Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
18 August 2023
Rapid City Man Sentenced for Drug ConspiracyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance (fentanyl). The sentencing took place on August 10, 2023.
Phillip Moore, 33, was sentenced to 12 years and six months in federal prison, followed by five years of supervised release, and was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Moore was indicted for Distribution of a Controlled Substance Resulting in Serious Bodily Injury by a federal grand jury in October of 2021. He pleaded guilty to Conspiracy to Distribute a Controlled Substance on May 5, 2023.
Beginning in 2021, Moore coordinated with other persons to bring fentanyl in the form of small blue pills from Arizona to South Dakota for distribution. Once the fentanyl arrived in the Rapid City area, Moore worked with others to disperse the fentanyl. On October 15, 2021, a local Rapid City man purchased fentanyl from a batch of fentanyl that had been brought into Rapid City as part of Moore’s conspiracy. The man overdosed and CPR and NARCAN were administered to revive him.
This case was investigated by the local Unified Narcotics Enforcement Team (UNET) and the federal Drug Enforcement Agency. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, the South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Gina Nelson prosecuted the case.
Moore was immediately remanded to the custody of the U.S. Marshals Service.
Previously Deported Alien Sentenced to 10 Years for Illegal Re-Entry into the United StatesRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Israel Perez-Santiago (41, Mexico) to 10 years in federal prison for illegally re-entering the United States without authorization by federal immigration officials. Perez-Santiago had previously been deported from the United States 11 times and convicted of the crime of illegal re-entry on 4 occasions.
Perez-Santiago also has multiple prior convictions for other crimes ranging from trespass to battery on a law enforcement officer. The federal prosecution commenced after immigration officials located Perez-Santiago in connection with a theft offense being investigated by local authorities in Fort Myers.
This case was investigated by the United States Border Patrol. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Pharmacy Operations Manager Admits Role in Multimillion-Dollar Health Care Fraud and Kickback SchemeRead the Press Release
TRENTON, N.J. – The former operations manager of a Union City, New Jersey, pharmacy today admitted his role in multimillion-dollar conspiracies to defraud health care insurers, including Medicare and Medicaid, and to pay kickbacks and bribes to health care professionals, U.S. Attorney Philip R. Sellinger announced.
Ruben Sevumyants, 40, of Marlboro, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to two counts of a superseding indictment charging him with conspiring to commit health care fraud and conspiring to violate the federal anti-kickback statute.
U.S. Attorney Philip R. Sellinger“This defendant admitted taking part in a scheme to steal millions of dollars from the health care system. From bribing doctors to billing for medication refills that were never provided, this conspiracy gamed the system, and Sevumyants profited along the way. He will now face the appropriate punishment for his crimes. Our office will always be on the lookout for those who try to turn our health insurance system into an ATM.”
"It can be hard to see why investigations like this matter to the general public going about their lives. However, healthcare professionals and pharmacies are meant to keep us healthy, not inflict harm. As healthcare recipients, we all end up footing the bills for fraudsters because our premiums increase to cover the cost of their crimes. We can't do it alone. We're asking anyone who is a victim of this type of fraud or sees it happening, to call us at 1-800-CALL-FBI and report it."
“New Jersey residents need to be able to trust their doctors and pharmacists are acting in the best interest of their overall health,” Tammy Tomlins, Special Agent in Charge, IRS - Criminal Investigation, Newark Field Office, said. “By paying bribes to doctors to induce them to steer prescriptions to Prime Aid, Sevumyants helped to illegally enrich himself and others at Prime and this type of illegal activity erodes away at the trust we place in our medical professionals.”
“Pharmacy employees who submit fraudulent claims to Medicare and Medicaid and bribe medical providers to induce prescriptions put health care benefits for older people and vulnerable populations at risk,” Naomi Gruchacz, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), said. “HHS-OIG will continue to hold accountable individuals who exploit federal health care programs for their own greed.”
Charges against two conspirators – Samuel “Sam” Khaimov and Yana Shtindler, both of Glen Head, New York – remain pending. Sevumyants’s other conspirators in the kickback scheme are Igor Fleyshmakher, of Holmdel, New Jersey and Alex Fleyshmakher of Morganville, New Jersey. Alex Fleyshmakher previously pleaded guilty to his role in the conspiracy and is awaiting sentencing; Igor Fleyshmakher previously pleaded guilty and was sentenced in November 2021 to 41 months in prison.
According to documents filed in this case and statements made in court:
The Prime Aid Pharmacies – now closed – operated as “specialty pharmacies” in Union City, New Jersey, and Bronx, New York, processing expensive medications used to treat various conditions, including Hepatitis C, Crohn’s disease, and rheumatoid arthritis. Sevumyants was Prime Aid Union City’s operations manager. Khaimov was a co-owner of Prime Aid Union City and the lead pharmacist of Prime Aid Bronx. Khaimov’s wife, Shtindler, was Prime Aid Union City’s administrator. Alex Fleyshmakher worked at Prime Aid Union City and was an on-paper owner of Prime Aid Bronx. His father, Igor Fleyshmakher, was a co-owner of Prime Aid Union City.
Initially, the Prime Aid Pharmacies obtained retail network agreements with several pharmacy benefit managers (PBMs), which allowed them to receive reimbursement payments to prescription medications, including specialty medications. PBMs acted as intermediaries on behalf of Medicare, Medicaid, and private healthcare insurance providers, so that when a pharmacy received a prescription, the pharmacy then submitted a claim for reimbursement to the PBM that represented the beneficiary’s drug plan.
Starting in 2009, to obtain a higher volume of prescriptions, Khaimov, Sevumyants, Alex Fleyshmakher, and other Prime Aid employees paid bribes to doctors and doctors’ employees to induce doctors’ offices to steer prescriptions to the Prime Aid Pharmacies. The bribes included expensive meals and payments by cash, check, and wire transfers. Another method of bribery also involved paying an employee to work inside a doctor’s office.
Prime Aid Union City – at the direction of Sevumyants, Shtindler, and Khaimov – also engaged in the pervasive fraudulent practice of billing health insurance providers for medications that were never provided to patients. While Prime Aid generally provided medications for initial prescriptions it received, it systematically billed for refills for those same medications without ever dispensing them to patients. From 2013 through 2017, Prime Aid Union City received tens of millions of dollars in reimbursement payments from Medicare, Medicaid, and private insurers for medications that Prime Aid Union City not only failed to give patients, but never ordered or had in stock at the pharmacy.
PBMs conducted routine audits of Prime Aid Union City and discovered its practice of billing but not dispensing medications. In response to these audits, Shtindler instructed Prime Aid employees to falsify records submitted to the PBMs. Sevumyants, with Shtindler’s knowledge and approval, forged shipping records of a private commercial shipping company to make it appear as if medications were shipped to the patients when they were not.
The conspiracy to commit healthcare fraud count is punishable by a maximum of 10 years in prison and the conspiracy to pay illegal kickbacks is punishable by a maximum of five years in prison. Both counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Dec. 20, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tomlins in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Gruchacz; the N.J. Office of the Insurance Fraud Prosecutor, Medicaid Fraud Unit, under the direction of Interim Insurance Fraud Prosecutor Al Garcia, and the N.J. Office of the State Comptroller, under the direction of Acting Comptroller Kevin Walsh, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Joshua L. Haber, Chief of the Economic Crimes Unit and Aaron L. Webman of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.
The charges against and allegations in the information pertaining to Khaimov and Shtindler are merely accusations, and those two defendants are presumed innocent unless and until proven guilty.
sevumyants.sindictment.pdfPennsylvania Resident Sentenced to Three Years in Prison for Role in Conspiracy to Defraud and Extort Cryptocurrency ExecutivesRead the Press Release
SAN FRANCISCO – Anthony Francis Faulk was sentenced to serve 36 months in prison and ordered to pay nearly $3 million in restitution for his role in a conspiracy to defraud more than a dozen cryptocurrency owners, announced United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Honorable William H. Orrick, United States District Judge. The Court also ordered forfeiture of numerous assets constituting or derived from proceeds obtained by Faulk’s crime.
Faulk, 26, of Latrobe, Penn., acknowledged his role in the conspiracy in a written plea agreement filed on March 2, 2023. According to his plea agreement, from October 2016 through May 2018, Faulk, using the alias “shade,” conspired with Matthew Ditman, aka “lord crump,” and Ahmad Hared, aka “special547” aka “winblo,” to defraud and extort cryptocurrency owners. The scheme involved “SIM swapping”—duping cellphone companies into giving Faulk and his co-conspirators control of victims’ cellphone numbers, using that access to hack into email and other victim accounts, and ultimately stealing the victims’ cryptocurrency or digital assets.
SIM stands for Subscriber Identity Module or Subscriber Identification Module. A SIM card is a technology used to identify and authenticate subscribers on mobile phone devices. According to his plea agreement, Faulk admitted that he used fraud, deception, and social engineering techniques to induce representatives of cellphone service providers to transfer or port cellphone numbers from SIM cards in the devices possessed by victims to SIM cards in devices possessed by members of the conspiracy. Once in possession of the illegally obtained information, members of the conspiracy reset passwords of their victims’ email, electronic storage, and other accounts. The co-conspirators then were able to control the accounts, access cryptocurrency accounts, and transfer cryptocurrencies from accounts owned by the victims to accounts or wallets controlled by Faulk and his co-conspirators.
Faulk also admitted that, in addition to transferring cryptocurrencies, the co-conspirators contacted some of their victims by telephone and threatened to compromise further accounts unless the victims paid additional money to the fraudsters.
Faulk was ordered to pay $2,816,433 in restitution to 11 victims of the scheme. (After the indictment in this matter, Faulk was charged in separate criminal case, pleaded guilty to one count of conspiracy to commit money laundering, and was ordered to pay restitution to two additional victims.) The court also ordered forfeiture of numerous assets, seized by the government, constituting or derived from proceeds traceable to the conspiracy. Those assets include a nearly $1 million home in Latrobe, Pennsylvania; three J.P. Morgan Chase accounts totaling approximately $12,525,592, $6,242,919, and $18,118, respectively; a 2018 Mercedes-Benz GTS; a 2018 Nissan Rouge; a 2019 Chevrolet Silverado K1500; diamond jewelry; a Rolex; Tiffany earrings; and a Louis Vuitton handbag and wallet.
On December 10, 2019, a federal grand jury indicted Faulk, charging him with one count of conspiracy to commit wire fraud, in violation of 18 U.S. C. § 1349, and one count of interstate communications with intent to extort, in violation of 18 U.S.C. § 875(d). Pursuant to his plea agreement, Faulk pleaded guilty to the conspiracy count. On the government’s motion, Judge Orrick dismissed the extortion count at the sentencing hearing.
Hared and Ditman were separately charged. Hared’s sentencing is set for August 31, 2023, and Ditman’s for October 12, 2023.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. Assistant United States Attorney Robert Leach is prosecuting the case, with assistance from Mimi Lam and Megan Pagaduan. This case is the result of an investigation from FBI.
Owners of Mental Health Counseling Services Company Plead Guilty to Employment Tax CrimeRead the Press Release
An Oklahoma man and a Virginia man pleaded guilty, in separate cases, to willfully failing to pay over employment taxes.
According to court documents and statements made in court, Stephen Christopher Parker of Oologah, Oklahoma, and Michael Baines of Portsmouth, Virginia, were co-owners of a mental health counseling services company, Family Youth Intervention Services Inc., located in Tulsa, Oklahoma. In that role, Parker and Baines were responsible for withholding, accounting for and paying over the income and Social Security and Medicare taxes withheld from the wages paid to the company’s employees. For the second quarter of 2016 they did not file the required quarterly employment tax return or pay over the entirety of those taxes. Parker and Baines further admitted that from January 2014 through December 2017, they did not pay over a total of approximately $1,265,259 in withholdings to the IRS.
Parker and Baines each face a maximum sentence of five years in prison, followed by supervised release, restitution and monetary penalties. U.S. Chief District Court Judge John F. Heill III, will determine any sentence after considering U.S. sentencing guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney David Whipple for the Northern District of Oklahoma are prosecuting the case.
