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11 April 2024
Glenpool Man Sentenced for Assault with Intent to Commit Murder and StrangulationRead the Press Release
TULSA, Okla. – Friday, Paul Anthony Thompson, 36, was sentenced for Assault with Intent to Commit Murder in Indian Country and Assault of an Intimate Dating Partner by Strangling and Suffocating, and Attempting to Strangle and Suffocate in Indian Country, announced U.S. Attorney Clint Johnson.
U.S. District Judge John D. Russell sentenced Thompson to 216 months imprisonment, followed by 3 years of supervised release.
According to court documents, in March of 2023, Thompson tried to kill his spouse by strangling her with three different belts, causing her to lose consciousness. During the assault, he beat the victim with a belt, then strangled her with the belt until it broke. He then got another belt, looped it around her neck and dragged her around “like a dog.” When that belt broke, Thompson got a third belt. When she attempted to escape, he blocked her from leaving and said, “Till death do us part.”
Records reflect in December of 2018, Thompson assaulted a previous girlfriend by placing her in a chokehold and strangling her. The chokehold prevented her from breathing. Thompson prevented the victim from leaving with a child who was also present during the attack.
Thompson is a citizen of the Muscogee (Creek) Nation. Thompson will remain in custody pending transfer to the U.S. Bureau of Prisons.
The FBI and Muscogee (Creek) Nation Lighthorse Police Department investigated the case. Assistant U.S. Attorneys Stacey Todd, Leah Paisner, and Steven Briden prosecuted the case.
Gibsonia Resident Sentenced to Prison and Ordered to Pay $2.6 Million in Restitution for Long-Term Tax EvasionRead the Press Release
PITTSBURGH, Pa. - A resident of Gibsonia, Pennsylvania, has been sentenced in federal court to 24 months of incarceration, to be followed by three years of supervised release, and ordered to pay restitution to the Internal Revenue Service in the amount of $2,613,933.92 on his conviction of tax evasion, United States Attorney Eric G. Olshan announced today.
United States Senior District Judge David S. Cercone imposed the sentence on Eli M. Zatezalo, 52.
According to information presented to the Court, from October 2009 to January 2022, Zatezalo avoided the payment of outstanding tax liability to the IRS by transferring income into financial accounts of others to avoid IRS collection efforts.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Internal Revenue Service for the investigation leading to the successful prosecution of Zatezalo.
Fruitland Man Charged with AssaultRead the Press Release
ALBUQUERQUE – A Fruitland man is facing federal charges following allegations that he and his brother instigated a confrontation at a residence which culminated in a standoff with law enforcement officers. Justin Tso, 36, an enrolled member of the Navajo Nation, appeared in federal court for an initial appearance where the Court detained him pending a detention hearing, which has been scheduled for April 12, 2024.
The criminal complaint alleges that on March 23, 2024, Tso and his brother, Walliford Tso, went to Jane Doe’s home in Fruitland, New Mexico. Tso went into Jane Doe's home and asked for a cigarette. When she told him that she had no cigarettes, Tso took a machete that was lying near the front door without permission, then left.
Jane Doe’s significant other, John Doe 1, yelled after the brothers and a verbal altercation followed. After the exchange, the brothers chased John Doe 1 into the house and assaulted him. John Doe 1 was able to get away by slipping out of his shirt and exited the house with Jane Doe and their small child. The brothers followed and continued to assault John Doe 1. Jane Doe and John Doe called 911 using their cellphone. A Navajo Police Department officer arrived shortly after the incident and detained Tso.
Tso is charged with assault with a dangerous weapon and aiding and abetting. If convicted of the current charges, Tso faces up to 10 years in prison followed by five years of supervised release.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Meg Tomlinson is prosecuting the case.
View the Criminal ComplaintA criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Four federally charged for gang murder near YorktownRead the Press Release
NEWPORT NEWS, Va. – Three gang members have been charged, in addition to one previously charged defendant, with abduction and murder in York County, Virginia.
According to the indictment, in the early morning hours of May 6, 2023, Hezekiah Carney, 25, of Norfolk, Jamica Langley, 24, of Richmond, Donnisha Goodman, 26, of Portsmouth, and Acacia Jackson, 19, of New York, allegedly traveled to the victim’s residence on Bethel Street in Richmond, Virginia, to conduct a physical beating of the victim for a gang infraction. All were members of different regional sets of a national street gang, the Almighty Black P. Stone Nation. The group left the apartment after beating the victim.
Around an hour later, Goodman, Jackson, Carney, and Langley allegedly returned to the victim’s apartment, this time with an additional co-conspirator and fellow gang member, Jayquan Jones, 25, of Richmond. Some of them allegedly were armed and wearing masks. The group allegedly attacked the victim again before taking her from her residence. The group allegedly drove the victim in a Hyundai Sonata approximately an hour east of Richmond to a remote area off Old Williamsburg Road in York County, where they allegedly removed her from the car and executed her. The Medical Examiner found eight gunshot wounds to the head, abdomen, back, buttocks, and legs.
At approximately 6:30 a.m., deputies with the York-Poquoson Sheriff’s Office allegedly found the victim’s body, along with numerous shell casings with an "S&B” headstamp. On May 7, 2023, the Norfolk Police Department allegedly located and stopped the Sonata. Jackson, Goodman, and Langley allegedly were in the vehicle at the time. Investigators allegedly recovered a 9mm cartridge from the vehicle with the same “S&B" headstamp from casings found at the scene of the murder.
On March 5, Jackson pleaded guilty to conspiracy to commit kidnapping. She is scheduled to be sentenced on Aug. 22 and faces a maximum penalty of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Carney, Goodman, Langley, and Jones are charged with conspiracy to commit kidnapping and kidnapping resulting in death. If convicted of kidnapping resulting in death, they face a mandatory sentence of life imprisonment.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI's Norfolk Field Office; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Ronald Montgomery, York County Sheriff, made the announcement.
Assistant U.S. Attorneys Lisa McKeel and Mack Coleman and Special Assistant U.S. Attorney Alyssa Levey-Weinstein are prosecuting the case with substantial assistance provided by the Violent Crime and Racketeering Section of the Department of Justice’s Criminal Division.
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. 4:24-cr-1.
Former Teacher Sentenced for Sexual Abuse and Enticement of MinorsRead the Press Release
TULSA, Okla. – A former South Coffeyville middle school teacher was sentenced today for two counts of Sexual Abuse of a Minor in Indian Country and Coercion and Enticement of a Minor in Indian Country, announced U.S. Attorney Clint Johnson.
U.S. District Judge Sara E. Hill sentenced Harold Steven Moore, 41, of Kansas City, to 180 months imprisonment, followed by 12 years of supervised release. Upon his release, Moore will also be required to register as a sex offender.
“Children trust their teachers and Harold Moore betrayed that trust,” said U.S. Attorney Clint Johnson. “No child should ever have to question the motives of an adult they interact with at school. I commend the courageous victims that came forward.”
According to court documents, Moore was a teacher and coach at a South Coffeyville middle school. He had sexual relationships with two separate minor children beginning in 2006 and continuing through 2007. Both minor children were under the age of 16 years old and students at the middle school. Moore further admitted to enticing a third minor to engage in sexual activities while he was her coach. Moore made inappropriate comments of a sexual nature and engaged in improper touching.
Moore is a citizen of the Cherokee Nation and he will remain in custody pending transfer to the U.S. Bureau of Prisons.
The FBI, Cherokee Nation Marshal Service, and Montgomery County Sheriff's Office in Kansas investigated the case. Assistant U.S. Attorney Scott Dunn prosecuted the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Former East St. Louis, Illinois, Police Officers Plead Guilty to Civil Rights Offenses Related to Excessive Force IncidentRead the Press Release
Two former East St. Louis, Illinois, Police Department (ESLPD) officers, Vincent Anderson, 61, and Jason Boyd, 51, pleaded guilty today in U.S. District Court to civil rights offenses related to Boyd’s use of unreasonable force against two juvenile detainees.
According to court documents, on Oct. 3, 2019, two juveniles, who had been detained by the ESLPD, were sleeping in separate, locked holding cells in the East St. Louis jail. At that time, ESLPD Officer Jason Boyd banged on the glass of the juveniles’ holding cells, but the juveniles did not wake up. Boyd took pepper spray out of his holster in view of the other officers — including an ESLPD supervisor, Captain Vincent Anderson, stepped into one of the locked holding cells and pepper sprayed one of the sleeping juveniles. The other officers — including Anderson — watched Boyd spray the juvenile and did nothing to stop him despite their duty to intervene in an unreasonable use of force.
Boyd and one of the other officers agreed that the second juvenile should also be sprayed. They walked to the holding cells, where Anderson and another officer had remained. Boyd then pepper sprayed the second sleeping juvenile. Again, none of the other officers acted to stop Boyd. Further, none of the officers acted to obtain care for the juveniles, despite the officers’ duty to obtain necessary medical care for detainees.
Boyd pleaded guilty to two misdemeanor civil rights violations for his use of unreasonable force against the juveniles and Anderson pleaded guilty to two misdemeanor civil rights violations for his failure to intervene in Boyd’s use of unreasonable force.
Sentencing hearings are scheduled for July 23. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Rachelle Aud Crowe for the Southern District of Illinois and Special Agent in Charge David G. Nanz of the FBI Springfield Field Office made the announcement.
The FBI Springfield Field Office is investigating the case.
Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section is prosecuting the case with support from the U.S. Attorney’s Office for the Southern District of Illinois.
Former California Resident Involved in Interstate Cocaine Trafficking Organization Pleads GuiltyRead the Press Release
PITTSBURGH, Pa. – A former resident of Oxnard, California, pleaded guilty in federal court on April 10, 2024, to a drug trafficking charge, United States Attorney Eric G. Olshan announced today.
Christopher Andrew Salgado, 24, pleaded guilty before United States District Judge W. Scott Hardy to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine.
In connection with the guilty plea, the Court was advised that, between March 2022 and September 2022, an Organized Crime Drug Enforcement Task Force (OCDETF) conducted an investigation into a drug trafficking organization operating in the Western District of Pennsylvania. The investigation revealed that a cocaine source of supply in California would mail parcels containing kilogram quantities of cocaine to a residence in Aliquippa, Pennsylvania. After investigators seized a parcel containing two kilograms of cocaine before it reached the Aliquippa residence, the source of supply began sending the parcels to Salgado in West Virginia. Thereafter, mobile and electronic surveillance confirmed that Salgado would drive the parcel from West Virginia to the Pittsburgh International Airport, pick up co-defendant Jose Sanchez, who would arrive on flights from California, and transport both the parcel and Sanchez to another co-defendant, Romaro Foster Sr., in Aliquippa.
Following one re-supply of cocaine to Foster Sr., law enforcement followed Salgado as he drove Sanchez back to the Pittsburgh airport, and observed Salgado dispose of a box in the trash of a fast food restaurant parking lot. Investigators recovered the box, observing a shipping label with Salgado’s West Virginia address as well as drug packaging material within the box. A field test of the packaging revealed the presence of cocaine, a Schedule II controlled substance.
In August 2022, investigators seized a parcel sent from California to Salgado in West Virginia. The parcel contained approximately two kilograms of cocaine. Investigators conducted a controlled delivery operation of the parcel at Salgado’s residence, executing a federal search warrant at the residence in conjunction with the operation. From Salgado’s bedroom, investigators recovered another parcel sent from California to Salgado containing approximately two kilograms of cocaine, along with a loaded 9mm handgun, an empty pistol magazine, a box of ammunition, and a digital scale.
Judge Hardy scheduled sentencing for August 14, 2024. The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5 million, or both.
Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded Salgado to the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Department of Homeland Security, U.S. Postal Inspection Service, and Drug Enforcement Administration conducted the investigation that led to the prosecution of Salgado.
This prosecution is part of an 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.
Former California Correctional Officer Pleads Guilty to Accepting BribesRead the Press Release
SACRAMENTO, Calif. — Stephen Joseph Crittenden, 44, of Suisun City, pleaded guilty today to bribery concerning programs receiving federal funds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Crittenden was a California Department of Corrections and Rehabilitation correctional officer at the California Medical Facility in Vacaville. From 2021 through 2023, he accepted bribes, totaling more than $45,000, from inmates to smuggle cellphones into the California Medical Facility.
Crittenden is scheduled to be sentenced on Sept. 12, 2024, by U.S. District Judge Troy L. Nunley. Crittenden faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
Former Boston Woman Sentenced for Failing to Appear to Serve a Federal Prison SentenceRead the Press Release
BOSTON – A former Boston woman, who was sentenced to federal prison in 2021 for misuse of a passport, was sentenced today to failing to surrender to serve her sentence.
Yris Sanchez, 55, was sentenced by U.S. District Court Judge Denise J. Casper to a sentence of six months in prison, to be followed by three years of supervised release. Today’s sentence will run concurrent with Sanchez’s 15-month sentence for misuse of a passport. She will be subject to deportation upon completion of her sentence. In December 2023, Sanchez pleaded guilty to failing to appear to serve a federal sentence.
