Southern District of Mississippi

 

Gulfport, Miss. – Michael Lee, 53, of Biloxi, Mississippi, was sentenced on August 14, 2017, by Chief U.S. District Judge Louis Guirola, Jr., to serve 108 months in federal prison followed by a lifetime of supervised release for possession of child pornography, announced Acting U.S. Attorney Harold Brittain and Special Agent in Charge Raymond R. Parmer, Jr.

In addition to the prison term, Lee was ordered to pay restitution of $1,000 to a victim and a $5,000 special assessment under the Justice for Victims of Trafficking Act of 2015.

The investigation revealed that on September 16, 2014, Lee was identified as the individual at a Biloxi address who, through activity with a Peer to Peer file sharing network, knowingly possessed on his computer and hard drive visual depictions of minors engaging in sexually explicit conduct.

This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Andrea Jones and Glenda Haynes.

 

Gulfport, Miss – Susan Ann Villeneuve, 62, of Escalon, California, was sentenced today on international fraud charges that started in 2014 when sixteen individuals were arrested in South Africa, Canada, California, Wisconsin, New York and Indiana, pursuant to an eight-count federal indictment filed in the Southern District of Mississippi, announced Acting U.S. Attorney Harold Brittain and Raymond Parmer, Jr., Special Agent in Charge of Immigration Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New Orleans.

Villeneuve was sentenced by U.S. District Judge Sul Ozerden to a total of 84 months in federal prison for conspiracy to commit mail and wire fraud and aggravated identity theft. She was also ordered to pay $32,857 in restitution for losses to 10 of her counterfeit check victims. When released from prison, she will serve three years of supervised release. She previously pled guilty to the charges.

The case involved a West African transnational organized crime enterprise involved in numerous complex financial fraud schemes over the internet. This mass marketing fraud included romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs.

The investigation was initiated in October 2011, by HSI agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars. Villeneuve was responsible for sending out over $26 million in counterfeit checks to victims across the country by USPS, UPS and FedEx.

If you believe you were the victim of criminal fraud committed by any of the defendants, you may contact the government at the email address USAMSS.Scams@usdoj.gov.

The investigation in this case was led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto Police, HSI Cyber Crimes Center, Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.

The case in Mississippi was prosecuted by Assistant U.S. Attorney Annette Williams, Trial Attorney Conor Mulroe with the DOJ Organized Crime and Gang Section, and Peter Roman, Senior Counsel for the Computer Crimes Intellectual Property Section.

WASHINGTON - Huntington Ingalls Industries Inc. (HII), a publicly traded company headquartered in Newport, Virginia, has agreed to a $9.2 million settlement of allegations that it violated the False Claims Act by knowingly overbilling the government for labor on U.S. Navy and Coast Guard ships at its shipyards in Pascagoula, Mississippi. Under the settlement, HII will make a payment of $7.9 million which, combined with earlier repayments, will result in the settlement recovery of approximately $9.2 million.

 

“Contractors that knowingly bill the government in violation of contract terms will face serious consequences,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement demonstrates, once again, that we will not tolerate defense contractors who falsely charge the armed forces or any agency of the United States.”

 

"Our Armed Forces depend on defense contractors to follow the rules, and this civil settlement, the second largest in the District’s history, should remind all those who conduct business with the United States Government that they are expected to abide by the rules,” said Acting U.S. Attorney Harold Brittain, who also noted three earlier guilty pleas in a related criminal matter in the Southern District of Mississippi. Two individuals pleaded guilty in United States v. N. R. Holden & R.G. Gardner, Criminal No 1:15-cr-42 HSO-RHW, and were sentenced in 2015. Another individual pleaded guilty in United States v. R.M. Wilson, Criminal No 1:16-cr-34-LG-RHW, and was sentenced in 2016. According to Acting U.S. Attorney Brittain, “the Southern District of Mississippi will remain vigilant in identifying and prosecuting those involved in nefarious activities and fraudulent billing, which ultimately result in substantial cost overruns on Navy and Coast Guard shipbuilding projects.”

 

Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Southeast Field Office, Mike Wiest, says "Corruption, fraud and bribery are not victimless crimes. Overcharging for work not done is not only criminal on its face, investigating those crimes siphoned resources and time which would have been better invested in protecting the nation. Multiple federal agencies spent years investigating this lack of integrity, to help hold accountable those who would squander American taxpayer dollars."

 

"Today's results are part of ongoing efforts by the Coast Guard Investigative Service (CGIS) and its law enforcement partners to protect the integrity of the Coast Guard's acquisition systems by holding individuals and corporations accountable when they attempt to defraud U.S. taxpayers", said Special Agent in Charge Brian Jeanfreau.

 

"Contractors are expected to comply with their statutory obligations and act in good faith when dealing with the Department of Defense (DOD)," commented John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “This settlement is the culmination of hard work by DCIS, our investigative partners, the Department of Justice, Civil Division, Commercial Litigation Branch, and the U.S. Attorney's Office for the Southern District of Mississippi; and clearly demonstrates that combatting fraud, waste and abuse within DOD contracting remains a top priority."

 

The civil settlement resolves alleged labor mischarging on various U.S. Navy and Coast Guard contracts dating back to 2003. HII allegedly mischarged labor incurred on particular contracts to other contracts, even though the costs were not actually incurred by those contracts. The settlement also resolves claims disclosed by HII that it had billed the Navy and Coast Guard for dive operations to support ship hull construction that did not actually occur as claimed.

 

The labor mischarging allegations resolved by the settlement were originally raised in a lawsuit brought by Bryon Faulkner, a former HII employee, under the qui tam, or whistleblower, provisions of the False Claims Act (FCA), which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Act also allows the government to intervene and take over the action, as it did in this case. Mr. Faulkner will receive $1,590,144 as a result of the civil action he filed, which is captioned United States ex rel. Faulkner v. Huntington Ingalls Industries, Inc. 1:13-cv-295 HSO RHW in the Southern District of Mississippi.

 

This settlement was the result of a coordinated effort by the Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Mississippi, the Defense Contract Audit Agency, DCIS, NCIS, and CGIS. The claims made in the complaint are allegations only, and there has been no determination of liability.

Huntington Ingalls Industries Inc. (HII), a publicly traded company headquartered in Newport, Virginia, has agreed to a $9.2 million settlement of allegations that it violated the False Claims Act by knowingly overbilling the government for labor on U.S. Navy and Coast Guard ships at its shipyards in Pascagoula, Mississippi. Under the settlement, HII will make a payment of $7.9 million which, combined with earlier repayments, will result in the settlement recovery of approximately $9.2 million.

“Contractors that knowingly bill the government in violation of contract terms will face serious consequences,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement demonstrates, once again, that we will not tolerate defense contractors who falsely charge the armed forces or any agency of the United States.”

"Our Armed Forces depend on defense contractors to follow the rules, and this civil settlement, the second largest in the District’s history, should remind all those who conduct business with the United States Government that they are expected to abide by the rules,” said Acting U.S. Attorney Harold Brittain, who also noted three earlier guilty pleas in a related criminal matter in the Southern District of Mississippi. Two individuals pleaded guilty in United States v. N. R. Holden & R.G. Gardner, Criminal No 1:15-cr-42 HSO-RHW, and were sentenced in 2015. Another individual pleaded guilty in United States v. R.M. Wilson, Criminal No 1:16-cr-34-LG-RHW, and was sentenced in 2016. According to Acting U.S. Attorney Brittain, “the Southern District of Mississippi will remain vigilant in identifying and prosecuting those involved in nefarious activities and fraudulent billing, which ultimately result in substantial cost overruns on Navy and Coast Guard shipbuilding projects.”

Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Southeast Field Office, Mike Wiest, says "Corruption, fraud and bribery are not victimless crimes. Overcharging for work not done is not only criminal on its face, investigating those crimes siphoned resources and time which would have been better invested in protecting the nation. Multiple federal agencies spent years investigating this lack of integrity, to help hold accountable those who would squander American taxpayer dollars."

"Today's results are part of ongoing efforts by the Coast Guard Investigative Service (CGIS) and its law enforcement partners to protect the integrity of the Coast Guard's acquisition systems by holding individuals and corporations accountable when they attempt to defraud U.S. taxpayers", said Special Agent in Charge Brian Jeanfreau.

"Contractors are expected to comply with their statutory obligations and act in good faith when dealing with the Department of Defense (DOD)," commented John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “This settlement is the culmination of hard work by DCIS, our investigative partners, the Department of Justice, Civil Division, Commercial Litigation Branch, and the U.S. Attorney's Office for the Southern District of Mississippi; and clearly demonstrates that combatting fraud, waste and abuse within DOD contracting remains a top priority."

The civil settlement resolves alleged labor mischarging on various U.S. Navy and Coast Guard contracts dating back to 2003. HII allegedly mischarged labor incurred on particular contracts to other contracts, even though the costs were not actually incurred by those contracts. The settlement also resolves claims disclosed by HII that it had billed the Navy and Coast Guard for dive operations to support ship hull construction that did not actually occur as claimed.

The labor mischarging allegations resolved by the settlement were originally raised in a lawsuit brought by Bryon Faulkner, a former HII employee, under the qui tam, or whistleblower, provisions of the False Claims Act (FCA), which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Act also allows the government to intervene and take over the action, as it did in this case. Mr. Faulkner will receive $1,590,144 as a result of the civil action he filed, which is captioned United States ex rel. Faulkner v. Huntington Ingalls Industries, Inc. 1:13-cv-295 HSO RHW in the Southern District of Mississippi.

This settlement was the result of a coordinated effort by the Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Mississippi, the Defense Contract Audit Agency, DCIS, NCIS, and CGIS. The claims made in the complaint are allegations only, and there has been no determination of liability.

 

Jackson, Miss. – Brian Monroe Lewis, 33, formerly of Brookhaven, Mississippi, pled guilty today before Senior U.S. District Judge David C. Bramlette III to possession of a firearm by a convicted felon, announced Acting U.S. Attorney Harold Brittain.

Lewis admitted that, on December 20, 2016, he possessed a HiPoint brand, model C9, 9mm handgun after having previously been convicted in Mississippi state court for aggravated assault in 2006 and possession of a cocaine in 2010.

Lewis is currently detained in the Madison County Jail and will be sentenced on November 14, 2017, by Senior U.S. District Judge David C. Bramlette III, at the U.S. Courthouse in Natchez. Lewis faces a maximum sentence of 10 years in prison and a $250,000 fine.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Carla J. Clark is prosecuting the case for the government.

 

Jackson, Miss – Shonda Williams, 38, of Jackson, was sentenced on August 8, 2017, to 15 months in federal prison followed by three years of supervised release for conspiracy to defraud the United States, announced Acting U.S. Attorney Harold Brittain and IRS Criminal Investigation Special Agent in Charge Jerome McDuffie.

