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26 July 2023
Omaha Woman Convicted of Conspiring to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Fabiola Diaz, 31, of Omaha, Nebraska, was sentenced today in federal court in Omaha for conspiring to distribute and possess with intent to distribute 5 grams or more of actual methamphetamine. United States District Court Judge Brian C. Buescher sentenced Diaz to 100 months’ imprisonment. He also ordered her to serve 3 years of supervised release after her release from prison. There is no parole in the federal system.
Between January 2020 and August 13, 2020, Diaz conspired with others to distribute methamphetamine in the Omaha area. On January 14, 2020, law enforcement executed a search warrant on the Omaha residence Diaz shared with her boyfriend and co-defendant, Steven Garcia, and seized 22.6 grams of actual methamphetamine. On August 13, 2020, law enforcement conducted a controlled drug transaction against Diaz and purchased 22 grams of actual methamphetamine. On November 17, 2020, law enforcement made another controlled buy against Diaz after which she fled in her vehicle. While fleeing, Diaz struck two police cars, recklessly placing law enforcement in danger before being arrested.
Steven Garcia has pleaded guilty and is scheduled to be sentenced on August 17, 2023.
This case was investigated by the Drug Enforcement Administration.
Omaha Man Sentenced to 85 Months for Felon in PossessionRead the Press Release
Acting United States Attorney Susan Lehr announced that Federico Cortez, 35, of Omaha, Nebraska, was sentenced today in federal court in Omaha for one count of Felon in Possession of a Firearm. Cortez had multiple prior felony convictions out of the State California for gang activity and one for felon in possession of ammunition. United States District Judge Brian C. Buescher sentenced Cortez to a term of 85 months of imprisonment, to be followed by three years of supervised release. There is no parole in the federal system.
Between July 7, 2022 and July 8, 2022, Cortez sold weapons that were stolen from a burglary of a firearms store, Frontier Justice gun club, to an undercover informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). After Cortez sold the stolen weapons, ATF searched his residence where they recovered another stolen firearm. Cortez argued for a lower sentence, but Judge Buescher found the circumstances of the crime deserved a lengthier sentence and ordered Cortez be immediately remanded to the custody of the United States Marshals Service.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives.
Oklahoma Man Sentenced to 28 Years in Federal Prison for Producing Child PornographyRead the Press Release
BOISE – Kobe Jace Mahoney, 22, of Seminole, Oklahoma, was sentenced to 336 months in federal prison for sexually exploiting a child by producing child pornography, U.S. Attorney Josh Hurwit announced today.
According to court records, in November 2021 investigators learned that Mahoney traveled from Twin Falls, Idaho to Elko, Nevada, to meet a 13-year-old child. Mahoney admitted that he met the child on the Snapchat messaging application. He admitted that he had sexual intercourse with the child in Elko and used his cellphone to make a recording of the acts. Mahoney further admitted that he had engaged in sexual acts with approximately 24 different minor females with ages ranging from 11 to 17 years old in eight different states between August and November 2021. Mahoney claimed he exclusively used the Snapchat messaging application to meet the minor females.
Law enforcement obtained a search warrant for Mahoney’s cellphone. Two videos of the sexual acts between Mahoney and the child in Elko were found on the cellphone and were created in the fall of 2021. Messages between Mahoney and the child were also found. The child informed Mahoney that was she was underage prior to his travel from Idaho to Nevada to meet her. Mahoney was previously convicted of rape in Garvin County, Oklahoma.
“Our collective efforts to protect the most vulnerable members of our society, our children, have never been more urgent,” said U.S. Attorney Hurwit. “I thank our federal and local partners for all that they did in this case, and I look forward to working with them to ensure the safety of Idaho’s children.”
“Mahoney is a child predator who will spend the next 28 years behind bars in a federal prison and children across the country are safer because of it,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations operations in the Pacific Northwest. “This sentence is another example of the successful partnerships that exist between HSI and Idaho law enforcement. We are especially appreciative of the work conducted by the Twin Falls Police Department, as the results of this investigation not only lead to a lengthy prison sentence, it has assisted in identifying additional victims of child exploitation.”
U.S. District Judge Amanda Brailsford also sentenced Mahoney to a lifetime of supervised release, which will commence upon completing his prison sentence. Mahoney will also be required to register as a sex offender.
U.S. Attorney Hurwit thanked Homeland Security Investigations in Boise and Reno, the Twin Falls Police Department, the Twin Falls County Prosecutor’s Office, the Elko County Sheriff’s Office, and the Elko County Prosecutor’s Office for their collaboration and hard work on this case. Law enforcement have identified and interviewed five minor victims in this investigation.
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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Ocala Woman Indicted for Fraud Relating to COVID-19 Relief FundsRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces the return of an indictment charging Passion Lajodia Jackson (30, Ocala) with one count of wire fraud related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. If convicted, Jackson faces up to 20 years in federal prison. Her case is set for trial before Senior United States District Judge Gregory A. Presnell in October 2023.
According to the indictment, between April 2 and April 6, 2021, Jackson devised a scheme to defraud the Small Business Administration (SBA). During this time, she applied for a Paycheck Protection Program (PPP) loan under the CARES Act. It is alleged that Jackson made false representations and provided false documentation to obtain the loan. The United States is seeking an order of forfeiture for at least $20,132, which represents the unlawful proceeds of the offense charged in the indictment.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
In May 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 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 at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Norfolk Man Sentenced for Kidnapping his Child’s Mother at GunpointRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 144 months in prison for the violent kidnapping of his child’s mother.
According to court documents, on May 19, 2022, James Maloyd Hunter, II, 32, kidnapped the mother of his child outside of her residence. Hunter was upset because the victim allowed her new boyfriend to be around the child. At approximately 5:35 in the morning, Hunter, with two co-conspirators, went to the victim’s residence in Norfolk. As the victim was leaving for work, Hunter confronted her, placed a firearm against her head, and forced her into his vehicle. Once inside the vehicle, he strangled the victim to stop her from screaming. She was in pain and unable to breathe. Hunter and his co-conspirators fled the scene to a hotel on Military Highway. Before departing the hotel, he zip-tied the victim’s hands together and forced her onto the floor of the back seat so no one could see her as they left the area.
On May 20, 2022, Hunter was located in Hocking County, Ohio. Local police stopped his vehicle and freed the victim. Upon examining her, they found noticeable signs of injury, including marks around her neck consistent with strangulation. Detectives recovered from Hunter’s vehicle a package of zip ties, a roll of duct tape, a hunting style knife, a pair of scissors, and a receipt from Superior Pawn in Norfolk for the purchase one week before of a 9mm Ruger, semiautomatic handgun. A search of Hunter’s phone revealed that he conducted multiple web searches for topics such as “tranquilizer darts for humans,” “directions to Colorado,” “do you need a passport to cross into Canada,” “sleeping sedative,” “how to put oil filter silencer on handgun,” and “homemade suppressor for handheld pistol.”
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ramin Fatehi, Norfolk Commonwealth’s Attorney; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Mark Talbot, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson.
The U.S. Attorney’s Office for the Eastern District of Virginia expresses its appreciation to the Hocking County Sheriff’s Office for their significant assistance in this case.
Special Assistant U.S. Attorney Graham Stolle 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. 2:23-cr-3.
New York Man Sentenced to 11 Years in Prison for Conspiring to Distribute Fentanyl, Methamphetamine and HeroinRead the Press Release
NEWARK, N.J. – A New York man was sentenced to 132 months in prison for participating in a conspiracy to distribute fentanyl, methamphetamine and heroin in New Jersey from locations in Manhattan, U.S. Attorney Philip R. Sellinger announced today.
Juan Carlos Merced Moreno, aka “Samuel,” 45, of Manhattan, New York, pleaded guilty by videoconference on Dec. 20, 2022, before U.S. District Judge Claire C. Cecchi to a superseding information charging him with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl, 50 grams or more of a mixture and substance containing methamphetamine, and 100 grams or more of a mixture and substance containing a detectable amount of heroin. Judge Cecchi imposed the sentence on July 25, 2023, in Newark federal court.
According to documents filed in this case and statements made in court:
Moreno admitted that from November 2020 through January 2021 he conspired with others to distribute and possess with intent to distribute fentanyl, methamphetamine, and heroin. He admitted participating in the conspiracy from locations in Manhattan and that some of the controlled substances were transported to New Jersey.
In addition to the prison term, Judge Cecchi sentenced Moreno to four years of supervised release.
U.S. Attorney Sellinger credited members of the Department of Homeland Security, Homeland Security Investigations, New York City Airport Border Enforcement Security Task Force under the direction of Ivan J. Arvelo; special agents of Homeland Security Investigations Newark Airport Border Enforcement Security Task Force, under the direction of Special Agent in Charge Ricky J. Patel; members of the New York Police Department, under the direction of Commissioner Edward Caban; and investigators and assistant prosecutors from the Hudson County Prosecutor’s Office, under the direction of Hudson County Prosecutor Esther Suarez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.
Muncie Man Sentenced to 15 Years in Federal Prison for Armed Trafficking of Methamphetamine and FentanylRead the Press Release
INDIANAPOLIS- Anson O’Neal, 22, of Muncie, Indiana, has been sentenced to 15 years in federal prison after pleading guilty to possession of methamphetamine with intent to distribute and possession of firearms in furtherance of drug trafficking.
According to court documents, on January 31, 2022, agents with the Drug Enforcement Administration and Officers with the Muncie Police Department executed a search warrant at O’Neal’s home in Muncie, Indiana.
Officers found bags of methamphetamine in multiple locations throughout the house, including under the floor mat outside the front door, in a bedroom safe, and in a closet. The three bags of methamphetamine found on a closet shelf were stored directly on top of two loaded guns. A total of approximately 890 grams of methamphetamine was seized from the home. Investigators also seized approximately 63 grams of fentanyl, over $19,000 in cash, and a total of six firearms—including an AR-15 style rifle. O’Neal admitted that he possessed the methamphetamine and fentanyl with the intent to distribute the drugs to others, and that he possessed the guns in furtherance of his drug trafficking activities.
United States Attorney for the Southern District of Indiana, Zachary A. Myers, Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, and Muncie Police Chief Nathan Sloan made the announcement.
“Dealers of deadly drugs, armed with deadly weapons, are a poison in our communities,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Those who choose to endanger our families to further their own greed will be identified and prosecuted. With our federal, state, and local partners, we are committed to dismantling these operations and ensuring that dangerous criminals are taken off our streets and held accountable for their actions.”
The Drug Enforcement Administration and Muncie Police Department investigated this case. The sentence was imposed by U.S. District Court Judge, Sarah Evans Barker. Judge Barker also ordered that O’Neal be supervised by the U.S. Probation Office for 5 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Patrick G. Gibson, who prosecuted this case.
According to the Drug Enforcement Administration, as little as two milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people. 6 out of 10 illegal fentanyl tablets sold on U.S. streets now contain a potentially lethal dose of the drug.
