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30 August 2023
Justice Department Files Complaint to Enjoin Arizona Company and Its Owner from Manufacturing and Distributing Unapproved Animal DrugsRead the Press Release
The Justice Department announced today that the United States filed a complaint to enjoin a Gilbert, Arizona, company from manufacturing and distributing products the government alleges to be adulterated and unapproved new animal drugs, the Justice Department announced today.
In a civil complaint for permanent injunction filed Aug. 29, in the U.S. District Court for the District of Arizona, the United States alleges that AniCell Biotech LLC and its owner, Brandon T. Ames, violated the Federal Food, Drug and Cosmetic Act (FDCA). According to the complaint, the defendants manufacture products under the brand names EquusCell and CanisCell consisting of injectable and intravenous liquids, eye drops and grafts derived from the amniotic tissue of horses. The complaint alleges that the defendants claim on their website and in promotional pamphlets that their products are intended for use in horses, dogs and cats to treat various diseases, such as osteoarthritis and renal failure, and to promote tissue regeneration and healing.
According to the complaint, the defendants’ products are not generally recognized by qualified experts as safe and effective for the purposes claimed by the defendants and lack approval by the U.S. Food and Drug Administration (FDA). The complaint further alleges that new animal drugs sold in interstate commerce without FDA approval are considered adulterated. The complaint states that FDA repeatedly told the defendants, including through a 2018 warning letter, that their products constituted new animal drugs under the law and could not be sold without FDA approval.
“The FDCA is critical to ensuring the safety of animal drugs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to work with FDA to take action against animal drug manufacturers that do not comply with the law.”
“New animal drugs must undergo FDA review to ensure that, among other things, they are safe and effective for their intended uses,” said Director Tracey Forfa J.D. of the FDA’s Center for Veterinary Medicine. “When companies distribute unapproved new animal drugs like these by ignoring or attempting to bypass the public health safeguards of FDA pre-market review and post-market monitoring, they not only violate the law, but they also violate the trust of their people who rely on their products to be safe and effective to treat animals in need.”
Trial Attorney Coleen Schoch of the Justice Department’s Consumer Protection Branch is handling the case with the assistance of Associate Chief Counsel for Enforcement Jaclyn E. Martínez Resly of the FDA’s Office of the Chief Counsel.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
ComplaintJacksonville Convicted Felon Sentenced to More Than Three Years in Federal Prison for Firearm PossessionRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Antoine Danielle Pearson, Jr. (28, Jacksonville) to three years and one month in federal prison, followed by three years of supervised release, for possessing a firearm as a convicted felon. He was also ordered to forfeit the firearm and ammunition traceable to the offense. Pearson had pleaded guilty on May 24, 2023.
According to court documents, on August 12, 2022, officers with the Jacksonville Sheriff’s Office (JSO) attempted to pull over Pearson due to a traffic infraction. After he stopped, Pearson fled from the vehicle on foot, armed with a Glock pistol, an extended magazine with 24 rounds of ammunition, and a Glock switch. A Glock switch enables a semi-automatic firearm to operate as a fully functioning machine gun. Pearson was apprehended by JSO canine officers.
At the time of the offense, Pearson had multiple prior felony convictions and therefore is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sherriff’s Office. It was prosecuted by Assistant United States Attorney John Cannizzaro. The forfeiture will be handled by Assistant United States Attorney Mai Tran.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Indiana Resident Sentenced to 90 Months in Prison on Charges of Violating Federal Narcotics LawsRead the Press Release
PITTSBURGH, PA. – A resident of Indiana, Pennsylvania, was sentenced on charges of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
The two-count Indictment named James Emmanuel Emerson, a/k/a “Manny,” age 52, as the sole defendant.
According to the Indictment presented to the court, on or about February 15, 2022, and on or about March 3, 2022, Emerson knowingly, intentionally, and unlawfully possessed with the intent to distribute and distributed 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
United States District Court Judge Arthur J. Schwab sentenced Emerson to 90 months in prison to be followed by a four-year term of supervised release.
Assistant United States Attorney Carl J. Spindler prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indian National Admits Defrauding Telephone Providers and Insurance Companies of Millions of Dollars’ Worth of MerchandiseRead the Press Release
NEWARK, N.J. – An Indian national admitted today that he conspired with others to devise a scheme to defraud various telephone providers and insurance companies out of millions of dollars by using stolen or fake identities to submit fraudulent claims for replacement cellular devices and then reselling those devices outside the United States, U.S. Attorney Philip R. Sellinger announced.
Parag Bhavsar, 42, of Newark, pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to commit mail fraud and one count of conspiracy to commit interstate transfer of stolen property.
According to documents filed in this case and statements made in court:
From June 2013 through June 2019, Bhavsar was involved in a widespread scheme to defraud cellular telephone provider and insurance companies using the U.S. Postal Service mail system, as well as other third-party mail carriers. He and his conspirators used stolen and fake identities to submit false claims of lost, stolen or damaged cellular telephones, as well as other devices, in order to obtain replacement devices. Bhavsar and his conspirators maintained a network of mailboxes and storage units across the United States, including in New Jersey, where the replacement devices would be shipped and then held before being sold to third parties outside the United States. Bhavsar and his conspirators’ scheme resulted in millions of dollars of losses to the cellular telephone providers and insurance companies.
The charge of conspiracy to commit mail fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. The charge of conspiracy to commit interstate transfer of stolen goods carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. As part of the plea agreement, Bhavsar will consent to the entry of a forfeiture money judgement of $10.67 million. Sentencing is scheduled for Jan. 3, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Assistant Director in Charge James Smith in New York, postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel; officers of U.S. Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Frank Russo; and the U.S. Department of State’s Diplomatic Security Service, New York Field Office, under the direction of Acting Special Agent in Charge Kelly Bishop, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rachelle M. Navarro of the U.S. Attorney’s Office’s Criminal Division in Newark.
bhavsar.information.pdfHoward County Man Pleads Guilty for Threatening an LGBTQI+ Advocacy GroupRead the Press Release
Baltimore, Maryland – Adam Michael Nettina, age 34, of West Friendship, Maryland, pleaded guilty today to using the telephone to threaten a group that advocates for LGBTQI+ people. As part of his plea agreement, Nettina also admitted sending messages to Maryland and Virginia state delegates due to their statements in support of transgender people.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
“You have the right to your own opinions, but you don’t have the right to threaten the lives of those who disagree with you,” said United States Attorney for the District of Maryland, Erek L. Barron. “We’ll continue prosecuting these threats to the fullest extent of the law.”
“Bias-motivated threats of violence terrorize entire communities and have no place in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to investigate and prosecute individuals who commit unlawful acts of hate in our country.”
“All Americans should be able to go about their daily lives without fear and without threats of violence,” said Special Agent in Charge Thomas J. Sobocinski of the FBI’s Baltimore Field Office. “Protecting the American people is the FBI’s number one priority and we remain committed to protecting the rights of all Americans. We urge members of the public to notify law enforcement about threats of violence or if they have any concerns.”
According to court documents, on the evening of March 28, 2023, the victim organization received a threatening voicemail from a phone number, which investigators identified as belonging to Adam Michael Nettina. The message referenced the March 27, 2023, mass shooting at a school in Nashville, Tennessee, involving multiple shooting fatalities, where police identified the perpetrator as a transgender woman. During the call, numerous threats were made including, “ . . . We’ll cut your throats. We’ll put a bullet in your head . . . . You’re going to kill us? We’re going to kill you ten times more in full.” Nettina admitted that he left this voicemail for the purpose of issuing a threat and with the knowledge that the voicemail would be viewed as a threat. Further, Nettina intentionally selected the advocacy organization as a target of his message because of the actual and perceived gender, gender identity, and sexual orientation of the people who work at and are assisted by the organization.
As detailed in his plea agreement, on March 31, 2022, a Maryland State Delegate posted a message of support on social media in honor of Trans Day of Visibility. Nettina responded on social media later that same day, which stated, among other things, that he had “begun the formal process of getting you excommunicated . . . ” from the Catholic Church. On November 8, 2022, the delegate was reelected. Nettina sent the delegate another message on social media, stating: “ . . . Baby killing terrroist. Enjoy hell You’re going sooner than you think.”
Finally, as outlined in the court documents, on October 13, 2022, an online news story was published about an interview a Virginia State Delegate gave in which she advocated for the prevention of abuse towards transgender children. Two days later, on October 15, 2022, Nettina used the internet to send an email to the delegate’s press email account, stating: “The delegate is a terrorist. You are a terrorist. You deserve to be shot and hung in the streets. You want to come after people? Let’s go b**ch.” Nettina also sent a similar message to another email address of the delegate two minutes later. Nettina intentionally selected the delegate and her campaign staff as the recipient of his email because of the actual and perceived gender, gender identity, and sexual orientation of the people and constituents for whom the delegate had expressed support.
Nettina faces a maximum sentence of five years in federal prison for making threats transmitted by interstate communications. U.S. District Judge George L. Russell, III has scheduled sentencing for Nettina on November 3, 2023, at 9:30 a.m.
United States Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke commended the FBI for its work in the investigation. Mr. Barron and Ms. Clarke thanked Assistant U.S. Paul E. Budlow and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division, who are prosecuting the federal case.
The U.S. Attorney’s Office for the District of Maryland (USAO-MD) is launching the national Department of Justice initiative, United Against Hate, this spring. Together with our local partners, USAO-MD’s United Against Hate campaign will empower local residents and communities to combat unlawful acts of hate, stand against racism and discrimination and alter the course of growing intolerance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Health Care Provider Agrees to Pay $5 Million for Alleged False Claims to California’s Medicaid ProgramRead the Press Release
Lompoc Valley Medical Center (LVMC), a California Health Care District that operates multiple health care providers, including a hospital and several clinics, in Lompoc, California, has agreed to pay $5 million to resolve allegations that it violated the False Claims Act and the California False Claims Act by causing the submission of false claims to California’s Medicaid program (Medi-Cal) related to Medicaid Adult Expansion under the Patient Protection and Affordable Care Act (ACA).
Pursuant to the ACA, beginning in January 2014, Medi-Cal was expanded to cover the previously uninsured “Adult Expansion” population – adults between the ages of 19 and 64 without dependent children with annual incomes up to 133% of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program. Under contracts with California’s Department of Health Care Services (DHCS), Santa Barbara San Luis Obispo Regional Health Authority, doing business as CenCal Health (CenCal), arranges for the provision of health care services as a county organized health system under Medi-Cal in Santa Barbara County and San Luis Obispo County, California, by contracting with providers such as LVMC to provide health care services to Medi-Cal patients. Under its contractual arrangement with DHCS, CenCal received funding to serve the Adult Expansion population. If CenCal did not spend at least 85% of the funds it received for the Adult Expansion population on “allowed medical expenses,” CenCal was required to pay back to the state the difference between 85% and what it actually spent. California, in turn, was required to return that amount to the federal government.
The settlement resolves allegations that LVMC knowingly caused the submission of false claims to Medi-Cal pursuant to agreements executed by LVMC with CenCal for “Enhanced Services” that LVMC purportedly provided to Adult Expansion Medi-Cal members between Jan. 1, 2014, and June 30, 2016. The United States and California alleged that LVMC claimed and received payments pursuant to those agreements that were not for “allowed medical expenses” permissible under the contract between DHCS and CenCal; were pre-determined amounts that did not reflect the fair market value of any Enhanced Services provided by LVMC; and/or the Enhanced Services were duplicative of services already required to be rendered by LVMC. The United States and California further alleged that the payments were unlawful gifts of public funds in violation of the California Constitution.
This settlement brings the United States’ total recovery in the matter to $95.5 million. CenCal, Cottage Health System, Sansum Clinic and Community Health Centers of the Central Coast previously paid $68 million, and Dignity Health and Twin Cities Community Hospital and Sierra Vista Regional Medical Center, two subsidiaries of Tenet Healthcare Corporation, previously paid $22.5 million, to settle similar False Claims Act allegations.
“The Medicaid program provides critical health care services to those most in need,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold providers accountable when they knowingly divert Medicaid funds from their intended purpose.”
“This resolution underscores our steadfast resolve to hold accountable health care providers that seek to undermine the integrity of the Medicaid program,” said U.S. Attorney Martin Estrada for the Central District of California. “We will ensure that the nearly $100 million recovered in this case remains in government health care programs, and not in the hands of unscrupulous health care systems and providers.”
“Federal health care programs are intended to ensure that millions of Americans have access to high quality, medically necessary care,” said Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Protecting federal health care funds from fraud, waste, and abuse is at the center of HHS-OIG’s mission, and we are committed to ensuring that these valuable resources are available to patients as intended.”
“Medi-Cal supports millions of Californians by providing for the critical healthcare they rely on every day,” said California Attorney General Robert Bonta. “When providers misuse Medi-Cal funding, they siphon away much-needed resources from vulnerable, deserving patients. My office always stands ready to partner with the U.S. Department of Justice to hold such perpetrators accountable. The California Department of Justice is committed to protecting the integrity of the Medi-Cal program against those who may seek to abuse it.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Julio Bordas, CenCal’s former medical director. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States and State of California ex rel. Bordas v. Lompoc Valley Medical Center, et al., No. 15-cv-09834 (C.D. Cal.). Dr. Bordas will receive approximately $950,000 as his share of the federal recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Central District of California, and the California Department of Justice, with assistance from HHS-OIG and DHCS.
The investigation of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Trial Attorneys Mary Beth Hickcox-Howard and Tiffany L. Ho of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Jack D. Ross for the Central District of California handled this case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementHarlingen business operators charged in multi-million dollar power wheelchair fraud schemeRead the Press Release
BROWNSVILLE, Texas – The operators of a durable medical equipment company have been charged with defrauding Medicare, announced U. S. Attorney Alamdar S. Hamdani.
Authorities took Maria Luisa Yzaguirre, 43, Harlingen, into custody this morning. She is expected to make her initial appearance before U.S. Magistrate Judge Ignacio Torteya III at 9:30 a.m. Aug. 31.