Omaha Men Sentenced for Roles in Drug and Firearm ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Ty-Sean Nunn, 32, and Anthony Hill-Gaines, 25, both of Omaha, Nebraska, were sentenced on August 17, 2023, in federal court in Omaha. United States District Judge Brian C. Buescher sentenced Nunn to 14 years in prison for conspiring to distribute methamphetamine, fentanyl, and marijuana and conspiring to violate federal firearms laws. Hill-Gaines was sentenced to 90 months in prison for conspiring to violate federal firearms laws. There is no parole in the federal system. After Nunn’s release from prison, he will begin a five-year term of supervised release. After Hill-Gaines’s release, he will begin a three-year term of supervised release. Nunn is also forfeiting $13,180 that was identified as drug trafficking proceeds.
From about July of 2016 to January of 2022, Nunn was part of a conspiracy to distribute methamphetamine, fentanyl, and marijuana. The conspiracy largely occurred in Omaha. Nunn was involved in the distribution of the drugs. During this same time period, Nunn and Hill-Gaines conspired to violate federal firearms laws. Nunn and Hill-Gaines possessed firearms to facilitate the drug trafficking conspiracy.
Co-defendants Willis Parker, George Buck, Dominique Thomas, and Jerrell Jackson have all pleaded guilty to charges related to the drug conspiracy. Thomas was sentenced on June 7, 2023, to 90 months of imprisonment. Buck was sentenced on July 26, 2023, to 120 months of imprisonment. Parker and Jackson are pending sentencing. Only co-defendant Terrance Traynham is pending trial. Traynham was previously sentenced to 106 months in federal prison for conduct related to this conspiracy.
This case was investigated by the Federal Bureau of Investigation, the Omaha Police Department, and the Bellevue Police Department.
Omaha Man Sentenced in Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Cash C. Cosgriff, 33, of Omaha, Nebraska, was sentenced on August 17, 2023, in federal court in Omaha for his participation in a methamphetamine conspiracy. United States District Judge Brian C. Buescher sentenced Cosgriff to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
In May 2021, an undercover (UC) Special Agent with the Drug Enforcement Administration communicated with a Mexican-based source of supply about purchasing one pound of methamphetamine that could be delivered to the UC in Omaha. Arrangements were made and on May 20, 2021, Cosgriff arrived in the area of Hanscom Park and delivered 295 grams of pure methamphetamine to the UC.
This case was investigated by the Drug Enforcement Administration.
Omaha Man Sentenced for Possessing Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Kevin Kesselberg, Jr., 20, of Omaha, Nebraska, was sentenced today in federal court in Omaha for possession of child pornography. United States District Judge Brian C. Buescher sentenced Kesselberg to 60 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Kesselberg will serve 10 years of supervised release. Kesselberg was also ordered to pay $6,000 in restitution.
In December 2021, law enforcement began investigating after receiving a Cybertip from Dropbox, Inc. stating that a user had uploaded child pornography. An IP address associated with the uploads was associated with Kesselberg. He admitted to using the account at issue and viewing child pornography. Investigators searched Kesselberg’s cell phone and located two videos of child pornography on the device.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Oklahoma City Man Sentenced to Serve More Than a Decade in Federal Prison for Impersonating an FBI Special Agent and Illegally Possessing a FirearmRead the Press Release
OKLAHOMA CITY – Yesterday, Seth Daniel Grant, 38, of Oklahoma City, was sentenced to serve 11 years in federal prison for impersonating a special agent with the FBI and for illegally possessing a firearm after a prior felony conviction, announced U.S. Attorney Robert J. Troester for the Western District of Oklahoma and Special Agent in Charge Edward J. Gray for the FBI Oklahoma City Field Office.
“Impersonating a federal officer for personal gain is an insult to the vital role the FBI plays in our community on a daily basis,” said U.S. Attorney Troester. “The FBI, like many other federal law enforcement agencies, plays an integral role in protecting citizens and is an invaluable partner to our office. We will continue to do our part to uphold its reputation from those who would seek to take advantage of it.”
“By pretending to be an FBI agent, Mr. Grant boldly exploited the trust the FBI has with the communities we serve,” said Special Agent in Charge Gray. “As the sentence shows, impersonating a federal officer for any reason is a serious crime. We will not tolerate those who seek to degrade the operations of real law enforcement and put public safety at risk.”
On April 20, 2022, a federal grand jury returned a two-count indictment against Grant, charging him with being a felon in possession of a firearm, and for false personation of an officer or employee of the United States. Federal law prohibits convicted felons from possessing firearms or ammunition. On September 13, 2022, Grant pleaded guilty to both counts.
According to public record and information presented at sentencing, on or about January 24, 2022, Grant falsely assumed the role of Special Agent of the FBI and presented stolen FBI credentials to several individuals to support his false claim. The incident occurred in the parking lot of a retail store in Edmond, Oklahoma. Grant assumed this false character to attempt to obtain information that would expose the location of another individual. At the time of the offense, law enforcement also found Grant in possession of a firearm, despite having multiple felony convictions. Public records reflect Grant has a lengthy criminal history, including the following felony convictions:
- Oklahoma County, Case No. CF-2004-990, Attempted Larceny of Automobile, Unauthorized Use of a Motor Vehicle, Driving Under the Influence, Leaving the Scene of an Accident
- Oklahoma County, Case No. CF-2005-2921, Possession of a Taken/Stolen Credit Card
- Oklahoma County, Case No. CF-2012-7592, Second Degree Burglary
- Oklahoma County, Case No. CF-2013-970, Forgery in the Second Degree
- Oklahoma County, Case No. CF-2013-1706, Unauthorized Use of a Motor Vehicle, Possession of a Controlled Dangerous Substance
- Oklahoma County, Case No. CF 2013-4326, Possession of Contraband in Penal Institution
- Oklahoma County, Case No. CF-2016-569, Possession of Methamphetamine and Heroin with Intent to Distribute and Felon in Possession of a Firearm
- Oklahoma County, Case No. CF-2021-1355, Unauthorized Use of a Vehicle
- Oklahoma County, Case No. CF-2021-2437, Felon in Possession of a Firearm
- Oklahoma County, Case No. CF-2021-4934, Unauthorized Use of a Vehicle
At the sentencing hearing yesterday, U.S. District Judge Timothy D. DeGiusti sentenced Grant to serve 11 years in federal prison. In announcing the sentence, the court noted the serious nature of this offense, the need to protect the public, and also Mr. Grant’s years-long spree of unabated criminal conduct.
This case is the result of an investigation by the FBI Oklahoma City Field Office and the Edmond Police Department. Assistant U.S. Attorney Stan West prosecuted the case.
Reference is made to the public record for additional information.
Ohkay Owingeh Man Sentenced to 87 Months in Prison for Assault and Federal Firearms OffensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Jerry Segura, Jr. was sentenced to 87 months in prison. Segura, 34, of Ohkay Owingeh, New Mexico, and an enrolled member of the Ohkay Owingeh Pueblo, pleaded guilty to assault with a dangerous weapon and using and carrying a firearm during and in relation to a crime of violence and brandishing a firearm in furtherance of such crime in Indian Country on May 8, 2023.
According to court documents, on March 13, 2022, Segura, Jr. drunkenly drove with his father to his girlfriend’s mother’s home on the Pueblo of Ohkay Owingeh to, in his words, kill himself in front of her. Instead, Segura, Jr. fired about 10 gunshots from a .40 caliber semi-automatic handgun at his girlfriend’s mother’s home, including about six shots directly at his girlfriend’s pregnant daughter and her young son. Defendant then sped away from the scene with the help of his father. At the time, Segura Jr. was on state-level supervised probation.
Upon his release from prison, Segura Jr. will be subject to five years of supervised release.
The Bureau of Indian Affairs investigated this case. Assistant United States Attorney Zachary Jones is prosecuting the case.
# # #
23-189
Nye County Captain Indicted for Federal ViolationsRead the Press Release
LAS VEGAS – Captain David E. Boruchowitz (42), a deputy Sheriff with the Nye County Sheriff’s Office, appeared in federal court today following his arrest on federal wire fraud, perjury and civil rights violations, arising from the February 2019 false arrest of the former CEO of Valley Electric Association (VEA), a Pahrump-based utility cooperative.
United States Magistrate Judge Brenda Weksler arraigned Boruchowitz on the charges contained in a federal indictment and set the date for trial to begin on October 16, 2023, before United States District Judge Andrew P. Gordon.
According to the indictment, Boruchowitz falsely arrested the former CEO without probable cause on charges that she embezzled services from VEA. The indictment further alleges that the false arrest was part of a larger scheme to defraud the former CEO of her job by falsely alleging in various court documents that the CEO embezzled services from the VEA. According to the indictment, Boruchowitz made false statements and omitted material facts in order to obtain the court documents under false pretenses as part of a broader plan to get the CEO fired from her job at VEA. The indictment alleges that Boruchowitz committed federal wire fraud when he caused press releases to be issued from the Nye County Sheriff’s Office that falsely alleged that the investigation and arrest of the CEO was the result of court authorized process when, in truth and in fact, he obtained the process under false and fraudulent pretenses and without probable cause.
Lastly, the indictment charges that Boruchowitz perjured himself when he falsely testified during a federal civil deposition about his knowledge and level of involvement in the circumstances surrounding the arrest.
A conviction on the civil rights charge carries a maximum term of imprisonment of one year. The wire fraud and perjury violations each carry a 20-year and five-year term of imprisonment, respectively, for each count.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI investigated the case. Assistant United States Attorneys Steven Myhre and Bianca Pucci are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
###
Nigerian citizen extradited from Germany to face charges over attempt to steal $25 million in U.S. benefitsRead the Press Release
Tacoma – One of two Nigerian citizens residing in Canada, who allegedly defrauded the pandemic unemployment benefit programs in multiple states, made his initial appearance in U.S. District Court in Tacoma this afternoon at 2:00 PM. Sakiru Olanrewaju Ambali, 45, was arrested in February 2023, in Frankfurt, Germany, as he traveled back to Canada from Nigeria. Ambali had been detained in Germany pending extradition. He arrived in the Western District of Washington yesterday afternoon.
Ambali and codefendant Fatiu Ismaila Lawal, 45, are accused of using the stolen identities of thousands of Americans to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State.
According to the indictment, Lawal and Ambali used the stolen personal information of thousands of U.S. taxpayers and residents to file fraudulent claims for COVID-19 pandemic assistance and false tax returns seeking refunds. In total, the claims sought approximately $25 million, but the conspirators obtained approximately $2.4 million, primarily from pandemic unemployment benefits.
The co-conspirators allegedly submitted claims for pandemic unemployment benefits to more than 25 states including New York, Maryland, Michigan, Nevada, California, and Washington. Using 13 Google accounts they filed some 900 claims. The co-conspirators also allegedly established four internet domain names that they then used for fraud – creating some 800 different email addresses that were used for fraud.
Lawal and Ambali allegedly filed over 2,300 fraudulent income tax returns seeking over $7.1 million in tax refunds. The IRS caught most of the fraud and paid only about $30,000 in fraudulent refunds.
The co-conspirators also attempted to use the stolen American identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration.
According to the indictment, the co-conspirators had the proceeds of their fraud sent to cash cards or to “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts and have the money deposited directly into those accounts for their use.
Lawal and Ambali are charged with conspiracy to commit wire fraud, ten counts of wire fraud and six counts of aggravated identity theft.
Lawal remains in Canada, pending extradition.
The conspiracy and wire fraud counts are punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory minimum two years in prison to run consecutive to any other prison time imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The National Unemployment Fraud Task Force provided a lead on this case to the investigative team in Western Washington. The case was investigated by the FBI with assistance from U.S. Postal Inspection Service (USPIS) and the Department of Labor Office of Inspector General (DOL-OIG). Also contributing to the investigation were Washington State Employment Security Division (ESD), the Internal Revenue Service Criminal Investigation (IRS-CI), and the Small Business Administration (SBA).