One Pill Can Kill: Avoid pills bought on the street because One Pill Can Kill. Fentanyl has now become the leading cause of death in the United States. Fentanyl is a highly potent opioid that drug dealers dilute with cutting agents to make counterfeit prescription pills that appear to be Oxycodone, Percocet, Xanax, and other drugs. Fake prescription pills laced with fentanyl are usually shaped and colored to look like pills sold at pharmacies. For example, fake prescription pills known as “M30s” imitate Oxycodone obtained from a pharmacy, but when sold on the street the pills routinely contain fentanyl. These pills are usually round tablets and often light blue in color, though they may be in different shapes and a rainbow of colors. They often have “M” and “30” imprinted on opposite sides of the pill. Do not take these or any other pills bought on the street – they are routinely fake and poisonous, and you won’t know until it’s too late.
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Monmouth County Man Sentenced to 45 Months in Prison for Role in $1 Million ‘Upfront-Fee’ SchemeRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced today to 45 months in prison for his role in defrauding multiple victims through a $1 million “upfront-fee” scheme, U.S. Attorney Philip R. Sellinger announced.
Jerrid Douglas, 49, of Freehold, New Jersey, was convicted on Oct. 21, 2022, of wire fraud conspiracy and four counts of wire fraud following a five-week jury trial before U.S. District Judge John Michael Vazquez, who imposed the sentence today in Newark federal court. Two co-defendants were sentenced in June 2023 for their respective roles: Roy Johannes Gillar, 51, of Las Vegas, was sentenced to six years in prison, and Harold Mignott, 60, of Voorhees, New Jersey, was sentenced to three years in prison.
According to documents in this case and evidence at trial:
From March 2016 through June 2016, Douglas, Gillar, and Mignott, along with a fourth conspirator, agreed to defraud the owners of the victim company of approximately $1 million. The defendants fraudulently induced the two victim company owners to enter a joint venture agreement with the defendants’ New Jersey-based shell company. The defendants falsely represented that their company could acquire and provide a “standby letter of credit” (SBLC) backed by either €1 billion in cash or highly lucrative Mexican gold bonds. An SBLC is a guarantee of payment issued by a bank on behalf of a client that is used should the client fail to fulfill a contractual commitment with a third party.
The victim company wanted access to the standby letter of credit so it could purchase raw gold overseas and sell it to gold refineries. As part of the joint venture agreement, the company agreed to pay the defendants $1 million for the bank fee associated with the standby letter of credit.
In order to cover up the scheme and convince the victims to approve the transfer of the funds, the defendants made numerous verbal and written misrepresentations, including providing the victims with a phony letter from a major international bank saying that it was ready, willing, and able to provide a €1 billion SBLC to the defendants’ shell company.
However, after the victim company owners transmitted $800,000 of the $1 million to the defendants, the defendants failed to provide an SBLC or anything of value. Instead, the defendants misappropriated the money for their personal use.
In addition to the prison term, Judge Vazquez sentenced Douglas to three years of supervised release, restitution of $1.1 million, and forfeiture of $44,750.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Mexican National Sentenced to Life in Prison for KidnappingRead the Press Release
KANSAS CITY, Mo. – Jonathan M. Bravo-Lopez (also known as “Jonathan Vravo,” and “Shadow”), 27, a citizen of Mexico residing in Kansas City, Mo., was sentenced by U.S. District Judge Roseann Ketchmark to life in federal prison for conspiracy to commit kidnapping and kidnapping resulting in death. Bravo-Lopez was also sentenced to 24 months for unlawful reentry, which the court ordered to be served consecutive to the life sentences.
On Dec. 16, 2022, Bravo-Lopez and co-defendant Juan D. Osorio (also known as “Spexx”), 30, also a citizen of Mexico residing in Kansas City, Mo., were found guilty at trial of conspiracy to commit kidnapping and kidnapping resulting in death. Osorio was also found guilty of being an illegal alien in possession of a firearm. Bravo-Lopez was also found guilty of illegally reentering the United States after having been deported in 2016.
Osorio was sentenced on June 20, 2023, to life in federal prison without parole.
Evidence introduced during the trial indicated that Osorio and Bravo-Lopez conspired to kidnap Cristian Escutia in an attempt to rob him of money. They transported Escutia across state lines from Missouri to Kansas before fatally shooting him on April 3, 2017.
Osorio and Bravo-Lopez arranged to purchase $300 of marijuana from Escutia as a ruse to lure him into their kidnapping plan. On April 3, 2017, they met Escutia outside his residence and forced him into their vehicle, a Chrysler Pacifica, at gunpoint. Co-defendant Marco A. Sosa-Perea, 27, of Kansas City, Mo., who had remained in the car, drove them away from the scene of the kidnapping. The kidnapping was captured by the video surveillance system outside a nearby residence. When they drove to the 200 block of Donovan Road in Kansas City, Kan., they forced Escutia out of the vehicle. Escutia was shot three times and left to die on the side of the road.
Osorio, who is in the United States unlawfully, was in possession of an Action Arms Uzi .45-caliber semi-automatic pistol when he was arrested on April 7, 2017.
Sosa-Perea was sentenced on Feb. 6, 2023, to 10 years in federal prison without parole after pleading guilty to his role in the kidnapping conspiracy.
This case was prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Matthew A. Moeder. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Kansas City, Kan., Police Department.
Manchester Man Charged with Fentanyl and Crack Cocaine Distribution OffensesRead the Press Release
CONCORD – A Manchester man has been charged in connection with the distribution of fentanyl and crack cocaine, U.S. Attorney Jane E. Young announces.
Walter Velez, 41, was arrested and charged with distribution of controlled substances in connection with the sale of fentanyl to a confidential informant. Velez made an initial appearance in federal court on Friday, July 21, 2023. Velez was ordered temporarily detained and a detention hearing is scheduled for July 26, 2023, at 4:00 p.m.
According to the charging documents, Velez sold fentanyl and crack cocaine on four separate occasions totaling over 200 grams of fentanyl and over 20 grams of crack cocaine.
The charge of distribution of a controlled substance provides for a sentence of at least 5 years and up to 40 years in prison, at least 4 years of supervised release, and a fine of up to $5,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The U.S. Department of Homeland Security Investigations led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorney Geoffrey Ward is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Man Pleads Guilty to Straw Purchasing Firearm Recovered Near Fatal Odessa ShootingRead the Press Release
MIDLAND, Texas – An Odessa man pleaded guilty in a federal court in Midland on Monday to one count of false statement during purchase of a firearm.
According to court documents, on June 29, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) responded to a fatal shooting in Odessa. The agents located a Ruger firearm in their investigation and confirmed that it had been purchased on May 26 by Miguel Angel Rodriguez, 21. Further investigation revealed that Rodriguez had straw purchased at least four total firearms, including the Ruger, for persons other than himself.
Rodriguez is scheduled to be sentenced on Nov. 2 and faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jeffery C. Boshek II for the ATF Dallas Field Division made the announcement.
The ATF is investigating the case.
Assistant U.S. Attorney Joseph Mahoney is prosecuting the case.
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Leader of White Supremist Gang Receives 25 Years in Federal Prison for Armed Drug Trafficking and Assaulting an OfficerRead the Press Release
NEW BERN, N.C. – A self-proclaimed founder and leader of a white supremacist gang, known as the Aryan Kings (“AK”), was sentenced today to 25 years in prison for trafficking heroin and methamphetamine, illegal possession of a firearm, and assaulting a federal officer. David Milam, aka “DC,” age 39, pled guilty to the charges.
“We are partnering with local law enforcement to dismantle the leadership of violent drug trafficking gangs like the Aryan Kings. This defendant was found with narcotics, cash, white supremacist paraphernalia, and a half-dozen guns, including two assault rifles stored in his home,” stated U.S. Attorney Michael Easley. “After his arrest, Milam continued his disregard for the law, even assaulting law enforcement officer in a local jail. I am grateful to the Onslow County Sheriff’s Office, DEA, and ATF for their focus on this case and commitment to keeping North Carolina a safe place to live, work and raise a family.”
According to court documents and other information presented in court, Milam was the self-proclaimed founder and leader of a criminal organization that calls itself the Aryan Kings (“AK”), which has been identified as a white supremacist organization.
Around 2018, investigators received information that the Aryan Kings were engaged in criminal activity in the Onslow County area, including high-volume drug trafficking; violence, including assaults using machetes; witness intimidation; and discharging a firearm at a law enforcement officer.
During the course of the subsequent investigation into Milam and the Aryan Kings, agents executed search warrants on residences associated with Milam. Multiple guns, drugs, cash, and white supremacist paraphernalia were located.
In Milam’s bedroom, law enforcement found 31 grams of methamphetamine and 27 grams of heroin. In total, Milam was found accountable for at least two kilograms of methamphetamine during the course of the conspiracy.
Agents seized a loaded .40 caliber handgun, two 9 mm handguns, a .22 caliber rifle, and two assault rifles. White supremacist paraphernalia recovered included a gas mask marked with “AK” (for Aryan Kings), swastikas, and an “88,” which stands for Heil Hitler.
In addition, a notebook containing the Aryan Kings Creed, an American flag with swastikas glued on it, a spear with a swastika, and other items were also found.
Based on those search warrants, Milam pled guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and 100 grams or more of heroin; possession with intent to distribute a quantity of methamphetamine and heroin and possession of a firearm by a felon.
Between March and July 2021, while Milam was awaiting sentencing on the federal drug and gun charges, Milam was involved with others in a scheme to import contraband into the Pamlico County Jail, where he was being held.
On July 23, 2021, officers searched Milam’s cell for illegal contraband. Milam refused to leave the cell and punched an officer in the face. A second officer was also injured trying to subdue Milam.
“Poisonous drugs continue to flow into our communities at the expense of too many lives,” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration, Atlanta Division. “This violent drug trafficker must now deal with the consequences of his actions.”
“The result of this collaborative effort should serve as a warning to those who think bringing drugs and violence into our communities will go unpunished,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “ATF and our partners will continue to work to prevent violent crime and bring those responsible for it to justice.”
Onslow County Sheriff Chris Thomas said, “This case shows the value of the partnership between the Onslow County Sheriff’s Office, our Federal Partners and the US Attorney’s Office with our efforts to remove violent criminals from our communities.”
This is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Onslow, Duplin, Pamlico and Craven County Sheriffs’ Offices and the Farmville Police Department investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case Nos. 4:22-cr-00025-FL, 7:19-CR-102-FL, and 7:19-cr-00176-FL.
Lansing-Area Health System Agrees to Pay $671,300 to Settle False Claims Act Allegations Relating to Improper BillingRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Edward W. Sparrow Hospital Association d/b/a Sparrow Medical Group, Sparrow Care Network, and Sparrow Health System located in Lansing (collectively “Sparrow”) have agreed to pay $671,310 to resolve allegations that they violated the False Claims Act by misuse of “incident-to” billing.
