Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 15 March 2024
Virginia Business Owner Pleads Guilty to Tax Fraud for Failing to Pay Employees' Withheld TaxesRead the Press Release
A Virginia man pleaded guilty today to failing to pay over to the IRS the taxes withheld from his employees’ paychecks.
According to court documents and statements made in court, Rick Tariq Rahim owned and operated several businesses, including laser tag facilities and an Amazon reseller. From 2015 to 2021, Rahim did not pay to the IRS the taxes withheld from his employees’ paychecks or file the required quarterly employment tax returns reporting those withholdings.
Additionally, between October 2010 and October 2012, Rahim filed two personal income tax returns on which he reported owing substantial taxes but did not pay the taxes he reported were due. When the IRS attempted to collect the unpaid taxes, Rahim submitted a false Form 433-A, Collection Information Statement, which omitted valuable assets he owned, including a helicopter, 2006 Bentley, 2008 Lamborghini and real property in Great Falls, Virginia. Approximately two weeks later, Rahim transferred ownership of that Great Falls property to his wife. He also paid personal expenses from his business bank accounts, including more than $889,000 toward his mortgages and more than $669,000 to purchase or lease cars, including three different Lamborghinis. In addition, Rahim withdrew more than $1.1 million in cash in amounts less than $10,000 to avoid triggering currency transaction reports from the bank.
Rahim has not filed a personal income tax return since 2012 despite earning more than $34 million in gross income.
In total, Rahim has caused a loss to the IRS of at least $1,844,489. His sentencing is scheduled for June 25.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys William Montague and Ashley Stein of the Justice Department’s Tax Division and Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia are prosecuting the case.
Two Vancouver, Washington men arrested with pound quantities of fentanyl and methamphetamine following undercover investigationRead the Press Release
Tacoma –A year-long undercover drug investigation led to a major drug seizure and two Vancouver, Washington arrests this week, announced U.S. Attorney Tessa M. Gorman. Juan Onofre Flores Carrillo, 48, and Jesus Daniel Valenzuela Ayala, 23, will make their initial appearance today in U.S. District Court in Tacoma charged with conspiracy to distribute controlled substances.
According to the criminal complaint, Flores Carrillo aka “El Cholo,” was identified in early 2023 as a significant fentanyl pill dealer in southwest Washington. Working with confidential informants, law enforcement made a series of significant drug buys from Flores Carrillo. In one instance Flores Carrillo sold an informant 3,000 fentanyl pills on another occasion he sold the informant a kilo of crystal methamphetamine. Twice Flores Carrillo sold high powered firearms.
In January and February 2024, law enforcement worked to identify the stash house where Flores Carrillo kept his drugs. Flores Carrillo continued to make drug sales of heroin as well as fentanyl. On March 13, 2024, Flores Carrillo agreed to sell 10,000 fentanyl pills. Shortly after he turned over the drugs he was arrested. Law enforcement executed the court authorized search warrant on the presumed stash house. Inside they found large amounts of drugs and an AK-47 style rifle with a grenade launcher attached.
The residence contained approximately seven pounds of fentanyl pills and 43 pounds of suspected methamphetamine. The AK-47 was wrapped as if for resale.
Valenzuela Ayala was the only occupant of the stash house and was arrested. Both men are citizens of Mexico who do not have legal status in the United States.
Conspiracy of distribute narcotics in the amounts in this case is punishable by a mandatory minimum ten years in prison and up to life in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI with assistance from the Vancouver Police Department, the Clark County Sheriff’s Office Special Investigation Unit, and U.S. Immigration and Customs Enforcement (ICE).
The case is being prosecuted by Assistant United States Attorneys Zachary Dillon and Max Shiner.
Two Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
PHOENIX, Ariz. – Clarizza Augustusa Jackson, 32, of Sacaton, was sentenced last week by Senior United States District Judge David G. Campbell to four years of probation. On June 28, 2023, Thomas Kee Montoya, Jr., 39, of Pinon, was sentenced by Judge Campbell to 100 months in prison, followed by three years of supervised release. Both defendants pleaded guilty to Possession with Intent to Distribute Methamphetamine.
In June 2022, the defendants were stopped by Hopi Law Enforcement Services (HLES) officers on the Hopi Reservation. Montoya was driving and Jackson was the front seat passenger. HLES officers located a drug ledger and 306 grams of pure methamphetamine in the car.
The Federal Bureau of Investigation - Phoenix, and Hopi Law Enforcement Services conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-08129-PCT-DGC
RELEASE NUMBER: 2024-032_Montoya# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Two Minneapolis Men Sentenced for Trafficking Narcotics Between California and MinnesotaRead the Press Release
ST. PAUL, Minn. – Two men have been sentenced to prison for possession of fentanyl and cocaine with intent to distribute, announced U.S. Attorney Andrew M. Luger.
According to the defendants’ plea agreements and court documents, beginning at least as early as January 2023, Cortez Ananias Williams, 24, was involved in trafficking controlled substances between California and Minnesota with his co-defendant and cousin Savontray Orlando Dwayne Collins, 23. On February 13, 2024, law enforcement intercepted Collins and Williams on I-35 near the Minnesota-Iowa border with 4.4 kilograms of “M30” fentanyl pills and nearly one kilogram of cocaine.
On June 28, 2023, Williams pleaded guilty to possession with the intent to distribute fentanyl and cocaine and was sentenced on December 14, 2023, in U.S. District Court by Judge Jerry W. Blackwell to 135 months in prison followed by five years of supervised release.
Collins pleaded guilty on October 4, 2023, to one count of possession with intent to distribute fentanyl and cocaine. He was sentenced yesterday to 120 months in prison followed by five years of supervised release by Judge Blackwell.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minnesota State Patrol, and the Hennepin County Violent Offender Task Force.
Assistant U.S. Attorney Ruth Shnider prosecuted the case.
Two Members of Violent Waterbury Gang Plead GuiltyRead the Press Release
DAYQUAIN SINISTERRA, also known as “Quan,” 26, and AHMED ALVES, also known as “Stones,” 26, both of Waterbury, pleaded guilty this week in Bridgeport federal court to offenses stemming from their participation in the 960 gang, a violent Waterbury street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Maureen T. Platt, State’s Attorney for the Waterbury Judicial District; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; and Waterbury Police Chief Fernando C. Spagnolo.
According to court documents and statements made in court, in an effort to address drug trafficking and related violence in Waterbury, the FBI, ATF, and Waterbury Police have been investigating multiple Waterbury-based groups, including the 960 gang. On September 14, 2021, a federal grand jury in Hartford returned a 36-count indictment charging Sinisterra, Alves, and 14 other alleged 960 gang members with racketeering, narcotics trafficking, firearm possession, murder, attempted murder and assault, and obstruction of justice offenses.
On March 13, 2024, Sinisterra pleaded guilty to one count of racketeering conspiracy, six counts of attempted murder and assault with a dangerous weapon in aid of racketeering, and three counts of carrying and using a firearm during and in relation to a crime of violence.
Sinisterra specifically admitted that he and other 960 members were engaged in violent activity and conspired to shoot and murder members of rival gangs, including:
- On September 21, 2018, in retaliation for the murder of an associate, Sinisterra and other 960 members participated in drive-by shootings of occupied residences on Lounsbury Street and Scott Road in Waterbury.
- On October 6, 2018, in a drive-by shooting, Sinisterra and other gang members attempted to murder individuals believed to be members of a rival gang, which resulted in gunshot wounds to an individual.
- On October 11, 2018, in an effort to murder rival gang members, Sinisterra and other gang members participated in a drive-by shooting that resulted in the death of an innocent bystander, 30-year-old Fransua Guzman, and the paralysis of a second victim.
- On November 1, 2018, Sinisterra shot a rival gang member.
- On November 18, 2018, Sinisterra and other gang members participated in a drive-by shooting of rival gang members, which resulted in gunshot wounds to two individuals.
Sinisterra is scheduled to be sentenced by U.S. District Judge Kari A. Dooley on June 17, 2024. If Judge Dooley accepts the terms of a binding plea agreement, Sinisterra will be sentenced to 35 years of imprisonment.
Sinisterra has been detained since his arrest on November 21, 2018.
On March 12, 2024, Alves pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances, and one count of being an accessory after the fact. Alves admitted that he trafficked drugs in furtherance of the 960 enterprise. He also admitted that, after the gang-related shooting that occurred on November 18, 2018, Alves picked up 960 members who participated in the shooting using a stolen car, and drove them to a 960 member’s residence where they stashed firearms. Later, 960 members drove the stolen car and left it in Meriden, and Alves again picked them up.
Alves was arrested on September 16, 2021. He is scheduled to be sentenced by Judge Dooley on June 13, at which time he faces a maximum term of imprisonment of 35 years.
Alves is released on a $100,000 bond pending sentencing.
This investigation is being conducted by the FBI’s Northern Connecticut Gang Task Force, ATF, and Waterbury Police Department, with the assistance of the Watertown Police Department, New Milford Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone, John T. Pierpont, Jr. and Natasha M. Freismuth, and Supervisory Assistant State’s Attorney Don E. Therkildesen, Jr. and Deputy Assistant State’s Attorney Alexandra Arroyo of the Waterbury State’s Attorney’s Office, who have been cross-designated as Special Assistant U.S. Attorneys in this matter.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Former Pittsburgh Residents Plead Guilty in Rent-A-Vet Construction Fraud SchemeRead the Press Release
PITTSBURGH, Pa.- Two residents of Myrtle Beach, South Carolina, pleaded guilty in federal court to charges of executing a major fraud scheme against the United States, United States Attorney Eric G. Olshan announced today.
Edward DiGorio Jr., 65, and Edward Kessler, 68, each pleaded guilty to two counts before United States District Judge William S. Stickman IV. Both DiGorio and Kessler formerly resided in Pittsburgh, Pennsylvania.
In connection with the guilty plea, the court was advised that DiGorio and Kessler were the owners of two construction companies, ADDVETCO, Inc., and Hi-Def Contracting, Inc., operating in Pittsburgh, Pennsylvania, and formed for the purpose of bidding on and acquiring “set-aside” contracts issued by the United States Department of Veterans Affairs (VA) to small businesses owned and operated by service-disabled veterans of the U.S. military and pre-certified by the VA as Service-Disabled Veteran-Owned Businesses (SDVOBs). Neither DiGorio nor Kessler had served in the military, nor were they service-disabled. In a classic “Rent-A-Vet” scheme, DiGorio and Kessler paid service-disabled veterans to falsely represent themselves as the primary owners and operators of ADDVETCO and Hi-Def, and to falsely attest to ownership of the companies on critical documents submitted to the VA as part of the SDVOB certification process. During the period 2007 to 2018, ADDVETCO and Hi-Def were awarded 67 contracts that were intended for SDVOBs, 50 of which were valued at $1 million or more. All said contracts were performed in full by ADDVETCO and Hi-Def. The two charges to which DiGorio and Kessler pleaded guilty relate to the two most recent contracts awarded to the companies, for which the defendants received more than $400,000 in profits.
Judge Stickman scheduled sentencing for both defendants for July 11, 2024. The law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $1 million, or both, at each count. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and U.S. Department of Veterans Affairs Office of Inspector General conducted the investigation that led to the prosecution of DiGorio and Kessler.
Two Defendants Convicted at Trial for Participating in Cryptocurrency Ponzi Scheme “IcomTech”Read the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict yesterday against DAVID BREND and GUSTAVO RODRIGUEZ on one count of conspiracy to commit wire fraud in connection with BREND’s and RODRIGUEZ’s participation in a large-scale cryptocurrency Ponzi scheme known as IcomTech. U.S. District Judge Jennifer L. Rochon presided over the two-week trial.
U.S. Attorney Damian Williams said: “IcomTech defrauded tens of thousands of people out of tens of millions of dollars. It offered the false promise of easy riches based on supposed cryptocurrency investments but wound up cheating working people out of their hard-earned money. Yesterday, David Brend and Gustavo Rodriguez – two individuals who were central to the IcomTech Ponzi scheme – were swiftly convicted by a unanimous jury for their role in defrauding IcomTech investors. This verdict should send a clear message to those who engage in Ponzi schemes — whether in the cryptocurrency markets or elsewhere — that this Office is committed to rooting out fraud in all its forms and holding those responsible to full account. Now, as a result of their lies to hardworking people, Brend and Rodriguez stand convicted of a federal crime and face substantial time in prison.”