Jeremiah Yzaguirre, 44, also of Harlingen, was arrested Aug. 22.
The 16-count indictment charges the operators with conspiracy to commit health care fraud, aggravated identity theft and money laundering.
The charges allege that between 2019 and 2023, the Yzaguires submitted over $14 million in claims to Medicare for power wheelchairs, power scooters, parts and repairs for 37 individuals. In multiple instances, they allegedly billed Medicare more than $600,000 for parts and repairs for one Medicare beneficiary and falsely claimed to have replaced expensive parts on numerous occasions.
According to the indictment, in one instance they billed Medicare approximately $736,072 in parts and repairs for one patient - submitting repair claims 132 times for the expandable controller, 107 times for the motor-gearbox and 84 times for the battery. The patient was bed bound and did not have access to the power wheelchair when the repairs were allegedly conducted.
Additionally, the indictment alleges they used proceeds of the fraud scheme to purchase millions of dollars in real estate, cryptocurrency, stock, a luxury sports car and expensive movie memorabilia.
If convicted, they each face up to 10 years in prison for health care fraud and money laundering and a mandatory two years for each count of aggravated identity theft which muse be served consecutively to any other prison term imposed.
The FBI, Department of Health and Human Services-Office of Inspector General, Texas Health and Human Services, Texas Attorney General - Medicaid Fraud Control Unit and Texas Department of Insurance conducted the investigation.
Assistant U.S. Attorneys Andrew Swartz and Ana Cano are 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.
Great Falls man admits making false statement while trying to buy gunRead the Press Release
GREAT FALLS — A Great Falls man admitted today that he did not disclose he was a methamphetamine user when he attempted to purchase a gun from a firearms dealer, U.S. Attorney Jesse Laslovich said.
Joshua Raymond Sauve, 35, pleaded guilty to making a false statement during a firearm transaction. Sauve faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for Jan. 24, 2024 and ordered Sauve detained pending further proceedings.
The government alleged in court documents that in April 2022 in Great Falls, law enforcement received a 911 report of a person, later identified as Sauve, waving a gun in the air while walking in the middle of the street near a gas station. Officers found Sauve in the gas station’s restroom, ordered him out and seized a .40-caliber semi-automatic pistol from his waistband. Sauve told an agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives that he tried to buy the pistol at Scheels but received a delay on the purchase. Because of the delay, Sauve contacted someone else who could buy the same gun for him. Sauve also acknowledged that he had used meth for the last five years. Investigators determined that Sauve tried to buy the pistol at Scheels, a licensed firearms dealer, and knowingly made a false statement when he checked the box on the ATF purchase form indicating that he was not an unlawful user of a controlled substance. While Scheels did not allow Sauve to purchase the pistol, Sauve’s statement was capable of influencing Scheels into believing that the firearm could be lawfully sold to him.
Assistant U.S. Attorney Jessica A. Betley is prosecuting the case. The ATF and Great Falls Police Department conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two Vernon County Residents Charged with Drug Crimes Involving Methamphetamine & Fentanyl
Stanley J. Holte, 33, and Julia A. Lloyd, 40, both of Coon Valley, Wisconsin, are charged with conspiring to distribute methamphetamine and fentanyl. The indictment alleges that the amount of methamphetamine involved in the conspiracy is 500 grams or more. The indictment further alleges that the conspiracy operated from February through June 2023.
Holte and Lloyd also are charged with maintaining a drug house for the purpose of distributing methamphetamine and fentanyl, specifically a place in Coon Valley. The indictment also charges that on June 12, 2023, Holte and Lloyd possessed 500 grams or more of methamphetamine with intent to distribute. The indictment also seeks the forfeiture of $58,104 in U.S. currency alleged to be proceeds of the drug conspiracy.
If convicted, Holte and Lloyd face a mandatory minimum sentence of 10 years and a maximum of life in federal prison on the two charges alleging 500 grams or more of methamphetamine. The charge of maintaining a drug house has a maximum penalty of 20 years in federal prison. The charges against Holte and Lloyd are the result of an investigation by the Vernon and La Crosse County Sheriffs’ Offices, the Drug Enforcement Administration, and the Campbell, La Crosse, and Onalaska Police Departments. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
La Crosse Man Charged with Possessing Methamphetamine for Distribution & Gun Crimes
Benjamin W. Thoreson, 42, La Crosse, Wisconsin, is charged with possessing methamphetamine with intent to distribute, possessing a loaded firearm in furtherance of that drug trafficking crime, and being a felon in possession of firearms and ammunition. The indictment alleges that on August 2, 2023, Thoreson possessed methamphetamine for distribution and two loaded handguns.
f convicted, Thoreson faces a maximum penalty of 20 years in federal prison on the methamphetamine charge and a mandatory minimum penalty of 5 years and a maximum of life on the charge of possessing a firearm in furtherance of that drug trafficking crime. Federal law requires that any penalty imposed for the charge of possessing a firearm in furtherance of a drug trafficking crime be served consecutive to any other sentence imposed. The charge of being a felon in possession of firearms and ammunition has a maximum penalty of 15 years in federal prison.
The charges against Thoreson are the result of an investigation by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
La Crosse Man Charged with Illegally Possessing Firearm
Briante C. Banks, 30, La Crosse, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on May 2, 2023, he possessed a loaded 9mm handgun.
If convicted, Banks faces a maximum penalty of 15 years in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department, La Crosse County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Eau Claire Man Charged with Gun Crime
Nathaniel R. Larson, 25, Eau Claire, Wisconsin, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that on July 11, 2023, Larson possessed a loaded 9mm handgun.
If convicted, Larson faces a maximum penalty of 15 years in federal prison. The charge against him is the result of an investigation by the Eau Claire Police Department, West Central Drug Task Force, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
The Thoreson, Banks, and Larson indictments have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Furniture company employee pleads guilty to embezzling more than $26 million from employerRead the Press Release
COLUMBUS, Ohio – A Central Ohio man pleaded guilty in U.S. District Court to embezzling more than $26 million from his Columbus employer.
Yi He, 35, of Powell, admitted to committing wire fraud and filing a false tax return.
According to court documents, Yi was a long-time and trusted employee of a furniture company that provides furniture to retailers like Wayfair, Overstock, Kohls, Walmart and Ashley. Yi was solely responsible for payroll and payroll tax-related duties for the company.
From 2018 until 2022, Yi embezzled money from the company’s bank account into his own personal and financial investment accounts. Yi submitted false and fraudulent bank and financial statements to the company’s leadership to remain undetected.
For example, in one wire transfer in February 2022, Yi wired himself $100,000. Yi falsified that month’s bank account statement by removing the transaction entirely.
In total, Yi stole $26.5 million from the company.
Yi also helped oversee an employee incentive LLC that rewarded company employees with 10 or more years of service. The LLC offered employees a way to earn more and supplement retirement. Yi similarly embezzled from the LLC’s bank accounts. For example, in one wire transfer in April 2022, he paid himself $200,000 by falsely categorizing the transfer as “Rent.” In total, he stole $635,000 from the LLC.
Yi failed to accurately report his income to the IRS for tax years 2018 through 2021, causing a total tax loss of approximately $6.8 million.
As part of his guilty plea, Yi will pay more than $27 million in restitution to the furniture company and LLC, and he will forfeit two homes in Reynoldsburg and one home in Columbus.
Wire fraud is punishable by up to 20 years in prison. Filing a false tax return carries a potential penalty of up to three years in prison. Congress sets the maximum statutory sentence, and sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI); announced the guilty plea entered on Aug. 29 before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Jessica W. Knight is representing the United States in this case.
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Former University Financial Advisor Sentenced to Four Years in Federal Prison for Scheme to Fraudulently Obtain More Than $5 Million in Student LoansRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Randolph Stanley, age 44, of Lexington Park, Maryland, yesterday to four years in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud. Judge Chuang also ordered that Stanley must pay restitution in the full amount of the victims’ losses, which is at least $5,648,238, the outstanding balance on all federal student loans that Stanley obtained on behalf of himself and others as part of the scheme.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Terry Harris of the U.S. Department of Education, Office of Inspector General (DOE-OIG) Eastern Regional Office; and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office.
As detailed in court documents and his plea agreement, from about 2006 until approximately 2021, Stanley and his co-conspirators engaged in a scheme to defraud the U.S. Department of Education. Specifically, Stanley, was employed as a Financial Advisor at University 1, headquartered in Adelphi, Maryland, and his co-conspirators recruited over 60 individuals (“Student Participants”) to apply for and enroll in post-graduate programs at more than eight academic institutions, including University 1 and University 2 (“the Schools”). Stanley and his co-conspirators told Student Participants that they would assist with the coursework for these programs, including completing assignments and participating in online classes on behalf of the Student Participants, in exchange for a fee. As a result, the Student Participants fraudulently received credit for the courses, and in many cases, degrees from the Schools, without doing the necessary work.
Stanley also admitted that he and his co-conspirators directed the Student Participants to apply for federal student loans. Many of the Student Participant were not qualified for the programs to which they applied. Student Participants, as well as Stanley himself, were awarded tuition, which went directly to the Schools and at least 60 Student Participants also received student loan refunds, which the Schools disbursed to Student Participants after collecting the tuition. Stanley, as the ringleader of the scheme, kept a portion of each of the students’ loan refunds.
United States Attorney Erek L. Barron commended the DOE-OIG, Defense Criminal Investigative Service, and the Defense Contract Audit Agency Office of Inspector General for their work in the investigation. Mr. Barron thanked Special Assistant United States Attorney Peter Cooch and Assistant U.S. Attorney Leah Grossi, who handled the sentencing.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Former Sheriff’s Deputy Indicted for Threatening to Burn Down the Plymouth County Courthouse and Kill Law Enforcement OfficersRead the Press Release
BOSTON – A federal grand jury in Boston indicted a former Middlesex County Sheriff’s deputy today for allegedly threatening to burn down the Plymouth County Courthouse, to kill court security officers and “to get” current Middlesex County sheriff’s officers.
Joshua P. Ford, 42, of Kingston, Mass., was indicted on three counts of interstate transmission of a threatening communication. Ford is currently in state custody and will appear in U.S. District Court in Boston at a later date.
According to the indictment, Ford served as a deputy for the Middlesex County Sheriff’s Office between about 2009 and 2017. It is alleged that on March 13, 2023, Ford sent 12 emails to a total of about 140 people, almost all Massachusetts law enforcement officers. Each email allegedly contained the same text: stating “[there] is no more justice system anymore just WAR” and “I am calling on all able bodied officers my brothers in blue to suit up for a fight.” Ford then allegedly asked those law enforcement officers to arm themselves with firearms and armored vehicles and declared, “Tomorrow we burn down the Plymouth County Court house to the ground.”
It is further alleged that the emails included a link to a video Ford posted on YouTube and British video hosting service BitChute. According to the indictment, the video, titled, “War Has Been Declared F***’em All,” is an 11-minute recording of Ford in a kitchen, where he speaks directly to the camera. In the video, it is alleged that Ford’s principal assertion is that the justice system is corrupt, and makes various statements about police officers, correctional officers, court officers, a judge, a prosecutor, defense attorneys and others. Ford allegedly expressed particular contempt for Middlesex Sheriff’s officers, about whom he says, “And guess what? I’m f****** coming. I’m f****** coming, and hell’s f****** coming with me. I’m going to f****** get every last one of you mother*****s. I know where you work. And I am coming to get you.” Ford also allegedly threatened to “break the arms and legs of every court officer” and to “kill” court security officers working in the Plymouth County Courthouse. Ford also allegedly exhorted other law enforcement officers to assist him by bringing guns, gasoline, C-4, armored personnel carriers and SWAT teams to his confrontation, which he scheduled for 8:30 a.m. on March 14, 2023. Instead, local law enforcement arrested Ford on March 13, 2023 after the emails were sent.
The charges of interstate transmission of a threatening communication each provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Kingston Police Department and the Marshfield Police Department provided valuable assistance in the investigation. Assistant U.S. Attorney Amanda Beck of the National Security Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Plumas County Man Sentenced to 6 Years in Prison for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — David J. Zappa, 71, of Sebastopol, was sentenced Tuesday to six years in prison to be followed by 10 years of supervised release for receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 5, 2015, law enforcement officers executed a search warrant at Zappa’s home and found that Zappa used peer-to-peer software to receive and share files over the BitTorrent network, and his computer was in the process of downloading four torrent files that contained child pornography. Overall, agents found thousands of images and approximately 200 videos of child pornography.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Roger Yang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Former North Shore Pizzeria Owner Sentenced to Two Years in Prison for COVID FraudRead the Press Release
BOSTON – A former North Shore resident was sentenced today in connection with filing fraudulent applications for more than $660,000 in Paycheck Protection Program (PPP) loan funds and using those funds for personal expenses, including the purchase of an alpaca farm in Vermont.
Dana L. McIntyre, 59, of Grafton, Vt. and previously of Beverly and Essex, Mass., was sentenced by U.S. District Court Judge Denise J. Casper to two years in prison and three years of supervised release. McIntyre was also ordered to pay $679,156 in restitution and forfeiture. On April 13, 2023, McIntyre pleaded guilty to four counts of wire fraud and three counts of money laundering.
“Make no mistake about it, this was no momentary lapse in the fog of the pandemic. Mr. McIntyre submitted multiple bogus applications for pandemic money was supposed to provide a lifeline to small businesses and their employees during a national emergency. He stole from the American taxpayers and the many small businesses which truly needed those loans to survive,” said Acting United States Attorney Joshua S. Levy. “Just last month our office expanded the resources dedicated to investigating and prosecuting COVID fraud. Whether someone used stolen money to buy luxury goods or fancy cars or exotic farm animals, we intend to find them and hold them accountable.
“Dana McIntyre capitalized on a national catastrophe and stole hundreds of thousands of dollars from a limited pool of money set aside to help struggling businesses, to buy a farm, stock it with alpacas, and make a fresh start for himself in Vermont,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence holds him accountable for his selfish criminal conduct. The FBI will continue to aggressively pursue others like him who are using the money from this economic relief program to pad their own pockets. If you know of similar instances of fraud, please contact us at 1-800-CALL-FBI.”