“Truthful and accurate billing is crucial to our Medicare system,” said U.S. Attorney Mark Totten. “This settlement reflects the commitment of my office in working with our investigative agencies to protect the Medicare population and maintain the system of trust and accountability necessary between the patient, physician, and federal healthcare programs.”
An “incident-to” billing provision allows an Advanced Practice Provider (APP), including nurse practitioners and physician assistants, to treat a patient but bill the encounter under the physician’s name and reimbursement rate if certain criteria are met. Those criteria include the presence of an on-site doctor, that the physician performs the initial visit for the patient, and that the physician establish the patient’s diagnosis and treatment plan during the initial visit. If an APP appropriately performs a service “incident to” a physician’s oversight, the physician or their healthcare practice may submit a claim for 100 percent reimbursement for the patient encounter, as opposed to the 85 percent reimbursement rate if the APP billed services under their own billing number. The United States alleges that Sparrow improperly billed services under a physician’s name and reimbursement rate where the services were rendered by mid-level providers at Sparrow’s locations where the criteria for “incident-to” billing were not met.
“Improper billing in our federal health care programs wastes valuable taxpayer funds that are set aside to care for the wellbeing of those most in need,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) – Chicago Region. “HHS-OIG will continue to work with our law enforcement partners to ensure that those who engage in these practices are held accountable.”
U.S. Attorney Totten also commended Sparrow for its cooperation with the United States’ investigation, including undertaking an internal audit of violations alleged in the qui tam and sharing the results with the United States.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act against Sparrow. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam case is captioned U.S. ex rel. Patricia M. Crowe, M.D. v. Sparrow Medical Group, et al., No. 1:21-cv-00770 (W.D. Mich.).
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and Health and Human Services, Office of the Inspector General.
Assistant U.S. Attorney Carrie Almassian investigated the matter. Investigative support was also provided by the Department of Health and Human Services, Office of Inspector General.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Kevin Love Hubbard Appointed to Coordinate Affirmative Civil Enforcement Matters in the District of Rhode IslandRead the Press Release
PROVIDENCE – U.S. Attorney Zachary A. Cunha, announced today that he has appointed Kevin Love Hubbard, an Assistant U.S. Attorney in the Office’s Civil Division, to serve as Affirmative Civil Enforcement Coordinator, overseeing the District’s significant docket of civil investigations and litigation in which the federal government is suing to vindicate the public interest.
These civil cases are an important and significant part of the Office’s docket, and include actions under the federal False Claims Act, environmental enforcement statutes, civil matters involving the Controlled Substances Act and other federal laws. Affirmative civil enforcement cases frequently seek to recover funds that are paid out by the federal government as a result of healthcare, procurement, or related fraud; enforce compliance with federal law; and seek penalties for other types of publicly harmful conduct along with injunctive relief designed to stop conduct that violates various federal statutes.
AUSA Hubbard joined the United States Attorney's Office in 2021, from the partnership of Medina Orthwein; earlier in his career he served as a law clerk to the Honorable Neil Wake of the United States District Court for the District of Arizona. He is a graduate of the Pennsylvania State University and Yale Law School.
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Justice Department, EPA and the Mississippi Department of Environmental Quality Reach Agreement with City of Jackson on Proposal to Address Sewer System IssuesRead the Press Release
The Justice Department, Environmental Protection Agency (EPA), Mississippi Department of Environmental Quality (MDEQ) and the City of Jackson, Mississippi agreed to a proposed stipulated order, lodged today in federal district court, to expedite needed sewer system repairs and address spills of raw and undertreated sewage into homes, businesses, streets, yards and waterways. Under the terms of the agreement, the federal court would appoint Ted Henifin as interim third-party manager of the city’s sewer system. Henifin, who has been serving as interim third-party manager for the city’s drinking water system since November 2022, would manage, operate and maintain the city’s sewer system.
The proposal is an interim measure until the parties negotiate modifications to a judicially enforceable consent decree to achieve the sewer system’s long-term compliance with federal and state regulations. The proposed stipulated order is subject to a public comment period through Aug. 31, during which public meetings will be held in the City of Jackson.
“Under today’s agreement, expedited measures will be taken to address the City of Jackson’s deteriorating sewer infrastructure and inadequate operation and maintenance, which have caused residents and businesses to endure sewage discharges that threaten public health and the environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This action shows the continuing commitment of the Justice Department to seek justice, health and safety for the residents of Jackson, Mississippi, and to prioritize enforcement in the communities most burdened by environmental harm.”
“In November of last year, the Justice Department filed a proposal to appoint a third-party manager to oversee and implement improvements to Jackson’s drinking water system,” said Principal Deputy Assistant Administrator Larry Starfield of EPA’s Office of Enforcement and Compliance Assurance. “Today, we continue to protect the health and safety of Jackson residents by proposing the oversight and programs needed to restore Jackson’s sewer systems.”
“This agreement is an appropriate next step in our enforcement efforts to ensure that the City of Jackson lives up to its responsibility, pursuant to the federal Clean Water Act and Mississippi law, to address and correct issues with its sewer system,” said Executive Director Chris Wells of the Mississippi Department of Environmental Quality.
The agreement acknowledges that the city failed to achieve significant progress under a 2013 settlement among the parties that was entered by the federal court as a consent decree, and that the sewer system has further deteriorated over the last 10 years, resulting in violations of the settlement, the federal Clean Water Act (CWA), the Mississippi Air and Water Pollution Control Law (MAWPCL), and the city’s National Pollutant Discharge Elimination System (NPDES) permits associated with the sewer system.
The agreement requires implementation of certain programs and capital projects to improve the sewer system’s condition, operations, and maintenance that are anticipated to bring near-term relief to the city’s residents and businesses.
The interim third-party manager would have the authority to, among other things:
- Operate and maintain the city’s sewer system in compliance with the CWA, MAWPCL and NPDES permits;
- Implement capital improvements to the city’s sewer system. This includes a set of priority projects to investigate and repair certain areas of the sewer system (including 215 areas previously identified by the city as emergency sewer failure locations), and certain repair work associated with the Savanna and Trahon wastewater treatment plants; and
- Implement or continue implementing programs to post signage about sewer overflows where there is a reasonable expectation of public exposure; keep fats, oils, and grease out of the sewer system; and clean and inspect lines on a recurring schedule.
Under the proposal, the Justice Department, EPA, MDEQ and the City of Jackson will resume negotiations within three years to modify the 2013 settlement to achieve long-term compliance with the CWA, MAWPCL and NPDES permits.
A copy of the proposed stipulated order and instructions for submitting public comments is available at www.justice.gov/enrd/consent-decrees. All comments must be electronically submitted or postmarked by Aug. 31.
Public meetings to receive comments are planned at the Mississippi e-Center, 1230 Raymond Road, Jackson, Mississippi on Aug. 21, 6:00 – 8:00 pm. Additional meetings are being planned and will be announced separately. For information and details on the public meetings, please visit www.epa.gov/ms/jackson-ms-sewer-system.
The case is being litigated by the Environment and Natural Resources Division’s Environmental Enforcement Section, in conjunction with EPA and MDEQ.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here.
Jury Finds District Man Guilty of Unlawful Possession of a FirearmRead the Press Release
WASHINGTON – A jury, sitting in U.S. District Court in the District of Columbia, today found Jonathan Johnson, 35, of Washington, D.C., guilty of unlawful possession of a firearm by a convicted felon. The verdict follows a three-day trial before the Honorable Florence Y. Pan, who scheduled a sentencing hearing for November 15, 2023.
According to the evidence presented at trial, shortly after 6:00 pm, on Tuesday, December 29, 2020, members of the Metropolitan Police Department patrolling on 13th Street SE, Washington, D.C., saw the defendant crouch behind his car and heard a gun dropped on the concrete curb. MPD Officers approached the defendant and found a gun lying where the defendant was previously bent down. Further examination revealed that the gun was modified with a “giggle” or “selector” switch, which turned the semi-automatic gun into a fully automatic machine gun. In addition, the firearm was loaded with 22 bullets in an extended magazine.
In announcing the conviction, U.S. Attorney Graves commended the work of those who investigated the case from the Metropolitan Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. They also expressed appreciation to those who worked on the case form the U.S. Attorney’s Office, including Assistant U.S. Attorneys Kevin Birney, Lauren Renaud, Janani Iyengar, William G. Hart, who investigated the case, and Josh A. Gold and Colin Cloherty who prosecuted the case.
Jorge R. Lopez, 31, was sentenced today in federal court in Omaha, Nebraska, for robbery and brandishing a firearm during a crime of violence.Read the Press Release
Acting United States Attorney Susan Lehr announced that Jorge R. Lopez, 31, was sentenced today in federal court in Omaha, Nebraska, for robbery and brandishing a firearm during a crime of violence. United States District Court Judge Brian C. Buescher sentenced Lopez to 30 months’ imprisonment on the robbery charge and 84 months’ consecutive on the brandishing charge, resulting in 114 months in the Bureau of Prisons. There is no parole in the federal system. After his release from federal prison, Lopez will begin a 3-year term of supervised release.
On July 1, 2022, officers responded to a radio call to Ground Floor Guitar in Omaha for an armed robbery. The store owner told officers that two men entered the store separately before displaying a black handgun and robbing the store owner of cash and property, specifically several guitars and at least one amplifier. Various customers were also robbed by being instructed to “hand over their wallets.”
Codefendant Marco Lopez instructed all the victims to move down into the basement where he locked them and a dog into a bathroom, telling them not to come out or he would “shoot them,” while displaying a handgun.
The victims eventually left the bathroom and called 9-1-1.
On July 2, 2022, Omaha Police were responding to a tip related to a residential break-in, which identified codefendant Marco Lopez as a suspect. Marco is cousins with Jorge Lopez. Jorge Lopez was interviewed and admitted that both he and Marco Lopez had robbed the guitar store and that Marco took the cash and guitars with him to Texas when he left after the robbery. Police searched the truck used in the robbery, finding a wallet belonging to one of the victims and other materials linking the truck to the robbery. Marco Lopez was located and arrested in Texas before being extradited to Nebraska.
Marco Lopez has pleaded guilty to the charges and is scheduled to be sentenced on September 7, 2023.
This case was investigated by the Omaha Police Department.
Jacksonville Tax Preparer Pleads Guilty to Preparing False Personal ReturnRead the Press Release
A Florida woman pleaded guilty today to aiding and assisting in the preparation of a false tax return.
According to court documents, Iona Coates of Orange Park, Florida, owned and operated Bits & Bytes Accounting Services Inc., a tax preparation and bookkeeping services company located in Jacksonville. Between 2015 and 2020, Coates reported wages and tax withholdings from Bits & Bytes on her personal tax returns, including $42,500 of withholdings on her 2017 return. However, as Coates knew, Bits & Bytes did not withhold and pay over any taxes to the IRS during those years. In total, between 2015 and 2020, Coates claimed false withholdings of $228,788.
Coates faces a maximum penalty of three years in prison, and also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Kevin Schneider and Wilson Stamm of the Justice Department’s Tax Division are prosecuting the case.
