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15 April 2024
Chambersburg Man Sentenced to 27 Months in Prison for Preparing False Tax ReturnsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Guibbonz Marcellus, age 43, of Chambersburg, Pennsylvania, was sentenced on April 12, 2024, by U.S. District Court Judge Jennifer P. Wilson to 27 months’ imprisonment on 23 counts of aiding and assisting the preparation of false and fraudulent tax returns. Marcellus was convicted following a jury trial in July 2023.
According to United States Attorney Gerard M. Karam, Marcellus operated a tax-preparation business in Chambersburg called M&M Confident Multi Services from 2013 to 2016. In an effort to increase refund amounts and generate business, Marcellus regularly included false numbers on the returns he prepared and filed. The returns falsely claimed, among other things, the federal fuel-tax credit, business losses, and deductions for charitable gifts and unreimbursed employee expenses. The Court found that the total loss to the government due to Marcellus’s conduct was over $208,000.
The case was investigated by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Carlo D. Marchioli and former Assistant U.S. Attorney Paul J. Miovas prosecuted the case.
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Canadian Man Sentenced for Operating $175M Psychic Mass-Mailing Fraud SchemeRead the Press Release
A Canadian man was sentenced to 10 years in prison today in the Eastern District of New York for perpetrating a massive psychic mass-mailing fraud scheme that stole more than $175 million from more than 1.3 million victims in the United States.
Following a two-week trial, a federal jury convicted Patrice Runner, 57, a Canadian and French citizen, in June 2023 of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering and multiple counts of mail fraud and wire fraud.
Runner operated a mass-mailing fraud scheme from 1994 through November 2014. As part of the scheme, Runner sent letters to millions of U.S. consumers, many of whom were elderly and vulnerable. The letters falsely purported to be individualized, personal communications from well-known so-called “psychics” Maria Duval and Patrick Guerin and promised that the recipient had the opportunity to achieve great wealth and happiness with the assistance of the “psychics” in exchange for payment of a fee. Once a victim made a single payment in response to one of the letters, the victim was bombarded with dozens of additional letters, all purporting to be personalized communications from the “psychics” and offering additional services and items for a fee.
Although the scheme’s letters frequently stated that a “psychic” had seen a personalized vision regarding the recipient of the letter, in fact, the scheme sent nearly identical form letters to tens of thousands of victims each week. Runner and his co-conspirators obtained the names of elderly and vulnerable victims by renting and trading mailing lists with other mail fraud schemes. In reality, Duval and Guerin had no role in sending the letters, did not receive responses from the victims, and did not send the additional letters after victims paid money. In fact, no “psychics” played any role in Runner’s operation. Some victims made dozens of payments in response to the fraudulent letters, losing thousands of dollars.
Runner directed the scheme for the entirety of its twenty-year operation, directing co-conspirators, who ran the day-to-day operations of the scheme through a Canadian company. Runner used a series of shell companies registered in Canada and Hong Kong to hide his involvement in the scheme while living in multiple foreign countries, including Switzerland, France, the Netherlands, Costa Rica and Spain.
Spanish authorities extradited Runner to the United States to face federal charges in December 2020.
“This case demonstrates that the Justice Department’s Consumer Protection Branch and its partners in the U.S. Postal Inspection Service (USPIS) are committed to investigating and prosecuting transnational fraud schemes targeting Americans consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The global nature of this scheme meant that we had to rely on law enforcement from around the globe to provide evidence of criminality. We want to thank officials from France, Liechtenstein, Switzerland and Canada, and in particular the Canadian Competition Bureau, for providing assistance in securing evidence in this matter, as well as Spain for arresting and extraditing Runner, ensuring that justice could be done.”
“Patrice Runner’s extravagant lifestyle, born on the backs of millions of older and vulnerable Americans, has come to an end,” said Inspector in Charge Chris Nielsen of the USPIS Philadelphia Division. “The conviction and federal sentencing of Patrice Runner is the appropriate punishment for someone who routinely preyed on vulnerable and elderly Americans. Postal Inspectors will continue to work tirelessly to ensure you can trust that the US Mail is free of these types of predatory schemes.”
Four other co-conspirators previously pleaded guilty to conspiracy to commit mail fraud in connection with this mass-mailing fraud scheme: Maria Thanos, 60, of Montreal, Canada; Philip Lett, 53, of Montreal; Sherry Gore, 73, of Indiana, and Daniel Arnold, 62, of Connecticut.
USPIS investigated the case.
Assistant Director John W. Burke and Trial Attorneys Charles B. Dunn, Rachel Baron and Ann Entwistle of the Civil Division’s Consumer Protection Branch prosecuted the case. The Justice Department’s Office of International Affairs provided critical assistance in securing Runner’s extradition.
The department urges individuals to be on the lookout for fraudulent “psychic,” lottery, prize notification and sweepstakes scams. If you receive a phone call, letter or email promising a large prize in exchange for a fee, do not respond. Fraudsters often will use official-sounding names or the names of real lotteries or sweepstakes, or pretend to be a government agent purportedly helping to secure a prize.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with inappropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage at www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Bronx Tax Preparer Charged with Filing Tens of Thousands of False Tax Returns Causing over $100 Million in Fraudulent Tax LossRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”); James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Trevor R. Nelson, the Deputy Inspector General for Investigations for the Treasury Inspector General for Tax Administration (“TIGTA”), announced today the unsealing of an Indictment charging RAFAEL ALVAREZ, a/k/a “the Magician,” with conspiracy to defraud the United States, aiding and abetting the filing of false federal tax returns, attempting to interfere with the administration of the internal revenue laws, making false statements, and aggravated identity theft. These charges arise from ALVAREZ’s alleged orchestration of a wide-ranging scheme to file tens of thousands of federal individual income tax returns that included false information designed to fraudulently reduce the individuals’ tax burden and to make false statements to the IRS. ALVAREZ was arrested today and will be presented in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker.
U.S. Attorney Damian Williams said: “Rafael Alvarez was allegedly so prolific in falsifying his customers’ tax returns that he came to be known as ‘the Magician’ for his ability to make customers’ tax burden disappear. But, Alvarez’s sleight of hand was criminal tax fraud, a serious federal tax crime he was allegedly committing for over a decade, depriving the IRS of more than $100 million in tax revenue. Today’s charges, on Tax Day, should serve as an important reminder to tax professionals that when they try to cheat the public fisc they will face grave consequences.”
IRS-CI Special Agent in Charge Thomas Fattorusso said: “While Alvarez may have been known as the ‘magician,’ he can’t say abracadabra and make these charges disappear. This one person is charged with creating a criminal enterprise that defrauded the government of more than $100 million. The evidence points to Alvarez’s alleged scheme to file tens of thousands of fraudulent tax returns, while his company, ATAX, grossed over $15 million in revenue in just three years. Today’s arrest was no magical illusion, and Alvarez now faces the reality of his actions.”
FBI Assistant Director in Charge James Smith said: “Rafael Alvarez, the CEO, owner, and manager of ATAX New York, allegedly orchestrated one of the largest ever tax fraud schemes by submitting false federal tax returns that ultimately cost the IRS over $100 million in revenue while simultaneously generating $15 million for his own company. Alvarez’s alleged 10-year fraudulent operation is not a magic act, but rather a deliberate slight against the integrity of our country’s tax system. Today, Alvarez must pay the price for his actions – the FBI does not tolerate those who steal from the government for personal economic fortune.”
TIGTA Deputy Inspector General Trevor R. Nelson said: “The Treasury Inspector General for Tax Administration aggressively investigates tax preparers who attempt to corrupt our Nation’s tax system. Our mission at TIGTA is to protect the integrity of our Nation’s system of tax administration. We are committed to working with our law enforcement partners to ensure those who endeavor to corrupt Federal tax administration are prosecuted to the fullest extent of the law.”
As alleged in the Indictment unsealed in Manhattan federal court and court filings:[1]
From at least in or about 2010, up to and including in or about 2020, RAFAEL ALVAREZ was the CEO, owner, and manager of ATAX New York, LLC, also doing business as ATAX New York-Marble Hill, ATAX Marble Hill, ATAX Marble Hill NY, and ATAX Corporation (together, “ATAX”). ATAX was a high-volume tax preparation company located in the Bronx, which prepared approximately 90,000 federal income tax returns for its customers during this period. ALVAREZ both prepared tax returns for ATAX customers and recruited, supervised, and directed other ATAX personnel who in turn prepared tax returns for customers. During this period, ALVAREZ oversaw a sweeping fraudulent scheme, whereby he and his employees submitted false information to the IRS in ATAX customers’ tax returns. This false information, which included, among other things, bogus itemized tax deductions, made-up capital losses, phony business expenses, and fraudulent tax credits, served to fraudulently reduce the customers’ tax liability and increase the customers’ tax refunds from the IRS. In total, ALVAREZ oversaw ATAX’s fraudulent submission of tax returns on behalf of customers that deprived the IRS of substantially more than $100 million in tax revenue. ALVAREZ was so consistent at falsifying ATAX customer tax returns that he became known to ATAX’s customers as “the Magician.” Additionally, as part of ALVAREZ’s unlawful operation of ATAX, he and an ATAX employee made false statements to an IRS Revenue Agent. ALVAREZ’s operation of ATAX helped the company generate at least approximately $15 million in gross revenues over the period of in or about 2016 to in or about 2019.
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RAFAEL ALVAREZ, 60, of Cortlandt Manor, New York, is charged with one count of conspiracy to defraud the United States and making false statements, each of which carries a maximum sentence of five years in prison. He is also charged with four counts of aiding and assisting preparation of false and fraudulent U.S. individual income tax returns and attempting to interfere with the administration of the internal revenue laws, each of which carries a maximum sentence of three years in prison. He is further charged with aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the IRS-CI, FBI, and TIGTA.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys David R. Felton and Samuel Raymond are in charge of the prosecution.