As part of the conspiracy, Williams stole patients’ personal identifying information from current and former patients at Jackson-Hinds Comprehensive Health Center while employed at the facility. She sold the social security numbers to other co-conspirators for cash. Those co-conspirators later submitted false claims to the IRS by preparing and submitting false U.S. Individual Income Tax Returns, Forms 1040 for tax year 2010 through 2013, using stolen identities. Fraudulent tax refunds were then deposited into the bank accounts of other co-conspirators involved in the scheme. The 865 false claims totaled over $1,000,000 in fraud. Williams was ordered to pay $35,975.00 in restitution for her part in the scheme.

This case was investigated by the Internal Revenue Service- Criminal Investigations and was prosecuted by Assistant U.S. Attorney Mary Helen Wall.

Jackson, Miss – William Jason Moore, 38, of Jackson, was sentenced on August 8, 2017, by U.S. District Judge Carlton W. Reeves, to serve 50 months in federal prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced Acting U.S. Attorney Harold Brittain. Moore was also ordered to pay a $1500 fine.

Moore previously pled guilty to possession of a firearm at a time when he was already a convicted felon. He was arrested on May 16, 2016, during a traffic stop in Rankin County, after Pearl Police officers found two firearms in the stolen vehicle he was driving. Moore’s previous convictions are for grand larceny and burglary.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives along with the Pearl Police Department. This case was prosecuted by Assistant U.S. Attorney Mary Helen Wall.

 

Gulfport, Miss – Joseph Towner, Jr., 32, of Gulfport, was sentenced today by U.S. District Judge Sul Ozerden to serve a total of 32 years in federal prison for armed robbery, announced Acting U. S. Attorney Harold H. Brittain. Towner previously pled guilty to two counts of brandishing a firearm during and in relation to a crime of violence. He was sentenced to 84 months in prison on the first count, and 300 months in prison on the second count, for a total of 32 years.

Judge Ozerden ordered Towner’s sentences to be served consecutively with each other and consecutively to the 8 years he is currently serving in the Mississippi Department of Corrections. He was ordered to pay restitution while in prison to Dollar General, Family Dollar, and an individual, for a total of $13,926.13. Once the restitution is paid, Towner is ordered to pay a fine of $20,000. When released from prison, he will be on supervised release for five years.

The charges in this case stem from a series of armed robberies of Dollar General and Family Dollar stores in Long Beach, Gulfport, D’Iberville and Biloxi in 2014. The case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives along with D’Iberville, Biloxi, Long Beach and Gulfport Police Departments. It was prosecuted by Assistant United States Attorney Annette Williams.

 

WASHINGTON – A Gulfport, Mississippi, tax return preparer was sentenced to 48 months in prison for obstructing the internal revenue laws and aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.

 

According to documents and information presented to the court, Doris Kelley, 65, operated a tax return preparation business from her home in Gulfport. Kelley instructed several of her clients, who owed income taxes to the Internal Revenue Service (IRS), to write payment checks directly to her rather than to the IRS. Kelley kept these funds for herself and used most of the money to gamble at local casinos. Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley earned hundreds of thousands of dollars from her scheme and caused a tax loss of more than $500,000.

 

In addition to the term of imprisonment imposed, U.S. District Court Judge Sul Ozerden ordered Kelley to serve one year of supervised release and to pay $519,635.72 in restitution, to include $357,534.49 to the IRS and $162,101.23 to the individual victims. Kelley pleaded guilty in April to impeding the internal revenue laws and aiding in the preparation of a false tax return.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted this case.

 

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

A Gulfport, Mississippi, tax return preparer was sentenced to 48 months in prison for obstructing the internal revenue laws and aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.

 

According to documents and information presented to the court, Doris Kelley, 65, operated a tax return preparation business from her home in Gulfport. Kelley instructed several of her clients, who owed income taxes to the Internal Revenue Service (IRS), to write payment checks directly to her rather than to the IRS. Kelley kept these funds for herself and used most of the money to gamble at local casinos. Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley earned hundreds of thousands of dollars from her scheme and caused a tax loss of more than $500,000.

 

In addition to the term of imprisonment imposed, U.S. District Court Judge Sul Ozerden ordered Kelley to serve one year of supervised release and to pay $519,635.72 in restitution, to include $357,534.49 to the IRS and $162,101.23 to the individual victims. Kelley pleaded guilty in April to impeding the internal revenue laws and aiding in the preparation of a false tax return.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted this case.

 

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

Gulfport, Miss – Rodrigo Hernandez-Garcia, age 32, an illegal alien from Mexico who was living in Bay St. Louis, pled guilty on July 26, 2017, before Chief District Judge Louis Guirola, Jr., to possession of a firearm by an illegal alien, announced Acting U. S. Attorney Harold Brittain.

Hernandez-Garcia will be sentenced on October 24, 2017 and faces a maximum penalty of 10 years in prison and a $250,000 fine. He also faces deportation as a convicted felon.

The case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Annette Williams.

Hattiesburg, Miss. – Jason May, 40, of Lamar County, Mississippi, and Gerald Jay Schaar, 46, of Biloxi, Mississippi, entered guilty pleas on July 25, 2017, before U.S. District Judge Keith Starrett, for their roles in a multi-million dollar compounding pharmacy health care fraud conspiracy, announced Acting U.S. Attorney Harold Brittain, FBI Special Agent in Charge Christopher Freeze, IRS-Criminal Investigation Special Agent in Charge Jerome R. McDuffie, and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service Southeast Field Office.

May pled guilty to conspiracy to commit health care fraud and money laundering in connection with his role as co-owner and pharmacist in charge of Advantage Pharmacy, which received approximately $192 million in reimbursements from TRICARE and other health care benefit programs for compound topical creams. He selected formulas for the compound creams based on reimbursement rates as opposed to medical efficacy. In order to facilitate the scheme to defraud, May and Advantage Pharmacy either did not collect patient copayments for the compound topical creams or paid copayments on behalf of beneficiaries. As a co-owner of Advantage Pharmacy, May received a portion of the reimbursements associated with the fraudulently obtained compound creams and transferred certain of those proceeds from the fraud – in transactions greater than $10,000 - into a money market account held in his name.

Schaar pled guilty to conspiracy to commit health care fraud for his role in a fraudulent scheme in which he, acting as a marketer for a pharmacy located in Lamar County, solicited physicians and other medical professionals to write prescriptions without seeing patients for compound topical creams dispensed by the pharmacy. Schaar, together with others, later falsified patient records to make it seem as though medical professionals had examined the patients who received prescriptions for the compound creams. In total, the pharmacy received $2.3 million in reimbursements for the prescriptions solicited by Schaar.

The charges against May and Schaar were brought as a result of the largest ever national health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants in 41 federal districts across the country, targeting schemes which involved billing Medicare, Medicaid, and TRICARE (a health insurance program for members and veterans of the armed forces and their families) for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries.

"Health care fraud costs the United States tens of billions of dollars a year," said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. "The FBI Jackson

Division, alongside our law enforcement partners, will continue to seek out those that defraud health care systems in the United States."

"DCIS and our investigative partners remain committed to bringing to justice any individuals who defraud TRICARE, the Department of Defense health care program dedicated to providing medical care to military members and their families," stated Special Agent in Charge John F. Khin, Southeast Field Office, DCIS. "The fraud and corruption uncovered as part of this complex case diverted and wasted precious taxpayer dollars needed for the critical care and well-being of our military members and their families."

Jason May and Gerald Jay Schaar will be sentenced by U.S. District Judge Keith Starrett on October 17, 2017 in Hattiesburg. May faces a maximum penalty of five years in prison and a $250,000 fine. Schaar faces a maximum penalty of ten years in prison and a $250,000 fine.

This case was investigated by the FBI’s Hattiesburg Resident Agency, IRS-Criminal Investigation, Defense Criminal Investigative Service, Health and Human Services Office of Inspector General, Mississippi Bureau of Narcotics, and other government agencies. Department of Justice trial attorneys Dustin Davis and Katherine Payerle, and Assistant U.S. Attorney Mary Helen Wall are prosecuting the case for the government.

The Pharmacist in Charge of a Hattiesburg, Mississippi compounding pharmacy pleaded guilty today to health care fraud charges for his role in a scheme that defrauded TRICARE and private insurance companies out of at least $192 million in payments for medically unnecessary compounded medications.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Harold Brittain of the Southern District of Mississippi, Special Agent in Charge Christopher Freeze of the FBI’s Jackson Division, Special Agent in Charge Jerome R. McDuffie of the Internal Revenue Service – Criminal Investigation’s New Orleans Field Office and Special Agent John F. Khin of the Defense Criminal Investigative Service Southeast Field Office made the announcement.

May, 40, of Lamar County, Mississippi, pleaded guilty to one count of conspiracy to commit health care fraud and money laundering before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Sentencing has been scheduled for October 17 before Judge Starrett.

As part of his guilty plea, May admitted that he conspired with others to select compounded medication formulas based on profitability, rather than on effectiveness or patient need. He further admitted that he conspired with co-owners of the pharmacy to circumvent fraud prevention measures, such as collecting copayments, so that patients were incentivized to receive, and continue to receive, medically unnecessary medications.  According to plea documents, May dispensed these medically unnecessary compounded medications and caused fraudulent claims to be submitted to TRICARE, a health care program that benefits members of the U.S. armed forces, and other health care benefit programs. Based on these fraudulent claims, May and his co-conspirators received at least $192 million in reimbursements.

In a related case, Gerald Schaar, 46, of Biloxi, Mississippi, pleaded guilty to one count of conspiracy to commit health care fraud for his role in the scheme to defraud TRICARE. According to plea documents, Schaar admitted to soliciting physicians and other medical professionals to write prescriptions without seeing patients for medically unnecessary compounded medications dispensed by the pharmacy. According to the plea documents, Schaar further admitted to conspiring with others to falsify patient records to make it appear as though medical professionals had seen patients prior to the date prescriptions were written, when in reality, no examinations had occurred. As a result of the fraudulent prescriptions obtained by Schaar, and ultimately forwarded to the pharmacy, TRICARE reimbursed approximately $2.3 million in false and fraudulent claims submitted by the pharmacy. Sentencing for Schaar has been scheduled for October 17 before Judge Starrett.

This case was investigated by the FBI Jackson Division's Hattiesburg Resident Agency, the IRS Criminal Investigation, the Defense Criminal Investigative Service, Health and Human Services Office of Inspector General, the Mississippi Bureau of Narcotics, and other government agencies. Trial Attorneys Dustin Davis and Katherine Payerle of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide.  Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.