Holyoke Man Sentenced to Five Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Holyoke man was sentenced yesterday in federal court in Springfield for illegally possessing a firearm as a previously convicted felon.
Joe Anthony Montaner-Vazquez, 25, was sentenced by U.S. District Court Judge Mark G. Mastroianni to five years in prison and three years of supervised release. In April 2023, Montaner-Vazquez pleaded guilty to one count of being a felon in possession of a firearm.
In May 2022, Montaner-Vazquez was found in possession of a Glock 9-millimeter caliber pistol and 20 rounds of ammunition after he attempted to flee from police. Montaner-Vazquez was previously convicted of a felony and is prohibited from possessing firearms and ammunition.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Holyoke Police Chief David Pratt made the announcement today. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), 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.
Hartford Drug Trafficker Sentenced to More Than 9 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ERIC MUNOZ, SR., also known as “50,” 46, of Hartford, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 115 months of imprisonment, followed by four years of supervised release, for trafficking fentanyl and other narcotics.
According to court documents and statements made in court, in July and August 2021, the FBI’s Northern Connecticut Gang Task Force conducted eight controlled purchases of fentanyl from Munoz Sr. and his son, Eric Munoz, Jr., also known as “Bebo.”
Munoz Sr. and Munoz Jr. were arrested on August 25, 2021. On that date, a search of Munoz Sr.’s residence on Harbison Avenue in Hartford revealed approximately 900 grams of loose fentanyl, 280 wax folds of fentanyl, 41 rounds of assorted ammunition, and $15,888 in cash. A search of Munoz Jr.’s residence, also on Harbison Avenue, revealed more than 900 grams of loose fentanyl, approximately 3,800 wax folds of fentanyl, approximately 300 grams of cocaine, approximately 50 grams of crack cocaine, five handguns, and $29,921 in cash. A search of an apartment located on Capitol Avenue in Hartford, which Munoz Sr. and Munoz Jr. used to store, process, and package narcotics, revealed approximately 200 grams of loose fentanyl, 5,100 wax folds of fentanyl, 130 grams of cocaine, 88 grams of crack cocaine, and eight rounds of ammunition.
Munoz Sr. and Munoz Jr. have been detained since August 25, 2021.
On April 6, 2023, Munoz Sr. pleaded guilty to conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl.
Munoz Jr., 27, pleaded guilty to the same charge on April 11, 2023. He is scheduled to be sentenced on September 7.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Manchester Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Gladstone Couple Sentenced for Producing, Distributing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Gladstone, Mo., husband and wife were sentenced in federal court today for producing and distributing pornographic images of two child victims.
Joshua Paul Goodspeed, 47, and Jennifer Goodspeed, 38, were sentenced in separate appearances before U.S. District Judge Brian C. Wimes. Joshua Goodspeed was sentenced to 264 months in federal prison without parole. Jennifer Goodspeed was sentenced to 84 months in federal prison without parole.
The court also ordered Jennifer Goodspeed to pay $5,000 in restitution to each of 12 victims, or $3,000 to each victim if paid within 30 days of the sentencing hearing. The Goodspeeds will be required to register as sex offenders upon their release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout their life.
On March 9, 2023, Joshua Goodspeed pleaded guilty to one count of conspiracy to produce child pornography, one count of attempting to distribute child pornography over the internet, and one count of receiving child pornography over the internet. Jennifer Goodspeed pleaded guilty the same day to one count of attempting to distribute child pornography over the internet.
Joshua Goodspeed admitted he used two child victims to produce child pornography from Jan. 1, 2011, to March 12, 2012. He also admitted that he attempted to distribute child pornography on Nov. 17, 2020, and that he received child pornography over the internet on Feb. 29, 2012.
Jennifer Goodspeed admitted that she attempted to distribute an image of child pornography over the internet on Feb. 29, 2012.
Joshua Goodspeed pleaded guilty without a plea agreement.
According to Jennifer Goodspeed’s plea agreement, an FBI undercover investigation identified a social media file-sharing platform, which was knowingly accessing, importing, and maintaining video files that depicted the sadistic sexual exploitation, torture, and abuse of a toddler. Joshua Goodspeed was linked to an account on this social media site.
On June 16, 2012, the FBI executed a search warrant at the Goodspeeds’ residence. Federal agents seized Joshua Goodspeed’s iPhone, laptop and one computer hard drive, and interviewed both defendants. According to the plea agreement, Joshua and Jennifer Goodspeed admitted they took nude photos of two child victims.
Jennifer Goodspeed told investigators she sometimes sent some of the photos to her husband via cell phone or email while he was traveling.
Forensic examiners found hundreds of images of child pornography on the devices seized by agents, including photos of the two child victims that were produced by the Goodspeeds.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Kansas City, Mo, Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Oklahoma Private Prisoner Transport Officer Sentenced for Sexually Assaulting Pretrial DetaineeRead the Press Release
A former private prisoner transport officer was sentenced in the Northern District of Oklahoma to 15 years in prison followed by five years of supervised release for violating a male pretrial detainee’s civil rights by sexually assaulting him.
According to the plea agreement, at the time of the offense, Dewayne Lewis Dudley, 56, worked as a private prisoner transport officer for Blue Raven Services. As a private prisoner transport officer, Dudley performed the government function of picking up individuals who were arrested on out-of-state warrants and transporting those individuals back to the jurisdictions that issued the warrants. On Aug. 26, 2021, Dudley picked up the victim, a male pretrial detainee, from a jail in Booneville, Indiana, to transport him to a jail in Los Lunas, New Mexico.
On Aug. 27, 2021, before arriving in New Mexico, Dudley stopped the transport vehicle at a Holiday Inn Express, located in Marshfield, Missouri, where he rented a room. Dudley brought the handcuffed victim into the hotel room and told him to shower. After the victim showered, Dudley pointed a gun at the victim and told him to undress. Dudley then proceeded to grope the victim’s genitals. When the victim’s penis did not become erect, Dudley handcuffed himself to the victim, before going to sleep. Several hours later, Dudley resumed transporting the victim, before stopping the transport van at Dudley’s apartment, located in Claremore, Oklahoma. Against the victim’s protests, Dudley brought the handcuffed victim inside his apartment. While inside his apartment, Dudley again groped the victim’s genitals, causing the victim bodily injury. The victim said, “No!” and was able to break free and run outside of Dudley’s apartment. As part of the plea agreement, Dudley admitted that the victim did not consent to any of the sexual conduct, that there was no legitimate law enforcement purpose for it and that the sexual misconduct resulted in bodily injury to victim and included kidnapping.
“The defendant kidnapped and sexually assaulted a man entrusted to his care and custody, exploiting his authority and depriving this victim of his constitutional right to bodily integrity,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence sends a clear message that the Justice Department is committed to protecting victims of sexual violence carried out at the hands of law enforcement officials. The privatization of positions in law enforcement does not affect our determination to hold these individuals accountable when they violate our federal civil rights laws.”
“Dudley had a legal obligation to provide safe transport to the prisoner in his custody instead he violated him and his rights,” said U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma. “Our office is committed to protecting the judicial process and that includes protecting the rights of the accused.”
“The American public has an absolute right to trust that law enforcement officials will protect them, regardless of their class, status or creed. Dewayne Dudley violated that trust when he kidnapped and sexually assaulted a detainee in his care,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “Safeguarding the civil rights that every American is entitled to is fundamental to the FBI’s mission. We will continue to work tirelessly alongside our law enforcement partners to ensure predators like Dudley are prosecuted to the fullest extent of the law.”
The FBI Oklahoma City Field Office investigated this case.
Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Clay Compton for the Northern District of Oklahoma prosecuted this case.
Former Oakland Police Chief Sentenced for Misuse of Public FundsRead the Press Release
Acting United States Attorney Susan Lehr announced that Terry A. Poland, 34, of Fremont, Nebraska, was sentenced on July 25, 2023, by the Honorable Michael D. Nelson, United States Magistrate Judge, to three years of probation, 60 days of which must be served in jail as a condition of probation. There is no parole in the federal system. Poland pleaded guilty in April 2023 to Misuse of Public Funds. Poland paid $14,631.00 in restitution, agreed to surrender his law enforcement certification, and not to work as a law enforcement officer in the future.
During February 2020 to January 2021, Poland purchased about 27 gift cards in four transactions from a sporting goods store operating in Nebraska, using the charge account that the City of Oakland had at the store. Poland was the Oakland Police Chief at the time. The total value of the gift cards that Poland acquired with Oakland’s funds was $14,631.00.
Poland used the gift cards to acquire items for the use of himself and family members. Poland purchased among other things women’s and children’s clothing, an ice fishing house, an auger, fishing equipment and a basketball backboard. Poland made most purchases using the gift cards at store locations in Nebraska but made at least one purchase online.
An outside auditor questioned the acquisition of the gift cards. At the request of the outside auditor, the Oakland City Clerk requested additional receipts from Poland. Poland stated that all the gift cards were used to purchase ammunition for the Oakland Police Department and provided to the City Clerk five purported receipts, each captioned “Purchase Statement.” Each Purchase Statement was purportedly from the store and reflected the purchase of ammunition on a particular date during August 2020 to January 2021.
The Purchase Statements that Poland provided to the City Clerk were phony. They were not issued by the store, and the transactions, item numbers, and item descriptions did not match the store’s records.
This case was investigated by the Federal Bureau of Investigation.
Former D.C. Police Union Vice Chairman Sentenced for Time and Attendance Fraud SchemeRead the Press Release
WASHINGTON – Medgar Webster Sr., 52, of Washington, D.C., was ordered to pay full restitution to the District of Columbia for defrauding the city and the Metropolitan Police Department of $33,845.59. Superior Court Judge Errol Arthur sentenced Webster to six months in jail, suspended, 6 months of supervised probation, and 54 months of unsupervised probation.
Webster pleaded guilty on May 15, 2023, in Superior Court, to one count of first-degree felony fraud for committing time and attendance fraud on the Metropolitan Police Department.
According to court documents, Webster, a former MPD officer and Vice Chairman of the D.C. Police Union, engaged in unauthorized outside employment at three Whole Foods Market locations in Washington, D.C. between January 2021 and April 2022, while concurrently employed by MPD. Although employment outside of MPD may be permitted in certain circumstances, Webster never submitted the necessary administrative forms or received the proper authorizations, which are required by MPD, in part, to maintain records of an MPD member’s hours worked throughout the year.
Acting unchecked during this period, Webster stole more than $33,845 from MPD after billing MPD for regular, overtime and holiday hours that he never worked. In total, Webster worked more than 1,400 hours of outside employment at Whole Foods, of which 514 hours were worked simultaneously with time he fraudulently reported working for MPD. This double-billed time included submissions by Webster for 246.5 hours in overtime pay, at an adjustable hourly rate of $79.67 per hour.
This fraud prosecution is the result of a partnership between the Office of the Attorney General and the U.S. Attorney’s Office for the District of Columbia.