According to the Indictment, public filings, public court proceedings, and the evidence presented at trial:
IcomTech launched in mid-2018, when co-defendant DAVID CARMONA hired RODRIGUEZ to build a website for the scheme. IcomTech was a purported cryptocurrency mining and trading company that promised to earn its victim-investors profits in exchange for their purchase of purported cryptocurrency-related investment products. CARMONA, BREND, and the other promoters of IcomTech falsely promised their respective victims, among other things, that profits from the companies’ cryptocurrency trading and mining would result in guaranteed daily returns on victims’ investments. In reality, IcomTech did not engage in cryptocurrency trading or mining for its Investors, and BREND and IcomTech’s other promoters used victim funds to pay other victims, to further promote the schemes, and to enrich themselves.
IcomTech promoters, including BREND, traveled throughout the United States and abroad, where they hosted lavish expos and small community presentations aimed at luring victims to invest in the schemes, including in the Southern District of New York. During larger-scale events, IcomTech promoters presented on purported investment products and the compensation plan, encouraged victims to invest as a means of achieving financial freedom, and boasted about the amount of money they were earning. IcomTech promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech. The atmosphere of these events was festive and designed to generate excitement about the schemes.
Victims invested in IcomTech by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency. Following a victim’s investment, a victim would be provided with access to an online portal where the victim could monitor the purported returns. While victims saw “profits” accumulate on the online portal, most victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments. By contrast, IcomTech’s promoters, including BREND, siphoned off, in some cases, hundreds of thousands of dollars in victim funds, which they withdrew as cash, spent on IcomTech promotional expenses, and used for personal expenditures such as luxury goods and real estate.
RODRIGUEZ worked with CARMONA to run IcomTech’s website and online portal, where victims were provided with personal accounts. CARMONA and RODRIGUEZ discussed how to structure IcomTech’s compensation plan and investment products; for example, RODRIGUEZ advised CARMONA on where CARMONA should set the purported daily returns on victims’ investment packages and on the size of the investment packages that CARMONA should offer for sale.
At least as early as August 2018, victims who attempted to withdraw money from their online portal accounts had difficulty doing so, and when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all. Despite these complaints, IcomTech promoters, including BREND, continued to promote IcomTech and accept victims’ investments, and RODRIGUEZ continued to maintain the website. As complaints mounted, IcomTech began offering proprietary crypto-tokens for sale as a means of injecting liquidity into IcomTech. Promoters of the schemes claimed that these tokens, known as “Icoms,” would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services. This was false. In reality, “Icoms” were essentially worthless and resulted in further financial loss to victims. By in or about the end of 2019, IcomTech stopped making payments to victims, and IcomTech collapsed.
* * *
BREND, 49, of Tampa, Florida, and RODRIGUEZ, 47, of North Hollywood, California, were each convicted of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge. BREND is scheduled to be sentenced by Judge Rochon on June 27, 2024, at 10:00 a.m., and RODRIGUEZ is scheduled to be sentenced by Judge Rochon on June 28, 2024, at 10:00 a.m.
Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force. Mr. Williams also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance.
If you believe you are a victim of the IcomTech fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator is available here.
The case is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorneys Michael D. Maimin, T. Josiah Pertz, Benjamin A. Gianforti, and Cecilia E. Vogel are in charge of the prosecution.
Two Bellingham, Washington transnational drug dealers sentenced to prisonRead the Press Release
Seattle – Two members of a transnational drug trafficking organization were sentenced to federal prison today for arranging the sale of more than 75,000 fentanyl pills, announced U.S. Attorney Tessa M. Gorman. Juan Manuel Lugo Enriquez, 21, and a citizen of Mexico, sold 2,000 fentanyl pills to an undercover agent near Bellingham. Then, Lugo Enriquez and Guillermo Vieyra Salas, 24, also a citizen of Mexico, arranged a second deal involving 75,000 pills. U.S. District Judge Ricardo S. Martinez sentenced Lugo Enriquez to 38 months and Vieyra Salas to 48 months in prison. Judge Martinez found troubling the large amount of fentanyl at issue here, particularly because fentanyl has become “a leading cause of death over the last couple of years.”
“Federal law enforcement is keenly focused on getting as much fentanyl as possible off our streets,” said U.S. Attorney Gorman. “Seizing more than 75,000 pills will save lives.”
According to records filed in the case, the case began with a tip that a Seattle-based member of the drug trafficking organization, later identified as Lugo Enriquez, was bringing bulk quantities of fentanyl pills into Western Washington from Mexico. Defendant Vieyra Salas was already on law enforcement radar, charged with a drive-by shooting where he fired 27 rounds from a car he was driving while carrying cocaine. He also has a pending cocaine trafficking charge in Skagit County.
Homeland Security Investigations undercover agents quickly set up drug deals – first for 2,000 pills with Lugo Enriquez and then for a large order of 75,000 pills with Lugo Enriquez, Vieyra Salas, and a third defendant. As Lugo Enriquez and Vieyra Salas waited for the third defendant to deliver the drugs, Vieyra Salas offered to sell the undercover agents more pills.
The third defendant arrived at a separate meeting place to deliver the pills and was arrested. Lugo Enriquez and Vieyra Salas were arrested over the following days.
The defendant who delivered the pills, Jaime Alonso Hernandez-Hernandez, 41, is scheduled for sentencing on June 7, 2024.
The case was investigated by Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorney Yunah Chung
Traffic Stop Leads to Guilty Plea to Fentanyl and Firearm Possession Charges for Bangor ManRead the Press Release
BANGOR, Maine: A Bangor man pleaded guilty today in U.S. District Court in Bangor to being a prohibited person in possession of a firearm and ammunition and to possessing controlled substances with the intent to distribute them.
According to court records, in October of 2023, Bangor police officers encountered Andrew Blais, 37, during a traffic stop and identified an active warrant for his arrest. Officers observed drug paraphernalia in open view in the vehicle and recovered bundles of cash and a loaded handgun on Blais’ person. A further search at the Penobscot County Jail revealed 38 individual bags containing fentanyl concealed underneath his clothing. Blais was prohibited from possessing a firearm or ammunition due to a prior felony drug trafficking conviction.
Blais faces up to 20 years in prison, a fine up to $1 million and at least three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bangor Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Drug Enforcement Administration investigated the case.
###
Three Sentenced to Federal Prison for Klamath Basin Drug TraffickingRead the Press Release
MEDFORD, Ore.—In separate criminal cases, three southern Oregon drug traffickers, including the leader of a Klamath Falls, Oregon, drug trafficking organization, were sentenced to federal prison Thursday following investigations by the Basin Interagency Narcotics Enforcement Team (BINET), announced the U.S. Attorney’s Office for the District of Oregon.
Juan Jessie Martinez-Gil, 59, a former resident of Reno, Nevada, was sentenced to 87 months in federal prison and five years’ supervised release;
Blake Anthony Fulleton, 35, a resident of Klamath Falls, was sentenced to 51 months in federal prison and three years’ supervised release; and
Miguel Espana, 31, also of Klamath Falls, was sentenced to 84 months in federal prison and five years’ supervised release.
U.S. v. Martinez-Gil
According to court documents, between August 1, 2019, and September 2, 2021, Martinez-Gil and various associates conspired with one another to traffic large quantities of methamphetamine and fentanyl, in the form of counterfeit Oxycodone pills, purchased in Southern California to Southern Oregon. Martinez-Gil and others sold these drugs to distributors in Klamath and Lake counties for further distribution and sale.
On September 2, 2021, Martinez-Gil and several associates were arrested as part of a coordinated law enforcement operation and federal search warrants were executed on five locations and two vehicles connected to the group. Law enforcement located and seized more than seventeen pounds of methamphetamine and several hundred counterfeit Oxycodone pills.
On September 30, 2021, a federal grand jury in Medford returned an indictment charging Martinez-Gil and his associates with conspiring to distribute and possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine and fentanyl, distribution of methamphetamine and fentanyl, and attempted distribution of methamphetamine.
On November 1, 2023, Martinez-Gil pleaded guilty to conspiring to distribute and possess with intent to distribute methamphetamine and fentanyl.
U.S. v. Fulleton
In September 2021, detectives from the Klamath Falls Police Department observed Fulleton, who they knew had multiple active felony warrants, depart a known drug house in Klamath Falls. After fleeing the detectives and crashing his vehicle into a power pole, Fulleton led the officers on a short foot pursuit and was arrested. At the time of his arrest, Fulleton possessed a small quantity of methamphetamine on his person. Detectives searched his vehicle and located a loaded pistol, an additional 480 grams of methamphetamine, a small quantity of heroin, and various drug packaging materials.
On February 3, 2022, a federal grand jury in Medford returned an indictment charging Fulleton with possessing with intent to distribute methamphetamine, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm and ammunition as a convicted felon. On December 11, 2023, Fulleton pleaded guilty to illegally possessing a firearm.
U.S. v. Espana
In 2019, Klamath Falls area law enforcement began investigating Espana for drug trafficking and obtained information that he possessed approximately two pounds of methamphetamine in his vehicle. On October 22, 2019, investigators located Espana sitting in the passenger seat of his vehicle parked near a Klamath Falls motel and later stopped his vehicle when it departed the lot. Investigators searched the vehicle and located approximately 717 grams of methamphetamine, a digital scale, drug ledger, and $758 in cash.
On February 3, 2021, a federal grand jury returned an indictment charging Espana with one count of possessing with intent to distribute methamphetamine and, on October 16, 2023, he pleaded guilty to the single charge.
All three cases were investigated by BINET. On Martinez-Gil and Espana, BINET investigators were assisted by the U.S. Drug Enforcement Administration (DEA). On Fulleton, they were assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Martinez-Gil and Espana were prosecuted by Marco A. Boccato, Assistant U.S. Attorney for the District of Oregon. Fulleton was prosecuted Assistant U.S. Attorney John C. Brassell, also of the District of Oregon.
BINET is a Klamath Falls area narcotics task force comprised of Oregon State Police, the Klamath Falls Police Department, and Oregon National Guard.
Tahlequah Resident Sentenced for Sexual Abuse of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Timythy Jordyn Summers, age 19, of Tahlequah, Oklahoma, was sentenced to 30 months in prison for one count of Sexual Abuse of a Minor in Indian Country.
The charges arose from investigations by the Tahlequah Police Department, the Cherokee Nation Marshal Service, and the Federal Bureau of Investigation.
On April 11, 2023, Summers pleaded guilty to a single count of Sexual Abuse of a Minor in Indian Country. According to investigators, Summers engaged in sexually explicit conversations with a minor on Instagram and arranged to meet at a local park. Summers was caught by law enforcement leaving a public restroom at the park after sexually abusing the minor. The crime occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The Honorable David C. Joseph, U.S. District Judge in the United States District Court for the Western District of Louisiana, sitting by assignment, presided over the hearing in Muskogee. Summers was remanded into the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Morgan Muzljakovich represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the tab “resources”.
We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement. You can file a report on the National Center for Missing & Exploited Children (NCMEC)'s website at www.cybertipline.com, call 1-800-843-5678, contact the FBI at 1-800-CALL-FBI (1-800-225-5324), or call 877-4-HSI TIP.
Stoughton Man Pleads Guilty to Brank and Wire Fraud Scheme Related to COVID-19 PandemicRead the Press Release
BOSTON – A Stoughton pleaded guilty yesterday to fraudulently obtaining COVID-19-related small business loans from several financial institutions.
Patrick Joseph, 41, pleaded guilty to one count each of wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for June 20, 2024. Joseph was indicted by a federal grand jury in November 2021.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary loan program directed at small businesses called the Paycheck Protection Program (PPP). Independent contractors were eligible to apply for PPP loans, which were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If an independent contractor used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
Joseph participated in a scheme that obtained over $220,000 in proceeds through fraudulent PPP loan applications submitted between April 2020 and April 2021. Joseph and co-conspirator Yves Montima submitted 12 fraudulent PPP loan applications, both in their own names and on behalf of others, at several financial institutions. The fraudulent loan applications claimed independent contractor income that did not exist and substantiated that non-existent income through falsified tax documents. In addition to receiving the proceeds from the loans submitted in their own names, Joseph and Montima received kickback payments from individuals on whose behalf they submitted fraudulent PPP loan applications.