In May 2020, Sanchez was convicted of misusing a passport and was sentenced to 15 months in prison. Because of the COVID-19 pandemic, Sanchez requested release on conditions and to self-report to serve her sentence. The Court granted this request and released Sanchez on an appearance bond. Following several extensions of her self-report date, Sanchez failed to surrender to the Bureau of Prisons in June 2021 to serve her sentence. For approximately 20 months after her failure to report, Sanchez resided in the Dominican Republic where she posted various daily undertakings on Facebook, including trips to the beach, pool and social functions. In July 2021, the Court forfeited Sanchez’s secured appearance bond and entered a further default judgment of $47,500 against Sanchez.
Acting United States Attorney Joshua S. Levy; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Brian Kyes, U.S. Marshal for the District of Massachusetts made the announcement today. Assistant U.S. Attorney William F. Abely, Chief of the Criminal Division prosecuted the case.
Florida woman convicted in cryptocurrency money laundering schemeRead the Press Release
TYLER, Texas – A Jacksonville, Florida woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Sharena Seay, 39, pleaded guilty to money laundering before U.S. Magistrate Judge John D. Love on April 11, 2024.
According to information presented in court, Seay laundered the proceeds of her drug trafficking operations through cryptocurrency. The defendant supplied alpha-Pyrrolidinopentiophenone (alpha-PVP), which is often called “flakka,” and similar synthetic cathinones, such as Eutylone or alpha-PiHP. Seay distributed alpha-PVP and other controlled substances to various customers across the United States. Customers who purchased controlled substances from Seay paid for their purchases with cash. Seay laundered the cash proceeds through cryptocurrency in order to purchase more controlled substances on the dark web and to conceal her criminal activity.
Seay faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The cases were investigated by the U.S. Secret Service and the U.S. Postal Inspection Service with the assistance of Internal Revenue Service – Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and were prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and D. Ryan Locker.
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Federal jury finds Anchorage man guilty of defrauding company of $3MRead the Press Release
ANCHORAGE, Alaska – An Anchorage Police Department officer was convicted of 24 criminal counts today for his participation in a scheme to defraud a corporation of millions of dollars.
According to court documents and evidence presented at trial, Nathan Michael Keays, 44, was friends with a ConocoPhillips employee, Forrest Wright, 44. The two conspired to use Keays’s foam insulation business, Eco Edge Armoring LLC, to defraud ConocoPhillips by approving contracts for goods and services that were never provided. Over the course of the scheme, Keays and Wright obtained more than $3 million from fraudulent bills. Wright pleaded guilty in March 2021 and is scheduled to be sentenced in May 2024.
The scheme started in 2019 when Wright was a Senior Drilling and Wells Planner with ConocoPhillips, where he was responsible for ordering materials and labor for drilling and wells projects. Wright had the authority to approve material and labor orders for up to $1 million and was trusted to recommend vendors for supplies.
Keays conspired with Wright to craft fraudulent emails and alter the Eco Edge Armoring LLC website to present the company as a major oil and gas services enterprise, when in fact, it had no employees and no ability to provide goods or services in the oil industry. Wright sent emails from his personal account to Keays’s personal account with instructions to send technical emails to Wright’s business account to establish Eco Edge Armoring LLC as an approved vendor. Wright would then forward these emails to other personnel within ConocoPhillips to ensure Keays’s company was approved as a frequently used vendor.
After achieving the approved vendor status, Keays submitted fraudulent invoices totaling over $3.2 million for materials that did not exist and labor that was never performed. Keays also submitted fraudulent timesheets in the name of nonexistent employees to make it appear that work had actually been performed. Wright used his position in the company to direct personnel to approve the payment of invoices by falsely representing that the nonexistent materials were delivered and accounted for and that the work outlined in the invoices was performed.
Keays received $3,087,720 in electronic payments from ConocoPhillips for the fraudulent material and labor through a bank account for Eco Edge Armoring LLC and split the proceeds with Wright by issuing checks to Spectrum Consulting, a shell entity created by Wright. In total, Keays personally received more than $1.4 million. Keays used his proceeds of the scheme for personal expenses, including paying off loans, purchasing real estate and buying cryptocurrency.
Keays was convicted of one count of conspiracy to commit wire fraud, 11 counts of wire fraud, one count of conspiracy to commit money laundering and 11 counts of money laundering.
“This successful conviction represents closure in a complex white-collar crime case and demonstrates that no one is above the law,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “To anyone thinking of committing a financial crime, know that my office, in collaboration with our law enforcement partners across the state, will work vigorously to find you and prosecute you to the furthest extent of the law.”
“This verdict demonstrates the FBI’s commitment to investigate and hold accountable those who engage in fraudulent schemes for personal gain,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “With special agents, forensic accountants, and prosecutors who specialize in unraveling complex financial crimes, the FBI and our partners will continue to disrupt fraudsters and bring them to justice.”
The FBI Anchorage Field Office investigated the case.
Assistant U.S. Attorneys Michael Heyman and James Klugman are prosecuting the case.
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Federal Way, Washington man pleads guilty to assault with sexual motivation on flight to SeattleRead the Press Release
Seattle – A 25-year-old Federal Way, Washington man pleaded guilty today in U.S. District Court in Seattle to Assault with Intent to Commit a Felony, announced U.S. Attorney Tessa M. Gorman. Desmond D. Bostick faces up to ten years in prison when sentenced by U.S. District Judge Jamal N. Whitehead on July 18, 2024.
According to records filed in the case, on June 20, 2023, Bostick was seated in the last row of the plane on an Alaska Airlines flight from San Diego to Seattle. Bostick was in the aisle seat and the victim, who was a stranger to Bostick, was seated in the middle seat. Bostick allegedly repeatedly touched the victim on the thigh and grabbed her buttocks when she stood to allow the passenger in the window seat to exit the row. Bostick touched her buttocks a second time when the victim stood for the window seat passenger to return to his seat. In the plea agreement Bostick admits he touched the victim to arouse his sexual desire.
After the plane landed, the victim reported the conduct to the flight crew and law enforcement began its investigation. Bostick had left the airport and his location was unknown. The federal grand jury returned an indictment in the case on September 27,2023. Bostick was located and arrested by the FBI on February 9, 2024.
Under the terms of the plea agreement, both prosecution and defense will recommend a nine-month prison term. The recommendation is not binding on the court and Judge Whitehead can impose any sentence allowed by law.
This case was investigated by the FBI with the assistance of the Port of Seattle Police.
The case is being prosecuted by Assistant United States Attorneys Sean H. Waite and Kristine Foerster.
Federal Jury Finds Wisconsin Woman Guilty of Trafficking MethamphetamineRead the Press Release
DULUTH, Minn. – A federal jury found a Wisconsin woman guilty of possession with the intent to distribute methamphetamine, announced U.S. Attorney Andrew M. Luger.
Following a three-day trial before Judge John R. Tunheim, Shue Moua, 35, was convicted yesterday on one count of possession with intent to distribute methamphetamine. A sentencing hearing will be scheduled at a later date.
According to the evidence presented at trial, a deputy with the Carlton County Sheriff’s Office executed a traffic stop after witnessing Moua’s erratic behavior behind the wheel of a Ford Taurus in the early hours of March 2, 2023. During their interaction, Moua presented an expired Wisconsin driver’s license and admitted she did not have a valid license or insurance coverage. Officers also observed signs of impairment, namely bloodshot eyes and slurred speech, and conducted a series of field sobriety tests, which she failed. After initially consenting to a search of her vehicle, Moua revoked consent and was subsequently arrested for suspected impaired driving. A search of her person prior to her arrest revealed $634 in cash, and while conducting an inventory of her vehicle prior to impoundment, officers discovered approximately two pounds of methamphetamine and unused plastic baggies.
This case is the result of an investigation conducted by the Drug Enforcement Administration and the Carlton County Sheriff’s Office.
Assistant U.S. Attorneys Matthew D. Evans and Michael P. McBride tried the case.
Federal Jury Convicts Putnam County Man for FHA Fraud SchemeRead the Press Release
HUNTINGTON, W.Va. – After two days of trial, a federal jury convicted Jason Trador, 46, of Scott Depot, on April 10, 2024, of making a false statement to federal agents, willfully overvaluing property on a loan application, and three counts of making a false statement to the United States Department of Housing and Urban Development (HUD)
Evidence at trial proved that Trador fraudulently obtained a $223,870 home mortgage insured by the Federal Housing Administration (FHA) from his then-employer, Victorian Finance LLC, a mortgage lending business. At the time he applied for the FHA loan in August 2018, Trador was delinquent on paying his federal taxes for a prior tax year. Because of the tax debt, Trador was not eligible for an FHA loan under existing FHA program rules. Trador deceived Victorian Finance into approving the application and the FHA into insuring the mortgage by providing a series of falsified documents including a falsified Internal Revenue Service (IRS) tax transcript purporting to show a payoff of the delinquent $8,151 tax debt.
Trador also submitted three heavily edited bank statements to Victorian Finance. Each falsified bank statement substantially inflated the balances in Trador’s bank accounts. Two of the falsified statements reported balances of approximately $27,000 and $15,000 for Trador’s personal bank account when in fact the account had negative balances. Line items, such as for insufficient funds fees, were removed from the falsified bank statements and a line item was added to deceive Victorian Finance into believing that he had paid off the delinquent $8,151 tax debt. Evidence at trial proved the purported payoff never occurred and that Trador was still delinquent on the federal tax debt as of March 2024.
On September 4, 2018, Trador willfully overvalued his assets on a loan application when he signed a Uniform Residential Loan Application that included the false balances from the falsified bank statements.
On May 6, 2022, Trador lied to investigators with HUD’s Office of Inspector General (OIG) and the Federal Bureau of Investigation (FBI) when they interviewed Trador at his Scott Depot residence about his application for the FHA-insured mortgage. Trador denied submitting false bank statements with his loan application, and blamed his fellow employees of the mortgage lending business for the inclusion of the false bank statements in the FHA loan file.
Trador is scheduled to be sentenced on July 29, 2024, and faces a maximum penalty of 41 years in prison.
“Loan officers are supposed to be gatekeepers who protect the integrity of the FHA program. Mr. Trador abused his position of trust as a loan officer and used his knowledge of FHA requirements to obtain a mortgage he knew he did not qualify for, and then lied in an attempt to conceal his scheme,” said United States Attorney Will Thompson. “I commend HUD OIG and the FBI for their investigative work in this case, and Assistant United States Attorneys Andrew J. Tessman, Jonathan T. Storage and Erik S. Goes and our trial team for prosecuting the case and securing guilty verdicts on all five counts.”
“The integrity of the FHA loan program is essential to helping hard working citizens realize the American dream of homeownership,” said Special Agent-in-Charge Shawn Rice with the U.S. Department of Housing and Urban Development Office of Inspector General. “This case demonstrates HUD OIG’s enduring commitment to working with U.S. Attorney’s Office for the Southern District of West Virginia and the FBI to investigate and hold accountable those who seek to jeopardize this program and the health and stability of the nation’s housing market. I’d like to sincerely thank the U.S. Attorney’s Office and the entire investigative team, led by U.S. Attorney Thompson, for its tireless efforts to bring this matter to a just conclusion.”
United States District Judge Robert C. Chambers presided over the jury trial.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-117.
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Federal Grand Jury Indicts Bowling Green Man for Wire Fraud, Money Laundering, and Tax EvasionRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green returned an indictment yesterday charging a Bowling Green, Kentucky, man with wire fraud, money laundering, and tax evasion.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Karen Wingerd of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, and U.S. Postal Inspector in Charge Lesley Allison of the Pittsburgh Division made the announcement.
According to the indictment, from October 2009 and continuing until May 2020, Kennith Ray Moore, 55, committed wire fraud by engaging in a scheme to embezzle $1,145,800 from his employer. Specifically, the indictment alleges Moore caused his employer to issue checks to him and to “KBM Solutions,” a company Moore created whose primary purpose was to receive the embezzled funds. The indictment further charges that Moore laundered money by transferring the embezzled funds to his personal checking, personal savings, and credit card accounts. The indictment also charges Moore with tax evasion for tax years 2017 to 2020.
If convicted, Moore faces a maximum sentence of 140 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
The case is being investigated by the IRS Criminal Investigation Bowling Green Post of Duty Office and the USPIS Bowling Green Office.
Assistant U.S. Attorney Madison Sewell, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Father and Daughter Charged in Fraud Scheme that Allegedly Exploited a Vulnerable AdultRead the Press Release
WASHINGTON – Linda Laird, 59, and her father, James Blizzard, 80, both of Cordova, Maryland, are charged in a five-count indictment, unsealed today, with conspiracy to commit Social Security fraud and theft of public money, conspiracy to commit mail fraud and wire fraud, mail fraud, financial exploitation of a vulnerable adult or elderly person, and fraud in the first degree against a senior citizen. The charges were announced today by U.S. Attorney Matthew M. Graves and Daniel W. Lucas, Inspector General for the District of Columbia. The defendants appeared in District Court today and were released pending trial.