“The funds made available through the Paycheck Protection Program were intended to help businesses and their employees get through the financial hardships caused by the COVID-19 pandemic. Instead, Mr. McIntyre’s greed betrayed the good intentions of the American taxpayer,” said Special Agent in Charge Christina Scaringi with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG). “The sentencing today should serve as a reminder that if you defraud pandemic-related government assistance programs, you will be held accountable. HUD OIG will continue to work with its law enforcement partners and the U.S. Attorney’s Office to bring these matters to a just conclusion.”
McIntyre is the former owner of Rasta Pasta Pizzeria in Beverly. In March 2020, McIntyre used the names of his adult children to submit two fraudulent applications to the U.S. Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL) for businesses that did not exist. Beginning in April 2020, McIntyre submitted an application and weekly certifications in order to receive Pandemic Unemployment Assistance (PUA) benefits. In these filings, McIntyre falsely claimed that he was not working or receiving income as a result of the pandemic, while McIntyre in fact was still operating the restaurant and paying himself income from the business. By September 2020, when McIntyre sold the restaurant, he had received over $17,000 in PUA and related benefits that he was not entitled to receive.
In April 2020, McIntyre submitted a fraudulent application for a PPP loan of over $660,000 through an SBA-approved lender. In the application, McIntyre inflated information about the pizzeria’s employees and payroll expenses and falsified an official tax form in an effort to qualify the business for a larger loan amount. After receiving a PPP loan of over $660,000, McIntyre sold the pizzeria and used nearly all the funds to purchase a farm in Vermont, as well as eight alpacas, and other personal expenses, including two vehicles and airtime for his crypto-currency themed radio show.
Acting U.S. Attorney Levy, FBI SAC Cohen, HUG-OIG SAC Scaringi and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys David M. Holcomb and Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit and Carol Head, Chief of the Asset Recovery Unit, prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.
Former Auburn Physician Pays $135,000 and Forfeits DEA Registration, for Overprescribing Controlled SubstancesRead the Press Release
SYRACUSE, NEW YORK – Dr. Jang Boo Chi, formerly a physician in Auburn, and his medical practice, Jang Boo Chi M.D. P.C., have agreed to pay the United States $135,000 in civil penalties for overprescribing opioids and other controlled substances in dangerous combinations. United States Attorney Carla B. Freedman, and Special Agent in Charge Frank A. Tarentino III, U.S. Drug Enforcement Administration (DEA), New York Division made the announcement.
The Settlement Agreement resolves allegations that Dr. Chi wrote prescriptions for non-legitimate medical purposes, outside the usual course of a professional practice, in violation of the Controlled Substances Act. Specifically, the United States alleges that Dr. Chi allowed patient desires to dictate his prescribing decisions instead of his own medical judgment; he prescribed opioids, benzodiazepines, and carisoprodol in a dangerous combination known as the “Holy Trinity”; and he ignored red flags that the controlled substances he prescribed were being diverted for illicit use. Examples of admitted conduct include:
- Dr. Chi prescribed Hydrocodone-Acetaminophen, Diazepam (also known as “Valium”), and Carisoprodol (a muscle relaxant known as “Soma”) to Patient #1, even though drug screens indicated the patient was not taking the prescribed medications, while using MDMA (also known as “Molly” or “Ecstasy”), cocaine, and unprescribed Oxycodone. Patient #1 eventually died of acute intoxication by the combined effects of controlled substances- both prescribed, and unprescribed.
- Dr. Chi prescribed Adderall for Patient #2, to treat Attention-Deficit/Hyperactivity Disorder (ADHD), but the medical records lack a sufficient basis to establish an ADHD diagnosis. At various times, Dr. Chi encouraged Patient #2 to decrease their use of Adderall and to not take it with certain other medication, however when they did not, he continued prescribing it.
- In Patient #3’s case, Dr. Chi prescribed Fentanyl patches, Oxycodone, Percocet, Lorazepam, Lyrica, and Zolpidem, among several other controlled substances. During a hospitalization in 2018, another doctor noted Patient #3 “has a problem with polypharmacy” as they were on more than 20 different medications and supplements. Dr. Chi noted Patient #3’s medications were “heavy,” and that “…I felt too [they] take much medication…” (sic.) Dr. Chi did not further reduce the patient’s medications until September 2021, after the DEA questioned his prescribing practices.
This $135,000 payment constitutes civil penalties under the Controlled Substances Act.
Dr. Chi has surrendered his DEA registration, and, as part of the civil settlement, agreed not to seek a renewal for at least 15 years.
This case was investigated by DEA Albany District Office’s Diversion Group, with assistance from the DHHS Office of Inspector General’s New York Region, the New York State Department of Health, Bureau of Narcotic Enforcement, and the Auburn Police Department.
Assistant U.S. Attorney Christopher Moran represented the United States in this matter.
Former Allegheny County Resident Sentenced to 36 Months in Prison for Conspiring to Distribute a Controlled SubstanceRead the Press Release
PITTSBURGH, PA – David Curran was sentenced to 36 months in prison for conspiring to distribute a controlled substance in 2017 and 2018 while serving a federal prison sentence for a prior drug trafficking conviction, United States Attorney Eric G. Olshan announced today.
Curran, age 40, formerly of Allegheny County, Pennsylvania, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan ordered Curran to serve six years of supervised release following his prison sentence. Judge Ranjan also ordered that the 36-month prison sentence be served consecutively to Curran’s prior sentence.
Curran was convicted at the conclusion of a trial in June 2022. Curran was serving a federal prison sentence in 2017 and 2018 following a federal conviction for prior large-scale cocaine trafficking. Despite his prior conviction and incarceration, he continued to engage in drug trafficking while in federal prison. He conspired to distribute K2 paper saturated with powerful Schedule I synthetic cannabinoid controlled substances. The K2 paper endangered other inmates and corrections officers and burdened them with the effects of frequent lockdowns, overdoses, assaults, and other volatile behavior. While pending trial following his indictment, Curran engaged in repeated incidents of misconduct at local detention facilities, including attempting to bribe a corrections officer.
Assistant United States Attorneys Rebecca L. Silinski and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
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.
Five L.A. County Residents Charged in Complaints Alleging They Arranged to Rob Online Sellers of Apple Electronic ProductsRead the Press Release
LOS ANGELES – Four men and one woman from Los Angeles County have been charged in federal criminal complaints alleging they committed nearly 200 thefts, robberies and fraudulent transactions targeting individual sellers of Apple Inc. merchandise who used online marketplaces, the Justice Department announced today.
Law enforcement on Tuesday arrested three defendants who were charged in a criminal complaint filed last week. The three are charged with Hobbs Act robbery – which carries a statutory maximum sentence of 20 years in federal prison – and are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles:
- Jamari Deon Turner, 21, of Lawndale;
- Jerome Joseph, 25, of South Los Angeles; and
- Tyler Russell, 22, of Lawndale.
Two other defendants – Kesai Doss, 23, of Palmdale, and Ellis Garrett, 22, of South Los Angeles – are in state custody. They are charged in a separate criminal complaint filed last week with wire fraud – a crime that also is punishable by up to 20 years in federal prison – and are expected to appear in federal court in the coming weeks.
According to affidavits filed with the complaints, from February 2018 until at least June 2020, law enforcement identified nearly 200 incidents of theft, robbery and fraud targeting victims using online marketplaces such as Craiglist and Facebook Marketplace. Most of the incidents occurred in Inglewood, Paramount, Long Beach, and downtown Los Angeles.
Most of these crimes consisted of the defendants arranging a meeting place via an online marketplace to buy Apple products – phones, laptop computers or other electronic devices, the affidavit states. Once there, the defendants allegedly asked to inspect a device and the victims would take a photo of the defendants at that time. On other occasions, the defendants snatched the device from the victim and fled. The defendants allegedly frequently ran through apartment buildings to escape from victims, using accomplices to lock the victims out of the buildings by closing security gates.
If the victims pursued them, the defendants allegedly threatened, attacked or brandished a firearm to deter them. Many of the transactions have been linked through common phone numbers, email addresses or online accounts, according to the affidavit.
Doss and Garrett allegedly were the most prolific thieves of the individuals charged. Multiple victims allegedly identified Doss as the person who stole their electronic devices. Doss and Garrett’s phones allegedly were used to arrange fraudulent meetings, their online marketplace accounts were used to set up the frauds, and they sold the stolen goods to a buyer.
Separately, Turner, Joseph, and Russell allegedly engaged in similar behavior and also sold their victims’ stolen electronic devices to a buyer.
For example, in June 2020, a victim met Turner, Joseph and Russell at the victim’s home to sell a MacBook computer he had been offered for sale on Craiglist, according to the affidavit. At the meeting, Joseph and Russell allegedly exited their vehicle, pointed a handgun at the victim, and stole the victim’s computer and iPhone. Less than one hour later, the trio sold the victim’s MacBook and iPhone to a buyer, the affidavit states.
In total, the affidavits identify approximately 196 incidents occurring between February 2018 and June 2020.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI, the Inglewood Police Department, and the Los Angeles Police Department are investigating this matter.
Assistant United States Attorney Kevin J. Butler of the Violent and Organized Crime Section is prosecuting this case.
Five Charged in Alleged Firearms Trafficking and Money Laundering Conspiracy to Smuggle Guns Illegally to MexicoRead the Press Release
RALEIGH, N.C. – U.S. Attorney Michael Easley today announced that multiple charges, including conspiracy, money laundering, firearm trafficking, straw purchasing and making false statements to firearms dealers, have been brought against five individuals for their role in an alleged conspiracy to smuggle guns purchased in Eastern North Carolina to Mexico. To date, 17 firearms, most of which were AK-47 style rifles, have been seized. Four of the five individuals are in custody following an indictment handed down by a federal grand jury late last month.
“The Bipartisan Safer Communities Act allows us to investigate and prosecute gun trafficking and straw purchasing rings that drive the flow of guns from the United States to Mexico, often fueling cartel violence in that country while enabling the fentanyl crisis here at home,” said U.S. Attorney Michael Easley. “Those who engage in international gunrunning conspiracies based in North Carolina will meet justice in our courts.”
“The impact of straw purchasing and firearms trafficking is rarely limited to a single community or city,” said Acting Special Agent in Charge Brian Mein. “Those that knowingly put firearms in the hands of violent and dangerous individuals are a threat to all of us.”
“We are committed to collaborating with our law enforcement partners to investigate, disrupt and dismantle transnational criminal organizations that are responsible for the illicit export of firearms that fuel violence across our southern border,” said Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) - Charlotte that covers North and South Carolina. “This indictment sends a strong message to weapon smugglers that law enforcement will work aggressively with the United States Attorney’s Office to combat this egregious and dangerous activity and bring those involved to justice.”
According to the indictment:
- Cortney Highsmith, age 43 of Garland, has been charged with conspiracy to make a false statement to a federally licensed firearms dealer, five counts of making false statements to a federally licensed firearms dealer, straw purchasing firearms, and trafficking firearms. Highsmith faces up to 15 years imprisonment if convicted.
- Luis Martinez, age 29 of Roseboro, has been charged with conspiracy to make a false statement to a federally licensed firearms dealer, trafficking firearms, smuggling goods from the United States, money laundering conspiracy, and alien in possession of a firearm. L. Martinez faces up to 20 years imprisonment if convicted. L. Martinez is the sole defendant yet to be arrested.
- Steven Martinez, age 26 of Tarheel, has been charged with conspiracy to make a false statement to a federally licensed firearms dealer, two counts of making false statements to a federally licensed firearms dealer, and straw purchasing firearms. S. Martinez faces up to 15 years imprisonment if convicted.
- Roberto Martinez, age 23 of Roseboro, has been charged with trafficking firearms and money laundering conspiracy. R. Martinez faces up to 20 years imprisonment if convicted.
- Gilberto Hernandez, age 28 of Selma, has been charged with smuggling goods from the United States and money laundering conspiracy. G. Hernandez faces up to 20 years imprisonment if convicted.
The indictment alleges Highsmith and Steven Martinez purchased multiple firearms from federally licensed firearms dealers between January 27, 2023, and February 7, 2023, certifying that they were the “actual transferee/buyer” of the firearm, but later transferred the firearms to Luis Martinez, who is not a legal citizen of the country and is, therefore, prohibited from owning firearms. It is alleged Luis Martinez then conspired with Roberto Martinez, Highsmith and Hernandez to transport the guns to Mexico. The firearms purchased by Highsmith and Steven Martinez were intercepted by U.S. Customs and Border Protection Officers on February 19, 2023, at the Del Rio, Texas port of entry. The vehicle carrying the guns was traveling to Durango, Mexico.
This case is being prosecuted 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.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Bureau of Alcohol, Firearms, Tobacco and Explosives and Homeland Security Investigations are investigating the case and Assistant U.S. Attorneys Julie A. Childress and Chad Rhoades are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-cr-00241-BO.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
El Salvadoran National Pleads Guilty to Illegal Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Elian David Vasquez-Lopez, age 23, of El Salvador, entered a guilty plea to Possession of a Firearm and Ammunition by an Illegal Alien.
The Indictment alleged that on July 17, 2023, Vasquez-Lopez, knowing he was an illegal alien unlawfully in the United States, unlawfully possessed a firearm and ammunition.
During a July 17, 2023, traffic stop, law enforcement discovered Vasquez-Lopez in possession of a 9mm C9 pistol and ammunition.
The charges arose from an investigation by the Kiowa Police Department, the Department of Homeland Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea, and ordered the completion of a presentence investigation report. Vasquez-Lopez was remanded to the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Richard Lorenz represented the United States.
