of Michigan; county prosecutor’s offices; HSI; Michigan State Police’s Internet Crimes Against Children task force; the West Michigan Based Child Exploitation Task Force (WEBCHEX); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Anyone with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, please visit: https://www.justice.gov/usao-wdmi/project-safe-childhood.
###
Maida Pharmacy, Inc. Agrees to Pay $25,000 to Resolve Allegations of Inadequate RecordkeepingRead the Press Release
BOSTON – The U.S. Attorney’s Office has reached a $25,000 settlement with the Arlington-based retail and compounding pharmacy Maida Pharmacy, Inc. (Maida) to resolve allegations that it failed to maintain adequate records of controlled substances and improperly disposed of controlled substances.
The Controlled Substances Act (the Act) regulates the manufacturing, purchasing, distribution and maintenance of certain controlled substances. Pursuant to the Act, Maida was required to keep records and follow security protocols for its controlled substances.
As part of the settlement, Maida admitted that during an inspection, the Drug Enforcement Administration found that Maida did not have in place proper security protocols or maintain appropriate records for controlled substances. Maida also admitted that it had not conducted its mandatory inventory accountability audit and failed to maintain an appropriate security system for its controlled substances. Additionally, Maida admitted that, on several occasions, its employees disposed of Ketamine by placing it in the curbside trash, rather than properly destroying it in a manner consistent with the Act.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement today. Assistant U.S. Attorney Julien M. Mundele of the Affirmative Civil Enforcement Unit handled the case.
Magnolia Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Magnolia man pled guilty to possession of a firearm by a convicted felon.
According to court documents, Edward Dewayne Cockerham, 35, of Magnolia, Mississippi was found in possession of a firearm by Mississippi Bureau of Narcotics agents and a Pike County Sheriff’s deputy during a traffic stop. Cockerham had a prior felony conviction for failing to support minor children and was on supervised probation at the time he possessed the firearm.
Cockerham was indicted by a federal grand jury for possessing the firearm as a convicted felon. He is scheduled to be sentenced on August 1, 2024, and faces a maximum penalty of 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The Mississippi Bureau of Narcotics, Pike County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Bert Carraway prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Long Island Woman Arrested for Selling Misbranded and Adulterated Weight Loss Drugs, Including Ozempic, on TikTokRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Fernando P. McMillan, the Special Agent in Charge of the New York Field Office of the Office of Criminal Investigations of the U.S. Food and Drug Administration (“FDA”), announced the unsealing of a criminal Complaint in Manhattan federal court charging ISIS NAVARRO REYES, a/k/a “Beraly Navarro,” with receipt of misbranded drugs in interstate commerce and subsequent delivery thereof, dispensing prescription drugs without a prescription, conspiracy to introduce and deliver for introduction misbranded drugs in interstate commerce, and smuggling. As alleged in the Complaint, from about November 2022 through about January 2024, REYES marketed, advertised, and sold various misbranded weight loss drugs that require a prescription, including Ozempic, Mesofrance, and Axcion, to followers on social media. REYES, who is not licensed by law to prescribe or administer prescription medication, obtained the weight loss drugs that she held for sale from Central and South America. None of the weight loss drugs that REYES sold were approved for sale or dispensing in the United States by the FDA. REYES was arrested this morning and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Barbara Moses.
U.S. Attorney Damian Williams said: “As alleged, Isis Navarro Reyes used her social media following to sell weight loss drugs unapproved for distribution in the United States. Reyes’s alleged unlawful dispensing of these drugs caused significant, life-threatening injuries to some victims and put all of her victims in harm’s way. Recently, public interest in semaglutide and weight loss drugs has skyrocketed, and criminals have sought to take advantage of this interest for their ends. With this, the first misbranding and adulteration charges brought pertaining to Ozempic, Reyes will be held accountable for her conduct, and criminals should think twice before trying to sell weight loss drugs without a license to do so. This case makes clear that extreme caution and physician consultation should always be taken when purchasing medications, especially on social media.”
FDA Office of Criminal Investigations Special Agent in Charge Fernando P. McMillan said: “Selling misbranded prescription drugs, particularly injectable products that should be sterile, in the U.S. marketplace puts all consumers’ health at risk. We will continue to pursue and bring to justice those who jeopardize the public’s health by selling misbranded drugs.”
As alleged in the Complaint:[1]
From about November 2022 through about November 2023, ISIS NAVARRO REYES, using TikTok, posted dozens of videos about weight loss drugs including, but not limited to, Ozempic, Axcion, and Mesotherapy.
In her videos, REYES showcases the weight loss drugs, instructs viewers how frequently they should be used, describes how they should be taken or injected, and claims to describe her personal experiences — for example, side effects and effectiveness in causing weight loss — in detail. In several of these videos, REYES tells viewers that they can contact her via an encrypted messaging application on her cellphone (the “Cellphone”) if they would like to order the weight loss drugs that she is selling.
On about October 11, 2023, REYES posted a video pertaining to Ozempic. In this video, REYES demonstrates how to inject oneself with the medication and shares her experience using the drug. Toward the end of the video, REYES instructs viewers to contact her on the Cellphone if they are interested in having her obtain Ozempic for them. A screenshot from this TikTok post is below:
In about December 2023, a law enforcement officer acting in an undercover capacity (the “UC”) began messaging REYES on the Cellphone. From about December 2023 through about January 2024, the UC and REYES exchanged several messages concerning REYES’s supply of Ozempic and the UC’s interest in purchasing Ozempic from REYES. On about January 7, 2024, pursuant to instructions from REYES, the UC sent $375 to a Zelle account in the name of “Isis Reyes Navarro.” REYES did not ask the UC to provide a prescription, and the UC did not provide one. On about January 9, 2024, REYES dropped off a package intended for the UC at a post office located in or around Shirley, New York.
On about January 12, 2024, law enforcement received a package addressed to the UC from REYES (the “UC Parcel”) in Manhattan. The UC Parcel contained a box containing what purported to be Ozempic.[2] Photos of packaging containing the purported Ozempic that REYES mailed the UC are below:
All of the labeling accompanying the Ozempic in the UC Parcel was in Spanish, in violation of FDA regulations.
In about November 2022, a woman who had viewed content posted to REYES’s TikTok account (“Victim-1”) called the Cellphone for the purpose of ordering weight loss drugs. The individual who answered Victim‑1’s call identified herself as “Isis Navarro Reyes.” In about February 2023, Victim-1 purchased 30 injections of Mesofrance, an injectable weight loss drug, from REYES. REYES mailed the Mesofrance to Victim-1’s residence in White Plains, New York. REYES did not ask Victim-1 to provide a prescription, and Victim-1 did not provide one.
Between about February 2023 and about June 2023, Victim-1 self-administered 28 injections. In an audio message that she recorded and transmitted, REYES provided Victim-1 with instructions on how to administer the drug. REYES told Victim-1, among other things, to inject herself every three days. All of the labeling of the vials that contained the Mesofrance that Victim‑1 purchased from REYES were in a language other than English, in violation of FDA regulations.
On about July 13, 2023, Victim-1 began developing lesions from administering the Mesofrance. Victim-1 sent messages to REYES about her injuries and sent photos. In about October 2023, Victim-1’s physician diagnosed her with a mycobacterium abscessus infection, which is frequently caused by the contamination of medications, medical products, and medical devices with the mycobacterium abscessus bacterium. In about November 2023, the New York Department of Health tested one of the vials of Mesofrance that Victim-1 purchased from REYES. The substance tested positive for mycobacterium abscessus, a species of rapidly growing, multidrug-resistant, nontuberculous mycobacteria.
* * *
REYES, 36, of Shirley, New York, is charged with one count of smuggling, which carries a maximum sentence of 20 years in prison; one count of receipt of misbranded drugs in interstate commerce and subsequent delivery thereof, which carries a maximum sentence of one year in prison; three counts of dispensing prescription drugs without prescriptions, which each carry a maximum sentence of one year in prison; and one count of conspiracy to introduce and deliver for introduction a misbranded drug in interstate commerce, which carries a maximum sentence of one year in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FDA Office of Criminal Investigations, the U.S. Postal Inspection Service, the New York City Police Department, the Customs and Border Protection Task Force Officers of the Drug Enforcement Administration, and the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Brandon C. Thompson is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.
[2] To date, there is no evidence that the Ozempic that REYES sold the UC is not genuine.
Lexington Man Sentenced for Trafficking Fentanyl and Illegal Possession of FirearmsRead the Press Release
FRANKFORT, Ky. – A Lexington man, Ivan J. Satterfield, 30, was sentenced on Wednesday, by U.S. District Judge Gregory Van Tatenhove, to 72 months in prison, for five counts of possession of firearms by a prohibited person, two counts of distribution of fentanyl, and one count of distribution of fluorofentanyl.
According to his plea agreement, between April 14 and October 31, 2022, law enforcement utilized confidential informants to make multiple firearm and controlled substance purchases from Satterfield, which included purchases of fentanyl, cocaine, and fluorofentanyl, as well as the purchase of six firearms.
Satterfield knew he had prior felony convictions, for receiving stolen property under $10,000 from Fayette Circuit Court in July 2016 and for theft by unlawful taking under $10,000 from Nelson Circuit Court in November 2013, and was prohibited from possessing a firearm.
Under federal law, Satterfield must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Office; and Phillip J. Burnett, Commissioner of the Kentucky State Police (KSP), jointly announced the sentencing.
The investigation was conducted by the ATF and KSP. Assistant U.S. Attorney Paco Villalobos is prosecuting the case on behalf of the United States.
— END —
Las Vegas Woman Sentenced to Prison for $1 Million Medicaid Fraud SchemeRead the Press Release
LAS VEGAS – A Las Vegas woman, Henrietta Binford, 54, was sentenced Monday to 10 months in prison and ordered to pay $1,250,223.39 in restitution for defrauding the State of Nevada Medicaid healthcare benefit program by falsely billing for services not provided. United States District Judge Jennifer A. Dorsey presided over the sentencing hearing. Binford had previously plead guilty in November 2023 to one count of Health Care Fraud.
According to court documents and admissions Binford made in court, from January 2017 to August 2017, she devised and executed a scheme to defraud the State of Nevada Medicaid (“Nevada Medicaid”). In connection with Binford’s application to enroll her company Shepherd’s Heart Services, as a medical provider, she did not disclose her criminal history, including prior misdemeanor and felony convictions. As a result of her false statements on the application, Shepherd’s Heart Services was enrolled in Nevada Medicaid. As part of her scheme, Binford submitted false bills to Nevada Medicaid for services, including counseling services and training, not rendered. In total, Nevada Medicaid paid Shepherd’s Heart Services in excess of $1,000,000 for services not provided to patients.
“Through her misrepresentations and fraudulent deeds, the defendant bilked over $1,000,000 from Nevada Medicaid,” said United States Attorney Jason M. Frierson for the District of Nevada. “Due to the diligent investigative and prosecutorial work by our partners and Assistant U.S. Attorneys, the defendant was brought to justice and will be held accountable for her crimes, along with others who seek to exploit health care programs for their own financial gain.”
“Nevada Medicaid is a critical health insurance program for eligible members of our community, providing access to medical care that would otherwise be unobtainable,” said Carissa Messick, Acting Special Agent in Charge, IRS Criminal Investigation, Phoenix Field Office. “IRS Criminal Investigation is dedicated to investigating anyone attempting to defraud this program and those who rely on it.”
“My office will always defend against efforts to defraud Nevada Medicaid. Attempts to game the system or con Nevada Medicaid for services are particularly despicable as this program allows members of our community to access health care that would otherwise be inaccessible,” said Nevada Attorney General Aaron D. Ford.
IRS Criminal Investigation and the Nevada Attorney General’s Office, Medicaid Fraud Control Unit (MFCU), investigated the case. Assistant United States Attorneys Justin Washburne and Steven W. Myhre prosecuted the case.
###
Kentucky Man Sentenced to 15 Years in Prison for Advertising Child PornographyRead the Press Release
BOSTON – A Kentucky man was sentenced today in federal court in Boston for advertising child sexual abuse material (CSAM) on the dark web.