The indictment was returned on April 9, 2024, by a grand jury in the U.S. District Court for the District of Columbia. According to court documents, beginning in November 2017, Laird and Blizzard conspired and engaged in a scheme to deceive the Superior Court of the District of Columbia into appointing them as co-guardians and co-conservators of a vulnerable adult. At the time, the vulnerable adult was 81 years of age and suffered from severe cognitive impairments that rendered her incapacitated and required her to reside in a nursing home located in Washington, D.C.
While the vulnerable adult resided in the nursing home, Laird and Blizzard were required, in part, to act as fiduciaries and apply the vulnerable adult’s money towards her support, care, habilitation, and treatment. Instead, the indictment alleges, Laird and Blizzard used their authority as co-guardians and co-conservators to redirect U.S. Social Security Administration (SSA) benefits intended for, and checking account funds belonging to, the vulnerable adult to their personal bank accounts for their own benefit. In total, Laird and Blizzard diverted more than $21,000 in Social Security benefits and obtained over $85,000 from the vulnerable adult’s bank account for their personal use. Laird and Blizzard did not use these funds to pay for the vulnerable adult’s care.
This case is being investigated by the D.C. Office of the Inspector General’s Medicaid Fraud Control Unit, the U.S. Social Security Administration’s Office of the Inspector General, and the Criminal Investigations and Intelligence Unit of the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Special Assistant U.S. Attorney Jason Facci, on detail from the D.C. Office of the Inspector General.
An indictment is merely an allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent unless, and until, proven guilty.
Farrell Resident Sentenced to Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH, Pa. – A resident of Farrell, Pennsylvania, has been sentenced in federal court to 24 months in federal prison, to be followed by three years of supervised release, for conspiring to distribute cocaine, United States Attorney Eric G. Olshan announced today.
United States District Judge Cathy Bissoon imposed the sentence on Kenneth Miller, 62.
Miller previously pleaded guilty in this case to conspiring to distribute a quantity of cocaine between June 2020 and June 2021. Prior to sentencing, the Court was informed that Miller assisted his co-defendants with cocaine trafficking by repeatedly allowing his Farrell apartment to be used as a location where powder cocaine was converted into crack cocaine, with Miller repeatedly receiving some of the cocaine in return.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Federal Bureau of Investigation, Drug Enforcement Administration, Pennsylvania Attorney General’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennsylvania State Police, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, Hermitage Police Department, and Farrell Police Department for the investigation leading to the successful prosecution of Miller.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Extradited Colombian National Sentenced to 14 Years in Prison for Conspiring to Import Cocaine into the United StatesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that LIBIA AMANDA PALACIO MENA was sentenced to 14 years in prison for conspiring to import cocaine into the U.S. PALACIO MENA pled guilty on December 21, 2023, before U.S. District Judge Lewis J. Liman, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Libia Amanda Palacio Mena's sentence marks a significant blow to drug trafficking networks, demonstrating our steadfast commitment to dismantling criminal enterprises. Through the collaborative efforts of law enforcement, this Office and our partners uncovered the complex network Palacio Mena and others orchestrated alongside FARC operatives and other violent drug trafficking organizations. This outcome underscores that those who conspire to flood our streets with narcotics will face stiff consequences for their actions.”
According to court documents and statements made during court proceedings:[1]
PALACIO MENA conspired with her co-defendants and other individuals associated with the Fuerzas Armadas Revolucionarias de Colombia (“FARC”) — a violent organization based in Colombia that was dedicated to the overthrow of the Colombian government and responsible for the production and distribution of the majority of the cocaine that eventually reached the U.S. — to source and distribute tons of cocaine destined for the U.S. PALACIO MENA negotiated with individuals she believed to be narcotics traffickers from a Mexico-based drug trafficking organization (the “Mexican DTO”) seeking to establish a cocaine supply line from Venezuela to the U.S. These individuals, however, were actually confidential sources working at the direction of the U.S. Drug Enforcement Administration (the “DEA”).
In dozens of communications recorded during the investigation, PALACIO MENA presented herself to the Mexican DTO as a broker for large cocaine and weapons transactions. PALACIO MENA touted her connections to, among others, Colombian political leaders, the FARC, and the Cartel of the Suns — a group of high-ranking Venezuelan officials who abused the Venezuelan people and corrupted the legitimate institutions of Venezuela to facilitate the importation of tons of cocaine into the U.S. in partnership with the FARC. After exploring working with various drug traffickers and introducing the confidential sources to several possible partners for sourcing and transporting cocaine, PALACIO MENA ultimately introduced the confidential sources to one of her co-defendants, who agreed to use his political and logistics connections in Colombia to assist the venture.
In December 2021, to prove their bona fides and establish the quality of their supply, PALACIO MENA sold the confidential sources a five-kilogram sample of extremely pure cocaine from a FARC-associated farm outside of Medellín. PALACIO MENA was arrested in Colombia in February 2022, in the midst of negotiating a much larger partnership with the Mexican DTO, which they envisioned entailing the shipment of approximately 500 kilograms of cocaine per week.
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In addition to the prison term, PALACIO MENA, 50, of Medellín, Colombia, was sentenced to four years of supervised release.
Mr. Williams praised the outstanding investigative work of the DEA’s Special Operations Division Bilateral Investigations Unit and Bogota Country Office, as well as the U.S. Department of Justice’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office in Bogota.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Nicholas S. Bradley, Kaylan E. Lasky, and Kevin T. Sullivan are in charge of the prosecution.
[1] Communications, conversations, and statements discussed and quoted herein are described in substance and in part, and many of these conversations occurred in Spanish.
Exeter Man Pleads Guilty to Lying to Obtain More than $100,000 in Social Security Disability BenefitsRead the Press Release
CONCORD – An Exeter man pleaded guilty today in federal court in connection with obtaining disability benefits for which he was not entitled, U.S. Attorney Jane E. Young announces.
James Siano, 59, pleaded guilty to one count of making false statements. U.S. District Court Judge Joseph N. Laplante scheduled sentencing for July 19, 2024.
The defendant first applied for disability benefits from the Social Security Administration (SSA) in December 2019, when he claimed he was disabled, unable to work, and had stopped working. He repeated those claims to the SSA multiple times through April 2021. The defendant also agreed to inform the SSA if he returned to work. However, the defendant worked as a hotel engineer regularly between 2019 and 2023, which made him ineligible for disability benefits. Overall, the defendant obtained over $105,000 in disability payments for which he was not entitled.
The charging statute provides a sentence of no greater than 5 years in prison, 3 years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Social Security Administration’s Office of the Inspector General led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
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El departamento de justicia llega a un acuerdo con una agencia de dotación de personal que resuelve acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado un acuerdo conciliatorio con la empresa de dotación de personal Infinity Employment Solutions Inc. (Infinity), que anteriormente operó bajo el nombre de Express Employment Professionals of Mesquite, Texas. El acuerdo conciliatorio resuelve la determinación del Departamento que Infinity infringió la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) cuando discriminó a un trabajador en función de su estatus de ciudadanía, al rechazar sus documentos válidos y solicitar que proporcionara un documento específico para demostrar su permiso para trabajar.
«Se considera discriminación ilegal cuando los empleadores rechazan documentos válidos de un trabajador que demuestran su permiso para trabajar, debido al estatus de ciudadanía del trabajador», comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles se compromete a proteger a los trabajadores que sufren discriminación durante el proceso de contratación; se les hará rendir cuentas a aquellos empleadores que infrinjan los derechos civiles de nuestra nación».
Después de una investigación, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División de Derechos Civiles determinó que Infinity rechazó la licencia de conducir válida de un residente permanente legal y la tarjeta de Seguro Social sin restricciones, aunque eran suficientes para demostrar su permiso para trabajar. La investigación también descubrió que la empresa exigía que el trabajador proporcionara una Tarjeta de Residente Permanente antes de poder empezar a trabajar. Como resultado, el trabajador perdió 20 días de salario.
En virtud de los términos del acuerdo, Infinity pagará una sanción civil, emitirá pagos retroactivos más intereses al trabajador y se someterá a requisitos de supervisión.
Conforme a las leyes federales, los empleadores no pueden rechazar un documento válido de autorización para trabajar de un trabajador en función del estatus migratorio o de ciudadanía del trabajador. De hecho, muchos no ciudadanos de los EE. UU., incluidos los residentes permanentes legales, son elegibles para varios de los mismos tipos de documentos para demostrar su permiso para trabajar como lo son ciudadanos de los EE. UU. (por ejemplo, una identificación estatal o licencia de conducir y una tarjeta de Seguro Social sin restricciones). Los empleadores deben permitir que los trabajadores presenten cualquier documentación aceptable que los trabajadores mismos elijan y no pueden rechazar documentación válida que parezca razonablemente genuina y relacionada con el trabajador.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminar al verificar el permiso para trabajar de alguien en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea en vivo o visualizar una presentación a la carta; enviar un correo electrónico a IER@usdoj.gov ; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
El Paso Man Indicted for Alleged Multi-Million Dollar Ponzi SchemeRead the Press Release
EL PASO, Texas – A federal grand jury in El Paso returned an indictment charging an El Paso man with 10 counts related to the alleged operation of a multi-million dollar Ponzi scheme.
According to court documents, Timothy France Johnson, 61, through his businesses, BOLO Entertainment LLC, BOLO Sports LLC and Shoot N’2 Sports LLC, allegedly defrauded more than thirty investors by fraudulently representing that their investments would be used to promote pre-season NBA games. The indictment alleges that Johnson held himself out as a third-party promoter of NBA pre-season games and convinced unwary investors to invest money with him to sponsor said pre-season games.
The indictment alleges Johnson collected more than $3 million in investor funds, using approximately $1 million of the deposited investment funds to pay fake investment profits to other clients and using the remainder of the investment funds for personal use. He’s alleged to have never disclosed the misappropriation or the extent of the losses of the investors’ funds.
Johnson is charged with seven counts of wire fraud and three counts of engaging in monetary transactions in property derived from specified unlawful activity. The defendant made his initial court appearance on April 9 before U.S. Magistrate Judge Robert Castaneda of the U.S. District Court for the Western District of Texas. If convicted, he faces up to 20 years in prison for each of the seven wire fraud charges and up to 10 years in prison for each of the three money laundering charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorneys Shane Romero and Micaela Glass are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Eden Prairie Woman Pleads Guilty to Embezzling More Than $1 Million from EmployerRead the Press Release
MINNEAPOLIS – An Eden Prairie woman has pleaded guilty to embezzling more than $1 million from her employer, announced U.S. Attorney Andrew M. Luger.
According to court documents, Monica Svobodny, 51, worked as the Supply Chain and Engineering Manager at a furniture manufacturing company located in Edina, Minnesota. Svobodny used her managerial position to embezzle funds and convert them to her own use and benefit. Svobodny regularly used company credit cards for unauthorized personal expenses such as designer clothing, spa services, and luxury hotel stays. To cover her fraud, she left unapproved credit card expenses as “pending” for accounting purposes. On more than 300 occasions, she used company cards to transfer funds to herself via PayPal to cover personal expenses. Svobodny also edited PayPal transaction receipts and fraudulently listed some of the expenses as payments to a defunct company.
In total, Svobodny knowingly and willfully embezzled more than $1,137,000 over a period of seven years.
Svobodny pleaded guilty yesterday in U.S. District Court to one count of wire fraud before Judge Ann D. Montgomery.
This case is the result of an investigation conducted by the Edina Police Department with assistance from the FBI.
Assistant U.S. Attorney Chelsea A. Walcker is prosecuting the case.
Dulce Man Sentenced for Domestic ViolenceRead the Press Release
ALBUQUERQUE – A Dulce man was sentenced to 54 months in prison after pleading guilty to assault of an intimate partner by strangling.
According to court documents, on or about July 8, 2022, Patrick Maestas, Jr., 34, an enrolled member of the Jicarilla Apache Nation, had consumed a large amount of alcohol when he and his intimate partner, Jane Doe, began to argue. The argument escalated and Maestas assaulted and strangled Jane Doe in front of their child. The strangulation was so forceful that Doe could not breathe and began to black out.
After completing his term of imprisonment, Maestas will be required to serve 3 years of supervised release. There is no parole in the federal system.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Jicarilla Apache Police Department. Assistant United States Attorney Kimberly Bell is prosecuting the case.
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Dominican Man Sentenced to Six Years in Prison for Illegally Reentering the United States and Distributing FentanylRead the Press Release
BOSTON – A Dominican man was sentenced today in federal court in Boston for reentering the United States and distributing fentanyl after previously being deported.
Juan Carlos Santos-Ocasio, a/k/a “Cristhian Aybar-Done,” 44, of the Dominican Republic, was sentenced by U.S. District Court Judge Leo T. Sorokin to six years in prison, followed by five years of supervised release. He will be subject to deportation upon the completion of his sentence. In October 2023, Santos-Ocasio pleaded guilty to one count each of distribution of and possession with intent to distribute 40 grams or more of fentanyl and unlawful reentry of deported alien.