Dulce Man Pleads Guilty to Domestic Assault by a Habitual Offender and AssaultRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico announced today that Matthew Vicenti pleaded guilty to domestic assault by a habitual offender and assault by an intimate partner by strangling, suffocating or attempting to strangle or suffocate. Vicenti, 33, of Dulce, New Mexico, and an enrolled member of the Jicarilla Apache Tribe, will remain in custody pending sentencing, which has not been scheduled.
According to court documents, from Dec. 26 to Dec. 28, 2021, Vicenti confined and assaulted his intimate partner and the mother of his children, Jane Doe, in their home. On Dec. 28, 2021, when law enforcement knocked on Vicenti’s front door, Vicenti covered Jane Doe’s mouth with one hand and choked her with the other in order to keep her from calling for help. Officers heard Jane Doe’s cries and kicked in the front door, at which point Vicenti ran and hid in a closet.
At the time, Vicenti had been convicted previously on at least two occasions in Tribal court of offenses against a spouse and intimate partner.
At sentencing, Vicenti faces up to 15 years in prison.
The Jicarilla Apache Police Department investigated this case. Assistant United States Attorney Kimberly Bell is prosecuting the case.
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Drug Dealer Who Received Methamphetamine by Mail Sentenced to Two Decades in Federal PrisonRead the Press Release
A man on supervised release from a prior drug conspiracy conviction involving methamphetamine was sentenced on August 29, 2023, to 20 years in federal prison for participating in another drug conspiracy.
Justin Lee Hanawalt, age 34, from Mason City, Iowa, received the prison term after a February 9, 2023 guilty plea to one count of conspiracy to distribute a controlled substance after having previously been convicted of a serious drug felony.
Evidence at the sentencing hearing showed that Hanawalt had packages sent to his residence in Waterloo, Iowa, containing “ice” methamphetamine from his source of supply in California. After he was caught, Hanawalt continued to find alternative suppliers to provide him with controlled substances. Hanawalt was on federal supervised release for a previous methamphetamine related conviction during this time. While in custody for this offense, Hanawalt smuggled controlled substances into the jail and distributed those substances to other inmates.
Hanawalt was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hanawalt was sentenced to 240 months’ imprisonment. He must also serve a ten-year term of supervised release after the prison term. He was also sentenced to a consecutive term of 33 months’ imprisonment for violating the conditions of his supervised release for his prior federal conviction. There is no parole in the federal system.
Hanawalt is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Nicole L. Nagin, and it was investigated by the United States Postal Inspection Service, the Waterloo Police Department, the Black Hawk County Sherriff’s Office and the Tri-County Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR- 2065.
Follow us on Twitter @USAO_NDIA.
Current and Former Wayne County Sheriff’s Deputies Charged with 12 Counts of Fraud in Bid Rigging SchemeRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an Indictment on August 17, 2023, against one current and one former Wayne County Sheriff’s deputy.
According to the Indictment, Michael Kenneth Cox, age 48, and Christopher C. Worth, age 52, were each indicted on 12 separate fraud charges stemming from an alleged scheme undertaken by Worth and Cox to steer contracts for upfits of Wayne County Sheriff’s Office (WCSO) vehicles to a business owned by Cox and employing Worth, regardless of whether Cox’s company provided such work at the lowest price as required by the Wayne County procurement requirements. Cox was employed by the WCSO from 1996 until he retired as the head of the Drug Unit in 2018. Worth joined the WCSO in 1993 and currently serves as a Major overseeing all of WCSO criminal enforcement sections and WCSO’s Support Services.
In addition to the fraud charges, Cox was indicted for conspiring with multiple drug traffickers to distribute and possess with the intent to distribute cocaine and oxycodone and two counts of making false statements to the Federal Bureau of Investigation (FBI).
“Law enforcement officers take an oath to protect and serve our communities by upholding the rule of law,” said U.S. Attorney Michael Easley. “Our office will continue to hold accountable those who violate the public trust and abuse their position for personal gain.”
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) are investigating the case and Assistant U.S. Attorneys Dennis Duffy and Nick Hartigan are prosecuting the case.
Related court documents and information can be found on the website of
the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-260.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty.
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US vs Michael Kenneth Cox and Christopher C. WorthConvicted Sex Offender and Domestic Abuser Sentenced to over 5 Years in Federal Prison After Being Caught with FirearmRead the Press Release
INDIANAPOLIS- Shaylor Goer, 47, of Indianapolis, Indiana, has been sentenced to 5 years and 3 months in federal prison after pleading guilty to illegally possessing a firearm.
According to court documents, on March 31, 2022, IMPD officers were dispatched to Dearborn Street in Indianapolis, Indiana at 6 a.m. to investigate complaints of a suspicious individual. Upon arrival, officers saw Goer and requested that he stop. Goer did not comply, and instead ran down an alley, leading officers on a brief foot chase. Goer was eventually stopped and arrested. During a search of Goer’s person, officers found an empty gun holster on his hip. Officers searched the surrounding area and found a Kimber .45 caliber semiautomatic firearm on top of a trash can, belonging to Goer.
Goer is prohibited by federal law from ever possessing a firearm due to his fourteen previous felony convictions including two counts of failure to register as a sex or violent offender, two counts of domestic battery, aggravated criminal sexual abuse of a minor between the age of 13-17, manufacture/distribution of a look-alike substance, unlawful possession of a syringe, possession of cocaine, and burglary.
United States Attorney for the Southern District of Indiana, Zachary A. Myers, Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, and IMPD Chief Randal Taylor made the announcement.
“Individuals with a history of violence and criminal activity should never be able to get their hands on a firearm,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “Under the L.E.A.T.H initiative, it is a priority of our office, IMPD, and ATF to weed out those who pose the highest risk to those closest to them and the community as a whole. Holding dangerous, repeat offenders accountable for illegally possessing firearms is a critical part of this initiative.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indianapolis Metropolitan Police Department investigated this case. The sentence was imposed by U.S. District Court Judge, James R. Sweeney. Judge Sweeney also ordered that Goer be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jeremy C. Fugate, who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
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Colorado Couple Sentenced for Possession with Intent to Distribute FentanylRead the Press Release
Joseph David Hylton, age 23, of Arvada, Colorado, and Dana Clair Koch, age 23, of Centennial, Colorado, were sentenced on August 25, 2023, for possession with intent to distribute fentanyl. Hylton was sentenced to 51 months’ imprisonment and Koch was sentenced to 34 months’ imprisonment. Chief United States District Court Judge Scott W. Skavdahl imposed the sentences, each of which included three years of supervised release following imprisonment and $500 community restitution.
According to court documents, on December 3, 2022, a Wyoming Highway Patrol trooper attempted to pull over a pickup truck speeding on Interstate I-25 southbound near mile marker 10 in Laramie County, Wyoming. Instead of stopping, the driver sped up and attempted to elude the trooper. The high-speed pursuit came to an end at Exit 4 where the truck went the wrong way off the exit and struck another vehicle before going down a hill. Defendants Hylton and Koch then ran from the vehicle. Koch stopped when commanded. Hylton continued running through a field and was later apprehended trying to hitch a ride on the interstate. Investigators found 370 fentanyl pills in the defendants’ pickup truck, which was stolen. A cell phone search revealed text messages consistent with the distribution of fentanyl pills. The defendants were indicted in March 2023 and pled guilty in June.
This crime was investigated by the Wyoming Highway Patrol and the Wyoming Division of Criminal Investigation. Assistant United States Attorney Timothy J. Forwood prosecuted the case.
Case No. 23-cr-00028-SWS
Chicago Man Sentenced for Cocaine and Heroin DistributionRead the Press Release
A man who distributed cocaine and heroin near Loras College in Dubuque, Iowa, in 2017 and 2018 was sentenced August 29, 2023, to seven years in federal prison.
Malcolm Thornton, age 33, from Chicago, Illinois, received the prison term after a January 23, 2023 guilty plea to one count of possession with the intent to distribute cocaine.
In a plea agreement, Thornton admitted he was involved in selling cocaine and heroin out of a house near Loras College during 2017 and 2018. Ultimately, Thornton and others were traveling back to Dubuque from Chicago on January 23, 2018, with over 300 grams of cocaine when they were stopped by members of the Dubuque Drug Task Force.
Thornton was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Thornton was sentenced to 84 months’ imprisonment and must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system. Thornton is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick Reinert and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Federal Bureau of Investigation, the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Dubuque Drug Task Force comprised of the Dubuque County Sheriff’s Office and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-01021.
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Chicago Felon Sentenced to over Two Years in Prison for Possessing a GunRead the Press Release
A Chicago man who fired a gun into the air was sentenced August 29, 2023, to more than two years in federal prison.
Ivan Jerome Berry, age 39, from Chicago, Illinois, received the prison term after an April 14, 2023 guilty plea to possession of a firearm by a felon.
Evidence at the plea hearing and sentencing hearing showed that in October 2022, Berry fired a gun into the air approximately four times. This occurred at night near an apartment complex. There were people in the area at the time who heard the shots. There were no injuries or damage reports. Berry is a felon and is prohibited from possessing firearms. He has nine prior adult criminal convictions.
Berry was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Berry was sentenced to 27 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorneys Liz Dupuich and Ashley Corkery and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Explosives and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-1004-LTS.
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Central Coast Health Care Provider Agrees to Pay $5 Million for Alleged False Claims to California’s Medicaid ProgramRead the Press Release
LOS ANGELES – Lompoc Valley Medical Center (LVMC), a California Health Care District that operates multiple health care providers, including a hospital and several clinics, has agreed to pay $5 million to resolve allegations that it violated the federal False Claims Act and the California False Claims Act by causing the submission of false claims to Medi-Cal related to Medicaid Adult Expansion under the Patient Protection and Affordable Care Act (ACA).
With this and several prior settlements, the United States now has recovered $95.5 million in connection with this investigation of entities in Santa Barbara and San Luis Obispo counties. CenCal, Cottage Health System, Sansum Clinic, and Community Health Centers of the Central Coast previously paid $68 million, and Dignity Health and Twin Cities Community Hospital and Sierra Vista Regional Medical Center, two subsidiaries of Tenet Healthcare Corporation previously paid $22.5 million, to settle similar False Claims Act allegations.
Pursuant to the ACA, beginning in January 2014, Medi-Cal was expanded to cover the previously uninsured “Adult Expansion” population – adults between the ages of 19 and 64 without dependent children with annual incomes up to 133% of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program.
Under contracts with California’s Department of Health Care Services (DHCS), Santa Barbara San Luis Obispo Regional Health Authority, doing business as CenCal Health (CenCal), arranged for the provision of health care services as a county organized health system under California’s Medicaid program (Medi-Cal) in Santa Barbara and San Luis Obispo counties by contracting with providers such as LVMC to provide health care services to Medi-Cal patients. Under its contractual arrangement with DHCS, CenCal received funding to serve the Adult Expansion population. If CenCal did not spend at least 85% of the funds it received for the Adult Expansion population on “allowed medical expenses,” CenCal was required to pay back to the state the difference between 85% and what it actually spent. California, in turn, was required to return that amount to the federal government.
The settlement resolves allegations that LVMC knowingly caused the submission of false claims to Medi-Cal pursuant to agreements executed by LVMC with CenCal for “Enhanced Services” that LVMC purportedly provided to Adult Expansion Medi-Cal members between January 1, 2014 and June 30, 2016. The United States and California alleged that LVMC claimed and received payments pursuant to those agreements that were not for “allowed medical expenses” permissible under the contract between DHCS and CenCal, were pre-determined amounts that did not reflect the fair market value of any Enhanced Services provided by LVMC, and/or the Enhanced Services were duplicative of services already required to be rendered by LVMC. The United States and California further alleged that the payments were unlawful gifts of public funds in violation of the California Constitution.
“This resolution underscores our steadfast resolve to hold accountable health care providers that seek to undermine the integrity of the Medicaid program,” said U. S. Attorney Martin Estrada. “We will ensure that the nearly $100 million recovered in this case remains in government health care programs, and not in the hands of unscrupulous health care systems and providers.”
“The Medicaid program provides critical health care services to those most in need,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold providers accountable when they knowingly divert Medicaid funds from their intended purpose.”
“Federal health care programs are intended to ensure that millions of Americans have access to high quality, medically necessary care,” said Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Protecting federal health care funds from fraud, waste, and abuse is at the center of HHS-OIG’s mission, and we are committed to ensuring that these valuable resources are available to patients as intended.”
“Medi-Cal supports millions of Californians by providing for the critical healthcare they rely on every day,” said California Attorney General Bonta. “When providers misuse Medi-Cal funding, they siphon away much-needed resources from vulnerable, deserving patients. My office always stands ready to partner with the U.S. Department of Justice to hold such perpetrators accountable. The California Department of Justice is committed to protecting the integrity of the Medi-Cal program against those who may seek to abuse it.”
The civil settlement includes the resolution of claims brought under the qui tam, or “whistleblower,” provisions of the False Claims Act by Julio Bordas, CenCal’s former medical director. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States and State of California ex rel. Bordas v. Lompoc Valley Medical Center, et al., (15-cv-09834, C.D. Cal.). Dr. Bordas will receive approximately $950,000 as his share of the federal recovery from the LVMC settlement.
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the Central District of California; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; and the California Department of Justice. HHS-OIG and DHCS provided substantial assistance.
The investigation of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Assistant United States Attorney Jack D. Ross of the Civil Fraud Section and Justice Department Trial Attorneys Mary Beth Hickcox-Howard and Tiffany L. Ho of the Civil Division’s Commercial Litigation Branch, Fraud Section handled this case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Columbia Woman Pleads Guilty to Defrauding North Carolina CompanyRead the Press Release
NASHVILLE – Sonya White, 56, of Columbia, Tennessee pleaded guilty today in U.S. District Court to defrauding a North Carolina clinical laboratory company out of nearly $400,000, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
White admitted that she defrauded the clinical laboratory company, identified in court documents as “Company A,” by creating a fictitious vendor named “Mid TN Diagnostics.” Between March 2017 and June 2019, White caused Mid TN Diagnostics to submit fraudulent invoices for payment to Company A. In total, the fraudulent invoice scheme caused Company A to lose approximately $389,620.