Scott Allison, 59, of Glasgow, Ky., was sentenced by U.S. District Court Judge Indira Talwani to 15 years in prison followed by five years of supervised release. Allison was also ordered to pay restitution of $100,000. In September of 2023, Allison pleaded guilty to one count of advertisement of child pornography. Allison was initially charged by criminal complaint in November 2021 in the Western District of Kentucky and subsequently indicted by a federal grand jury in Boston in December 2021.
“Mr. Allison deserves to be behind bars for a very long time. He is a reprehensible cog in the market built around the shameful and devastating abuse of innocent children. There is nothing worse. He regularly advertised the sexual abuse and exploitation of kids thinking he was wrapped in the cloak of anonymity in his online world. He also possessed literally hundreds of thousands of images exploiting children on his computer. Child pornography is not a victimless crime – it is an all too active marketplace that thrives on real abuse inflicted upon real children. Each time a sexually explicit image or video of a child is viewed, accessed, possessed, received, sent or produced, that child is being re-victimized. Today’s sentence should make that message clear. Our office and our federal, state and local partners will never cease in our efforts to relentlessly pursue those who engage in this market,” said Acting United States Attorney Joshua S. Levy.
“Scott Allison is a predator who used the exploitation of children as currency to further his horrific enterprise. He and others used the perceived anonymity of the dark web as a safe haven from the public and from law enforcement. As Allison and many others have and will find out, the dark web is no match against the will of law enforcement to protect our children,” said Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England.
In April 2021, Allison was identified advertising and posting links to CSAM, including images of boys as young as approximately two years old, via a website on the dark web for which he served as a moderator. Allison used at least two different usernames on various websites on the dark web. On one website, Allison was responsible for moderation of the website, this included greeting and socializing with guests, reviewing messages and images and ensuring the safety and success of the website. During a search of his home in November 2021, an external hard drive plugged into a computer in his bedroom was found to contain approximately 130,000 images and videos of CSAM. Allison also had the content or text of approximately 108,000 posts to child pornography websites saved on his computer. Additionally, a box containing boy’s underwear, diapers and condoms as well as a silicone mold of a boy’s buttocks with partial genitalia were also found during the search.
Acting U.S. Attorney Levy; HSI SAC Krol; Michael A. Bennett, United States Attorney for the Western District of Kentucky; and Rana Saoud, Special Agent in Charge of Homeland Security Investigations in Nashville made the announcement today. Assistant U.S. Attorneys J. Mackenzie Duane and Luke A. Goldworm of the Criminal Division are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Justice Department, Federal Trade Commission, and Department of Health and Human Services Extend Comment Period on Public Inquiry into Impact of Corporate Ownership Trend in Health CareRead the Press Release
The Justice Department’s Antitrust Division, Federal Trade Commission (FTC) and Department of Health and Human Services are extending the comment period for the Request for Information on Consolidation in Health Care Markets (RFI) by 30 days. The new deadline is June 5.
In March, the agencies issued the RFI to understand how health care mergers, acquisitions and other transactions may decrease the number of firms competing to provide health care products or services. Increased firm consolidation may threaten patients’ health, workers’ safety, quality of care and affordability.
The RFI requests public comment on transactions by health systems, private payers, private equity funds and other alternative asset managers. The agencies want to know more about these types of transactions in the health care industry, which involve direct or indirect providers, services or products. The RFI also seeks information about health care transactions with dollar amounts that are not large enough to require submission to the Justice Department or FTC for review.
The public can submit comments at Regulations.gov. Once submitted, comments will be posted to Regulations.gov. The comment period was originally set to end on May 6.
Justice Department Files Statement of Interest Supporting Private Citizens’ Right to Sue Under Voting Rights Act of 1965Read the Press Release
The Justice Department today announced that it has filed a statement of interest in the U.S. District Court for the Middle District of Pennsylvania supporting the right of private plaintiffs to bring a lawsuit to enforce Section 2 of the Voting Rights Act. This filing is one of many recent briefs by the Justice Department supporting the longstanding principle that private plaintiffs are authorized to bring lawsuits to vindicate important rights protected by the Voting Rights Act.
“The right to vote is the foundation of our democracy, and it is the right on which all other rights depend,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Since the enactment of the landmark Voting Rights Act in 1965 to protect this precious right, private parties have enforced the law in courts across this country, enabling countless Americans to vote free from unlawful discrimination. The Justice Department will continue vigorously enforcing the Voting Rights Act and defending the right of private citizens and organizations to do the same.”
“The Voting Rights Act gives private citizens a voice to stand up to unlawful voting discrimination by their government,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “My office will continue to enforce the civil rights statutes like the Voting Rights Act, and proudly partners with the Civil Rights Division in protecting a private citizens’ right to enforce that Act.”
The department filed its statement of interest in Aquino and Lopez v. Hazleton Area School District, a case in which plaintiffs allege the at-large method of electing the nine-member school board of directors unlawfully dilutes the ability of Hispanic voters to elect candidates of their choice. The school district seeks to dismiss the case, arguing that private parties like the plaintiffs are not able to file lawsuits under Section 2 of the Voting Rights Act. The department’s statement of interest argues that private parties may enforce the Voting Rights Act directly, as well as through another civil rights law on which plaintiffs often rely.
The Justice Department has filed 18 statements of interest and amicus briefs in federal district courts and courts of appeals since January 2021 supporting the right of private parties to file suits under the Voting Rights Act and the Civil Rights Act to protect the right to vote. In all, since January 2021, the Justice Department has filed 32 statements of interest in courts across the country to protect the right to vote.
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Individuals may report possible violations of the federal voting rights laws through the Civil Rights Division’s website at civilrights.justice.gov or by telephone toll-free at 800-253-3931.
Jury finds Cincinnati man guilty of sex trafficking, exploiting 2 teensRead the Press Release
CINCINNATI – A federal jury has convicted Kelly Richards, 43, of Cincinnati, with sex trafficking minors, sexually exploiting children and illegally possessing a firearm as a previously convicted felon.
Richards is also known as “Scorpio” and has a tattoo of a scorpion on the left side of his face. The jury found him guilty on all counts following a six-day trial before U.S. District Judge Jeffery P. Hopkins.
According to court documents and trial testimony, investigators were alerted in March 2023 that two juveniles had been screened as potential sex trafficking victims.
Richards picked up two minor victims who had fled a group home in Dayton and drove them to an apartment complex in Cincinnati. At the apartment, Richards provided the minors with cocaine before sexually assaulting them.
Richards also enticed the females into having sex with other men for money that was paid to Richards. The defendant created prostitution advertisements online with explicit pictures of the minor victims and used physical violence against them. Court documents detail that one victim was prostituted up to four times per day in hotels and homes.
Sexually exploiting children is a federal crime punishable by a range of 15 to 30 years in prison. Sex trafficking minors carries a potential penalty of at least 10 years and up to life in prison. Illegal possession of a firearm in this case is punishable by up to 15 years in prison. Sentencing of the defendant will be determined by the Court at a future hearing.
Federal agents arrested Richards on May 16, 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and other members of the FBI’s Anti-Trafficking Task Force announced the verdict returned the evening of April 30. Assistant United States Attorneys Kyle J. Healey and Megan Painter Gaffney are representing the United States in this case.
# # #
Jones County Man Sentenced to Two Years in Prison for Assault on the Choctaw Indian ReservationRead the Press Release
Jackson, Miss. – A Jones County man was sentenced to 24 months in federal prison for assault with intent to commit a kidnapping on the Choctaw Indian Reservation.
According to court documents, Tyreese Khalia Kejuan Smith, 23, assaulted an adult tribal female in the Bogue Homa Community of the Mississippi Band of Choctaw Indians.
Smith was indicted by a federal grand jury in September 2023 and pled guilty to the assault on January 30, 2024.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The case was investigated by the Federal Bureau of Investigation’s Safe Trails Task Force which is comprised of officers from the Federal Bureau of Investigation, Choctaw Police Department, Jones County Sheriff’s Department, and various state and local law enforcement agencies.
Assistant U.S. Attorney Kevin J. Payne and Special Assistant U.S. Attorney Brian K. Burns prosecuted the case.
Jefferson County Contractor Admits Aiding Financial Exploitation of Elderly VictimRead the Press Release
ST. LOUIS – A man from Jefferson County, Missouri on Wednesday admitted helping to defraud an elderly St. Louis woman out of more than $500,000.
Austin James, 27, of Hillsboro, pleaded guilty in U.S. District Court to one felony count of identity theft. He admitted knowingly possessing or using, without lawful authority, a means of identification of another person to commit bank fraud and the financial exploitation of the elderly.
James admitted aiding Gino Rives in exploiting the 80-year-old victim, who had hired Rives sometime before Jan. 17, 2021 to repair her roof for $7,500. Rives falsely claimed to be a licensed contractor and the victim hired him to renovate the interior of her home. Rives told the woman to write checks to himself, James and others that totaled more than $550,000 for renovations on the one-bedroom, one-bath, 1,100 square-foot home that was worth no more than $135,000 in 2021. James received eight checks totaling $94,606 between January 2021 and March 2023 for purportedly performing work on the victims, kitchen, bedroom, bathroom, basement and foundation. But he did not do the work for which he had been paid.
Due to the volume of checks being written on the victim's account and being cashed by Rives, James and others, her bank contacted the St. Louis City Building Inspector’s Office, which determined that any work done on the house was worth no more than $50,000, if it included and plumbing or electrical work.
Rives, 36, of Edmundson, in St. Louis County, pleaded guilty last year and admitted defrauding two elderly victims. He and his mother, Zella Rives, pleaded guilty to separate charges this year and admitted falsely claiming that Rives was too disabled to work. They are scheduled to be sentenced next month.
James is scheduled to be sentenced on August 14. The charge carries a penalty of up to 15 years in prison, a fine of up to $250,000, or both prison and a fine.
The Social Security Administration Office of Inspector General and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Anyone with concerns about suspected abuse or neglect of the elderly or disabled should contact Missouri’s Adult Abuse and Neglect Hotline at 800-392-0210.
Indianola Man Sentenced for Armed Robbery of Backyard BurgersRead the Press Release
Greenville, MS – An Indianola man was sentenced today to more than six years in prison for his role in the armed robbery of a Backyard Burgers restaurant in Cleveland, Mississippi.
According to court documents, Leequinn McCloud, 25, previously pled guilty in the U.S. District Court for the Northern District of Mississippi to one count of Hobbs Act robbery pertaining to the armed robbery of the Backyard Burgers restaurant in Cleveland. McCloud was sentenced today by U.S. District Judge Debra M. Brown to 77 months in prison followed by 3 years of supervised release. Following sentencing, McCloud was remanded to the custody of the U.S. Marshals.
McCloud’s co-defendant, Ladarius Snipes was previously sentenced in the U.S. District Court for the District of Minnesota, where he was facing additional charges. Snipes was sentenced to 120 months in prison for his role in the armed robbery of the Backyard Burgers, in addition to 35 months in prison for his Minnesota charges.
“The U.S. Attorney’s Office will do everything in its power to ensure that those who choose to commit violent gun crimes are prosecuted to the fullest extent of the law,” said U.S. Attorney Clay Joyner. “We thank ATF and the Cleveland, Mississippi Police Department for their work on this case and will continue to work alongside our federal, state and local partners to help keep our communities and citizens safer by aggressively investigating and prosecuting violent criminals.”
“ATF and the U.S. Attorney’s Office are dedicated to pursuing and combating those career criminals whose violent criminal activities threaten and severely detract from the welfare of our communities,” said ATF New Orleans Special Agent in Charge Joshua Jackson. “This is another example of our commitment to work tirelessly to protect our communities and hold accountable those who threaten our safety.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Cleveland Police Department investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Hopewell man sentenced for illegally possessing a firearmRead the Press Release
A Hopewell man was sentenced today to five years and five months in prison for being a felon in possession of a firearm and ammunition.
According to court documents, on Nov. 19, 2022, Hopewell Police officers found Azontay Malik Perry, 27, passed out in the driver seat of a BMW with the engine running in the intersection of Ashland Street and Oaklawn Boulevard. Officers awakened Perry and ordered him out of the vehicle. Perry ignored their commands and drove into the back of a parked police vehicle. Perry attempted to flee at high speed, but crashed into a dumpster at an apartment complex. Perry then fled on foot.
At the scene, officers observed a.40 caliber handgun on the floor of the vehicle. The firearm included an extended magazine with 27 rounds of ammunition. Officers later obtained a search warrant for the vehicle and recovered 18 grams of methamphetamine and 10.84 grams of fentanyl.