The allegations in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Albany Man Indicted for Distribution, Receipt and Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Taykwun Smoaks, age 32, of Albany, was arraigned on Friday, April 12, on charges that he distributed, received, and possessed child pornography. United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office, and New York State Police (NYSP) Superintendent Steven G. James made the announcement.
The indictment filed against Smoaks alleges that, from February to March 2023, he distributed and received images and videos of child pornography over the internet, and that he possessed images of child pornography on his computer and external hard drive on April 5, 2023. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted of the charges, Smaoks faces at least 5 years and up to 20 years in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Smoaks may also be ordered to pay restitution to the victims of his offenses and forfeit the devices used in the offenses. Smoaks would also have to register as a sex offender upon his release from prison.
Smoaks was arraigned on Friday in Albany, before United States Magistrate Judge Christian F. Hummel, and detained pending a detention hearing scheduled for tomorrow, April 16. A trial will be scheduled before United States District Judge Anne M. Nardacci.
HSI and NYSP are investigating the case. Assistant U.S. Attorney Alexander P. Wentworth-Ping is prosecuting the case.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
- Aiken County Man Pleads Guilty to Tax Evasion
14 April 2024
Thornton Man Indicted for Falsely Filing Client Tax ReturnsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Lance McCuistion, 56, of Thornton, Colorado, was indicted by a federal grand jury for preparing false tax returns on behalf of clients.
In July 2014, McCuistion plead guilty to preparing false tax returns in a prior investigation and was sentenced to probation. As a result of that offense, McCuistion was unable to obtain a Preparer Tax Identification Number (PTIN). However, according to the indictment, from approximately April 2018 through April 2022, McCuistion used PTINs in the names of three individuals associated with McCuistion to prepare tax returns on behalf of clients. These tax returns claimed items for which McCuistion knew the taxpayers were not eligible in order to increase refunds or reduce taxes due.
The defendant made his initial appearance on April 12, 2024, before Magistrate Judge Scott T. Varholak.
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Sarah Weiss.
Case Number: 24-cr-00116-CNS
Four Guatemalan Nationals Charged in Large-Scale Retail Theft Schemes in Multiple StatesRead the Press Release
PROVIDENCE, RI – Four Guatemalan nationals have been charged in federal court in Providence, RI, with conspiracy to commit interstate transportation of stolen property and interstate transportation of stolen goods, having allegedly participated, with others, in a large-scale scheme to steal and re-sell high-value products from home improvement stores and other retailers in multiple states, announced United States Attorney Zachary A. Cunha.
Court documents allege that Marvin Estuardo Morales De Paz, 33, Abraham Dayger-Enrique, 24, Sebastian Lajuj-Soloman, 30, and Jonathan Josue Amperez-Perez, 31, worked together and with others to defraud Home Depot stores mainly in Rhode Island, Massachusetts, Connecticut, and Pennsylvania by stealing and, at times, re-selling stolen goods such as electrical wire, flooring, power tools, and other items of high value.
Based on information from multiple police departments, a review of security camera footage from numerous retailers, and as well as the court-authorized seizure and review of cellphones seized from Morales DePaz, Dayger-Enrique, and Amperez-Perez, it is alleged that the four men and other co-conspirators have participated in more than 30 documented thefts. To date, based on arrests and law enforcement encounters during retail theft incidents, fifteen Guatemalan nationals have been identified as allegedly being associated with this retail theft organization. However, it is believed that not all members of the group regularly participate in these theft operations.
Court-authorized search warrants were executed on April 12, 2024, at residences in Cranston and Providence, resulting in the seizure of $11,000 worth of stolen goods from Home Depot and Khols; $83,000 in cash; and a Ford 2019 F150 vehicle.
Morales De Paz, Dayger-Enrique, and Lajuj-Soloman were arrested in Rhode Island on Friday and were ordered detained in federal custody at their initial appearances before a District Court Magistrate Judge; Amperez-Perez was apprehended in Pennsylvania and remains in federal custody awaiting a return to Rhode Island.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney John P. McAdams.
The matter is being investigated by Homeland Security Investigations agents in Providence, with the assistance of HSI agents in Boston, and Allentown, Pennsylvania, and the Providence, Coventry, Warwick, Smithfield, and Johnston, RI Police Departments; Boston, Norwood, Bellingham, Marlboro, Seekonk, Avon, Auburn, MA Police Departments; Montville and Fairfield, CT Police Departments; and the Parkesburg, Downingtown, Lebanon, Wyomissing, and Reading, PA, Police Departments; Nashua, NH Police Department; and Marlboro, NJ Police Department.
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interstate_stolen_goods_criminal_complaint_search_warrant_and_arrest_affidavit.pdf
12 April 2024
Wimauma Man on Federal Supervised Release Indicted for Possession of Ammunition by A Convicted FelonRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Alfredo Davila, Jr. (30, Wimauma) with possession of ammunition by a convicted felon. If convicted, Davila faces a maximum penalty of 15 years in federal prison.
According to the indictment, on February 18, 2024, Davila, knowing that he had previously been convicted of a felony, was in possession of ammunition. At the time of the offense, Davila was serving a term of supervised release for his previous convictions. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Jeff Chang.
This case is part of the Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Wilkes-Barre Man Charged with Drug Trafficking and Firearms ViolationsRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ras Dalmar Johnson, age 27, of Wilkes-Barre, Pennsylvania, was indicted on April 9, 2024, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney Gerard M. Karam, the indictment alleges that on February 1, 2024, Johnson possessed with intent to distribute over 400 grams of fentanyl, over 50 grams of methamphetamine, and amounts of cocaine and marijuana. The indictment also alleges that on the same date, Johnson, who is a person prohibited from possessing a firearm, possessed a Glock 26 handgun in furtherance of drug trafficking.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, The Pennsylvania Office of Attorney General, Bureau of Narcotics and the Wilkes-Barre Police Department. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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U.S. Attorney’s Office Collects over $1.9 Million in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
SIOUX FALLS - The United States Attorney’s Office for the District of South Dakota, under the leadership of U.S. Attorney Alison J. Ramsdell, has reported the collection of $1,937,264.31 in criminal fines, restitution, loan defaults, bankruptcy, forfeiture, and affirmative civil enforcement efforts in FY 2023. Of the total collections, $1.5 million was derived from criminal cases. A significant portion of this, precisely $1,100,870.12, was returned to victims of crime, underscoring the Office’s commitment to ensuring justice and support for those victimized by crime. The remainder has been deposited into the Crime Victims Fund, a crucial federal resource that provides financial assistance to crime victims across the United States. This fund aids victims in covering various costs such as medical expenses, lost wages, mental health counseling, and funeral expenses.
“Our mission extends beyond the mere prosecution of criminal offenders,” said U.S. Attorney Ramsdell. “It’s about healing wounds and restoring dignity to those wronged through our dedication to facilitating the financial recovery for victims to the fullest extent possible. Seeing the tangible benefits of these collections for the victims is not just satisfying—it’s a profound reminder of the impact our office can have on the lives of victims seeking justice.”
Additionally, the fiscal year saw substantial collections from civil actions related to delinquent government loans, including those related to education, small businesses, agricultural services, and housing. The enforcement of healthcare fraud and False Claims Act litigation also contributed to these achievements. Notably, in a case of wool subsidy fraud, defendant Howard Aleff was mandated to sell Iowa farmland to satisfy a $1.3 million debt. Meanwhile, the discovery of valuable religious artifacts in a storage unit belonging to former priest Marcin Garbacz led to a unique online auction, recovering over $18,000 for the church he victimized.
These results were achieved through the concerted efforts of the entire team at the U.S. Attorney’s Office, from attorneys who secure criminal restitution and civil judgments to the financial litigation unit responsible for enforcing payment. The use of various enforcement mechanisms, including voluntary payment plans, garnishments, and the sale of seized assets, has been instrumental in these achievements.
The U.S. Attorney’s Office for the District of South Dakota remains committed to upholding the principles of justice and integrity, as demonstrated by the FY 2023 collections. These efforts not only highlight the dedication of the office to its prosecutorial and enforcement responsibilities, but also its unwavering support for the victims whose lives are impacted by violent and financial crimes.
Two Doctors Sentenced for $4M Fraudulent Urine Drug Testing SchemeRead the Press Release
The owner and the medical director of a Kentucky pain clinic were sentenced yesterday for their respective roles in a scheme that defrauded Medicare, Medicaid, and commercial insurance companies of over $4 million for medically unnecessary urine drug testing.
Dr. William Lawrence Siefert, 70, of Dayton, Ohio, the clinic’s medical director, was sentenced to one year and six months in prison and ordered to pay $1,968,763.10 in restitution. Dr. Timothy Ehn, 51, of Union, Kentucky, the clinic owner and a licensed chiropractor, was sentenced to two years and six months in prison and ordered to pay $3,773,569.30 in restitution.
“The defendants enriched themselves through a fraudulent urine drug testing scheme that cost Medicare, Medicaid, and commercial insurance companies over $4 million,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Criminal Division is committed to protecting American taxpayers from doctors who abuse their positions to steal public money by billing for unnecessary medical procedures.”
According to court documents and evidence presented at trial, Ehn and Siefert orchestrated a scheme in which clinic staff billed for urine drug tests that were not medically necessary but were lucratively reimbursed by taxpayer-funded insurance providers like Medicare and Medicaid. Ehn and Siefert continued in their scheme even as their expensive drug testing machine malfunctioned because it was not properly maintained, which caused the machine to produce results that falsely suggested patients were testing positive for street drugs like ecstasy or heroin. Insurance proceeds from urine drug testing ended up comprising three-quarters of the clinic’s revenue.