In October 2007, Santos-Ocasio was arrested in the Bronx, N.Y. for heroin distribution conspiracy. In November 2008, Santos-Ocasio pleaded guilty in the Eastern District of New York and was subsequently sentenced to 37 months in prison. He was removed from the United States upon completion of his sentence in the summer of 2010.
Sometime after his removal, Santos-Ocasio reentered the United States unlawfully. In November 2022, he was arrested in Lawrence, Mass. for reentering the United States without authorization. In addition to being in the U.S. without authorization, Santos-Ocasio also distributed 40 grams or more of fentanyl.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Kaitlin Brown of the Worcester Branch Office prosecuted the case.
Dominic Coluccio, Former President of United Probation Officers Association, Pleads Guilty to Defrauding Union and Its MembersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced that DOMINIC COLUCCIO, the former President of the United Probation Officers Association (the “UPOA”), the union that represents all current and former New York City probation officers, pled guilty today to one count of wire fraud in connection with a scheme to steal hundreds of thousands of dollars from the UPOA and the UPOA’s active welfare fund and retirement welfare fund. COLUCCIO pled guilty before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Damian Williams said: “Dominic Coluccio promised to look out for all the hard-working active and retired probation officers who are members of the UPOA. Instead, as admitted today in federal court, he stole hundreds of thousands of dollars from them to fund his lavish lifestyle. Thanks to the hard work of the DOI and the Special Agents and career prosecutors of the Southern District of New York, Coluccio’s betrayal has been exposed, and he now faces jail time and significant financial penalties.”
DOI Commissioner Jocelyn E. Strauber said: “This defendant, former President of the United Probation Officers Association and Administrator of the Association’s Welfare Funds, used his leadership role to steal hundreds of thousands of dollars from the Association and its taxpayer-funded Welfare Funds, intended to benefit current and retired Department of Probation employees and family members. Today he takes responsibility for that conduct and agrees to pay $684,929 in restitution to the Association. DOI thanks the individuals who reported suspicions about misuse of funds to DOI, prompting this investigation, and the Office of the New York City Comptroller and the United States Attorney’s Office for the Southern District of New York for their commitment to hold accountable anyone who misappropriates public funds.”
According to the Information filed in the case and statements made in court:
The UPOA is a non-profit 501(c)(5) labor organization with the intended purpose of advancing the professional, health, and safety interests of its members – officers and supervisors in the New York City Department of Probation (“DOP” or “Probation”). The UPOA’s membership consists of all active and retired Probation Officers and Supervisors within DOP. COLUCCIO was President of the UPOA from in or about 1989 until in or about 2016.
From in or about 2010 until in or about 2019, COLUCCIO also served as Administrator of UPOA’s Active Welfare Fund and UPOA’s Retirement Welfare Fund (together, the “Welfare Funds”). The Welfare Funds, established through an agreement between the City of New York (the “City”) and the UPOA, are benefit plans that provide supplemental health and welfare benefits (principally dental and vision benefits) to eligible retired and current Probation employees, their spouses, and dependents. Both Welfare Funds are almost entirely funded by the City.
From in or about 2012 up to and including in or about 2019, COLUCCIO was engaged in a multi-faceted scheme to embezzle money from the UPOA and the Welfare Funds and to pay his personal expenses through money from the UPOA and Welfare Funds. COLUCCIO did this in several ways.
From in or about 2012 until in or about 2018, COLUCCIO funded his personal expenses charged to his personal American Express credit card, in part, through money obtained from the UPOA and the Welfare Funds. Specifically, COLUCCIO charged his personal credit card for, among other things, high-end meals and retail items, jewelry, luxury vacations and hotels, and a relative’s college tuition. COLUCCIO then caused the UPOA, typically through electronic transfers, to pay down his personal credit card balance.
From in or about 2012 up to and including in or about 2018, COLUCCIO misappropriated funds from the UPOA and Welfare Funds to fund an unauthorized individual retirement account in COLUCIO’s name. In or about 2012, COLUCCIO, without approval or authorization from the UPOA, created an IRA in the name of the UPOA and a sub-account in COLUCCIO’s name. These unauthorized transfers of funds from the UPOA to the IRA account were in addition to the pension payments COLUCCIO received from Probation and the UPOA.
In or about 2016, at or around the time of his retirement as President of the UPOA, COLUCCIO and the Welfare Funds entered into an agreement pursuant to which the Welfare Funds agreed to pay COLUCCIO, as Administrator of the Funds, “an annual salary equal to the Probation Department Commissioner’s salary. . . .” The annual salary was in addition to COLUCCIO’s Probation pension, UPOA pension, and UPOA severance. Notwithstanding this agreement, COLUCCIO, who effectively controlled the Welfare Funds’ bank accounts and payroll, caused the Welfare Funds to pay COLUCCIO a salary higher than the Probation Commissioner’s salary.
From in or about 2000, up to and including 2020, COLUCCIO submitted and sought reimbursement for medical, dental, and vision expenses that he and his dependents incurred. During that time period, COLUCCIO routinely authorized and concealed overpayments to him, his spouse, and his family members, i.e., payments that exceeded policy limits.
Through the scheme, COLUCCIO stole approximately $750,000 from the UPOA and the Funds.
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COLUCCIO, 75, of Bellmore, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. As part of his plea agreement, COLUCCIO agreed to forfeit $750,000 to the United States and to make restitution in the amount of $684,929.00 to the UPOA and the Funds.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of DOI and the Special Agents of the U.S. Attorney’s Office. Mr. Williams also thanked the New York City Comptroller’s Office Unit of Research and Investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Nicholas Chiuchiolo is in charge of the prosecution.
Detroit Business Owner Charged with Possessing over 40 kilograms of Fentanyl in Basement Stash HouseRead the Press Release
DETROIT – A Detroit gas station owner has been charged with several federal crimes stemming from his involvement with a Detroit-based stash house that held over 40 kilograms of fentanyl, a pill press, and a variety of other materials used to manufacture fentanyl pills, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Orville Greene, Special Agent in Charge of the Drug Enforcement Administration and Chief Thomas Goralski, Livonia Police Department.
On March 28, 2024, law enforcement executed search warrants at three locations connected to Barry Willis, 55, a resident of Clinton Township and owner of a Detroit gas station. Officers searched Willis’s primary residence in Clinton Township, his gas station in Detroit, as well as his suspected stash house in Detroit. In the basement of the stash house, officers recovered over 40 kilograms of fentanyl in both pill and powder form, as well as a hoard of materials for manufacturing fentanyl pills such as a pill press, narcotics scales, and drug recipes. Officers further located two handguns at the stash house, one at Willis’s residence, and another at his gas station, as well as over $100,000 in cash from Willis’s Clinton Township residence.
“This case represents the largest law enforcement seizure of fentanyl in the state of Michigan to date. We are incredibly proud of our law enforcement partners who conducted this investigation and recovered these deadly substances before they could harm members of our community,” U.S. Attorney Ison said.
“This amount of fentanyl has the potential to provide nearly two deadly doses to every man, woman and child living in the state of Michigan. We will continue to work with our partners to pursue anyone pushing poisons into our communities and bring them to justice,” said Special Agent in Charge Greene.
"This major seizure of fentanyl has saved lives. The great partnerships we have with law enforcement at the federal, state and local levels in southeast Michigan, enable us to make these types of investigations successful,” said Chief Goralski.
Willis has now been indicted for possession of over 400 grams of fentanyl with the intent to distribute it, possession of firearms in furtherance of a drug trafficking crime, and possession of firearms by a convicted felon. He faces a mandatory minimum sentence of 20 years’ imprisonment if convicted of the charges in the indictment.
An indictment is only a formal charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case was investigated by the Livonia Police Department, including officers assigned to the Livonia Police Intelligence Bureau, and the Drug Enforcement Administration. The Michigan State Police and the Clinton Township Police Department also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Erin Ramamurthy.DHS employee indicted for money launderingRead the Press Release
HOUSTON – A deportation officer has been taken into custody on allegations he transported nearly $700,000 in what he believed to be drug proceeds, announced U.S. Attorney Alamdar S. Hamdani.
Christopher Washington Toral, 48, Spring, is expected to make his initial appearance before U.S. Magistrate Judge Andrew Edison at 2 p.m.
A federal grand jury returned the indictment April 9, which was unsealed upon Toral’s arrest.
Toral is an employee of Department of Homeland Security (DHS), working as a deportation officer for Immigration and Customs Enforcement.
On three occasions in 2023, Toral allegedly transported a total of approximately $700,000 in exchange for cash payments. In each instance, he believed the monies were proceeds from drug transactions, according to the indictment.
Toral transported $200,000 between Feb. 9 and 28, 2023, from Dallas to Houston, according to the charges. In early March 2023, he allegedly travelled from Newark, New Jersey, to Houston with $300,000 in U.S. currency.
If convicted, Toral faces up to 20 years in federal prison and a possible $1 million maximum fine.
FBI and DHS – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Carolyn Ferko is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Contractor Charged with Filing False Tax ReturnsRead the Press Release
BOSTON – The owner of a residential carpentry company was charged yesterday in connection with filing false tax returns for the company.
Marcelo De Oliveira, 39, formerly of Everett, was charged with four counts of filing false tax returns.
According to the charging documents, De Oliveira was the owner of DeOliveira Carpentry, Inc. It is alleged that from 2017 through 2020, De Oliveira cashed customer checks instead of depositing them into his business bank account and then did not report more than $3.1 million in business revenue to the Internal Revenue Service on his corporate tax returns.
The charge of filing false tax returns provides for a sentence of up to three years in prison, up to one year of supervised release and a fine of $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 Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Colorado Man Indicted for Firearm OffenseRead the Press Release
CONCORD – A Louisville, Colorado man was indicted in connection with a firearm offense, U.S. Attorney Jane E. Young announces.
Shelby Theriault, 30, was indicted on one count of possession of an unregistered firearm. Theriault was arrested on January 20, 2024, and he is currently in state custody. Theriault will appear in federal court in Concord on April 17, 2024 at 2:00 p.m.
According to the charging documents and statements made in court, the defendant knowingly received and possessed a weapon made from a shotgun, with an overall length of less than 26 inches and a barrel length of under 18 inches and did not register this weapon with the National Firearms Registration and Transfer Weapon.
The charging statute provides a sentence of no greater than 10 years in prison, 3 years of supervised release, and a fine of $10,000. 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.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Conway Police Department led the investigation. Assistant U.S. Attorney Tiffany Scanlon is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Clifton Park Man Sentenced to 10 Years for Attempted Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Michael Kirkland, age 30, of Clifton Park, New York, was sentenced today to 10 years in prison for attempting to entice and coerce a 12-year-old child into sexual activity.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his previously entered guilty plea, Kirkland admitted that on August 11, 2022, he exchanged sexually explicit text messages with someone he believed was an adult offering the sexual services of a 12-year old girl, in an attempt to entice the child into engaging in sexual acts with him. Kirkland also admitted that on August 11, 2022, he traveled to a hotel in Saratoga County, New York, with the intent to engage in sexual acts with the 12-year-old girl. Kirkland was arrested by law enforcement shortly after arriving at the location.
United States District Judge Anne M. Nardacci also imposed a 10-year term of post-imprisonment supervised release. Kirkland will be required to register as a sex offender upon his release from prison.
The FBI’s Mid-State Child Exploitation Task Force and Capital Region Child Exploitation and Human Trafficking Task Force investigated the case. Each task force is comprised of FBI Special Agents, as well as state and local police investigators, including from the Saratoga County Sheriff’s Office. Assistant U.S. Attorney Allen J. Vickey prosecuted this case as part of Project Safe Childhood.
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). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Cheektowaga man pleads guilty to using stolen credit card numbers to purchase tens of thousands of dollars worth of gasRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Cross Malik Williams, 25, of Cheektowaga, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to commit bank fraud, which carries a maximum penalty of 30 years in prison.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that between August 2022, and July 2023, Williams, along with co-defendant Kingsley Brown, purchased approximately 570 stolen bank cards from various online marketplaces. Williams and Brown then used a card-making device to load the stolen banking card information onto blank plastic bank cards with magnetic strips, which allowed purchases to be made using the victims’ funds from the victims’ bank accounts. Williams and Brown used, or allowed others to use, the stolen bank card information to purchase gas for other individuals. The gas customers would then pay Williams and/or Brown an amount of money less than the cost of the gas. As part of his plea agreement, Williams agreed that he was responsible for between $250,000 and $550,000 of total loss.
Charges remain pending against Kingsley Brown.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for July 25, 2024, before Judge Sinatra.
Carjacking and Robbery Charges Filed Against Three Men in D.C.Read the Press Release
WASHINGTON – A 14-count indictment, filed in U.S. District Court, charges three District men in a spree of armed carjackings and commercial gunpoint robberies within Washington D.C. and suburban Maryland in March of 2024. The charges were announced by U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office Criminal and Cyber Division.
Kanard Bishop, 26, Edward LeRoy Brown, 24, and Khalil Boyd, 18, are charged with conspiracy to interfere with interstate commerce by robbery (aka “Hobbs Act” robbery); carjacking; using, carrying, possessing, and brandishing a firearm in furtherance of a crime of violence; and aiding and abetting.