In November 2021, Montima pleaded guilty to one count of bank fraud conspiracy and was sentenced in September 2023.
The charge of bank fraud and conspiracy to commit bank fraud provide for a sentence of up to 30 years in prison, up to five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. Valuable assistance in the investigation was provided by the U.S. Postal Service, Massachusetts State Police and the Boston Police Department. Assistant U.S. Attorney Christopher J. Markham, of the Financial & Cyber Fraud Unit, and Assistant U.S. Attorney Philip C. Cheng, of the Narcotics & Money Laundering Unit, are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.
St. Paul Felon Sentenced to 70 Months in Prison for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A St. Paul man has been sentenced to 70 months in prison followed by three years of supervised release for the possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on July 15, 2021, St. Paul police officers responded to a report of shots fired near Rice and Winnipeg Streets in St. Paul. That same night, law enforcement recovered surveillance video of the shooting incident and recognized Ember Shawndale White, 23, holding a firearm and running away from the incident and into a white Volkswagen Jetta. On July 23, 2021, law enforcement arrested White in the same Jetta, in possession of a Beretta APX 9x19mm pistol. Because White has multiple prior felony convictions in Ramsey, Hennepin, and Dakota Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
White pleaded guilty on November 13, 2023, to one count of possessing a firearm as a felon. He was sentenced today in U.S. District Court by Judge Joan N. Ericksen.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department.
Assistant U.S. Attorney Matthew S. Ebert prosecuted the case.
South Bend Man Sentenced to 70 Months in PrisonRead the Press Release
SOUTH BEND – Charlie Easton, 29 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Easton was sentenced to 70 months in prison followed by 2 years of supervised release.
According to documents in the case, in April 2023, South Bend law enforcement responded to a notification of shots being fired from an automatic weapon. Officers encountered Easton who led them on a high-speed car chase as he fled from the scene. When Easton reached a dead end on the road, he took off on foot Officers recovered a firearm that Easton dropped as he ran. The firearm contained an extended magazine and an auto sear, which device turned the firearm into a fully automatic machinegun. Easton has a prior felony conviction, and as such, is prohibited from possessing the firearm in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the South Bend Police Department. The case was prosecuted by Assistant United States Attorney Katelan McKenzie Doyle.
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.
South Bend Man Sentenced to 24 Months in PrisonRead the Press Release
SOUTH BEND – Andrew Majors, 46 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to two counts of making a threat through interstate communications, announced United States Attorney Clifford D. Johnson.
Majors was sentenced to 24 months in prison followed by 2 years of supervised release.
According to documents in the case, in June 2022 Majors called the Juvenile Justice Center in South Bend and reported that bombs were around the building. Several hours later, he called again to say that he was going to kill a person at the facility. Ultimately, no bombs were discovered and no one was injured.
This case was investigated by the Federal Bureau of Investigation with assistance from the South Bend Police Department. The case was prosecuted by Assistant United States Attorney Jerome W. McKeever.
Second Madison County Man Sentenced for Distributing Methamphetamine and Fentanyl that Resulted in an Overdose DeathRead the Press Release
LEXINGTON, Ky. – A Richmond, Ky., man Kris Allen Anglin, 36, was sentenced on Friday, by Chief U.S. District Judge Danny Reeves, to 262 months in prison, for conspiracy to distribute 500 grams or more of methamphetamine and fentanyl; distribution of fentanyl, that resulted in death; and possession of a firearm by a convicted felon. He is the second defendant convicted for his role in the drug conspiracy and overdose death. Gregory Scott Sizemore, 36, of McKee, Ky., was previously sentenced to 389 months.
According to his plea agreement, from December 2020 until January 2021, Anglin conspired with Sizemore to distribute quantities of methamphetamine and fentanyl, in Madison County. On January 11, 2021, a victim fatally overdosed due to the ingestion of fentanyl distributed by Anglin and Sizemore. Specifically, law enforcement discovered that Sizemore had agreed to distribute a fentanyl-methamphetamine mixture to the victim, at his request. Electronic communications located on the victim’s phone confirmed that the substance being provided was a mixture of methamphetamine and fentanyl, that the victim had funds to buy it (by texting a photograph of the purchase money to Sizemore), that Anglin would deliver the drug on Sizemore’s behalf, and that the transaction had taken place. Approximately four hours later, the victim was found deceased.
Within a few hours of the victim being found, law enforcement located Anglin, with three baggies containing fentanyl, cocaine, and/or methamphetamine, as well as the $20 bill used by the victim to purchase the methamphetamine-fentanyl mixture. Law enforcement also found U.S. currency, three digital scales, baggies, other drug trafficking paraphernalia, and three firearms. Anglin admitted he had multiple prior felony convictions, including convictions for Possession of a Controlled Substance First Degree, and was prohibited from possessing a firearm.
Sizemore was the supplier for the methamphetamine-fentanyl mixture that caused the overdose death. After the victim was found deceased, law enforcement obtained a search warrant for a hotel room occupied by Sizemore. There, officers located 380 grams of methamphetamine in a duffel bag. At his arrest, Sizemore had an additional 368 grams of methamphetamine and 3 grams of fentanyl.
Under federal law, Anglin and Sizemore must serve 85 percent of their prison sentences. Upon their release from prison, they will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge, DEA, Louisville Field Division; Sheriff Mike Coyle, Madison County Sheriff’s Office, and Chief Rodney Richardson, Richmond Police Department, jointly announced the sentences.
The investigation was conducted by the DEA, the Madison County Sheriff’s Department, and the Richmond Police Department. Assistant U.S. Attorney Todd Bradbury is prosecuting the case on behalf of the United States.
— END —
Sauk Centre Man Pleads Guilty to Producing Child PornographyRead the Press Release
MINNEAPOLIS – A Sauk Centre man has pleaded guilty to coercing minors to produce sexually explicit images, announced United States Attorney Andrew M. Luger.
According to court documents, Shawn Norbert Kulzer, 32, began chatting with a minor victim on Snapchat on or about January 2, 2023. During the course of their conversation, Kulzer learned that the minor victim was under the age of 18, yet still pressured them to send nude photographs. In his plea agreement, Kulzer also admitted that he used and enticed a second minor victim to produce and send sexually explicit images over Snapchat.
Kulzer pleaded guilty yesterday in U.S. District Court before Judge Nancy E. Brasel.
This case is the result of an investigation led by the FBI, the Stearns County Sheriff’s Office, and the Sauk Centre Police Department. Based on the evidence obtained in this investigation, authorities believe there may be additional victims of the alleged conduct. Anyone with information about this matter is encouraged to call the FBI Minneapolis Division at 763-569-8000.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children in crimes involving child pornography, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Assistant U.S. Attorney Emily Polachek is prosecuting the case.
Salina Man Sentenced for Three Counts of Assault with a Dangerous WeaponRead the Press Release
Today, U.S. District Judge Gregory K. Frizzell sentenced David Olice Sitsler, III, for three counts of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. Sitsler, 36, was sentenced to 96 months, followed by 3 years of supervised release. Judge Frizzell further ordered Sitsler to pay $625 in restitution.
In February 2022, Sitsler was in an argument with his wife. She called a friend to pick her up. When she tried to leave, Sitsler shot at the car she was in, hitting one of the passengers.
Sitsler is a citizen of Cherokee Nation. He will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Mayes County Sheriff’s Department investigated the case. Assistant U.S. Attorney George Jiang 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Ringleader of Fentanyl Trafficking Conspiracy Sentenced to Life, Co-Conspirators Sentenced to a Total of More than 100 Years in Federal PrisonRead the Press Release
INDIANAPOLIS –Keith J. Jones, a/k/a Keybo, 57, of Indianapolis, Indiana, and Kevin M. Backstrom, 58, of Los Angeles California have been sentenced to prison following their 2023 trial convictions for their parts in an Indianapolis fentanyl, methamphetamine, and cocaine trafficking organization.
Jones was sentenced to life in federal prison after a federal jury convicted him of engaging in a continuing criminal enterprise, conspiracy to distribute controlled substances, conspiracy to launder monetary instruments, nine substantive drug trafficking counts, and two counts of possession of a firearm by a convicted felon.
Backstrom was sentenced to 30 years in federal prison after a federal jury convicted him of conspiracy to distribute controlled substances and conspiracy to launder monetary instruments.
According to court documents and evidence introduced at trial, Jones was the leader of a drug trafficking organization that distributed at least 300 pounds of methamphetamine, 20 kilograms of fentanyl, and 50 kilograms of cocaine in the Indianapolis area from September 20, 2020, through July 21, 2022. Backstrom was the Los Angeles-based drug supplier for the organization.
The investigation resulted in the indictment and conviction of twenty-two defendants for their roles in the organization’s drug trafficking activity.
Other noteworthy sentences include:
Defendant
Charge(s)
Sentence
Sean E. Devonish, 46, Indianapolis
Drug trafficking conspiracy
20 years’ imprisonment
Herman Wesley Tavorn, 42, of Indianapolis
fentanyl possession with intent to distribute
25 years’ imprisonment
Jamie L. Rayner, 34, Indianapolis
Drug trafficking conspiracy;
Money laundering conspiracy
15 years’ imprisonment
Marcus N. Miles, 49, Indianapolis
Drug trafficking conspiracy
13 years’ imprisonment
Anthony Moore, 37, of Indianapolis
Drug trafficking conspiracy;
fentanyl possession with intent to distribute;
methamphetamine possession with intent to distribute;
12.5 years’ imprisonment
Nicholas Ray, 33, Indianapolis
Cocaine possession with intent to distribute
135 months’ imprisonment
Steve L. Young, 30, Indianapolis
Drug trafficking conspiracy
125 months’ imprisonment
“Drug overdose deaths touch every Hoosier—our families, our friends, our children. These tragedies are overwhelmingly driven by trafficking of fentanyl and other deadly opioids,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Fentanyl is concealed in everything from fake pharmaceuticals to rainbow candy-colored pills, and even within other controlled substances like methamphetamine. If you are pushing this poison, take notice that our office is working every day with federal, state, and local law enforcement to reduce the supply of these deadly drugs and put you in federal prison, potentially for life.”
“The primary goal of law enforcement is to make our communities safer for all of us,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our partners to take the poison of drugs off the street and end the violent crime that comes with it.”
“Fentanyl and the other dangerous drugs trafficked by these individuals pose a grave threat to public safety,” said Justin Campbell, Special Agent in Charge, IRS:CI Chicago Field Office. “The sentencing of these individuals is evidence of the whole of government approach to safeguarding our communities from the scourge of illicit drugs. Through our collective efforts, IRS Criminal Investigation, along with our federal, state, and local law enforcement partners, will continue pooling our resources, expertise, and intelligence, to disrupt drug trafficking networks at every level—from production to distribution to the financial methods they use to launder their illicit proceeds.”
“DEA remains committed to working each and every day with our state and local partners and utilizing our resources to conduct the highest level of investigations and will continue to dismantle violent drug trafficking organizations. The fentanyl crisis plaguing our communities is real and effects Hoosiers and their families every day,” said Assistant Special Agent in Charge J. Michael Gannon. “When individuals like Mr. Jones and Mr. Backstrom deal multi-kilogram quantities of fentanyl, cocaine and multi hundred-pound quantities of methamphetamine, they must be held accountable for their actions. The life sentence of Mr. Jones and the 30-year sentence of Mr. Backstrom should serve as a warning to individuals dealing lethal drugs.”
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS Criminal Investigation, Indianapolis Metropolitan Drug Task Force, and the Hamilton-Boone County Drug Task Force investigated this case, with valuable assistance provided by the FBI, Indiana State Police, Beech Grove Police Department, Lawrence Police Department. This case is part of the Indiana High Intensity Drug Trafficking Areas (HIDTA) program.
U.S. Attorney Myers thanked Assistant United States Attorneys Brad Blackington and Kelsey L. Massa, who prosecuted this case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
###
Richland Physician, Health Care Staffing Company Agree to Pay $700,000 to Resolve False Claims Act Liability Arising from Telemedicine SchemeRead the Press Release
Richland, WA – Physician Edward William Salko, D.O., formerly of Richland, Washington, and Jackson & Coker LocumTenens, LLC (JCLT) agreed to pay $700,000 to resolve allegations that they participated in a kick-back scheme to bill Medicare for medically unnecessary durable medical equipment (DME) and diagnostic laboratory testing announced Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington.