Furthermore, White admitted that, when the grand jury issued a subpoena to Mid TN Diagnostics, she caused the company to provide falsified documents to the grand jury.
White’s sentencing has been set for February 2, 2024. She faces up to 20 years’ imprisonment and a fine of up to $250,000. In addition to any fine, White has agreed to the entry of a forfeiture money judgment against her in the amount of $389,620.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Taylor J. Phillips is prosecuting the case.
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Arizona man sentenced to prison for trafficking fentanyl, meth and heroin in Great FallsRead the Press Release
GREAT FALLS — An Arizona man who admitted to trafficking fentanyl, methamphetamine and heroin in the Great Falls community and to failing to appear after absconding before a jury trial was sentenced yesterday to seven years in prison, to be followed by three months of supervised release, U.S. Attorney Jesse Laslovich said today.
Jose Manuel Villalobos Medina, 28, pleaded guilty in April to possession with intent to distribute controlled substances and to failure to appear.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that in March 2020, drug task force officers in Great Falls began investigating suspected drug trafficking at a local hotel. Officers saw Medina, a guest at the hotel, leave the hotel and drive an SUV across town to a restaurant parking lot where he left the SUV and got into a sedan. Law enforcement ultimately made a traffic stop of the sedan and arrested a passenger, who attempted to conceal a meth pipe, for possession of drug paraphernalia. During a search of the passenger at the detention center, officers located a gallon-sized bag in the passenger’s crotch area that contained heroin, fentanyl pills and meth. Officers also detained Medina. During a pat-down search of Medina, officers located a large quantity of cash stashed in his crotch area. In a search of Medina’s hotel room, law enforcement found multiple packages of meth, heroin and fentanyl pills, along with a large amount of cash, drug ledgers, paraphernalia and several forms of identification for Medina.
Medina initially pleaded guilty to a charge in December 2020 and then withdrew his plea in April 2021. A jury trial was scheduled for May 2021, but Medina failed to appear and absconded. Medina’s whereabouts remained unknown until November 2022 when he was arrested in New Mexico.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case. The Russell Country Drug Task Force and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Another Person Charged with Fraud Involving the Jefferson County Community Service FundRead the Press Release
BIRMINGHAM, Ala. – An assistant to Representative John Rogers has been indicted by a federal grand jury in connection with schemes to defraud the Jefferson County Community Service Fund, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and Internal Revenue Service, Criminal Investigation Acting Special Agent in Charge Demetrius Hardeman.
A 21-count indictment filed this week in United States District Court charges Varrie Johnson Kindall, 58, of Chelsea, with one count of conspiracy to commit wire and mail fraud, 14 counts of wire fraud, 3 counts of mail fraud, 1 count of money laundering, and 2 counts of obstruction of justice. These charges arise from an investigation of wrongdoing in connection with the Jefferson County Community Service Fund. In June, former Representative Fred L. Plump, Jr., pleaded guilty to conspiring with Kindall and resigned from the Alabama House of Representatives.
According to the indictment, in 2015 the Alabama Legislature passed Alabama Act No. 2015-226 (the “Act”) and authorized the Jefferson County Commission to levy and distribute a one percent sales tax and a one percent use tax to benefit the public welfare and enhance the education of the children of Jefferson County. Jefferson County began levying the new taxes in or about August 2017. The Act required the County to distribute the tax revenue according to certain specified priorities, including paying debt incurred during school construction, increasing the County’s general fund, giving funds to each board of education serving students in the County, and for certain other purposes set forth in the Act.
The Act created the Jefferson County Community Service Fund (the “Fund”), which was subsidized by approximately $3.6 million annually from the new taxes. The Act also created the Jefferson County Community Service Committee (the “Committee”), the four members of which were elected by members of the Jefferson County House and Senate delegations. The Committee was responsible for ensuring that the Fund was used only for the purposes set forth in the Act, which included to support public entities and projects such as schools, libraries, museums, parks, zoos, neighborhood associations, athletic facilities, youth sports associations, road construction, the performing arts, police departments, the sheriff’s office, fire departments, and certain nonprofit entities. Each Representative and Senator representing Jefferson County could make recommendations to the Committee of expenditures from their allotted amount of the Fund. These recommendations were made on a form created by the Committee that required certain certifications by the legislator. The organization receiving the funds was required to submit information about the organization and confirm that it intended to use the money for a public purpose. During each fiscal year from 2018 to 2022, each Representative was allocated approximately $100,000 and each Senator was allocated approximately $240,000 from the Fund.
The indictment identifies certain relevant parties. Representative John Rogers was a long-serving member of the Alabama House of Representatives. Fred L. Plump, Jr. served as the Executive Director of the Piper Davis Youth Baseball League (“Piper Davis”), a nonprofit organization that claimed to provide a positive sporting experience for inner city youth in Jefferson County. Defendant Varrie Johnson Kindall was Rogers’ personal and professional assistant. Individual #1 was the Founder of Organization #1.
Between fiscal year 2018 and fiscal year 2022, Representative Rogers was allocated approximately $500,000 by the Fund. Rogers directed approximately $400,000 of those discretionary funds to Piper Davis. In turn, Plump gave approximately $200,000 to defendant Kindall.
The indictment alleges that from in or about March 2019, and continuing through April 2023, Kindall conspired with Plump and others to defraud and obtain money from the Fund. It is alleged that it was part of the conspiracy that Rogers, with Kindall’s assistance, recommended during each fiscal year that most of his allotment of Fund money be paid to Piper Davis. In turn, Plump agreed to pay kickbacks to Kindall. Plump and Kindall submitted false and fraudulent information to the Committee about Piper Davis’ intended use of Fund money. Upon receipt and deposit of Fund checks, Plump gave checks to Kindall for approximately one-half of the amount of Fund money received by Piper Davis. On two occasions Kindall engaged in money laundering by moving large sums of illegally obtained money between bank accounts.
Additionally, the indictment alleges that, in 2019, Kindall committed wire fraud by assisting Rogers in directing Fund money to Organization #1 and then requiring Individual #1 to pay kickbacks to her. The indictment alleges further that, after learning about the federal investigation into the fraud scheme, Kindall attempted to obstruct justice by asking Individual #1 to give false information to federal agents and offering Individual #1 additional grant money as a bribe.
The maximum penalty for the conspiracy and substantive fraud counts is twenty years in prison and a $250,000 fine. The maximum penalty for money laundering is ten years in prison and a $250,000 fine. The maximum penalty for obstruction of justice is twenty years in prison and a $250,000 fine. The maximum penalty for obstruction of justice by bribery is five years in prison and a $250,000 fine.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated the case. Assistant United States Attorneys George Martin and Catherine Crosby are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Akwesasne Man Pleads Guilty to Transporting Six AliensRead the Press Release
ALBANY, NEW YORK – Shane Barnes, age 38, of Akwesasne, New York, pled guilty today to transporting six aliens.
United States Attorney Carla B. Freedman and Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector made the announcement.
In pleading guilty, Barnes admitted that on September 28, 2022, he drove a pickup truck to the riverbank of the U.S. side of the St. Regis River. Shortly after arriving at the riverbank, six aliens emerged from the woods and got into the pickup truck. The defendant then drove the aliens to Hogansburg, NY, and then to Bombay, NY. The defendant further admitted that he expected to be paid for transporting the aliens.
Sentencing is scheduled for January 10, 2024, before United States District Judge David N. Hurd in Utica, New York. Barnes faces up to ten years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Border Patrol. The case is being prosecuted by Assistant U.S. Attorney Rick Belliss.
2 Central Ohio women charged federally for $2.8 million in covid-relief fraudRead the Press Release
COLUMBUS, Ohio – Two Central Ohio women are charged federally with crimes related to fraudulently receiving more than $2.8 million total in covid-relief funds from the Paycheck Protection Program (PPP).
“As Attorney General Merrick Garland recently made clear, while the COVID-19 public health emergency may have ended, our work to identify and hold accountable those who stole pandemic relief funds is far from over,” said U.S. Attorney Kenneth L. Parker. “Working alongside our law enforcement partners, we will continue to prosecute the individuals who engaged in these illegal activities.”
Lorie A. Schaefer, 62, of Westerville, allegedly received nearly $1.9 million in covid-relief funds by fraudulently claiming an affiliation with an Ohio pizza company.
According to court documents, Schaefer opened new bank accounts in December 2020 prior to registering a fictitious business name with the State of Ohio in March 2021.
It is alleged that Schaefer fraudulently claimed affiliation with the Flying Pizza restaurants in Dayton, Centerville and Fairborn. When notified that a PPP loan for nearly $1.9 million had been filed in the name of Flying Pizza, individuals at the family-owned business said their restaurants could not justify such a large loan.
Schaefer claimed to have 98 employees and allegedly submitted altered bank records as part of her application. Schaefer also claimed the business was established in March 2021, even though the original Flying Pizza was established in 1984. Additionally, she claimed not to be under indictment despite having pending theft charges in Meigs County. Schaefer allegedly attached multiple fraudulent documents to her PPP application, including a bank statement, tax records, and a letter from the IRS.
Bank records indicate Schaefer improperly used PPP funds for personal expenses, for example, nearly $26,000 on liposuction, a $10,000 check for a “newborn baby gift,” and more than $900,000 to purchase and renovate a condominium in Westerville. Schaefer also allegedly made purchases at Wayfair, Lamps Plus, Kroger, KFC, Burger King, Arby’s, McDonald’s and Olive Garden. Evidence also suggests Schaefer used the fraud proceeds to purchase vehicles in Ohio and property in Australia for her personal use.
Schaefer allegedly assisted co-defendant Latisha C. Holloway, 42, of Reynoldsburg, in fraudulently receiving more than $980,000 in PPP loans.
Holloway allegedly claimed to own a business called Jaguar Logistics, LLC. Holloway stated on loan application documents that she had 76 employees and had a total gross income of $4.9 million. Her loan application was submitted within a month of Schaefer receiving PPP loans and records indicate Holloway wired Schaefer $180,000 after receiving her own loan money. According to court records, Holloway similarly attached fraudulent documents to her PPP loan, including a bank statement and tax records.
Both defendants allegedly collected unemployment benefits after receiving federal covid-relief funds.
Finally, it is alleged that Schaefer used another individual’s Social Security Number to apply for and receive an additional $20,800 in PPP funds for “LS Associates,” a corporation established by Schaefer.
Schaefer was arrested on Aug. 25 and Holloway was arrested today.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the case, which was investigated by the Federal Bureau of Investigation (FBI) Cincinnati Division and the U.S. Department of Transportation Office of Inspector General as part of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. Assistant United States Attorney David J. Twombly is representing the United States in this case.
Criminal complaints merely contain allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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29 August 2023
United States Attorney Erek L. Barron Announces that the Maryland United States Attorney’s Office Continues the Fight Against Fraud, Waste and Abuse Related to the COVID-19 PandemicRead the Press Release
Baltimore, Maryland – Erek L. Barron, the United States Attorney for Maryland, announced that the U.S. Attorney’s Office continues to prioritize the investigation and prosecution of fraud, waste and abuse relating to pandemic relief enacted by Congress, including fraud involving the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. Attorney General Merrick B. Garland previously selected the Maryland U.S. Attorney’s Office to help lead the U.S. Justice Department’s response to COVID-19 fraud, along with U.S. Attorney’s Offices in California and Miami, Florida.
On August 23, 2023, the Justice Department announced the results of a coordinated, nationwide enforcement action to combat COVID-19 fraud, including federal criminal charges filed against 371 defendants for offenses related to over $836 million in alleged COVID-19 fraud. Deputy Attorney General Lisa Monaco also announced the formation of additional Strike Forces in the New Jersey and Colorado U.S. Attorney’s Offices.
“Maryland’s Strike Force has proven through dedicated resources, partnerships with local, state and federal law enforcement, that those who would steal from American taxpayers are held accountable and our efforts to investigate and prosecute is making a demonstrated difference,” said U.S. Attorney Erek L. Barron. “We cannot, and will not, tolerate those who would take advantage of a global pandemic by stealing funds and defrauding programs intended to help Americans who were suffering during the pandemic.”
Led by senior Assistant United States Attorneys Harry Gruber and Paul Riley as well as specially assigned Fraud and Public Corruption Assistant U.S. Attorneys and support staff, the Maryland Strike Force is one of three Strike Force Teams established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act. The Strike Forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The Strike Forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Since establishing the Maryland COVID-19 Fraud Strike Force in August 2022, the number of pandemic fraud-related criminal investigations and prosecutions has significantly increased. More than 20 defendants have been charged for various offenses with an alleged loss of approximately $40 million. In addition, there are numerous ongoing criminal COVID-19 fraud investigations. Some of our ongoing COVID-19 fraud investigations involve other criminal activity, including those by repeat violent offenders. The Office’s civil enforcement is also quite active, with 19 active civil fraud cases pending with a total of 19 defendants and approximately $30 million in potential loss.
As further commitment to fight pandemic fraud, waste and abuse, the Maryland U.S. Attorney’s Office has also established partnerships with Special Inspector for Pandemic Recovery (SIGPR) General Brian D. Miller. The collaboration with SIGPR allows the U.S. Attorney’s Office and SIGPR to enhance their efforts to combat CARES Act funding fraud, waste and abuse with an emphasis on swift accountability for large-scale and organized fraud schemes. The Maryland U.S. Attorney’s Office has also partnered with the U.S. Department of Labor, Office of Inspector General (DOL-OIG), Office of Investigations. The DOL-OIG partnership includes four DOL-OIG Special Agents working on location in the Maryland U.S. Attorney’s Office, allowing for a quicker response and more comprehensive and coordinated investigations involving CARES Act fraud, waste and abuse and the ability to specifically target suspects of violent crime who are illegally exploiting the CARES Act and other pandemic related programs.
As highlighted below, the Maryland U.S. Attorney’s Office’s efforts to combat COVID-19 related fraud, waste and abuse including schemes targeting the Paycheck Protection Program (“PPP”), Economic Injury Disaster Loan (“EIDL”) program and Unemployment Insurance (“UI”) programs have led to significant results.