“These sentences are a testament to the fact that the FBI and our law enforcement partners will not stand by while licensed physicians choose to defraud federally-funded health insurance programs in order to line their own pockets,” said Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office. “As a result of a collaborative effort across all levels of government, patients will no longer have to endure unnecessary medical tests and the taxpayer’s money will not be wasted.”
“Together with our federal, state, and local partners, DEA remains steadfast in our commitment to identify and root out health care professionals who fail to live up to their responsibilities and commitments,” said Special Agent in Charge Orville O. Greene of the Drug Enforcement Adminisration (DEA) Detroit Field Division. “These sentences should serve as a warning there is zero tolerance for fraud, no matter what form it takes.”
“Health care providers who cause the submission of Medicare and Medicaid claims for medically unnecessary services pose a significant risk to these programs and the patients who rely on them,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “These sentences exemplify how HHS-OIG works diligently with our law enforcement partners to hold accountable individuals who, to satisfy their own greed, exploit federal health care programs.”
“Through zealous collaboration with our law enforcement partners, we’re holding these defendants accountable,” said Kentucky Attorney General Russell Coleman. “I’m especially proud of Detective Supervisor Mike McGuffey and the entire Attorney General’s Medicaid Fraud and Abuse team for investigating these crimes and delivering justice.”
On March 23, 2023, a federal jury convicted Siefert of health care fraud, and Ehn of health care fraud and conspiracy to commit health care fraud.
The FBI, DEA, HHS-OIG, and Kentucky Medicaid and Abuse Control Unit investigated the case.
Trial Attorneys Dermot Lynch and Lindsey Carson and Assistant Chief Lauren Kootman of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Tucson Man Pleads Guilty to Mass Shooting Threat at University of ArizonaRead the Press Release
TUCSON, Ariz. – Michael Pengchung Lee, 27, of Tucson, pleaded guilty on Wednesday to Interstate Threats for transmitting threats through interstate communications to commit a mass shooting at the University of Arizona. Sentencing is scheduled for July 3, 2024, before United States District Judge Rosemary Márquez.
The complaint alleged that on October 23, 2023, Lee made threats to commit a mass shooting at the University of Arizona in a group chat on Snapchat. Lee is not a student at the university, but expressed a desire to get revenge on “all the chads and stacies!!” “Chads” and “stacies” are commonly used terms by self-described involuntary celibates (incels). Lee made further reference to incel ideology and finished the conversation by stating “im gonna do it guys, my mind is made up and there’s nothing u can do or say to stop me.”
On Wednesday, Lee admitted that on October 22, 2023, he sent multiple Snapchat messages to a group chat threatening to commit a mass shooting at the University of Arizona. Lee further admitted that in those messages he referenced incel ideology, language, and motivations, including referring to a well-known, self-identified incel and mass shooter, amongst other incel references. Lee also admitted that in at least two other Snapchat conversations, he threatened to commit a mass shooting at the university, citing the same incel ideology and motivations.
A conviction for Interstate Threats carries a maximum penalty of five years in prison, a fine of $250,000, or both, and a maximum term of three years of supervised release.
“We must protect the intellectual rigor, diversity and safety of our universities,” said United States Attorney Gary Restaino. “Robust intervention and prosecution of misogynists who threaten young students is critical to public safety. Our thanks to the community members who reported the threats and to our law enforcement partners at the University of Arizona Police Department and the Federal Bureau of Investigation for their quick and decisive response to social media intimidation.”
“All students deserve to feel safe at their schools, and threats like these deprive students of that right. We are extremely grateful for the brave members of the community who spoke up with their concerns and reported this to law enforcement,” said FBI Phoenix Special Agent in Charge Akil Davis. “We would like to thank our partners at the University of Arizona and the FBI’s Southern Arizona Violent Crime and Gang Task Force (SAVCGTF) for their collective efforts to ensure our college campuses remain a safe space for students to continue their education free of fear and hate.”
“This case is a wonderful example of our strong partnership with the Federal Bureau of Investigation and the U.S. Attorney’s Office,” said University of Arizona Police Chief Chris Olson. “It also illustrates the sense of urgency in which the University of Arizona Police Department, the UA Office of Public Safety, and our federal partners will act when our community is threatened.”
The Federal Bureau of Investigation and the University of Arizona Police Department, as part of the FBI’s Southern Arizona Violent Crime and Gang Task Force, conducted the investigation in this case. Assistant U.S. Attorney Adam Rossi, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-23-01694-TUC-RM
RELEASE NUMBER: 2024-049_Lee# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Texas Resident Sentenced to Five Years for Arson, Assaults, and Animal CrueltyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Raymond David Phillips, age 32, of Lindale, Texas, was sentenced to 70 months in prison for one count of Arson, 41 months for one count of Animal Crushing in Indian Country, and 6 months on two misdemeanor counts of Assault in Indian Country. The sentences will run concurrently.
The charges arose from an investigation by the Federal Bureau of Investigation and the Grand River Dam Authority.
On May 22, 2023, Phillips pleaded guilty to the charges. On September 3, 2022, Phillips and his girlfriend were vacationing at a resort area along the Illinois River when his girlfriend was arrested. Angered by the arrest, Phillips decapitated the resort owner’s cat, then began burning other guests’ camping equipment. Law enforcement arrested Phillips at the Cherokee County Detention Center, where he had arrived to bail out his girlfriend. After being taken into custody, Phillips threatened and assaulted jail and law enforcement officers.
The crimes occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Phillips will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kevin Gross represented the United States.
Ten-Time Robber Sentenced to Eleven Years in Federal Prison for $20,000 Robbery of Carmel Credit UnionRead the Press Release
INDIANAPOLIS- Marty McConnell, 64, of Indianapolis, has been sentenced to eleven years in federal prison after pleading guilty to bank robbery.
According to court documents, on May 8, 2023, the defendant entered a Teachers Credit Union in Carmel, Indiana, approached the bank teller and gave him a note threatening to “blow [the teller’s] f*****g head off” unless he handed over all the money at his station. The teller gave the defendant $20,000 and he subsequently left the credit union.
Carmel Police Department Officers immediately arrived on the scene and quickly located Mr. McConnell. During a recorded interview with officers, McConnell admitted to committing the robbery and keeping the majority of money in his car. He also stated that he used a portion of money from the robbery to get his car out of pawn, buy new shoes, and buy drugs. Officers searched McConnell’s vehicle and located $12,600 in cash and the clothing worn during the robbery.
Before robbing the Carmel Teachers Credit Union, McConnell was convicted of three armed robberies, six other robberies, and three batteries over a thirty-year span. He was most recently discharged from parole in November 2020, after his release from prison for a prior robbery spree.
“For three decades this violent criminal has terrorized innocent people, seeking quick money through force, violence, and intimidation. His crime spree stops here,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Violent crimes rob entire communities of their safety and peace of mind. Working closely with our partners at the Carmel Police Department and FBI, our federal prosecutors will continue our work to make our communities safer and hold violent, repeat criminals accountable.”
“This sentence sends a clear message that robbing a bank in Indiana will result in significant time in federal prison,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Our law enforcement partnerships ensure that those engaging in violent behavior will be caught and held accountable.”
The FBI investigated this case. The sentence was imposed by U.S. District Court Judge James P. Hanlon. Judge Hanlon also ordered that McConnell be supervised by the U.S. Probation Office for three years following his release from federal prison and pay $20,000 in restitution.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jeremy C. Fugate, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Stilwell Resident Pleads Guilty to Aggravated Sexual Abuse of A ChildRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lawrence Fourkiller, age 47, of Stilwell, Oklahoma, entered a plea of guilty to one-count of Aggravated Sexual Abuse of a Child in Indian Country as a part of a negotiated plea agreement.
During the plea hearing, Fourkiller admitted that between August of 2020 and May of 2021, while employed at Stilwell Elementary School, he knowingly caused a seven-year-old child to engage in a sexual act. The crimes occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Stilwell Police Department and the Federal Bureau of Investigation.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma accepted the plea and ordered the completion of a presentence investigation report. Fourkiller will remain in the custody of the U.S. Marshals Service pending sentencing.
Assistant United States Attorneys Caila M. Cleary and Morgan Muzljakovich represented the United States.
Stanwood, Washington repeat offender sentenced to 10+ years in prison for selling heroin and fentanyl over the dark webRead the Press Release
Seattle – A 49-year-old Stanwood, Washington, man was sentenced today in U.S. District Court in Seattle to 121 months in prison for possession of heroin and fentanyl with intent to distribute, announced U.S. Attorney Tessa M. Gorman. Christerfer Frick was arrested in May 2021 following an investigation into drug dealing on the dark web. At the time of his arrest, Frick was on supervised release for a nine-year prison sentence for drug dealing. At the sentencing hearing, U.S. District Judge Richard Jones said, “The fact that you immediately turned to drug dealing shortly after release from prison indicates the court needs to protect the community.”
“Mr. Frick delivered potentially deadly drugs to customers across the country, with little concern for the lives he damaged or destroyed,” said U.S. Attorney Gorman. “Indeed, he stored large amounts of deadly drugs in a home he shared with two small children, leaving them accessible to these children or their friends with potentially tragic consequences.”
According to records filed in the case, Frick spent 2020 and early 2021, storing and mailing drugs to customers who ordered via the dark web. Frick sought out a drug supplier and stored as much as 50 pounds of controlled substances at a time. While he placed the drugs in a safe in the garage, he did not lock the safe, leaving it open for anyone – including his wife’s two young children – to access. At the time law enforcement searched the residence there was 2.7 kilos of heroin and fentanyl in the safe.
Frick conspired with another defendant who ran the dark web sales site. Frick stored and delivered the drugs to customers, either in person or through the mail.
This is Frick’s third federal felony conviction. As prosecutors wrote in their sentencing memo, “Christerfer Frick has been on a crime spree that has lasted for over thirty years. He has dozens of convictions, including brandishing a firearm, eluding, escape, theft, harassment, forgery, counterfeiting, and drug trafficking. The only thing that has stopped Frick from committing crimes is custody…. After serving that nine-year sentence, Frick promptly sought out the dark web fentanyl and heroin network that led to the charges in this case.”