Medicare provides health insurance to elderly and disabled United States citizens. Medicare pays for covered health services, including DME and genetic laboratory testing, under certain conditions. In order for DME and genetic laboratory testing to be covered under Medicare, the DME or laboratory test must be ordered by a physician who is treating the beneficiary for a specific medical problem, and must be used as part of the course of treatment for that specific medical problem.
According to court documents, JCLT is a healthcare staffing company that sources physicians and other medical professionals for clients. Between April and September 2021, Dr. Salko was retained through JCLT to provide contracted telemedicine services for a company known as Nationwide Health Advocates (Nationwide). Nationwide employed telemarketing companies to target and contact Medicare beneficiaries, and to speak with them about obtaining DME or laboratory testing at no cost to the beneficiaries. The telemarketers obtained personal information from the beneficiary and used it to generate a physician order for the DME or laboratory test, and supporting documentation that made it appear as though the physician was treating the beneficiary for a specific medical problem and ordering the DME or test as part of the course of that treatment. Nationwide then provided the physician order and supporting documentation electronically to Dr. Salko, who electronically signed the orders, after which they were billed to Medicare. Nationwide then paid JCLT, and JCLT paid Dr. Salko, for each order that he reviewed, nearly all of which he approved. Dr. Salko was not treating, and never even spoke to, any of the beneficiaries for whom he placed orders through Nationwide.
In September 2023, David Santana, the former owner and president of Nationwide, agreed to plead guilty to felony health care fraud conspiracy charges brought in the District of Massachusetts, in connection with Santana and Nationwide’s participation in the health care fraud scheme and conspiracy to fraudulently bill Medicare for DME and genetic testing services. In the Plea Agreement, Santana admitted to his and Nationwide’s participation in the scheme to fraudulently bill Medicare for false DME and laboratory testing physician orders issued by physicians who were not treating the purported beneficiaries.
“Physicians and health care staffing cannot ignore red flags about whether they are engaged in a Medicare fraud scheme,” said United States Attorney Waldref. “Schemes like that employed by Nationwide only work when doctors are willing to turn a blind eye and issue prescriptions and orders for patients that they are not treating. This settlement is a signal to physicians that they will be held accountable for participating in health care fraud schemes.”
“Providers and entities who exploit Medicare through fraudulent telemedicine schemes violate the trust of enrollees and waste valuable taxpayer dollars,” said Steven J. Ryan, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “This settlement demonstrates HHS-OIG’s unwavering commitment to root out and hold accountable those who put profit and personal gain ahead of the provision of legitimate medical services.”
According to the Settlement Agreement, JCLT cooperated fully with the United States’ investigation, and has taken significant remedial actions designed to improve its legal and compliance efforts and internal controls related to placing providers with telemedicine clients.
“I credit JCLT with stepping up, taking responsibility, and taking steps to prevent occurrences like these in the future,” continued United States Attorney Waldref. “Health care staffing companies like JCLT play an important role in ensuring that contract physician opportunities are appropriately vetted for legal compliance and possible fraud. I also commend the exceptional investigative work by, and our close partnership with, HHS-OIG, which made this result possible. We will continue working with health care providers, medical staffing companies, and our law enforcement partners to combat telemedicine and telemarketing fraud schemes that prey on elderly and disabled members of the community.”
The settlement was the result of an investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington and the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene, and Law Clerk Jacquelyn Nader, handled this matter on behalf of the United States.
The settlement agreement can be viewed here.Retired Boston Police Captain Found Guilty of Overtime Fraud SchemeRead the Press Release
BOSTON – A Retired Boston Police Captain was convicted today by a federal jury in Boston of orchestrating and participating in a long running overtime fraud scheme at the Boston Police Department’s (BPD) evidence warehouse that cost taxpayers hundreds of thousands of dollars in fraudulent overtime payments.
Richard Evans, 65, of Hanover, was convicted of conspiracy to commit theft concerning programs receiving federal funds; theft concerning programs receiving federal finds; conspiracy to commit wire fraud; and wire fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 20, 2024. Evans was arrested and charged in March 2021.
“Every resident of Massachusetts has a right to expect that those of us in law-enforcement will uphold the law. When an individual violates that expectation, it hits to the core. It undermines the public’s confidence in our profession,” said Acting United States Attorney Joshua S. Levy. “Mr. Evans’ greed is not a reflection of the Boston Police Department or the many men and women in law-enforcement who serve with integrity. However, when individuals put their greed before their public duty, they must be held accountable.”
“Today’s verdict proves no one is above the law. Captain Richard Evans shrugged off his sworn oath, broke the law to pad his paycheck, failed to lead by example and betrayed the citizens of Boston,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI will continue to root out police corruption on behalf of the vast majority of hard-working officers who carry out their duties honestly and honorably. We thank the Boston Police Department for its full cooperation with this investigation.”
From May 2012 to March 2016 Evans was the commander of BPD’s Evidence Control Unit (ECU), where he was responsible for, among other things, overseeing the storing, cataloging and retrieving evidence at the warehouse. A 37-year BPD veteran and one of highest-ranking officers in BPD, Evans was responsible for, among other things, approving ECU officers’ overtime, which was paid at 1.5 times their regular hourly pay.
Beginning virtually as soon as Evans took command of the ECU, Evans submitted and approved overtime slips that grossly inflated the amount of time worked. Evans submitted hundreds of overtime slips for overtime hours he did not work. As a supervisor, Evans routinely approved overtime slips – certifying false overtime hours submitted by subordinates. The standard overtime shift was supposed to be performed from 4:00 to 8:00 p.m., Monday through Thursday. However, officers only worked about two hours of that shift. In the beginning the officers “split” the overtime shift – one half of the officers worked the 4-6 p.m. shift, the other half of the officers worked the 6-8 p.m. shift, but all of the officers claimed that to have worked the full four-hour shift from 4-8 p.m. By splitting the shift, Evans and officers were paid for twice as much as they actually worked. The split shifts also made it seem like everyone was in the warehouse for the full four-hour shift, thus hiding the overtime theft. Towards the end of Evans’ tenure, he and other officers stopped splitting the shift and consistently left two or three hours early, as shown in the warehouse alarm records, while still billing for a full four-hour shift.
Evidence presented at trial established that Evans misled his superior officers about the purge overtime scheme to cover up the fact that officers were inflating their overtime hours. Evans, himself, earned over $120,000 in overtime payments in his 3.5 years as commander of the ECU, on top of his base salary, which exceeded $200,000.
The charge of conspiracy to commit theft concerning programs receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $ 250,000. The charge of theft concerning programs receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charges of conspiracy to commit wire fraud; and wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy; SAC Cohen; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorneys Kunal Pasricha and Elysa Wan of the Criminal Division are prosecuting the case.
Repeat Sex Offender Sentenced to over 15 Years in Federal PrisonRead the Press Release
DETROIT – Matthew Mercer-Kinser, 37, was sentenced today to 15 years and 8 months in federal prison for his second federal child pornography offense since 2009, United States Attorney Dawn N. Ison announced today.
Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, joined Ison in the announcement.
United States District Judge Terrence G. Berg sentenced Mercer-Kinser after a jury convicted him of receiving child pornography. According to the evidence presented at trial, in June 2009, United States District Judge Robert H. Cleland sentenced Mercer-Kinser to serve 12½ years in federal custody for transporting child pornography. In July 2019, the Bureau of Prisons designated Mercer-Kinser to serve the final months of that sentence in a Detroit residential reentry center (RRC). While at the RRC, Mercer-Kinser sent numerous sexually explicit text messages to a minor relative. A concerned adult learned of these communications and reported Mercer-Kinser to the FBI. Execution of a search warrant for Mercer-Kinser’s smartphone revealed several images of child pornography and numerous disturbing communications demonstrating Mercer-Kinser’s continued, prolific sexual interest in children. When Mercer-Kinser testified in his own defense during trial, he admitted his sexual fetish for children.
“Our office will use every tool at our disposal to combat the sexual exploitation of children, to bring perpetrators to justice, and vindicate the rights of victims, “ said U.S. Attorney Ison.
“Preying on the innocence of children is disturbing and equally traumatizing,” said Cheyvoryea Gibson, Special Agent in charge of the FBI in Michigan. “A turning point, in this case, was a concerned and brave citizen reporting this exploitation to law enforcement. We, as a society, must stand up for the vulnerable and hold those who prey on innocent children accountable for their reprehensible actions. Our office will use every resource available to bring individuals who repeatedly prey on and victimize innocent children to justice.”
The case was investigated by special agents of the FBI and prosecuted by Assistant United States Attorneys Erin Shaw and Maggie Smith.
Queens Man Sentenced to 16 Months in Prison for Laundering Bitcoin and Operating Unlicensed Money Transmitting BusinessRead the Press Release
Mustafa Goklu, also known as “Mustangy,” was sentenced yesterday in federal court in Brooklyn by United States District Judge Pamela K. Chen to 16 months’ imprisonment for money laundering and operating an unlicensed money transmitting business as part of a scheme to launder Bitcoin that the defendant believed to be the proceeds of drug trafficking. Goklu was convicted of those charges after a jury trial in October 2022.
Breon Peace, United States Attorney for the Eastern District of New York, and Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
“Drug trafficking would be less pervasive and lucrative if money launderers like the defendant did not enable washing the illegal proceeds of the deadly trade,” stated United States Attorney Peace. “In this case, Goklu used an online peer-to-peer cryptocurrency exchange to advertise his cryptocurrency for cash exchange services. Facilitating the ability of drug traffickers to distribute narcotics in the United States is fully deserving of a prison sentence.”
“Technology may change the manner in which money laundering takes place; but not the motive,” said DEA Special Agent in Charge Frank Tarentino. “Money launderers' true nature is to conceal criminality and this sentence shines a light on Mustafa Goklu’s conviction. DEA is focused on bringing drug traffickers and those who support the distribution of poison through money laundering to justice. I commend the DEA NY Cyber Investigative Unit and our partners at the U.S. Attorney’s Office for the Eastern District of New York for their diligent work throughout this investigation.”
In July 2018, DEA Special Agents identified an advertisement posted on the website “localbitcoins.com” where an individual with the username “Mustangy” offered to purchase up to $99,999 worth of Bitcoins (BTC), a type of digital currency also known as cryptocurrency, and convert them into U.S. currency for a fee. Law enforcement agents later identified Goklu as the individual using the username Mustangy. On July 11, 2018, a DEA Special Agent acting in an undercover capacity (the “UC”) began exchanging encrypted text messages with Goklu to arrange in-person exchanges of BTC to U.S. currency. The UC and the defendant subsequently met and engaged in seven transactions or attempted exchanges of BTC to cash over a nine-month period, culminating in Goklu’s arrest in April 2019. The UC indicated to the defendant on multiple occasions that the source of the BTC the defendant was exchanging was narcotics trafficking and that as part of the UC’s business he sold oxycodone, Adderall, and marijuana. The transactions occurred in the defendant’s parked Mercedes-Benz, at a coffee shop in Sunnyside, Queens, and at locations in Manhattan. The amounts exchanged at each transaction ranged from approximately $5,000 to $50,000 for a total of $133,000. During each transaction, the UC transferred BTC to Goklu’s cryptocurrency wallet, after which the defendant retained a seven or eight percent commission fee and provided the UC with the remaining amount in cash. The evidence introduced at trial also showed that the defendant was engaged in similar illicit Bitcoin exchanges with multiple other individuals.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Gillian Kassner and Francisco J. Navarro are in charge of the prosecution with the assistance of Paralegal Specialist Bridget Donovan.