According to court documents, the defendants targeted fast-food restaurants, convenience stores, and package delivery vehicles, and would work together to arrange for a car to be used to commit the robberies, either by carjacking or arranging the use of an associate’s vehicle. The indictment, filed April 10, 2024, alleges that on March 17, 2024, law enforcement responded to a report of an armed carjacking of a Mercedes Benz on the 4300 block of Southern Ave., SE, in which the perpetrators took the victims’ car, phones, wallet, and cash.
It is further alleged that, between 3 a.m. and 5:30 a.m. on March 20, 2024, law enforcement received numerous reports of attempted armed robberies and carjackings including: around 3 a.m., at a McDonald’s restaurant in Capitol Heights, Maryland, where two masked, armed suspects climbed through a drive-thru window and attempted to open the register by pressing random buttons but were unsuccessful; less than an hour later, a carjacking on the unit block of 35th Street, NE, in which the owner of the car reported that three armed gunmen had just taken his 2018 Dodge Durango; at 4:11 a.m., an armed robbery at a Denny’s Restaurant on the 4400 block of Benning Road in which the employee couldn’t open the cash register so the gunmen ripped the register off the counter and fled; at 4:59 a.m., an attempted armed robbery at McDonald’s on the 7700 block of Landover Road, Landover, Maryland, in which one of the gunmen attempted to climb through the drive thru window but was pushed back out by the cashier; at 5:03 a.m., at a 7-Eleven on the 7500 block of Landover Road, where two armed gunmen entered and demanded cash; and at 5:26 a.m., a robbery at a 24hr market on the 5200 block of Marlboro Pike, District Heights in which the gunmen stole money and retail products.
On March 27, 2024, at 8:47, Prince George’s County police were called to Brooks Drive in District Heights, Maryland, for a reported carjacking of a 2022 Dodge Challenger. At 12:09 p.m., two men robbed a FedEx delivery truck at Burns and G Streets, SE. The armed men took several packages from the interior of the truck, robbed the FedEx employees of their personal belongings, and fled. The robbery was captured on surveillance cameras mounted inside and on the exterior of the truck.
On March 28, 2024, detectives working with the Prince George’s County Police Department’s Carjacking Interdiction Unit were conducting surveillance on a carjacked 2022 Dodge Challenger in District Heights. The Challenger stopped directly in front of a Game Stop store on the 5700 block of Silver Hill Road. Two men, later identified as Bishop and Brown, aka “Shiesty,” exited the vehicle. A man later identified as Boyd, aka “Lil Bill,” was behind the wheel. As detectives prepared to conduct a tactical block of the Challenger, they realized that two men were committing a robbery of the Game Stop. Detectives moved in shouting loud verbal commands. Bishop and Brown fled through the emergency exit at the rear with their firearms displayed. Detectives caught Bishop after a short foot pursuit. They recovered a loaded .40 caliber Glock 22 at the scene. Brown ran with a gun in his hand. A detective fired at Brown, striking him in the lower torso. Detectives recovered a .40 caliber “ghost gun” loaded with nine rounds. Boyd led police on a chase which ended after he crashed and tried to flee on foot.
The case is being investigated by the FBI Washington’s Violent Crime Task Force and the MPD Carjacking Task Force with significant assistance from the Prince George’s County Police Department.
It is being prosecuted by Assistant U.S. Attorneys Melissa Jackson and Omeed Assefi, and Special Assistant U.S. Attorney Katherine Toth.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
California Man Sentenced to 13 Years in Federal Prison for Trafficking Fentanyl and Cocaine to ConnecticutRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that VICTOR RODRIGUEZ-GOMEZ, also known as “Calami,” 49, of Desert Hot Springs, California, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 156 months of imprisonment, followed by five years of supervised release, for trafficking large quantities of fentanyl and cocaine to Connecticut.
According to court documents and statements made in court, in 2022, the U.S. Postal Inspection Service’s (USPIS) Narcotics and Bulk Cash Trafficking Task Force identified suspicious packages that were being mailed to a New Britain address connected to Rodriguez-Gomez and his associate, Ramon Ramos-Acevedo, who resided in New Britain. A court-authorized search of one package, which had been mailed from California, revealed approximately one kilogram of fentanyl and one kilogram of heroin. In July 2022, USPIS investigators in San Bernardino, California, contacted Connecticut investigators to report that a court-authorized search of a package that was addressed to a residence on Willow Street in New Britain revealed eight cell phones. On August 1, 2022, investigators conducted a controlled delivery of the package in New Britain and observed Rodriguez-Gomez and Ramos-Acevedo take possession of it.
Investigators identified several additional suspicious packages associated with Ramos-Acevedo and, on August 11, 2022, observed Ramos-Acevedo in California mailing packages to an address in New Britain.
Investigators also developed evidence that Rodriguez-Gomez had an associate who used a van to transport narcotics from California, or another location in the southwestern United States, to addresses in Connecticut associated with Ramos-Acevedo. On August 25, 2022, investigators observed Ramos-Acevedo unloading items from the van in New Britain.
On September 7, 2022, the Connecticut State Police, which was assisting with surveillance, stopped a vehicle that Ramos-Acevedo was driving in Newington for a motor vehicle violation. Rodriguez-Gomez was a passenger in the vehicle. After a K-9 alerted to several items within the vehicle, a search revealed $179,578 in cash and nine cellphones. A subsequent search of a house in Farmington where Ramos-Acevedo claimed he was living resulted in the seizure of an additional $30,426 in cash.
On November 30, 2022, the Iowa State Patrol stopped Rodriguez-Gomez’s associate, Martin Cooper, who was driving the van that had been identified in August 2022. A search of the van revealed approximately 22 kilograms of cocaine and two kilograms of fentanyl, which was destined for Ramos-Acevedo in New Britain.
Rodriguez-Gomez has been detained since his arrest on December 4, 2022. On December 4, 2023, he pleaded guilty to conspiracy to possess with intent to distribute 400 grams or more of fentanyl and five kilograms or more of cocaine.
Ramos-Acevedo pleaded guilty to the same charge on January 22, 2024, and is detained while awaiting sentencing.
Cooper pleaded guilty to a related charge in the Southern District of Iowa and also awaits sentencing.
This investigation has been conducted by the DEA’s Hartford Task Force and the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force. The DEA Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments. The USPIS Task Force includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden, and Town of Groton Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone and Shan Patel.
Businesswoman Found Guilty of Tax and Mail FraudRead the Press Release
BOSTON – A Randolph woman was convicted yesterday by a federal jury in Boston in connection with her involvement in a payroll tax avoidance scheme.
Lilian Giang, 56, was convicted following a three-day jury trial of four counts of failing to collect and pay over taxes and one count of mail fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 2024. Giang was indicted in March 2023.
“Every honest taxpayer is a victim of this type of crime. This defendant made hundreds of thousands of dollars after she decided that the rules we all live by don’t apply to her. Now she’s a convicted felon. This should send a clear message that if you engage in tax fraud, the consequences are very serious,” said Acting United States Attorney Joshua S. Levy.
“The conviction of Lilian Giang demonstrates the IRS’s commitment to protecting all American taxpayers, especially those who are most vulnerable,” said Special Agent in Charge, Harry T. Chavis Jr., IRS Criminal Investigation Boston Field Office. “Giang operated her business under the guise of helping the vulnerable Vietnamese immigrant community, when in fact, she exploited them for her own self-enrichment by paying them below minimum wage, charging substantially more than she paid them, and evading paying her own fair share of taxes.”
Between 2015 and 2019, Giang owned and operated Able Temp Agency, a temporary employment agency in Quincy that served client companies in Massachusetts. The client companies paid Able Temp Agency for the temporary employees’ work on an hourly basis. Giang deposited those payments into bank accounts in the name of Able Temp Agency that she controlled, and then paid the temporary employees through a combination of checks and cash. By using cash payments, Giang hid over $3.2 million in payroll and avoided paying more than $800,000 in required payroll taxes. Giang also used false payroll numbers to obtain worker’s compensation insurance at lower premium rates.
The charge of mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, restitution and forfeiture. The charge of failure to collect or pay over taxes provides for a sentence of up to five years in prison, three years of supervised release, a fine of $10,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and IRS SAC Chavis made the announcement. The Insurance Fraud Bureau of Massachusetts provided assistance in the investigation. Assistant U.S. Attorneys Christopher J. Markham and Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Burnsville Woman Pleads Guilty to Wire Fraud in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – A Burnsville woman has pleaded guilty to her role in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced United States Attorney Andrew M. Luger.
According to court documents, Hoda Ali Abdi, 53, was the owner of Alif Halal LLC (“Alif Halal”), a grocery store located in Burnsville, which she enrolled as a food vendor in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. Between January 2021 through 2023, Abdi falsely claimed to have provided approximately $3 million worth of food for children through other co-conspirator’s sites. Abdi provided these co-conspirators with fake Alif Halal invoices that purported to show that Alif Halal had provided substantial amounts of food when, in reality, Abdi provided little or no food. As part of her guilty plea, Abdi admitted that some of her co-conspirators tried to cover up the fraud by directing her to lie to investigators by asserting, falsely, that Alif Halal had provided food to the co-conspirators’ respective businesses. Abdi also claimed, falsely, to have served more than 242,000 meals to children at her Burnsville site. Ultimately, Abdi received $1,275,710 in proceeds, which includes payments from the co-conspirators who received fake Alif Halal invoices.
Abdi, who is the 18th defendant to plead guilty to charges relating to the Feeding Our Future fraud scheme, appeared yesterday in U.S. District Court before Judge Nancy E. Brasel and pleaded guilty to one count of wire fraud. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, Chelsea A. Walcker, and Harry M. Jacobs are prosecuting the case.
Buffalo man going to prison on multiple gun and drug chargesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Robert L. Williams, Jr., 42, of Buffalo, NY, who was convicted of conspiracy to transfer firearms purchased outside of state of residency, unlawful dealing in firearms, conspiracy to possess with intent to distribute, and to distribute, heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm, was sentenced to serve 84 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Joshua A. Violanti, who handled the case, stated that between November 2017, and June 2018, Williams, without being a licensed firearm importer, manufacturer, dealer, or collector, conspired with others to transfer firearms into the State of New from the State of Ohio. Williams, who resided in New York, asked others to assist him in conducting straw purchases of more than 20 firearms in Ohio, which were then transported into New York. On May 3, 2018, Buffalo Police officers responded to shots fired in a vacant lot next to Williams’ residence. Officers recovered two ammunition cases with magazines and a bag containing heroin in front of his residence. Inside the residence, in plain view, officers recovered a pistol, ammunition, and several firearms parts and accessories. Williams admits that he conspired with others to distribute heroin, including to some of the straw purchasers in exchange for the straw purchasers obtaining firearms for Williams.
On May 18, 2018, a search warrant was executed at Williams’ residence, during which law enforcement seized two additional firearms and ammunition. Williams was convicted of felony charges in 2004, 2006 and 2012, and is legally prohibited from possessing firearms.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Assistant Special Agent-in-Charge Bryan DiGirolamo, and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
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Brentwood Man Found Guilty of Insider TradingRead the Press Release
LOS ANGELES – A Brentwood man has been found guilty by a jury of participating in an insider trading scheme that netted more than $650,000 in illicit profits, the Justice Department announced today.
Shahriyar Bolandian, 35, was found guilty Tuesday of six counts of insider trading.
According to court documents and evidence presented at a five-day trial, in 2012 and 2013, Bolandian received material non-public information about two upcoming corporate acquisitions by publicly traded companies. Bolandian then used the inside information to trade in advance of the public announcements of Integrated Device Technology Inc.’s April 2012 planned acquisition of PLX Technology Inc., and Salesforce.com Inc.’s June 2013 acquisition of ExactTarget Inc.
As a result of his illegal trades, Bolandian’s personal share of the scheme’s illicit proceeds was more than $340,000, which he used, among other things, to cover previous trading losses and repay loans to family and friends.
United States District Judge Terry J. Hatter Jr. scheduled a July 15 sentencing hearing, at which time Bolandian will face a statutory maximum sentence of 20 years in federal prison for each count.
The FBI investigated this matter.
Assistant United States Attorney Ali Moghaddas of the Corporate and Securities Fraud Strike Force and Trial Attorney Della Sentilles of the Justice Department’s Criminal Division’s Fraud Section are prosecuting this case.
Beaver Falls Man Sentenced to 10 Years in Prison for Drug and Firearms ConvictionsRead the Press Release
PITTSBURGH, Pa. – A resident of Beaver Falls, Pennsylvania, has been sentenced in federal court to 10 years of imprisonment on his convictions for possession with intent to distribute controlled substances and possession of a firearm in furtherance of that drug trafficking crime, United States Attorney Eric G. Olshan announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Robert Carpenter Jr., 39.