In 2016, Perry was convicted of possession of schedule I or II drugs after being caught with narcotics in his vehicle during a traffic stop. Later that year, Perry was convicted again of possession of schedule I or II drugs, as well as possession of a concealed weapon, possession of a firearm while in possession of schedule I or II drugs, and monument damage. In 2023, Perry was convicted of a probation violation related to his multiple 2016 convictions for not turning himself in on outstanding warrants and absconding from supervised probation. In 2019, Perry once again was convicted of possession of schedule I or II drugs, along with driving on a suspended license.
As a previously convicted felon, Perry cannot legally possess a firearm or ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Greg Taylor, Chief of Hopewell Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorney Erik S. Siebert and former Special Assistant U.S. Attorney Devon E. Schulz, an Assistant Attorney General with the Virginia Attorney General’s Office, prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-106.
Honduran National Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Doanin Reyes-Diaz, age 24, of Honduras, was indicted today by a federal grand jury for illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, the indictment alleges that Reyes-Diaz was previously removed from the United States on September 3, 2019, through Brownsville, Texas, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on March 16, 2024, Reyes-Garcia was encountered in Dauphin County, Pennsylvania.
This case was investigated by U.S. Immigration and Customs Enforcement and Removal Operations. Assistant United States Attorney Stephen Dukes is prosecuting the case.
The maximum penalty under federal law for this offense is two years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Hobbs Man Arrested for Illegal Sale of Automatic Weapon Conversion Devices and SilencerRead the Press Release
ALBUQUERQUE – A Hobbs man was arrested for the illegal sale of automatic weapon conversion devices and a silencer after an undercover investigation by the Lea County Drug Task Force.
The criminal complaint alleges that undercover agents from the Lea County Drug Task Force purchased two Glock switches and one silencer from Tevon Wayne Davis Cobbs, 22, in the parking lot of his workplace in Hobbs, New Mexico.
During the transactions, Cobbs admitted to selling switches - devices that convert semi-automatic pistols into fully automatic "machineguns" - for the past 3-4 years. He offered to install the switches for the undercover agents and showed them videos of himself firing weapons with the illegal modifications.
During the transaction, Cobbs also offered to sell the agents a suppressor, stating he did not want to wait the typical 9-month wait time for legal ownership.
This was the second successful controlled purchase from Cobbs, following an initial sale of one switch on February 8, 2024.
Cobbs claimed to have a steady supply of the illegal devices, which he obtained from an unknown source.
The Lea County Drug Task Force is continuing its investigation into Cobbs' illegal firearms trafficking operation. Possession of Glock switches and unregistered suppressors are serious federal crimes that carry lengthy prison sentences.
U.S. Attorney Alexander M.M. Uballez, and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement today.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives is investigating this case with assistance from the Lea County Drug Task Force. Assistant United States Attorney Ry Ellison is prosecuting the case.
One (1) Glock switch with no markings, disassembled into three pieces.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
# # #
Hassan Tucker Facing Federal Money Laundering ChargesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Hassan Tucker, age 43, of Baltimore, Maryland, with money laundering and violation of Bank Secrecy Act transaction reporting requirements. The indictment was returned on April 9, 2024, and unsealed today upon Tucker’s recent arrest.
The defendant made an initial appearance on Monday April 29, 2024, in the U.S. District Court in Baltimore before U.S. Magistrate Judge J. Mark Coulson. Further proceedings will be set at a later date.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Kareem Carter of IRS Criminal Investigation, Baltimore Field Office, and Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Baltimore Field Office.
According to the two-count indictment, on January 27, 2023, Tucker accepted $27,000 in U.S. Currency from an undercover federal agent posing as a drug trafficker in exchange for the purchase of a luxury SUV. Before completing the transaction, the undercover federal agent represented to Tucker that the $27,000 in U.S. Currency was the proceeds of drug trafficking activity. To conceal the transaction and the true owner of the SUV, Tucker agreed to place the SUV in the name of a female associate of the undercover federal agent, and did not report the cash transaction as he knew he was required to do under federal law.
If convicted, Tucker faces a maximum sentence of 20 years in federal prison under Count One and five years in federal prison under Count Two. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended IRS-CI and the DEA for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Steven T. Brantley, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Guatemalan Citizen Indicted for Illegally Reentering the United StatesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Oseas Froilan Gomez-Tebalan, age 29, a Citizen of Guatemala, was indicted today by a federal grand jury for illegally reentering the United States.
According to United States Attorney Gerard M. Karam, the indictment alleges that Gomez-Tebalan was previously removed from the United States on March 18, 2017, through Phoenix, Arizona, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on March 21, 2024, Gomez-Tebalan was encountered in Franklin County, Pennsylvania.
The case was investigated by the United States Immigration and Customs Enforcement and Removal Operations. Assistant United States Attorney K. Wesley Mishoe is prosecuting the case.
The maximum penalty upon conviction for the charged offenses is 20 years imprisonment, three years of supervised release following imprisonment, a fine, and a special assessment. A sentence following a finding of guilt is imposed by a court after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Fugitive Felon Who Possessed Loaded Gun Sentenced to 4 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ELLIOTT OTERO, 34, of Manchester, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 48 months of imprisonment, followed by three years of supervised release, for unlawfully possessing a firearm.
According to court documents and statements made in court, on September 25, 2021, Otero was charged in state court with failing to appear in connection with a probation violation as part of his sentence for a 2018 conviction for criminal possession of a pistol/revolver. On February 25, 2022, employees of a private bail enforcement company encountered Otero outside of a liquor store in Manchester and attempted to apprehend him. During a struggle, a loaded Smith & Wesson .38 caliber pistol fell from his waistband. Manchester Police arrived shortly thereafter and took custody of Otero and the pistol. Subsequent analysis of the firearm revealed that it been stolen from a pickup truck in Wolcott in December 2021.
Otero’s criminal history includes state felony convictions for firearm, robbery, and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Otero has been detained in state custody since his arrest. On February 15, 2023, he pleaded guilty in federal court to unlawful possession of a firearm by a felon.
This matter was investigated by Federal Bureau of Investigation Connecticut Violent Crime Task Force and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Katherine E. Boyles.
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.
Former VA Psychologist Sentenced to Prison for Submitting False Medical Documents, Health Care FraudRead the Press Release
BENTON, Ill. – A district judge sentenced a Herrin woman, formerly employed in southern Illinois as a psychologist with the Department of Veterans Affairs, to 10 months imprisonment after she admitted to submitting false medical documents, obstructing justice and committing Medicare fraud.
Theresa A. Kelly, 57, pleaded guilty in October 2023 to one count of concealing a material fact by trick, scheme or device; three counts of making or using a false writing or document; one count of obstruction of justice and one count of health care fraud. Kelly’s conduct involved a multi-faceted scheme that impacted her employment at the VA, fraudulent billing to Medicare, and the obstruction of a federal civil lawsuit in the Southern District of Illinois.
“As a psychologist for the VA, the defendant was employed to provide important services to veterans, but instead she used her position to submit fraudulent medical documents with the intention of earning otherwise unauthorized leave and reasonable accommodations,” said U.S. Attorney Rachelle Aud Crowe. “Government employees acting to defraud their agencies will be investigated and prosecuted to the fullest extent of the law, and I commend the agencies for their work in bringing this offender to justice.”
Kelly, a licensed clinical psychologist, was employed by the Marion VA Medical Center. According to court documents, between November 2016 and August 2020, Kelly submitted fraudulent medical documentation in the name of real and fake medical providers as part of the approval process for reasonable accommodations and medical leave, including FMLA leave. Kelly admitted to submitting false medical documents with forged signatures of two legitimate medical providers, one of whom is local to the southern Illinois area.
“This sentence sends a clear message that VA employees will be held accountable if involved in fraudulent activities,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this joint investigation.”
In addition to her submission of fraudulent medical documents, Kelly engaged in a scheme to defraud Medicare and obtain payment for psychiatric services that she did not provide to residents of a Southern Illinois nursing home between May 2016 and January 2018. In addition to her full-time job at the VA, Kelly owned a company by the name of TS Onsite Mental Health through which she claimed to provide psychotherapy sessions to patients at Shawnee Christian Nursing Center in Herrin, Illinois. Kelly billed Medicare for more than 400 claims—worth more than $54,000—for services that she did not provide. Kelly billed for at least some of the services on days she was on approved medical leave from the VA. In addition her term of imprisonment, Kelly was ordered to repay $35,795.94 in restitution to the Centers for Medicare & Medicaid Services as repayment for her fraudulent claims.
“HHS-OIG is committed to ensuring that citizens’ tax dollars are protected from fraud and abuse by investigating providers who undermine our federal health care programs and the well-being of patients by submitting fraudulent claims,” said Mario M. Pinto, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to investigate conduct that compromises the integrity of federal health care programs.”
Kelly also admitted to obstructing justice in a civil proceeding in federal court by submitting fraudulent medical documentation to her attorney—the contents of which were used to seek a continuance of the judicial proceeding. In April 2020, Kelly filed a discrimination complaint in U.S. District Court against the Secretary of Veterans Affairs. Rather than proceeding with the case, Kelly submitted a letter impersonating a real physician who had practiced in Anna, IL but had never treated Kelly. Kelly’s lawsuit was ultimately dismissed by the judge.
The investigation was conducted by investigators with the VA-OIG and HHS-OIG. Assistant U.S. Attorney Zoe J. Gross prosecuted the case.
Former Massachusetts State Police Trooper Sentenced to Three Years in Prison for Conspiring to Steal Overtime Funds and Wire FraudRead the Press Release
BOSTON – A former Massachusetts State Police (MSP) Sergeant was sentenced yesterday in connection with an overtime scheme dating back to 2015.
William W. Robertson, 62, of Westborough, was sentenced by U.S. District Court Judge Margaret R. Guzman to three years in prison, to be followed by three years of supervised release. Robertson was also ordered to pay restitution of $142,774 and forfeit $32,180. In December 2023, Robertson was convicted of one count of conspiracy, one count of theft concerning a federal program and four counts of wire fraud.
On April 26, 2024, co-conspirator former MSP Lieutenant Daniel Griffin was sentenced to five years in prison and three years of supervised release. Griffin was also ordered to pay restitution in the amount of $329,163, a fine in the amount of $176,700, as well as a $2,100 special assessment. In December 2023, Griffin was convicted of one count of conspiracy, one count of theft concerning a federal program and four counts of wire fraud.
From 2015 through 2018, Griffin, Robertson and other troopers in the Traffic Programs Section at State Police Headquarters in Framingham, conspired to steal thousands of dollars in federally funded overtime by regularly arriving late to, and leaving early from, overtime shifts funded by grants intended to improve traffic safety.
When the MSP overtime misconduct came to light in 2017 and 2018, Griffin, Robertson and their co-conspirators took steps to avoid detection by shredding and burning records and forms. After an internal inquiry regarding missing forms, Griffin submitted a memo to his superiors that was designed to mislead them by claiming that missing forms were “inadvertently discarded or misplaced” during office moves.
The U.S. Attorney’s Office for the District of Massachusetts; Christopher A. Scharf, Special Agent in Charge, U.S. Department of Transportation Office of Inspector General, Northeast Region; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Dustin Chao, Chief of the Public Corruption Unit and Assistant United States Attorney Adam Deitch of the Public Corruption Unit prosecuted the case.
Former HUD Property Manager Pleads Guilty to EmbezzlementRead the Press Release
PORTLAND, Maine: A Glenburn woman pleaded guilty in U.S. District Court in Portland to embezzling from an organization receiving federal funds and conspiring to alter money orders.
According to court records, Kelly Ballinger, 57, was a former property manager for a Portland apartment complex with residences funded by the Department of Housing and Urban Development (HUD). From about December 2017 to June 2021, Ballinger stole rent payments made by HUD Housing Choice Voucher Program tenants. Ballinger would direct the tenants to pay their rent with a blank postal money order and then would place her name or that of fellow employee Kathleen Conway, 70, on the payee line, adding information such as “groceries” on the memo line to suggest the payments were reimbursements. In some instances, Ballinger would deflate the tenants’ income to as low as $0 so that HUD would pay a larger share of the rent to disguise shortfalls.