Gulfport, Miss – Lonnie M. Ray, the president of Cowart Seafood, Inc., of Bay St. Louis, Mississippi, was sentenced today to 25 months in federal prison for conspiracy to violate the Lacey Act and illegal possession of a short-barreled shotgun, announced Acting U.S. Attorney Harold Brittain; Assistant Director Tracy A. Dunn with the National Oceanic and Atmospheric Administration; Special Agent in Charge Louis Santiago with the U.S. Fish and Wildlife Service; Chief Keith Davis with the Mississippi Department of Marine Resources, Office of Marine Patrol; Resident Agent in Charge Jason Denham with the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Justin Green, Special Agent in Charge, Southeast Region, U.S. Food and Drug Administration - Office of Criminal Investigation. The Lacey Act makes it unlawful to sell in interstate commerce any fish taken in violation of state law.

Ray previously pled guilty to conspiring to violate the Lacey Act by selling fish to Louisiana seafood buyers that was taken in violation of Mississippi law. According to Mississippi law, seafood dealers are required to submit information about each seafood purchase from a commercial fisherman on a form known as a trip ticket that is provided by the Mississippi Department of Marine Resources ("DMR"). Ray admitted violating this requirement by failing to report seafood purchases to DMR and by buying fish from recreational fisherman in violation of state law. The Lacey Act charges against Shelley H. Ray, who was also named in the indictment, were dismissed. Lonnie Ray also pled guilty to owning a 12-gauge double-barrel shotgun, having a barrel of less than l8 inches in length, which was not registered to him in the National Firearms Registration and Transfer Record.

Acting United States Attorney Brittain praised the efforts of the federal and state investigative agencies for their diligent work in the investigation of this matter.

 

Jackson, Miss. – Christopher Lashawn Chamberlin, 40, of DeKalb, Mississippi, was sentenced on July 20, 2017, on charges that he conspired to defraud the government by preparing and filing false tax returns using stolen identities provided to him by others, announced Acting U.S. Attorney Harold Brittain and IRS-Criminal Investigation Special Agent in Charge Jerome McDuffie.

Chamberlin, who owned and operated C & T Tax Services in De Kalb, pled guilty on April 11, 2017, to conspiracy to defraud the government. U.S. District Judge Tom S. Lee sentenced Chamberlin to serve 30 months in federal prison, followed by 3 years of supervised release. He was also ordered to pay over $11 million dollars in restitution to the government.

The investigation revealed that Chamberlin knowingly submitted false claims to the IRS by preparing and submitting false U.S. Individual Income Tax Returns, Forms 1040, using stolen identities provided to him by a co-conspirator. The fraudulent returns would have directed the refunds to be deposited into the accounts of other co-conspirators, but IRS-Criminal Investigation was able to stop the payments before they were made, thanks to the swift action of the De Kalb, Mississippi Police Department in investigating and reporting the scheme.

Chamberlin also admitted to preparing tax returns for other individuals that included exaggerated losses which resulted in fraudulently increased refunds. He was ordered to pay restitution of over $11 million dollars for these fraudulently obtained refunds.

IRS Criminal Investigation Special Agent in Charge, Jerome R. McDuffie, stated, "We are pleased with the sentence imposed by the court in this matter. We want the individuals who engage in these schemes to know that we will pursue prosecution and seek to hold them accountable for their corrupt endeavors to rob the nations’ taxpayers. IRS – Criminal Investigation is particularly appreciative of the partnership we enjoy with our local law enforcement agencies, and the Office of the United States Attorney in the investigation and prosecution of identity theft related tax crimes."

This case was investigated by IRS-Criminal Investigation and was prosecuted by Assistant United States Attorney Dave Fulcher.

Jackson, MS -- Richard Brian Williams, age 31, formerly of Byram, MS, pleaded guilty to Possession of a Firearm by a Convicted Felon before U.S. District Judge Henry T. Wingate, announced Acting U.S. Attorney Harold Brittain. Williams admitted that on January 20, 2017, he possessed two handguns: a Taurus .45 caliber pistol and a Colt .22 caliber Derringer, after previously being convicted in several Mississippi circuit courts of the following felonies: Auto Burglary in 2003, Burglary of a Dwelling in 2004 and again in 2005, Robbery in 2009, and Introduction of Contraband into a Correctional Facility in 2015.

 

Williams is currently detained in the Madison County Jail and will be sentenced on September 29, 2017 at 9:30 a.m.

 

The case was investigated by the Bureau of Alcohol Tobacco Firearms and Mississippi Department of Corrections. It is being prosecuted by Assistant United States Attorney Carla Clark.

 

Hattiesburg, Miss. – Jason May, 40, of Lamar County, Mississippi, and Gerald Jay Schaar, 46, of Biloxi, Mississippi, have each been charged by Criminal Information for their roles in a multi-million dollar compounding pharmacy health care fraud conspiracy, announced Acting U.S. Attorney Harold Brittain, FBI Special Agent in Charge Christopher Freeze, IRS-Criminal Investigation Special Agent in Charge Jerome R. McDuffie, and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service Southeast Field Office.

The charges were brought as a result of the largest ever national health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants in 41 federal districts across the country, targeting schemes which involved billing Medicare, Medicaid, and TRICARE (a health insurance program for members and veterans of the armed forces and their families) for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries.

May is charged with conspiracy to commit health care fraud and money laundering in connection with his role as co-owner and pharmacist in charge of Advantage Pharmacy, which received approximately $192 million in reimbursements from TRICARE and other health care benefit programs for compound topical creams. According to the Criminal Information, May selected formulas for the compound creams based on reimbursement rates as opposed to medical efficacy. In order to facilitate the scheme to defraud, May and Advantage Pharmacy either did not collect patient copayments for the compound topical creams or paid copayments on behalf of beneficiaries. As a co-owner of Advantage Pharmacy, May received a portion of the reimbursements associated with the fraudulently obtained compound creams and transferred certain of those proceeds from the fraud – in transactions greater than $10,000 - into a money market account held in his name.

Schaar is charged with conspiracy to commit health care fraud for his role in a fraudulent scheme in which he, acting as a marketer for a pharmacy located in Lamar County, solicited physicians and other medical professionals to write prescriptions without seeing patients for compound topical creams dispensed by the pharmacy. According to the Criminal Information, Schaar, together with others, later falsified patient records to make it seem as though medical professionals had examined the patients who received prescriptions for the compound creams. In total, the pharmacy received $2.3 million in reimbursements for the prescriptions solicited by Schaar.

Jason May and Gerald Jay Schaar are both scheduled to enter guilty pleas before U.S. District Judge Keith Starrett on July 25, 2017, at 1:30 p.m.

This case is being prosecuted by Department of Justice trial attorneys Dustin Davis and Katherine Payerle and Assistant U.S. Attorney Mary Helen Wall. The case is being investigated by the FBI, IRS-Criminal Investigation, Defense Criminal Investigative Service, Health and Human Services Office of Inspector General, Mississippi Bureau of Narcotics, and other government agencies.

 

Gulfport, Miss. – Philip Joseph Spear, 60, of Ocean Springs, Mississippi, was sentenced on July 6, 2017, by Chief U.S. District Judge Louis Guirola, Jr., to 160 years (1920 months) in federal prison followed by a lifetime of supervised release for producing, transporting, distributing, and possessing child pornography, announced Acting U.S. Attorney Harold Brittain, FBI Jackson Division Special Agent in Charge Christopher Freeze and Mississippi Attorney General Jim Hood. Spear was also ordered to pay $47,500 in restitution to victims, and a special assessment of $30,000 for a related crime under the Justice for Victims of Trafficking Act.

In September, 2016, a federal search warrant was executed at Spear’s residence in Ocean Springs. Electronic devices including computers, hard drives, a digital camera, a media card and an iPad were seized. A forensic examination revealed illegal images and videos of minors engaging in sexually explicit conduct.

Spear pled guilty on March 9, 2017, to a six count Bill of Information charging him with producing, transporting into the United States, distributing and possessing child pornography. His victims ranged in age from infant to 16 years old.

"A principle part of the FBI’s mission is to protect the American people, and we are especially dedicated to the most vulnerable among us – children," said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. "Phillip Spear despicably violated the human rights of children and stole their innocence. We hope his sentencing of 1,920 months in federal prison sends a strong warning and clear message to others who take part in unspeakable crimes against children."

"This man is exactly where he deserves to be—behind bars for the rest of his life," said General Hood. "His disgusting actions have no place in Mississippi, or anywhere else, and our child exploitation task force and agency partners take their responsibility seriously to get sick predators far away from our innocent children. I am very pleased with the work of all those involved in this case."

The case was investigated by the FBI Jackson Division’s Child Exploitation Task Force, which is made up of agents from the FBI and the Mississippi Attorney General’s Office, deputies from the Prentiss County Sheriff’s Office and prosecutors from the United States Attorney’s Offices in Oxford and Jackson. Assistant United States Attorneys Andrea Jones and Glenda Haynes prosecuted the case for the government.

 

Jackson, Miss - Former Jackson Police Officer Melvin Williams, 48, was sentenced on June 27, 2017, by Senior U.S. District Judge Tom S. Lee, to serve 27 months in federal prison followed by three years of supervised release for bribery, announced Acting U.S. Attorney Harold Brittain and FBI Special Agent in Charge Christopher Freeze. He was also ordered to pay a $1500 fine.

In February, 2016, Williams contacted a local businessman and threatened to execute an arrest warrant if the businessman did not pay Williams a sum of money. During the investigation, the FBI determined that the arrest warrant was not valid. The businessman agreed to cooperate with the FBI and Officer Williams was paid a total of $6,000 over three separate days.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Deputy Criminal Chief Patrick Lemon.

 

Jackson, Miss – Brad Johnson, 27, from Meridian, was sentenced on May 30, 2017, by U.S. District Judge Henry T. Wingate, to 120 months in federal prison, followed by three years of supervised release, and ordered to pay a $1500 fine for being a felon in possession of a firearm, announced Acting U.S. Attorney Harold Brittain.

Johnson pled guilty on March 1, 2017 to possessing two firearms in Meridian on October 7, 2015, at a time in which he was already a convicted felon.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Meridian Police Department. It was prosecuted by Assistant U.S. Attorney Abe McGlothin.

 

Gulfport, Miss – Jason Michael Hayden, 37, of Picayune, entered a guilty plea before U.S. District Judge Sul Ozerden on June 8, 2017, to possession of a firearm by a convicted felon, announced Acting U. S. Attorney Harold Brittain.

Hayden will be sentenced on September 14, 2017 and faces a maximum penalty of 10 years in prison and a $250,000 fine.

The case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives with assistance from the Mississippi Bureau of Narcotics and Mississippi Department of Corrections. It is being prosecuted by Assistant United States Attorney Annette Williams.

 

Jackson, Miss - Courtney Lamar Forbes, age 27, of Jackson, was sentenced on May 23, 2017, by U.S. District Judge William H. Barbour, Jr., to a term of 60 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm, announced Acting U.S. Attorney Harold Brittain. Forbes was also ordered to pay a $3,000 fine.