The Defendant:
MUSTAFA GOKLU (also known as “Mustangy”)
Age: 50
Sunnyside, QueensE.D.N.Y. Docket No. 19-CR-386 (PKC)
Providence Man Admits Role in Cocaine Trafficking Conspiracy, Plot to Kidnap a U.S. Postal WorkerRead the Press Release
PROVIDENCE, RI – A Providence man pleaded guilty in federal court on Thursday to a charge of conspiracy to possess 500 grams or more of cocaine with the intent to distribute, at the same time admitting to a federal judge that conspiracy members kidnapped a U.S. Postal Service (USPS) worker at gunpoint while in search of cocaine they claimed was missing from a delivered package, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, on June 8, 2021, Irving Medina participated in surveillance efforts so that co-conspirators could retrieve three packages containing cocaine that were mailed from Puerto Rico and were delivered or scheduled for delivery at addresses associated with his co-conspirator. The contents of those three packages were analyzed by a forensic chemist who determined that they contained a total of over 3 kilograms of cocaine.
In addition to admitting his role in the conspiracy to possess with intent to distribute cocaine, Irving Medina admitted that he willfully assisted his co-conspirators in conducting surveillance outside of a USPS post office on May 28, 2021. On that date, co-conspirators allegedly identified a USPS mailman that they wanted to abduct. Irving Medina admitted to subsequently assisting co-conspirators in conducting surveillance outside the USPS mailman’s home on May 29, 2021.
As part of the investigation, on August 31, 2021, law enforcement executed a court-authorized search warrant at Irving Medina’s residence, and seized numerous items associated with drug trafficking, including $800 in cash, fifty bags filled with powder that a forensic lab determined to be fentanyl, three bags filled with cocaine base, and a cutting agent called Manitol.
Medina is scheduled to be sentenced on June 13, 2024. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorneys Christine D. Lowell and Sandra R. Hebert.
The matter was investigated by the United States Postal Inspection Service, with the assistance of Pawtucket Police, Rhode Island State Police Violent Fugitive Task Force, Rhode Island State Police K-9 Unit, and the Rhode Island High Intensity Drug Trafficking Area Task Force.
###
- Pawtucket Man Sentenced to Federal Prison for Failing to Register as a Sex Offender
Mississippi Tax Preparer Sentenced to Prison in False Tax Return ConspiracyRead the Press Release
A Mississippi man was sentenced today to 70 months in prison for conspiring to prepare and file false tax returns for clients in Jackson, Mississippi, and for preparing false returns.
According to court documents and evidence presented in court, Christopher Randell worked at Sunbelt Tax Services and conspired with others to claim inflated tax refunds for clients by reporting false education credits, itemized deductions and business profits or losses on their clients’ tax returns. Over the years, Randell and his co-conspirators prepared thousands of fraudulent returns, causing over $3.5 million in tax loss to the IRS. A jury convicted Randell and his co-conspirators in November 2023.
In addition to his prison sentence, U.S. District Court Judge Daniel P. Jordan III for the Southern District of Mississippi ordered Randell to serve three years of supervised release, and to pay restitution to the United States, in an amount to be determined later by the Court.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Patrick Elwell, Zachary Cobb and Mary Frances Richardson of the Tax Division prosecuted the case.
Mississippi Tax Preparer Sentenced to Prison in False Tax Return ConspiracyRead the Press Release
WASHINGTON – A Mississippi man was sentenced today to 70 months in prison for conspiring to prepare and file false tax returns for clients in Jackson, Mississippi, and for preparing false returns.
According to court documents and evidence presented in court, Christopher Randell worked at Sunbelt Tax Services and conspired with others to claim inflated tax refunds for clients by reporting false education credits, itemized deductions and business profits or losses on their clients’ tax returns. Over the years, Randell and his co-conspirators prepared thousands of fraudulent returns, causing over $3.5 million in tax loss to the IRS. A jury convicted Randell and his co-conspirators in November 2023.
In addition to his prison sentence, U.S. District Court Judge Daniel P. Jordan III for the Southern District of Mississippi ordered Randell to serve three years of supervised release, and to pay restitution to the United States, in an amount to be determined later by the Court.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Patrick Elwell, Zachary Cobb and Mary Frances Richardson of the Tax Division prosecuted the case.
Man Who Possessed Pipe Bomb in Hospital Parking Garage Sentenced to Federal PrisonRead the Press Release
AUSTIN, Texas – A Jonestown man was sentenced in a federal court in Austin to 30 months in prison for possessing an unregistered destructive device, namely a pipe bomb, that detonated in a hospital parking garage.
According to court documents, Raymond Luke Garner, 39, parked his pickup truck in a parking garage at St. David’s Hospital in Austin on Aug. 9, 2023. A short time later, there was an explosion in the back of Garner’s truck. Investigators found the remains of a pipe bomb near the truck. They also found a quantity of a homemade high explosive, circuit boards/timers, electric matches, and other items.
While detained by police, Garner contacted another individual to ask that person to move a box out of Garner’s home. That box was later found to contain, among other things, a quantity of the high explosive, precursor chemicals, and electric matches. Searches at other locations revealed a recipe for the high explosive, remote control devices, and other components for destructive devices.
Garner pleaded guilty on Oct. 2, 2023.
“The law prohibits the possession of unregistered homemade pipe bombs for a good reason: they put the community at serious risk,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I appreciate the collaboration of our federal, state and local law enforcement partners in this investigation. Rest assured my office will hold accountable individuals who build and possess these devices in violation of the law.”
“Improvised explosive devices are illegal and extremely dangerous,” said Special Agent in Charge Mike Weddel for the Bureau of Alcohol, Tobacco, Firearms and Explosives Houston Division. “ATF is committed to investigating and holding accountable the persons responsible for explosives accidents involving the manufacture of illegal explosive devices which can result in serious injury, death, and extensive damage to property. This incident serves as a prime example of the successful collaboration between all our law enforcement partners.”
“Garner’s use of unregistered and unstable explosive material jeopardized the safety of individuals who may have been near his vehicle,” said Special Agent in Charge Aaron Tapp of the FBI's San Antonio Field Office. “We are grateful to our partners at the ATF, members of our Joint Terrorism Task Force, and the Austin and Cedar Park Police Departments, for their vigilant work to keep our communities safe."
The ATF and FBI’s Joint Terrorism Task Force led the investigation with valuable assistance from the Travis County Sheriff’s Office, Austin Police Department, Austin Fire Department, and Cedar Park Police Department.
Assistant U.S. Attorney G. Karthik Srinivasan prosecuted the case.
###
Luxury Jewelry Company Supervisor Arrested for Stealing, Selling Millions of Dollars Worth of Precious MetalsRead the Press Release
BOSTON – A manufacturing supervisor for a luxury jewelry company was arrested yesterday and charged with money laundering in connection with his alleged theft of gold, silver and platinum from the company over a period of more than three years.
Benjamin Preacher, 54, of North Attleboro, was charged by criminal complaint with one count of engaging in unlawful monetary transactions. Preacher was released on conditions following an initial appearance in federal court in Boston earlier today.
According to the charging documents, since 2018, Preacher worked fulltime in a supervisory position at a Rhode Island manufacturing facility operated by the company, which manufactures and sells luxury items, including jewelry made from gold, silver and platinum. It is alleged that Preacher used his position to steal precious metals from the company’s facility in Rhode Island and then sell the metals to various businesses in Massachusetts.
Specifically, from in or about March 2020 to March 2023, Preacher allegedly sold precious metals to a Canton-based metals dealer roughly one to two times per month – with sales to that dealer alone totaling more than $1 million. It is alleged that Preacher’s sales of stolen metals included $50,521 in 18-carat gold in March 2020; $21,821 in 18-carat gold, “Platinum scrap” and “Sterling” in April 2021; and $30,939 in platinum in January 2022.
It is further alleged that Preacher also sold more than $177,000 in stolen precious metals to a separate metals dealer in West Bridgewater between on or about May 16, 2023 and Nov. 16, 2023. This included gold sheets used by Preacher’s employer in a particular machine, which Preacher allegedly stole and sold, along with other gold scrap, for nearly $21,000.
Most recently, it is alleged that, approximately 30 minutes into his shift on March 1, 2024, Preacher was captured on company security cameras stealing a piece of white gold “flat stock,” measuring approximately an inch in diameter and approximately as thick as a quarter, valued at roughly $2,200.
Precious metal in scrap form were located and seized during a search of Preacher’s home on March 14, 2024.
The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the amount of the laundered funds. 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 Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Louisiana Man Previously Arrested for Assaulting Law Enforcement and Other Charges During January 6 Capitol Breach Indicted on Firearm and Ammunition ChargesRead the Press Release
A federal grand jury recently returned an indictment charging Edward L. Richmond, Jr., age 40, of Baton Rouge, Louisiana, with possession of a firearm and ammunition by a previously convicted felon, and possession of a firearm and ammunition by a person discharged from the Armed Forces under dishonorable conditions.
Richmond is currently in federal custody in Washington D.C. awaiting disposition of pending charges related to allegations of him participating in the January 6, 2021, attack on the U.S. Capitol. At a time and date to be determined, Richmond will be transferred to Baton Rouge for his initial appearance and arraignment on the Middle District Indictment.
According to the indictment, on January 22, 2024, Richmond is alleged to have possessed a Windham Weaponry, model WW-15, .223/5.56 mm caliber rifle and approximately 73 rounds of ammunition, knowing that he previously had been convicted of a felony (a crime punishable by imprisonment for a term exceeding one year) and knowing he had been discharged from the Armed Force, the United States Army, under dishonorable conditions.
This matter is being investigated by the Baton Rouge Office of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Lyman E. Thornton III.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Long Island Man Sentenced to 10 Years in Prison for Sprawling COVID-19 Loan FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Rami Saab, also known as “Rami Hasan,” was sentenced by United States District Judge Gary R. Brown to 10 years in prison for his role as the mastermind of a sprawling conspiracy to fraudulently obtain disaster relief loans amid the COVID-19 pandemic. As part of the sentence he is also required to pay restitution of approximately $9.6 million. Saab pleaded guilty in July 2023 to conspiracy to commit wire fraud, stemming from his operation of a yearlong scheme to defraud banks and the Small Business Association (SBA) of millions of dollars’ worth of small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL). A second defendant charged in the indictment remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), Erin Keegan, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Christopher Gust, Acting Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA) announced the sentence.
“This defendant used fraud and deceit on an extraordinary scale to exploit government programs designed to keep struggling small businesses afloat during an unprecedented public health crisis,” stated United States Attorney Peace. “Today’s sentence sends a strong message to all those who saw the public response to the COVID-19 pandemic as little more than a get-rich-quick scheme: this Office will find you and prosecute you to the fullest extent of the law.”
Mr. Peace expressed his appreciation to the Nassau County Police Department for their assistance on the case.
“Opportunists like Saab continue to victimize the American taxpayer by pulling from benefits they don’t legitimately qualify for just to satisfy their own greed. Saab manipulated the COVID-19 loan program so he could fill his pockets with nearly ten million dollars meant for those who suffered as a result of the pandemic. But now, thanks to strong law enforcement partnerships and an incredible prosecution team, Saab is not only going to spend years behind bars, but he is also required to pay millions in restitution,” said Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York.
“Rami Saab showed a blatant disregard for all legal — and moral — responsibility in the midst of an unprecedented crisis. COVID-19 relief fraud is far from a victimless crime,” said HSI New York acting Special Agent in Charge Erin Keegan. “The defendant not only stole from hardworking taxpayers, but took advantage of a federal program meant to truly help those experiencing tremendous financial difficulties due to the pandemic. Today’s sentencing is the result of outstanding coordination between our law enforcement partners to address COVID-19 related fraud.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who attempt to abuse the Coronavirus Aid, Relief, and Economic Security Act and its Paycheck Protection Program, which was created to assist legitimate business owners during the pandemic,” stated acting Special Agent in Charge Christopher Gust. “We appreciate the efforts of our law enforcement partners and the U.S. Attorney’s Office to ensure individuals engaged in criminal activity are held to account.”
As set forth in court filings, between May 2020 and May 2021, at the height of the COVID-19 pandemic, Saab and a network of co-conspirators fraudulently applied for more than $32 million in PPP and EIDL loans on behalf of shell corporations they controlled. Relying on false information and fabricated documentation supplied by Saab and his coconspirators, the SBA and private banks administrating the PPP and EIDL programs granted at least 20 such applications, resulting in the disbursement to Saab and his coconspirators of more than $9.6 million in emergency-relief funds intended for distressed small businesses. Using a web of more than 50 otherwise dormant bank accounts, Saab and his coconspirators laundered the fraud proceeds to conceal their true nature and source, before using the funds for their own self-enrichment, withdrawing large portions of the loan proceeds in cash, and transferring sums to associates overseas in Turkey and elsewhere.