Due to the amount of drugs involved in this case, Frick faced a mandatory minimum ten years in prison, with additional time for violating his supervised release for the last prison sentence.
Following prison, Frick will be on five years of supervised release.
The case was investigated by the U.S. Postal Investigation Service (USPIS), the Federal Bureau of Investigation, and Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorneys David Martin and Mike Dion.
St. Charles County Man Admits Child Pornography, Enticement ChargesRead the Press Release
ST. LOUIS – A man from St. Charles County, Missouri faces at least 15 years in prison after admitting that he engaged in online sexual activity with three teens across the country.
Tristin M. Davis, 27, pleaded guilty to all six counts that he faced: three counts of coercion and enticement of a minor and three counts of receipt of child pornography.
The investigation began with multiple reports to authorities about Davis. It revealed that Davis had been communicating online with multiple minors in a sexual manner and exchanged pornographic images with them. Three juvenile victims have been identified fully by law enforcement.
Davis initially lied about his age when communicating with a 14-year-old girl in New York state, a 16-year-old Connecticut girl and a 15-year-old Tennessee girl. Davis received child pornography from all three victims and induced or persuaded them into engaging in sexually explicit conduct with him via social media. Davis used the screen name “muffinman130020” with the first two victims and “bacontaxi” with the third.
Davis is scheduled to be sentenced July 19. The coercion and enticement of a minor charge carries a mandatory minimum prison sentence of 10 years, and a maximum of life. The receipt of child pornography charges carries a term of five to 20 years in prison.
The St. Charles County Police Department and the FBI investigated the case. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Springfield Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Walter Tyndal, 59, was sentenced by U.S. District Judge Brian C. Wimes to 15 years in federal prison without parole. Tyndal was sentenced as an armed career criminal due to his prior felony convictions. The court ordered this federal sentence to be served consecutively to any sentence for the revocation of his parole in an unrelated state case.
On Dec. 14, 2023, Tyndal pleaded guilty to being a felon in possession of a firearm.
Tyndal was arrested on an active warrant for a parole violation on Nov. 23, 2021. At the time of his arrest, Tyndal had a Bearman 9mm Derringer pistol in the back left pocket of his pants and a bag of marijuana in his front pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Tyndal has three prior felony convictions for armed criminal action, three prior felony convictions for robbery, two prior felony convictions for stealing, two prior felony convictions for burglary, and a prior felony conviction for possessing marijuana in a correctional facility.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Seattle Man Sentenced for Buying 630,000 Counterfeit Pills on the Dark WebRead the Press Release
ST. LOUIS – U.S. District Court Judge Stephen R. Clark on Thursday sentenced a man who bought 630,000 counterfeit Xanax and other pills on the dark web to 30 months in prison and ordered him to pay a $10,000 fine.
Maximillian Gregory Verbowski will also be on supervised release for three years after his release from prison.
From October 2019 to August 30, 2021, Verbowski used cryptocurrency and cash to buy bulk quantities of counterfeit generic alprazolam, an anti-anxiety drug, and other prescription pills on the dark web and resell them. Verbowski’s source bought drug ingredients from China and used a pill press and stamps to mimic the pill markings used by real manufacturers. The supplier then shipped the pills to post office boxes Verbowski opened using aliases.
Courtesy of the Drug Enforcement Administration.Verbowski, now 29, of Seattle, pleaded guilty in June to one count each of conspiracy to sell counterfeit drugs, selling counterfeit drugs and using a fictitious name on mail to commit a crime.
The case was investigated by the FBI, the Drug Enforcement Administration, the U.S. Postal Inspection Service and Homeland Security Investigations. Assistant U.S. Attorney Kyle Bateman prosecuted the case.
Roland Resident Sentenced to 19 Years for Maiming and BurglaryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Morgan Cameron Blanton-Barnes, age 24, of Roland, Oklahoma, was sentenced to 235 months in prison for one count of Maiming in Indian Country and 188 months in prison for First Degree Burglary in Indian Country. These sentences are to be served concurrently.
The charges arose from investigations by the Roland Police Department, the Sequoyah County Sheriff’s Office, and the Federal Bureau of Investigation.
On December 14, 2022, Blanton-Barnes pleaded guilty to the charges. According to investigators, on April 23, 2022, Blanton-Barnes broke into the victim’s home while the victim was sleeping and attacked the victim with an electric saw. The victim suffered severe lacerations to the back of his skull and both hands. The crimes occurred in Sequoyah County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
“The facts of this case are shocking, and the sentence imposed is a clear message that the justice system will hold violent offenders accountable for their heinous crimes,” said United States Attorney Christopher J. Wilson.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Blanton-Barnes will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kevin Gross represented the United States at sentencing.
Rapid City Man Sentenced to 40 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Rapid City, South Dakota, man convicted of Sex Trafficking by Force, Fraud, or Coercion and Enticement of a Minor Using the Internet. The sentencing took place on April 8, 2024.
Johnny Ray Heath, 52, was sentenced to 40 years in federal prison on each charge, lifetime supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund and restitution of $3,000 to each of the two victims. The prison sentences are to be served concurrently.
Heath was indicted for the charges by a federal grand jury in March of 2023. He pleaded guilty on December 15, 2023.
Heath was apprehended in January of 2023, when he traveled to a Rapid City parking lot to have sex with who he believed was a 14-year-old girl, when, in reality, the girl was an undercover Homeland Security Investigations Special Agent. Forensic analysis of Heath’s cell phone and other devices also revealed that he coerced his victims into engaging in sex with him by offering and providing them with alcohol, vapes, marijuana, money, and other things of value or to which they were addicted. Heath recorded himself sexually abusing his victims while they were unconscious or highly intoxicated.
“This case demonstrates the impact of undercover sex sting operations conducted by law enforcement in South Dakota,” said U.S. Attorney for the District of South Dakota Alison J. Ramsdell. “The publicity generated by the arrest of Johnny Heath led a local victim to come forward after she learned of his arrest through the media. A second victim disclosed Heath’s abuse of her shortly thereafter. Perpetrators like Heath pose a grave threat to young children in our community, and he has earned every single day of his 40-year sentence.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the Internet Crimes Against Children Task Force, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Heather Knox prosecuted the case.
Heath was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced on Child Pornography ChargeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Rapid City, South Dakota, man convicted of Possession of Child Pornography. The sentencing took place on April 8, 2024.
Titus Amiotte, 23, was sentenced to five years and three months in federal prison, followed by 10 years of supervised release, and ordered to pay $60,694.12 in restitution and a $100 special assessment to the Federal Crime Victims Fund. Amiotte will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Amiotte was indicted for Receipt of Child Pornography and Possession of Child Pornography by a federal grand jury in February of 2022. He pleaded guilty on January 8, 2024.
Amiotte was federally indicted following law enforcement authority’s receipt of two Cybertips from the National Center of Missing and Exploited Children reporting suspected child pornography uploads to Google. The South Dakota Internet Crimes Against Children Taskforce executed a search warrant on Amiotte’s residence and later forensically examined a laptop and cell phone that were identified as belonging to Amiotte. The forensic examination of those devices located 86 images and 27 videos of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations, South Dakota Division of Criminal Investigation, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Amiotte was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on April 5, 2024.
Roy Brushbreaker, III, age 29, was sentenced to 22 months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Brushbreaker was indicted by a federal grand jury in November of 2023. He pleaded guilty on January 11, 2024.
Brushbreaker was convicted of Abusive Sexual Contact in 2019. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. In August of 2023, Brushbreaker began a period of supervised release residing in Rapid City and appropriately registered as a sex offender. In October of 2023, Brushbreaker relocated to Sioux Falls, South Dakota, and did not thereafter update his registration. He was arrested in Sioux Falls on November 14, 2023.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Brushbreaker was immediately remanded to the custody of the U.S. Marshals Service.
Pulaski Woman Indicted for Bank Fraud, Social Security Fraud, and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK – Wanda Gilpin, age 70, of Pulaski, New York, was arraigned today on a federal indictment charging her with six counts of bank fraud, two counts of misuse of a social security number, and one count of aggravated identity theft, United States Attorney Carla B. Freedman and Bradley Parker, Acting Special Agent in Charge of the Social Security Administration Office of Inspector General (SSA-OIG), New York Field Office announced.
According to the indictment, Gilpin is accused of applying for multiple credit cards and loans using the personal identification information—including the social security number—of other individuals, including her deceased husband. She executed this scheme to obtain lines of credit and loans with no intention of ever re-paying them. Gilpin is accused of stealing thousands of dollars from several different financial institutions during the course of several years.
The bank fraud charges filed against Gilpin carry a maximum sentence of 30 years in prison and a fine of up to $1,000,000. The misuse of a social security number charges carry a maximum sentence of 5 years and a fine of up to $250,000. Gilpin is also subject to a mandatory sentence of two years in prison, for the aggravated identity theft count, to be served in addition to any punishment for any other charges of conviction. If convicted, Gilpin will also be subject to a term of supervised release of up to five years after her release from prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The SSA-OIG is investigating the case and the case is being prosecuted by Assistant U.S. Attorney Adrian LaRochelle and Special Assistant U.S. Attorney Paul Tuck.
Pine Ridge Woman Found Guilty of Involuntary ManslaughterRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted Janine Faye Good Lance, age 44, of Pine Ridge, South Dakota of two counts of Involuntary Manslaughter following a three-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on April 11, 2024.
The charges carry a maximum penalty of eight years in custody and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Good Lance was indicted by a federal grand jury in March of 2023.