The investigation revealed that on or about December 1, 2016, Courtney Forbes was in the Jasco Gas Station, creating a disturbance while carrying a firearm. Upon arrival of Jackson Police Department officers, the weapon was recovered from a cardboard box where Forbes attempted to hide it. Forbes was taken into custody and subsequently pled guilty to the charge.

This case was prosecuted by Assistant U.S. Attorney Keesha Middleton and investigated by the Bureau of Alcohol Tobacco Firearms and Explosives.

 

Jackson, Miss - James P. Cheatham III, a former federal corrections officer, pled guilty on June 1, 2017, to accepting bribes to introduce contraband into the federal correctional facility in Yazoo County, announced Acting U.S. Attorney Harold Brittain and Special Agent in Charge Robert Bourbon of the DOJ OIG’s Miami Field Office.

Cheatham, age 24, of Brandon, Mississippi was charged in a one-count federal indictment with being a public official providing a prohibited object to an inmate.

"Greed and corruption have no place in our criminal justice system," stated Special Agent in Charge Robert Bourbon of the DOJ OIG’s Miami Field Office. "We want to thank our law enforcement partners for their continued efforts to ensure that individuals who abuse their position are vigorously investigated, prosecuted, and punished."

Cheatham is scheduled to be sentenced by United States District Judge Daniel P. Jordan III. on September 5, 2017, at 9:00am. He faces a maximum term of 15 years in prison and a $250,000 fine.

This case was investigated by the Department of Justice-Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Erin Chalk.

WASHINGTON – The Justice Department today announced a settlement with the City of Jackson, Mississippi to resolve allegations that the city violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by preventing people in recovery from alcohol and substance abuse from living in group homes in most residential areas.

 

The settlement, which must still be approved by the U.S. District Court for the Southern District of Mississippi, resolves a lawsuit the department filed in September 2016.

 

The United States alleged that the City of Jackson engaged in a pattern or practice of discrimination on the basis of disability by imposing unlawful zoning restrictions on group homes for persons in recovery. The city enforced those restrictions against a group home operated by Urban Rehab, Inc., resulting in an order requiring the home to close and the residents to relocate. Several other homes for persons in recovery were at risk of being closed by the city’s enforcement of its ordinance.

 

As part of the settlement, the city agreed to revise its zoning code to permit persons in recovery to reside in all residential zones and to ease other restrictions on group homes for people with disabilities. The city has agreed to adopt a reasonable accommodation policy, train city employees on the requirements of the FHA and ADA, appoint a Fair Housing Compliance Officer, and report periodically to the Justice Department. The city will pay $100,000 to the owner of Urban Rehab, Inc., $35,000 to the department as a civil penalty, and $50,000 to a settlement fund that will compensate other victims.

 

“Federal law prohibits housing discrimination against people because of their disabilities,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “This settlement is an important commitment by the City of Jackson to bring its zoning code in line with both the Fair Housing Act and the Americans with Disabilities Act.”

 

The case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office of the Southern District of Mississippi.

 

The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe that they have experienced unlawful housing discrimination may contact the Justice Department at 1-800-896-7743, or by e-mail at fairhousing@usdoj.gov.

Three Nigerian nationals, who were extradited from South Africa to the Southern District of Mississippi in July 2015, were sentenced to prison this week for their roles in a large-scale international fraud network.

 

Assistant Attorney General Kenneth A. Blanco, Acting U.S. Attorney Harold Brittain of the Southern District of Mississippi and Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans made the announcement.

 

Oladimeji Seun Ayelotan, 30, was sentenced to 95 years in prison. Rasaq Aderoju Raheem, 31, was sentenced to 115 years in prison. Femi Alexander Mewase, 45, was sentenced to 25 years in prison. After a three-week trial in early 2017, a federal jury found each defendant guilty of offenses involving mail fraud, wire fraud, identity theft, credit card fraud and theft of government property. Ayelotan and Raheem were also found guilty of conspiracies to commit bank fraud and money laundering.

 

A total of 21 defendants were charged in this case, 12 of whom have pleaded guilty to charges related to the conspiracy, and 11 of whom have been sentenced to date. One of the leaders of the conspiracy, Teslim Olarewaju Kiriji, 30, of Nigeria was previously sentenced to 20 years in prison. Six other defendants were previously sentenced to 10 years in prison each for their roles in this conspiracy: Adekunle Adefila, 41, of Nigeria; Anuoluwapo Segun Adegbemigun, 40, of Nigeria; Gabriel Oludare Adeniran, 30, of Nigeria; Olufemi Obaro Omoraka, 27, of Nigeria; Taofeeq Olamilekan Oyelade, 32, of Nigeria; and Olusegun Seyi Shonekan, 34, of Nigeria. Genoveva Farfan, 45, of California, was sentenced to 9 years in prison, and Rhulane Fionah Hlungwane, 26, of South Africa, to five years in prison for their roles in the conspiracy. Olutoyin Ogunlade, 41, of New York, was sentenced to four years in prison. Dennis Brian Ladden, 75, of Wisconsin was sentenced to time served and six months’ home confinement. Susan Anne Villeneuve, 61, of California, pleaded guilty earlier this month and is awaiting sentencing.

 

According to the plea agreements and evidence at trial, the defendants and their co-conspirators carried out numerous internet-based fraud schemes dating back at least to 2001. These schemes involved using unsuspecting victims to cash counterfeit checks and money orders, using stolen credit card numbers to purchase electronics and other merchandise and using stolen personal identification information to take over victims’ bank accounts. As a whole, the conspiracy involved tens of millions of dollars in intended losses.

 

To accomplish their fraud schemes, the conspirators recruited the assistance of U.S. citizens via “romance scams,” in which the perpetrator would typically use a false identity on a dating website to establish a romantic relationship with an unsuspecting victim. According to trial evidence and plea documents, once the perpetrator gained the victim’s trust and affection, the perpetrator would convince the victim to either send money or to help carry out fraud schemes. For example, the defendants admitted that they used romance victims to launder money via Western Union and MoneyGram, to re-package and re-ship fraudulently obtained merchandise and to cash counterfeit checks.

 

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service investigated the case. Significant assistance was also provided by the Criminal Division’s Office of International Affairs, the HSI Cyber Crimes Center, HSI Attachés in Pretoria, South Africa and Dakar, Senegal, the U.S. Marshals Service’s International Investigations Branch and the Southern District of Mississippi District Office, the South African Police Service (SAPS) Directorate of Priority Crimes Investigation (DPCI) Electronic Crimes Unit, the SAPS Interpol Extradition Unit, the South African National Prosecution Authority and the South African Department of Justice and Constitutional Development. Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section, Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Annette Williams of the Southern District of Mississippi tried the case.

 

If you believe that you may have been a victim of criminal fraud committed by any of the defendants, please go to http://www.justice.gov/usao-sdms/scams and complete the questionnaire. Defendants allegedly used the following email addresses and names to perpetuate the scheme:

ADDIEP01@YAHOO.COM                        

 

ANITA.LAUREN01@GMAIL.COM

ANITA.LAUREN1@GMAIL.COM            

EMPLOYMENTOFFERS007@YAHOO.COM

FAYEKIMBERLY@YMAIL.COM            

FAYEKIMBERLY19@YAHOO.COM       

FEMI_OMORAKA@YAHOO.COM          

FMPLUST12@GMAIL.COM          

FNCYJEN@YAHOO.COM                         

FOLLYEDWARDS@YAHOO.COM

GENTILEMARK186@GMAIL.COM         

GERVINOJ@YAHOO.COM                   

GERVINOJ11@GMAIL.COM                    

GLENNSATTELBERG1961@GMAIL.COM

HORLAMI84@YAHOO.COM                    

JOHNVINO56@GMAIL.COM       

JONES_DICKSON@YAHOO.COM

JUSTIN.WORSHAM@YAHOO.COM

KAREN_ROB01@YAHOO.COM              

KEVINSMITH3949@YAHOO.COM         

LMG.ORCHID1827@GMAIL.COM          

LLOYDFARELL0012008@YAHOO.COM

MARCHAS1963@GMAIL.COM                

MARK2GENTLE@YAHOO.COM

MATT.MILLER4070@GMAIL.COM

 

MAXWELLSAMUEL59@YAHOO.COM

MIMICOLE001@YAHOO.COM                

MOBICOALZ@GMAIL.COM        

OLADIMEJISEUN2008@YAHOO.COM   

OLUWA_NISHOLA@YAHOO.COM

PETERLAWSON5050@YAHOO.COM     

RASAQ_ADEROJU@YAHOO.COM

RDARWIN322@GMAIL.COM                  

RDARWIN324@GMAIL.COM

REDARMY_TX_HOST@YAHOO.COM   

RHULANEF@YAHOO.COM

RWASSER@ROCKETMAIL.COM            

SEGSEA121@YAHOO.COM

SMITHKEVIN902@GMAIL.COM             

SPOWELL26AL@GMAIL.COM            

SPOWELL26AL3@YAHOO.COM            

STACYADAMS20009@YAHOO.COM

STARENTERPRISE74@YAHOO.COM     

SUSANV1418@YAHOO.COM      

TESCOSG@YAHOO.COM

Stacy Adams                                                  

Marlon Chase             

Regina Darwin                                               

Folly Edwards                                               

Kimberly Faye                                               

Lorene M. Garrett                                          

Mark Gentile                                                  

John Gervino                                      

Dickson Jones                                                

Anita Lauren

Samuel Maxwell                                            

Mark Miller                                       

Adeline Piper                                                 

Sarah Powell                                      

Karen Robinson                                             

Glenn Sattelberg                                            

Kevin Smith                                                   

Mark Smith                                        

Richard Wasser                                              

Justin Worsham

Any information that you provide through the questionnaire may be helpful in the criminal investigation and prosecution of this case. A federal investigator may contact you with additional questions or to request documents you may have. Please note that submitting the questionnaire is not a substitute for consulting with your own attorney to determine what actions and remedies may be available to you through civil litigation. If you have any questions related to this matter that are not addressed at the above websites, you may contact federal law enforcement authorities at USAMSS.Scams@usdoj.gov.

 

 

Gulfport, Miss – Three Nigerian nationals, who were extradited from South Africa to the Southern District of Mississippi in July 2015, were sentenced to prison this week for their roles in a large-scale international fraud network.

Acting U.S. Attorney Harold Brittain of the Southern District of Mississippi and Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans made the announcement.

Oladimeji Seun Ayelotan, 30, was sentenced to 95 years in prison; Rasaq Aderoju Raheem, 31, was sentenced to 115 years in prison; and Femi Alexander Mewase, 45, was sentenced to 25 years in prison. After a three-week trial in early 2017, a federal jury found each defendant guilty of offenses involving mail fraud, wire fraud, identity theft, credit card fraud and theft of government property. Ayelotan and Raheem were also found guilty of conspiracies to commit bank fraud and money laundering.