Ballinger faces up to ten years imprisonment and a maximum fine of $250,000 on the embezzlement charge and up to five years in prison and a maximum fine of $250,000 on the alteration of a postal money order charge, followed by up to three years of supervised release. The Court may also order Ballinger to pay restitution to HUD.
Kathleen Conway pleaded guilty to embezzlement on August 2, 2023 and is awaiting sentencing.
The U.S. Department of Housing and Urban Development Office of Inspector General and U.S. Postal Inspection Service the investigated the case.
“Ballinger used her position of trust to take advantage of elderly and disabled individuals by preying on their vulnerability for her own self-enrichment,” said Acting Special Agent-in-Charge William Woolard with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG will continue to work with its law enforcement partners to diligently pursue and hold accountable bad actors who willfully misuse Federal assets.”
“The U.S. Postal Inspection Service commends the U.S. Department of Housing and Urban Development for their hard work on this investigation,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “We will continue to conduct investigations and seek prosecution of those individuals who choose to partake in fraud schemes that take advantage of systems that are designed to support those in need.”
###
Former Guatemalan congressman guilty of international drug trafficking violations in the Eastern District of TexasRead the Press Release
PLANO, Texas – A former Guatemalan congressman has pleaded guilty to his role in an international drug trafficking conspiracy, announced U.S. Attorney Damien M. Diggs of the Eastern District of Texas.
Jose Armando Ubico Aguilar, 45, a former senior Republic of Guatemala official, pleaded guilty to an international drug trafficking conspiracy violation before U.S. Magistrate Judge Kimberly Priest Johnson on May 1, 2024. Ubico Aguilar arrived in the United States from Central America earlier this week and was arrested.
According to information presented in court, Ubico Aguilar served as an elected member of the Congress of the Republic of Guatemala from 2016 to 2024. He also served as an elected Deputy and was the President of the National Defense Committee of the Congress of the Republic of Guatemala from 2018 to 2023.
“As a senior leader in the Republic of Guatemala, Ubico Aguilar was entrusted to further the fight against drug traffickers pushing illegal narcotics north to the United States,” said U.S. Attorney Damien M. Diggs. “Even more so, as the President of the National Defense Committee of the Congress of Republic of Guatemala, Ubico Aguilar was responsible, in part, for his own country’s national security. Instead, Ubico Aguilar betrayed his country when he chose to partner with known drug traffickers and other corrupt officials. We are grateful to our foreign law enforcement partners for ensuring Ubico Aguilar, and those like him, will not be allowed to hide behind their positions of power.”
“The arrest of this corrupt official who allegedly brokered and facilitated cocaine shipments into the United States shows the swift justice criminals will meet through DEA Dallas’ efforts to dismantle Transnational Criminal Organizations across the world,” said DEA Special Agent in Charge Eduardo A. Chávez. “We are proud to collaborate with our DEA offices around the world as well as our international counterparts who collectively share the same goal – enforce the rule of law and ensure consequences come to those who profit from illicit drug distribution in our communities.”
On March 3, 2021, a federal grand jury in the Eastern District of Texas indicted Ubico Aguilar charging him with federal drug trafficking violations. During his plea hearing, Ubico Aguilar admitted his role in the conspiracy, including relaying drug-related information and U.S. currency to another Guatemalan official on behalf of an international drug trafficker. These actions resulted in the safe passage of at least 450 kilograms of cocaine through Guatemala for distribution in the United States.
Ubico Aguilar faces from 10 years to life in federal prison at sentencing. The statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
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.
This case is being investigated by the North Texas Organized Crime Drug Enforcement Task Force (“OCDETF”) Strike Force Group Two; the U.S. Drug Enforcement Administration’s Dallas Division; the DEA’s Guatemala City Country Office and the DEA’s San Jose (Costa Rica) Country Office; the FBI’s Dallas Field Office; the Homeland Security Investigation’s Dallas and Guatemala Field Offices; the U.S. Marshals Service’s Dallas Field Office; and Customs and Border Patrol’s San Diego Field Office. The Justice Department’s Office of International Affairs of the Department’s Criminal Division also provided assistance in furthering the prosecution.
This case is being prosecuted by Assistant U.S. Attorney Christopher Eason.
###
Former Greensburg Police Officer Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
PITTSBURGH, Pa. – A former police officer for Greensburg, Pennsylvania, pleaded guilty in federal court to engaging in a drug conspiracy, United States Attorney Eric G. Olshan announced today.
Regina McAtee, 51, of New Kensington pleaded guilty before United States District Judge Cathy Bissoon to one count of conspiracy to distribute methamphetamine.
As part of her guilty plea, McAtee admitted that she conspired to distribute methamphetamine (in the form of fake “Adderall” pills) with former Greensburg Chief of Police Shawn Denning and other drug suppliers. McAtee admitted that she and Denning would order the pills from online suppliers, that McAtee would pay for the pills, and that the pills would be delivered to McAtee’s residence. McAtee sold some of the pills back to Denning, who would then distribute the drugs to others. Denning pleaded guilty to a drug conspiracy charge on April 16, 2024, also before Judge Bissoon.
“As a sworn police officer, Regina McAtee’s job was to stop drug dealing,” U.S. Attorney Olshan said. “Instead, she worked with her boss at the time, Shawn Denning, to push more methamphetamine out into the community. Our office and our law enforcement partners will continue to aggressively pursue and prosecute drug dealing, regardless of whether it’s being committed by citizens on the street or those who wear a badge.”
Judge Bissoon scheduled sentencing for August 22, 2024. The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, United States Postal Inspection Service, Internal Revenue Service – Criminal Investigation, and Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Cybersecurity Consultant Arrested for $1.5 Million Extortion Scheme Against IT CompanyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that VINCENT CANNADY was arrested in connection with his scheme to extort a publicly traded information technology infrastructure services provider of up to $1.5 million by threatening to publicly disclose the company’s confidential and proprietary information. CANNADY was arrested in El Dorado Springs, Missouri, this morning and is expected to appear in Missouri federal court tomorrow.
U.S. Attorney Damian Williams said: “As alleged, Vincent Cannady used illegal and extortionate threats for the purpose of obtaining over a million dollars in payments from a public company after his engagement was terminated. When those entrusted with sensitive information steal that information on their way out the door, only to extort money with a threat of releasing that information, my Office will hold them responsible for their conduct.”
As alleged in the Complaint:[1]
CANNADY was assigned by a staffing company to work on an engagement with the victim company. Under the engagement, CANNADY’s responsibilities included assessing and remediating potential vulnerabilities that an unauthorized party could use to access the victim’s information systems. As a result, CANNADY had access to the victim company’s sensitive and proprietary information. After about a year, CANNADY’s engagement was terminated. Days after, and while he still had access to the company’s information, CANNADY downloaded the company’s sensitive and proprietary information without its authorization and uploaded the information to a personal cloud storage account.
CANNADY then demanded that the company settle unspecified discrimination and emotional distress claims. He threatened to “upload all of the documents in his possession immediately once the case is filed” if the company did not settle his claims for $1.5 million. He added, “[a]s we all know those documents will imperil [the company’s] reputation and shake investor confidence.” He specifically demanded “a 10 year Certificate of Deposit for 1.5 million dollars,” which would “buy a[n] attestation that all files destroyed by me and a gag order preventing me from ever talking about what I saw or the documents I had in my possession or the documents I had created at [the company] or downloaded.”
At several points during his attempt to get the company to agree to a settlement, CANNADY sought specifically to add in provisions to a draft settlement agreement that would prohibit the company from pursuing criminal charges against him in connection with the settlement.
* * *
VINCENT CANNADY, 57, of El Dorado Springs, Missouri, is charged with Hobbs Act extortion, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams thanked the Federal Bureau of Investigation’s (“FBI”) New York Field Office, Westchester Resident Agency and the FBI’s Kansas City Field Office, Joplin and Springfield Resident Agencies.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Reyhan Watson and James McMahon are in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Chief Operating Officer of Illinois Hospital Sentenced to Prison for Embezzling Hospital FundsRead the Press Release
CHICAGO — The former Chief Operating Officer of an Illinois hospital has been sentenced to a year and a half in federal prison for illegally pocketing more than $620,000 in hospital funds.
ROBERT SPADONI was an attorney who worked as a Vice President and COO of the hospital. From 2013 to 2021, Spadoni orchestrated a scheme in which he approved payment of invoices to a vendor company that purportedly provided the hospital with administrative support and compliance services. In reality, the vendor company – Medical Education Solutions, Inc. – had been established by Spadoni for the purpose of executing the scheme. Spadoni’s family member opened a bank account in the company’s name and steered the hospital’s payments into it. Spadoni concealed the fraud scheme by paying $1,500 a month in cash to another hospital employee to actually provide the administrative and compliance services.
As a result of the fraud scheme, Spadoni obtained approximately $622,500 in payments from the hospital. Spadoni used the money for his own benefit, including restaurant meals and hotel stays, as well as transferring $225,805 into a 401(k) account he controlled.
Spadoni, 59, of Darien, Ill., pleaded guilty earlier this year to a mail fraud charge. In addition to the prison term, U.S. District Judge Matthew F. Kennelly on Tuesday ordered Spadoni to pay $622,500 in restitution to the hospital.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Kwame Raoul, Illinois Attorney General. The government was represented by Assistant U.S. Attorney Chester Choi.
Former Chicopee Superintendent of Schools Sentenced for Lying About Sending Nearly 100 Threatening Messages to Chief of Police CandidateRead the Press Release
BOSTON – The former Superintendent of the Chicopee Public Schools was sentenced yesterday for making false statements in connection with her sending 99 threatening messages to a candidate for Chicopee Police Chief.
Lynn Clark, 53, of Belchertown, was sentenced by U.S. District Court Judge Mark G. Mastroianni to serve one year of probation and pay a $1,000 fine. In January 2024, Clark pleaded guilty to two counts of making false statements.
“In a relentless effort to evade accountability, Ms. Clark’s actions and lies not only harmed innocent people and tarnished the reputation of Chicopee, but also sowed chaos and wasted invaluable investigative resources. She abused her position of trust as a community leader to engage in a series of baseless accusations and to weave a web of intricate lies. Ms. Clark’s scheme led to months of needless stress for the City and halted its crucial search for a Chief of Police. Additionally, her lies resulted in hundreds of hours of wasted investigation as she pointed the finger at completely innocent people,” said Acting United States Attorney Joshua S. Levy. “This calculated misconduct, which spanned false accusations against police officers, a city employee, and even her own son, underscores a flagrant disregard for the repercussions of her actions.”
“Former Chicopee School Superintendent Lynn Clark failed to lead by example when she falsely claimed she was a victim of a crime and then repeatedly lied to the FBI. In doing so, she caused unnecessary stress and reputational harm to those she accused, and wasted hundreds of hours of investigative resources,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence makes it clear that willfully lying to federal agents will be result in serious consequences. The FBI can’t properly pursue our investigative mandate – in this case, fighting public corruption – if the people we interview think they can deceive us with impunity.”
In December 2021, the City of Chicopee was in the process of hiring a new Police Chief. On Dec. 3, 2021, law enforcement received a report that a candidate for the position was receiving threats intended to force the victim to withdraw their application for Chicopee Police Chief. In November 2021, after submitting their application for Police Chief, the victim received numerous text messages from unknown numbers containing threats to expose information that would cause the victim reputational harm. As a result, the victim withdrew their application and the City delayed the selection process.
In meetings with law enforcement over the course of several months during the investigation, Clark falsely stated that she did not know who sent the messages and attempted to dissuade law enforcement from pursuing the investigation any further, expressing concern that the investigation was harming her reputation and “tearing the city apart.” Clark also falsely claimed to be a victim and stated that she received threatening text messages from unknown phone numbers, when, in fact she sent the messages to herself. Additionally, over the course of the investigation, Clark falsely accused at least five other, innocent individuals of sending the threatening text messages – including the victim’s fellow police officers, a City employee and her own son.
The investigation revealed that a total of approximately 99 threatening messages were sent from fictitious phone numbers purchased through a mobile app. Phone and internet records revealed that these numbers were purchased by Clark and that these accounts sent each of the threatening messages. Clark made false statements to law enforcement denying that she had downloaded a mobile app with which she purchased the fictitious phone numbers to send the messages. Clark later admitted that she did indeed send the messages and downloaded the app.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office prosecuted the case.