Paycheck Protection Program and Economic Injury Disaster Loans Fraud
The PPP and EIDL fraud cases charged federally in Maryland since passage of the CARES Act involve a range of conduct, including many individuals who used shell business entities to fraudulently apply on multiple occasions for benefit funds that they used their personal benefit, such as the purchase of houses, cars, jewelry, high-end electronics and other luxury goods. Some conduct also involves legitimate business owners who inflated their payroll expenses to obtain larger loans than they otherwise would have qualified for, and/or used funds for improper purposes.
For example, in U.S. v. Keon Ball, defendant Ball was sentenced to more than five years in federal prison for a wire fraud conspiracy and aggravated identity theft in relation to multiple identity theft schemes and fraud schemes—including schemes conducted while on probation for a past state fraud conviction and while on pre-trial release in connection with state fraud charges.
Specifically, in June and July 2020, defendant Ball submitted fraudulent PPP loan applications and obtained $256,664 in government-backed PPP funds for purported businesses that did not exist in any legitimate capacity. Included with each application were fraudulent documents, including fabricated Internal Revenue Service forms, that contained false information concerning purported wages paid and purported number of employees of each business. In total, defendant Ball caused a loss of $750,000 and intended losses of over $1,450,000 and used the identifying information of more than 10 victims in connection with his schemes. In addition to his prison sentence, defendant Ball was ordered to pay at least $715,504 in restitution.
Unemployment Insurance Fraud
The CARES Act also expanded states’ ability to provide UI benefits for many workers impacted by the COVID-19 pandemic, including for workers who are not ordinarily eligible for unemployment benefits. Many of the defendants charged in Maryland used the personal identifying information (“PII”) of individuals without their knowledge or permission to fraudulently obtain identity documents and obtain UI benefits.
In U.S. v. Jerry Phillips, twin brothers and co-defendants Jerry and Jaleel Phillips were sentenced to seven years and 30 months in prison, respectively, and were ordered to pay more than $1 million in restitution, for a wire fraud scheme to fraudulently obtain more than $1 million in PPP and EIDL loans, and UI benefits. Defendant Jerry Phillips also pleaded guilty to aggravated identity theft and possession of a machine gun. The Phillips brothers admitted that they created and used fictitious aliases, used the personal identifying information of real people, and used defunct corporate entities or new business entities with no actual business operations to repeatedly obtain EIDL and PPP loans, and UI benefits. Law enforcement also recovered four “ghost guns” during a search of the Phillips’ residence that defendant Jerry Phillips had purchased online. Defendant Jerry Phillips illegally modified one of the ghost guns into a machine gun.
Examples of COVID-19 CARES Act Cases in Maryland
The cases in the chart below highlight that many Maryland U.S. Attorney defendants participated in other fraud schemes, including elder fraud and business email compromise schemes. In addition, a number of defendants possessed illegal firearms, including privately manufactured firearms, commonly called “ghost guns.”
Case
Case number
Program Targeted
Intended Loss to Taxpayer
U.S. v. Reginald Davis**
23-CR-269
PPP
$1,400,000
U.S. v. David Epstein**
23-CR-210
PPP, EIDL
$1,500,000
U.S. v. Denish Sahadevan*
23-CR-191
PPP, EIDL
$2,500,000
U.S. v. Tomeka Glenn and Kevin Davis**
23-CR-027
PPP
$305,854
U.S. v. Ryan E. Dales**
23-CR-026
UI
$25,000
U.S. v. Bearden**
23-CR-023
PPP
$734,609
U.S. v. Mikiyas Kefyalew**
22-CR-382
EIDL
$1,600,000
U.S. v. Yannice Nunez, et. al.**
22-CR-342
PPP
$674,216
U.S. v. Ayaz Qureshi*
22-CR-330
PPP
$250,723
U.S. v. Sherrie Lynne Bryant
22-CR-308
PPP
$419,100
U.S. v. Raissa Kaossele et. al.,**
22-CR-303
EIDL
$475,000
U.S. v. Larry Walker*
22-CR-290
PPP
$262,252
U.S. v. Tyshawna Davis, et. al.,**
22-CR-248
UI
$3,000,000
U.S. v. Alexander Barabash
22-CR-232
PPP
$1,317,352
U.S. v. Dana Hayes, Jr.
22-CR-224
PPP, EIDL
$50,036
U.S. v. Michael Makoge et. al.,*
22-CR-219
UI
$1,600,000
U.S. v. Ahmed Sary**
22-mj-1286
PPP, EIDL
$10,000,000
U.S. v. Ron Elfenbein*
22-CR-146
Medicare
$15,000,000
U.S. v. Mboutchock Kabiwa*
22-CR-109
EIDL, Medicaid
$3,500,000
U.S. v. Jerry Phillips et. al.,
22-CR-073
PPP, EIDL, UI
$1,235,213
U.S. v. Nichelle Henson**
21-CR-470
PPP, EIDL
$1,835,340
U.S. v. Oluwaseyi Akinyemi
21-CR-454
UI
$486,119
U.S. v. Olaolu Alabi
21-CR-413
UI
$1,500,000
U.S. v. Rudolph Elwood Brooks, Jr. *
21-CR-371
PPP
$3,500,000
U.S. v. Gladstone Njokem et. al.,
21-CR-338
UI
$2,700,000
U.S. v. Brandon Fitzgerald-Holley
21-CR-250
PPP
$305,854
U.S. v. Christopher Guy
21-CR-238
UI
$176,970
U.S. v. Medard Ulysse
21-CR-054
UI
$618,767
U.S. v. Idowu Raji
20-CR-369
UI
$1,793,472
U.S. v. Keon Ball et. al.,
20-CR-248
PPP
$1,500,000
*Defendant(s) is pending sentencing
** Defendant(s) indicted. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.Other COVID-19 Related Fraud Schemes
Additional COVID-19 related cases brought by the Maryland U.S. Attorney’s Office include shutting down fraudulent websites believed to have been used to collect the personal information of individuals visiting the site; the prosecution of health care fraud related to billing of COVID-19 related treatment or testing; and the prosecution of threats against federal officials involved in COVID-19 pandemic policy.
To date, the U.S. Attorney’s Office for the District of Maryland has shut down 17 fraudulent websites which appear to have been used to collect the personal information of individuals visiting the site, in order to use the information for nefarious purposes, including fraud, phishing attacks, and/or deployment of malware. The seized websites were almost identical to the names of authentic U.S. websites, including COVID-19 vaccine manufacturers, retailers, and purported COVID-19 treatment. Several of the seized websites purported to sell vaccines and other treatments for the COVID-19 virus. Often, the fake domains mimicked the stylistic designs and language of the authentic U.S. website. After the seizures, individuals visiting the website see a message that the website has been seized by the federal government and are redirected to another website for additional information.
On August 4, 2023, a federal jury convicted medical doctor Ron Elfenbein for five counts of health care fraud related to the submission of false and fraudulent claims to Medicare and other insurers for patients who received COVID-19 tests at sites operated by the defendant. In total, defendant Elfenbein submitted more than $15 million in claims to Medicare and other insurers for patients who received COVID-19 tests at sites operated by defendant Elfenbein. Sentencing is scheduled for November 7, 2023 at 4:00 p.m.
On August 4, 2022, Thomas Patrick Connally, Jr. was sentenced to 37 months in federal prison for making threats against a federal official, specifically for sending emails threatening harm the then Director of the National Institute of Allergy and Infectious Diseases at the National Institutes of Health (NIH). Defendant Connally further admitted to threatening the Assistant Secretary for Health at the U.S. Department of Health and Human Services, as well as a Massachusetts public health official and a religious leader. Defendant Connally admitted that he sent the threats with the intent to intimidate or interfere with the performance of these public officials’ duties and with the intent to retaliate against these government officials for performing their official duties, including discussing COVID-19 and its testing and prevention.
U.S. Attorney Erek Barron recognized the efforts of a wide range of law enforcement partners for their work in COVID-19 related cases, including the DOL-OIG, the IRS-CI, the FBI, SIGPR, the U.S. Postal Inspection Service, Homeland Security Investigations, the U.S. Secret Service, the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, and the Offices of Inspectors General from SBA, Department of Homeland Security, Social Security Administration, Federal Deposit Insurance Corporation, Department of Health and Human Services, and the Department of Veterans Affairs.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to fight fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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U.S. Attorney’s Office Hosts 30th Annual Four Corners Indian Country Conference in Salt Lake CityRead the Press Release
Salt Lake City, Utah – United States Attorney, Trina A. Higgins, hosted the 30th Annual Four Corners Indian Country Conference in downtown Salt Lake City.
The three-day event, which took place at the Grand America, brought over 200 professionals from the four corner states that are involved in victim services and public safety in tribal communities. Initiated in 1992, the Four Corners Indian Country Conference was designed to focus on prosecution and victims’ issues in Indian Country in the states of Utah, Colorado, Arizona, and New Mexico. The goal of the conference is to discuss strategies and best practices from federal, state, and tribal criminal justice and social service professionals working with victims in tribal communities and how to improve victim services and make tribal communities safer.
USAO-Utah“We were honored to host the Four Corners Indian Country Conference in Utah,” said U.S. Attorney Higgins. “Thank you to the speakers and attendees who traveled from Tribal communities in all four states. We want to especially thank the Ute Tribe for their cultural presentations that were both educational and inspirational.”
Utah is home to eight federally recognized tribes, spread throughout the state. The conference featured speakers, cultural presentations, and a local tribal artist. For more information visit 30th Annual Indian Country Conference.
Next year the conference will be hosted in Durango, Colorado.
U.S. Attorney Jane E. Young Announces Project Safe Neighborhoods Selection Committee AppointmentsRead the Press Release
CONCORD – U.S. Attorney Jane E. Young announces that Bradley J. Russ, Maureen Sullivan, and former Major Joseph M. Ebert have been appointed to serve as the Project Safe Neighborhood’s (PSN) Selection Committee.
“These three individuals will serve as the members of an external panel that will review applications for subawards under the PSN Program,” U.S. Attorney Jane E. Young said. “I am thankful for their willingness to contribute their valuable expertise and perspectives to this process.”
Bradley J. Russ is the Executive Director of the National Criminal Justice Training Center (NCJTC) of Fox Valley Technical College. He previously served as the Chief of Police of the Portsmouth Police Department and the Commander of the Northern New England Internet Crimes Against Children Task Force. He has over 35 years of experience as a national instructor for U.S. Department of Justice (DOJ) funded training programs, and as a member of national DOJ task forces and commissions. Brad Russ holds a Bachelor of Arts from the University of New Hampshire and is a graduate of the FBI’s National Academy and Law Enforcement Executive Development training programs.
Maureen “Moe” Sullivan is the Executive Director of the Child Advocacy Center of Rockingham County (CACRC). Maureen serves on a variety of committees, including the state advisory committee for the New Hampshire Police Academy and the Rockingham County Chiefs Association (RCCA). She is a former adjunct instructor at the University of New Hampshire’s Peter T. Paul School of Business and Economics, a 2004 graduate of Leadership Seacoast, and former board member of the Portsmouth Rotary Club. She also volunteers with local organizations to include the Rotary District 7780 Opioid Recovery Initiative and Portsmouth Community Coordinated Response to Substance Misuse Disorder. Maureen holds a Doctorate of the Arts in Leadership Studies from Franklin Pierce University, a Master’s in Business Administration from Southern New Hampshire University.
Former Major Joseph M. Ebert served in the New Hampshire State Police from 2002-2023. During his time in the State Police, Joe served in a variety of roles to include as: a Trooper assigned to Troop-A; a Field Training Officer; a Drug Recognition Expert; a member of the Crisis Negotiation Team; a Sergeant, Lead Homicide Detective, and Commander in the Major Crime Unit; Director of the New Hampshire Information and Analysis Center; and a Captain in the Investigation Services. In 2022, he was promoted to Major and Commander of the Investigative Services Unit (ISB). As the Commander of the ISB, Major Ebert oversaw the Narcotics Investigations Unit, the Major Crime Unit, the Polygraph Unit, the Special Investigations Unit and the Terrorism and Intelligence Unit. During his tenor as Major, he also acted as, among other roles, a legislative liaison and grant overseer. Joe earned his Master of Science degree in Industrial/Organizational Psychology from Springfield College in 2001.
PSN is a nationwide initiative that brings together federal, state, local, tribal, and territorial law enforcement officials, prosecutors, community-based partners, and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories.
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Three Kokomo Men Sentenced to Federal Prison After Heist of over $200,000 from Armored Truck Aided by Inside ManRead the Press Release
INDIANAPOLIS- Keith Martin, 43, Edwin Sims, 31, and James Alexander, 36, of Kokomo, Indiana, have all been sentenced to federal prison after pleading guilty to a coordinated bank theft of $204,918. Edwin Sims also pled guilty to possession with intent to distribute cocaine.
According to court documents, on November 16, 2021, at approximately 2: l7pm, officers with the Kokomo Police Department (KPD) responded to a bank near West Jefferson Street after the armed robbery of a Garda armored truck. Upon arrival, officers spoke to the driver of the armored truck, Keith Martin, who stated that while an employee went into the bank to service the ATM, an armed robber, later determined to be Edwin Sims, entered the back of the Garda truck. Sims approached Martin and took his firearm and cell phone, then stole $204,918 in cash from the armored truck. Sims fled the scene in a red Cadillac driven by co-conspirator, James Alexander.
While investigating the robbery, officers received additional video from inside the armored truck for the entire day of November 16th. At two different stops prior to the robbery, Martin can be seen on his phone, as the same red Cadillac drives past the armored truck.
When Sims entered the truck, Martin immediately leaned to the left, making it simple to remove his firearm. Martin handed his cell phone and firearm to Sims, without any coercion. Investigators obtained a search warrant for the cell phone records of Martin and discovered that Martin had made several calls with James Alexander prior to the robbery.