A total of 21 defendants were charged in this case, 12 of whom have pleaded guilty to charges related to the conspiracy, and 11 of whom have been sentenced to date. One of the leaders of the conspiracy, Teslim Olarewaju Kiriji, 30, of Nigeria, was previously sentenced to 20 years in prison. Six other defendants were previously sentenced to 10 years in prison each for their roles in this conspiracy: Adekunle Adefila, 41, of Nigeria; Anuoluwapo Segun Adegbemigun, 40, of Nigeria; Gabriel Oludare Adeniran, 30, of Nigeria; Olufemi Obaro Omoraka, 27, of Nigeria; Taofeeq Olamilekan Oyelade, 32, of Nigeria; and Olusegun Seyi Shonekan, 34, of Nigeria.

Genoveva Farfan, 45, of California, was sentenced to 9 years in prison, and Rhulane Fionah Hlungwane, 26, of South Africa, was sentenced to five years in prison for their roles in the conspiracy. Olutoyin Ogunlade, 41, of New York, was sentenced to four years in prison. Dennis Brian Ladden, 75, of Wisconsin, was sentenced to time served and six months’ home confinement. Susan Anne Villeneuve, 61, of California, pleaded guilty earlier this month and is awaiting sentencing.

According to the plea agreements and evidence at trial, the defendants and their co-conspirators carried out numerous internet-based fraud schemes dating back at least to 2001. These schemes involved using unsuspecting victims to cash counterfeit checks and money orders, using stolen credit card numbers to purchase electronics and other merchandise and using stolen personal identification information to take over victims’ bank accounts. As a whole, the conspiracy involved tens of millions of dollars in intended losses.

To accomplish their fraud schemes, the conspirators recruited the assistance of U.S. citizens via "romance scams," in which the perpetrator would typically use a false identity on a dating website to establish a romantic relationship with an unsuspecting victim. According to trial evidence and plea documents, once the perpetrator gained the victim’s trust and affection, the perpetrator would convince the victim to either send money or to help carry out fraud schemes. For example, the defendants admitted that they used romance victims to launder money via Western Union and MoneyGram, to re-package and re-ship fraudulently obtained merchandise and to cash counterfeit checks.

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service investigated the case. Significant assistance was also provided by the Criminal Division’s Office of International Affairs, the HSI Cyber Crimes Center, HSI Attachés in Pretoria, South Africa and Dakar, Senegal, the U.S. Marshals Service’s International Investigations Branch and the Southern District of Mississippi District Office, the South African Police Service (SAPS) Directorate of Priority Crimes Investigation (DPCI) Electronic Crimes Unit, the SAPS Interpol Extradition Unit, the South African National Prosecution Authority and the South African Department of Justice and Constitutional Development. Assistant U.S. Attorney Annette Williams of the Southern District of Mississippi, Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section, and Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section tried the case.

If you believe that you may have been a victim of criminal fraud committed by any of the defendants, please go to http://www.justice.gov/usao-sdms/scams and complete the questionnaire. Defendants allegedly used the following email addresses and names to perpetuate the scheme:

  ADDIEP01@YAHOO.COM                   ANITA.LAUREN01@GMAIL.COM

  ANITA.LAUREN1@GMAIL.COM           EMPLOYMENTOFFERS007@YAHOO.COM

  FAYEKIMBERLY@YMAIL.COM              FAYEKIMBERLY19@YAHOO.COM

  FEMI_OMORAKA@YAHOO.COM          FMPLUST12@GMAIL.COM

  FNCYJEN@YAHOO.COM                     FOLLYEDWARDS@YAHOO.COM

  GENTILEMARK186@GMAIL.COM        GERVINOJ@YAHOO.COM

  GERVINOJ11@GMAIL.COM                 GLENNSATTELBERG1961@GMAIL.COM

  HORLAMI84@YAHOO.COM                JOHNVINO56@GMAIL.COM

  JONES_DICKSON@YAHOO.COM         JUSTIN.WORSHAM@YAHOO.COM

  KAREN_ROB01@YAHOO.COM           KEVINSMITH3949@YAHOO.COM

  LMG.ORCHID1827@GMAIL.COM       LLOYDFARELL0012008@YAHOO.COM

  MARCHAS1963@GMAIL.COM           MARK2GENTLE@YAHOO.COM

  MATT.MILLER4070@GMAIL.COM      MIMICOLE001@YAHOO.COM

  MAXWELLSAMUEL59@YAHOO.COM  OLADIMEJISEUN2008@YAHOO.COM

  MOBICOALZ@GMAIL.COM                OLUWA_NISHOLA@YAHOO.COM

  PETERLAWSON5050@YAHOO.COM   RASAQ_ADEROJU@YAHOO.COM

  RDARWIN322@GMAIL.COM              RDARWIN324@GMAIL.COM

  REDARMY_TX_HOST@YAHOO.COM  RHULANEF@YAHOO.COM

  RWASSER@ROCKETMAIL.COM          SEGSEA121@YAHOO.COM

  SMITHKEVIN902@GMAIL.COM         SPOWELL26AL@GMAIL.COM

  SPOWELL26AL3@YAHOO.COM         STACYADAMS20009@YAHOO.COM

  STARENTERPRISE74@YAHOO.COM   SUSANV1418@YAHOO.COM

  TESCOSG@YAHOO.COM

  Stacy Adams Marlon Chase              Regina Darwin Folly Edwards

  Kimberly Faye Lorene M. Garrett      Mark Gentile John Gervino

  Dickson Jones Anita Lauren             Samuel Maxwell Mark Miller

  Adeline Piper Sarah Powell              Karen Robinson Glenn Sattelberg

  Kevin Smith Mark Smith                  Richard Wasser Justin Worsham

Any information that you provide through the questionnaire may be helpful in the criminal investigation and prosecution of this case. A federal investigator may contact you with additional questions or to request documents you may have. Please note that submitting the questionnaire is not a substitute for consulting with your own attorney to determine what actions and remedies may be available to you through civil litigation. If you have any questions related to this matter that are not addressed at the above websites, you may contact federal law enforcement authorities at USAMSS.Scams@usdoj.gov.

 

 

Jackson, Miss – Christopher B. Epps, former Commissioner for the Mississippi Department of Corrections, was sentenced today by U.S. District Judge Henry Wingate to 235 months in federal prison, announced Acting U.S. Attorney Harold Brittain and FBI Special Agent in Charge Christopher Freeze. He was also ordered to pay a $100,000 fine.

Christopher Epps previously pleaded guilty to one count of money laundering conspiracy and one count of filing a false tax return. He faced a maximum sentenced of 23 years.

This case was investigated by the FBI, IRS-Criminal Investigation, U.S. Postal Inspection Service, Mississippi State Auditor’s Office, and the Leake County Sheriff’s Office.

Assistant U.S. Attorneys Darren LaMarca and Pat Lemon, as well as financial analyst Kim Mitchell, prosecuted the case.

 

Gulfport, Miss – A California woman pled guilty this week in an international fraud case that started in 2014 when sixteen individuals were arrested in South Africa, Canada, California, Wisconsin, New York and Indiana, pursuant to an eight-count federal indictment filed in the Southern District of Mississippi, announced Acting U.S. Attorney Harold Brittain and Raymond Parmer, Jr., Special Agent in Charge of Immigration Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New Orleans.

Susan Ann Villeneuve, 61, of Escalon, California, entered guilty pleas on May 15, 2017 to conspiracy to commit mail and wire fraud and aggravated identity theft. This case involved a West African transnational organized crime enterprise involved in numerous complex financial fraud schemes over the internet. The mass marketing fraud included romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs.

The investigation was initiated in October 2011 by HSI agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars. Villeneuve was responsible for sending out over $26,000,000 in counterfeit checks to victims across the country by USPS, UPS and FedEx. She will be sentenced on August 22, 2017 by U.S. District Judge Sul Ozerden in Gulfport, and faces a maximum penalty of five years in prison on the conspiracy charge and an additional two years in prison on the aggravated identity theft charge.

The investigation was led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto Police, HSI Cyber Crimes Center,

Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.

The case in Mississippi is being prosecuted by Assistant U.S. Attorney Annette Williams, Conor Mulroe, Trial Attorney of the Department of Justice Organized Crime and Gang Section and Peter Roman, Senior Counsel of the Computer Crimes Intellectual Property Section.

If you believe you were the victim of criminal fraud committed by any of the defendants, you may contact the government at the email address USAMSS.Scams@usdoj.gov.

WASHINGTON – Joshua Brandon Vallum, 29, of Lucedale, Mississippi, was sentenced today in the Southern District of Mississippi to 49 years in prison for assaulting and murdering Mercedes Williamson because she was a transgender woman, announced Attorney General Jeff Sessions, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Harold Brittain of the Southern District of Mississippi and Special Agent in Charge Christopher Freeze of the FBI’s Jackson Division.

 

Vallum pleaded guilty on Dec. 21, 2016, to a one-count Information that charged him with a violation of the Matthew Shepard, James Byrd Jr. Hate Crimes Prevention Act, a federal hate crime statute. This is the first case prosecuted under the Hate Crimes Prevention Act involving a victim targeted because of gender identity.

 

During his plea hearing, Vallum admitted that he had a consensual sexual relationship with Williamson and that he knew Williamson was transgender. During his romantic relationship with Williamson, Vallum kept the sexual nature of the relationship, as well as Williamson’s transgender status, secret from his family, friends, and other members of the Latin Kings and Queens Nation gang to which he belonged. After Vallum terminated his romantic and sexual relationship with Williamson, he had no contact with her until May 2015.

 

Vallum admitted, as part of his guilty plea, that on May 28, 2015, he decided to kill Williamson after learning that a friend had discovered Williamson was transgender. Vallum believed he would be in danger if other Latin Kings members found out that he had engaged in a consensual sexual relationship with a transgender woman. On May 29, 2015, Vallum located Williamson at her residence in Alabama and used false pretenses to lure Williamson into his car so he could drive her to Mississippi. Vallum drove Williamson to his father’s residence in Lucedale, Mississippi. Vallum admitted that he then used a stun gun to electrically shock Williamson in the chest, repeatedly stabbed Williamson, and struck Williamson with a hammer until she died.

 

After the murder, Vallum attempted to dispose of the murder weapons and other evidence linking him to the crime. Vallum also falsely claimed to law enforcement that he killed Williamson in a panic after discovering Williamson was transgender. In pleading guilty, Vallum acknowledged that he had lied about the circumstances surrounding Williamson’s death, and that he would not have killed Williamson if she was not transgender.

 

“Today’s sentencing reflects the importance of holding individuals accountable when they commit violent acts against transgender individuals,” said Attorney General Sessions. “The Justice Department will continue its efforts to vindicate the rights of those individuals who are affected by bias motivated crimes.”