Extradited Nigerian National Convicted of Business Email Compromise SchemeRead the Press Release
A federal jury in New Haven convicted a Nigerian national today for operating a business email compromise scheme out of multiple countries, including the United States.
According to court documents and evidence presented at trial, Okechuckwu Valentine Osuji, 39, and his co-conspirators targeted specific individuals and businesses by masquerading as trustworthy entities in electronic communications to obtain money. They utilized unwitting and witting “money mules” to receive fraud proceeds in their bank accounts, and then transferred those funds to accounts under the control of Osuji and his co-conspirators or to convert the stolen proceeds to cash for further transfer. Over the course of the scheme’s years-long operation, numerous victims were tricked into transferring funds into bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in reality, the bank accounts were controlled by Osuji and his co-conspirators. The victims included a Connecticut-based financial company, a Colorado-based lending company, an Alaska-based nonprofit performing arts organization, a New York-based food and beverage company, and others.
As a result of the scheme, losses and intended losses totaled over $6.3 million.
“While it is often difficult to identify and bring to justice cybercriminals operating overseas, today’s verdict demonstrates the expertise of the FBI and Stamford Police in uncovering this criminal network, and the shared commitment of our counterparts in Malaysia to ensure that fraudsters are held accountable in a court of law,” said U.S. Attorney Vanessa Roberts Avery. “We will continue to work to root out those who engage in internet fraud schemes, no matter where in the world they operate, and achieve justice for victims of these crimes.”
“Osuji led a network of scammers in Malaysia and elsewhere in a sophisticated business email compromise scheme to defraud victims of millions of dollars,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s conviction is another example of how the Department’s collaboration with international law enforcement partners enables us to bring cybercriminals to justice in the United States.”
“The defendant perpetrated a complex international business email compromise scheme and laundered millions in stolen proceeds,” said Executive Assistant Director Timothy R. Langan Jr. of the FBI’s Criminal, Cyber, Response and Services Branch. “This conviction is the result of hard work and close collaboration between the FBI and our local and international partners. Together, we will work aggressively to bring to justice anyone who engages in fraud and theft against Americans, no matter where they are in the world.”
“Today’s verdict provides a bit of closure to some victims of these often financially crippling crimes,” said Special Agent in Charge Robert Fuller of the FBI New Haven Division. “It also displays our international ability to bring criminal actors to justice despite the complexities of their crimes. We want to thank all of our law enforcement partners here and abroad, as well as the U.S. Attorney’s office, for their dedication to serving justice.”
The jury convicted Osuji of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. He is scheduled to be sentenced on July 24 and faces a mandatory minimum of two years on the identity theft count and a maximum penalty of 60 years in prison on the wire fraud and conspiracy counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Osuji was arrested in Malaysia and extradited to the United States in 2022. His alleged co-conspirator, John Wamuigah, remains in Malaysia and is pending extradition proceedings. Another co-conspirator, Tolulope Bodunde, pleaded guilty on February 16, 2024, and is awaiting sentencing.
As to Wamuigah, the charges in the indictment are only allegations and he is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI New Haven Field Office and the Stamford Police Department investigated the case. The Justice Department’s Office of International Affairs, Royal Malaysia Police, and Malaysian Attorney General’s Chambers provided valuable assistance in securing the arrest and extradition of Osuji.
Assistant U.S. Attorney Margaret M. Donovan of the District of Connecticut and Trial Attorney Lydia Lichlyter of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case, with the assistance of Assistant U.S. Attorney Patrick Doherty and Law Student Interns Christopher D’Urso and Eli Scher-Zagier.
If you believe that you have been victimized by Valentine Osuji, John Wamuigah, or Tolulope Bodunde, please contact the FBI New Haven Field Office at 203-777-6311 and ask for FBI Task Force Officer Michael Stempien. Please note that defendants are believed to have used the following accounts in perpetuation of their crimes (partially redacted where necessary, to obscure the names of stolen identities):
- [email protected]
- [email protected]
- [email protected]
- [email protected]
- [email protected] or [email protected]
To learn more about business email compromise scams, please visit www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/business-email-compromise and www.ic3.gov/Media/Y2023/PSA230609.
Extradited Nigerian National Convicted of Business Email Compromise SchemeRead the Press Release
A federal jury in New Haven, Connecticut, convicted a Nigerian national today for operating a business email compromise scheme out of multiple countries, including the United States.
According to court documents and evidence presented at trial, Okechuckwu Valentine Osuji, 39, and his co-conspirators targeted specific individuals and businesses by masquerading as trustworthy entities in electronic communications to obtain money. They utilized unwitting and witting “money mules” to receive fraud proceeds in their bank accounts, and then transferred those funds to accounts under the control of Osuji and his co-conspirators or to convert the stolen proceeds to cash for further transfer. Over the course of the scheme’s years-long operation, numerous victims were tricked into transferring funds into bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in reality, the bank accounts were controlled by Osuji and his co-conspirators. As a result of the scheme, losses and intended losses totaled over $6.3 million.
“Osuji led a network of scammers in Malaysia and elsewhere in a sophisticated business email compromise scheme to defraud victims of millions of dollars,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s conviction is another example of how the department’s collaboration with international law enforcement partners enables us to bring cybercriminals to justice in the United States.”
“While it is often difficult to identify and bring to justice cybercriminals operating overseas, today’s verdict demonstrates the expertise of the FBI and Stamford Police in uncovering this criminal network, and the shared commitment of our counterparts in Malaysia to ensure that fraudsters are held accountable in a court of law,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “We will continue to work to root out those who engage in internet fraud schemes, no matter where in the world they operate, and achieve justice for victims of these crimes.”
“The defendant perpetrated a complex international business email compromise scheme and laundered millions in stolen proceeds,” said Executive Assistant Director Timothy R. Langan Jr. of the FBI’s Criminal, Cyber, Response, and Services Branch. “This conviction is the result of hard work and close collaboration between the FBI and our local and international partners. Together, we will work aggressively to bring to justice anyone who engages in fraud and theft against Americans, no matter where they are in the world.”
“Today’s verdict provides a bit of closure to some victims of these often financially crippling crimes,” said Special Agent in Charge Robert Fuller of the FBI New Haven Field Office. “It also displays our international ability to bring criminal actors to justice despite the complexities of their crimes. We want to thank all of our law enforcement partners here and abroad, as well as the U.S. Attorney’s office, for their dedication to serving justice.”
The jury convicted Osuji of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. He is scheduled to be sentenced on July 24 and faces a mandatory minimum of two years on the identity theft count and a maximum penalty of 60 years in prison on the wire fraud and conspiracy counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Osuji was arrested in Malaysia and extradited to the United States in 2022. His alleged co-conspirator, John Wamuigah, remains in Malaysia and is pending extradition proceedings. Another co-conspirator, Tolulope Bodunde, pleaded guilty on Feb. 16.
The FBI New Haven Field Office and the Stamford Police Department investigated the case. The Justice Department’s Office of International Affairs, Royal Malaysia Police, and Malaysian Attorney General’s Chambers provided valuable assistance in securing the arrest and extradition of Osuji.
Trial Attorney Lydia Lichlyter of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Margaret M. Donovan for the District of Connecticut are prosecuting the case. Assistant U.S. Attorney Patrick Doherty for the District of Connecticut provided valuable assistance to the investigation.
If you believe that you have been victimized by Valentine Osuji, John Wamuigah, or Tolulope Bodunde, please contact the FBI New Haven Field Office at 203-777-6311 and ask for FBI Task Force Officer Michael Stempien. Please note that defendants are believed to have used the following accounts in perpetuation of their crimes (partially redacted where necessary, to obscure the names of stolen identities):
- [email protected]
- [email protected]
- [email protected]
- [email protected]
- [email protected] or [email protected]
To learn more about business email compromise scams, please visit www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/business-email-compromise and www.ic3.gov/Media/Y2023/PSA230609.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Elara Caring Agrees to Pay $4.2 Million to Settle False Claims Act Allegations That It Billed Medicare for Ineligible Hospice PatientsRead the Press Release
Elara Caring, and its wholly owned subsidiaries JHH/CIMA Holdings Inc., CIMA Healthcare Management Inc., CIMA Hospice of Texarkana L.L.C., CIMA Hospice of East Texas L.L.C. and CIMA Hospice of El Paso L.P., have agreed to pay $4.2 million to resolve allegations that they violated the False Claims Act by knowingly submitting false claims and knowingly retaining overpayments for the care of hospice patients in Texas who were ineligible for the Medicare hospice benefit because they were not terminally ill.
“The hospice benefit under Medicare provides critical services to vulnerable patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to ensure that this benefit is used to assist those who need it, and not to line the pockets of those who seek to abuse it.”
The settlement resolves allegations that Elara Caring’s Texarkana, Texas, location, which previously operated as CIMA Hospice, knowingly submitted false claims for hospice services provided to patients who were ineligible for the hospice benefit because they were not terminally ill. The patients at issue in the settlement were at the Texarkana location between 2014 and 2019 and in 2020. The settlement also resolves allegations regarding two patients at other Texas locations between 2015 and 2021. The settlement further resolves allegations that Elara Caring knowingly and improperly concealed or avoided obligations to repay overpayments for these patients.
“I appreciate the Department of Health and Human Services for their assistance in this litigation and helping to protect victims of fraud,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Settlements like this hold offenders accountable and encourage anyone who suspects fraud involving the Medicare program to exercise their protected rights as whistleblowers.”
“Hospice care is intended to provide comfort and relief for the terminally ill and taking advantage of the system in order to make more money is intolerable,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to pursue health care providers who jeopardize the integrity of hospice care by prioritizing illegitimate profit over medically necessary services.”
The civil settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the Government’s recovery. The qui tam lawsuit was filed by Aneko Jackson, a former Elara Caring employee, and is captioned United States ex rel. Jackson v. CIMA Healthcare Management, Inc., et al., Case No. 1:20-cv-00368 (W.D. Tex.). Ms. Jackson will receive $672,000 in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Western District of Texas and HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorneys Martha N. Glover, Kristen M. Murphy and William E. Olson of the Civil Division and Assistant U.S. Attorney Thomas A. Parnham Jr. for the Western District of Texas handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementEagle River man charged with being a felon in possession of a firearmRead the Press Release
ANCHORAGE, Alaska – An Eagle River man was charged last week with being a felon in possession of a firearm.
According to court documents, in October 2023, Kyle Reynolds, 27, allegedly possessed a firearm during a domestic violence assault. At the time of the alleged event, Reynolds had a prior felony conviction for assault and failing to stop at the direction of a peace officer resulting in serious injury.
Reynolds is charged with 18 U.S.C. § 922(g)(1) in violation of being a felon in possession of firearms. If convicted, Reynolds faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska, Anchorage Police Department (APD) Chief Designee Bianca Cross and Alcohol, Tobacco, Firearms and Explosives (ATF) Seattle Field Division Special Agent in Charge Jonathan Blais made the announcement.
APD and ATF Anchorage Field Office are investigating the case. If anyone has any information related to Reynolds’s possession of firearms, suppressors or other activities, please submit an online police report with APD at www.anchoragepolice.com/file-a-police-report or submit a tip to the ATF at www.atf.gov/atf-tips.
Assistant U.S. Attorneys Adam Alexander and Christina Sherman are prosecuting the case.
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.
###
District Man Pleads Guilty to Daylight Armed Bank RobberyRead the Press Release
WASHINGTON – Ronald Lamont Jenkins, 35, of Washington D.C., pleaded guilty today to the daylight armed robbery of a Northeast Washington D.C bank branch in June 2022, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office, and Chief Pamela A. Smith of the Metropolitan Police Department.
Jenkins pleaded guilty today to a charge of bank robbery before U.S. District Judge Randolph D. Moss, who scheduled sentencing for August 21, 2024.
According to court documents, Jenkins entered the bank branch on 900 block of Rhode Island Avenue on June 13, 2022. Jenkins approached the counter, stated “open the drawer,” and lifted the front of his shirt to reveal the handle of a black-and-gold handgun tucked into his waistband. As the teller opened the register, Jenkins reached over the counter and grabbed a large amount of cash before quickly leaving the bank. FBI Agents traced Jenkins’ flight path and recovered a pair of neon yellow gloves, a black hooded sweatshirt, a pair of brown shoes, a pair of sweatpants, and a black face mask – all of which matched the clothing worn during the robbery. A subsequent laboratory review discovered Jenkins’ DNA on that clothing, and he was arrested on November 15, 2023. Jenkins has been detained since his arrest.