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson of the Western District of Washington. DOJ’s Office of International Affairs is assisting.
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
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 at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
New Orleans Man Sentenced for Federal Weapons OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – JUSTIN HENRY, age 41, of New Orleans, Louisiana, was sentenced on August 17, 2023 by U.S. District Judge Carl J. Barbier to 100 months of imprisonment followed by three years of supervised release, along with a $100 mandatory special assessment fee, for being a felon in possession of a firearm, announced U.S. Attorney Duane A. Evans.
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.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crimes Unit handled the prosecution.
Morris County Sonography Company Enters into Deferred Prosecution Agreement, Agrees to Pay $95,000 to Settle Kickback AllegationsRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, sonography company has entered into a deferred prosecution agreement (DPA) to resolve criminal charges relating to kickback allegations and will pay $95,000 to resolve the civil claims, U.S. Attorney Philip R. Sellinger announced today.
As part of the resolution, a criminal information was filed on Aug. 17, 2023, charging H&D Sonography LLC of Parsippany, New Jersey, with this conduct. H&D entered into a three-year DPA that requires it to abide by certain measures to avoid conviction. H&D also entered into a civil settlement agreement under which it has agreed to pay $95,000 to the United States to resolve civil claims under the federal False Claims Act.
The criminal matter has been assigned to the U.S. Magistrate Judge Jessica S. Allen in Newark federal court.
Criminal Resolution
According to H&D’s admissions in the DPA:
From January 2015 through December 2018 in the District of New Jersey, H&D and others agreed to pay rent in excess of reasonable value to physicians to induce the physicians to refer patients for diagnostic testing to H&D. These agreements called for inflated rent payments from H&D to the physicians, purportedly to use space in the physicians’ offices for a set number of hours each week in order to perform diagnostic tests. H&D agreed to pay for significantly more hours than the technicians actually used, as a method to funnel payments to physicians. H&D structured the payments as sublease payments for the physicians’ shared offices. The sublease payments that H&D paid the physicians were more than the value of the total rent that the physicians actually paid for the shared offices. After H&D began making payments, the physicians in receipt of those payments began to refer patients to H&D for diagnostic tests, which were then billed to Medicare.
Civil Resolution
According to the contentions of the United States set forth in the civil settlement agreement:
From Jan. 1, 2015, through Dec. 31, 2018, H&D knowingly and willingly paid renumeration to referring physicians in the form of space rental payments that were above fair market value and commercially unreasonable for the purpose of inducing diagnostic testing, in violation of the federal Anti-Kickback Statute.
The civil allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act brought by Dr. Richard Chesbrough. The Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Chesbrough will receive approximately 17 percent of the proceeds of the civil settlement.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz, with the investigation leading to the resolution.
The criminal case was prosecuted by Assistant U.S. Attorney Ray Mateo of the Opioid Abuse Prevention and Enforcement Unit; the civil case was handled by Assistant U.S. Attorney Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit.
hd.complaint.pdf hd.settlement.pdf hd.dpa_.pdfMission Man Convicted of Assaulting a Federal OfficerRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a jury has convicted Wilson Brave Heart, age 50, of Mission, South Dakota, of Assaulting, Resisting, and Impeding a Federal Officer following a two-day jury trial in federal district court in Pierre, South Dakota. The verdict was returned on August 16, 2023.
The charges carry a maximum penalty of eight years in custody and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Brave Heart was indicted by a federal grand jury in April of 2023.
On March 11, 2023, Brave Heart was arrested by Rosebud Sioux Tribe Law Enforcement Services officers and charged with domestic abuse. He was then transported by an officer to the Rosebud Sioux Tribe Adult Correctional Facility. While he was completing intake processing at the Adult Correctional Facility, Brave Heart spit in the face of the arresting officer.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
A sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service.
Minnesota Man Sentenced to 78 Months for Possession MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Jeno Michael Paulucci, 42, of Duluth, Minnesota, was sentenced on August 15, 2023, by Senior United States District Court Judge John M. Gerrard to 78 months’ imprisonment for Possession of Methamphetamine with the Intent to Distribute. Paulucci was also sentenced to a three-year term of supervised release to be served after he completes his prison sentence. There is no parole in the federal system. Additionally, Paulucci will be forfeiting to the United States any interest he had in a 2018 Cadillac Escalade, which was used during the commission of the offense. Paulucci pleaded guilty to his offense on May 18, 2023.
On August 3, 2022, law enforcement conducted a checkpoint on Interstate 80 in Dawson County, Nebraska. Jeno Paulucci was the driver and Paulucci’s co-defendant, Patrick Lewis McKinney, was the passenger. Paulucci exited the highway and parked on the wrong side of the road. Law enforcement initiated a traffic stop and smelled a strong odor of marijuana coming from the vehicle. Paulucci did not have a driver’s license, registration, or insurance. Law enforcement subsequently searched the vehicle and located 63 grams of methamphetamine, cocaine, fentanyl pills, kief, and ecstasy pills. Law enforcement also located various dangerous weapons to include two machetes, multiple bladed weapons, a baton taser, and a firearm.
McKinney pleaded guilty to Possession of Methamphetamine with the Intent to Distribute on April 17, 2023. On July 21, 2023, McKinney was also sentenced to a term of 78 months’ imprisonment, and three years of supervised release.
This case was investigated by the Nebraska State Patrol.
Mexico Man Sentenced as Part of a Drug Trafficking ConspiracyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that U.S. District Judge Jeffrey L. Viken has sentenced a Sonora, Mexico, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on August 11, 2023.
Miguel Armenta Rivas, 39, was sentenced to 14 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Rivas was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in August of 2021. He pleaded guilty on April 13, 2022.
As part of his role within the drug trafficking organization, Rivas coordinated with other co-conspirators and would transport large quantities of methamphetamine from Arizona and other places outside of South Dakota into the Rapid City, South Dakota area. Rivas also coordinated with others regarding the storage and distribution of the methamphetamine once it arrived in South Dakota. The conspiracy lasted more than a year’s time frame. In August of 2021, agents conducted a search warrant of multiple locations in the Rapid City area tied to the conspiracy and located over 70 pounds of methamphetamine, multiple pounds of heroin and cocaine, as well as thousands of fentanyl pills, approximately $144,000, and thirteen firearms. One co-conspirator, Noel Rivera, has also been sentenced. Rivera was sentenced in December of 2022 to 17.5 years in federal prison, followed by five years of supervised release. Another co-conspirator is awaiting trial.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Gina Nelson prosecuted the case.
Rivas was immediately remanded to the custody of the U.S. Marshals Service.
Mexican Man Sentenced to over 30 Years in Federal Prison for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Culiacan, Sinaloa, Mexico man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on August 14, 2023.
Diego Martin Duran Acosta, age 32, was sentenced to 33 years and nine months in federal prison and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Duran Acosta was indicted by a federal grand jury in January of 2022. He pleaded guilty on November 14, 2022.
The conviction stemmed from incidents when Duran Acosta distributed methamphetamine. He voluntary joined an agreement with others to have the methamphetamine sold to him so he could resell it and share with other co-conspirators. A search warrant was obtained for his hotel room on September 20, 2021. Law enforcement discovered approximately nine pounds of methamphetamine, which is a Schedule II controlled substance.
This case was investigated by the South Dakota Division of Criminal Investigation, the Douglas County Sheriff’s Office in Alexandria, MN, the West Central MN Drug and Violent Crimes Task Force, and the FBI. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Duran Acosta was immediately remanded to the custody of the U.S. Marshals Service.
Martinsville Man Sentenced to 48 Months for Illegal Gun PossessionRead the Press Release
ROANOKE, Va. – A Martinsville, Virginia man, who police found lying next to a vehicle and unconscious, was sentenced today to 48 months in federal prison to be immediately followed by three years of supervised release for being a convicted felon in possession of a firearm.
David Charles Donavon, Jr., 35, pled guilty in March 2023 to one count of possession of a firearm by a previously-convicted felon.
According to court documents, in July 2022, Martinsville Police officers were called to check on a man lying next to a vehicle. Upon arrival, officers observed Donovan lying unconscious on the ground.
While police were checking on his well-being, they observed a 9mm semiautomatic pistol inserted into his waistband with a magazine containing 15 rounds of ammunition. Further investigation into his identity revealed that Donovan was a convicted felon who is prohibited from possessing a firearm.
United States Attorney Christopher R. Kavanaugh made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsville Police Department investigated the case.
Special Assistant United States Attorney J. Parker Gochenour, an Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case.
Mandeville Man Pleads Guilty to Wire FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOHN SUTTON (“SUTTON”), a resident of Mandeville, Louisiana, pled guilty in federal court on August 17, 2023 before Chief U.S. District Judge Nannette Jolivette Brown to one count of wire fraud in violation of Title 18, United States Code, Section 1343 in connection with a scheme to defraud the Department of Veterans Affairs, announced U.S. Attorney Duane A. Evans.
SUTTON’s co-conspirators, James Thomas Sinyard, Jr., a/k/a Jay Sinyard, and Mary Gigi Sinyard, a/k/a Gigi Sinyard, were charged by bill of information on February 14, 2023. On May 18, 2023, Jay and Gigi Sinyard pled guilty to one count of wire fraud. (EDLA Case No. 23-30 “G”). Co-conspirator Marc Quiroz was charged by bill of information on April 11, 2023. On August 17, 2023, Quiroz pled guilty to one count of wire fraud. (EDLA Case No. 23-60 “G”).
According to the Bill of Information, SUTTON submitted fraudulent affidavits for home aid services provided when he knew that those services were not actually provided. As part of the scheme to defraud, beginning in or around April 2013 and continuing until July 2018, SUTTON did knowingly devise and intend to devise a scheme and artifice to defraud the United States Department of Veterans Affairs (Veterans Affairs) and to obtain money and property by submitting false affidavits and applications to Veterans Affairs on behalf of veterans and their spouses, claiming that VetAttend had provided home services to the veterans, when in fact, it had not. During the scheme to defraud, Veterans Affairs issued funds to over 300 veterans and/or their surviving spouses from which SUTTON fraudulently appropriated, without the knowledge of the veterans, totaling approximately $4,065,969.18.
SUTTON faces a possible maximum term of imprisonment of twenty years, a $250,000 fine, up to three (3) years supervised release, and a mandatory $100 special assessment fee. The Court set sentencing of JOHN SUTTON for November 9, 2023.
The U.S. Attorney’s Office praised the work of the Department of Veterans Affairs – Office of Inspector General. The prosecution of the case is being handled by Assistant United States Attorney Kathryn McHugh, of the Financial Crimes Unit.
Management Company for 48 Skilled Nursing Facilities Agrees to Settle Americans with Disabilities Act ComplaintRead the Press Release
ALEXANDRIA, Va. – The United States Attorney’s Office announced a settlement agreement under the Americans with Disabilities Act (ADA) with Consulate Management Company, III, LLC (CMC), which manages 48 skilled nursing facilities.
The settlement agreement resolves allegations that a nursing facility managed by CMC had denied admission to an individual who is deaf because she would need sign language interpreting services. The ADA prohibits covered entities from excluding individuals with disabilities from their services because they require auxiliary aids or services, such as a sign language interpreter. The remedial terms of the settlement agreement apply to each of the nursing facilities managed by CMC.
To resolve this complaint, CMC agreed to pay $40,000 to the individual that was denied admission and a $50,000 civil penalty. CMC also agreed to make significant changes to the policies and procedures at the nursing facilities it manages. CMC will adopt new ADA policies at all 48 of the nursing facilities it manages. These policies will make the nursing facilities’ services accessible to individuals with communication disabilities, including those who require the services of a sign language interpreter. CMC will also designate an ADA Administrator, who will be responsible for ensuring each facility’s compliance with the ADA; enter into agreements with sign language interpreting service providers to provide services to individuals who need them; and provide training for its personnel on the ADA’s effective communication requirements.