 

“Crimes motivated by hate have devastating effects on the victims, their families and community, but also leave a blemish on our society as a whole,” said Special Agent in Charge Freeze. “The FBI's mission is to protect the American people and uphold the Constitution of the United States, and we will continue to pursue that mission in Mississippi. The outcome of this case would not have been possible without the partnership between local, state and federal law enforcement.”

 

This case was the result of a cooperative effort among the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Mississippi, and the Office of the District Attorney for Mississippi’s 19th Judicial District. The case was investigated by the FBI Jackson Division’s Pascagoula Safe Streets Task Force and the George County, Mississippi Sheriff’s Office. It is being prosecuted by Trial Attorney Julia Gegenheimer and Special Litigation Counsel Sheldon Beer of the Civil Rights Division of the Department of Justice, and Jay Golden of the U.S. Attorney’s Office for the Southern District of Mississippi.

Joshua Brandon Vallum, 29, of Lucedale, Mississippi, was sentenced today in the Southern District of Mississippi to 49 years in prison for assaulting and murdering Mercedes Williamson because she was a transgender woman, announced Attorney General Jeff Sessions, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Harold Brittain of the Southern District of Mississippi and Special Agent in Charge Christopher Freeze of the FBI’s Jackson Division.

Vallum pleaded guilty on Dec. 21, 2016, to a one-count Information that charged him with a violation of the Matthew Shepard, James Byrd Jr. Hate Crimes Prevention Act, a federal hate crime statute.  This is the first case prosecuted under the Hate Crimes Prevention Act involving a victim targeted because of gender identity.

During his plea hearing, Vallum admitted that he had a consensual sexual relationship with Williamson and that he knew Williamson was transgender.  During his romantic relationship with Williamson, Vallum kept the sexual nature of the relationship, as well as Williamson’s transgender status, secret from his family, friends, and other members of the Latin Kings and Queens Nation gang to which he belonged.  After Vallum terminated his romantic and sexual relationship with Williamson, he had no contact with her until May 2015.  

Vallum admitted, as part of his guilty plea, that on May 28, 2015, he decided to kill Williamson after learning that a friend had discovered Williamson was transgender. Vallum believed he would be in danger if other Latin Kings members found out that he had engaged in a consensual sexual relationship with a transgender woman.  On May 29, 2015, Vallum located Williamson at her residence in Alabama and used false pretenses to lure Williamson into his car so he could drive her to Mississippi.  Vallum drove Williamson to his father’s residence in Lucedale, Mississippi.  Vallum admitted that he then used a stun gun to electrically shock Williamson in the chest, repeatedly stabbed Williamson, and struck Williamson with a hammer until she died. 

After the murder, Vallum attempted to dispose of the murder weapons and other evidence linking him to the crime.  Vallum also falsely claimed to law enforcement that he killed Williamson in a panic after discovering Williamson was transgender.  In pleading guilty, Vallum acknowledged that he had lied about the circumstances surrounding Williamson’s death, and that he would not have killed Williamson if she was not transgender.      

“Today’s sentencing reflects the importance of holding individuals accountable when they commit violent acts against transgender individuals,” said Attorney General Jeff Sessions.  “The Justice Department will continue its efforts to vindicate the rights of those individuals who are affected by bias motivated crimes.” 

“Crimes motivated by hate have devastating effects on the victims, their families and community, but also leave a blemish on our society as a whole,” said Special Agent in Charge Freeze.  “The FBI's mission is to protect the American people and uphold the Constitution of the United States, and we will continue to pursue that mission in Mississippi. The outcome of this case would not have been possible without the partnership between local, state and federal law enforcement.”

This case was the result of a cooperative effort among the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Mississippi, and the Office of the District Attorney for Mississippi’s 19th Judicial District.   The case was investigated by the FBI Jackson Division’s Pascagoula Safe Streets Task Force and the George County, Mississippi Sheriff’s Office.  It is being prosecuted by Trial Attorney Julia Gegenheimer and Special Litigation Counsel Sheldon Beer of the Civil Rights Division of the Department of Justice, and Jay Golden of the U.S. Attorney’s Office for the Southern District of Mississippi.

 

Jackson, Miss – Marvin Naylor, 46, from Daleville, Mississippi, was sentenced on May 11, 2017, by U.S. District Judge Henry T. Wingate, to 120 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm, Acting U.S. Attorney Harold Brittain announced today. Naylor was also ordered to pay a $1500.00 fine.

Naylor pled guilty on January 9, 2017 to possessing three firearms at a time in which he was already a convicted felon. In November, 2015, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with the Mississippi Bureau of Narcotics and the Lauderdale County Sheriff’s Department, executed an arrest and search warrant on Naylor’s home. During the search and arrest, law enforcement officers were able to locate three firearms, two of which were stolen, along with several rounds of ammunition. Naylor was arrested and admitted to possessing the firearms.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives along with the Mississippi Bureau of Narcotics and the Lauderdale County Sheriff’s Department. This case was prosecuted by Assistant U.S. Attorney Abe McGlothin, Jr.

 

Jackson, Miss - The U.S. Department of Justice and its Civil Rights Division has partnered with the Federal Emergency Management Agency’s U.S. Fire Administration to promote Arson Awareness Week 2017 (May 7-13), with a focus on preventing arson at houses of worship. An average of 103 arsons of houses of worship occurred per year from 2000 to 2015.

In coordination with Arson Awareness Week, The U.S. Attorney’s Office for the Southern District of Mississippi organized an assessment at a local house of worship which included the Department of Homeland Security's Protective Security Advisor who conducted security reviews and offered recommendations about arson, active shooter and other risks.

The Justice Department enforces a number of federal statutes protecting places of worship from attack, including 18 U.S.C. § 247, known as the Church Arson Prevention Act, which was passed in the 1990s in response to a sharp increase in church arsons. That law makes it a federal crime to target religious property because of the religion or race of the congregation. Arson cases in recent years include the prosecution of three men for burning down an African-American Pentecostal Church in Springfield, Massachusetts, which led to multi-year sentences for each defendant; a guilty plea leading to a 20-year sentence in the arson of a Toledo, Ohio mosque; and the ongoing prosecution of a man accused of plotting to bomb a synagogue in Aventura, Florida last year.

FEMA and the Department of Justice have materials available to help congregations, community organizations and local law enforcement and fire safety officials to increase arson awareness and hold events highlighting proactive steps that can be taken to try to reduce house of worship arson. These materials are available at the Arson Awareness Week homepage, www.usfa.fema.gov/aaw.

WASHINGTON – Mahant Singh, operator of a convenience store and gas station in Yazoo City, Mississippi, pleaded guilty today to a criminal violation of the Clean Water Act. Singh admitted to discharging the contents of an underground fuel storage tank into a sewage line connected to the Yazoo City wastewater treatment system, which created a fire or explosion hazard and risked contaminating local water supplies, announced Acting Assistant Attorney General Jeffrey H. Wood for the U.S. Department of Justice Environment and Natural Resources Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.

 

As charged in the criminal information, at the end of April 2016, water from rainstorms leaked into one of the underground gasoline storage tanks at the 49 Quick Stop though an inadequately maintained tank cap. The presence of water in the fuel storage tank triggered an automatic shut off, preventing the dispensing of gasoline. When there had been a similar water leak into a Quick Stop tank about a year earlier, in March 2015, defendant Singh arranged for a commercial tank service company to remove the water and gasoline mixture from his tank and to dispose of it properly, by separating the water and gasoline.

 

Instead of removing the gasoline and water mixture from his tank, as he had a year earlier, on or about April 28, 2016, defendant Singh pumped some of the content of the contaminated Quick Stop tank into an opening in the sewage line. Singh did so by extending a hose to the bottom of the tank where water might collect underneath the lighter gasoline. The other end of the hose he placed into the sewer pipe. Singh turned on a pump connected to the hoses, forcing liquid from the tank into the sewer line while he waited on customers at the Quick Stop store. In so doing, defendant Singh discharged liquid from the gasoline storage tank into the Yazoo City wastewater treatment system, thereby negligently introducing a pollutant into the system which created a fire or explosion hazard.

 

“The unpermitted discharge of gasoline-laden water into a community’s water treatment system is illegal, dangerous, and can also place the health of the community at risk,” said Acting Assistant Attorney General Wood. “These Clean Water Act charges, along with the guilty plea, should send a strong message that these unlawful acts, which place the public at risk, harm the environment, and damage local infrastructure, will not be tolerated.”

 

“We are fortunate that the illegal disposal of contaminated gasoline did not cause an explosion or injury,” said Director Chris Sanders of the Mississippi Department of Environmental Quality's (MDEQ) Office of Pollution Control. “A quick response by Yazoo City and MDEQ officials to identify the source of the discharge limited the risk of harm to the public and to the city’s sewage treatment system. However, numerous buildings, including a school, had to be evacuated when gasoline fumes were detected in several areas throughout the city. Cooperation between EPA’s Criminal Investigation Division and MDEQ to this illegal disposal was essential to these charges announced today. The State of Mississippi, through MDEQ, works closely with EPA in pursuing criminal enforcement of pollution prevention statutes.”

Federal law authorizes a Class A misdemeanor under the Clean Water Act for any person who negligently introduces into a publicly owned treatment works any pollutant or hazardous substance which the defendant person knew or reasonably should have known could cause personal injury or property damage or to introduce into the system any material other than in compliance with all applicable Federal, State, or local requirements or permits. Under the Clean Water Act, defendant Singh faces up to one year in prison; a term of supervised release of not more than five years; and a fine of up to $100,000.

 

Sentencing is scheduled for July 17, 2017.

 

Acting Assistant Attorney General Wood and Acting U.S. Attorney Brittain commended the efforts of the Environmental Protection Agency and state regulatory agencies for their diligent work in the investigation of this matter.

Mahant Singh, operator of a convenience store and gas station in Yazoo City, Mississippi, pleaded guilty today to a criminal violation of the Clean Water Act. Singh admitted to discharging the contents of an underground fuel storage tank into a sewage line connected to the Yazoo City wastewater treatment system, which created a fire or explosion hazard and risked contaminating local water supplies, announced Acting Assistant Attorney General Jeffrey H. Wood for the U.S. Department of Justice Environment and Natural Resources Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.

As charged in the criminal information, at the end of April 2016, water from rainstorms leaked into one of the underground gasoline storage tanks at the 49 Quick Stop though an inadequately maintained tank cap. The presence of water in the fuel storage tank triggered an automatic shut off, preventing the dispensing of gasoline. When there had been a similar water leak into a Quick Stop tank about a year earlier, in March 2015, defendant Singh arranged for a commercial tank service company to remove the water and gasoline mixture from his tank and to dispose of it properly, by separating the water and gasoline.