This case was investigated by the FBI’s Violent Crimes Task Force with assistance from the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney James B. Nelson.
District Man Found Guilty of Gun and Drug Paraphernalia-Related ChargesRead the Press Release
WASHINGTON - Demann Shelton, 31, of Washington, D.C., was found guilty today by a jury of charges related to a December 2019 incident in which he possessed an illegal firearm in NW Washington D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department.
The Honorable Lynn Leibovitz scheduled sentencing for July 12, 2024.
Shelton was found guilty following a jury trial in the Superior Court of the District of Columbia, of unlawful possession of a firearm, carrying a pistol without a license, possession of an unregistered firearm, unlawful possession of ammunition, and unlawful possession of drug paraphernalia.
According to evidence presented during the trial, on December 18, 2019, Shelton and two other men were inside an illegally parked car, near 90 L Street NW, when Metropolitan Police Department (“MPD”) officers drove into the parking lot. Officers ordered Shelton, the sole backseat passenger, to get out of the car. During the ensuing search of the car, officers located a large black jacket on the backseat near where Shelton had been sitting moments earlier. Inside the jacket, officers found a loaded .40 caliber Glock 23 handgun, with an affixed laser light and an inserted extended magazine containing 15 rounds of ammunition, along with a digital scale with white powder residue, Shelton’s photo ID, a credit card with a picture of Shelton on it, and mail with Shelton’s name on it. Officers also located $2,443 in cash in Shelton’s pants pocket.
Judge Leibovitz ordered that the defendant remain held pending sentencing.
This case was investigated by the Metropolitan Police Department. It was prosecuted and tried by Assistant U.S. Attorneys Luke Albi and Leah Paisner of the General Crimes Section of the U.S. Attorney’s Office for the District of Columbia.
Darknet Vendor Who Sold Millions of Counterfeit Xanax SentencedRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Wednesday sentenced a man who sold millions of counterfeit Xanax pills on the Darknet to 24 months in prison, fined him $10,000 and ordered him to forfeit nearly $1 million.
Brandon Adams, 27, will also be on supervised release for three years after he gets out of prison.
Adams pleaded guilty in September to three felony counts: conspiracy to distribute a controlled substance via the internet, conspiracy to sell misbranded/counterfeit drugs and selling counterfeit drugs. Adams admitted that between at least October 2019 and May of 2021, he sold millions of counterfeit and/or misbranded pills on the Darknet using the name “BenzoBoys.”
Adams primarily sold counterfeit Xanax, an anti-anxiety drug, and its generic equivalents. He used a pill press with imprints that were substantially indistinguishable from those used by pharmaceutical companies selling generic forms of Xanax and the color, shape and size pills designed to deceive or confuse buyers. Adams maintained a manufacturing operation at a secluded lake house outside Sullivan, Missouri. Customers placed orders using an encrypted messaging service and paid with cryptocurrency. Adams would then mail the pills or place them at “dead drop” sites for customers to pick up, his plea agreement says.
Adams sold millions of pills, including hundreds of thousands to customers who would then re-sell the pills.
After investigators made undercover purchases from Adams, they conducted a court-approved search of his apartment in Sullivan and the lake house. They found the pill press, tens of thousands of misbranded pills and bags labeled alprazolam, the active ingredient in Xanax, and clonazolam, a derivative benzodiazepine. They found about $630,000 in cash and two rifles at his apartment and seized about $330,000 in Bitcoin. Adams has agreed to forfeit the gun, cash and Bitcoin.
“Brandon Adams was one of the most prolific manufacturers and distributors of counterfeit Xanax pills in the United States,” said Acting Special Agent in Charge Chris Crocker of the FBI St. Louis Division. “Counterfeit pills often contain unknown substances and pose a huge risk to consumer health because they evade regulatory oversight.”
“The pervasiveness of these fake pills is a problem that cuts to the core of Missourians and the American public,” said Assistant Special Agent in Charge Joseph Dixon of the Drug Enforcement Administration St. Louis Division. “DEA remains steadfast in its commitment to dismantle and destroy these types of enterprises that hide in the shadows and operate in the dark corners of the web. I urge people to talk to their loved ones about the threats and dangers of fake pills.”
The FBI, Homeland Security Investigations, the Drug Enforcement Administration and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney John Ware prosecuted the case.
Dallas man sentenced to over 16 years in federal prison for distributing fentanyl that killed Frisco manRead the Press Release
PLANO, Texas – A Dallas man who sold fentanyl-laced pills has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Benjamin Linder, also known as Benzo, 23, pleaded guilty to conspiracy to distribute fentanyl resulting in death and was sentenced to 200 months in federal prison on April 30, 2024 by U.S. District Judge Robert W. Schroeder III.
According to information presented in court, on Dec. 24, 2021, law enforcement responded to a Frisco residence regarding an unresponsive person. Upon arrival officers were informed by the father of the victim that he had found his 20-year-old son unresponsive on the living room floor. Paramedics arrived but were unable to revive the victim and he was pronounced deceased at the residence.
Investigators were able to access the victim’s cellular phone and discovered the phone contained a contact labeled as “Benzo,” later identified as the defendant, Benjamin Linder. Investigators learned that on Dec. 23, 2021, the victim sent a message to Linder requesting to purchase pills and “lean,” which is a promethazine-codeine syrup. A series of text messages between the victim and Linder revealed they arranged to meet in a parking lot on the campus of the University of Texas at Dallas, where the victim purchased fentanyl-laced pills and “lean” from Linder. Investigators were able to determine that the victim had been communicating with Linder since at least November 10, 2021. Investigators were able to access Linder’s text messages as well, which showed Linder sent an unidentified person messages stating, “So that kid that died” and “I jus found out I sold him the drugs.”
Toxicology reports identified the victim’s cause of death as toxic effects of fentanyl, flubromazepam, trazodone, hydroxyzine, and promethazine. Linder was indicted by a federal grand jury on Jan. 12, 2023, and charged with federal drug trafficking violations.
This case was investigated by the Frisco Police Department Special Investigations Unit and the Collin County Medical Examiner’s Office and prosecuted by Assistant U.S. Attorney Matthew T. Johnson.
###
Custer Man Sentenced for Receipt of Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Custer, South Dakota, man for receiving child pornography. The sentencing took place on April 25, 2024.
Nathan Frisch, a 43-year-old former teacher in both Custer and Rapid City, was sentenced to five years in federal prison, followed by five years of supervised release. Frisch was also ordered to pay $1,000 in restitution, a $5,000 special assessment to the Victims of Trafficking Fund, a $5,000 special assessment to the Amy, Vicky and Andy Child Pornography Assistance Fund, and a $100 special assessment to the Federal Crime Victims Fund.
Frisch was indicted for Receipt of Child Pornography and Possession of Child Pornography by a federal grand jury in March of 2023. On January 17, 2024, he pleaded guilty to receiving child pornography.
Frisch admitted that he knowingly downloaded child pornography from the internet, using his cell phone and laptop between September 4, 2022, and December 30, 2022. Frisch also admitted that he used the “Reface” application to transpose the faces of female minors onto sexually explicit depictions of adult women.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations and the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Heather Knox prosecuted the case.
Frisch was immediately remanded to the custody of the U.S. Marshals Service.
Cumberland County Men Charged with Drug Trafficking and Illegally Possessing FirearmsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that William L. Nalley Jr., age 27, of Boiling Springs, PA, and Rafael Orihuela, age 22, of Carlisle, PA, were indicted today by a federal grand jury on charges related to the distribution of controlled substances and unlawful possession of firearms.
According to United States Attorney Gerard M. Karam, the indictment alleges that Nalley possessed with the intent to distribute marijuana, lysergic acid diethylamide, and psilocin. It is also alleged that Nalley possessed two firearms in furtherance of drug trafficking. The indictment further alleges that Orihuela maintained a premise for the purpose of unlawfully storing, distributing, and using the controlled substances listed above.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Middlesex Township Police Department. Assistant United States Attorney Stephen Dukes is prosecuting the case.
The maximum penalty Nalley faces under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. Orihuela faces a maximum penalty of twenty years imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Convicted Sex Offender Indicted for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Chad Allen Pease (48, Fort Pierce) with attempting to entice a minor to engage in sexual activity and committing a felony offense involving a minor when required to register as a sex offender. If convicted on all counts, Pease faces a minimum mandatory penalty of 20 years, up to life, in federal prison. The indictment also notifies Pease that the United States intends to forfeit assets which were used in commission or are alleged to be traceable to proceeds of the offense.
According to court documents, on February 3, 2024, Pease, a registered sex offender, began communicating with an undercover law enforcement officer (UC) whom Pease believed to be the father of a 13-year-old girl. Over the course of the conversation, Pease made plans to meet up with the UC and his “daughter” so that Pease could have sex with the child. On February 4, 2024, Pease traveled to the prearranged meeting spot. He was later arrested.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations (HSI) and the Osceola County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Richard Varadan.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Colorado Woman Sent to Federal Prison for Possessing Meth & FirearmsRead the Press Release
A woman who possessed a pound of methamphetamine and 150 pounds of marijuana was sentenced on May 1, 2024, to 8 years in federal prison.
Amy Cruz age 37, from Denver, Colorado, received the prison term after an October 13, 2022, guilty plea to Possession with Intent to Distribute Methamphetamine.
Evidence in the case showed that on April 27, 2022, Cruz and a co-defendant committed several offenses in Colorado before traveling cross country to deliver drugs to Minnesota. Locally, Cruz and a co-defendant stole a vehicle from a car dealership in Sioux City, Iowa, and led law enforcement on a high-speed pursuit with speeds exceeding 100mph. During the pursuit, Cruz and the co-defendant began discarding items from the stolen vehicle before switching to a second stolen vehicle. The pursuit ended when they crashed into an unoccupied car in Le Mars, Iowa. The two were transported to the hospital with varying degrees of injury. Several totes were found Cruz’s path, and some in the stolen vehicles, which contained stolen marijuana from a Colorado dispensary, approximately one pound of methamphetamine, three firearms, and numerous other items that had been reported stolen.
Cruz was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Cruz was sentenced to 96 months’ imprisonment. She must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Cruz is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorneys Patrick T. Greenwood and Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4045.
Follow us on Twitter @USAO_NDIA.
Clarkston Man Sentenced to Federal Prison for Attempting to Meet with a Minor for SexRead the Press Release
Yakima, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that David Elmo Curry, 38 of Clarkston, Washington, was sentenced on two counts of Attempted Enticement of a Minor. Curry was convicted of those crimes on December 6, 2023, following a jury trial. Chief United States District Judge Stanley A. Bastian imposed a sentence of 156 months in federal prison to be followed by 10 years of supervised release.
According to court documents and information disclosed at trial and sentencing, Curry was arrested when he arrived at a house in Yakima, Washington after travelling from Kennewick, Washington in order to have sex with two minor girls. Earlier that day, Curry responded to an on-line ad by a woman purporting to be the mother of two daughters – ages 11 and 13. In text and email exchanges, the mother explained she was seeking a man to have sex with her minor children. The on-line ad was actually part of a sting operation conducted by the Washington State Patrol, assisted by the Yakima and Union Gap Police Departments and Homeland Security Investigations and the purported mother was an undercover officer. At the time of his arrest, Curry had condoms and flavored lubricant with him. Curry was then charged in Yakima County Superior Court with Attempted First Degree Attempted Rape of a Child and Second Degree Attempted Rape of a child. He later was released on bail on these state charges.
Following Curry’s release on bail, a Homeland Security Investigations Task Force Officer, acting in an undercover capacity, responded to a separate on-line ad, which Curry placed while on release. The undercover officer represented that he was a thirteen-year-old girl and Curry engaged the officer in sexual talk, requested nude images, and made arrangements to meet with him in person over the course of dozens of email and text messages. At one point, Curry determined the purported child’s preferred candy and purchased flavored lubricant in a corresponding flavor for a planned meeting the next day, which never took place.
Chief United States District Judge Stanley A. Bastian presided over the trial, which began on December 4, 2023. After 2 days of trial testimony, the jury returned guilty verdicts on all counts.