According to information presented to the Court, on July 25, 2022, the Beaver Falls Police Department executed a search warrant upon an apartment used by Carpenter. From the master bedroom, officers recovered 41.65 grams of cocaine base, in the form commonly known as crack, 6.74 net grams of cocaine, and 30 pills in a nightstand that also contained Carpenter’s identification and two digital scales. A laboratory analysis confirmed that some pills contained fentanyl while others contained fluorofentanyl. In addition to the packaged narcotics, law enforcement seized two firearms, a 9mm caliber handgun and a 5.56 caliber semiautomatic rifle. Both firearms were loaded and had been reported stolen, with the semiautomatic rifle loaded with a 30-round capacity magazine and having an altered serial number.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Beaver Falls Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Carpenter.
Albuquerque Man Sentenced for Federal Firearms OffensesRead the Press Release
ALBUQUERQUE – A federal judge sentenced an Albuquerque man to 36 months in prison for the illegal sale of firearms, including machineguns, and the illegal possession and transfer of machineguns. Some of these firearms ended up in the wrong hands.
Marquez Martinez, 24, came to the attention of the Albuquerque Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives on January 10, 2023, when a fifteen-year-old West Mesa High School student was found on campus with two firearms. One of the firearms was a Glock modified with machine gun conversion device also known as a “switch,” a device that converts ordinary handguns into fully automatic weapons and are by themselves considered machineguns under federal law. The possession of machineguns, but for narrow exceptions, is illegal under federal law. The Glock was traced back to Martinez. Martinez was further identified via his Instagram account where he advertised handguns and machineguns for sale.
Later, on March 2, 2023, a Texas State Ranger conducted a traffic stop on a vehicle occupied by an individual suspected of a homicide. Officers searched the vehicle and recovered a Glock which was modified with a switch. The Glock was traced back to Martinez.
Then, on March 8, 2023, the APD Gun Violence Suppression Unit stopped a vehicle in Albuquerque. Officers searched the vehicle and recovered a Glock. The Glock was traced back to Martinez.
In addition to the recovered firearms, between February and March of 2023, law enforcement purchased the following items from Martinez through his Instagram account:
- 4 machineguns
- 3 firearms
- 6 strips of LSD
- 500 fentanyl pills
On May 11, 2023, a search warrant was executed on Martinez’s residence. Inside, agents recovered a silencer, ammunition, and 13 additional firearms.
During a subsequent interview, Martinez admitted to buying and selling “hundreds” of firearms and at least fifty in the six months prior to his arrest.
Upon his release, Martinez will be subject to 36 months of supervised release. There is no parole in the federal system.
U.S. Attorney Alexander M.M. Uballez and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made the announcement today.
This case was prosecuted, in part, under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted, and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Patrick E. Cordova prosecuted the case.
Front of a machine gun conversion device
Back of a machine gun conversion device
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Affluent businessman turned repeat offender imprisoned for paying minor to produce child pornographyRead the Press Release
McALLEN, Texas – A 62-year-old man residing in McAllen has been sentenced for coercion and enticement of a minor, announced U.S. Attorney Alamdar S. Hamdani.
Luis Fabian Vela pleaded guilty Oct. 27, 2023.
U.S. District Judge Micaela Alvarez has now ordered Vela to serve 195 months in federal prison. The court enhanced the sentence after determining he was a repeat and dangerous offender against minors and because the offense involved a minor under the age of 16. In handing down the prison term, Judge Alvarez noted how Vela had community support throughout his life but turned to illegal sexual conduct when he was stressed. Calling his behavior sexually deviant, Judge Alvarez expressed concerns for the safety of the community due to these crimes occurring in the dark. Vela will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
“Vela is a prominent business owner who used his significant means to coerce minors into producing pornographic material of children for his own gratification, even going as far as instructing them how to take photographs of specific areas,” said Hamdani. “He boasted about his wealth to get what he wanted, but there won’t be much of that now…at least for the next 16 years.”
From Sept. 29, 2022, through Oct. 5, 2022, Vela operated a financial account listed under Birdiebistro, a business he owns, and began communicating with a 15-year-old child. Even after the minor told Vela their age, he continued to engage in those conversations which were at times sexual in nature and extremely vulgar. He then instructed the minor on how to produce child pornography and utilized the Birdiebistro account to pay for the files.
At the hearing, Vela expressed his apologies to his own family for all that has happened to him.
Vela will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Devin V. Walker prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
10 April 2024
Youth Sports Coach Admits Seeking Sex with TeenRead the Press Release
ST. LOUIS – A former youth sports coach on Wednesday admitted arranging to have sex with someone he thought was a 13-year-old girl. The “girl” was really an undercover St. Louis County police detective.
Trevor White, 41, of Fenton, Missouri, pleaded guilty in U.S. District Court in St. Louis to attempted coercion and enticement of a minor. He admitted as part of his plea agreement that at 10:33 p.m. on Sept. 24, 2023, he initiated a text message conversation with a 13-year-old girl. White was friends with the girl’s parents. White asked for her photo, and in a series of messages about her clothing and their past interactions, sought a “positive response” from the victim. He ended by sending her a photo of himself shirtless.
The victim reported the suspicious conversation to her parents, who then contacted St. Louis County police detectives. The teen’s parents allowed a detective to use her phone, assume her identity and continue the conversation. Over several days, White became increasingly sexually explicit and sought to arrange a meeting so they could engage in sex. He also sent two explicit photos.
On September 29, St. Louis County detectives arrived at White’s home to interview him. White admitted participating in the text conversations, admitted asking the teen for a photo of herself engaging in sexually explicit conduct and admitted arranging to pick her up and take her to a park to have sex with her.
White is scheduled to be sentenced July 16. The charge carries a mandatory minimum sentence of 10 years in prison and a maximum of life in prison.
The case was investigated by the St. Louis County Police Department. Assistant U.S. Attorney Michael Hayes 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.
Youngwood Resident Pleads Guilty to Fraud and Aggravated Identity Theft ChargesRead the Press Release
PITTSBURGH, Pa. - A resident of Youngwood, Pennsylvania, pleaded guilty in federal court to charges of access device fraud and aggravated identity theft, United States Attorney Eric G. Olshan announced today.
Jackie Lynn Neubauer, 41, pleaded guilty to two counts before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the Court was advised that Neubauer, as the manager of a car rental location, accepted credit card numbers of individuals obtained fraudulently from various conspirators, and knowingly processed car rental transactions as if they were legitimate. In total, Neubauer rented more than 140 vehicles in this manner, causing losses of more than $500,000.
Judge Horan scheduled sentencing for July 31, 2024. The law provides for a maximum total sentence of not less than two years and up to 12 years in prison, a fine of $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Neubauer.
Wisconsin Man Sentenced to Prison for 2022 Firebombing of Madison BuildingRead the Press Release
Hridindu Sankar Roychowdhury, 29, of Madison, Wisconsin, was sentenced today to 90 months in federal prison for attempting to cause damage by means of fire or an explosive to a building in Madison. Roychowdhury attacked the building with a Molotov cocktail in the wake of the leak of the draft opinion in Dobbs v. Jackson Women’s Health Organization, overruling Roe v. Wade. He targeted the building because it was occupied by an organization that opposed abortion. Roychowdhury pleaded guilty on Dec. 1, 2023.
“The sentence imposed today is the result of innovative work by the FBI and Justice Department prosecutors who tirelessly investigated this case,” said Deputy Attorney General Lisa Monaco. “It is also a reminder that the Justice Department will hold accountable those who turn to violence as a means of intimidation.”
“The FBI will not stand for the use of violence or criminal activity to express personal views on any matter,” said FBI Deputy Director Paul Abbate. “Today’s sentencing is the result of the FBI’s commitment to use all of our resources to aggressively pursue anyone who uses violent tactics in an attempt to impose their views on others.”
“Engaging in an act of terror – in this case, firebombing a business because of their beliefs – is criminal and unamerican. As today’s sentencing demonstrates, it won’t be tolerated,” said Director Stephen Dettelbach of the Bureau of Alcohol, Tobacco, Tobacco and Firearms (ATF). “I commend the collaborative efforts by all the local, state, and federal law enforcement agencies involved in this investigation, and I commend the expertise of ATF’s forensic laboratory, and the assistance from the ATF Boston Field Division, for their dedication. In this case, the DNA testing led to the swift arrest of this defendant and made the community safer.”
“Roychowdhury’s arson was an act of domestic terrorism,” said U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. “Domestic terrorism is cowardly and profoundly undemocratic. It is not speech; it is not an exchange of ideas; instead, it is an attempt to harm or frighten one’s fellow citizens, thus driving Americans apart and weakening the fabric of our democratic society. The U.S. Department of Justice, and this U.S. Attorney’s Office, with our local and federal law enforcement partners will never flinch from holding domestic terrorists accountable.”
On May 8, 2022, at approximately 6:06 a.m., law enforcement responded to an active fire at an office building located in Madison. Once inside the building, police observed a mason jar under a broken window; the jar was broken and the lid and screw top were burned black. The police also saw a purple disposable lighter near the mason jar. On the opposite wall from the window, the police saw another mason jar with the lid on and a blue cloth tucked into the top; the cloth was singed. The jar was about half full of a clear fluid that smelled like an accelerant. Outside of the building, someone spray painted on one wall, “If abortions aren’t safe then you aren’t either” and, on another wall, a large “A” with a circle around it and the number “1312.” During the investigation, law enforcement collected DNA from the scene of the attack.
In January 2023, after reviewing surveillance video of an individual spray painting “We will get revenge” on the grounds of the Wisconsin State Capitol, law enforcement observed visual similarities to the graffiti that had been spray painted at the scene of the firebombing the year before. In March 2023, law enforcement identified Roychowdhury as a possible suspect. Local police officers observed Roychowdhury dispose of food in a public trash can; the officers recovered the leftover food and related items and law enforcement collected DNA from the food. The contents of the bag included a quarter portion of a partially eaten burrito. Law enforcement swabbed the burrito for DNA and sent the swab to an ATF lab. On March 17, 2023, law enforcement advised that a forensic biologist examined the DNA evidence recovered from the attack scene and compared it to the DNA collected from the food contents. The forensic biologist found the two samples matched and likely were the same individual.
In March 2023, Roychowdhury travelled from Madison to Portland, Maine, and he purchased a one-way ticket from Boston to Guatemala City, departing March 28, 2023. Law enforcement arrested Roychowdhury at Boston Logan International Airport that day.
The Madison Police Department, Wisconsin State Capitol Police Department, ATF, FBI Joint Terrorism Task Force, Homeland Security Investigations, and Dane County Sheriff’s Office investigated the case, with the assistance of the FBI Boston Field Office, Boston Police Department, Massachusetts State Police, U.S. Coast Guard, Federal Air Marshal Service, and Transportation Security Administration.
Assistant U.S. Attorney Elizabeth Altman for the Western District of Wisconsin and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case. Assistant U.S. Attorney Amanda Beck for the District of Massachusetts handled the defendant’s appearance in Boston following his arrest.
West Mifflin Convicted Felon Sentenced to Three Years in Prison for Possession of Firearms While on Federal Supervised ReleaseRead the Press Release
PITTSBURGH, Pa. – A resident of West Mifflin, Pennsylvania, has been sentenced in federal court to 36 months of imprisonment on his convictions for possession of a firearm and ammunition by a convicted felon and for committing that crime while serving a period of federal supervised release, United States Attorney Eric G. Olshan announced today.
United States District Judge William S. Stickman IV imposed the sentence on Roderick Ferguson, 22.
According to information presented to the Court, on April 3, 2022, the Baldwin Police Department responded to a vehicle crash where a driver was ejected and killed after striking a parked car. Bystanders pulled a passenger, Roderick Ferguson, from the damaged vehicle. Upon arrival, officers recovered a semiautomatic rifle loaded with 29 rounds of ammunition which had been in Ferguson’s possession prior to the crash.
Following Ferguson’s discharge from the hospital for his injuries from that crash, he was a rear passenger in a vehicle during an April 28, 2022, traffic stop conducted by the Whitehall Borough Police Department in relation to an expired registration. After providing a fictitious name and being instructed to exit the vehicle, Ferguson began moving around the seat and adjusting his body. Ferguson consented to a search of his person, with law enforcement then recovering a loaded .357 Magnum revolver from Ferguson’s underwear.
Prior to the time Ferguson possessed the loaded semiautomatic rifle and loaded revolver, he was convicted of conspiracy to distribute and possess with intent to distribute controlled substances in the Western District of Pennsylvania, for which Ferguson was sentenced by Judge Stickman to 15 months of imprisonment, followed by two years of federal supervised release. Ferguson was still serving his term of supervised release at the time he possessed the loaded firearms. Under federal law, convicted felons are prohibited from possessing firearms and ammunition, and those who commit crimes while serving federal supervised release are eligible for additional prison terms.
In imposing sentence, Judge Stickman emphasized that Ferguson’s possession of loaded firearms within days of his release from his last federal sentence reflected a troubling willingness to disrespect the law.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Baldwin Police Department, Whitehall Borough Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Ferguson.
Vermont Man Sentenced to Four Years in Prison for Firearm and Drug OffensesRead the Press Release
BOSTON – A Vermont man was sentenced today in federal court in Springfield, Mass. for illegally possessing a firearm and ammunition and possessing methamphetamine intended for distribution.