Instead of removing the gasoline and water mixture from his tank, as he had a year earlier, on or about April 28, 2016, defendant Singh pumped some of the content of the contaminated Quick Stop tank into an opening in the sewage line. Singh did so by extending a hose to the bottom of the tank where water might collect underneath the lighter gasoline. The other end of the hose he placed into the sewer pipe. Singh turned on a pump connected to the hoses, forcing liquid from the tank into the sewer line while he waited on customers at the Quick Stop store. In so doing, defendant Singh discharged liquid from the gasoline storage tank into the Yazoo City wastewater treatment system, thereby negligently introducing a pollutant into the system which created a fire or explosion hazard.

“The unpermitted discharge of gasoline-laden water into a community’s water treatment system is illegal, dangerous, and can also place the health of the community at risk,” said Acting Assistant Attorney General Wood. “These Clean Water Act charges, along with the guilty plea, should send a strong message that these unlawful acts, which place the public at risk, harm the environment, and damage local infrastructure, will not be tolerated.”

“We are fortunate that the illegal disposal of contaminated gasoline did not cause an explosion or injury,” said Director Chris Sanders of the Mississippi Department of Environmental Quality's (MDEQ) Office of Pollution Control. “A quick response by Yazoo City and MDEQ officials to identify the source of the discharge limited the risk of harm to the public and to the city’s sewage treatment system. However, numerous buildings, including a school, had to be evacuated when gasoline fumes were detected in several areas throughout the city. Cooperation between EPA’s Criminal Investigation Division and MDEQ to this illegal disposal was essential to these charges announced today. The State of Mississippi, through MDEQ, works closely with EPA in pursuing criminal enforcement of pollution prevention statutes.”

Federal law authorizes a Class A misdemeanor under the Clean Water Act for any person who negligently introduces into a publicly owned treatment works any pollutant or hazardous substance which the defendant person knew or reasonably should have known could cause personal injury or property damage or to introduce into the system any material other than in compliance with all applicable Federal, State, or local requirements or permits. Under the Clean Water Act, defendant Singh faces up to one year in prison; a term of supervised release of not more than five years; and a fine of up to $100,000.

Sentencing is scheduled for July 17, 2017.

Acting Assistant Attorney General Wood and Acting U.S. Attorney Brittain commended the efforts of the Environmental Protection Agency and state regulatory agencies for their diligent work in the investigation of this matter.

 

Jackson, Miss - Former federal corrections officer Julius Pearson, 26, from Madison County, Mississippi, pleaded guilty today before Senior U.S. District Judge William H. Barbour, to bribery, announced Acting U.S. Attorney Harold Brittain.

The investigation revealed that, beginning in approximately August, 2016, Julius Pearson began smuggling tobacco into the Federal Prison in Yazoo County where he was employed as a corrections officer. Pearson was paid approximately ten thousand dollars by inmates and others for delivering the tobacco to inmates inside the facility.

Pearson will be sentenced on August 15, 2017, and faces a maximum penalty of 15 years in prison and a $250,000 fine. The case is being prosecuted by Deputy Criminal Chief Patrick Lemon and was investigated by the Federal Bureau of Investigation and the U.S. Department of Justice, Office of Inspector General.

 

Jackson, Miss – Tiffany Brown, 35, of Jackson, was sentenced on April 21, 2017, to 48 months in federal prison followed by three years of supervised release for conspiracy to defraud the United States and theft of government funds, announced Acting U.S. Attorney Harold Brittain and IRS-Criminal Investigation Special Agent in Charge Jerome McDuffie. Brown previously pled guilty to the charge.

As part of the conspiracy, Brown and other co-conspirators would cause the presentation of false claims to the IRS by preparing and submitting false U.S. Individual Income Tax Returns, Forms 1040 for tax year 2009 through 2012, using stolen identities. Brown would then direct the refunds to be deposited into the bank accounts of other co-conspirators involved in the scheme. The 865 false claims totaled over $1,000,000 in fraud. She was ordered to pay $1,086,026.00 in restitution.

This case was investigated by IRS- Criminal Investigation and the U.S. Secret Service. It was prosecuted by Assistant U.S. Attorney Mary Helen Wall.

WASHINGTON – Two Gulfport, Mississippi men were sentenced to prison today for charges related to preparing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.

 

Allen Brice was sentenced to serve 63 months in prison. He was convicted at trial of seven counts of aiding in the preparation of false tax returns. Jeremi Washington was sentenced to serve 46 months in prison. He previously pleaded guilty to conspiring to defraud the United States.

 

According to court documents and proceedings, Washington was a tax return preparer who owned and operated Flash Financial, and Brice was Washington’s sole employee. From 2009 through 2011, the two men filed fraudulent tax returns for multiple clients with the Internal Revenue Service (IRS) that included bogus education expenses and retirement contributions, which they never discussed with their clients. As a result, the clients received refunds they were not entitled to.

 

In addition to the terms of prison imposed, Brice and Washington were ordered to serve one and three years of supervised release. Brice was ordered to pay restitution to the IRS in the amount of $1,919,820.20 and Washington was ordered to pay $1,954,352.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorneys Christopher Wansley and Jay Golden and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.

 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

Two Gulfport, Mississippi men were sentenced to prison today for charges related to preparing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.

 

Allen Brice was sentenced to serve 63 months in prison. He was convicted at trial of seven counts of aiding in the preparation of false tax returns. Jeremi Washington was sentenced to serve 46 months in prison. He previously pleaded guilty to conspiring to defraud the United States.

 

According to court documents and proceedings, Washington was a tax return preparer who owned and operated Flash Financial, and Brice was Washington’s sole employee. From 2009 through 2011, the two men filed fraudulent tax returns for multiple clients with the Internal Revenue Service (IRS) that included bogus education expenses and retirement contributions, which they never discussed with their clients. As a result, the clients received refunds they were not entitled to.

 

In addition to the terms of prison imposed, Brice and Washington were ordered to serve one and three years of supervised release. Brice was ordered to pay restitution to the IRS in the amount of $1,919,820.20 and Washington was ordered to pay $1,954,352.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorneys Christopher Wansley and Jay Golden and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.

 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

 

GULFPORT, MS - Lonnie M. Ray, the president of Cowart Seafood, Inc., of Bay St. Louis, Mississippi, pled guilty today to charges that include conspiracy to violate the Lacey Act, announced Acting U.S. Attorney Harold Brittain, Assistant Director Tracy A. Dunn with the National Oceanic and Atmospheric Administration, Special Agent in Charge Louis Santiago with the U.S. Fish and Wildlife Service; Keith Davis with the Mississippi Department of Marine Resources, Office of Marine Patrol; and Resident Agent in Charge Jason Denham with the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Lacey Act makes it unlawful to sell in interstate commerce any fish taken in violation of state law.

 

Lonnie Ray pled guilty to one count of conspiracy to violate the Lacey Act and one count of illegal possession of a short-barreled shotgun. In the indictment to which Ray pled guilty, he was charged with conspiring to violate the Lacey Act by selling fish to Louisiana seafood buyers that was taken in violation of Mississippi law. According to Mississippi law, seafood dealers are required to submit information about each seafood purchase from a commercial fisherman on a form known as a trip ticket that is provided by the Mississippi Department of Marine Resources (“DMR”). Ray admitted violating this requirement by failing to report seafood purchases to DMR and by buying fish from recreational fisherman in violation of state law. The Lacey Act charges against Shelley H. Ray, who was also named in the indictment, were dismissed. Ray also admitted owning a 12-gauge double-barrel shotgun, having a barrel of less than l8 inches in length, which was not registered to him in the National Firearms Registration and Transfer Record.

 

Ray will be sentenced by U.S. District Judge Sul Ozerden on Tuesday, July 25th, 2017. He faces a maximum penalty of five years in prison and a $250,000 fine for the Lacey Act conspiracy, and a maximum penalty of ten years in prison and a $250,000 fine for the firearm charge.

 

Acting United States Attorney Harold Brittain praised the efforts of the federal and state investigative agencies for their diligent work in the investigation of this matter.

WASHINGTON – A Gulfport, Mississippi tax return preparer pleaded guilty today to obstructing the internal revenue laws and aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.

 

According to documents filed with the court and information presented at the plea hearing, Doris Kelley, 65, of Gulfport, Mississippi, operated a tax return preparation business from her home in Gulfport. Kelley instructed several of her clients, who owed income taxes to the Internal Revenue Service (IRS), to write payment checks directly to her rather than to the IRS. Kelley kept these funds for herself and used most of the money to gamble at local casinos. Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley made hundreds of thousands of dollars from her scheme and caused a tax loss of more than $495,000.

 

The sentencing hearing is scheduled for July 7. Kelley faces a statutory maximum sentence of three years in prison on both counts. She also faces a term of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who are prosecuting this case.

 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

A Gulfport, Mississippi tax return preparer pleaded guilty today to obstructing the internal revenue laws and aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.

 

According to documents filed with the court and information presented at the plea hearing, Doris Kelley, 65, of Gulfport, Mississippi, operated a tax return preparation business from her home in Gulfport. Kelley instructed several of her clients, who owed income taxes to the Internal Revenue Service (IRS), to write payment checks directly to her rather than to the IRS. Kelley kept these funds for herself and used most of the money to gamble at local casinos. Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley made hundreds of thousands of dollars from her scheme and caused a tax loss of more than $495,000.

 

The sentencing hearing is scheduled for July 7. Kelley faces a statutory maximum sentence of three years in prison on both counts. She also faces a term of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who are prosecuting this case.

 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

 

 

Gulfport, Miss – On April 4, 2017, Chief U.S. District Judge Louis Guirola, Jr. sentenced Destin Dominique Johnson to 48 months in prison for being a felon in possession of a firearm, U. S. Attorney Harold H. Brittain announced today. Johnson was also ordered to pay a $3,000 fine and serve three years of supervised release when released from prison.

Johnson, 27, of Bay St. Louis, Mississippi, was in possession of a firearm in June, 2016. He has been incarcerated since that time. The Court ordered the federal sentence to run concurrently with a state sentence from Hancock County and recommended Johnson attend the Bureau of Prisons 500-hour drug treatment program while incarcerated.

The Bureau of Alcohol Tobacco Firearms and Explosives investigated this case. It was prosecuted by Assistant United States Attorney Annette Williams.

 

Jackson, Miss. – Kayla Paul Lindsey, 48, of Rankin County, Mississippi, entered a guilty plea today in U.S. District Court to conspiracy to make false statements to defraud the Federal Home Loan Bank of Dallas, announced Acting U.S. Attorney Harold Brittain.

Lindsey is a former Certified Public Accountant who has been practicing in the Jackson area. Her co-conspirator, Marlene Solomon Williams, also of Rankin County, previously entered a guilty plea to the conspiracy charge and is awaiting sentencing.