Nursing facilities are an essential component of the healthcare system, as they provide sub-acute healthcare services, including post-hospitalization and long-term care. This settlement agreement ensures that several thousand additional nursing facility beds are accessible to individuals who are deaf or hard of hearing.
The matter was investigated by Assistant U.S. Attorney Steve Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office. The civil claims settled by this ADA agreement are allegations only; there has been no determination of civil liability.
This office recently circulated a Dear Colleagues Letter reminding healthcare providers of the ADA’s effective communication requirements, identifying common issues that arise in these cases, and providing practical steps that healthcare providers can take to comply with the ADA. Additionally, the Department of Justice has a number of publications available to assist entities in complying with the ADA, including Effective Communication, and a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. of the U.S. Attorney’s Office for the Eastern District of Virginia.
Man and Woman Indicted for Child Neglect and Drug Offenses on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on August 15, 2023, a federal grand jury returned a three-count indictment charging a man and woman with child neglect and controlled substance offenses on the Menominee Indian Reservation. The indictment named Louis J. Chevalier (age: 32) and Michelle E. Grignon (age: 35) who both lived in a residence in the Legend Lake area of the Menominee Indian Reservation.
The indictment charged Chevalier and Grignon with the following counts:
COUNT
CHARGE
PENALTY
One
Maintaining Drug-Involved Premises
21 U.S.C. § 856(a)(1)
Up to 20 years in prison; up to a $500,000 fine; up to 3 years on supervised release; and a mandatory $100 special assessment
Two
Child Neglect – Drug Endangerment
18 U.S.C. §§ 1153(a) and (2)(a); Wis. Stat. § 948.21(2)(g) and (3)(e)(1)
Up to 18 months in prison; up to a $100,000 fine; up to 1 year on supervised release; and a mandatory $100 special assessment
Three
Child Neglect – Bodily Harm as a Consequence
18 U.S.C. §§ 1153(a) and (2)(a); Wis. Stat. § 948.21(2)(a) and (3)(d)
Up to 3 years in prison; up to a $100,000 fine; up to 1 year on supervised release; and a mandatory $100 special assessment
According to filed court documents, on or about March 31, 2023, officers with the Menominee Tribal Police Department and Menominee County Sheriff’s Office executed a search warrant based on drug activity at the Chevalier-Grignon residence. Officers discovered a 3-year-old child who was exposed to controlled substances and suffered from medical neglect caused by Grignon and Chevalier’s failure to take action to provide necessary care to the child.
The Menominee Tribal Police Department, Menominee County Sheriff’s Office, and Federal Bureau of Investigation investigated the case, with assistance from Willow Tree Cornerstone Child Advocacy Center in Green Bay. Assistant United States Attorney Andrew J. Maier will prosecute the case.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
# # #
For Additional Information Contact:
Public Information Officer
Kenneth.Gales@usdoj.gov
414-297-1700
Follow us on Twitter
Man Convicted of Submitting False Statements to COVID-19 Relief ProgramRead the Press Release
A federal jury in Memphis convicted a Tennessee man yesterday for making false statements on an attestation to receive $107,568.03 from the Provider Relief Fund, a federal program that provided financial assistance to medical providers offering care to Americans suffering from COVID-19.
According to court documents and evidence presented at trial, Raymond Earl Vallier, 52, of Fayette County, owned and operated North Delta Hospice and Palliative Services LLC in Southaven, Mississippi, from 2006 until June 2019, when he ceded ownership to Individual 1, who passed away in February 2020. By January 2020, North Delta Hospice had stopped billing Medicare and Medicaid and stopped paying employees. North Delta Hospice also did not file a 2020 federal income tax return. In April 2020, North Delta Hospice received a Provider Relief Fund payment of $107,568.03. When the payment was deposited into the company’s bank account, Vallier transferred some of the funds to accounts that he controlled. Then, he issued a $58,000 check to himself. To retain the Provider Relief Fund monies, Vallier submitted a false and fraudulent attestation on behalf of North Delta Hospice in the name of Individual 1, who at that time was deceased. In the attestation, Vallier accepted terms and conditions of payment, which involved certifying, among other things, that North Delta Hospice provided, after Jan. 31, 2020, diagnoses, testing, or care of individuals with possible or actual cases of COVID-19. Vallier also falsely certified that North Delta Hospice would only use the payment to prevent, prepare for, and respond to coronavirus, and only for health care related expenses and lost revenues attributable to coronavirus.
The jury convicted Vallier of two counts of making false statements. His sentencing is scheduled for Dec. 7. He faces a maximum penalty of five years in prison for each count of making false statements. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, and Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
HHS-OIG investigated the case.
Trial Attorney Sara E. Porter and Assistant Chief Justin Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Arvin for the Western District of Tennessee are prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the Provider Relief Fund, monies that were provided to medical providers that must be used for the medical providers’ coronavirus response.
The Medicare Fraud Strike Force is part of a joint initiative between the Justice Department and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Madison County Man Receives 7-Year Federal Sentence for Possession of Child Sexual Abuse MaterialRead the Press Release
EAST ST. LOUIS, Ill. – A U.S. District judge sentenced a Worden man to serve seven years in federal prison after he admitted to possessing more than 600 images of child sexual abuse material (CSAM).
Joseph Vieth, 36, was also ordered to pay a $5,000 fine, $5,000 in special assessments and $6,000 in restitution to the victims. Following his prison sentence, he will serve five years of supervised release.
“Law enforcement recovered hundreds of images of CSAM from the defendant’s phone—photos and videos taken of real children being abused in sexually-explicit situations,” said U.S. Attorney Rachelle Aud Crowe. “Vieth furthered the exploitation of the victims depicted by viewing and distributing the material, and his substantial prison sentence is warranted.”
According to court documents, Vieth was active in an online group identified as a messaging outlet for distributing child pornography from March 28 through Oct. 18, 2021. On four occasions between May 7 and June 21, 2021, he communicated with undercover law enforcement officers and distributed five different videos containing CSAM. Vieth also communicated with undercover law enforcement about meeting to sexually abuse a minor.
“The FBI prioritizes targeting those who put the safety of our children in jeopardy,” said FBI Springfield Special Agent in Charge David Nanz. “Our proactive efforts are designed to put those intent on harming children behind bars. This case and the resulting sentence represent the effectiveness of our efforts.”
On Oct. 5, 2021, Agents executed a search warrant on the defendant’s house and seized multiple electronic devices. While searching his cell phone, agents uncovered more than 600 images of CSAM.
The FBI Springfield Field Office led the investigation, and Assistant U.S. Attorney Ali Burns prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Local Man Charged with Fraudulently Obtaining More Than $500,000 in COVID-19 Relief FundsRead the Press Release
MIAMI – A federal grand jury charged Emmanuel Bully, Jr., 44, of Miami-Dade County, Florida, with wire fraud. Per the indictment, Bully fraudulently obtained more than $500,000 in forgivable Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) loans. These loans are guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to the indictment, between April 29, 2020, through approximately September 27, 2021, Bully submitted six PPP and EIDL loan applications on behalf of himself—as a sole proprietor—and each of his purported four companies: MB Tax Consultants LLC, MB Tax Services LLC, MB Tax Services Consultants, and Emmanuel B. In each PPP and EIDL loan application, Bully falsely stated the corporation’s average monthly payroll or gross revenues. These false and fraudulent applications ultimately led to Bully receiving over $500,000 in PPP and EIDL loan funds. Contrary to the purported purpose for the loans, Bully spent the EIDL and PPP loan proceeds for his personal use and benefit, not for payroll costs, interest on mortgages, rent, or utilities.
During Bully’s initial appearance before U.S. Magistrate Judge William Matthewman, the prosecutor alleged Bully was interviewed earlier this month by FBI special agents regarding the alleged fraud. The FBI arrested Bully as he attempted to leave the country on an international flight on August 16, 2023.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, made the announcement.
FBI, West Palm Beach Field Office, investigated the case. Assistant U.S. Attorney Shannon Shaw is prosecuting it.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-CR-80141.
###
Lincoln Man Sentenced to 30 Months for Possession of a FirearmRead the Press Release
Acting United States Attorney Susan Lehr announced that Said Muhammad Almustaqiim, 20, of Lincoln, Nebraska, was sentenced today by Senior United States District Court Judge John M. Gerrard to 30 months’ imprisonment for being an Unlawful User of a Controlled Substance in Possession of a Firearm. Almustaqiim was also sentenced to a three-year term of supervised release to be served after he completes his prison sentence. There is no parole in the federal system. Almustaqiim pleaded guilty to his offense on November 17, 2022.
On March 21, 2021, the defendant was stopped by an officer with the Lincoln Police Department. The vehicle Almustaqiim was driving did not have a license plate and was displaying an expired “in-transit” sticker. Almustaqiim was the only person in the vehicle. The officer noticed the odor of burnt marijuana coming from the vehicle. Almustaqiim told the officer he had just placed a “roach” inside a drink container. A “roach” is a common slang term meaning the remains of a used marijuana cigarette. The officer searched the car and found 22 grams of marijuana, a digital scale, and $40 in United States currency in a backpack in the car. The police also found a loaded Canik, model TP9DA, 9mm handgun underneath the driver’s seat. Almustaqiim told officers that he was a user of marijuana.
The investigation was conducted by the Lincoln Police Department and the Federal Bureau of Investigation. The Bureau of Alcohol, Tobacco, Firearms, and Explosives assisted with an examination of the firearm. 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.
Leesburg Man Sentenced for the Unlicensed Sale of FirearmsRead the Press Release
ALEXANDRIA, Va. – A Leesburg man was sentenced today to 20 months in prison for selling at least nine firearms, for a profit and without a license, that he originally purchased from Federal Firearms Licensees (FFLs) in the Eastern District of Virginia.
According to court documents from approximately June 17, 2021, through June 25, 2022, in Loudoun County, James Banville, 33, willfully engaged in the business of dealing in firearms without a license. During this period, the defendant purchased 18 firearms from FFLs and illegally sold at least nine of those firearms. To date, law enforcement has recovered three firearms originally purchased by Banville from crime scenes. Of those three, one firearm was recovered by D.C. Metro Police and was loaded with an extended magazine. Another firearm was recovered in New York City following a foot pursuit of a suspect by officers of the New York Police Department.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge T. S. Ellis, III.
Assistant U.S. Attorney Nicholas Patterson and Special Assistant United States Attorney Jacques Singer-Emery prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-54.
Lab Owner Sentenced for $463M Genetic Testing SchemeRead the Press Release
A Georgia man was sentenced today to 27 years in prison for his role in a scheme to defraud Medicare by submitting over $463 million in genetic and other laboratory tests that patients did not need, and that were procured through the payment of kickbacks and bribes.
According to court documents, Minal Patel, 44, of Atlanta, owned LabSolutions LLC (LabSolutions), a lab enrolled with Medicare that performed sophisticated genetic tests. Patel conspired with patient brokers, telemedicine companies, and call centers to target Medicare beneficiaries with telemarketing calls falsely stating that Medicare covered expensive cancer genetic tests. After the Medicare beneficiaries agreed to take a test, Patel paid kickbacks and bribes to patient brokers to obtain signed doctors’ orders authorizing the tests from telemedicine companies. To conceal the kickbacks and bribes, Patel required patient brokers to sign sham contracts that falsely stated that the brokers were performing legitimate advertising services for LabSolutions, when, as Patel well knew, the brokers were deceptively marketing to Medicare beneficiaries and paying kickbacks and bribes to telemedicine companies for genetic testing prescriptions.
“In one of the largest genetic testing fraud cases ever tried to verdict, today’s sentence makes clear that the Department will seek justice for those who put profits above patient care, including owners and executives,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The sentence also demonstrates the Criminal Division’s ongoing commitment to fighting telemedicine and genetic testing fraud that exploits patients and drains health care benefit programs.”
Patel knew the telemedicine doctors robo-signed prescriptions for expensive genetic testing even though they were not treating the beneficiaries, often did not even speak with them, and made no evaluation of medical necessity. From July 2016 through August 2019, LabSolutions submitted more than $463 million in claims to Medicare, including for thousands of medically unnecessary genetic tests, of which Medicare paid over $187 million. In that timeframe, Patel personally received over $21 million from Medicare in connection with the fraud.