PPP and EIDL provided qualifying small businesses with low-interest loans. The Coronavirus Aid, Relief and Economic Security (CARES) Act expanded EIDL to provide economic support to help offset the temporary loss of revenue experienced by businesses due to the COVID-19 pandemic. The EIDL payments did not have to be repaid.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Michael Maffei are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor is handling forfeiture matters in the case.
The Defendant:
RAMI SAAB, also known as “Rami Hasan”
Age: 44
Glen Cove, New YorkE.D.N.Y. Docket No. 22-CR-344 (S-1) (GRB)
Last Defendant Sentenced to More than 10 Years for Robbery of a Pharmaceutical Van Driver and Possession of a MachinegunRead the Press Release
WASHINGTON D.C. – Juwuan Edward Francis Champion, 24, of Bowie, Md., was sentenced to 121 months in prison today for his role in the felony armed robbery of a pharmaceutical van driver and possession of a machinegun, announced U.S. Attorney Matthew M. Graves, Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Washington Field Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
Champion, aka “Big Money,” pleaded guilty on December 19, 2023, to conspiracy to interfere with interstate commerce by robbery (known as conspiracy to commit a Hobbs Act robbery) and unlawful possession of a machine gun. In addition to the 10-years plus one-month prison sentence, U.S. District Judge Amit P. Mehta ordered Champion to serve three years of supervised release.
Court documents alleged that Champion was among four crew members participating in a drug trafficking operation in the Potomac Gardens neighborhood of Southeast Washington. The three other members included Fitzgerald Hunt, 24, of Washington, D.C., also known as “GMoney,” Joshua Johnson, 18, of Capitol Heights, Md., also known as “Lil Josh,” and Keyshawn Lavender, 20, of Washington, D.C., also known as “Key.” From January to October 2021, the crew members allegedly trafficked in Oxycodone, Alprazolam, and a variety of illegal narcotics.
In pleading guilty, Champion, Hunt, and Johnson admitted that on March 30, 2021, they conspired to rob a pharmaceutical delivery van driver outside a pharmacy in Waldorf, Md. The driver was placed in handcuffs and hit on the head with a firearm. Then the defendants drove the van back to Washington, D.C., with pharmaceuticals valued at over $95,000.
At 2:46 p.m. on March 30, 2021, MPD located the stolen van on the 1500 block of 19th Street, SE. At about 6 p.m. Prince George’s County police found discarded contents from the van, including numerous emptied bottles of oxycodone, in Bowie, Maryland. Fingerprints found on the contents matched Champion and his co-defendants, and other items recovered had Champion’s DNA. That same afternoon, Champion posted a photo on Instagram depicting an assortment of oxycodone pills on a plate. He also sent a flurry of direct-messages to a number of Instagram accounts touting that the pills were for sale in Potomac Gardens.
On October 6, 2021, at the residence where Champion was staying, police recovered a Ruger Five Seven 5.7x28mm caliber pistol with an obliterated serial number, loaded with 13 rounds of 5.7 caliber ammunition; a Glock 48, 9mm pistol loaded with 11 rounds; five Glock magazines; assorted ammunition inside a shoebox; approximately $37,280 in cash; and a “Big Money” jewelry pendant.
Law enforcement arrested Champion and his co-defendants on October 7, 2021.
Hunt was sentenced on September 29, 2023, to 108 months in prison. Johnson was sentenced as part of a global resolution to 60 months in prison in Charles County, Maryland, for the armed carjacking, running concurrently to a 12-month sentence in this jurisdiction for drug conspiracy. The final defendant, Lavender, was not alleged to have had a role in the robbery and was sentenced to 30 months in prison for his role in the drug conspiracy.
This case was investigated by the ATF Washington Field Office and the Metropolitan Police Department (MPD). Critical support was provided by the Charles County Md. Sheriff’s Office and Charles County State’s Attorney’s Office, and additional assistance was provided by the U.S. Marshals Service, the Prince George’s County, Md. Police Department, and Anne Arundel County, Md. Police Department.
The case was prosecuted by Assistant U.S. Attorneys Candice Wong and Solomon Eppel of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by former Special Assistant U.S. Attorney Allison McGuire.
Justice Department Secures Agreement with Connecticut Department of Correction to Protect Religious Rights in PrisonRead the Press Release
The Justice Department announced today that it has reached an agreement with the Connecticut Department of Correction (CDOC) that expands opportunities for group religious practice throughout the state prison system. The agreement resolves the department’s investigation of CDOC, pursuant to the Religious Land Use and Institutionalized Persons Act (RLUIPA).
Under the agreement, CDOC has adopted a new policy that expands access to group worship or other collective religious activities. Under the prior policy, only a chaplain or approved outside volunteer of the same faith as the members of a religious group could supervise the group’s religious practice. The revised policy will permit other staff and chaplains of other faiths to supervise group religious practice and will allow incarcerated persons to facilitate some group religious activities.
“Religious liberty is a foundational principle of the United States, and the religious rights of incarcerated persons are guaranteed by both the Constitution and federal law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement will protect the religious practices of people held in correctional facilities across Connecticut by expanding the available options for supervising group religious activities. The Justice Department remains steadfast in its commitment to protecting the religious rights of all persons, including those who are incarcerated.”
“Federal law guarantees all Americans the right to freely exercise one’s religion, which includes the right of institutionalized persons to practice their faith and worship together,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “We are committed to protecting this fundamental right and are grateful for the Connecticut Department of Correction’s ongoing collaboration to ensure better protection for collective religious services.”
In addition to expanding who can supervise group religious practice, the agreement requires CDOC to implement a new “inmate conductor” program, which will allow incarcerated persons to take an active role in facilitating collective religious activities. CDOC will also collect and review data on a regular basis to ensure that the new policy has the intended effect of increasing access to group worship or collective religious activities. The settlement requires appropriate notification and training of CDOC staff and leadership to implement the revised policy. The department will have access to documents and correctional facilities to assess compliance with the agreement.
For additional information about the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. The Justice Department issued a report on the 20th Anniversary of RLUIPA in 2020 and a statement and on the Institutionalized Persons Provisions of RLUIPA in 2017. Those interested in finding out more about RLUIPA can visit www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act-0.
Jury Convicts Former Drug Felon of Cocaine ConspiracyRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that a federal jury
took less than two hours to returned guilty verdicts against Russell Robinson, 57, of St. Thomas, on
conspiracy to possess with intent to distribute cocaine, and possession with intent to distribute
cocaine. Chief District Judge Robert A. Molloy scheduled Robinson’s sentencing for July 3, 2024.
In 2007, Robinson was convicted of conspiracy to possess with intent to distribute cocaine,
conspiracy to import cocaine, and money laundering and was sentenced to serve 160 months of
incarceration.According to evidence introduced at trial, Customs and Border Protection Air and Marine
Operations detected a vessel heading towards Vessup Beach in St. Thomas operating without lights.
After arriving at Vessup Beach, aviation agents observed several individuals offloading duffle bags
from the vessel to Robinson, Trevor Stephen and an individual who Stephen identified in his trial as
Ikim Blackett loading the duffle bags into Robinson’s Toyota Tundra truck. The aviation agents
provided updates on Robinson’s location to agents on the ground as he traveled from Vessup Beach
to Charlotte Amalie. Agents attempted to stop Robinson near the waterfront, but he fled at a high
rate of speed towards Hull Bay and headed up a one-way road into a small residential area. While
agents set up a perimeter at the entrance of the one-way road, the aviation agents continued their
surveillance of Robinson’s truck and later observed him and Stephen as they threw the duffle bags
from the truck into the bushes. Robinson then drove to the entrance of the one-way road and agents
stopped his truck and arrested Robinson and Stephen. Agents then retrieved seven duffle bags from
the bushes. The duffle bags contained a total of 210 kilograms of a substance that tested positive for
cocaine. In June 2023, a federal jury convicted Stephen of possession with intent to distribute
cocaine. His sentencing is currently scheduled for March 27, 2024. For his conviction, Robinson
faces a mandatory minimum sentenced of 15 years and up to life imprisonment.The investigation was conducted by the Drug Enforcement Administration, U.S. Customs
and Border Protection Air and Marine Operations, with assistance from Homeland Security
Investigations. Assistant United States Attorneys Kyle Payne and Natasha Baker prosecuted the
case. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)
investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money
launderers, gangs, and transnational criminal organizations that threaten the United States by using
a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal,
state, and local law enforcement agencies against criminal networks.Inmate Guilty of Pandemic Fraud During Incarceration Sent Back to PrisonRead the Press Release
MACON, Ga. – A Valdosta, Georgia, resident who was serving a federal prison sentence for drug trafficking and gun convictions when he illegally obtained money from a pandemic unemployment program was sentenced to prison this week for his crime.
Isaac Camon, 49, of Valdosta, was sentenced to serve 36 months in prison for one count of wire fraud plus 36 months in prison for revocation of his supervised release for a total of 72 months in prison to be followed by three years of supervised release on March 14 by U.S. District Judge Tilman E. “Tripp” Self, III. The defendant is not eligible for parole.
“Our office has prosecuted individuals responsible for millions of dollars of CARES Act fraud, money earmarked to help sustain hard-working and law-abiding citizens during the historic pandemic,” said U.S. Attorney Peter D. Leary. “Working with our law enforcement partners, our office will continue to root out fraud and hold individuals accountable for these criminal schemes.”
“Camon clearly has no regard for the law, as he decided to defraud the State of Georgia during a national emergency while he was still serving time for drug trafficking,” said Rich Bilson, Supervisory Senior Resident of FBI Atlanta’s Valdosta office. “This lengthy sentence demonstrates the FBI’s relentless pursuit of justice and will hopefully put an end to Camon’s career as a criminal.”
According to court documents, on June 16, 2020, Camon filed a fraudulent online claim for federal and state pandemic unemployment assistance with the Georgia Department of Labor (GDOL). In the claim, Camon falsely asserted he worked for two companies during a time period when he was actually serving a federal sentence in a prison, a halfway house or on home confinement for possession of a firearm in furtherance of a drug trafficking offense and conspiracy to possess with intent to distribute a controlled substance in the Middle District of Florida. Camon never reported any work income for tax purposes and one of the companies Camon claimed to work for wasn’t in operation at the time he stated he was employed by them. Camon is being held accountable for an intended fraud loss of $19,452; the restitution amount payable to the Georgia Department of Labor is $16,322.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case was investigated by FBI Atlanta’s Valdosta Resident Agency, the U.S. Department of Labor-OIG, the U.S. Department of Transportation-OIG and the Lanier County Sheriff's Office.
Criminal Chief Leah McEwen and Assistant U.S. Attorney Robert McCullers prosecuted the case for the Government.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on March 12 was:
Adriano Spark LeBeaux, 19, of Lame Deer, on charges of aggravated sexual abuse. If convicted of the most serious crime, LeBeaux faces a maximum of life in prison, a $250,000 fine and five years of supervised release LeBeaux was detained pending further proceedings. The FBI and Bureau of Indian Affairs conducted the investigation. PACER case reference. 23-121.
Renee Esperanza Arambula, 26, of Billings, on charges of conspiracy to possess fentanyl, possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking and money laundering. If convicted of the most serious crime, Arambula faces a mandatory minimum of 10 years to life in prison, a $10 million fine and five years of supervised release on the drug counts and a mandatory minimum of seven years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the charge of possessing and brandishing a firearm in a drug trafficking crime. Arambula was released pending further proceedings. The Drug Enforcement Administration and Billings Police Department conducted the investigation. PACER case reference. 24-02.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Illinois Man Sentenced to Federal Prison for Methamphetamine and Heroin CrimesRead the Press Release
A man who worked with others to distribute methamphetamine and heroin was sentenced today to more than 34 years in federal prison.
Michael Garrick Denson, age 34, from Illinois, received the prison term after a September 14, 2023 jury verdict finding him guilty of one count of conspiracy to distribute methamphetamine and heroin and one count of possession with the intent to distribute heroin.