In announcing the guilty plea, U.S. Attorney Graves, D.C. Attorney General Schwalb, and MPD Acting Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department’s Internal Affairs Division. They also expressed appreciation for the work of those who investigated and prosecuted the matter, including Assistant U.S. Attorney Benjamin D. Bleiberg, and former Special Assistant U.S. Attorney Bayly Leighton, on detail from the Office of the Attorney General to prosecute local fraud and public corruption cases.
Former Columbus School Employees Association treasurer pleads guilty to misappropriating funds, agrees to pay restitutionRead the Press Release
COLUMBUS, Ohio – The former treasurer of the Columbus School Employees Association (CSEA) pleaded guilty in U.S. District Court here today to misappropriating $60,685.92 in CSEA funds.
Phelton Woods, 72, of Reynoldsburg, pleaded guilty to one count of bank fraud. Court documents say Woods wrote 359 unauthorized checks from the CSEA checking account to himself, which included forged signatures; wrote 16 unauthorized checks to a relative, who has no relation to the CSEA; and made 38 unauthorized cash withdrawals. The fraud took place between December 2009 and June 2016.
Woods agreed to pay restitution to CSEA’s insurance company. CSEA is a bargaining unit that is combined from 12 local unions within the Columbus City School District, which includes approximately 3,300 members.
A federal grand jury indicted Woods in April 2022. Bank fraud is punishable by up to 30 years in prison, but the Court will determine a sentence based on federal sentencing guidelines and the results of a pre-sentence investigation conducted by the court.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the plea entered before U.S. District Judge Edmund A. Sargus Jr. The United States Department of Labor Office of Labor Management Standards investigated the case. Assistant U.S. Attorney Brenda Shoemaker is representing the United States.
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Former Chairman of 1 Global Indicted for Running $250 Million Securities Fraud SchemeRead the Press Release
MIAMI – Carl R. Ruderman, 81, former chairman of 1 Global Capital LLC (“1 Global”) was indicted yesterday with orchestrating a sprawling fraud scheme that affected more than 3,400 investors in 42 different states. Four of Ruderman’s co-conspirators have already pleaded guilty for their role in this fraud.
Alan G. Heide, 65, of Lake Worth, Florida, the former 1 Global chief financial officer, pleaded to a single count information, charging him with one count of conspiracy to commit securities fraud (case no. 19-cr-60231), and was sentenced to 60 months in prison by U.S. District Judge Roy K. Altman. Judge Altman also ordered Heide to pay over $57 million in restitution to the victims of the scheme.
Andrew Dale Ledbetter, 81, of Fort Lauderdale, Florida, pleaded guilty to conspiracy to commit wire fraud and securities fraud (case no. 20-cr-60103), and was sentenced by Judge Altman to 60 months in prison. Judge Altman also ordered Ledbetter to pay over $148 million to the victims of the scheme.
Steven Allen Schwartz, 78, of Delray Beach, Florida, pleaded guilty to conspiracy to commit wire fraud and securities fraud (case no. 20-cr-60003), and was sentenced to 24 months in prison by Judge Altman. Judge Altman also ordered Schwartz to pay over $36 million in restitution to the victims of the scheme.
Jan Douglas Atlas, 78, of Fort Lauderdale, Florida, pleaded guilty to conspiracy to commit wire fraud and securities fraud (case no. 19-cr-60258), and was sentenced to eight months in prison by Judge Altman. Judge Altman also ordered Atlas to pay over $29 million in restitution to the victims of the scheme.
According to the indictment, 1 Global was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”). Ruderman was the chairman of 1 Global and Heide was the chief financial officer. Schwartz was a director and consultant at 1 Global, and also held out as a chief operating officer in the company’s marketing materials. Ledbetter was an attorney licensed in the State of Florida who had an of counsel position at Law Firm #1 and acted in a fundraising capacity at 1 Global beginning around 2015. Atlas was a partner at Law Firm #1 and acted as outside counsel for 1 Global.
The indictment alleges that to attract investments, Ruderman and others, made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements. Allegedly, investors were falsely told that 1 Global had audited financials by a public accounting firm, that the investor’s money would be spent on the MCAs, and that they could expect double-digit returns on their investments, among other things.
It is alleged that Ruderman spent 1 Global’s investor’s money on credit card payments, vacation travel, insurance payments for his art collection and valuable jewelry, drivers, nannies, housekeepers, mortgage payments for his house, tuition, and payments for a luxury car driven by his wife. Ruderman also diverted 1 Global investor money to businesses benefitting him and his family, without the investors’ knowledge.
According to the allegations, substantial questions arose during the operation of the business as to whether 1 Global was offering or selling a security and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission. Allegedly, these questions were raised by investors, investment advisors, and regulators. As alleged in the charging documents, Ruderman knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements. Such a classification would undermine the profits and fees that Ledbetter and other principals at 1 Global would be able to obtain from 1 Global’s operations.
As alleged in the indictment, at the request of Ruderman, Atlas authored two opinion letters in 2016 containing false information that Atlas allegedly knew would be used by 1 Global to operate the business unlawfully. The opinion letters falsely described the duration of the investment, among other things, omitting the automatic renewal aspect and that the investment was being targeted toward retail, non-sophisticated investors (such as IRA account holders). Allegedly, Ruderman and others at 1 Global used and relied on Atlas’s opinion letters to continue to raise money illegally, in numerous pitches and communications to investment advisors and investors.
1 Global filed for bankruptcy on July 27, 2018. As of that time, according to documents from related cases, 1 Global had more than 3,400 investors and had raised more than $250 million during the scheme. The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
Information about the related cases can be found here: https://www.justice.gov/usao-sdfl/1Global-Capital.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, and Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region, made the announcement.
U.S. Attorney Lapointe commended the investigative efforts of FBI Miami, IRS-CI Miami, and the FDIC-OIG, Atlanta Region, for their assistance. Assistant U.S. Attorneys Elizabeth Young and Amanda Perwin are prosecuting this case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
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-20303.
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Former Alfa Agent Pleads Guilty to Mail FraudRead the Press Release
BIRMINGHAM, Ala. – A former Alfa agent pleaded guilty today to mail fraud, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick Davis.
Bret Chappell, 44, of Warrior, pleaded guilty today before U.S. District Court Judge Anna M. Manasco to one count of mail fraud.
According to the plea agreement, Chappell was a licensed insurance agent working for Alfa Corporation (Alfa) in Hayden, Alabama. Between 2019 and 2022, Chappell devised a scheme to defraud numerous victims into surrendering existing Alfa life insurance policies for cash value and purchasing new Alfa Life Insurance policies covering the victims. In one instance, he convinced an elderly victim that Alfa offered certificates of deposit for purchase, when in fact Alfa is not a financial institution and does not offer certificates of deposit. Nonetheless, Chappell convinced the victim to cash two certificates of deposit from another bank, based on the belief that the victim would receive the product promised by Chappell. Chappell also prepared fraudulent documents that were purportedly issued by Alfa and delivered these fraudulent documents to the victims. Chappell convinced the victims to endorse the checks issued to them by Alfa. However, rather than using the funds to purchase legitimate policies covering the victims, Chappell deposited the funds into his personal bank account. In total, Chappell received funds from victims totaling $862,286.55.
The maximum penalty for mail fraud is 20 years in prison.
The U.S. Secret Service investigated the case, along with the Alabama Department of Insurance. Assistant U.S. Attorney Catherine L. Crosby is prosecuting the case.
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Federal Inmate Admits Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – A federal inmate serving a 10-year sentence for possessing child pornography admitted today to possessing images and videos of child sexual abuse while incarcerated, U.S. Attorney Philip R. Sellinger announced.
Daniel Baldwin, 32, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In June 2022, corrections officers found an SD card hidden in Daniel Baldwin’s clothing. A subsequent search of the SD card revealed hundreds of images and videos of child abuse, including depictions of prepubescent minors.
Because Baldwin has a prior federal conviction for possessing child pornography, the charge of possession of child pornography depicting prepubescent children carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 28, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea. He also thanked FCI Fort Dix staff for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
baldwin.information.pdfFederal Indictments Target San Gabriel Valley Gang Linked to Murder, Witness Intimidation, Illegal Gambling and Drug TraffickingRead the Press Release
LOS ANGELES – A coalition of federal and local authorities this morning announced federal charges against 10 members and associates of a San Gabriel Valley gang who are named in a series of federal grand jury indictments that allege a wide range of criminal conduct. The crimes alleged include the fatal shooting of a woman who was gunned down when a gang member attempted to kill a person who was providing information to law enforcement.
Today’s takedown targeted the Quiet Village (QV) street gang and is the result of an investigation that started soon after June 14, 2022, when a member of that gang murdered two El Monte police officers – Sergeant Michael Paredes and Officer Joseph Santana.
The investigation was conducted by the FBI’s San Gabriel Valley Safe Streets Task Force and involved agents and officers assigned to the Task Force from the FBI, the El Monte Police Department, the Los Angeles County Sheriff’s Department, the Pomona Police Department and the California Department of Corrections and Rehabilitation’s Special Service Unit. The Bureau of Alcohol, Tobacco, Firearms and Explosives participated in the investigation.
“A highly violent gang responsible for the murders of two brave police officers and others has now felt the weight of a collective law enforcement response. The gang’s days of terrorizing the community stop with today’s federal arrests,” said United States Attorney Martin Estrada. “The indictments we announce today should assure the community that we are here to protect you, and we will use our full resources to fight violent crime and thereby ensure that everyone in Southern California, no matter where they live, has a safe place to live and raise their families.”
“The San Gabriel Valley Safe Streets Task Force works with multiple law enforcement departments throughout the valley to address violent crime, including the alleged crimes by the gang members and associates being charged in Operation Silent Cadence,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “We expect this operation to deal a death blow to these criminal enterprises and their ability to maintain power in the neighborhoods they controlled, and to deliver a measure of justice to the families of the victims mercilessly targeted in the various crimes alleged.”
“Today, the El Monte Police Department, the FBI and all of our partner agencies told every American we will never stop in the pursuit of justice when the most heinous of crimes are committed that harm our communities,” said El Monte Police Chief Jake Fisher.
A total of 10 defendants are charged across four grand jury indictments and a criminal complaint. Today, two defendants were arrested; four were already in custody; and authorities are continuing to search for four fugitives. (Additional defendants were taken into custody today on local charges.)
The main indictment alleges violations of two federal racketeering statutes – a conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, and violent crimes in aid of racketeering – as well as firearms and narcotics offense. The remaining three indictments allege narcotics trafficking and firearms charges.
The RICO count – which charges three defendants – outlines the history of QV; its close alliance with another street gang, Whittier Varrio Locos (WVL); and its association with the Mexican Mafia prison gang. The indictment alleges three main areas of criminal conduct: an attempted murder of a rival gang member, the targeting of an informant that resulted in the death of a bystander, and the gang’s operation of a “casita” that offered illegal gambling and narcotics.