“Deception, kickbacks, and bribes have no place in the provision of legitimate genetic testing and telemedicine services to patients who need them,” said Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office. “Patel bilked hundreds of millions of dollars from Medicare through a complex testing fraud scheme. He is now paying the price for this crime. The FBI commends the Department of Health and Human Services Office of Inspector General (HHS-OIG) for their close partnership and diligence working this joint investigation. Our message to those who commit Medicare fraud and steal from U.S. taxpayers is clear: you will be caught and you will be held accountable.”
“This outcome sends a strong message that HHS-OIG will not tolerate those who exploit Medicare patients and who pay kickbacks to providers to prescribe medically unnecessary genetic tests, all for illegitimate financial gain,” said Acting Special Agent in Charge Julie Rivera of the HHS-OIG. “Our commitment to safeguarding the integrity of the Medicare program remains unwavering.”
The FBI and HHS-OIG investigated the case.
Trial Attorneys Jamie de Boer, Emily Gurskis, Reginald Cuyler Jr., Katherine Rookard, and Patrick Queenan of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Marx Calderon for the Southern District of Florida is handling asset forfeiture proceedings. An asset forfeiture hearing is scheduled for Aug. 25.
The case was brought as part of Operation Double Helix, a federal law enforcement action led by the Health Care Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section, focused on fraudulent genetic cancer testing that has resulted in charges against dozens of defendants associated with telemedicine companies and cancer genetic testing laboratories for their alleged participation in one of the largest health care fraud schemes ever charged.
Kennewick Man Sentenced to Federal Prison for Conspiring to Obstruct an Official ProceedingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Mohammed Naji Al-Jibory, age 54, of Kennewick, Washington was sentenced after having pleaded guilty to conspiracy to obstruct an official proceeding. United States District Judge Mary K. Dimke sentenced Al-Jibory to a 10-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to court documents, in February 2019, the Federal Bureau of Investigation (“FBI”) opened an official investigation into allegations that several individuals were involved in a scheme to defraud insurance companies and obtain money and property by staging automobile accidents and filing false and fraudulent claims with insurance companies. The FBI investigation expanded to an investigation by a federal grand jury empaneled in the Eastern District of Washington. In May 2020, the FBI executed warrants to search several residences in Washington and California for evidence of federal crimes.
In September 2020, when interviewed by the FBI, Al-Jibory falsely accused an FBI agent and another individual he and Ali Abed Yaser suspected of being an FBI informant of soliciting approximately a $20,000 bribe from a third person to make the case go away. In doing so, Al-Jibory engaged in misleading conduct toward the FBI agents with the intention of hindering, delaying, and preventing communication about their criminal activities to federal officers and a judge of the United States. Al-Jibory also attempted to corruptly obstruct, influence, and impede a federal grand jury proceeding and a criminal proceeding before a judge and court of the United States.
Vanessa R. Waldref, United States Attorney for the Eastern District of Washington said, “Obstructing official proceedings by falsely accusing a federal agent of bribery will not be tolerated. I commend the efforts of the law enforcement officers who investigated this case.”
This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General, with the assistance of the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
4:21-CR-6042-MKD-23
Jury finds former Pike County deputy guilty of excessive use of forceRead the Press Release
COLUMBUS, Ohio – A federal jury has convicted a Piketon man of committing civil rights violations while employed as a Pike County deputy.
Jeremy C. Mooney, 48, violated a victim’s constitutional rights on Nov.18, 2019, while the victim was in the custody of the Pike County Sheriff’s Office.
The verdict was announced today following a trial that began on Aug. 16 before U.S. District Judge Edmund A. Sargus, Jr.
According to court documents and trial testimony, Mooney repeatedly used pepper spray and struck the victim while the victim was restrained and not posing a threat.
Mooney was working the night shift that spanned Nov. 17 to 18, 2019. He transported the victim from the jail to the Pike County Sheriff’s Office headquarters and placed the victim in a “violent prisoner restraint chair.”
For more than an hour, Mooney unlawfully used force against the victim on several occasions. For example, Mooney dragged the victim – who was in the restraint chair with his hands secured behind his back – outside, before spraying him directly in the face with pepper spray.
The victim writhed in pain and tipped the chair back off the curb, landing on his back. Mooney again deployed the pepper spray directly into the victim’s face.
After bringing the victim back inside, Mooney returned to the restrained victim on three more occasions and punched the victim in the head 11 times. Mooney punched the victim with enough force to break his own hand.
All these unlawful uses of force occurred while the victim posed no threat to himself or others.
A former Pike County Sheriff’s Office supervisor, William Stansberry, Jr., 47, of Chillicothe, was also charged in this case. Stansberry violated the victim’s constitutional rights by willfully failing to intervene to prevent Mooney’s conduct.
Stansberry pleaded guilty in July 2023 to deprivation of civil rights under color of law. Mooney was convicted today of three counts of the same crime, which is punishable by up to 10 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Kristen Clarke, Assistant Attorney General of the Department of Justice’s Civil Rights Division; and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the verdict. Assistant United States Attorney Peter K. Glenn-Applegate and Trial Attorney Cameron A. Bell from the Justice Department’s Civil Rights Division are representing the United States in this case.
# # #
Jacksonville Fugitive Pleads Guilty to Possession of Counterfeit Government CheckRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Verdell Terria Jones (58, Jacksonville) has pleaded guilty to possession of a fictitious government document involving a counterfeit government check. Jones faces a maximum penalty of 25 years in federal prison and payment of restitution to the victims that she defrauded. Her sentencing hearing is set for November 1, 2023.
Jones was arrested on April 11, 2017. After being released on pre-trial supervision, Jones fled the jurisdiction in August 2017 and a warrant was issued for her arrest. Jones remained a fugitive for more than five years until the FBI located and arrested her in April 2023.
According to the plea agreement and court proceedings, Jones was involved with the Sovereign Citizen Movement and did not recognize the authority of the U.S. government. As part of a scheme to defraud, Jones obtained counterfeit checks made to look like genuine checks issued by the U.S. Department of Treasury. Superimposed on the counterfeit checks was language such as “an obligation of the United States,” “statutory legal tender obligation of the United States,” and an image of the Statue of Liberty that appeared to be identical to the image contained on genuine government financial documents issued by the U.S. Department of Treasury.
In 2015, Jones contacted an individual in Jacksonville who was selling a car. Jones agreed to purchase the car by paying off the balance on the car loan. Jones sent the financial institution a counterfeit check for $25,000 that appeared to be drawn on the U.S. Department of Treasury in an attempt to defraud both the financial institution and the individual selling the car.
This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force. It is being prosecuted by Assistant United States Attorneys Kevin C. Frein and Michael Coolican.
Honduran Man Charged with Illegal ReentryRead the Press Release
NEW ORLEANS, LOUISIANA – ELIAS MANUEL MURCIA-BONILLA, age 32, a native of Honduras, was charged yesterday in a one-count indictment with Illegal Reentry in violation of Title 8, United States Code, Section 1326(a), announced United States Attorney Duane A. Evans.
MURCIA-BONILLA faces a maximum term of imprisonment of 2 years, a term of supervised release up to 1 year, a fine of up to $100,000.00, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of Homeland Security Investigations, Enforcement and Removal Operations agents in investigating this matter. Assistant United States Attorney Jon Maestri of the General Crimes Unit is in charge of the prosecution.
Hartford Man Pleads Not Guilty to Felon in Possession ChargeRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on August 17, 2023, James Ingerson, 53, of Hartford, Vermont, pleaded not guilty to a single-count indictment that charges him with being a previously convicted felon in possession of a firearm. At the hearing, United States Magistrate Judge Kevin J. Doyle ordered Ingerson to remain in custody during the pretrial proceedings.
According to court records and proceedings, on June 7, 2023, law enforcement executed a search warrant at Ingerson’s home in connection with a drug trafficking investigation. During execution of that search warrant, law enforcement discovered a shotgun. During a statement given to law enforcement after waiving his Miranda rights, Ingerson admitted to possessing the weapon. At the time, Ingerson had previously been convicted of approximately eight (8) felonies, including a 2003 conviction for burglary for which he received a 20-year sentence.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Ingerson remains presumed innocent unless and until he is convicted of a crime. Ingerson faces a maximum sentence of 15 years of imprisonment if convicted. The actual sentence would be determined with reference to Federal Sentencing Guidelines.
U.S. Attorney Nikolas P. Kerest commended the investigative efforts of the Hartford, Norwich, and Lebanon, New Hampshire Police Departments, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Barbara A. Masterson is handling the prosecution of Ingerson. Ingerson is represented by Matthew Anderson, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Greenacres Man Sentenced to 97 Months in Prison for Paying for Child Pornography through Online AppRead the Press Release
MIAMI – Yesterday, Andre Tookes, Jr., of Greenacres, Florida, was sentenced to 97 months in prison, followed by 15 years of supervised release, for purchasing child pornography through a social networking application (an “online app”).
According to court records, beginning in April 2022, Andre Tookes, Jr. communicated with an unknown person in South Africa through a social networking application. Tookes, Jr. purchased dozens of child pornography videos from the South African for $70 on each of nine separate occasions. Law enforcement officers executed a search warrant on Tookes, Jr.’s residence and were able to uncover the communications on his seized phone. Tookes, Jr. pled guilty to receipt of child pornography.
U.S. Attorney Markenzy Lapointe of the Southern District of Florida and Special Agent in Charge Anthony Salisbury, HSI Miami, announced the sentence imposed.
HSI West Palm Beach investigated the case as part of a larger investigation into similar purchasers of child pornography. Assistant U.S. Attorney Gregory Schiller prosecuted the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
To report online child sexual exploitation, use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 23-cr-80087.
###
Girlfriend of California Source of Fentanyl Conspiracy Sentenced to 9 YearsRead the Press Release
ABINGDON, Va. – A California woman, who helped her boyfriend ship thousands of pressed fentanyl pills to members of a Southwest Virginia drug dealing conspiracy, was sentenced yesterday to nine years in federal prison.
Destiny Raeann Perez, 23, of Turlock, California, pleaded guilty in January 2023 to conspiring to distribute and possession with the intent to distribute 400 grams or more of fentanyl.
According to court documents, during the conspiracy, Perez was based in California and assisted her boyfriend, Alexander Ortiz, with the packaging of thousands of pressed fentanyl pills for distribution. Perez organized pill orders and mailed drug parcels from California to customers located throughout the United States, including to drug dealers Paul Perkins and Aaron Stidham in Southwest Virginia.
Ortiz and Perez estimated they made over $500,000 selling pressed fentanyl pills via social media.
United States Attorney Christopher R. Kavanaugh, Craig B. Kailimai, Special Agent in Charge of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service - Atlanta Division, made the announcement.
The Wise County Sheriff’s Office, the Norton Police Department, the Southwest Virginia Drug Task Force (consisting of the Wise County Sheriff’s Office, the Scott County Sheriff’s Office, the Lee County Sheriff’s Office, the Norton Police Department, the Big Stone Gap Police Department, and the Virginia State Police), the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the United States Postal Inspection Service investigated the case.
Assistant U.S. Attorney Lena L. Busscher prosecuted the case.
Gangster Disciples Members Convicted of Three Gang-Related MurdersRead the Press Release
MACON, Ga. – A federal jury yesterday afternoon convicted three members of the Gangster Disciples for their roles in the murder of an Athens, Georgia, resident as retribution for the killing of another gang member and the murders of two other Athens men falsely suspected of cooperating with law enforcement.
Philmon Deshawn Chambers, aka “Dolla Phil,” 34, of Atlanta was convicted of Racketeer Influenced and Corruption Organization (RICO) conspiracy; Violent Crime in Aid of Racketeering - Murder (VICAR-Murder); Carry and Use of a Firearm During and In Relation to a Crime of Violence; and Causing the Death of a Person Using a Firearm. Chambers faces a mandatory minimum sentence of life in prison for the VICAR-Murder offense, and a maximum of life in prison for each of the remaining offenses.