Evidence at trial established that Good Lance operated a motor vehicle on November 18, 2022, while under the influence of alcohol. She drove off the road and rolled multiple times killing the two passengers in her vehicle. Good Lance’s BAC was between .105 and .125 at the time of the crash.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the FBI. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
A presentence investigation was ordered and a sentencing date will be scheduled.
Pine Ridge Man Sentenced to 10 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Pine Ridge, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet. The sentencing took place on April 8, 2024.
Bert Roy Cottier, 58, was sentenced to 10 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Cottier will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Cottier was indicted for Attempted Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, Attempted Receipt of Child Pornography and Attempted Transfer of Obscene Material to a Minor by a federal grand jury in November of 2023. He pleaded guilty on January 10, 2024.
Cottier was arrested and federally indicted after attempting to entice two undercover law enforcement agents posing as 13- and 14-year-old females. Cottier sent the undercover agents multiple sexually explicit messages and obscene matter between March of 2023 and October of 2023.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations, South Dakota Division of Criminal Investigation, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Cottier was immediately remanded to the custody of the U.S. Marshals Service.
Physician Charged with 28 Additional Counts in Selling Opioid Prescriptions for CashRead the Press Release
WASHINGTON -- Ndubuisi Joseph Okafor, M.D., 64, of Upper Marlboro, Maryland, was charged in U.S. District Court yesterday on a 29-count count superseding indictment for illegally distributing prescriptions for narcotics in exchange for cash. According to court documents, Okafor allegedly distributed oxycodone and promethazine with codeine to individuals outside the usual course of professional practice and without a legitimate medical purpose from his medical practice in Washington, D.C.
As part of the conspiracy as charged in the superseding indictment, Okafor would distribute controlled substance prescriptions to co-conspirators whom he knew to be abusing or diverting the medication, in names and addresses requested by his co-conspirators, even when he knew the names or addresses were false. Okafor is alleged to have distributed dangerous and highly addictive controlled substances via medically unnecessary prescriptions to co-conspirators in at least 37 states nationwide and had knowledge that co-conspirators were traveling from the Washington, D.C. metro area to states as far as California, Florida, and Maine to have these illicit prescriptions filled. As part of the conspiracy, Okafor was paid in cash by his co-conspirators for each prescription issued. In addition to the charge of conspiracy, Okafor stands charged with maintaining a drug involved premises, and 26 counts of controlled substance distribution. These 26 counts include distributions to co-conspirators, an actual patient, and undercover law enforcement sources.
The charges were announced April 11, 2024, by U.S. Attorney Matthew M. Graves, FBI Assistant Director David Sundberg of the Washington Field Office, Special Agent in Charge Maureen R. Dixon, of the Department of Health and Human Services Office of the Inspector General, Daniel W. Lucas, Inspector General for the District of Columbia, and Special Agent in Charge Jarod Forget of the Drug Enforcement Administration’s (DEA) Washington Division.
Okafor was previously indicted in March 2023 for distribution of controlled substances outside the legitimate practice of medicine. The superseding indictment unsealed yesterday charges Okafor with a total of 29 counts.
If convicted, Okafor faces a maximum penalty of 20 years in prison on each count.
The case is being investigated by the FBI’s Washington Field Office, the Department of Health and Human Services Office of Inspector General, and the DC-Office of Inspector General Medicaid Fraud Control Unit (MFCU). The Drug Enforcement Administration Washington Division provided valuable assistance and served an Immediate Suspension Order (ISO) on Okafor’s DEA registration because it was determined that he posed an imminent danger to public health and safety due to the volume of unlawful distribution of opioids.
The case is being prosecuted by Assistant U.S. Attorney Meredith Mayer-Dempsey and Trial Attorney Kathryn Furtado of the Justice Department’s Fraud Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia Carjacking Task Force Highlights Significant Cases, Impact Since Its Formation Two Years AgoRead the Press Release
PHILADELPHIA – The agencies comprising the Philadelphia Carjacking Task Force highlighted the task force’s efforts at a press conference today at the U.S. Attorney’s Office.
U.S. Attorney Jacqueline C. Romero, ATF Philadelphia Special Agent in Charge Eric J. DeGree, FBI Philadelphia Special Agent in Charge Wayne A. Jacobs, and Philadelphia Police Commissioner Kevin J. Bethel discussed the benefits of the task force partnership and several significant investigations. They also noted that the number of carjackings in Philadelphia, after hitting a historical high of 1,311 in 2022, dropped 31% to 900 in 2023. In addition, the numbers for the first quarter of 2024 are indicative of another marked decline from last year.
In her remarks, U.S. Attorney Romero shared that, from January 2022 through March 2024, 59 cases investigated by the Carjacking Task Force have resulted in federal charges, with a total of 103 defendants federally charged in connection with 121 individual carjackings.
U.S. Attorney Romero also discussed some recent case developments, including the sentencing of Dashawn Pringle to 10½ years in prison for two armed carjackings, one in which a victim was violently assaulted; the guilty plea of John Nusslein to two carjackings, including one where an elderly delivery driver was fatally beaten, resulting in a potential sentence of 25 years in prison; and the guilty pleas of Angel Fayez and Kevin Antun to a crime spree that began with a carjacking. Fayez and Antun are now facing mandatory minimum sentences of seven years in prison, and statutory maximum sentences of life in prison.
“We want our community to know that significant strides are being made on their behalf by the Philadelphia Carjacking Task Force,” said U.S. Attorney Romero. “At the same time, we want carjackers, and would-be carjackers, to know that we can and have charged defendants as young as 18 years old federally, and in the cases we’ve prosecuted, we’ve obtained some very significant sentences. Carjacking defendants routinely receive sentences of seven to 15 years — and can even face up to a lifetime of imprisonment in some cases.”
ATF Special Agent in Charge DeGree talked about his agency’s role on the task force, providing investigators and employing ATF’s crime gun intelligence tools. He also highlighted one of the agency’s key cases, in which Tarik Chambers and Nikeem Leach-Hilton committed three back-to-back carjackings, then crashed into and critically injured an elderly driver while fleeing from police. Each man was sentenced to more than 18 years in prison. Two other defendants in the same carjacking crew, Rashad Johnson-Price and Khasir Lynch, have pleaded guilty to additional carjackings; each faces about a decade in federal prison when sentenced.
“Our team of ATF special agents are working tirelessly with our partners in the Philadelphia Carjacking Task Force to seek justice and prevent these dangerous crimes,” said Special Agent in Charge DeGree. “Carjacking is not only a deadly dangerous crime, it is a serious federal offense, carrying lengthy federal prison sentences, even for first-time offenders.”
FBI Special Agent in Charge Jacobs looked at the Bureau’s investigative role and reviewed the cases of Shamire Young and Robert Riles. Young and three co-conspirators committed a carjacking at gunpoint in Northwest Philadelphia, pistol-whipping one of the victims; Young pleaded guilty and was sentenced to seven years behind bars. Riles and two co-conspirators committed a carjacking at gunpoint of a mother and daughter in West Philadelphia, with Riles pleading guilty and receiving a sentence of more than 11 years in prison.
“Whether a single subject or a group of subjects — with criminal history or without — the message is simple. Your actions have consequences,” said Special Agent in Charge Jacobs. “No matter who you are, the FBI and each agency on this task force will hold you to account.”
Philadelphia Police Commissioner Bethel cited the decrease in carjackings in the city over the last two years, crediting the work of the task force for getting numerous violent offenders off the street. He underscored the importance of partnerships like the Carjacking Task Force and how local and federal authorities must work collectively to reduce violent crime.
Perry County Commonwealth Attorney Arrested and Charged with Federal Honest Services Wire FraudRead the Press Release
LONDON, Ky.— The Commonwealth’s Attorney, for the 33rd Judicial Circuit of Kentucky, Scott Blair, 51, of Hazard, Ky., was charged with committing honest services wire fraud, via a federal criminal complaint on Friday.
The criminal complaint alleges that, from April 2020 to March 2024, while serving as the elected Commonwealth’s Attorney for Perry County, Blair used his position of public trust and authority to assist various individuals who were facing criminal charges in Perry County. The complaint further alleges there are numerous instances in which Blair requested something of value, including sexual favors and methamphetamine, from multiple individuals, in exchange for taking actions in his official capacity to help those individuals.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; Russell Coleman, Attorney General of Kentucky; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the charges.
The investigation preceding the complaint was conducted by the FBI, Kentucky Attorney General’s Office, and KSP. Assistant U.S. Attorney Justin Blankenship is prosecuting the matter on behalf of the United States.
Blair’s initial appearance is currently scheduled for Monday at 2:45 p.m.
The charges and allegations contained in the complaint are accusations only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Owings Mills Man Found Guilty of Conspiracy, Visa Fraud, and Aggravated Identity Theft After 9-Day TrialRead the Press Release
Baltimore, Maryland – A federal jury has convicted Oluwatoyin Aborisade, a/k/a “Thoyinstar”, a/k/a “Toyin”, age 46, of Owings Mills, Maryland, for conspiracy to commit visa fraud, visa fraud, and aggravated identity theft.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; Special Agent in Charge Karen L. Brown Cleveland of the Department of State’s Diplomatic Security Service (DSS); and Washington District Office Director Ron Rosenberg of United States Citizenship and Immigration Services-Fraud Detection and National Security (USCIS-FDNS).
According to the evidence presented at his 9-day trial, from approximately December 2017 to October 2020, Aborisade conspired with others to commit visa fraud by presenting false statements and fraudulent immigration documents to the United States Citizenship and Immigration Services. Specifically, the evidence proved that Aborisade established Phemnick Legal Center LLC and other entities bearing the name Phemnick, to assist individuals and their families with immigration-related legal work, including filing official forms and paperwork to obtain immigration benefits in the United States. In fact, Aborisade was not a licensed immigration attorney, was not licensed to practice law in Maryland or elsewhere, and neither Aborisade nor Phemnick were accredited by the Board of Immigration Appeals to legally provide immigration services.