According to the 46-page RICO indictment:
The lead defendant in the case – Chase Carrillo, aka “Sicko,” 34, a shot caller in QV – became involved in a verbal altercation with a rival gang member in El Monte on January 13, 2022. That altercation ended with Carrillo and WVL shot caller Ronny Rojas shooting the rival gangster, who was struck 8 to 10 times and severely wounded. A man identified in the indictment as J.P. was ordered to drive the getaway vehicle.
Authorities investigated the incident and local prosecutors filed charges against Carrillo and Ronny Rojas. In early March 2022, Rojas obtained a police report about the incident that named J.P. as a person who provided authorities information about the shooting. Rojas asked WVL member Maria Garcia, who was present at the shooting, to distribute the report. Rojas later said it should go “to all the homies,” which the indictment alleges was a message to fellow gang members that “J.P. should be murdered for cooperating with law enforcement.”
On March 5, 2022, only two days after the police report began circulating among gang members, Carrillo and Garcia – who were driving a car rented with a credit card Garcia had stolen – encountered J.P. in the City of Commerce. Carrillo got out of the rental car and fired at least two rounds into the vehicle J.P. was riding in with the intent to kill him. J.P. was not hit, but the driver of the vehicle – a woman identified in court documents as M.F. – was fatally wounded.
Soon after this killing, Garcia attempted to sell the 9mm ghost gun Carrillo used to kill M.F. One week after the slaying, Garcia told another gang associate, “yeah she was driving his car” and later said, “sometimes you gotta take matters into your own hands, you know?”
QV members and associates also operated casita – an illegal gambling business – behind a smoke shop in Whittier. After the murder of the El Monte Police officers, gang members “placed posters, stickers, and graffiti at QV’s illegal gambling business and elsewhere to celebrate the actions of [the murderer] and in order to advance their gang’s reputation for violence and intimidate others.”
In addition to illegal gambling, the casita was used to distribute methamphetamine. The indictment specifically alleges that QV member Richard Guzman, 40, engaged in five transactions involving methamphetamine in July and August of 2022. The complaint alleges that Vincent Gutierrez also sold methamphetamine at the casita. Additionally, the indictment alleges that a Kansas-based gang member, 43-year-old Raphael Solorzano, drove 7 pounds of methamphetamine from Kansas to Southern California with the intent to sell the narcotics.
One of the three narcotics-trafficking indictments alleges that Ronny Rojas, while he was incarcerated in the Los Angeles County Jail in relation to the attempted murder offense, conspired with a relative to distribute suboxone, an opioid marketed as a treatment for opioid addiction, but which is sometimes abused.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The defendants taken into custody today are expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.
Each defendant faces a substantial prison sentence if they were to be convicted. For example, Carrillo, who is charged in the RICO count, a violent crime in aid of racketeering and using a firearm in a violent crime resulting in the death of M.F. would face a sentence of life without parole or a potential death sentence if he were convicted.
The FBI’s San Gabriel Valley Safe Streets Task Force, which includes the Drug Enforcement Administration, conducted this investigation. The Task Force received substantial assistance from the Whitter Police Department, the Bell Gardens Police Department, the Arcadia Police Department, the West Covina Police Department, the Covina Police Department, and the San Bernardino County Sheriff’s Department.
Assistant United States Attorney Jeremiah Levine of the Violent and Organized Crime Section is prosecuting this case.
Española Man Sentenced to 9 Years in Jail for CarjackingRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Martin Lopez was sentenced to 9 years in prison. A federal jury convicted Lopez, 38, of Española, New Mexico, on Oct. 14, 2022, of one count each of carjacking and brandishing a firearm during and in relation to a crime of violence.
A federal grand jury indicted Lopez on March 12, 2021. According to court records, on Oct. 31, 2020, the victim, identified as Jane Doe 1, who had been dating Lopez, ended the relationship that morning. Later that same day, she and a friend, Jane Doe 2, attempted to deliver Lopez’s belongings to his friend who worked at an O’Reilly’s Auto Parts store in Española. As Jane Doe 1 was retrieving Lopez’s belongings from her vehicle, Lopez appeared, threatened both women with a gun, forced his way into the driver’s seat and drove away with the two Jane Does.
Lopez struck both victims with his gun as he drove to nearby apartment complex where he pushed Jane Doe 2 out of the moving vehicle. Lopez threatened to kill her if she called the police. Before being pushed out, Jane Doe 2 was able to dial 911. The 911 recording captured the victims’ terrified screams and was played for the jury at trial. Lopez continued to drive Jane Doe 1 to a secondary location for a period of time. Later, New Mexico State Police were able to locate the car, Jane Doe 1, and Lopez. However, when law enforcement arrived, Lopez fled the area in Jane Doe 1’s vehicle.
Lopez has prior domestic violence related misdemeanor convictions from 2014, wherein he was given a suspended sentence and his probation was revoked three times. Lopez has been arrested on at least four other occasions for felony charges, none of which resulted in a conviction. Lopez’s sentencing guidelines were calculated at 154 to 177 months. The United States requested a sentence of 177 months. The court imposed a sentence of 108 months (9 years) imprisonment.
The United States commends Jane Doe 2 and the other witnesses who testified in this case.
Upon his release from prison, Lopez will be subject to 3 years of supervised release.
The Federal Bureau of Investigation and the New Mexico State Police investigated this case. Assistant U.S. Attorneys Jaymie L. Roybal and Letitia Carroll Simms are prosecuting the case.
Anyone experiencing domestic violence or who knows someone experiencing domestic violence can reach an advocate at the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or 1-800-787-3224 (TTY). In New Mexico, the Domestic Violence Resource Center is available by telephone at (505) 843-9123 or online at https://dvrcnm.org/.
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El Paso Man Sentenced to More Than Six Years in Prison for Trafficking CocaineRead the Press Release
ALPINE, Texas – An El Paso man was sentenced Monday in a federal court in Alpine to 78 months in prison for one count of conspiracy to possess with to distribute cocaine and a second count of possession with intent to distribute cocaine.
According to court documents, Jaime Gabriel Juarez, 50, was pulled over on Interstate 20 in Reeves County on Dec. 2, 2022. A search of his vehicle revealed multiple rectangular-shaped packages wrapped in plastic and resembling packages typically associated with kilogram quantities of narcotics. The substances in the packages tested positive for properties and characteristics of cocaine. Juarez admitted he was transporting the 2.5 kilograms of cocaine to Odessa.
Juarez was found guilty in a jury trial on April 18.
“I’m grateful to our law enforcement partners for their outstanding work in this case,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Their efforts led to the arrest and conviction of a drug smuggler who is now spending the next six years in prison.”
“We want the communities where we live to be safer and healthier,” said Special Agent in Charge Greg Millard of the DEA’s El Paso Division. “Therefore, we will not tire of pursuing those who manufacture and distribute illicit narcotics.”
The DEA and Reeves County Sheriff’s Department investigated the case.
Assistant U.S. Attorney Amy Greenbaum prosecuted the case.
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El Paso Man Sentenced to Eight Years in Prison for Marijuana TraffickingRead the Press Release
ALPINE, Texas – An El Paso man was sentenced Monday in a federal courthouse in Alpine to 96 months in prison for possession with intent to distribute marijuana.
According to court documents, Hector Bernal Jr., 36, was a passenger in a vehicle that entered the primary inspection lane at the Border Patrol Checkpoint in Alpine on Feb. 25. While Border Patrol agents determined citizenship of the driver and Bernal, a Border Patrol canine alerted the agents to the presence of illegal controlled substances. Agents then located eight large brick-shaped bundles in the rear passenger seat of the vehicle, which tested positive for characteristics of marijuana and collectively weighed approximately 112.7 kilograms, or 248.3 pounds.
“This lengthy eight year sentence reflects our commitment to combatting illegal drug trafficking and protecting our communities,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I appreciate the DEA’s continued efforts to prevent drug smuggling, ensuring that those who engage in such activities are held accountable.”
“Those individuals who break our nation’s laws by distributing illegal narcotics will be pursued by the men and women of the DEA,” said Special Agent in Charge Greg Millard of the DEA’s El Paso Division. “We thank our federal partners for their assistance in this case.”
On June 27, the driver, codefendant Hugo Mancinas, was sentenced to 60 months in prison for possession with intent to distribute marijuana.
The DEA and U.S. Border Patrol investigated the case.
Assistant U.S. Attorney Amy Greenbaum prosecuted the case.
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Eight Indicted, Accused of Stealing 19 Rental Cars in Nationwide SchemeRead the Press Release
ST. LOUIS – Eight people have been indicted in U.S. District Court in St. Louis on charges alleging that they defrauded a national car rental company and stole at least 19 vehicles worth more than $1.1 million.
Tyrell A. Oliver, 38, and Steven B. Matthews, 39, both of Atlanta, and New York residents Shawnta B. Fonseca, 32, Reginald M. Glenn, 35, Rashad Holder, 33, James E. McGhaney, 34, Marlique J. McGhaney, 33, and Daquasia M. Robinson, 32, were each indicted on a wire fraud conspiracy charge July 19. Other charges include wire fraud or both aggravated identity theft and wire fraud. The indictment was unsealed Wednesday as arrests began.
The indictment accuses the conspirators of reserving rental cars using stolen credit card information and stolen identities and then picking up and never returning those vehicles. The indictment says Oliver and other co-conspirators obtained stolen credit card information and personally identifying information belonging to multiple identity theft victims in the United States. Oliver then made car rental reservations using the stolen personal information and paid co-conspirators to pick up the vehicles, which were primarily SUVs, the indictment says. The conspirators flew to airports in the eastern United States and Midwest and used fake driver’s licenses and counterfeit credit cards to pick up the vehicles, the indictment says.
“This is just the tip of the iceberg when it comes to how criminals use people’s stolen identities,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “Perpetrators can easily and cheaply buy an endless supply of personal and credit card information. While the company in this case was the direct victim, innocent people were initially accused of theft because their stolen identities were used to commit the fraud.”
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Drugs Seized from Residence in Claiborne Parish Leads to 15+ Year Sentence for Haynesville ManRead the Press Release
SHREVEPORT, La. –United States Attorney Brandon B. Brown announced the sentencing of Dean Fitzgerald Williams, 40, of Haynesville, Louisiana. United States District Judge Elizabeth E. Foote sentenced Williams to 181 months (15 years, 1 month) in prison, followed by 5 years of supervised release for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. Williams pleaded guilty to the charges on February 8, 2023.
Law enforcement agents executed a search warrant at the residence of Williams on June 24, 2022. During the search of the residence, officers located methamphetamine, crack cocaine, and a scale in a storage room in the residence. Inside the master bedroom of the residence, law enforcement agents located additional crack cocaine (approximately 8.5 gross grams) and approximately 680.2 grams of marijuana. A Sig Sauer pistol, model: 1911 We the People, caliber: .45 Auto was located in Williams’ bedding and a Hi-Point pistol; model: C9; caliber: .9mm, was located under his mattress and box springs, as well as approximately $13,000 in cash, which he admitted post-Miranda to be drug proceeds.