“Even while on release for related crimes, Mr. Curry attempted to find a young child to victimize,” stated U.S. Attorney Waldref. “I am deeply grateful for the work of Homeland Security Investigations, our local partners, and the Internet Crimes Against Children Task Force, for effectively responding to technology-facilitated sexual exploitation and for protecting our children.”
“Predators like Mr. Curry are motivated to target their victims through mouse clicks and keystrokes, and any sentence punishing his perverse actions is an important step in ensuring cyberspace is kept free of those that seek to exploit children,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI, through its investigative expertise and law enforcement partnerships, will continue to hunt down these predators to ensure every one of them faces the full weight of justice.”
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 CEOS, 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.
This case was investigated by Homeland Security Investigations with the assistance of the Washington State Patrol, the Yakima Police Department and the Southeast Regional ICAC Task Force, consisting of the Richland and Kennewick Police Departments. This case was prosecuted by Michael Murphy, Assistant United States Attorney for the Eastern District of Washington.
Cincinnati man sentenced to more than 6 years in prison for leading conspiracy involving 56 firearms purchased online with stolen credit cardsRead the Press Release
CINCINNATI – A Cincinnati man was sentenced in U.S. District Court today to 79 months in prison for crimes related to buying firearms with stolen credit card information and leading a conspiracy to pick up the firearms in illegal straw purchases, as well as separately obtaining a fraudulent COVID-relief loan.
Zephaniah Jones, 21, was convicted of conspiring to make false statements on federal firearms forms, committing aggravated identity theft, and making false statements to the U.S. Small Business Administration.
According to court documents, from April through July 2022, Jones and others used stolen credit card information to place online orders for firearms with Guns.com and other online retailers for delivery to Cincinnati. Under federal law, the firearms could not be shipped directly to Jones or a coconspirator; they had to be shipped to a local federal firearms licensee (FFL). At the FFL, Jones’s coconspirators lied on ATF Form 4473, a form required when purchasing a firearm from an FFL, by pretending to be the actual buyer of the firearms. In fact, the firearms were for Jones, who intended to resell them. In total, Jones and his coconspirators completed online orders for 56 firearms and succeeded in obtaining at least 37.
Some of the firearms involved in the conspiracy were traced to crimes within a short period of time. For example, just 15 days after purchase, one pistol was used to shoot into an occupied residence in Columbus; it was later also used in a shots-fired incident and a separate felonious assault. Another pistol was recovered from a juvenile less than three months after purchase, after being used in a different shots-fired incident in Columbus.
Separately, in February 2020, Jones submitted a fraudulent application for a Paycheck Protection Program (PPP) loan, falsely claiming that he owned a business called Jones Lawncare LLC. As a result, Jones was awarded a PPP loan for nearly $21,000 that was later forgiven.
Jones was ordered to pay $20,643 in restitution to the SBA. The amount of restitution to be paid to the FFLs whose firearms were stolen will be determined at a later hearing.
Jones pleaded guilty in January 2024. Five other coconspirators in the straw-purchasing conspiracy have been charged federally.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) announced the sentence imposed today by Senior U.S. District Judge Michael R. Barrett. Assistant United States Attorney Julie D. Garcia is representing the United States in this case. The case was investigated by the ATF with the assistance from the Cincinnati Police Department and the Hamilton County Sheriff’s Office.
# # #
Chicago Woman Sentenced to Prison for Participating in $16 Million Covid-Relief FraudRead the Press Release
CHICAGO – A Chicago woman has been sentenced to a year and a half in federal prison for participating in an organized scheme to fraudulently obtain more than $16 million in small business loans and grants under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
MILICA SUMAKOVIC was among seven defendants indicted in U.S. District Court in Chicago for participating in a scheme that submitted more than 300 fraudulent applications seeking more than $40 million in benefits from the Economic Injury Disaster Loan Program (EIDL). As a source of relief under the CARES Act, the EIDL program was intended to provide loan assistance or grants to cover working capital and other operating expenses for legitimate businesses that suffered revenue losses as a result of the Covid-19 pandemic. Sumakovic and her co-defendants claimed in their applications that they owned and operated various businesses in Illinois and Florida. The applications and supporting documents contained materially false representations about the defendants’ purported companies, including the number of employees and revenue amounts. The defendants’ scheme caused the U.S. Small Business Administration to pay out more than $16 million in fraudulent benefits. Sumakovic personally submitted and assisted co-defendant MARKO NIKOLIC in submitting eighteen of the fraudulent applications that sought more than $2.6 million in benefits.
Sumakovic, 33, of Chicago, pleaded guilty last year to a federal wire fraud charge. U.S. District Judge Nancy L. Maldonado on April 25, 2024, sentenced Sumakovic to 18 months in federal prison and ordered her to pay $1.68 million in restitution to the SBA.
Marko Nikolic, 36, of La Grange, Ill., and BRANKO ALEKSIC, 34, of Chicago, each pleaded guilty last year to wire fraud and money laundering charges. Marko Nikolic was sentenced in January 2024 to four years and two months in prison and ordered to pay $6.9 million in restitution, while Aleksic was sentenced in November 2023 to two years and eleven months in prison and ordered to pay $575,000 in restitution.
The four other defendants – MAJA NIKOLIC, 36, of Brookfield, Ill., NEBOJSA SIMEUNOVIC, 38, of Lyons, Ill., MIJAJLO STANISIC, 34, of Willowbrook, Ill., and DORDE TODOROVIC, 33, of Chicago – are considered fugitives and may currently be residing overseas. Warrants for their arrests have been issued.
The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago, Heather M. Hill, Acting Inspector General of the Treasury Department Inspector General for Tax Administration (TIGTA), Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office, and Hannibal Ware, Inspector General of the U.S. Small Business Administration. The government was represented by Assistant U.S. Attorneys Kavitha J. Babu and Brian Hayes.
“The relief programs provided by the CARES Act were designed to assist small businesses struggling to survive the Covid-19 pandemic,” said Acting U.S. Attorney Pasqual. “Our office is committed to working with our law enforcement partners to root out abuse of these important programs and hold accountable anyone who seeks to fraudulently profit from them.”
“This sentence is a great example of what can be accomplished when federal and local law enforcement agencies work in collaboration,” said HSI SAC Fitzgerald. “We will continue to work tirelessly to investigate criminals who seek to exploit the United States government and bring them to justice.”
“The sentence imposed on Sumakovic underscores the federal government's dedication to holding accountable individuals who defrauded vital programs that served as a lifeline for businesses during the pandemic,” said IRS-CI SAC Campbell. “Make no mistake: CI and its fellow law enforcement partners remain steadfast in their commitment to holding accountable the fraudsters who exploited Covid-relief programs for personal gain.”
Last month, the Justice Department’s Covid-19 Fraud Enforcement Task Force released its 2024 report detailing the efforts of the task force and its member agencies in response to widespread fraud involving many Covid-19 programs targeted by fraudsters and other criminals who sought to exploit the government’s relief efforts for their personal gain. Anyone with information about attempted fraud involving Covid-19 is encouraged to report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at (866) 720-5721 or filing an online complaint here.
Charleston Man Sentenced to 5 Years in Federal Prison for Conspiring to Possess with Intent to Distribute CocaineRead the Press Release
CHARLESTON, S.C. — Omar Sexton, 43, of Charleston, was sentenced to five years in federal prison after pleading guilty to conspiracy to possess with intent to distribute cocaine.
Evidence presented to the court showed that a K-9 trained to detect narcotics alerted on a package at a mail shipping center in Louisville, Kentucky. Law enforcement obtained a search warrant for the package and discovered the package contained approximately one kilogram of a white powdery substance that was determined to be cocaine, and what appeared to be mushrooms and marijuana. The package was shipped from Los Angeles, California on June 19, 2023, and was addressed to a residence in North Charleston. The government obtained surveillance footage of Sexton shipping the package at the shipping center.
Airline records also indicated Sexton travelled between Charleston and Los Angeles several times during the summer of 2023, including from Los Angeles to Charleston on June 19, 2023. Phone records indicated that the subscriber of the phone number on the package was Omar Sexton. SC DMV records showed that Omar Sexton resided at the same address to which the package was sent.
United States District Judge David C. Norton sentenced Sexton to 60 months’ imprisonment, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Lee Holmes is prosecuting the case.
###
Charleston Developer Pleads Guilty to Bankruptcy FraudRead the Press Release
CHARLESTON, W.Va. – John H. Wellford III, 73, of Charleston, pleaded guilty today to falsification of bankruptcy records.
According to court documents and statements made in court, on March 29, 2019, Wellford filed for bankruptcy on behalf of Corotoman Inc., a real estate development company he owned and operated. As part of the bankruptcy, Corotoman’s Statement of Financial Affairs required Wellford to disclose all monetary transfers from Corotoman outside the ordinary course of business that had occurred in the two years prior to filing for bankruptcy. Wellford admitted that, despite this requirement, he did not disclose that he had transferred $925,326.43 from Corotoman on or around May 2, 2018 to another of Wellford’s businesses, Marsh Fork Development.
Approximately 10 months prior to the bankruptcy filing, Corotoman received a large influx of cash while it was struggling financially and while one of its creditors was actively trying to collect on an outstanding debt. Wellford deposited a $1,978,101.40 check from American Electric Power in Corotoman’s bank account on or around April 30, 2018. Wellford then transferred $925,326.43 of the funds to Marsh Fork Development on or around May 2, 2018. From that money, Wellford transferred $680,000 to his lawyer’s client trust account. Over the next five months, Wellford caused his lawyer to transfer the entire $680,000 back to various businesses that Wellford owned, primarily Marsh Fork Development.
Wellford admitted that all of these transactions were to ensure that he maintained possession and control over the money so that he could use the money for his businesses. Additionally, when Wellford attended a May 28, 2019 meeting of creditors, he testified that Corotoman had not made any payments to creditors outside the ordinary course of business in the year prior. When Wellford twice amended Corotoman’s bankruptcy filings to account for other undisclosed transactions that took place at the same time as the transfer, he failed to disclose the transfer.
Wellford is scheduled to be sentenced on August 7, 2024, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $250,000 fine. Wellford also owes $925,326.43 in restitution.
“The defendant sought to abuse the bankruptcy process and conceal the transfer of these substantial funds because he wanted to keep that money and did not want it to be available to his company’s creditors,” said United States Attorney Will Thompson.
Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the West Virginia State Police, the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU) and the West Virginia Offices of the Insurance Commissioner-Special Investigations Division. The United States Trustee’s Charleston field office, which serves West Virginia, made the criminal referral of this case to the U.S. Attorney’s Office. The United States Trustee Program is a component of the Department of Justice whose mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public.
“Financial crimes undermine our foundation of economic stability. The message here is clear: our economy is not a marketplace for manipulation, theft, or criminal activity,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “No one is above the law and the resolve to uphold it remains resolute for the FBI and our partners. Truth will always find its voice in the pursuit of justice.”
“Debtors’ responsibility to provide truthful, accurate, and complete information is essential to the proper function of the bankruptcy system,” said Acting United States Trustee Gerard Vetter of Region 4, which includes West Virginia. “This case demonstrates the dedication of the United States Trustee Program and the Justice Department to enforce the statutes imposing that responsibility and to ensure a fair process for debtors, creditors and other stakeholders. We thank U.S. Attorney Thompson and our law enforcement partners for their commitment to protecting the integrity of the bankruptcy system.”
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Holly Wilson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-63.
###
Centerville man who made online threats to commit school shooting sentenced to 6 years in prison for possessing machine gunRead the Press Release
DAYTON, Ohio – A Centerville, Ohio, man was sentenced in federal court here today to 72 months in prison for possessing a machine gun. The defendant used an uzi-style weapon during a YouTube video in which he threatens to commit a mass shooting at a California school.
The Court imposed an upward variance from the sentencing guidelines in the sentence imposed today against Alex Jaques, 23.
According to court documents, on Nov. 15, 2022, the FBI National Threat Operations Center received a tip about a video Jaques posted on YouTube.
In the video, Jaques uses multiple firearms to shoot a Chromebook computer and threatens to attack Washington Middle School in Salinas, California. The Chromebook has a Washington Middle School sticker affixed to it.
Before shooting the computer, Jaques stabs it multiple times with a screwdriver and uses a power drill on it. The video shows an uzi-style weapon being discharged in rapid succession and multiple shots fired from a rifle-style weapon.