As detailed at trial, Aborisade advertised immigration related services to aliens and their family members and friends through the use of business cards, social media and websites. Aborisade gave false, inaccurate, and incomplete legal and immigration advice to alien-clients in order to induce them to retain his services and those of Phemnick. Aborisade’s clients paid him a fee to complete and submit the necessary documents. Aborisade knowingly presented false statements with respect to material facts in applications, affidavit and other documents required by immigration laws and regulations.
For example, as detailed in trial testimony, a co-conspirator paid Aborisade monetary compensation in order to draft a fraudulent lease to be submitted with various immigration filings to USCIS, in order to demonstrate that the co-conspirator had resided with his spouse, when in fact, he had not. Aborisade and a co-conspirator employee of Phemnick exchanged emails coordinating the editing and falsification of documents to be submitted in immigration filings to the USCIS, including psychological evaluations. As part of the fraud, Aborisade also provided a co-conspirator with sample lease agreements to falsify immigration documentation, as evidence that alien-clients had resided with their spouses, when in fact, they had not. The evidence proved that Aborisade submitted at least 12 fraudulent documents to the USCIS.
Finally, the evidence proved that Aborisade committed aggravated identity theft by using the personal identifying information (“PII”) of real people in fraudulent visa applications without the victims’ permission. Specifically, Aborisade used the names, passports, social security numbers, IRS Forms 1040, of one group of identity theft victims, and the name and medical license number of another identity theft victim in filings with USCIS, without the victims’ knowledge or permission.
Aborisade faces a maximum sentence of 15 years in federal prison for conspiracy to commit visa fraud, a maximum of 15 years in federal prison for each of 12 counts of visa fraud, and a mandatory minimum of two years in federal prison, consecutive to any other sentenced imposed, for each of 10 counts of aggravated identity theft. U.S. District Judge Julie R. Rubin has scheduled sentencing for August 1, 2024, at 2 p.m.
United States Attorney Erek L. Barron commended HSI, DSS, and the USCIS-FDNS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Michael Aubin and Darryl Tarver, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
Ohio Woman Sentenced for Violation of Freedom of Access to Clinic Entrances (FACE) Act Violation for Damaging Pregnancy CenterRead the Press Release
TOLEDO – Whitney Durant, AKA Soren Monroe, age 20, of Worthington, Ohio, was sentenced to two years of probation and a $2,000 dollar fine by Magistrate Judge Darrell A. Clay, after pleading guilty to one count of intentionally damaging a reproductive health care center, a violation of the Freedom of Access to Clinic Entrances Act (the “FACE Act”). Durant vandalized HerChoice, a reproductive health services clinic located in Bowling Green, Ohio, because the clinic offers pregnancy counseling, free pregnancy testing and ultrasounds, but not abortion services.
According to court documents and statements made in court, on April 15, 2023, Durant defaced the clinic’s building, spray painting the words, “LIARS,” “FAKE CLINIC,” “Fund Abortion,” “Abort God,” and “Jane’s Revenge.” Durant was a Bowling Green State University student at the time of this conduct.
“The United States Attorney’s Office is committed to neutrally enforcing federal laws that protect uninterrupted access to all clinics providing reproductive health services, whether those clinics provide women with options that include abortion care or whether they solely encourage women to consider non-abortion alternatives,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “This prosecution and sentence demonstrate that we will not tolerate efforts to impede patient access to the reproductive health care of their choice by someone who intentionally defaces or otherwise damages a clinic providing such services. The First Amendment protects peaceful protests, not blatant vandalism.”
“Today’s sentencing serves as a reminder that intentionally damaging or destroying the property of a facility because it provides reproductive health services is a federal violation of the FACE Act,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “The FBI and its local, state, tribal, and federal law enforcement partners will protect access to reproductive healthcare services for every American, thoroughly investigate FACE Act violators, and continue to aggressively pursue all violations of the statute.”
The FBI Cleveland Field Office, Toledo Resident Agency and Bowling Green Police Department investigated the case. Assistant U.S. Attorney Angelita Cruz Bridges and Wood County Prosecutor and Special Assistant U.S. Attorney Paul Dobson for the Northern District of Ohio prosecuted the case.
Anyone who has information about incidents of violence, threats and obstruction that target a patient or provider of reproductive health services or damage and destruction of reproductive health care facilities, should report that information to the FBI at https://tips.fbi.gov/.
Matawan Cardiologist Admits Defrauding Health Insurance Companies of More Than $1.9 Million Through Health Care Fraud SchemeRead the Press Release
TRENTON, N.J. – The owner and sole medical provider of a New Jersey medical practice admitted his role in a health care fraud scheme causing over $1.9 million in insurance reimbursements for false claims, U.S. Attorney Philip R. Sellinger announced today.
Dr. Fazal Panezai, 76, of Morganville, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to an information charging him with participating in a health care fraud scheme.
According to documents filed in the case and statements made in court:
Panezai, who owned and operated Matawan-Aberdeen Heart & Medical Center, for years submitted false claims to at least six health insurance benefit programs for office visits that either never occurred or did not take place for the length of time that he claimed.
For example, Panezai submitted claims for office visits lasting approximately 1,675 minutes – approximately 27.9 hours – for one day’s worth of office visits on May 27, 2022. Panezai also billed health insurance providers over $80,000 for office visits when he was out of the country and not conducting any office visits. Panezai also submitted claims for office visits when patients only picked up a prescription for a controlled substance from the front desk and never met with him. The false claims caused insurance plans to issue reimbursement checks to the center. Panezai kept the illicit profits, which totaled more than $1.9 million.
The charge of health care fraud is punishable by a maximum of 10 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Aug. 20, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea. He also thanked the Matawan Police Department.
The government is represented by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit in Newark.
panezai.information.pdfMaryland man who illegally purchased 59 guns in 17 months sentencedRead the Press Release
ALEXANDRIA, Va. – A Temple Hills, Maryland, man was sentenced today to a year and two months in prison for making false statements while purchasing firearms in Virginia.
According to court documents, from August 2020 through December 2021, Robert Smith, 48, bought a total of 59 firearms over 24 purchases, each time affirming on the required federal firearms forms that he lived in Arlington, Virginia. At no time during that period did Smith live at the provided address in Arlington. Maryland state laws regulating firearms purchases would not have allowed Smith to purchase this many firearms during this period of time, whereas Virginia law allows it.
The investigation into Smith began when four firearms he had purchased were recovered from four different individuals during traffic stops. In each case, the serial number of the firearm was obliterated. During the prosecution of this case, at least two additional firearms linked to Smith were recovered, again with obliterated serial numbers. Aside from these, two were recovered from Smith and he did not report any of the firearms stolen. The locations of the remaining firearms he purchased are unknown to law enforcement.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorneys Nicholas Durham and Ronald L. Walutes Jr. prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-90.
Maryland Man Indicted on Charges He Killed His Girlfriend’s HusbandRead the Press Release
WASHINGTON – Keyon Slaughter, 27, of Waldorf, Maryland, was arraigned today on an indictment charging him with the December 2022 murder of Dana Bailey, Jr., announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
The indictment charges Slaughter with first-degree premeditated murder while armed, first‑degree felony murder while armed, first-degree burglary while armed, and related firearm offenses, including illegal possession of a firearm by a convicted person, punishable by imprisonment for a term exceeding one year.
According to the government’s evidence, in the morning hours of December 5, 2022, Slaughter entered the apartment that his girlfriend shared with her husband, Dana Bailey, Jr., in Southeast, Washington, D.C. Bailey had learned of his wife’s affair with Slaughter earlier in 2022. Slaughter confronted and shot Bailey once in the chest, killing him. Slaughter then fled the scene and traveled to North Carolina. Before Bailey died, he identified Slaughter as the murderer to a responding officer by Slaughter’s nickname, “Papi.” At that time, defendant was on supervised probation for a 2019 conviction for armed robbery in Charles County, Maryland. Slaughter was arrested in this case in July 2023 and has been detained pending trial since his arrest.
This case is being investigated by members of MPD’s Homicide Branch. The case is being prosecuted by Assistant U.S. Attorney Charles R. Jones.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Manderson Man Sentenced to Seven Years in Federal Prison for Domestic ViolenceRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Manderson, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner and Tampering with a Witness. The sentencing took place on April 8, 2024.
Cruz Gibbons, 28, was sentenced to seven years in federal prison for the Tampering conviction, and five years in federal prison—the statutory maximum—for the Assault conviction, followed by three years of supervised release. The sentences were ordered to run concurrently. Gibbons was also ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Gibbons was indicted for Assault Resulting in Substantial Bodily Injury to an Intimate Partner, Distribution of a Controlled Substance to an Individual Under 21 and Tampering with a Witness by a federal grand jury in October of 2023. He pleaded guilty on January 12, 2024.
The convictions stem from Gibbons beating his former girlfriend in August of 2023, which caused her substantial bodily injury. After being arrested, Gibbons contacted the victim hundreds of times from the jail and persuaded her to refuse to testify. Notwithstanding Gibbons’ efforts to thwart the investigation and case, investigators successfully assembled a case against Gibbons, leading to his guilty pleas and sentencing.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Gibbons was immediately remanded to the custody of the U.S. Marshals Service.
Man Sentenced to 180 Months in Prison for Bank RobberyRead the Press Release
Rock Island, Ill. – A Chicago, Illinois, man, Eric A. Boyd, 55, of the 700 block of Chicago, Illinois, has been sentenced to 180 months in the Bureau of Prisons, to be served consecutive to a U.S. District Court for the Northern District of Illinois sentence, followed by a 5-year term of supervised release, for armed bank robbery.
At the sentencing hearing, the government presented evidence that, on the morning of May 1, 2023, Boyd entered a Chase Bank in Moline, Illinois, wearing a mask and carrying a duffle bag. Boyd brandished an apparent firearm, indicated he had a bomb, and ordered employees and customers to “get on the ground”. Boyd then placed the duffel bag on the counter and directed bank employees to fill the bag with currency.