The narcotics were sent to the DEA Southeast Laboratory in Miami, Florida who analyzed them and determined the drugs to be 419.8 grams of methamphetamine actual (pure) and 113.0 grams of cocaine base. Williams admitted that the narcotics found in his residence belonged to him included the methamphetamine found in the storage room and that he possessed both firearms in furtherance of the commission of the drug trafficking offense charged, possession with intent to distribute 50 grams or more of methamphetamine.
The case was investigated by the DEA, ATF, Claiborne Parish Sheriff’s Office, Lincoln Parish Sheriff’s Office and Ruston Police Department and was prosecuted by First Assistant U.S. Attorney Jerry Edwards and Assistant U.S. Attorney Tennille M. Gilreath.
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Drug User Who Possessed Firearm Sentenced to 66 Months in Federal PrisonRead the Press Release
A man who discharged firearms in December 2021 and May 2022 was sentenced today to more than five years in federal prison.
Romeo Kuykendall, age 20, from Waterloo, Iowa, received the prison term after a March 22, 2023 guilty plea to possessing a firearm as a prohibited person.
Evidence at the sentencing hearing showed that, in December 2021, Kuykendall shot multiple times in the air and then at an occupied vehicle. Some of the bullets hit a neighboring occupied residence. Part of this shooting was captured on smart doorbell footage taken from the house that was hit. Then, in May 2022, Kuykendall again discharged a firearm, this time in a residence with a sleeping child. Law enforcement received a 911 call based on this incident and later stopped a vehicle that Kuykendall was in. In the vehicle, officers found two firearms that Kuykendall admitted were his. Kuykendall also admitted that he used marijuana multiple times a week and his urine tested positive for marijuana metabolites.
Kuykendall was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Kuykendall was sentenced to 66 months’ imprisonment and must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system. Kuykendall is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and Special Assistant United States Attorney Devra Hake. It was investigated by the Waterloo Police Department.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2046.
Follow us on Twitter @USAO_NDIA.
Doctor Convicted of Unlawfully Distributing OpioidsRead the Press Release
A federal jury in the Middle District of Tennessee convicted a medical doctor today for unlawfully distributing controlled substances.
According to court documents and evidence presented at trial, Bowdoin Smith, 67, of Carthage, Tennessee, unlawfully prescribed controlled substances, including opioids such as oxycodone and morphine. Smith, a doctor of osteopathy, owned and operated a general practice medical clinic in Carthage where he knowingly prescribed opioids outside the usual course of professional practice and without a legitimate medical purpose. In 2012, the Tennessee Department of Health placed Smith’s medical license on probation for three years because he routinely prescribed greater amounts of controlled substances than were medically necessary for his patients. After the probation was lifted, Smith continued to write unlawful prescriptions between 2016 and 2019, regularly ignoring the signs of drug abuse and addiction in his patients.
The jury convicted Smith of three counts of unlawful distribution of controlled substances. He faces a maximum penalty of 20 years in prison on each count. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Henry C. Leventis for the Middle District of Tennessee, Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration (DEA) Louisville Field Division, Special Agent in Charge Tamala Miles of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
The DEA, HHS-OIG, and TBI investigated the case.
Trial Attorneys Leslie Williams Fisher and Kelly Lyons of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in late 2018, ARPO has partnered with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout Alabama, Kentucky, Ohio, Virginia, Tennessee, and West Virginia to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. Over the past three years, ARPO has charged over 115 defendants collectively responsible for issuing prescriptions for over 115 million controlled substance pills. To date, more than 84 ARPO defendants have been convicted. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Departments of Justice, Commerce and Treasury Issue Joint Compliance Note on Voluntary Self-Disclosure of Potential ViolationsRead the Press Release
The Justice Department, Department of Commerce’s Bureau of Industry and Security (BIS), and Department of the Treasury’s Office of Foreign Assets Control (OFAC) today issued a joint compliance note focusing on the voluntary self-disclosure policies that apply to U.S. sanctions, export controls and other national security laws, including recent updates to certain of those policies. Today’s note marks the second collective effort by the three agencies to inform the private sector about enforcement trends and provide guidance to the business community on compliance with U.S. sanctions and export laws.
“American businesses play a vital role in defending our national security because they are gatekeepers for sensitive technologies and key participants in the financial system,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Responsible companies that come forward as soon as they learn of potential sanctions and export control violations will benefit from the protections of these self-disclosure policies.”
“When it comes to protecting our cutting-edge technology from falling into the wrong hands, industry is our first line of defense,” said Assistant Secretary Matthew S. Axelrod of the Department of Commerce’s Office of Export Enforcement. “As this joint compliance note makes clear, we need companies to tell us when they have potentially violated our rules and offer them concrete benefits for doing so.”
The compliance note describes the voluntary self-disclosure policies of BIS, the Justice Department’s National Security Division, and OFAC, and highlights recent updates related to these policies. Additionally, the compliance note highlights the Financial Crime Enforcement Network (FinCEN)’s Anti-Money Laundering and Sanctions Whistleblower Program, which incentivizes individuals in the United States and abroad to provide information to the government about violations of U.S. trade and economic sanctions, in addition to violations of the Bank Secrecy Act.
“As adversaries leverage increasingly sophisticated efforts to evade international sanctions and export controls, it’s more important than ever to maintain open communication between the public and private sectors,” said Director Andrea Gacki of the Department of the Treasury’s Office of Foreign Assets Control. “By taking advantage of our voluntary self-disclosure policy, companies can both help themselves and help us protect our financial system.”
The note underscores the importance of an effective and robust compliance program. If a company discovers a potential violation, whether it is an administrative or criminal violation, that company must promptly disclose and remediate. Not only does such reporting make the disclosing company potentially eligible for significant mitigation, but it also alerts national security agencies to activities that may pose a threat to the national security and foreign policy objectives of the U.S. government.
The full compliance note is available here.
Tri-Seal Compliance NoteCoalport Man Pleads Guilty to Possessing with the Intent to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A resident of Coalport, PA, pleaded guilty in federal court to charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
Jacob Troxell, age 33, of Coalport, PA pleaded guilty to Count One of the Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on or about on or about July 22, 2019, Troxell did possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for November 29, 2023. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation that led to the prosecution of Troxell.
Cedar Rapids Man Sentenced in Relation to February 2021 Shooting in MarionRead the Press Release
A Cedar Rapids man who shot a Marion man eight times in February 2021 was sentenced today to the maximum possible punishment, a decade in federal prison.
Anthony Fisher, age 23, from Cedar Rapids, Iowa, received the prison term after a January 26, 2023, jury verdict finding him guilty of possession of ammunition as a convicted felon.
The evidence at trial showed that, on February 16, 2021, Fisher and two other men broke into a Marion man’s residence with the intent of stealing money and possibly marijuana. Immediately after the three men entered the residence, Fisher shot the Marion man eight times without any apparent provocation. The three men, including Fisher, then fled the scene. Emergency personnel responded quickly and provided aid to the victim, who survived. The victim’s young child was also found near where the victim had been shot. Law enforcement never recovered the firearm Fisher used to shoot the victim; however, the jury found Fisher unlawfully possessed the eight rounds of ammunition used to shoot the victim. At the time of the shooting, Fisher was prohibited from possessing firearms or ammunition as he was a felon. Fisher had previously been convicted of interference with official acts – dangerous weapon, a felony offense, in state court in April 2020.
Fisher was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Fisher was sentenced to 120 months’ imprisonment, the highest sentence allowed by statute. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorneys Dillan Edwards and Tony Morfitt and was investigated by the Marion Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-00013-LTS.
Camden County Man Admits Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – Camden County, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Robert Giles, 71, of Collingswood, New Jersey, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court to an indictment charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
On April 15, 2022, agents with FBI served a search warrant at Giles’s residence and discovered electronic devices that belonged to Giles. A forensic examination of those devices revealed over 45,000 unique files containing videos and images of children being sexually abused.
The charge of possession of child pornography carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Nov. 29, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, with the investigation leading to today’s guilty plea. He also thanked the Collingswood Police Department for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Johns of the Criminal Division in Camden.
giles.indictment.pdfBritish Investor and Billionaire Businessman Joseph Lewis Charged with Insider Trading and Financial FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging JOSEPH LEWIS and his co-conspirators, PATRICK O’CONNOR and BRYAN WAUGH, a/k/a/ “Marty Waugh,” with insider trading securities fraud and related charges. The defendants were arrested this morning and will be presented later today.
U.S. Attorney Damian Williams said: “My Office, the Southern District of New York, has indicted Joe Lewis, the British billionaire, for orchestrating a brazen insider trading scheme and his co-conspirators and personal pilots, Patrick O’Connor and Bryan ‘Marty’ Waugh. We allege that, for years, Joe Lewis abused his access to corporate boardrooms and repeatedly provided inside information to his romantic partners, his personal assistants, his friends, and his pilots. Those folks then traded on that inside information – and made millions of dollars in the stock market – because, thanks to Lewis, those bets were a sure thing. None of this was necessary. Joe Lewis is a wealthy man, but as we allege, he used inside information as a way to compensate his employees or to shower gifts on his friends and lovers. That’s classic corporate corruption. It’s cheating. And it’s against the law – laws that apply to everyone, no matter who you are.”
FBI Acting Assistant Director in Charge Christie M. Curtis said: "As alleged, Lewis and his associates used material, non-public information for the personal benefit of themselves and close associates, despite knowing that the activity was illicit. This type of behavior - blatant disregard for the law - is not only illegal but undermines the integrity of our financial markets. The FBI is determined to ensure that anyone willing to perpetrate insider trading schemes is held accountable in the United States criminal justice system."
According to the allegations contained in the Indictments unsealed in Manhattan federal court and court filings:1
JOSEPH LEWIS is a billionaire businessman and investor who is the principal owner of the Tavistock Group, an international private investment organization. By virtue of LEWIS’s investments in certain companies, he has controlled one or more board of director seats at those companies and has deputized employees to serve on various company boards. In turn, through these employees, LEWIS received material, non-public information about these companies, including, for example, information about upcoming favorable test results for biochemical companies. LEWIS, on multiple occasions over the course of several years, then misused and misappropriated this confidential information to provide stock tips to various individuals in his life, including his employees, romantic partners, and friends, as a way to provide them with compensation and gifts. These individuals, in turn, traded on the tips provided by LEWIS for vast personal gain.
In addition, LEWIS conspired with others to hide his ownership shares of a pharmaceutical company through a pattern of false filings and misleading statements. More specifically, LEWIS was required to file schedules of share ownership with the Securities and Exchange Commission (“SEC”) because he was an owner of more than 10% of the stock of Mirati Therapeutics (“Mirati”). LEWIS reported to the SEC that he owned between 16 and 19.99% of the stock, when, in reality, he beneficially owned more than 19.99% of Mirati stock through an elaborate array of shell companies and other entities, including an offshore trust purportedly for the benefit of his granddaughter. As a result of the false disclosure of his ownership, LEWIS was able to exercise warrants in Mirati that he would otherwise not have been able to exercise, at vast financial gain. At one point, when HSBC bank inquired about a transaction related to Mirati, LEWIS’s employee falsely told HSBC that the transaction was the repayment of a loan from LEWIS, a false explanation that LEWIS had told him he was “happy with,” despite knowing it was false.