Co-defendant Andrea Paige Browner, aka “Drea,” 28, of Athens, Georgia, was convicted of Racketeer Influenced and Corruption Organization (RICO) conspiracy; Violent Crime in Aid of Racketeering - Murder (VICAR-Murder); and Causing the Death of a Person Using a Firearm. Browner faces a mandatory minimum sentence of life in prison for the VICAR-Murder offense, and a maximum of life in prison for each of the remaining offenses.
Co-defendant Lesley Chappell Green, aka “Grip,” 35, of Stone Mountain, was convicted of Racketeer Influenced and Corruption Organization (RICO) conspiracy. Green faces a maximum of life in prison.
Jury selection began on July 31 and the trial concluded on Aug. 17 before Chief U.S. District Judge Marc T. Treadwell. A sentencing date for Chambers, Browner and Green has not been scheduled.
Two co-defendants previously entered guilty pleas:
Robert Maurice Carlisle, aka “Different,” 36, of Lithonia, Georgia, pleaded guilty to Racketeer Influenced and Corruption Organization (RICO) conspiracy on June 8, and is facing a maximum sentence of life in prison; and
Shabazz Larry Guidry, aka “Lil Larry,” 28, of Decatur, Georgia, pleaded guilty to Racketeer Influenced and Corruption Organization (RICO) conspiracy on June 8 and is facing a maximum sentence of life in prison.
Sentencings for these defendants has not been scheduled.
“Philmon Chambers, Andrea Browner and Lesley Green were Gangster Disciples who engaged in a pattern of violent criminal activity for years, to include three heinous murders; now, justice has been served,” said U.S. Attorney Peter D. Leary. “Violent gangs, intimidation and murder have no place in our lawful society, and I commend the federal, state and local partners who worked so closely to solve this case of exceptional complexity.”
"Our hope is that this verdict brings a sense of relief and justice to the victim's families, who have endured such pain throughout these past few years,” said Robert Gibbs, Senior Resident Agent of FBI Atlanta's Macon Office. “All three defendants’ actions were indefensible, cruel and unjust. They will now face the penalty for the despicable choices they made. We are grateful for our law enforcement partners who worked tirelessly on this case, as their dedication was essential in today’s verdict.”
“This guilty verdict ensures that these violent offenders who are directly responsible for multiple murders are off the streets, making Athens and the entire state of Georgia safer,” said Athens-Clarke County Police Chief Jerry Saulters. “Local, state and federal agencies poured countless hours over several years into the success of this case, and I am thankful for their tireless efforts to make sure justice is served.”
According to court documents, Chambers held a “Position of Authority” within the national Gangster Disciples criminal organization, which included overseeing members of the “Enforcement Team.” The Enforcement Team is directed to discipline gang members using physical assault or murder. Co-defendant Green was a member of the Enforcement Team. Co-defendant Browner was a member of the “Sisters of the Struggle” (SOS), a parallel female component of the Gangster Disciples, and held a leadership position in the gang.
Evidence presented at trial proved that on Dec. 10, 2018, Gangster Disciples member Walter Brown was murdered in Athens, Georgia. Chambers and Browner sought retaliation for Brown’s death and believed three unnamed Athens residents were responsible. On Dec. 14, 2018, Browner met Rodriquez Apollo Rucker, of Athens, at a downtown Athens hotel and learned that Rucker was related to one of the individuals she believed killed Brown. Browner texted Chambers, and Chambers came to the motel. Chambers followed Rucker home and shot and killed him. Browner notified an associate of the Gangster Disciples that she and Chambers would be leaving town because the police would be looking for them.
Browner was taken into custody in Mt. Enterprise, Texas, on Dec. 15, and Chambers got away. Chambers was suspicious that someone was cooperating with law enforcement and focused his suspicions on Derrick Ruff and Joshua Jackson. Chambers concluded that Ruff and Jackson were “snitches” and directed Green, who held a subordinate position on the Enforcement Team, to carry out the murders of Ruff and Jackson.
Text messages and intercepted phone calls between Chambers, Green, Carlisle and Guidry revealed that Ruff and Jackson were lured by Green, as directed by Chambers, to drive from Athens to Lawrenceville to break into storage sheds and steal items to send to Chambers as “aid and assistance” as he was hiding out from law enforcement in a Gangster Disciple “safe house” in Killeen, Texas. The ruse worked, and Ruff and Jackson were murdered on Dec. 19 and their bodies concealed in the storage unit until March 17, 2019, when police with the assistance of cadaver sniffing dogs located them. Additional messages between Chambers, Green, Carlisle and Guidry showed that they conspired to dispose of the victims’ bodies, which included potentially burning the bodies or dumping the bodies in a landfill. Law enforcement recovered the bodies and made arrests before these plans could be carried out.
This case is being prosecuted as part of the joint federal state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being investigated by FBI Athens Resident Agency Middle Georgia Safe Streets Gang Task Force, Athens-Clarke County Police Department and the Gwinnett County Police Department.
Assistant U.S. Attorney Mike Morrison of the Middle District of Georgia and Trial Attorney Ken Kaplan of the Department of Justice’s Criminal Division’s Organized Crime and Gang Section are prosecuting the case for the Government.
Four Texas Men Plead Guilty to Stealing Cash, Damaging ATMs in Three StatesRead the Press Release
COLUMBUS, Ga. – Four Houston, Texas, residents pleaded guilty to federal charges for stealing cash and damaging ATMs using hooks, chains and stolen trucks in Georgia, Alabama and Louisiana.
Jamarlon Butler, 37, pleaded guilty to conspiracy to commit offense or to defraud the United States on Aug. 15. Co-defendants Marques Strambler, 35, David Hill, 31, and Traveon Odoms, 34, pleaded guilty to conspiracy to commit offense or to defraud the United States on Aug. 7. The defendants each face a maximum of five years in prison to be followed by three years of supervised release and a $250,000 fine. Sentencing before U.S. District Judge Clay Land is scheduled for Dec. 7. There is no parole in the federal system.
“These defendants embraced lawlessness, stealing vehicles and mauling ATMs in numerous attempts to steal money in Georgia, Alabama and Louisiana,” said U.S. Attorney Peter D. Leary. “Our office will not hesitate to hold individuals accountable for criminal actions that cause loss and damage for people, their businesses and the broader communities we serve.”
“Damaging property and stealing cash from a bank is a federal crime, regardless if violence occurred, and the FBI will always investigate” said Rich Bilson, Senior Resident of FBI Atlanta’s Columbus office. “Rather than legitimately work to make their money, these defendants choose to scheme and steal and will now be held accountable for their crimes.”
According to court documents and other evidence, the defendants stole cash from ATMs in Georgia, Alabama and Louisiana during the summer of 2021 by accessing the machine’s internal safe using chains and hooks attached to stolen trucks. In total, the defendants are being held accountable for three ATM robberies totaling $166,482.18 of loss in cash and damages.
The first theft occurred in the Middle District of Georgia on June 16, 2021. The defendants stole a Ford F250 from Phenix, Alabama, and targeted the SunTrust Bank on Courtyard Way in Columbus, Georgia. Ultimately, their attempt to access the money inside the ATM was unsuccessful but caused $12,727 in damage.
Approximately forty minutes later and 11 miles away from the SunTrust Bank in Columbus, the defendants successfully robbed the ATM machine at Phenix Girard Bank on Highway 280 in Phenix City, Alabama, using the same stolen truck. The total in cash and damages there was $129,804.44.
Police found the abandoned truck a half a mile from the Phenix Girard Bank the next day. Surveillance footage captured the truck being abandoned behind a business and three individuals running away towards another vehicle. An employee of the business stated he saw the truck traveling at a high rate of speed and dragging something causing sparks and noise (caused by the still-attached tow chain and hook), before it was abandoned in the parking lot. The truck was the same truck used in the attempted robbery of the SunTrust ATM in Columbus.
The defendants stole a truck in Covington, Louisiana, on July 27, and attempted to rob the ATM at the Hancock Whitney Bank in Covington at 4:00 a.m. unsuccessfully. Surveillance video shows the defendants exiting a truck and attaching a tow chain and hook to the front of the ATM to access the internal safe. The defendants caused $23,950.74 in damage.
The case was investigated by FBI-Atlanta, FBI-New Orleans, the Columbus Police Department, the Phenix City, Alabama, Police Department and the St. Tammany Parish Sheriff’s Office, Louisiana.
Assistant U.S. Attorney Crawford Seals is prosecuting the case for the government.
Fort Myers Man Sentenced to Federal Prison for Unlawfully Possessing Firearm as A Convicted FelonRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced James Blanks (27, Fort Myers) to 12 months in federal prison for possessing a firearm as a convicted felon, to be served consecutively to a 4-year state prison sentence he is currently serving. The court also ordered Blanks to forfeit the firearm and ammunition possessed during the offense. Blanks had pleaded guilty on May 4, 2023.
According to court records, on the night of October 30, 2020, officers from the Fort Myers Police Department attempted to conduct a traffic stop on a vehicle being driven by Blanks. Blanks initially stopped his vehicle on a grassy shoulder but as officers began to exit their vehicle, Blanks sped away from them. As Blanks continued fleeing from law enforcement, he rear-ended another vehicle and lost control of his own vehicle, ultimately crashing it into a concrete utility pole off the roadway. Officers arriving at the scene detained Blanks and located a loaded Smith & Wesson pistol protruding from under the driver’s seat of his vehicle.
Blanks was previously convicted on state charges of aggravated fleeing to elude law enforcement. Therefore, he is prohibited from possessing a firearm or ammunition under federal law. He will begin serving his federal sentence upon release from state prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Simon R. Eth.
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.
Fort Jennings Man Sentenced for Child ExploitationRead the Press Release
TOLEDO – Kirk Smith, 33, of Fort Jennings, Ohio was sentenced on Wednesday, August 16, to 15 years in prison by U.S. District Judge James R. Knepp after earlier pleading guilty to sexual exploitation of a minor. Judge Knepp also ordered Smith to pay a $100 special assessment and be placed on supervised release for 10 years upon release from imprisonment. Additionally, Smith was ordered to pay $5,000 to the Justice for Victims of Trafficking Act.
According to court documents, in September of 2021, Smith engaged in online communication with undercover law enforcement and indicated he was sexually active with a minor child and had nude photos of the child. Shortly thereafter, Smith sent photos of a minor child that were sexually exploitive. A court authorized search warrant was executed at Smith’s residence where his cellphone was seized and found to contain the messages Smith exchanged with the undercover law enforcement online.
This case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Sara Al-Sorghali.
Former Pharmacy President Admits $32 Million Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A former president of a pharmacy business admitted his role in a health care kickback conspiracy involving prescriptions for Medicare and TRICARE beneficiaries, Attorney for the United States Vikas Khanna announced today.
Elan Yaish, 53, of Israel, pleaded guilty on Aug. 16, 2023, before U.S. District Judge Esther Salas in Newark federal court to an information charging him with conspiracy to violate the Federal Anti-Kickback statute.
According to documents filed in this case and statements made in court:
From September 2017 to around December 2020, Yaish participated in operating pharmacies, including Apogee Bio-Pharm LLC, in Edison, New Jersey. Yaish and others agreed to engage in a scheme to pay marketing companies to direct prescriptions for expensive medications to the pharmacies.
The marketing companies identified Medicare and TRICARE beneficiaries to target for expensive drugs and contacted the beneficiaries by telephone to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, and migraine medication. The marketing companies then transmitted recordings of telephone calls with the beneficiaries, together with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. The marketers paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions. The marketing companies then directed the prescriptions to pharmacies, including Apogee, with which they had kickback arrangements. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare and TRICARE. The pharmacies, including Apogee, then paid a portion of each reimbursement to the marketing companies as a kickback. As a result of the scheme, Yaish and his conspirators caused a loss to Medicare and other federal health care benefit programs of over $32 million.