Also at the hearing, U.S. District Court Judge James E. Shadid found that, in January of 2021, Boyd was released early from a previous prison sentence for multiple armed bank robberies, and that at the time of this offense he was on supervised release from the Bureau of Prisons. Judge Shadid also noted that Boyd’s extensive criminal history indicated he was a risk to reoffend, that prior prison sentences had not deterred Boyd from engaging in new crimes, and that a lengthy sentence was necessary to protect the community from further harm.
Boyd was arrested on May 5, 2023, and has remained in the custody of the United States Marshals Service since his arrest. Boyd pleaded guilty on September 19, 2023.
The statutory penalties for armed bank robbery are up to 25 years in prison.
Moline Police Department investigated the case with assistance from the Federal Bureau of Investigation, Springfield Field Office. Supervisory Assistant U.S Attorney John Mehochko represented the government in the prosecution.
The case against Boyd is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Lowell Man Arrested for Child Pornography OffensesRead the Press Release
BOSTON – A Lowell man has been arrested for child pornography offenses.
Steven Armando Estrada Ramirez, 21, was charged with receipt and possession of child sexual abuse material (CSAM). Estrada Ramirez made an initial appearance in federal court in Boston yesterday.
According to the charging documents, Estrada was identified as a participant in multiple groups on a mobile chat application, in which the primary purpose of the group, is for users share and view CSAM. It is alleged that multiple files located within those chat application groups depicted child pornography. During a search of his residence, Estrada was found to be in possession of a USB drive containing approximately 800 video files, many of which had filenames descriptive of child pornography, and the majority of which depicted child pornography. The files allegedly depicted children who appeared to be approximately one to eight years old.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Lauren Maynard of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Louisville Man Sentenced to Ten Years in Federal Prison for Attempted Online EnticementRead the Press Release
Louisville, Ky. – A Louisville, Kentucky, man was sentenced yesterday to 10 years in federal prison for attempted online enticement of a minor.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.
According to court documents, Joshua Ryan Teichman, 33, was sentenced to 10 years in prison, followed by 15 years of supervised release, for one count of attempted online enticement of a minor. Teichman used a cellular telephone to access online applications via the internet to communicate with a minor female and an undercover law enforcement agent he believed to be the minor female. During those communications he knowingly attempted to entice the minor to engage in criminal sexual activity by exchanging sexually explicit images and making plans to meet in person for sexual contact.
There is no parole in the federal system.
This case was investigated by the FBI.
Assistant United States Attorneys A. Spencer McKiness and Jo E. Lawless prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Louisville Man Sentenced to over 15 Years in Federal Prison for Attempted Sex Trafficking of Children and Attempted Online Enticement of a MinorRead the Press Release
Louisville, KY – A Louisville man was sentenced yesterday to 15 years and 8 months in federal prison for attempted sex trafficking of children and attempted online enticement of a minor.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Kentucky Attorney General Russell Coleman, Special Agent in Charge Robert Holman of the United States Secret Service, and Chief Richard Sanders of the Jeffersontown Police Department made the announcement.
According to court documents, Justin Nelson Aubrey, 26, was sentenced to 15 years and 8 months in prison, followed by a life term of supervised release, for one count of attempted sex trafficking of children and one count of attempted online enticement of a minor. Aubrey used a cellular telephone to access online applications via the internet to communicate with two individuals, then cooperating with law enforcement, to negotiate to pay for sex with children. Aubrey subsequently showed up, with money, to meet one of the children before being apprehended by law enforcement.
There is no parole in the federal system.
This case was the result of a joint federal, state, and local operation called Operation Angel, aimed at making federal arrests of individuals who preyed upon children. The United States Secret Service, the Kentucky Office of the Attorney General, and the Jeffersontown Police Department investigated the case.
Assistant U.S. Attorneys Stephanie M. Zimdahl and Jo E. Lawless prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Justice Department’s Procurement Collusion Strike Force Continues Strategic Growth, adds Four National PartnersRead the Press Release
NEWARK, N.J. – The Justice Department announced today that the Procurement Collusion Strike Force (PCSF) is adding four new national partners, for a total of 38 agencies and offices committed to deterring, detecting, investigating, and prosecuting antitrust crimes and related schemes that target government procurement, grants, and program funding at all levels of government.
The new partners include three U.S. Attorney’s Offices in districts with diverse government spending oversight priorities and proven PCSF and Antitrust Division relationships:
- Philip R. Sellinger, District of New Jersey
- S. Lane Tucker, District of Alaska
- Duane A. Evans, Eastern District of Louisiana
The PCSF is also welcoming Department of Commerce Office of Inspector General, whose oversight of billions of dollars authorized under the Infrastructure Investment and Jobs Act and Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022 closely aligns with PCSF priorities.
U.S. Attorney Philip R. Sellinger“A level playing field and fair competition are vitally important to ensure that taxpayers are getting the best value for their money when government contacts are awarded. My office is proud to join this national effort to combat price-fixing, bid rigging, and any type of collusion or fraud in government procurement. Working with our investigative partners, we will hold accountable anyone who tries to corrupt the procurement process.”
“Since 2019, the Procurement Collusion Strike Force has aggressively investigated and prosecuted crimes that undermine and distort the competitive process in taxpayer-funded procurements,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “With new investments in infrastructure, energy and hi-tech manufacturing the PCFS’ strategic expansion to include these four partners positions it to accomplish its important mandate more effectively.”
“Billions in federal funds are coming into our state to improve the lives of Alaskans, making it imperative that those tax dollars are used for their intended purpose and not illegally obtained,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The implementation of the Procurement Collusion Strike Force in Alaska showcases my office’s commitment to take action against collusive conduct and related fraudulent schemes by individuals or corporations that threaten government spending destined to progress our great state.”
“We welcome the new partnership and expertise that the PCSF brings to our district,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Our office now has access to an important force multiplier, the investigatory strength and institutional knowledge of 37 fellow agencies and offices dedicated to enforcing antitrust laws and protecting the integrity of our government procurement programs. Indeed, it will become a formidable partnership laser-focused on deterring and prosecuting procurement fraud.”
“Preventing, detecting and defeating criminal activity related to federal procurement and grant programs is a high priority for Commerce OIG,” said Acting Inspector General Roderick Anderson of the Department of Commerce. “We are pleased to join this strike force and look forward to collaborating with our partners to enhance our collective efforts to combat antitrust violations, ensure integrity within government procurements and spending and maximize value for taxpayers.”
In November 2019, the Department of Justice created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Justice Department’s Procurement Collusion Strike Force Announces Four New National Law Enforcement PartnersRead the Press Release
The Justice Department announced today that the Procurement Collusion Strike Force (PCSF) is adding four new national partners for a total of 38 agencies and offices committed to deterring, detecting, investigating and prosecuting antitrust crimes and related schemes that target government procurement, grants and program funding at all levels of government.
The new partners include three U.S. Attorneys’ Offices in districts with diverse government spending oversight priorities and proven PCSF and Antitrust Division relationships:
- U.S. Attorney S. Lane Tucker for the District of Alaska
- U.S. Attorney Duane A. Evans for the Eastern District of Louisiana
- U.S. Attorney Philip R. Sellinger for the District of New Jersey
The PCSF is also welcoming the Department of Commerce Office of Inspector General (OIG), whose oversight of billions of dollars authorized under the Infrastructure Investment and Jobs Act and Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 closely aligns with PCSF priorities.
“Since 2019, the Procurement Collusion Strike Force has aggressively investigated and prosecuted crimes that undermine and distort the competitive process in taxpayer-funded procurements,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “With new investments in infrastructure, energy and hi-tech manufacturing the PCSF’ strategic expansion to include these four partners positions it to accomplish its important mandate more effectively.”
“Billions in federal funds are coming into our state to improve the lives of Alaskans, making it imperative that those tax dollars are used for their intended purpose and not illegally obtained,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The implementation of the Procurement Collusion Strike Force in Alaska showcases my office’s commitment to take action against collusive conduct and related fraudulent schemes by individuals or corporations that threaten government spending destined to progress our great state.”
“We welcome the new partnership and expertise that the PCSF brings to our district,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Our office now has access to an important force multiplier, the investigatory strength and institutional knowledge of 37 fellow agencies and offices dedicated to enforcing antitrust laws and protecting the integrity of our government procurement programs. Indeed, it will become a formidable partnership laser-focused on deterring and prosecuting procurement fraud.”
“A level playing field and fair competition are vitally important to ensure that taxpayers are getting the best value for their money when government contacts are awarded,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “My office is proud to join this national effort to combat price-fixing, bid rigging, and any type of collusion or fraud in government procurement. Working with our investigative partners, we will hold accountable anyone who tries to corrupt the procurement process.”
“Preventing, detecting and defeating criminal activity related to federal procurement and grant programs is a high priority for Commerce OIG,” said Acting Inspector General Roderick Anderson of the Department of Commerce. “We are pleased to join this strike force and look forward to collaborating with our partners to enhance our collective efforts to combat antitrust violations, ensure integrity within government procurements and spending and maximize value for taxpayers.”
In November 2019, the Justice Department created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.
Jacksonville Woman Sentenced to 10 Years for Distributing Methamphetamine and FentanylRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan has sentenced Annette Jones (37, Jacksonville) to 10 years in federal prison for conspiring to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine. Jones entered a guilty plea on November 16, 2023.