Jeffrey Baird, 43, was sentenced by U.S. District Court Judge Mark G. Mastroianni to four years in prison, three years of supervised release, and a $200 mandatory special assessment fee. In January 2024, Baird pleaded guilty to one count of being a felon in possession of a firearm and ammunition and one count of possessing with the intent to distribute methamphetamine.
In December 2021, law enforcement stopped Baird’s vehicle travelling north on Route 91 in Northampton. Baird had a fake paper license plate taped to his back window and had been driving without a valid driver’s license. Baird was taken into custody. During a subsequent search of Baird’s vehicle, a revolver and five rounds of ammunition were found along with 207 grams of methamphetamine in a Ziplock bag – which carried a street value of between $6,000 and $10,000. Additionally, three more rounds of ammunition were found on Baird’s person inside his Hell’s Angels vest.
Baird is prohibited from possessing firearms and ammunition due to prior convictions for firearms offenses.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla, Chief of the Springfield Branch Office, prosecuted the case.
United States Files Complaint Against Regeneron Pharmaceuticals Alleging Fraudulent Drug Price ReportingRead the Press Release
BOSTON – The United States has filed a complaint under the False Claims Act (FCA) against Regeneron Pharmaceuticals, Inc. (Regeneron), a New York-based pharmaceutical company. The complaint alleges that Regeneron fraudulently manipulated Medicare reimbursement for its drug, Eylea, by knowingly submitting false average sales price (ASP) reports to Medicare. Medicare uses ASP to set its reimbursement rates for Eylea and other drugs. The complaint alleges Regeneron inflated Eylea’s ASP by paying credit card processing fees for the benefit of physician-customers purchasing Eylea, without properly reporting these payments as price concessions to ASP. Regeneron’s failure to properly report credit card fees as price concessions caused the submission of false claims for Eylea and hundreds of millions of dollars in inflated reimbursements by Medicare.
Regeneron manufactures and sells Eylea, an anti-vascular endothelial growth factor (anti-VEGF) inhibitor approved by the Food and Drug Administration to treat, among other conditions, neovascular (Wet) Age-Related Macular Degeneration (Wet AMD), a prevalent, usually age-related condition that impairs vision. Eylea is a leading Medicare expense, with payments of more than $25 billion between 2012 and 2023.
The United States alleges that Regeneron knew it was required to report all price concessions for Eylea, yet knowingly failed to include price concessions in the form of credit card processing fees that Regeneron paid to specialty drug distributors to benefit its customers. The United States alleges that Regeneron paid these credit card fees for Eylea purchases so that distributors would accept credit cards for physicians’ Eylea purchases while still charging those customers the lower cash price. These payments enabled Regeneron’s customers – typically retina and ophthalmic practices – to use credit cards to purchase Eylea without incurring an additional fee, while also taking advantage of the benefits of using credit cards, such as “cash back” and other credit card rewards. The United States alleges Regeneron internally attempted to disguise the payments as “bona fide service fees” (BFSFs), which are not considered price concessions, when it knew the payments were not BFSFs.
“The government alleges that Regeneron manipulated Medicare’s drug pricing process, by knowingly failing to report its payment of credit card processing fees as price concessions to its customers,” said Acting United States Attorney Joshua S. Levy. “By doing so, Regeneron greatly inflated the costs of its drug to Medicare over many years and enhanced its revenues. Falsely reported average sales prices cost the Medicare system hundreds of millions of dollars and we will make every effort to prevent such practices.”
“We will not permit pharmaceutical companies to flout price reporting requirements to maintain high drug prices,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting federal health care programs from improper actions by drug companies or others that drive up the cost of those programs at the taxpayers’ expense.”
“When drug companies submit average sales price reports to Medicare, those reports are expected to be truthful and accurate,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Reimbursement rate manipulation, as alleged in this complaint, threatens the integrity of the taxpayer-funded Medicare program, and we will thoroughly pursue such allegations.”
“Medicare, a crucial component of our nation’s health care system, draws from a finite pool of funds,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today, Regeneron is accused of siphoning hundreds of millions of dollars of those funds to pad their profits on the backs of taxpayers. The FBI will continue to work with our partners to investigate and bring to justice those who we believe are willfully defrauding the U.S. government.”
The government’s investigation was prompted by False Claims Act allegations brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act. Under the FCA, private parties, known as relators, can file an action on behalf of the United States and receive a portion of the recovery. The FCA permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the FCA, the United States may recover three times the amount of its losses plus applicable penalties.
Acting U.S. Attorney Levy, AAG Boynton, HHS-OIG SAC Coviello and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Diane Seol and Lindsey Ross of the Affirmative Civil Enforcement Unit along with Trial Attorneys Douglas J. Rosenthal, Asha M. Natarajan and Samuel R. Lehman of the Justice Department's Civil Division are handling the matter.
U.S. Attorney’s Office Reminds Correctional Facilities of Obligation to Ensure Access to Treatment for Opioid Use DisorderRead the Press Release
LEXINGTON, Ky. — As part of a comprehensive response to the acute opioid crisis, United States Attorney Carlton S. Shier, IV has forwarded a letter to correctional facilities in the Eastern District of Kentucky, reminding them that refusing to provide required care for persons with opioid use disorder (OUD) can violate the Americans with Disabilities Act (ADA) and that the U.S. Attorney’s Office intends to diligently enforce those protections.
The ADA, which prohibits discrimination based on disability, protects individuals with OUD and their access to treatment, including treatment with FDA-approved medication. The FDA has approved three medications to treat OUD: buprenorphine (Suboxone), methadone, and vivitrol. The ADA prohibits correctional facilities from categorically denying incarcerated individuals access to OUD medication, without individually assessing whether such medication is medically necessary to treat their disability. Policies or practices that likely violate the ADA include not only blanket denials of medication for OUD treatment, but also screening people from treatment based on criteria unrelated to individual medical need.
“Eastern Kentucky remains at the forefront of a devastating opioid epidemic, and we simply must engage in a comprehensive approach to combatting this community health crisis – including enforcement of requirements safeguarding treatments,” said U.S. Attorney Shier. “Access to medications that treat OUD saves lives and helps us in this fight. So, we are urging detention facilities to be mindful of their obligations under federal law, offering to work collaboratively with them to ensure these rights, and intending to do our part in enforcing them.”
The reminder letter furthers a broader effort by the U.S. Attorney’s Office to remove discriminatory barriers to treatment for individuals with OUD. Since 2022, the office has entered into three settlement agreements resolving allegations of discrimination against individuals with OUD: with a medical center, a Central Kentucky detention center, and an Eastern Kentucky detention center. The two agreements with detention centers involved allegations that the facilities failed to provide patients with medication for OUD.
For more information about the Justice Department’s work to address discrimination against individuals with opioid use disorder, please visit www.ada.gov/topics/opioid-use-disorder/. More information about the ADA is available at the Justice Department’s toll-free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov.
For more information on the Office’s civil rights efforts, please visit https://www.justice.gov/usao-edky/civil-rights. ADA complaints may be submitted to the U.S. Attorney’s Office by emailing usakye.civilrights@usdoj.gov or by contacting the Office’s Civil Rights Hotline at (859) 685-4880.
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U.S. Attorneys for the Eastern, Middle, and Western Districts of North Carolina, Department of Housing & Urban Development Office of Inspector General Host Community Conversation on Combatting Sexual Harassment in HousingRead the Press Release
RALEIGH, N.C. – United States Attorneys Michael Easley for the Eastern District of North Carolina, Sandra Hairston for the Middle District of North Carolina, and Dena King for the Western District of North Carolina joined the Civil Rights Division and the Department of Housing and Urban Development’s Office of Inspector General (HUD OIG) in hosting a community conversation today focused on the use of the Fair Housing Act to prevent and address complaints of sexual harassment in HUD-assisted housing.
“In our ongoing commitment to ensure justice and safety for all, we are proud to co-host a community conversation with a focus on combating sexual harassment in housing,” said U.S. Attorney Michael Easley. “This event represents a crucial step in our collaborative efforts to create a safe living environment for all people.”
“Abusing power and control over housing by committing acts of sexual harassment violates a person’s right to equal housing opportunities,” said U.S. Attorney King. “My Office remains steadfast in our commitment to enforce federal civil rights laws to combat sexual harassment in housing, protect vulnerable tenants and housing applicants, and hold accountable landlords, property managers, and owners who violate these statutes.”
“Sexual harassment of citizens who are pursuing safe and affordable housing will not be tolerated,” said U.S. Attorney Hairston. “This reprehensible conduct is often inflicted on people who feel they do not have an avenue to seek help. We hope today’s seminar has provided our partner agencies and organizations with information that can be shared with citizens who may have fallen prey to this illegal activity.”
“Sexual harassment and sexual assault in HUD-assisted housing are discriminatory actions that violate a tenants’ rights to safe and fair housing,” said Inspector General Oliver Davis. “We are proud to work closely with our partners at
the U.S. Attorneys’ Offices and the Department of Justice and will continue to enforce the Fair Housing Act by pursuing bad actors who take advantage of tenants and prospective tenants in violation of the law.”
The virtual engagement signified the partnership between the federal agencies to promote the health and safety of tenants residing in HUD-assisted housing by working together to bring justice to victims of predatory landlords and other housing providers who sexually harass or sexually assault tenants in violation of the federal Fair Housing Act. The topics included discussions about the Fair Housing Act and tenant rights under the law, how to recognize and report sexual misconduct in housing, and case studies.
Participants included representatives from legal aid offices, fair housing organizations, and other community organizations who assist underserved and underrepresented communities with housing. Participants were encouraged to share their experiences, concerns, and expertise to forge future partnerships and provide resource assistance to beneficiaries when reporting allegations of sexual misconduct in housing.
If you or someone you know has information about or has been a victim of sexual harassment, sexual assault, or sexual exploitation—even if the events occurred years ago—report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline.
You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at https://www.hud.gov/fairhousing/fileacomplaint.
You may also contact the U.S. Department of Justice at 1-844-380-6178 or visit www.civilrights.justice.gov.
Individuals who believe they may have been victims of sexual harassment or other housing discrimination may also contact the U.S. Attorney’s Office at:
Eastern District of North Carolina: (919) 856-4530
Middle District of North Carolina: (336) 333-5351
Western District of North Carolina: Charlotte (704) 344-6222 or Asheville (828) 271-4661
For more information on the three North Carolina U.S. Attorney’s Offices, priorities, and resources available to help the community, please visit:
Eastern District of North Carolina: https://www.justice.gov/usao-ednc
Middle District of North Carolina: https://www.justice.gov/usao-mdnc
Western District of North Carolina: https://www.justice.gov/usao-wdnc
U.S. Attorneys for the Western, Middle, and Eastern Districts of North Carolina and Federal Officials Host Community Conversation on Combatting Sexual Harassment in HousingRead the Press Release
CHARLOTTE, N.C. – Dena J. King, Sandra Hairston, and Michael Easley, United States Attorneys for the Western, Middle, and Eastern Districts of North Carolina, respectively, were joined today by officials with the Justice Department’s Civil Rights Division and the U.S. Department of Housing and Urban Development’s Office of Inspector General (HUD OIG) in hosting a community conversation focused on the use of the Fair Housing Act to prevent and address sexual harassment in HUD-assisted housing.
“Abusing power and control over housing by committing acts of sexual harassment violates a person’s right to equal housing opportunities,” said U.S. Attorney King. “My Office remains steadfast in our commitment to enforce federal civil rights laws to combat sexual harassment in housing, protect vulnerable tenants and housing applicants, and hold accountable landlords, property managers, owners, and others who violate these statutes.”
“Sexual harassment of citizens who are pursuing safe and affordable housing will not be tolerated,” said U.S. Attorney Hairston. “This reprehensible conduct is often inflicted on people who feel they do not have an avenue to seek help. We hope today’s seminar has provided our partner agencies and organizations with information that can be shared with citizens who may have fallen prey to this illegal activity.”
“In our ongoing commitment to ensure justice and safety for all, we are proud to co-host a community conversation with a focus on combating sexual harassment in housing,” said U.S. Attorney Easley. “This event represents a crucial step in our collaborative efforts to create a safe living environment for all people.”
“Sexual harassment and sexual assault in HUD-assisted housing are discriminatory actions that violate tenants’ rights to safe and fair housing,” said Inspector General Oliver Davis. “We are proud to work closely with our partners at the U.S. Attorney’s Offices and the Department of Justice and will continue to enforce the Fair Housing Act by pursuing bad actors who take advantage of tenants and prospective tenants in violation of the law.”
The virtual engagement signified the partnership between the federal agencies to promote the health and safety of tenants residing in HUD-assisted housing. Representatives of all agencies expressed their commitment to working together to bring justice to victims of predatory landlords and other housing providers who sexually harass or sexually assault tenants and/or prospective tenants in violation of the federal Fair Housing Act. Discussion topics included information about the scope and use of the Fair Housing Act, tenant rights under the law, how to recognize and report sexual misconduct in housing, and case studies.