The investigation in this case revealed that Lindsey and Williams administered a grant from the Federal Home Loan Bank of Dallas that was intended to provide home repairs for low- to moderate-income households. In pleading guilty, Lindsey and Williams admitted they hired contractors to perform repairs under the grant, and instructed the contractors to inflate their invoices by 20%, which was kicked back to Lindsey and Williams. The fraudulently inflated invoices were submitted to the Federal Home Loan Bank of Dallas through its local member institution, Trustmark Bank. Lindsey and Williams were paid over $186,000 in kickbacks generated by the fraudulent invoices during the course of the conspiracy.

"Today’s guilty plea is evidence that those who choose to participate in fraudulent schemes in an effort to steal from grant programs intended to help homeowners will be brought to justice," said Special Agent in Charge Timothy Mowery with the Federal Housing Finance Agency Office of Inspector General. "The FHFA OIG, together with our law enforcement partners, will vigorously investigate allegations of fraud and will ensure that those who engage in such acts will be held accountable."

Lindsey will be sentenced by U.S. District Judge Tom S. Lee on June 29, 2017, and she faces a maximum penalty of five years in prison and a $250,000 fine. Both defendants will be required to repay all of the illegal proceeds as mandatory restitution in this case.

The case is being prosecuted by Assistant United States Attorney Dave Fulcher. It was investigated by the Federal Housing Finance Agency Office of the Inspector General, the Federal Bureau of Investigation, USDA Office of Inspector General, and the Mississippi Attorney General’s Office.

 

Jackson, Miss – On Wednesday, March 29, 2017, Mark Randall Jones, 52, of Los Angeles, California, was found guilty, after a three-day jury trial, of conspiring to possess with intent to distribute cocaine, announced Acting U.S. Attorney Harold Brittain and Inspector in Charge Adrian Gonzalez with the U.S. Postal Inspection Service, Houston Division.

Mark Randall Jones was charged in a two-count federal indictment with conspiracy to possess with intent to distribute more than 5 kilograms of cocaine hydrochloride and possession with intent to distribute 500 grams or more of cocaine hydrochloride.

"The results of the successful federal prosecution of Mark Randall Jones and other defendants by the United States Attorney’s Office supports our goal to maintain the safety and integrity of the U.S. Mail," said Postal Inspector in Charge Gonzalez.

Senior U.S. District Judge David C. Bramlette III, who presided over the case, will sentence Jones on June 7, 2017. He faces a maximum penalty of life in prison.

This case was investigated by the United States Postal Service, the Mississippi Bureau of Narcotics and the Los Angeles County Sheriff’s Department. It is being prosecuted by Assistant United States Attorneys Erin Chalk and Keesha Middleton.

 

Jackson, Miss - James P. Cheatham III, a former federal corrections officer, has been charged with accepting bribes to introduce contraband into the federal correctional facility in Yazoo County, Mississippi, announced Acting U.S. Attorney Harold Brittain, Special Agent in Charge Robert Bourbon of the DOJ OIG’s Miami Field Office, and FBI Special Agent in Charge Christopher Freeze.

Cheatham, age 24, of Brandon, Mississippi was charged in a one-count federal indictment with a violation of Title 18 USC 201(b)(2)(C) – being a public official providing to an inmate a prohibited object.

"Greed and corruption have no place in our criminal justice system," stated Special Agent in Charge Robert Bourbon of the DOJ OIG’s Miami Field Office. "We want to thank our law enforcement partners for their continued efforts to ensure that individuals who abuse their position are vigorously investigated, prosecuted, and punished."

Cheatham made his initial appearance in Jackson on Thursday, March 23, 2017, before United States Magistrate Judge F. Keith Ball. The case is set for trial on May 2, 2017, before U.S. District Judge Daniel P. Jordan III. If convicted, Cheatham faces a maximum penalty of 15 years in prison and a $250,000.00 fine.

The case was investigated by the Department of Justice-Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Erin Chalk.

The public is reminded that an indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

 

 

Jackson, Miss. – James Glenn Dukes, 64, of Rankin County, Mississippi, was sentenced on March 21, 2017, by U.S. District Judge Daniel P. Jordan III, to serve 150 months in federal prison followed by a lifetime of supervised release for possession of child pornography, announced Acting U.S. Attorney Harold Brittain, FBI Jackson Division Special Agent in Charge Christopher Freeze and Mississippi Attorney General Jim Hood.

In February, 2015, a federal search warrant was executed at Dukes’ residence in Brandon and electronic devices including computers and hard drives were seized. A forensic examination revealed numerous images and videos of minors engaging in sexually explicit conduct. He pled guilty on Sept. 29, 2016 to possession of child pornography.

Acting U.S. Attorney Brittain praised the efforts of the Mississippi Attorney General’s Office and the FBI Jackson Division’s Child Exploitation Task Force who investigated the case. "As this case demonstrates, the coordination of state and federal law enforcement agencies is an essential component in our efforts to combat child exploitation and abuse," said Brittain.

"Children must be protected from any type of exploitation, especially sexual exploitation," said Special Agent in Charge Freeze. "This sentencing indicates the partnership between law enforcement to find and prosecute these types of offenders to the fullest extent of the law. The outcome of this case would have not been possible without the Mississippi Attorney General’s Office."

"Our law enforcement agencies are partnered with state and federal prosecutors in the court systems to ensure that those who take advantage of our children receive the longest sentences," Mississippi Attorney General Jim Hood said. "The 150-month sentence handed down in this case should send a deterrent message to any perverts thinking about abusing our children."

This investigation was initiated by the Mississippi Attorney General’s Office, and was assisted by the FBI Jackson Division’s Child Exploitation Task Force, which is made up of agents from the FBI and the Mississippi Attorney General’s Office and prosecutors from the United States Attorney’s Offices in Oxford and Jackson. The case was prosecuted by Assistant United States Attorney Glenda Haynes.

 

Gulfport, Mississippi. – Kristopher Michael Brumfield, 38, of Ocean Springs, pled guilty on March 21, 2017 to one count of access with intent to view child pornography, announced Acting U.S. Attorney Harold Brittain and Special Agent in Charge Raymond R. Parmer, Jr. of Homeland Security Investigations (HSI).

In August 2014, HSI identified three user profiles contained within a foreign photo sharing website which contained child pornography. The HSI investigation that followed identified Brumfield as the individual who knowingly accessed the website and viewed the uploaded images of minors engaged in sexually explicit conduct. It was further determined that via email, Brumfield corresponded with other users of the website, and subsequently traded numerous videos of children engaged in sexually explicit conduct via his email accounts.

Brumfield will be sentenced on June 20, 2017 at 1:30 p.m. by Chief U. S. District Judge Louis Guirola, Jr. He faces a maximum sentence of 10 years in prison and a $250,000 fine.

This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Andrea Jones and Glenda Haynes.

 

Gulfport, Miss – Philip Joseph Spear, age 59, of Ocean Springs, entered a guilty plea in U.S. District Court today to a criminal information charging him with production, transportation, distribution and possession of child pornography, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Christopher Freeze.

Spear was charged after a federal search warrant was executed at his residence in Ocean Springs and numerous electronic devices including computers, a camera and hard drives were seized. A forensic examination revealed numerous images and videos of minors engaging in sexually explicit conduct.

Today, Spear pled guilty to two counts of production of child pornography, one count of production of child pornography by a person who has custody of a minor, one count of transportation of child pornography, one count of distribution of child pornography and one count of possession of child pornography. He will be sentenced on June 7, 2017 at 10:00 a.m. before Chief U.S. District Judge Louis Guirola, Jr. The maximum penalties for the crimes charged are as follows:

Production of child pornography - 30 years and a $250,000 fine on each count;

Production of child pornography by a person who has custody of a minor – 30 years and a $250,000 fine;

Transportation of child pornography - 30 years and a $250,000 fine;

Distribution of child pornography 20 years and a $250,000 fine; and

Possession of child pornography- 20 years and a $250,000 fine.

This case was investigated by the FBI Jackson Division’s Child Exploitation Task Force, which is made up of agents from the FBI and the Mississippi Attorney General’s Office and prosecutors from the United States Attorney’s Offices in Oxford and Jackson. Assistant U.S. Attorney Andrea Jones is prosecuting the case for the government.

WASHINGTON – An Iranian man was sentenced today to 120 months in federal prison for access device fraud and 60 months in federal prison for conspiracy to commit identity theft and access device fraud, to be served concurrently, in connection with an international scheme to sell credit card information online. He was further ordered to pay $36.6 million in restitution.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis of the Southern District of Mississippi and Special Agent in Charge Raymond R. Parmer of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) New Orleans, Louisiana, Field Office made the announcement.

 

Milad Kalantari, 32, an Iranian citizen, was sentenced by U.S. District Judge Louis Guirola Jr. of the Southern District of Mississippi. Kalantari was arrested in December 2015, when he entered the United States at John F. Kennedy International Airport in New York City. On Oct. 6, 2016, Kalantari pleaded guilty to one count of conspiracy to commit identity theft and access device fraud and one count of substantive access device fraud.

 

As part of the plea, Kalantari admitted that he was a member of a financial fraud conspiracy that owned and operated numerous websites, in Kalantari’s name, dedicated to the distribution and sale of stolen credit and debit card information belonging to victims all over the world – including citizens and banks located throughout the United States. As part of the scheme, Kalantari sold approximately 2.5 million stolen credit cards on his websites, with an intended loss amount valued at over $1.2 billion. More than $35 million in actual losses have been confirmed with U.S. companies including more than $26 million in losses to Discover Card and almost $5 million in losses to American Express.

 

Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi prosecuted the case, which was investigated by HSI’s Gulfport Regional Office.

An Iranian man was sentenced today to 120 months in federal prison for access device fraud and 60 months in federal prison for conspiracy to commit identity theft and access device fraud, to be served concurrently, in connection with an international scheme to sell credit card information online. He was further ordered to pay $36.6 million in restitution.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis of the Southern District of Mississippi and Special Agent in Charge Raymond R. Parmer of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) New Orleans, Louisiana, Field Office made the announcement.

 

Milad Kalantari, 32, an Iranian citizen, was sentenced by U.S. District Judge Louis Guirola Jr. of the Southern District of Mississippi. Kalantari was arrested in December 2015, when he entered the United States at John F. Kennedy International Airport in New York City. On Oct. 6, 2016, Kalantari pleaded guilty to one count of conspiracy to commit identity theft and access device fraud and one count of substantive access device fraud.

 

As part of the plea, Kalantari admitted that he was a member of a financial fraud conspiracy that owned and operated numerous websites, in Kalantari’s name, dedicated to the distribution and sale of stolen credit and debit card information belonging to victims all over the world – including citizens and banks located throughout the United States. As part of the scheme, Kalantari sold approximately 2.5 million stolen credit cards on his websites, with an intended loss amount valued at over $1.2 billion. More than $35 million in actual losses have been confirmed with U.S. companies including more than $26 million in losses to Discover Card and almost $5 million in losses to American Express. 

 

Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi prosecuted the case, which was investigated by HSI’s Gulfport Regional Office.