According to court documents, Jones was part of a drug trafficking organization (DTO) that distributed large quantities of methamphetamine and fentanyl in Jacksonville between 2020 and 2023. During this time, Jones was responsible for distributing over 50 kilograms of methamphetamine and over 5 kilograms of fentanyl. Between December 2022 and February 2023, Jones sold over 1 kilogram of methamphetamine and a loaded firearm with an extended magazine to an undercover law enforcement officer. On March 15, 2023, federal agents and local law enforcement officers executed a search warrant at Jones’s residence and recovered two loaded firearms, including one that had been reported stolen.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Nassau County Sheriff’s Office, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Aakash Singh.
Jackson Man Sentenced to over 15 Years in Prison for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to 188 months in federal prison for possession with intent to distribute 5 grams or more of methamphetamine and possession of a firearm by a convicted felon.
According to court documents, in June 2022, as part of an ongoing investigation, agents executed a search warrant at the residence of Charleston Porter, 34, in Jackson where they recovered a .40 caliber semi-automatic pistol, a Glock magazine, ammunition, and methamphetamine. Agents also found an extended handgun magazine containing ammunition.
Porter pled guilty on July 19, 2023, to possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon.
U.S. Attorney Todd W. Gee and Special Agent in Charge Steven Hofer of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics and the Ridgeland Police Department. The case was prosecuted by Assistant United States Attorney Keesha Middleton.
The case is the result of an extensive investigation targeting illegal drug trafficking in the Hinds County, Mississippi, and surrounding areas. The operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on April 10 was:
Kyle Barclay Wallace, 36, of Kalispell, on charges of false statement in acquisition of a firearm and receipt of a firearm by person under indictment. If convicted of the most serious crime, Wallace faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Wallace was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Flathead County Sheriff’s Office conducted the investigation. PACER case reference. 22-29.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on April 9 was:
Taneal Raschae Sutherland, 30, of Deer Lodge, on charges of kidnapping and assault with intent to commit a felony. If convicted of the most serious crime, Sutherland faces a maximum of life in prison, a $250,000 fine and five years of supervised release. Sutherland was detained pending further proceedings. The FBI and Rocky Boy’s Police Department conducted the investigation. PACER case reference. 24-21.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illinois Man Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
An Illinois man pleaded guilty yesterday to preparing false income tax returns for clients.
According to court documents and statements made in court, Gary Sandiego, of Barrington, owned and operated G. Sandiego and Associates, a tax preparation business. For tax years 2014 through 2017, he prepared and filed false income tax returns for his clients. Instead of relying on information provided by the clients, Sandiego either inflated or entirely fabricated expenses to falsely claim on the returns Residential Energy Credits and employment-related expense deductions. As a result, Sandiego caused a tax loss to the IRS of approximately $4,586,154.
Sandiego is scheduled to be sentenced on Aug. 14. He faces a maximum penalty of three years in prison for each count. Sandiego also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Andrew Kameros and Trial Attorney Sara Henderson of the Tax Division are prosecuting the case.
Honduran National Indicted for Illegal Re-Entry of Removed AlienRead the Press Release
NEW ORLEANS, LOUISIANA – MARLON CHAVEZ-AGUIRRE, age 50, a native of Honduras, was indicted on April 11, 2024, for illegal re-entry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, CHAVEZ-AGUIRRE reentered the United States illegally after being previously deported on September 24, 2012. If convicted, CHAVEZ-AGUIRRE faces a sentence of up to 2 years imprisonment, up to 1 year of supervised release, up to a $250,00 fine, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of United States Border Patrol in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Guatemala Native Charged with Illegal ReentryRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Camilo Antonio Batz-Ortiz, age 40, of Guatemala, was indicted on April 9, 2024, by a federal grand jury for illegal reentry into the United States by a previously deported alien and possession of a fraudulent immigration document.
According to United States Attorney Gerard M. Karam, the indictment alleges that Camilo Antonio Batz-Ortiz was previously removed from the United States on September 9, 2013, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on March 4, 2024, Batz-Ortiz was encountered in Clinton County, Pennsylvania and at that time, he was in possession of a fraudulent Permanent Resident Card.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Tatum Wilson is prosecuting the case.
The maximum penalty under federal law for this offense is ten years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Grand Island Man Sentenced for Gun PossessionRead the Press Release
United States Attorney Susan Lehr announced that Thomas McHenry, 49, of Grand Island, Nebraska, was sentenced April 12, 2024, in federal court in Lincoln, Nebraska for possession of a firearm by a felon. Senior United States District Judge John M. Gerrard sentenced McHenry to 46 months’ imprisonment. There is no parole in the federal system. After McHenry’s release from prison, he will begin a 3-year term of supervised release.
In October of 2022, on a report of a disturbance, law enforcement in Grand Island were dispatched to a residence. Upon their arrival, several witnesses identified McHenry as the individual who had brandished a firearm and threatened to kill a family member. McHenry was arrested and it was determined he had numerous prior felony convictions. A search warrant was obtained for the residence and law enforcement found and seized seven firearms and numerous types of ammunition.
This case was brought as part of the Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
This case was investigated by the Grand Island Police Department and the Federal Bureau of Investigation.
Glastonbury Man Charged with Federal Gun OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that ANDREW PAYNE, 40, of Glastonbury, has been charged by federal criminal complaint with unlawfully possessing a firearm while being a user of a controlled substance.
As alleged in court documents and statements made in court, an ATF investigation identified Payne as a possible purchaser of machinegun conversion devices. In March 2023, investigators interviewed Payne and explained that these devices were illegal under federal law. Payne arranged through his attorney to turn in to ATF all of the illegal devices he claimed he had in his possession.
It is also alleged that, in the early morning hours of November 29, 2023, Hartford Police responded to a hotel on Brainard Road after hotel employees found a firearm in a hotel hallway. A hotel employee stated that the hotel guest who possessed the firearm, identified as Payne, had been acting erratically and crawling on the hallway floor. During a search of Payne’s room, police found used hypodermic needles and other evidence of drug use, and the investigation revealed that the firearm was registered to Payne. Payne was charged with state offenses and was ordered to surrender his firearms to a Federal Firearms Licensee (“FFL”). In addition, his state pistol permit was revoked.
It is further alleged that on March 18, 2024, Simsbury Police arrested Payne for violating the conditions of his release after it was determined that Payne had access to numerous firearms, firearm components, and firearm manufacturing equipment found in two units of a business complex at 2 Tunxis Road in the Tariffville section of Simsbury (See photos below). Investigators conducted searches of the locations on March 19 and March 20, 2024, and seized these items, which included machinegun conversion devices that ATF had advised Payne were illegal to possess. Payne had also represented in court after his November 2023 arrest that he did not have access to firearms. A search of Payne’s vehicle also revealed glassine envelopes containing suspected fentanyl, empty glassine envelopes, and used hypodermic needles.
Payne, who was released after his arrest on March 18, has been detained in state custody since March 20, when he was arrested after arriving at 2 Tunxis Road while investigators were executing a search warrant.
Payne made his initial appearance in Hartford federal court on April 11, 2024.
The charge of unlawfully possessing a firearm while being a user of a controlled substance carries a maximum term of imprisonment of 15 years imprisonment.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Simsbury Police Department, the Hartford Police Department, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorneys Margaret Donovan and Christopher Lembo.
Georgia Man Sentenced to Three Years in Prison for Laundering Millions in Proceeds from Fraud Schemes Perpetrated by Nigeria-Based Criminal EnterpriseRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that UWEMEDIMO UMOREN was sentenced to three years in prison for his participation in an international wire fraud conspiracy based in Nigeria, involving the theft of millions of dollars from victims across the U.S., by U.S. District Judge Victor Marrero. UMOREN pled guilty to conspiracy to commit wire fraud on August 28, 2023, before U.S. Magistrate Judge Robert W. Lehrburger.
U.S. Attorney Damian Williams said: “The multimillion-dollar fraud enterprise Uwemedimo Umoren participated in preyed on the trust of elder Americans and others, using deceitful tactics to drain their hard-earned savings. The impact of this financial exploitation on the victims is devastating. With today’s sentencing, justice is served, but our fight isn’t over. This case underscores the importance of collaboration between law enforcement agencies in combatting complex fraud schemes and safeguarding Americans from financial fraud and exploitation.”
According to allegations in the Indictment and other filings and statements made in court:
From at least in or about 2016 through at least in or about December 2021, UMOREN participated in a criminal enterprise (the “Enterprise”) based in Nigeria that conducted a series of scams against individuals and businesses located across the U.S. UMOREN facilitated the laundering of proceeds of the Enterprise’s investment, business email compromise, and romance scams. Members of the Enterprise used electronic messages sent via email, text messaging, or online dating websites to gain the trust of the victims, many of whom were vulnerable older men and women who lived alone, and caused the victims to transfer money to bank accounts controlled by members of the Enterprise.
UMOREN received fraud proceeds from victims of the Enterprise in more than a dozen business bank accounts that he controlled in Georgia. The business bank accounts were opened in the names of companies formed by the defendant that were purportedly involved in, among other things, automobile sales and health care. From in or about 2016 through at least in or about December 2021, UMOREN controlled at least 15 bank accounts held in the name of shell companies he controlled that received deposits totaling over approximately $8 million.
At least 17 individual and corporate victims lost money as part of UMOREN and his co-conspirators’ schemes. The victims include vulnerable, isolated, and elderly victims who entered into relationships after the deaths of their spouses and, over a period of several years, were induced to drain their entire retirement savings. Many victims experienced severe emotional harm, including a now-deceased man whose stress from losing his life savings to the schemes contributed to his suffering a stroke.
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In addition to the prison term, UMOREN, 62, of Hoschton, Georgia, was sentenced to three years of supervised release. UMOREN was also ordered to forfeit a money judgment in the amount of $8,230,516.04 and was ordered to pay $1,246,072 in restitution.
Mr. Williams praised the outstanding investigative work of the U.S. Secret Service (“USSS”). Mr. Williams also thanked the USSS Field Office in Atlanta, Georgia, for its assistance in the investigation of this case.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Juliana N. Murray is in charge of the prosecution.