On November 30, 2021, FBI agents arrested Alexander on an outstanding warrant for Criminal Recklessness. During an interview with investigators, Alexander stated that after the bank theft, the trio met at a Motel 6 to split the money and give Martin his cell phone back.
On December 1, 2021, Martin was arrested while driving a GMC Yukon. FBI agents recovered $32,278 in a shoebox and a Glock 19 inside the vehicle. An additional search of the red Cadillac used in the getaway was also conducted, uncovering $35,387 inside a backpack.
On December 8, 2021, officers attempted to arrest Sims in Indianapolis. Sims fled but was taken into custody at East l6th Street and Campbell Avenue. Officers located 17.9 grams of cocaine base and 52 grams of cocaine individually bagged for sale next to Sims at the time of his arrest.
Keith Martin was sentenced in July 2023 to seven months in federal prison. Edwin Sims was sentenced in March 2023 to 12.5 years’ imprisonment. James Alexander was sentenced in August 2023 to 27 months’ imprisonment. The three defendants were each ordered to pay $135,792.85 in restitution.
“This brazen conspiracy was quickly unraveled by the outstanding investigative efforts of the FBI, Kokomo Police, and DEA,” said U.S. Attorney Zachary A. Myers. “Federal prosecutors and law enforcement agencies will continue to prioritize working with our local partners to address violent crime in our communities. The convictions and sentences in this case demonstrate that that these serious crimes carry serious consequences.”
“The FBI is committed to investigating violent crime and pursuing those who commit these offenses which this sentence clearly demonstrates,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The rapid response and outstanding investigative work by the FBI, the Kokomo Police Department, and the DEA ensured these three defendants are behind bars where they belong.”
The Federal Bureau of Investigations, Kokomo Police Department, and the Drug Enforcement Administration investigated this case. The sentences were imposed by U.S. District Court Judge, James R. Sweeney. Judge Sweeney also ordered that Martin, Sims, and Alexander be supervised by the U.S. Probation Office following their release from federal prison for 2, 3, 3, years respectively.
U.S. Attorney Myers thanked Assistant United States Attorney Peter A. Blackett, who prosecuted this case.
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St. Louis Man County Man Arrested in Connection with 2022 CarjackingRead the Press Release
ST. LOUIS – A man accused of a July 2022 carjacking has been arrested and appeared in U.S. District Court in St. Louis Tuesday.
La’Vontray Hayes-Williams, 19, of Jennings, was indicted on Nov. 16, 2022 on one count of carjacking and one count of brandishing a firearm in furtherance of a crime of violence. He was arrested August 24, 2023 and pleaded not guilty Tuesday.
The indictment accuses Hayes-Williams of stealing a 2018 Nissan Sentra on July 7, 2022 in St. Louis County. A motion seeking to have Hayes-Williams held in jail until trial says the St. Louis County Police Department quickly spotted the car after the victim ran to a nearby gas station and called police. Hayes-Williams was caught after a chase that reached speeds of 112 mph and found with a .45-caliber Glock pistol in his satchel, the motion says.
The carjacking charge is punishable by up to 15 years in prison, a $250,000 fine, or both. The firearm brandishing charge carries a mandatory minimum sentence of seven years, consecutive to all other charges, and a maximum of life in prison.
Hayes-Williams also faces charges in St. Louis County Circuit Court.
Charges set forth in an indictment are merely accusations and are not proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The St. Louis County Police Department investigated the case. Assistant U.S. Attorney Nino Przulj is prosecuting the case.
St. Louis County Woman Admits Fraudulently Buying Two Cars and Leasing a HomeRead the Press Release
ST. LOUIS – A woman from St. Louis County, Missouri on Tuesday admitted using others’ identities to buy two cars and lease a home.
Amia Hill, 26, pleaded guilty in U.S. District Court in St. Louis to two counts of wire fraud. She also helped someone else fraudulently obtain a $6,500 loan, causing total losses of between $40,000 and $95,000.
On Dec. 13, 2021, Hill used the name and personal information of someone identified in the plea agreement as “S.A.” to buy a Dodge Charger for $29,989. On March 18, 2022, she did the same thing, using a different person’s name and information, to buy a $35,800 Dodge Durango.
On March 7, 2022, Hill used S.A.’s information to lease a home in the 3500 block of Park Chateau Lane in Florissant. She lived there until July 1, 2022, costing the landlord $5,768.
Hill also helped a woman obtain a $6,500 loan from First Community Credit Union on March 19, 2022 using someone else’s personal information. That woman has been indicted separately and her case is pending.
Hill is scheduled to be sentenced November 29. Each wire fraud charge is punishable by up to 20 years in prison, a $250,000 fine, or both.
Homeland Security Investigations, the Breckenridge Hills Police Department and the Ellisville Police Department investigated the case. Assistant U.S. Attorney Jennifer Roy is prosecuting the case.
St. Bernard Parish Man Indicted for Violating Federal Drug and Firearms StatutesRead the Press Release
NEW ORLEANS, LOUISIANA – TERRY BAHAM, JR., age 35, a resident of St. Bernard Parish, was charged on August 24, 2023, in a two-count indictment with possession with intent to distribute forty grams or more of a mixture and substance containing a detectable amount of fentanyl, and quantities of mixtures and substances containing detectable amounts of cocaine, methamphetamine, and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 841(b)(1)(D), as well as possession of firearms in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A), announced U.S. Attorney Duane A. Evans.
If convicted of the drug count, BAHAM faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of forty years, a fine of up to $5,000,000.00, and at least four years of supervised release following any term of imprisonment. If convicted of the firearm count, BAHAM faces a mandatory minimum term of imprisonment of five years to run consecutive to any other sentence imposed, a fine of up to $250,000.00, and five years of supervised release following any term of imprisonment. BAHAM also faces payment of a mandatory $100 special assessment fee per count.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration and the St. Bernard Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
- Serial Armed Robber Convicted at Trial
Sarasota Man Sentenced to 10 Years for Possessing Child Exploitation MaterialRead the Press Release
Tampa, Florida – U.S. District Judge Mary Scriven has sentenced Keith Critchfield (68, Sarasota) to 10 years in federal prison, followed by 10 years of supervised release, for possession of child exploitation material. The court also ordered Critchfield to forfeit a laptop, which was used in the commission of the offense. Critchfield had pleaded guilty on May 30, 2023.
According to court documents, Critchfield is a registered sex offender based on a 1998 state of Florida conviction for lewd or lascivious exhibition and using a child in a sexual performance. In May 2020, after receiving cybertips regarding child exploitation material, agents searched Critchfield’s residence and found that he possessed child sexual abuse images.
This case was investigated by the Federal Bureau of Investigation (Sarasota). It was prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Repeat Offender Sentenced to 10 Years in Federal PrisonRead the Press Release
Richland, Washington – On August 24, 2023, United States District Judge Mary K. Dimke sentenced Zachary Robert Cordova, age 30, to 10 years in in federal prison after his guilty plea to possession with intent to distribute 50 grams or more of pure methamphetamine. Cordova, who is from Richland, WA, also will serve 5 years of federal supervision after he is released from custody.
According to information disclosed during court proceedings, in January 2022, an investigation was initiated into Cordova, a subject already under court supervision for prior drug distribution, as he was now reportedly engaged in the distribution of deadly fentanyl-laced pills and methamphetamine in the Eastern District of Washington, specifically in the Tri-Cities, Washington area.
In March of 2022, officers attempted to stop and arrest Defendant based upon the drug investigation and active arrest warrants. Cordova did not stop, and instead fled the scene at a high rate of speed, which placed the community at risk. Officers were not permitted to pursue him but were able to locate Cordova at an unrelated residence a short time later where he again attempted to flee. Cordova was apprehended, and law enforcement seized thousands of fentanyl-laced pills, methamphetamine, and several loaded firearms.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, stated “This significant sentence demonstrates the breadth and seriousness of Mr. Cordova’s increasing drug trafficking activities. I’m grateful for our incredible law enforcement team, who devote their lives to protecting our community. I commend our METRO Drug Task Force whose work combatting organized crime and removing illegal drugs and stolen firearms keeps our neighborhoods safe and strengthens our communities.”
“This case demonstrates how DEA as well as our federal, state, and local partners are working together to hold accountable those who distribute poisonous fentanyl into our communities,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division.This case was investigated by the DEA Tri-Cities, the METRO Drug Task Force, United States Border Patrol, Richland Police Department, Kennewick Police Department, Pasco Police Department, and West Richland Police Department. This case was prosecuted by Assistant United States Attorney Stephanie Van Marter.
4:22-CR-06020-MKD
Qakbot Malware Disrupted in International Cyber TakedownRead the Press Release
LOS ANGELES – The Justice Department today announced a multinational operation involving actions in the United States, France, Germany, the Netherlands, the United Kingdom, Romania, and Latvia to disrupt the botnet and malware known as Qakbot and take down its infrastructure.
The Qakbot malicious code is being deleted from victim computers, preventing it from doing any more harm. The Department also announced the seizure of more than $8.6 million in cryptocurrency in illicit profits.
The action represents the largest U.S.-led financial and technical disruption of a botnet infrastructure leveraged by cybercriminals to commit ransomware, financial fraud, and other cyber-enabled criminal activity.
“Cybercriminals who rely on malware like Qakbot to steal private data from innocent victims have been reminded today that they do not operate outside the bounds of the law,” said Attorney General Merrick B. Garland. “Together with our international partners, the Justice Department has hacked Qakbot’s infrastructure, launched an aggressive campaign to uninstall the malware from victim computers in the United States and around the world, and seized $8.6 million in extorted funds.”
“An international partnership led by the Justice Department and the FBI has resulted in the dismantling of Qakbot, one of the most notorious botnets ever, responsible for massive losses to victims around the world,” said United States Attorney Martin Estrada. “Qakbot was the botnet of choice for some of the most infamous ransomware gangs, but we have now taken it out. This operation also has led to the seizure of almost 9 million dollars in cryptocurrency from the Qakbot cybercriminal organization, which will now be made available to victims. My Office’s focus is on protecting and vindicating the rights of victims, and this multifaceted attack on computer-enabled crime demonstrates our commitment to safeguarding our nation from harm.”
“The Operation ‘Duck Hunt’ Team utilized their expertise in science and technology, but also relied on their ingenuity and passion to identify and cripple Qakbot, a highly structured and multi-layered bot network that was literally feeding the global cybercrime supply chain,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “These actions will prevent an untold number of cyberattacks at all levels, from the compromised personal computer to a catastrophic attack on our critical infrastructure."
According to court documents, Qakbot, also known by various other names, including “Qbot” and “Pinkslipbot,” is controlled by a cybercriminal organization and used to target critical industries worldwide. The Qakbot malware primarily infects victim computers through spam email messages containing malicious attachments or hyperlinks. Once it has infected a victim computer, Qakbot can deliver additional malware, including ransomware, to the infected computer. Qakbot has been used as an initial means of infection by many prolific ransomware groups in recent years, including Conti, ProLock, Egregor, REvil, MegaCortex, and Black Basta. The ransomware actors then extort their victims, seeking ransom payments in bitcoin before returning access to the victim computer networks.
These ransomware groups caused significant harm to businesses, healthcare providers, and government agencies all over the world, including to a power engineering firm based in Illinois; financial services organizations based in Alabama, Kansas, and Maryland; a defense manufacturer based in Maryland; and a food distribution company in Southern California. Investigators have found evidence that, between October 2021 and April 2023, Qakbot administrators received fees corresponding to approximately $58 million in ransoms paid by victims.
The victim computers infected with Qakbot malware are part of a botnet (a network of compromised computers), meaning the perpetrators can remotely control all the infected computers in a coordinated manner. The owners and operators of the victim computers are typically unaware of the infection.
As part of the takedown, the FBI was able to gain access to Qakbot infrastructure and identify over 700,000 computers worldwide, including more than 200,000 in the United States, that appear to have been infected with Qakbot. To disrupt the botnet, the FBI was able to redirect Qakbot botnet traffic to and through servers controlled by the FBI, which in turn instructed infected computers in the United States and elsewhere to download a file created by law enforcement that would uninstall the Qakbot malware. This uninstaller was designed to untether the victim computer from the Qakbot botnet, preventing further installation of malware through Qakbot.
The scope of this law enforcement action was limited to information installed on the victim computers by the Qakbot actors. It did not extend to remediating other malware already installed on the victim computers and did not involve access to or modification of the information of the owners and users of the infected computers.
Valuable technical assistance was provided by Zscaler. The FBI has partnered with the Cybersecurity and Infrastructure Security Agency, Shadowserver, Microsoft Digital Crimes Unit, the National Cyber Forensics and Training Alliance, and Have I Been Pwned to aid in victim notification and remediation.
The FBI Los Angeles Field Office, the U.S. Attorney’s Office for the Central District of California, and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) conducted the operation in close cooperation with Eurojust. Investigators and prosecutors from several jurisdictions provided crucial assistance, including Europol, French Police Cybercrime Central Bureau and the Cybercrime Section of the Paris Prosecution Office, Germany’s Federal Criminal Police and General Public Prosecutor’s Office Frankfurt/Main, Netherlands National Police and National Public Prosecution Office, the United Kingdom’s National Crime Agency, Romania’s National Police, and Latvia’s State Police. The Justice Department’s Office of International Affairs and the FBI Milwaukee Field Office provided significant assistance.
Assistant United States Attorneys Khaldoun Shobaki and Lauren Restrepo of the Cyber and Intellectual Property Crimes Section, along with CCIPS Trial Attorneys Jessica Peck, Ryan K.J. Dickey and Benjamin Proctor.
Additional information and resources, including for victims, can be found on the following website, which will be updated as additional information and resources become available: https://www.justice.gov/usao-cdca/divisions/national-security-division/qakbot-resources
Qakbot Malware Disrupted in International Cyber TakedownRead the Press Release
The Justice Department today announced a multinational operation involving actions in the United States, France, Germany, the Netherlands, the United Kingdom, Romania, and Latvia to disrupt the botnet and malware known as Qakbot and take down its infrastructure. The Qakbot malicious code is being deleted from victim computers, preventing it from doing any more harm. The Department also announced the seizure of approximately $8.6 million in cryptocurrency in illicit profits.