The evidence at trial showed that Denson was a methamphetamine and heroin dealer in the Dubuque, Iowa, area who was nicknamed “Ice Mike.” Between February 2018 and February 2020, Denson conspired with others to distribute methamphetamine and heroin in Dubuque and Cedar Rapids. On July 23, 2019, investigators observed Denson outside of a hotel in Dubuque. Denson had an outstanding warrant for his arrest, and investigators stopped a car in which he was a passenger. During the stop, Denson got out of the passenger side of the car and ran from investigators. Investigators located six small baggies containing heroin near where Denson had been seated in the car.
Denson was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Denson was sentenced to a term of imprisonment of 419 months and 18 days. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Denson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Adam J. Vander Stoep and Dan Chatham and was investigated as part of the Northern Iowa Heroin Initiative and the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Dubuque Drug Task Force (consisting of the Dubuque County Sheriff’s Office and the Dubuque Police Department) and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-01003-CJW.
Follow us on Twitter @USAO_NDIA.
Hugo Resident Sentenced for Sexual Abuse of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Hunter Lee Wallace, age 21, of Hugo, Oklahoma, was sentenced to 24 months in prison for one count of Sexual Abuse of a Minor in Indian Country.
The charges arose from investigations by the Choctaw Nation Lighthorse Tribal Police, the Hugo Police Department, and the Federal Bureau of Investigation.
On April 11, 2023, Wallace entered a guilty plea to the sexual abuse of a minor in Indian country. According to investigators, on September 12, 2022, Wallace sexually abused a minor he had previously met and conversed with on Snapchat, despite knowing the victim’s true age. The crime occurred in Choctaw County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable John F. Heil, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Wallace was remanded into the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Morgan Muzljakovich represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the tab “resources”.
We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement. You can file a report on the National Center for Missing & Exploited Children (NCMEC)'s website at www.cybertipline.com, call 1-800-843-5678, contact the FBI at 1-800-CALL-FBI (1-800-225-5324), or call 877-4-HSI TIP.
Harrison County Man Guilty of Fentanyl, Methamphetamine TraffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Kevin Glover was convicted today on multiple counts of distributing fentanyl and methamphetamine in Harrison County.
Glover, age 62, of Clarksburg, was found guilty by a jury today on seven counts of drug trafficking and one count of maintaining a drug-involved premises after a four-day trial. The jury heard testimony that Glover worked with others to sell illicit drugs in Harrison County, using his home as a hub for the distribution operation. Investigators searched Glover’s home and found fentanyl powder, fentanyl pills, methamphetamine, and a firearm.
Three other Clarksburg residents pled guilty in 2023 to charges related to the operation and are awaiting sentencing. They are Stacy Elaine Russell, age 50; Robert Anthony Brockington, age 41; and Jerri Rena Lucente, age 35.
Glover faces at least 10 years and up to life for the charge of distribution of 50 grams or more methamphetamine, and he faces up to 20 years for each of the remaining charges.
Assistant U.S. Attorneys Brandon Flower and Christie Utt prosecuted the case on behalf of the government.
The case was investigated by the Greater Harrison Drug Task Force, a HIDTA-funded initiative.
Chief U.S. District Judge Thomas S. Kleeh presided.
Graham County Man Sentenced to over 8 Years in Prison for Possession of Child Sex Abuse MaterialRead the Press Release
TUCSON, Ariz. – Eric Lavon Williams, 36, of Pima, Arizona, was sentenced to 97 months in prison on February 21, 2024, by United States District Judge Rosemary Márquez. Williams pleaded guilty to one count of Knowing Access of Child Pornography on July 12, 2023. When Williams is released from prison, he will be on supervised release for the remainder of his life and will be required to register as a sex offender.
On April 26, 2022, Homeland Security Investigations (HSI) Douglas began an investigation into Williams for possessing and distributing child sexual abuse material (CSAM) after receiving Cybertips from the National Center for Missing and Exploited Children. On June 29, 2022, HSI Douglas executed a search warrant at Williams’s Pima residence in Graham County. The investigation confirmed that Williams possessed and had distributed CSAM files to others using multiple online platforms. Williams’s wife, Cori, was also charged for distribution and possession of CSAM after the investigation showed that she had obtained such material for her husband and sent it to him. Cori Williams pleaded guilty to Possession of Child Pornography on July 20, 2023, and is scheduled to be sentenced on April 17, 2024.
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 www.justice.gov/psc.
Homeland Security Investigations - Douglas conducted the investigation in this case. Assistant U.S. Attorney Carin C. Duryee, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-01660-001-TUC-RM
RELEASE NUMBER: 2024-033_Williams# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Four-Time Recidivist Pittsburgh Felon Charged with Possession of Firearm Following Shooting in McKees RocksRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been arrested and charged with violating federal firearms laws, United States Attorney Eric G. Olshan announced today.
On March 14, 2024, Ernest Terry, 45, was charged by federal criminal complaint following his arrest by investigators from the Allegheny County Police Department (ACPD) on the same date.
According to an affidavit submitted in support of a state court arrest warrant, Terry was identified by ACPD as the alleged shooter in an incident that occurred in a McKees Rocks public housing building on March 12, 2024. County detectives subsequently located and arrested Terry near the Hays Manor apartment complex in McKees Rocks after he briefly attempted to flee. During a search incident to arrest, detectives located and seized a loaded .45 caliber Ruger pistol tucked in the waistband of Terry’s pants. The firearm had been reported stolen. In addition to several prior felony drug convictions, Terry also has a prior federal felony conviction for being an Armed Career Criminal, for which he was sentenced to 15 years in prison. He is currently serving a term of federal supervised release, and as a convicted felon is prohibited from possessing a firearm or ammunition.
“After serving 15 years in federal prison, Ernest Terry, a recidivist drug and firearm offender, allegedly possessed yet another firearm—a loaded .45 caliber Ruger—which was recovered by county detectives who were investigating a shooting in McKees Rocks,” said U.S. Attorney Olshan. “When our office learns that violent offenders have violated federal law, we will work quickly in partnership with our state and local partners to bring them to justice, and we commend the work of the Allegheny County Police Department in apprehending Terry.”
The law provides for a maximum total sentence of up to 15 years in prison, a fine of $250,000, or both. If it is determined that Terry again should be classified as an Armed Career Criminal, the possible penalties would increase to a term of imprisonment of not less than 15 years and up to life in prison. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant U.S. Attorneys Douglas C. Maloney and Vincent Joseph Sonson are prosecuting this case on behalf of the government.
The case is being investigated by the Allegheny County Police Department, Allegheny County Housing Police Department, McKees Rocks Police Department, Stowe Township Police Department, Allegheny County District Attorney’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty.
Fort Wayne Man Sentenced to 190 Months in PrisonRead the Press Release
FORT WAYNE –Yesterday, Ronday L. Tinker, 35 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to possessing with intent to distribute controlled substances and possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Clifford D. Johnson.
Tinker was sentenced to 190 months in prison followed by 5 years of supervised release.
According to documents in the case, on April 26, 2023, Tinker possessed with intent to distribute 50 grams or more of methamphetamine, 40 grams or more of fentanyl, and cocaine. Tinker was also in possession of a firearm in furtherance of a drug trafficking crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Drug Enforcement Administration, the Drug Enforcement Administration North Central Laboratory, the Fort Wayne Police Department, and the Indiana State Police Laboratory. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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.
Former S.C. Police Chief Sentenced for Cyberstalking and Threats in Multi-Victim Sextortion SchemeRead the Press Release
COLUMBIA, S.C. — William Bruce Parker, 67, of West Columbia, was sentenced to 15 years in federal prison yesterday after pleading guilty to cyberstalking resulting in serious bodily injury and communicating threats with the intent to extort victims for the production of pornography and coerced sex acts.
Evidence presented to the court showed that Parker, a former Chief of Police of the Town of Pine Ridge and a retired 35-year veteran of law enforcement in South Carolina, was a state constable at the time of the offenses. Parked admitted to sending a series of threatening emails, texts, and voice messages in 2021 and 2022 from spoofed accounts and phone numbers to numerous female victims. Evidence presented at sentencing indicated there were six victims, many of whom were related by blood or marriage. His messages demanded his victims produce and send pornography of themselves or he would harm the victims and their families, including physical and sexual violence directed at his victims and their spouses, children, and grandchildren, if they did not comply with his demands. In his threats, he identified the victims’ homes, churches, workplaces, schools, and communities, specific family members and their children, and threatened harm if his victims went to the police or male family members. Parker also threatened sexual violence against his victim’s toddler-aged children and grandchildren.
After receiving the demands, victims reached out to Parker for advice and help given their relationship with him and his position in his law enforcement. Parker lied to the victims by telling them he was coordinating an investigation by the South Carolina Law Enforcement Division (SLED). SLED confirmed in truth Parker never contacted SLED. Parker directed the victims to comply with the extortionists’ demands to assist SLED in the investigation. Once Parker had the coerced pornography, he then threatened to leak these images to obtain more. His threats culminated with demands that the victims engage in sex acts with Parker, record the conduct, and send to the extortionists. As a result of these threats, Parker obtained coerced sex.
Senior United States District Judge Cameron McGowan Currie sentenced Parker to 15 years imprisonment to be followed by a three-year term of supervised release. At sentencing, Judge Currie stated that the conduct in this case was “as depraved as anything I’ve seen in my 30 years as a federal district judge.” Parker is also required to pay $10,000 in restitution to the victims.
The case was investigated by the FBI Columbia Field Office and Lexington County Sheriff’s Department. Assistant U.S. Attorneys Elliott B. Daniels and Elle E. Klein are prosecuting the case.
###
Former Pentwater Area Timber Business Owner Faces Indictment for Wire Fraud SchemeRead the Press Release
Trent William Witteveen Operated Titan Timber as a Ponzi-like Scheme from 2018 to January 2021
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal grand jury returned an indictment charging Trent William Witteveen, 39, of Montague, Michigan, with wire fraud. Witteveen, formerly of Pentwater, Michigan, operated a timber harvesting business under the names “Titan Timber” and “Titans Timber LLC.”
“Hardworking people, who play by the rules and earn an honest day’s wage, should not see their savings wiped away by those who cheat and steal,” said U.S. Attorney Mark Totten. “Financial fraud is a serious problem and the schemes are endless. We’re committed to holding the most serious offenders accountable. We look forward to proving these allegations and doing all we can to help the victims.”
If convicted of wire fraud, defendant faces a maximum sentence of up to 20 years in prison and will be ordered to pay restitution to his victims.
According to allegations in the indictment, between June 2018 and January 2021, Witteveen operated a Ponzi-like scheme involving his timber business that defrauded investors and others. Witteveen routinely represented to investors that he secured timber harvesting rights from landowners and promised the investors a significant return if they provided the investment capital necessary to pay the landowner for such rights. In reality, on most occasions, no current contracts for timber harvesting existed because, unknown to the investors, Witteveen had already harvested timber from the landowner’s property at an earlier time.
On other occasions, to obtain more investment capital from the investors, Witteveen misrepresented the true value of timber on a landowner’s property by purposely inflating the value to an amount higher than what he knew a sawmill would pay for the lumber after harvesting the timber. Witteveen also obtained cashier’s checks or money orders payable to the landowners and showed those checks to the investors to make his contract with the landowner appear genuine. In reality, no such contract existed, and Witteveen simply deposited those funds back into his own bank account.
After Witteveen obtained money from an investor, he used that investor’s money to repay all or some of what he owed to prior investors, or to repay the same investor with his or her money to give the appearance that he was actually paying the promised returns. This allowed Witteveen to perpetuate his scheme by causing investors to believe that they were likely to realize the promised returns and to continue to invest with him. During the period alleged in the indictment, Witteveen obtained over $2,000,000.00 from investors and used some of that money to pay his own personal expenses and fund his lifestyle.
“Mr. Witteveen is alleged to have deceived his investors and taken advantage of their trust for personal gain over several years,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI is committed to investigating and bringing to justice individuals who commit financial crimes and illegally profit from hard-working citizens. Put simply, if you engage in illegal behavior to satisfy your greed, your actions will lead to incarceration.”