Law enforcement communicated with school officials in Salinas, California, and discovered that Jaques had been a student at a school within the same county. Jaques says in the video that he plans to return to the area to “fill out my list of duties” and has kept “names and addresses of people who have wronged me.” Just before shooting the computer, Jaques says, “yeah okay so Washington Middle School you are next.”
Other videos on Jaques’s YouTube page depict the defendant driving while shooting a pistol at street signs.
Jaques also commented publicly on a YouTube video of family members of the mass school shooting in Parkland, Florida in which 17 people were killed. Jaques commented “Bullies families get their final day in court” and “I will do my own parkland.”
While executing a search warrant on Jaques’s residence, vehicle and person, FBI agents seized eight firearms, including an uzi-style weapon, hand grenades and other explosives equipment.
Jaques was arrested in November 2022. He pleaded guilty to a superseding bill of information in March 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorneys Christina Mahy and Nicholas Dingeldein are representing the United States in this case.
# # #
California Man Sentenced for Sex Trafficking and Related Offenses for Forcing Victim to Engage in Commercial Sex Across the CountryRead the Press Release
Gulfport, Miss. – A California man was sentenced yesterday for sex trafficking, conspiracy to commit sex trafficking and interstate transportation for purposes of prostitution.
Michael Deon Fulcher, 54, of Gardena, was sentenced to life in prison and a lifetime of supervised release after a jury found Fulcher guilty in January.
“This significant sentence imposed by the court reflects the severity of the defendant’s abuse and exploitation of the victim,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant traumatized the victim, robbed her of her dignity and deprived her of the choice and control essential to her personal autonomy by forcing her to engage in prostitution for his own profit. The Justice Department will vigorously prosecute human trafficking crimes to hold offenders accountable and to seek justice for survivors of these heinous crimes.”
“Human trafficking is not just a plot for Hollywood movies,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “It happens all over the country in a variety of ways, and even here in Mississippi as the tragic facts of this case show. The strength and resiliency of the victim in this case to escape the defendant and then report what happened will ensure that he never harms anyone else again. But this crime sadly still occurs all too often, and law enforcement needs your help to stop it. If you are a victim of human trafficking or believe that you may have witnessed it occurring, please call the National Human Trafficking Hotline at 1-888-373-7888.”
“This investigation exemplifies how human trafficking is not just a physical crime but is also conducted through emotional and psychological abuse,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “Sex trafficking has devastating short term and long-term consequences, and the FBI will continue to investigate traffickers and pursue justice for the victims.”
The evidence presented at trial demonstrated that Fulcher used sexual assault, threats of violence, isolation, control, psychological manipulation and emotional abuse to compel the victim to engage in commercial sex between April and June 2020. Fulcher lured the physically injured victim into his car in Las Vegas by making false promises to help her, but then brought her to his home where he sexually assaulted her.
Shortly afterwards, Fulcher brought the victim to California, where he acted in concert with a co-defendant, Jonzie Hamilton, to compel the victim to engage in commercial sex acts over the course of several weeks. Fulcher required the victim to follow his strict rules, threatened the victim with physical harm, confiscated her money and Social Security debit card and even had an unlicensed dentist pull out her teeth.
Fulcher also sent the victim and Hamilton across the country for the purpose of engaging in commercial sex, stopping in Colorado, New Mexico, Texas, Louisiana and eventually Mississippi where the victim ran away. While the victim was on the road, Fulcher required the victim to send him all of her earnings and continued his coercive scheme by threatening the victim with physical harm, controlling her access to her phone, isolating her from anyone she knew and refusing to allow her to receive much-needed medical treatment for an existing chronic illness.
Hamilton was previously sentenced on April 9 to 29 months in prison to be followed by five years of supervised release after pleading guilty to interstate transportation for prostitution.
The FBI Jackson Field Office, Gulfport Resident Agency investigated the case.
Trial Attorneys Kate Alexander and Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case, with the assistance of Assistant U.S. Attorney Andrea Jones for the Southern District of Mississippi.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
California Man Sentenced for Sex Trafficking and Related Offenses for Forcing Victim to Engage in Commercial Sex Across the CountryRead the Press Release
A California man was sentenced yesterday for sex trafficking, conspiracy to commit sex trafficking and interstate transportation for purposes of prostitution.
Michael Deon Fulcher, 54, of Gardena, was sentenced to life in prison and a lifetime of supervised release after a jury found Fulcher guilty in January.
“This significant sentence imposed by the court reflects the severity of the defendant’s abuse and exploitation of the victim,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant traumatized the victim, robbed her of her dignity and deprived her of the choice and control essential to her personal autonomy by forcing her to engage in prostitution for his own profit. The Justice Department will vigorously prosecute human trafficking crimes to hold offenders accountable and to seek justice for survivors of these heinous crimes.”
“Human trafficking is not just a plot for Hollywood movies,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “It happens all over the country in a variety of ways, and even here in Mississippi as the tragic facts of this case show. The strength and resiliency of the victim in this case to escape the defendant and then report what happened will ensure that he never harms anyone else again. But this crime sadly still occurs all too often, and law enforcement needs your help to stop it. If you are a victim of human trafficking or believe that you may have witnessed it occurring, please call the National Human Trafficking Hotline at 1-888-373-7888.”
“This investigation exemplifies how human trafficking is not just a physical crime but is also conducted through emotional and psychological abuse,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “Sex trafficking has devastating short term and long-term consequences, and the FBI will continue to investigate traffickers and pursue justice for the victims.”
The evidence presented at trial demonstrated that Fulcher used sexual assault, threats of violence, isolation, control, psychological manipulation and emotional abuse to compel the victim to engage in commercial sex between April and June 2020. Fulcher lured the physically injured victim into his car in Las Vegas by making false promises to help her, but then brought her to his home where he sexually assaulted her.
Shortly afterwards, Fulcher brought the victim to California, where he acted in concert with a co-defendant, Jonzie Hamilton, to compel the victim to engage in commercial sex acts over the course of several weeks. Fulcher required the victim to follow his strict rules, threatened the victim with physical harm, confiscated her money and Social Security debit card and even had an unlicensed dentist pull out her teeth.
Fulcher also sent the victim and Hamilton across the country for the purpose of engaging in commercial sex, stopping in Colorado, New Mexico, Texas, Louisiana and eventually Mississippi where the victim ran away. While the victim was on the road, Fulcher required the victim to send him all of her earnings and continued his coercive scheme by threatening the victim with physical harm, controlling her access to her phone, isolating her from anyone she knew and refusing to allow her to receive much-needed medical treatment for an existing chronic illness.
Hamilton was previously sentenced on April 9 to 29 months in prison to be followed by five years of supervised release after pleading guilty to interstate transportation for prostitution.
The FBI Jackson Field Office, Gulfport Resident Agency investigated the case.
Trial Attorneys Kate Alexander and Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case, with the assistance of Assistant U.S. Attorney Andrea Jones for the Southern District of Mississippi.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Butte man sentenced to prison in large-scale meth, fentanyl ringRead the Press Release
MISSOULA — A Butte man who admitted to distributing multiple pounds of methamphetamine and tens of thousands of fentanyl pills as part of large-scale trafficking ring was sentenced today to three years and six months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Trevor Allen Handy, 27, pleaded guilty in September 2023 to conspiracy to distribute and possess with intent to distribute controlled substances.
U.S. District Judge Dana L. Christensen presided.
“Individuals like Mr. Handy continue to terrorize communities like Butte by transporting and mailing staggering quantities of illegal drugs and poisoning Montana citizens. I’m grateful to our federal, state, and local law enforcement partners for their cooperation in this investigation and hope this sentence serves as a warning to people who think they can profit from this reprehensible conduct,” U.S. Attorney Laslovich said.
In court documents, the government alleged that in June 2022, law enforcement in Utah stopped a vehicle that contained approximately four pounds of meth, one pound of heroin and 6,000 pills containing fentanyl. The driver told law enforcement he was transporting the drugs to Butte for distribution by a drug trafficking organization headed by co-defendant Juan Felipe Vidrio Fuentes, aka “Esco.” Law enforcement determined that the co-conspirators would transport meth and fentanyl by driving the drugs from California to Montana and by mailing the pills. Law enforcement arrested Handy in January 2023 after the drug trafficking organization sent him a package of approximately 3,000 fentanyl pills for distribution in Butte. Handy admitted that he had received multiple packages of drugs sent to his residence on behalf of the drug organization for distribution by its members. Handy also admitted he had traveled by vehicle to California to pick up multiple pounds of meth and thousands of fentanyl pills and driven them back to Butte for distribution for the drug organization.
After Handy’s arrest, law enforcement searched two Butte addresses occupied by members of the drug organization and located multiple pounds of meth, more than 200 grams of fentanyl, approximately $17,500 in cash and seven firearms. Investigators seized a total of approximately 18 pounds of meth, which is the equivalent of about 65,232 doses, and approximately 4.85 pounds of fentanyl. The total amount of meth and fentanyl that Handy flooded into Butte is much higher, based on his admissions to previously distributing multiple pounds and tens of thousands of fentanyl pills that were not seized.
Co-defendants Fuentes, 36, of Anaheim, California; James Andrew Stringari, 51, of Whitehall; and Janet Dean White, 57, of Butte, were found guilty of conspiracy to distribute and possess with intent to distribute controlled substances and possession with intent to distribute controlled substances on April 25 in a federal jury trial and are awaiting sentencing. Four other co-defendants, Martin Topete Garcia, 32, his brother, Johnathan Topete, 28, both of Mira Loma, California; Anthony Wayne Johnson II, 51, of Santa Ana, California; and Agatha Noriz Carranza, 34, of Whitehall, pleaded guilty earlier to charges and are awaiting sentencing.
Assistant U.S. Attorney Brian C. Lowney prosecuted the case. The Montana Division of Criminal Investigation, Southwest Montana Drug Task Force, Montana Highway Patrol, Jefferson County Sheriff’s Office, Missouri River Drug Task Force, U.S. Postal Inspection Service, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Utah Highway Patrol and Utah State Bureau of Investigations conducted the investigation.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
XXX
Browning man sentenced to more than 12 years in prison for sexual abuse, domestic assaultRead the Press Release
GREAT FALLS — A Browning who admitted sexually abusing a teenager and domestic abuse in two separate cases on the Blackfeet Indian Reservation was sentenced today to 12 years and six months in prison, to be followed by a lifetime of supervised release, U.S. Attorney Jesse Laslovich said today.
Merlyn Roger Lee Marceau, 41, pleaded guilty in November 2023 to aggravated sexual abuse and to domestic assault by habitual offender. A plea agreement reached in the cases calls for both matters to be sentenced at the same time and for the sentences in each case to run concurrent to each other.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that on June 27, 2023, Marceau forcefully sexually abused a 13-year-old, identified as Doe, in a shed at a residence. The government also alleged that on June 24, 2023, Marceau and a separate victim, identified as Jane Doe and with whom he had been in a romantic relationship, began arguing. Marceau assaulted Jane Doe by striking her repeatedly. Marceau disclosed the assault to the FBI in an unrelated interview. Marceau had two prior domestic assault convictions from Browning Tribal Court.
Assistant U.S. Attorney Kalah A. Paisley prosecuted the case. The FBI, Blackfeet Law Enforcement Services and Blackfeet Child Protective Services investigated the sexual abuse case, and the FBI and Blackfeet Law Enforcement Services investigated the domestic assault case.
XXX
Brookline Woman Charged with Embezzling More Than $650,000 from Medical PracticeRead the Press Release
BOSTON – A former office manager of a Brookline medical practice was charged today with embezzling over $650,000 from the business over several years.
Kathleen Libby, 40, of Brookline, was charged with one count of wire fraud.
According to the charging documents, Libby stole from the medical practice in a variety of ways, including by transferring funds from the practice to a personal PayPal account she established named “Medline Surgical Supplies.” In doing so, Libby allegedly created the false impression that transfers from the medical practice to the PayPal account were expenses the medical practice had incurred for supplies.
It is further alleged that Libby used the medical practice’s bank account to make payments toward purchases she had made at a variety of retailers, including Louis Vuitton, Bloomingdales, Best Buy, Target and travel-related websites. The charging documents also allege that Libby placed two of her relatives on the medical practice’s payroll and used its credit cards for her own personal benefit.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.