The action represents the largest U.S.-led financial and technical disruption of a botnet infrastructure leveraged by cybercriminals to commit ransomware, financial fraud, and other cyber-enabled criminal activity.
“Cybercriminals who rely on malware like Qakbot to steal private data from innocent victims have been reminded today that they do not operate outside the bounds of the law,” said Attorney General Merrick B. Garland. “Together with our international partners, the Justice Department has hacked Qakbot’s infrastructure, launched an aggressive campaign to uninstall the malware from victim computers in the United States and around the world, and seized $8.6 million in extorted funds.”
According to court documents, Qakbot, also known by various other names, including “Qbot” and “Pinkslipbot,” is controlled by a cybercriminal organization and used to target critical industries worldwide. The Qakbot malware primarily infects victim computers through spam email messages containing malicious attachments or hyperlinks. Once it has infected a victim computer, Qakbot can deliver additional malware, including ransomware, to the infected computer. Qakbot has been used as an initial means of infection by many prolific ransomware groups in recent years, including Conti, ProLock, Egregor, REvil, MegaCortex, and Black Basta. The ransomware actors then extort their victims, seeking ransom payments in bitcoin before returning access to the victim computer networks. These ransomware groups have caused significant harm to businesses, healthcare providers, and government agencies all over the world.
“The FBI led a worldwide joint, sequenced operation that crippled one of the longest-running cybercriminal botnets,” said FBI Director Christopher Wray. “With our federal and international partners, we will continue to systematically target every part of cybercriminal organizations, their facilitators, and their money – including by disrupting and dismantling their ability to use illicit infrastructure to attack us. Today’s success is yet another demonstration of how FBI’s capabilities and strategy are hitting cyber criminals hard, and making the American people safer.”
The victim computers infected with Qakbot malware are part of a botnet, which is a network of compromised computers, meaning the perpetrators can remotely control all the infected computers in a coordinated manner. The owners and operators of the victim computers are typically unaware of the infection.
“Working with partners here and abroad, the Department of Justice disrupted a botnet that at various times included hundreds of thousands of victim computers around the world, seizing $8.6 million in ill-gotten profits to return to the many entities victimized by Qakbot’s criminal actions,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “This work builds on the Criminal Division’s continuous efforts to protect the American people from cyber threats, and once again shows that we will use all available tools to aggressively dismantle the operations, infrastructure, and finances of these cybercriminals.”
As part of the takedown, the FBI was able to gain access to Qakbot infrastructure and identify over 700,000 computers worldwide, including more than 200,000 in the United States, that appear to have been infected with Qakbot. To disrupt the botnet, the FBI was able to redirect Qakbot botnet traffic to and through servers controlled by the FBI, which in turn instructed infected computers in the United States and elsewhere to download a file created by law enforcement that would uninstall the Qakbot malware. This uninstaller was designed to untether the victim computer from the Qakbot botnet, preventing further installation of malware through Qakbot.
“An international partnership led by Justice Department and the FBI has resulted in the dismantling of Qakbot, one of the most notorious botnets ever, responsible for massive losses to victims around the world,” said U.S. Attorney Martin Estrada for the Central District of California. “Qakbot was the botnet of choice for some of the most infamous ransomware gangs, but we have now taken it out. This operation also has led to the seizure of almost 9 million dollars in cryptocurrency from the Qakbot cybercriminal organization, which will now be made available to victims. My office’s focus is on protecting and vindicating the rights of victims, and this multifaceted attack on computer-enabled crime demonstrates our commitment to safeguarding our nation from harm.”
The scope of this law enforcement action was limited to information installed on the victim computers by the Qakbot actors. It did not extend to remediating other malware already installed on the victim computers and did not involve access to or modification of the information of the owners and users of the infected computers.
Valuable technical assistance was provided by Zscaler. The FBI has partnered with the Cybersecurity and Infrastructure Security Agency, Shadowserver, Microsoft Digital Crimes Unit, the National Cyber Forensics and Training Alliance, and Have I Been Pwned to aid in victim notification and remediation.
The FBI Los Angeles Field Office, the U.S. Attorney’s Office for the Central District of California, and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) conducted the operation in close cooperation with Eurojust. Investigators and prosecutors from several jurisdictions provided crucial assistance, including Europol, French Police Cybercrime Central Bureau and the Cybercrime Section of the Paris Prosecution Office, Germany’s Federal Criminal Police and General Public Prosecutor’s Office Frankfurt/Main, Netherlands National Police and National Public Prosecution Office, the United Kingdom’s National Crime Agency, Romania’s National Police, and Latvia’s State Police. The Justice Department’s Office of International Affairs and the FBI Milwaukee Field Office provided significant assistance.
CCIPS Trial Attorneys Jessica Peck, Ryan K.J. Dickey, and Benjamin Proctor, and Assistant U.S. Attorneys Khaldoun Shobaki and Lauren Restrepo for the Central District of California led the U.S. efforts.
Additional information and resources, including for victims, can be found on the following website, which will be updated as additional information and resources become available: www.justice.gov/usao-cdca/divisions/national-security-division/qakbot-resources.
Putnam County Man Pleads Guilty to Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Gregory Alan Haston II, 39, of Scott Depot, pleaded guilty today to possession with intent to distribute fentanyl.
According to court documents and statements made in court, on January 2, 2023, Haston was a passenger in a vehicle pulled over by a law enforcement officer in the St. Albans area. During a search of the vehicle, the officer seized a bag that he found on the floor near Haston’s feet. Haston admitted that the bag contained approximately 76 grams of fentanyl, which he possessed with the intent to distribute.
Haston is scheduled to be sentenced on December 6, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the St. Albans Police Department.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Lesley C. Shamblin is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-136.
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Previously Convicted Felon Caught on Snapchat Pleads Guilty to Firearm and Drug OffensesRead the Press Release
BOSTON – A member of the Boston street gang “D Street” pleaded guilty today to illegally possessing multiple firearms and ammunition while a convicted felon and while he was under house arrest for a state firearm charge.
Freily Cabral, 25, of Boston and Quincy, pleaded guilty today to two counts of being a felon in possession of a firearm and ammunition and one count of possession with intent to distribute marijuana. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Dec. 14, 2023.
In August 2021, Cabral was identified as the owner of a Snapchat account posting images and of himself in possession of five firearms: a black colored Glock semiautomatic handgun with a flashlight attachment; a black Walther semi-automatic firearm; a silver Taurus revolver; a black semi-automatic firearm; and a brown and silver revolver. In one of the videos, Cabral held three separate firearms to his face as if he were using the firearms to make a phone call.
A search of Cabral’s Quincy residence in September 2021 resulted in the seizure of a Taurus .38 caliber revolver, a Hopkins and Allen .32 caliber revolver, .38 caliber and .32 caliber ammunition, hundreds of grams of marijuana packaged for sale and $23,000 in cash.
At the time of the offense, Cabral was on house arrest with electronic monitoring following a November 2020 arrest for his second unlawful possession of a firearm charge. Cabral was previously convicted in 2016 for unlawful possession of a firearm in Boston Municipal Court. In 2017, Cabral was convicted of assault and battery with a dangerous weapon in Boston Municipal Court and was sentenced to one year in prison.
The charge of being a felon in possession of a firearm and ammunition provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute marijuana provides for a sentence of up to 5 years in prison, at least two years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance in the investigation was provided by the Boston, Quincy and Lynn Police Departments. Assistant U.S. Attorney Christopher Pohl of the Narcotics & Money Laundering Unit is prosecuting the case.
Portsmouth Man Pleads Guilty to Sexually Coercing a MinorRead the Press Release
NORFOLK, Va. – A Portsmouth man pleaded guilty today to coercion and enticement of a minor.
According to court documents, in April 2023, James Wentworth, 31, engaged in multiple sex acts with a minor. Law enforcement additionally discovered an email address Wentworth used to exchange sexually explicit messages with the minor. The emails included discussions regarding Wentworth’s intentions to use sex toys, bondage rope, and bondage tape to restrain the minor during sex acts. The emails further included directions for the minor to delete emails they had previously exchanged.
Wentworth is scheduled to be sentenced on January 9, 2024. He faces a mandatory minimum of 10 years and 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 taking into account the U.S. Sentencing Guidelines and other statutory factors.
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; and Stephen Jenkins, Chief of Portsmouth Police, made the announcement after U.S. Elizabeth Wilson Hanes accepted the plea.
Assistant U.S. Attorney Kristen Taylor is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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 www.justice.gov/psc.
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. 2:23-cr-98.
PRC Citizen Sentenced to 90 Days Prison for Conspiracy to Unlawfully Produce Driver’s LicensesRead the Press Release
Saipan, CNMI – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that the United States District Court for the NMI imposed 90 days of imprisonment for Jiang Feng Li, age 31, a citizen of the People’s Republic of China (PRC), for Conspiracy to Unlawfully Produce an Identification Document, in violation of 18 U.S.C. § 1028(a)(1). The Court also ordered Li to serve two years of supervised release and pay a $100 special assessment fee. He was further ordered to report for deportation proceedings.
Li became a target of a federal investigation in the Commonwealth of Northern Mariana Islands (CNMI) during the spring of 2021. Investigators in Saipan learned Li was a street broker of driver’s licenses unlawfully produced for foreign citizens who did not have valid immigration status – a requirement for obtaining a license in that jurisdiction. Foreign citizens paid Li $1,400 to $1,600 to have conspirators fraudulently produce licenses by the CNMI Bureau of Motor Vehicles. Li’s federal charge alleged his unlawful assistance to three foreign citizens between May and June 2021.
Li initially came to the CNMI as a tourist, which limited his ability to travel to other parts of the United States. In July of 2022, Li traveled via boat from Saipan to Guam. He was eventually located and arrested there in January 2023.
“The public deserves to have confidence in the integrity of our licensing systems,” stated United States Attorney Anderson. “Testing drivers for their knowledge and proficiency helps keep our roadways safe. The defendant’s conduct not only induced the unlawful production of licenses for foreign nationals, but potentially contributed to hazards for other drivers. This matter, and related cases, demonstrate our ongoing efforts to promote public safety throughout the CNMI and Guam.”
This case was investigated by Federal Bureau of Investigation and prosecuted by Albert Flores Jr., Assistant United States Attorney in the District of the Northern Mariana Islands.
Operation Smoke and Mirrors Update: Putnam County Man Pleads Guilty to Role in Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – Scott Jeremy Savage, 46, of Nitro, pleaded guilty today to conspiracy to distribute fentanyl.
According to court documents and statements made in court, between October 17, 2022, and March 9, 2023, Savage conspired with others to distribute quantities of fentanyl while living in Putnam County. Savage admitted to purchasing fentanyl from a co-defendant who lived in the Charleston area and to arranging transactions with this co-defendant by cell phone. Savage further admitted that the co-defendant often fronted him the fentanyl and he would pay the co-defendant back after he sold it.
On October 17, 2022, Savage sold approximately 2.23 grams of fentanyl to a confidential informant at his residence. On October 18, 2022, law enforcement officers executed a search warrant at Savage’s residence and seized approximately 2.93 grams of fentanyl, 2.2 grans of methamphetamine, and a loaded Smith & Wesson Bodyguard .380-caliber semi-automatic pistol.
On January 27, 2023, Savage exchanged phone calls and text messages with the co-defendant to arrange the purchase of a one-quarter ounce of fentanyl. Savage admitted that he believed he would have an easier time mixing that quantity with cutting agents to increase its volume and maximize his profits. Savage further admitted that he agreed with the co-defendant that he owed $445 from prior fentanyl transactions.
During a phone call the next day, Savage told the co-defendant that customers had complained about the fentanyl he had purchased the day before and asked the co-defendant to provide stronger fentanyl. Savage admitted that the co-defendant agreed to provide him with 4 to five grams of fentanyl. On March 9, 2023, Savage sold approximately 1.3 grams of fentanyl to a confidential informant at a Putnam County gas station.
Savage is scheduled to be sentenced on December 18, 2023, and faces a maximum penalty of 20 years in prison, at least three years and up to a lifetime of supervised release, and a $1 million fine.
Savage is among 30 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 200 pounds of methamphetamine as well as 28 pounds of cocaine, 20 pounds of fentanyl, 18 firearms and $747,000 in cash.
Nineteen of the defendants have pleaded guilty. Indictments against the other defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-31.
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Omaha Man Sentenced to 151 Months for Conspiring to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that James Graves, 51, of Omaha, Nebraska, was sentenced on today in federal court in Omaha for conspiring to distribute and possess with intent to distribute methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Graves to imprisonment for 151 months. Upon release from prison, Graves will be required to complete a 5-year term of supervised release. There is no parole in the federal system.
On September 27, 2022, investigators executed a warrant to search a residence on South 45th Street in Omaha, where Graves and Joshua Finken resided. Graves was present at the time of the search and admitted to investigators that he purchased distribution quantities of methamphetamine from Finken over the preceding six months.
Investigators found a safe in Graves’s upstairs bedroom containing a quantity of methamphetamine. Finken resided in the basement, where investigators found several packages of methamphetamine and more than $17,000 in drug proceeds collocated in another safe. Laboratory testing confirmed at least 295 grams of methamphetamine were recovered from the basement.
Finken was arrested nearly a month later on October 23, 2022, when Omaha Police Department officers responded to a motorcycle accident at South 45th and Leavenworth Streets in Omaha. When officers arrived, Finken was running away from the scene on foot, apparently injured. He left a backpack behind where the motorcycle crashed, which was searched by officers and was found to contain at least 159 grams of methamphetamine.
Joshua Finken’s jury trial is scheduled to begin on October 30, 2023.
This case was investigated by the Federal Bureau of Investigation Transnational Organized Crime (TOC-West) Task Force and the Bellevue Police Department.