The FBI’s Grand Rapids Office is investigating this case and received assistance during the investigation from the Michigan State Police. Assistant U.S. Attorney Ron Stella is prosecuting the case.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
###
Former Florida Keys Resident Pled Guilty to Distributing Child PornographyRead the Press Release
MIAMI – On March 12, Eric Edward Cadogan, a/k/a “livelife4fun69,” 39, of La Crosse, Wisconsin, formerly of Marathon, Florida, pled guilty to distributing child pornography before U.S. Magistrate Judge Lurana S. Snow.
According to the factual proffer in support of the plea and information presented in court, Cadogan uploaded and distributed child pornography using a social media messaging platform. Cadogan also offered to sell child pornography and said he had “100 of videos n pictures.” In messages with an online undercover agent, Cadogan indicated he had engaged in sexually explicit conduct with minor children.
A sentencing hearing has yet to be scheduled before U.S. District Judge K. Michael Moore. Cadogan faces a mandatory minimum term of 5 years in prison, and up to twenty 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 Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the guilty plea.
FBI Miami Key West Resident Agency investigated the case. Assistant U.S. Attorney Katherine W. Guthrie is handling the case.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 the PSC initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Anyone with information regarding suspected child abuse (to include physical and sexual abuse) is encouraged to call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-CR-10017.
###
Former Employee Convicted of Defrauding His Employer Sentenced to Five Years in Federal PrisonRead the Press Release
The former Midwest general manager of a nation-wide financial services company who defrauded his employer out of more than $3.4 million was sentenced today to five years in federal prison.
James Dwyer, age 46, from Waterloo, Iowa, received the prison term after a September 26, 2023 guilty plea to one count of wire fraud and one count of filing a false tax return.
Information from the plea hearing and sentencing hearing showed that Dwyer was employed by Mobile Money, Inc. for over 20 years. Part of Mobile Money, Inc.’s business operations were servicing ATMs across eastern Iowa. Starting in January 2016, Dwyer defrauded and stole from Mobile Money, Inc. by stealing cash that was meant for ATMs or cash that was supposed to be deposited into a Mobile Money, Inc. bank account.
In January 2021, Dwyer told his superiors, which included someone Dwyer had been friends with for over 30 years, that there was approximately $1.1 million in cash locked in a vault in Waterloo that he could not access because the vault lock was broken. It was later discovered that Dwyer had intentionally tampered with the vault in order to prevent anyone else from accessing it. In February 2021, other employees got into the vault and discovered there was less than $100,000 in cash in it.
Also in January 2021, Mobile Money, Inc. executives discovered Dwyer had failed to deposit approximately $2.5 million in cash into bank accounts. On February 1, 2021, Dwyer sent ten bank deposit tickets to Mobile Money, Inc., purporting to show he had deposited that money. However, the bank deposit tickets were fraudulent and he had not deposited any such money.
Once Mobile Money, Inc. discovered Dwyer had been stealing from the company, the company determined his fraud had resulted in the company losing $3,407,000. Even though this money was obtained illegally, Dwyer was required to report it as income to the Internal Revenue Service. He failed to do so and filed false tax returns for multiple years.
Dwyer was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Dwyer was sentenced to 60 months’ imprisonment. He was ordered to make $3,407,000 in restitution to Mobile Money, Inc. and the company’s insurance company. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Dwyer was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-cr-2046.
Follow us on X @USAO_NDIA
Federal Jury Convicts Man Using Hidden Cameras to Produce Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida–United States Attorney Roger B. Handberg announces that a federal jury has found Gregory Allen Williamson a/k/a “Vlad Vlad” (58, North Port) guilty of enticement of a minor to engage in sexual activity, three counts of production of child sexual abuse material, three counts of distribution of child sexual abuse material, and possession of child sexual abuse material. Williamson faces a maximum penalty of life in federal prison. His sentencing hearing is not yet set. Williamson was indicted on November 3, 2021.
According to testimony and evidence presented at trial, Williamson isolated and groomed a minor victim, a recent immigrant from Eastern Europe, to engage in sexual activity when she was 12 years old. Using the alias, “Vlad Vlad,” Williamson began to send the victim anonymous, sexually explicit emails, including ones that contained child sexual abuse material. Williamson later gifted the victim two cell phone chargers that contained hidden cameras and used them to produce sexually explicit images of the victim when she was naked in her bedroom.
This case was investigated by the Federal Bureau of Investigation Tampa Division−Sarasota Resident Agency and the North Port Police Department, with substantial assistance from the Sarasota County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Erin Claire Favorit and Lindsey Schmidt.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Inmates and Others Involved in Drug Trafficking Conspiracy Sentenced to Federal PrisonRead the Press Release
ALEXANDRIA, La. – United States Attorney Brandon B. Brown announced the sentencings of four co-defendants involved in a drug trafficking conspiracy in the Western District of Louisiana. United States District Judge Dee D. Drell has sentenced the following defendants in this case:
Brian Jesus Garcia Pena, 34, a federal prison inmate, was sentenced to 235 months in prison, followed by 5 years of supervised release. This sentence will run consecutive to the federal prison sentence Pena is currently serving.
Isidro Chavarria, 42, a federal prison inmate, was sentenced in October 2023 to 120 months in prison, followed by 5 years of supervised release. This sentence will run consecutive to the federal prison sentence Chavarria is currently serving.
Darius Nelams, 38, of Springhill, Louisiana, was sentenced to 160 months in prison, followed by 5 years of supervised release for possession with intent to distribute methamphetamine.
Andres Ballesteros Medina, 45, of Springhill, Louisiana, was sentenced to 46 months in prison, followed by 5 years of supervised release for conspiracy to possess with intent to distribute methamphetamine.
Law enforcement agents with the Federal Bureau of Investigation (FBI) and U.S. Postal Inspection Service (USPIS) began this investigation in 2021 after learning that Pena, a federal inmate incarcerated at the U.S. Penitentiary in Pollock, was coordinating a large scale drug distribution from inside the prison. Through their investigation, agents learned that Pena was using contraband phones smuggled into the prison in order to communicate with Cartel members and others involved in the conspiracy. In May and June of 2021, agents seized multiple pounds of methamphetamine that had been sent through the mail from California after Pena and his co-defendant, Salvador Bucio, who worked as a go-between, coordinated the purchase of the methamphetamine in Mexico.
In June 2021, Pena’s cell was searched, and two contraband phones were located. Agents located multiple messages on the phone with Pena coordinating drug deals, as well as CashApp payments from multiple individuals, including Bucio and a payment from the wife of Isidro Chavarria. Chavarria, another federal prison inmate at USP Pollock, was also communicating with his co-conspirators on contraband phones and in fact, was directing his wife and other parties to distribute methamphetamine that Pena was sending her.
In September 2021, law enforcement agents conducted a controlled delivery of packages containing large amounts of methamphetamine, which were sent by Andres Ballesteros Medina in California through the U.S. Postal Service to an address in Springhill. Agents observed Medina drop the package off at the Post Office in California and conducted surveillance in Springhill where they observed Nelams arrive to pick up the package at the address in Springhill and open it. Nelams then fled the scene and left behind his cell phone containing text messages indicating he would deliver the narcotics and photos of same. All of the above defendants pleaded guilty to the charges rather than going to trial.
Salvador Bucio, 34, from Washington, is the one remaining defendant in this case and he is currently a fugitive. Anyone with information concerning the whereabouts of Bucio should contact the FBI at 1-800-CALL-FBI or online at tips.fbi.gov.
The case was investigated by the FBI and USPIS and prosecuted by Assistant United States Attorney J. Aaron Crawford.
The investigation and conviction of these defendants is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
# # #
Fayette County Man Sentenced for Possession of Firearm by a Convicted FelonRead the Press Release
LEXINGTON, Ky. – A Lexington man Davon S. Tooley, 37, was sentenced on Friday, by Chief U.S. District Judge Danny C. Reeves, to 145 months in prison, for two counts of possession of a firearm by a convicted felon.
According to his plea agreement, on April 28, 2022, law enforcement officers were dispatched to a vehicle collision. Upon arrival, officers discovered that one of the drivers, later identified as Davon Tooley, had fled the scene. There, officers located a quantity of cocaine, marijuana, and a firearm. Tooley was later located and apprehended. A few months later, on July 7, 2023, law enforcement conducted a traffic stop on a vehicle driven by Tooley. While speaking with Tooley, officers observed a firearm at Tooley’s feet. The firearm was seized. Tooley has admitted that on both occasions he was in possession of a firearm, knowing that he was a convicted felon and prohibited from possessing firearms.
Tooley has previous convictions for Manslaughter Second Degree and Tampering with Physical Evidence from 2010, in Jefferson Circuit Court. Tooley was on parole at the time of both new offenses.
Under federal law, Tooley 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 Division; and Chief Lawrence Weathers, Lexington Police Department jointly announced the sentence.
The investigation was conducted by the ATF and Lexington Police Department. Assistant U.S. Attorney Cynthia Rieker is prosecuting the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
— END —
Family of Human Smugglers Sentenced to Federal PrisonRead the Press Release
DEL RIO, Texas – Four family members were sentenced in a federal court in Del Rio to federal prison for their roles in operating an extensive human smuggling organization (HSO).
According to court documents, Eva Maria Galeas, 43, of San Antonio; Lisa Marie Ortega, 25, of San Antonio; and Sandra Galeas-Mejia, 48, of Mexico, and Norma Galeas-Mejia, 52, of Honduras, were identified as co-conspirators of Roberto Galeas-Mejia, 47, of Honduras.
Roberto, who is the husband to Eva, stepfather to Lisa Ortega and brother of the other two defendants, led a San Antonio-based HSO, overseeing activities that included the transportation and harboring of undocumented noncitizens and the coordination of payments.
Eva, Lisa, Sandra and Norma played roles accepting and withdrawing human smuggling proceeds. Funds were funneled through the conspirators’ bank accounts and used to pay load drivers and stash house operators, to rent stash houses and to further aid the HSO. Funds were also used for personal expenses such as vehicle purchases. Over the course of the investigation, Homeland Security Investigations thwarted multiple smuggling loads and arrested numerous co-conspirators and undocumented noncitizens.
Eva Maria Galeas and Sandra Galeas-Mejia were arrested in San Antonio on June 11, 2019, along with Lisa Marie Ortega. Norma Galeas-Mejia was arrested June 17, 2019 in Houston. On July 27, 2022, a federal jury found Roberto Galeas-Mejia, Eva Maria Galeas and Lisa Marie Ortega guilty of all three counts of a superseding indictment: conspiracy to transport illegal migrants, conspiracy to harbor illegal migrants, and conspiracy to launder monetary instruments. Sandra Galeas-Mejia and Norma Galeas-Mejia both pleaded guilty to one count of conspiracy to transport illegal aliens.
Eva Maria Galeas was sentenced to 180 months in prison and Lisa Marie Ortega was sentenced to 156 months in prison. Sandra Galeas-Mejia was sentenced to 84 months in prison, and Norma Galeas-Mejia was sentenced to 78 months. Chief U.S. District Judge Alia Moses also ordered the forfeiture of $603,593.00 in U.S. currency, which was discovered in a safe during the home search of Roberto Galeas-Mejia, Eva Maria Galeas, and Lisa Marie Ortega. Additionally, Eva Galeas and Lisa Ortega were assessed money judgements in the amounts of $97,668 and $21,388, respectively.
Roberto Galeas-Mejia remains in federal custody while he awaits his sentence hearing.
“These defendants, along with Roberto Galeas-Mejia, built a family enterprise through human smuggling operations,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thanks to our federal partners at HSI and Border Patrol, along with our state and local law enforcement partners, the Galeas human smuggling business ultimately failed. All five members of the family will serve extensive federal prison sentences, joining many of their co-conspirators after several years of apprehensions and disruption to their efforts.”
“This sentencing is a great example of how HSI uses its agency partnerships to bring criminals to justice in the United States,” said Special Agent in Charge Craig Larrabee for HSI San Antonio. “The defendants in this case put our national security at risk by illegally bringing people to the U.S. without any inspection. HSI is committed to combatting this type of crime throughout the border.”
HSI investigated the case with valuable assistance from U.S. Border Patrol, Texas Department of Public Safety, Maverick County Sheriff’s Office, Eagle Pass Police Department, Dimmit County Sheriff’s Office and the Bexar County Sheriff’s Office.
Assistant U.S. Attorneys Holly Pavlinski, Antonio Franco and Rex Beasley prosecuted the case.
###