The charge of conspiracy to violate the Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison, and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Dec. 20, 2023.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit, in Newark.
yaish.information.pdfFormer Nurse Pleads Guilty to Possession of Child Pornography and Conspiracy to Acquire Controlled SubstancesRead the Press Release
Douglas Kelley, 67, from Sioux City, Iowa, pled guilty in federal court on August 17, 2023, to Possession of Child Pornography and Conspiracy to Acquire Controlled Substances by Fraud.
At the plea hearing, Kelley admitted that he knowingly possessed child pornography, including a depiction involving a prepubescent minor or a minor who had not attained 12 years of age. Kelley further admitted he was previously convicted of offenses relating to the possession of child pornography in Buena Vista County, Iowa, in 1993. In a plea agreement, Kelley admitted that he knowingly distributed fentanyl, and conspired to distribute amphetamine as well as conspired to obtain and acquire fentanyl by means of misrepresentation, fraud, deception, and subterfuge. Kelley was a nurse at MercyOne Hospital in Sioux City, Iowa, and used his position to obtain fentanyl and other controlled substances to illegally distribute to others.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Kelley was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. On the Possession of Child Pornography count, Kelley faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of no more than 20 years’ imprisonment without the possibility of parole, a $250,000 fine, and 5 years to life of supervised release following any imprisonment. For the Conspiracy to Acquire Controlled Substances by Fraud count, Kelley faces not more than 4 years’ imprisonment without the possibility of parole, a $250,000 fine and up to 1 year of supervised release.
The case is being prosecuted by Assistant United States Attorney Kraig Hamit and was investigated by the Iowa Division of Inspections & Appeals, United States Department of Health and Human Services, Sioux City Police Department, and the Federal Bureau of Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-4022.
Follow us on Twitter @USAO_NDIA.
Former Juvenile Justice Employee Indicted for Civil Rights and Obstruction of JusticeRead the Press Release
ASHLAND, Ky.— A former Kentucky Department of Juvenile Justice employee, Nathaniel K. Lumpkins, 32, of Elkfork, Ky., has been indicted by a federal grand jury on one count of deprivation of rights under color of law and one count of falsifying records or documents to obstruct justice.
Lumpkins was employed at Woodsbend Youth Development Center, a Kentucky Department of Juvenile Justice facility located in West Liberty, Ky., and worked as a Youth Worker, responsible for the custody, care, and control of the juveniles housed there. The indictment alleges that on January 23, 2019, Lumpkins, while working as a Youth Worker, violated the civil rights of a fifteen-year-old when he used unreasonable force to attempt to restrain the victim, causing bodily injury, including a broken arm. The indictment further alleges that Lumpkins wrote and signed an incident report that included false information, attempting to cover up his use of force.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, announced the indictment.
The investigation preceding the indictment was conducted by FBI. The indictment was presented to the grand jury by Assistant U.S. Attorney Zach Dembo.
Lumpkins will appear in Court for his arraignment on Friday. For the deprivation of rights charge, Lumpkins faces up to 10 years in prison, and for the falsifying records charge, he faces up to 20 years in prison. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
— END —
Former Hoosick Falls Resident Sentenced to 144 Months for Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – William Hines, age 45, formerly of Hoosick Falls, New York, was sentenced today to 144 months in prison for receiving and possessing more than 6,100 images of child pornography.
United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Homeland Security Investigations (HSI), Buffalo, New York Field Office, made the announcement.
As a part of his earlier guilty plea, Hines admitted that in December 2016 through January 2017, he downloaded child pornography from a website, and the images he possessed included images depicting the rape of a toddler, adults performing oral sex and using sexual devices upon pre-pubescent children, and images and videos depicting an underaged former girlfriend.
United States District Judge Mae A. D’Agostino also imposed a 15-year-term of post-release supervision and ordered Hines to forfeit a phone, laptop, and external hardrive that he used to store the child pornography. Hines will also have to register as a sex offender upon his release from prison.
HSI investigated the case with the assistance of the Hoosick Falls Police Department and the New York State Police. Former Assistant U.S. Attorney Rachel Williams and Assistant U.S. Attorney Jonathan S. Reiner prosecuted this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state, and local resources to better locates, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former Commonwealth’s Attorney Indicted on Bribery and Public Corruption ChargesRead the Press Release
LEXINGTON, Ky.— The former Kentucky Commonwealth’s Attorney for Bath, Menifee, Montgomery, and Rowan Counties, Ronnie Goldy, 51, has been indicted by a federal grand jury on six counts of honest services wire fraud, six counts of using an interstate communication to commit bribery, and two counts of federal program bribery.
The indictment alleges that between November 2017 and November 2020, Goldy defrauded the Commonwealth of Kentucky by using his position as Commonwealth’s Attorney to help a criminal defendant in exchange for bribes. Specifically, the indictment charges that Goldy solicited and accepted sexual favors and sexually explicit images from this individual; and in return, he made decisions in criminal cases that benefitted this defendant and pressured other officials to do the same. The indictment lists examples of actions Goldy agreed to perform for this defendant, including seeking their release from incarceration, asking for the withdrawal of arrest warrants, requesting the postponement of a court hearing, and asking another prosecutor to sign an order directing the release of the defendant’s impounded property.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, announced the indictment.
The investigation preceding the indictment was conducted by FBI. The indictment was presented to the grand jury by Assistant U.S. Attorney Andy Boone.
Goldy will appear for his initial appearance on Monday at 4 p.m. For the six counts of honest services wire fraud, Goldy faces a maximum of 20 years in prison; for the six counts of electronic communication bribery, he faces a maximum of five years in prison; and for the two counts of federal program bribery, he faces a maximum of 10 years in prison. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
— END —
Former Baltimore County Police Officer Sentenced to 18 Months in Federal Prison for Accepting Bribes in Exchange for Firearms Training CertificationsRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced William R. Johnson, Jr., age 34, of Baltimore, Maryland, yesterday to 18 months in federal prison, followed by two years of supervised release, for a federal charge of honest services wire fraud, for seeking and accepting bribes and kickbacks, totaling at least $16,804, to falsely certify that applicants for Maryland handgun qualifying licenses (HQL) and wear and carry permits (CCW) had completed the required training. Judge Bennett also ordered that Johnson must pay a money judgment of at least $16,804, representing the proceeds he obtained from the scheme.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Robert McCullough of the Baltimore County Police Department.
As detailed in court documents, Johnson joined the Baltimore County Police Department and later obtained a qualified handgun instructor certificate from the Maryland State Police. According to his guilty plea, from May 2019 through September 2021, Johnson solicited and accepted bribes and kickbacks from applicants seeking certain licenses in exchange for Johnson falsely certifying to the Maryland State Police that the applicant had completed the training required by law. In conversations with the applicants, Johnson made clear that once they paid the money, Johnson would send them the required documentation and they did not need to attend the required classes.
United States Attorney Erek L. Barron commended the FBI and the Baltimore County Police Department for their work in the investigation and thanked Homeland Security Investigations Baltimore, and the Maryland State Police for their assistance. Mr. Barron thanked Assistant U.S. Attorney Christine Goo, who prosecuted the case.
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.
# # #
Former Alabama Correctional Sergeant Convicted of Violating the Civil Rights of an Inmate and Obstruction of JusticeRead the Press Release
MONTGOMERY, ALABAMA – Today, a federal jury in the Middle District of Alabama convicted a former Alabama correctional sergeant of deprivation of rights under color of law, falsification of records and obstruction.
The evidence at trial established that on March 8, 2018, at the Alabama Department of Corrections’ Staton Correctional Facility, Correctional Sergeant Devlon Williams assaulted an inmate, D.H., in the main hallway of the healthcare unit. Witnesses at trial testified that Williams repeatedly punched and kicked D.H., who was on the ground and not resisting or posing a threat to any person or corrections officer. Williams continued the beating by hitting D.H. multiple times with a collapsible baton. The government presented evidence at trial that after the beating, Williams and another corrections officer, Larry Managan, who previously pleaded guilty to obstruction, attempted to cover up the beating. Williams made false statements about the assault to an Alabama Department of Corrections investigator and prepared a false report about the incident.
“This defendant is being held accountable for using excessive force against an inmate and preparing a false report to cover-up his unlawful behavior,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Prisoners, like everyone else, have the right to be free from such needless and extreme violence at the hands of law enforcement officers. The Justice Department will continue to hold accountable law enforcement officers who violate the constitutional and civil rights of any Americans, including people who are incarcerated.”
“While most corrections officers try each day to do the right thing, unfortunately, some abuse the authority they are granted,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “Everyone deserves protection under the law and my office will hold any officer criminally responsible for violating the civil rights of a person in his or her custody.”
“There is no place for this type of behavior in law enforcement. The mission of the FBI is to protect the American people and uphold the Constitution of the United States,” said Special Agent in Charge Paul Brown of the FBI Mobile Field Office. “Today’s conviction demonstrates our commitment to this mission. I would also like to highlight the exceptional work by our partners at the Alabama Department of Corrections Law Enforcement Services Division without whom this case could not have been successful.”
Williams’ co-defendant, Larry Managan Jr., previously pleaded guilty to making false statements in connection with this incident on Dec. 8, 2021. Williams and Managan are awaiting sentencing.
The FBI Mobile Field Office and Alabama Department of Corrections Law Enforcement Services Division investigated the case.
Assistant U.S. Attorney Eric Counts for the Middle District of Alabama and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section prosecuted the case.
Florida Man Sentenced to 48 Months in Federal Prison for Using Counterfeit U.S. Passport Cards in Check-Cashing SchemeRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten announced that Robert Allen Naber of Melbourne, Florida, was sentenced to 48 months in prison for fraudulent use of U.S. passport cards in the execution of bank check fraud. Naber could potentially serve a much longer time in prison because U.S. District Judge Robert J. Jonker ordered his federal sentence to run consecutively to two Iowa state prison sentences for similar conduct.
"Counterfeiters target the U.S. passport card because it is a lesser-known identity document and cheaper than other identifying documents to produce,” said U.S. Attorney Totten. “I applaud the investigative work that went into this case to hold Mr. Naber accountable as a fraudster, to prevent further financial losses to banks, and to protect unsuspecting individuals from becoming victims of identity theft.”
According to court records, beginning in January 2022, Naber obtained counterfeit U.S. passport cards with the names and other details of victims whose personal identifying information had been stolen and posted on the Dark Web. He also obtained their bank account information and created forged checks in their names. The counterfeit cards contained the victims’ personal information but had Naber’s photograph on them. Naber then used the cards to cash forged checks from bank accounts in Iowa, North Carolina, and Kent County, Michigan. He was briefly arrested after cashing checks in Iowa, but absconded from bond and continued his criminal activity.
The scheme ended in August 2022, when Naber was arrested in Locust, North Carolina while he was attempting to cash a check there. He was transferred to the Western District of Michigan for federal prosecution based on checks he passed in Kent County.
“Individuals and organized criminal groups are using counterfeit U.S. passport cards with increasing frequency in identity theft and related fraud schemes targeting financial institutions and retailers,” said U.S. Department of State's Diplomatic Security Service Detroit Resident Agent-in-Charge Matt Kupec. “The Diplomatic Security Service is committed to working with our partners to stop crimes that have the potential to result in millions of dollars in losses throughout the Midwest Region.”
The case was investigated by the U.S. Department of State's Diplomatic Security Service, with assistance from the Kent County Sheriff’s Office, the Grand Rapids Police Department, the Greenfield, Wisconsin Police Department, the Des Moines, Iowa Police Department, and the Locust, North Carolina Police Department. Assistant U.S. Attorney Clay Stiffler and former Assistant U.S. Attorney Clay West prosecuted the case.
# # #
Final Defendant in Red Lake Arson Case Sentenced to Five Years in PrisonRead the Press Release
MINNEAPOLIS– A Red Lake woman has been sentenced to 60 months in prison followed by two years of supervised release for her role in an arson conspiracy on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.