Participants included representatives from legal aid offices, fair housing organizations, and other community organizations who assist underserved and underrepresented communities with housing. Participants were encouraged to share their experiences, concerns, and expertise to forge future partnerships and provide resource assistance to beneficiaries when reporting allegations of sexual misconduct in housing.
If you or someone you know has information about or has been a victim of sexual harassment, sexual assault, or sexual exploitation – even if the events occurred years ago – report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline.
You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at https://www.hud.gov/fairhousing/fileacomplaint
You may also contact the U.S. Department of Justice at 1-844-380-6178 or visit www.civilrights.justice.gov.
Individuals who believe they may have been victims of sexual harassment or other housing discrimination may also contact the U.S. Attorney’s Office at:
Western District of North Carolina: Charlotte (704) 344-6222 or Asheville (828) 271-4661
Middle District of North Carolina: (336) 333-5351
Eastern District of North Carolina: (919) 856-4530
For more information on the three North Carolina U.S. Attorney’s Offices, priorities, and resources available to help the community, please visit:
Western District of North Carolina: https://www.justice.gov/usao-wdnc
Middle District of North Carolina: https://www.justice.gov/usao-mdnc
Eastern District of North Carolina: https://www.justice.gov/usao-ednc
U.S. Attorney Announces Arrest and Extradition of David Campbell, Principal Drug and Weapons Supplier for MS-13 in HondurasRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; John J. Durham, the Director of Joint Task Force Vulcan (“JTFV”); Anne Milgram, the Administrator of the Drug Enforcement Administration (“DEA”); Katrina W. Berger, the Executive Associate Director of Homeland Security Investigations (“HSI”); and Douglas Williams, the Special Agent in Charge of the Houston Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest and extradition of DAVID CAMPBELL, a/k/a “Viejo Dan,” a/k/a “Don David,” one of the principal narcotics and weapons suppliers to MS-13 in Honduras. CAMPBELL was presented today before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court after being extradited yesterday from Honduras.
In addition to CAMPBELL, the Superseding Indictment unsealed today also charges YULAN ANDONY ARCHAGA CARÍAS, a/k/a “Alexander Mendoza,” a/k/a “Porky,” the top leader of MS-13 in Honduras, and three additional MS-13 leaders, JUAN CARLOS PORTILLO SANTOS, a/k/a “Juancy,” VICTOR EDUARDO MORALES ZELAYA, a/k/a “Cuervo,” and JORGE ALBERTO VELASQUEZ PAZ, a/k/a “Chacarron,” for racketeering, narcotics trafficking, and firearms offenses. CAMPBELL and ARCHAGA CARÍAS were previously charged in 2021 in a Superseding Indictment in Manhattan federal court with racketeering, narcotics trafficking, and firearms offenses. ARCHAGA CARÍAS was subsequently placed on the FBI’s Ten Most Wanted Fugitives List, the DEA’s Most Wanted Fugitives List, HSI’s Most Wanted Fugitives List, and a $5 million reward was offered by the U.S. Department of State for information related to his arrest or capture. PORTILLO SANTOS and VELASQUEZ PAZ are in custody in Honduras. MORALES ZELAYA remains at large. The case is assigned to U.S. District Judge Gregory H. Woods.
U.S. Attorney Damian Williams said: “MS-13 is one of the most dangerous criminal organizations in the world. My Office, the Justice Department, and our law enforcement partners will stop at nothing to pursue and hold accountable MS-13’s leaders, members, and associates, who, as alleged in the Superseding Indictment unsealed today, are responsible for large-scale drug trafficking and violence throughout the United States and Central America. As alleged, David Campbell was, until his capture, one of MS-13’s major suppliers of drugs and guns, and he planned and coordinated violent acts with the top leader of MS-13 in Honduras, Archaga Carías. Campbell has now been extradited and will face justice in the United States, and a $5 million reward is offered for information leading to the arrest of Archaga Carías.”
Attorney General Merrick B. Garland said: “Over the course of decades, MS-13 has sowed unspeakable violence in communities here in the United States and abroad. With the arrest and extradition of the alleged principal MS-13 drug and weapons supplier, the Justice Department is making clear that those responsible for flooding our communities with violence and deadly drugs will be held accountable in an American courtroom.”
JTFV Director John J. Durham said: “MS-13’s brutal violence is fueled by firearms, funded by narcotics trafficking, and disguised by money laundering. As alleged in the Superseding Indictment, David Campbell and his co-conspirators procured and sold multi-ton loads of narcotics, deployed firearms, including machine guns, and laundered the drug proceeds, all in furtherance of the organization. Thanks to the tenacious efforts and collaboration of our law enforcement partners, he now will face justice in a United States courtroom.”
DEA Administrator Anne Milgram said: “Today's extradition of David Campbell and the announcement of charges against four other MS-13 leaders for their alleged involvement in trafficking multi-ton loads of cocaine and for allegedly perpetrating unspeakable acts of violence in our communities is a testament to the unwavering commitment of the men and women of DEA to save lives and hold drug traffickers accountable. DEA will continue to seek justice for all Americans suffering the devastating effects of drug poisonings and drug-related violence in our communities.”
HSI Executive Associate Director Katrina W. Berger said: “Campbell’s arrest and extradition should serve as a clear message to those who support MS-13 and other transnational criminal organizations. HSI will not cease its relentless pursuit of all suspects involved in this case until they are captured and brought to justice.”
FBI Special Agent in Charge Douglas Williams said: “Every day, MS-13 ravages American neighborhoods with violence, drugs, and death. David Campbell allegedly enabled the exportation of violence and poison onto American streets as Mara Salvatrucha’s primary supplier of cocaine and weapons. FBI Houston’s work to ensure Campbell now faces U.S. justice sends a simultaneous message to MS-13 around the world — we will not stop pursuing you, we will not stop dismantling your networks, and we will not rest until we’ve eradicated the violence you bring into our society.”
As alleged in the Superseding Indictment unsealed in Manhattan federal court:[1]
MS-13 is a transnational criminal organization that engages in acts of violence, including murders, kidnapping, assaults, extortion, and large-scale drug importation and distribution throughout Central America and the United States. ARCHAGA CARÍAS is the highest-ranking member of MS-13 in Honduras. As the leader and highest-ranking member of MS-13 in Honduras, ARCHAGA CARÍAS is in charge of, among other things, the gang’s drug trafficking operations; ordering and coordinating acts of violence, including numerous murders; and the laundering of drug proceeds. MORALES ZELAYA and VELASQUEZ PAZ are both leaders of MS-13 in Honduras and close associates to ARCHAGA CARÍAS. MS-13’s drug trafficking operations led by ARCHAGA CARÍAS, MORALES ZELAYA, VELASQUEZ PAZ, and others include the processing, receiving, transporting, and distributing of multi-ton loads of cocaine shipped through Honduras and into the United States.
ARCHAGA CARÍAS and other MS-13 members and associates acting at his direction also provided protection for other drug trafficking organizations (“DTOs”) engaged in transporting multi-ton loads of cocaine through Honduras and destined for the United States. ARCHAGA CARÍAS contracted out members of MS-13 as “Sicarios,” or hit men, to other DTOs for payment. In that role, MS-13’s Sicarios committed numerous murders for hire for DTOs trafficking cocaine through Honduras to the United States. ARCHAGA CARÍAS and MS-13 also supplied other DTOs with firearms, including machineguns, that were received from El Salvador, Nicaragua, and elsewhere. ARCHAGA CARÍAS – and MORALES ZELAYA, VELASQUEZ PAZ, and PORTILLO SANTOS, operating under ARCHAGA CARÍAS’s leadership – also ordered and coordinated murders of rival gang members and drug trafficking competitors in Honduras, as well as other members of MS-13 whom ARCHAGA CARÍAS believed had been disloyal to the gang.
CAMPBELL was one of the principal suppliers of cocaine and weapons, including machineguns, to MS-13 in Honduras. As an associate of MS-13 and close confidant of ARCHAGA CARÍAS, CAMPBELL planned and coordinated retaliatory acts of violence with ARCHAGA CARÍAS and assisted MS-13 and ARCHAGA CARÍAS in establishing businesses to launder the gang’s drug proceeds. CAMPBELL and MS-13 used businesses they owned or controlled to launder drug proceeds, including through banks in the United States.
MORALES ZELAYA and VELASQUEZ PAZ were both leaders of MS-13 in Honduras and close associates of ARCHAGA CARÍAS. MORALES ZELAYA and VELASQUEZ PAZ each coordinated the gang’s drug trafficking business, acts of violence (including murders) against rivals, and the movement of proceeds from the gang’s illicit activities.
PORTILLO SANTOS was a high-ranking member of MS-13 in Honduras who reported to MORALES ZELAYA. PORTILLO SANTOS was responsible for leading MS-13 in one of the largest sectors in Honduras, which included the distribution and movement of large shipments of cocaine, acts of violence (including murders and kidnappings) of rival gang members, and contract murders carried out against rival drug dealers.
ARCHAGA CARÍAS and MORALES ZELAYA remain at large. The $5 million reward offered by the U.S. Department of State remains valid today. Anyone with information that may lead to the arrest of ARCHAGA CARÍAS or MORALES ZELAYA can contact the FBI at 1-800-CALL-FBI. More information can be found here: https://www.fbi.gov/wanted/topten, here: https://www.dea.gov/fugitives and here: https://www.ice.gov/most-wanted.
* * *
If convicted, CAMPBELL, 57, of Honduras; ARCHAGA CARÍAS, 42, of Honduras; PORTILLO SANTOS, 35, of Honduras; MORALES ZELAYA, 49, of Honduras; and VELASQUEZ PAZ, 41, of Honduras, face a maximum penalty of life in prison and a mandatory minimum sentence of 40 years in prison.
A chart containing the charges and statutory minimum and maximum penalties for the defendants is set forth below. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit; the FBI’s San Diego, Houston, Los Angeles, and New York Field Offices; the FBI’s Criminal Investigative Division’s Safe Streets Gang Unit; HSI’s National Gang and Violent Crime Unit; and HSI’s New York and Tegucigalpa, Honduras, Field Offices. Mr. Williams also thanked the FBI Legal Attaché in San Salvador, the Organized Crime Drug Enforcement Task Forces (“OCDETF”) Executive Office, the Department of Justice’s Violent Crime and Racketeering Section, the U.S. Attorney’s Office for the Southern District of Florida, and Customs and Border Protection Air and Marine Operations, for their assistance. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of CAMPBELL.
The case is being handled by JTFV and the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorney David J. Robles, Special Assistant U.S. Attorney Christopher Eason, and Department of Justice Trial Attorney Jacob Warren are in charge of the prosecution.
Since its creation in August 2019, JTFV has successfully implemented a whole-of-government approach to combatting MS-13, including increasing coordination and collaboration with domestic and foreign law enforcement partners; designating priority MS-13 programs, cliques, and leaders who have the most impact on the United States for targeted prosecutions; and coordinating significant MS-13 indictments, including the first use of national security charges against MS-13 leaders. JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including this Office, the Eastern District of New York, the Eastern District of Texas, the District of New Jersey, the Northern District of Ohio, the District of Utah, the District of Massachusetts, the Southern District of Florida, the District of Alaska, the Southern District of California, the District of Nevada, the Eastern District of Virginia, and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. All Department of Justice law enforcement agencies are involved in the effort, including the FBI; DEA; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the U.S. Bureau of Prisons. In addition, HSI plays a critical role in JTFV. The Department of State, Bureau of International Narcotics and Law Enforcement Affairs, and the U.S. Agency for International Development, Office of Inspector General, have also provided critical support for JTFV’s mission.
OCDETF also supports JTFV in its mission. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MIN./MAX. PENALTIES
1
Racketeering conspiracy
YULAN ANDONY ARCHAGA CARÍAS
DAVID CAMPBELL
JUAN CARLOS PORTILLO SANTOS
VICTOR EDUARDO MORALES ZELAYA
JORGE ALBERTO VELASQUEZ PAZ
Maximum of life in prison
2
Narcotics importation conspiracy
YULAN ANDONY ARCHAGA CARÍAS
DAVID CAMPBELL
JUAN CARLOS PORTILLO SANTOS
VICTOR EDUARDO MORALES ZELAYA
JORGE ALBERTO VELASQUEZ PAZ
Mandatory minimum of 10 years in prison
Maximum of life in prison
3
Using or carrying a machinegun during and in relation to, or possessing a machinegun in furtherance of, a narcotics trafficking crime
YULAN ANDONY ARCHAGA CARÍAS
DAVID CAMPBELL
JUAN CARLOS PORTILLO SANTOS
VICTOR EDUARDO MORALES ZELAYA
JORGE ALBERTO VELASQUEZ PAZ
Mandatory minimum of 30 years in prison
Maximum of life in prison
4
Machinegun conspiracy
YULAN ANDONY ARCHAGA CARÍAS
DAVID CAMPBELL
JUAN CARLOS PORTILLO SANTOS
VICTOR EDUARDO MORALES ZELAYA
JORGE ALBERTO VELASQUEZ PAZ
Maximum of life in prison
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.