According to court documents, Dalene Roberta Fajardo, 35, Corey Leigh Stately, 40, and Lori Anna Sayers, 33, conspired and knowingly agreed to commit arson to maliciously damage and destroy personal and real property by means of fire or explosive materials. On April 30, 2021, Fajardo and her co-defendants made Molotov cocktail devices, traveled to a location on the Red Lake Reservation, and threw the Molotov cocktails at a 2018 Chevrolet Tahoe. As a result, the vehicle was destroyed and a nearby residence partially burned. The residence’s occupants, including children, were all forced to evacuate.
Fajardo pleaded guilty on March 7, 2023, to one count of aiding and abetting arson. She was sentenced on August 14, 2023, in U.S. District Court before Chief Judge Patrick J. Schlitz. Stately and Sayers were previously sentenced to five and three months in prison, respectively, for their roles in the arson.
This case is the result of a joint investigation conducted by the Red Lake Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation.
This case was prosecuted by Assistant U.S. Attorneys Evan Gilead and Laura M. Provinzino.
Final Defendant Sentenced in South Carolina’s Largest RICO ConspiracyRead the Press Release
WASHINGTON – The 40th and final defendant prosecuted as part of the District of South Carolina’s case against the Insane Gangster Disciples (IGD), a branch of the nationwide Folk Nation gang, was sentenced today.
“The incarcerated leadership of the IGD maintained the gang’s lucrative drug enterprise by ordering murders and terrorizing neighborhoods throughout South Carolina,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “This vertical prosecution of 40 gang leaders, members, and associates has disrupted the criminal enterprise both inside and outside of prison. The case demonstrates the Department’s resolve to pursue and dismantle these organizations wherever they operate.”
According to court documents, the IGD was a sprawling criminal enterprise that included inmates within the South Carolina Department of Corrections (SCDC) who were gang leaders and used contraband cell phones to orchestrate murders, kidnappings, gun trafficking, and an international drug operation. James Robert Peterson, 35, of Gaffney; Edward Gary Akridge, 31, of Greenville; Matthew J. Ward, 39, of Lexington; and Juan Rodriguez, 43, of Woodruff, orchestrated the crimes from inside SCDC where they were inmates. IGD also included non-incarcerated members who committed crimes outside the prison system. In South Carolina, IGD was divided into three primary “sets,” each with its own leader.
“Contraband cellphones allowed gang leaders to perpetuate violence, traffic guns, and run an international drug operation from behind bars,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Through a years-long, multi-agency partnership with state, local, and federal law enforcement, we have dismantled this criminal enterprise and held accountable both the incarcerated defendants and those who enabled them. We will continue to vigorously investigate and prosecute inmates who use contraband phones to continue their criminal conduct from prison.”
Since the initial indictment in this case, all charged defendants have pleaded guilty to conspiracy under the Racketeer Influenced Corrupt Organizations (RICO) Act, the Violent Crimes in Aid of Racketeering (VICAR) statute, or to conspiracy to distribute and possess with intent to distribute narcotics (including methamphetamine, cocaine, heroin, and fentanyl). Ten defendants were charged with either VICAR murder or kidnapping resulting in death – all of whom pleaded guilty as charged.
Nineteen of the 40 defendants in the case were sentenced on racketeering charges to the following prison terms:
- Peterson, the leader of a gang set within IGD, was sentenced to life in prison after pleading guilty to RICO conspiracy and kidnapping resulting in death.
- Ward, the leader of a gang set within IGD, was sentenced to 23 years in prison after pleading guilty to RICO conspiracy.
- Akridge, the leader of a gang set within IGD, was sentenced to 30 years in prison after pleading to RICO conspiracy and VICAR murder.
- Aaron Michael Carrion, 31, of Lexington, a member of and enforcer for IGD, was sentenced to 35 years in prison after pleading guilty to RICO conspiracy and VICAR murder.
- Aaron Corey Sprouse, 31, of Gaffney, a member of IGD, was sentenced to 20 years in prison after pleading guilty to RICO conspiracy and VICAR kidnapping.
- Arian Grace Jeane, 29, of Greenville, a member of IGD, was sentenced to over 15 years in prison after pleading guilty to RICO conspiracy and aiding and abetting VICAR murder.
- Cynthia Rooks, 55, of Lexington, an associate of IGD, was sentenced to over 11 years in prison after pleading guilty to RICO conspiracy.
- Lisa Marie Bolton, 35, of Dallas, North Carolina, an associate of IGD, was sentenced to over 10 years in prison after pleading guilty to RICO conspiracy.
- Jonathan Eugene Merchant, 30 of Laurens, a member of IGD, was sentenced to 20 years in prison after pleading guilty to aiding and abetting VICAR murder.
- Joshua Lee Scott Brown, 25, of Greenville, a member of IGD, was sentenced to 20 years in prison after pleading guilty to aiding and abetting VICAR murder.
- Alex Blake Payne, 31, of Greenville, a member of IGD, was sentenced to over nine years in prison after pleading guilty to RICO conspiracy.
- Virginia Ruth Ryall, 46, of Gastonia, North Carolina, an associate of IGD, was sentenced to 17 years in prison after pleading guilty to RICO conspiracy.
- Sally Williams Burgess, 40, of Greenville, an associate of IGD, was sentenced to 15 years in prison after pleading guilty to RICO conspiracy.
- Jennifer Sorgee, 39, of Easley, an associate of IGD, was sentenced to 10 years in prison after pleading guilty to RICO conspiracy.
- Heather Henderson Orrick, 36, of Greenville, an associate of IGD, was sentenced to 10 years in prison after pleading guilty to RICO conspiracy.
- Crystal Nicole Bright, 43, of Lexington, a member of IGD, was sentenced to over five years in prison after pleading guilty to RICO conspiracy.
- Lisa Marie Costello, 46, of Gaffney, an associate of IGD, was sentenced to over four years in prison after pleading guilty to RICO conspiracy.
- Amber Hoffman, 39, of Lexington, an associate of IGD, was sentenced to over five years in prison after pleading guilty to RICO conspiracy.
- Clifford Kyzer, 38, of Lexington, an associate of IGD, was sentenced to over 11 years in prison after pleading guilty to RICO conspiracy.
Twenty-one other defendants in this case have also been sentenced to charges stemming from the IGD’s far-reaching narcotics organization after pleading guilty to narcotics distribution conspiracy, possession with intent to distribute narcotics, and/or firearms offenses and related charges. The following are those defendants and their prison terms:
- Rodriguez was sentenced to 10 years in prison after pleading guilty to conspiracy to distribute a controlled substance.
- Samuel Dexter Judy, 31, of Lexington, was sentenced to 13 years in prison after pleading guilty to conspiracy to distribute a controlled substance.
- Kelly Jordan, 37, of Williamston, was sentenced to 10 years in prison after pleading guilty to conspiracy to distribute a controlled substance.
- Richard Ford, 65, of Lexington, was sentenced to seven years in prison after pleading guilty to conspiracy to distribute a controlled substance and related charges.
- Brian Bruce, 51, of West Columbia, was sentenced to four years of supervised release after pleading guilty to conspiracy to distribute a controlled substance.
- Montana Barefoot, 28, of Lexington, was sentenced to five years of supervised release after pleading guilty to conspiracy to distribute a controlled substance.
- John Johnson, 39, of Gaston, was sentenced to 10 years in prison after pleading guilty to conspiracy to distribute a controlled substance.
- Kelly Still, 46, of Windsor, was sentenced to 10 years in prison after pleading guilty to conspiracy to distribute a controlled substance.
- Benjamin Singleton, 49, of Lexington, was sentenced to over nine years in prison after pleading guilty to conspiracy to distribute a controlled substance.
- Kyla Mattoni, 41, of Lexington, was sentenced to six years in prison after pleading guilty to conspiracy to distribute a controlled substance, felon in possession of a firearm, and related charges.
- Alexia Youngblood, 41, of Lexington, was sentenced to five years in prison after pleading guilty to conspiracy to distribute a controlled substance.
- Rebecca Martinez, 36, of Lexington, was sentenced to five years of supervised release after pleading guilty to conspiracy to distribute a controlled substance.
- Mark Edward Slusher, 49, of Lexington, was sentenced to over seven years in prison after pleading guilty to conspiracy to distribute a controlled substance.
- Robert Figueroa, 46, of West Columbia, was sentenced to 10 years in prison after pleading guilty to conspiracy to distribute a controlled substance.
- Britney Shae Stephens, 35, of Anderson, was sentenced to five years in prison after pleading guilty to conspiracy to distribute a controlled substance.
- Matthew Edward Clark, 44, of York, was sentenced to three years of supervised release after pleading guilty to conspiracy to distribute a controlled substance.
- Catherine Amanda Ross, 31, of Gaffney, was sentenced to over 10 years in prison after pleading guilty to aiding and abetting kidnapping.
- Brandon Lee Phillips, 39, of Gaffney, was sentenced to time served after serving approximately four years in prison, followed by two years of supervised release, after pleading guilty to conspiracy to distribute a controlled substance.
- Billy Wayne Ruppe, 58, of Gaffney, was sentenced to six years in prison after pleading guilty to conspiracy to distribute a controlled substance.
- Windy Brooke George, 24, of Gaffney, was sentenced to 10 years in prison after pleading guilty to conspiracy to distribute a controlled substance.
- Tiffanie Brooks, 39, of Columbia, was sentenced to over three years in prison after pleading guilty to conspiracy to distribute a controlled substance.
In connection with the investigation and prosecution of this case, law enforcement seized approximately 40 kilograms of methamphetamine, more than 130 firearms, and various quantities of heroin and fentanyl.
“ATF joined our local, state, and federal partners in a very dedicated and focused effort to make a long-lasting impact on the level of gun violence and gang activity in South Carolina,” said Acting Special Agent in Charge Brian Mein of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “We brought some extremely dangerous individuals to justice and recovered over a hundred firearms from a criminal organization intent on harming our communities. Disrupting these major criminal networks will have a significant impact on public safety across the state.”
“This sentence marks the end of an era for a violent organization responsible for a multitude of criminal activities across South Carolina that negatively impacted the way of life for many communities,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “The FBI and our law enforcement partners are committed to dismantling complex criminal enterprises and ensuring that our communities are safe and secure.”
The case is the result of a multi-agency effort to dismantle the IGD by the ATF, FBI, Lexington County Sheriff’s Department, Lexington County Multi-Agency Narcotics Enforcement Team SCDC, Greenville County Sheriff’s Office, Anderson County Sheriff’s Office, South Carolina Law Enforcement Division, Cherokee County Sheriff’s Office, Laurens County Sheriff’s Office, and Richland County Sheriff’s Department. The South Carolina Attorney General’s Office, Fifth Circuit Solicitor’s Office, Eighth Circuit Solicitor’s Office, Eleventh Circuit Solicitor’s Office, and Thirteenth Circuit Solicitor’s Office provided valuable assistance.
Trial Attorney Rebecca Dunnan and Principal Deputy Kim S. Dammers of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Justin Holloway for the District of South Carolina prosecuted the case. Attorneys Brandon B. Hinton, formerly of the U.S. Attorney’s Office, and Lisa K. Man, formerly of the Organized Crime and Gang Section, also assisted with the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Justice Department’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
###
Federal Grand Jury Indicts Tompkinsville Man for Methamphetamine TraffickingRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green, Kentucky returned an indictment on August 9, 2023, charging a Tompkinsville, Kentucky man with methamphetamine trafficking.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Director Ron Lafferty of the Barren River Drug Task Force made the announcement.
According to the indictment, on June 6, 2023, Corey Shirley, 29, possessed with the intent to distribute 50 grams or more of methamphetamine in Monroe County, Kentucky. Shirley also distributed 50 grams or more of methamphetamine on December 21, 2021, in Monroe, County, Kentucky.
Yesterday, Shirley made an initial appearance before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. If convicted, he faces a minimum sentence of 10 years in prison and a maximum sentence of life. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the DEA Bowling Green Post of Duty Office and the Barren River Drug Task Force.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###