PATRICK O’CONNOR and BRYAN WAUGH are two pilots employed by LEWIS to fly his private aircraft. LEWIS tipped both O’CONNOR and WAUGH and encouraged them to trade based on material, non-public information. In one instance, LEWIS gave O’CONNOR and WAUGH loans, each worth $500,000, so they could buy a company’s stock before the public release of favorable clinical results. In connection with that loan, O’CONNOR texted a friend to buy the stock, told the friend the “Boss is helping us out and told us to get ASAP,” and assured the friend that “All conversations on app is encrypted so all good. No one can ever see.” O’CONNOR also texted the friend that “Boss mentioned around 6 to 8 weeks for [Mirati] to take profit” and that he thought “the Boss has inside info” and “knows the outcome” of not-yet-public clinical testing. O’CONNOR and WAUGH later sold the stock they had purchased on the basis of these tips for a profit, as did LEWIS’s assistant and friends.
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LEWIS, 86, a British national, has been charged with 13 counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison; three counts of securities fraud under Title 18, each of which carries a maximum sentence of 25 years in prison; and three counts of conspiracy, each of which carries a maximum sentence of five years in prison.
O’CONNOR, 66, of Preston Hollow, New York, has been charged with four counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison; three counts of securities fraud under Title 18, each of which carries a maximum sentence of 25 years in prison; and one count of conspiracy, which carries a maximum sentence of five years in prison.
WAUGH, 64, of Lynchburg, Virginia, has been charged with four counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison; three counts of securities fraud under Title 18, each of which carries a maximum sentence of 25 years in prison; and one count of conspiracy, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI. He also expressed appreciation for the SEC, which separately initiated civil proceedings against the defendants today. Mr. Williams further thanked the Justice Department’s Office of International Affairs for its assistance during this investigation.
This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Nicolas Roos, Jason A. Richman, and Alex Rossmiller are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
1 As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Joseph Lewis Indictment U.S. v. Joseph Lewis et al IndictmentBristol Man Pleads Guilty Fraud and Tax OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, announced that JOHN HORVATH, 72, of Bristol, waived his right to be indicted and pleaded guilty today in New Haven federal court to fraud and tax offenses.
According to court documents and statements made in court, Horvath was licensed by the State of Connecticut as a resident insurance producer, which authorized him to sell various forms of insurance. In that capacity, he sold annuity contracts issued by Allianz Life Insurance Company of North America (“Allianz”) to clients. Beginning no later than July 2015 and continuing until April 2021, Horvath defrauded several clients by advising them that they could achieve better rates of return through alternative investments, rather than their existing annuity contracts, and that he could broker and manage those investments for them. Victim-investors gave Horvath investment funds with the expectation he would manage the funds for them. Instead, Horvath commingled the victim-investors’ funds with his own and used the pooled money to pay personal expenses and repay earlier victim-investors.
Through this scheme, Horvath defrauded at least eight victims out of approximately $1,189,200.
In addition, Horvath failed to pay income taxes on his substantial income from the scheme, resulting in a loss to the government of $267,739 for the 2015 through 2020 tax years.
Horvath pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on October 18.
Horvath is released on a $50,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Conor M. Reardon.
Brighton Food Truck Business Owner Sentenced to Two Years in Prison for $1.5 Million COVID-Relief Fraud SchemeRead the Press Release
BOSTON – The owner of a Massachusetts-based food truck business was sentenced yesterday in federal court in Boston for filing fraudulent loan applications in order to obtain $1.5 million in pandemic relief under the Coronavirus Aid, Relief and Economic Security (CARES) Act and the American Rescue Plan Act.
Loc Vo, 56, of Brighton, Mass., was sentenced by U.S. Senior District Court Judge William G. Young to two years in prison and two years of supervised release. Vo was also ordered to pay $1,516,606 in restitution and forfeiture. Vo pleaded guilty to one count of wire fraud in January 2023.
Vo owned Smart Gourmet LLC (Smart Gourmet), a food truck business in Massachusetts, and Indy Publish, a dormant Maryland company. Between April 2020 and July 2021, Vo submitted loan applications on behalf of these businesses under three Small Business Administration pandemic relief programs: the Paycheck Protection Program, the Economic Injury Disaster Loan Program and the Restaurant Revitalization Fund . In these applications, Vo requested approximately $1.5 million and committed to use the funds for rent, mortgage interest, payroll and utilities, among other eligible expenses.
After receiving the relief funds, Vo immediately transferred most of them to brokerage accounts in his name to purchase shares in an electric car manufacturer, an internet marketplace company and a biotechnology company, among others.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Another is the EIDL, through which the SBA offers loans that can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred. The American Rescue Plan Act established the RRF to provide funding to help restaurants and other eligible businesses keep their doors open through forgivable loans for eligible uses.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, 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 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 at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Ashville Man Pleads Guilty to Producing and Possessing Material Depicting the Sexual Exploitation of a MinorRead the Press Release
JOHNSTOWN, Pa. – A resident of Ashville, PA, pleaded guilty in federal court to charges of production and possession of material depicting the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
Michael Sollenberger, age 41, of Ashville, PA pleaded guilty to Counts One, Two, and Three of the Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from on or about Jan. 8, 2019 to Jan. 8, 2020, and from on or about Feb. 21, 2018 to Feb. 21, 2019, Sollenberger produced images of minors engaged in sexually explicit conduct using materials that were shipped or transported in interstate or foreign commerce. Further, from on or about June 10, 2020 to June 12, 2020, Sollenberger possessed images of minors engaged in sexually explicit conduct, which were produced using prepubescent minors engaging in sexually explicit conduct. The images were produced using materials that were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for November 30, 2023. The law provides for a total sentence of 120 years in prison, a fine of $750,000, or both. According to the terms of the plea agreement accepted by the Court, Sollenberger will be sentenced to at least 35 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations and Pennsylvania State Police conducted the investigation that led to the prosecution of Sollenberger.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anchorage Man Guilty on All Drug and Firearm ChargesRead the Press Release
ANCHORAGE, Alaska – A federal jury convicted an Anchorage man yesterday on three felony counts, including one count of possession of controlled substances with intent to distribute, and two firearm related charges, following a trial spanning a week and a half.
The charges included one count of possession of controlled substances with intent to distribute, one count of possession of firearms in furtherance of a drug trafficking crime and one count of being a felon in possession of firearms and ammunition.
According to court documents and evidence presented at trial, Charles Rashid Malik Lee, aka “Cheese”, 41, had been under investigation by federal authorities. The FBI and Drug Enforcement Administration (DEA) executed a search warrant on Lee’s residence and vehicle in Anchorage, Alaska, on Oct. 12, 2021.
Agents made contact with Lee inside the residence and discovered a total of over 150 grams of methamphetamine, over 100 grams of heroin and over 90 grams of cocaine. According to evidence presented at trial, these controlled substances had a total street value of over $54,000. Agents also found tools commonly used by drug traffickers, including digital scales, branded baggies and two loaded handguns, among other findings. It was later determined that one of the digital scales had Lee’s fingerprint on it. Agents also discovered over $165,000 in cash that was hidden in multiple locations around the residence, including a crawl space.
Lee was indicted by a federal grand jury in December 2021.
Senior U.S. District Judge Timothy M. Burgess, who presided over the trial, scheduled sentencing for a later date. Lee faces a mandatory minimum sentence of 20 years. He will be held in the custody of the U.S. Marshals pending sentence.
“Charles Lee’s conviction is yet another step in our joint effort with local, state and federal law enforcement partners to make Alaskan communities safer for everyone,” said U.S. Attorney S. Lane Tucker of the District of Alaska. “Our office and partners are committed to using our resources to hold individuals accountable for the destruction their actions have on our communities.”
“Those responsible for trafficking dangerous drugs into our communities, threatening the health and safety of Alaskans in the process, will continue to face justice in this District,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “Unyielding in our pursuit, stopping the flow of deadly drugs into our communities continues to be a priority for the FBI and our law enforcement partners.”
The FBI’s Anchorage Field Office and the DEA investigated the case.
Assistant U.S. Attorneys Seth Brickey and Alana Weber prosecuted the case.
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American States Utility Services Settles Allegations of False Price Quotes at Federal Military InstallationsRead the Press Release
RICHMOND, Va. – American States Utility Services, Inc. (ASUS), located in San Dimas, California, agreed to pay $600,000 to settle allegations that it violated the federal False Claims Act by submitting inflated price estimates to the government.
Between April 2016 and May 2017, ASUS submitted price quotes for 19 water and sewer projects on U.S. military installations in North Carolina to the Defense Logistics Agency (DLA) at Fort Belvoir, Virginia. The United States alleged that each quote contained subcontractor costs that ASUS knew would not be expended, inflating the estimated cost of the project. DLA consequently evaluated the quotes for price reasonableness, which the United States alleged was based on the false premise that the projects would be performed with subcontractor costs. As a result, the government alleged that DLA overpaid more than $300,000 for these projects.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia; the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and the Department of the Army Criminal Investigation Division.
The matter was investigated by Assistant U.S. Attorney Robert McIntosh.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
The civil claims settled by this agreement are allegations only; there has been no admission of civil liability.
Alabama Man Sentenced to 21 Months in Prison for Possession of a Firearm by Convicted FelonRead the Press Release
Jackson, Miss. – A Bellamy, Alabama man was sentenced to one year and nine months in prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Acting Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Willie Roger Starks, Jr., 30, was found in possession of a firearm by a Lauderdale County Sheriff’s Deputy on October 27, 2019, during a traffic stop. Starks had a .40 caliber pistol in his car. Starks has a prior felony conviction for Burglary of a Dwelling and was under the supervision of the Mississippi Department of Corrections at the time. As a convicted felon it is contrary to federal law for Starks to possess any firearm.
Starks was indicted by a federal grand jury and pled guilty on March 14, 2023 to possession of a firearm by a convicted felon.
The Lauderdale County Sheriff’s Office and the ATF investigated the case.
Assistant U.S. Attorneys Adam T. Stuart and Charles W. Kirkham prosecuted the case.
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.
25 July 2023
华女对以营利为目的的签证欺诈和移民走私计划认罪Read the Press Release
今天早些时候，廖海燕（Haiyan Liao）在布鲁克林的联邦法院对签证欺诈和洗钱指控认罪，因为其参与了旨在将中国公民非法带入美国以谋取经济利益的多年计划。 廖某于2021年1月被起诉。
美国纽约东区检察官布雷昂·皮尔斯（Breon Peace）、司法部刑事司助理司法部长小肯尼斯·A·波利特(Kenneth A. Polite, Jr.)、美国国务院外交安全局（DSS）首席副助理部长兼调查代理副助理主任格雷戈里·巴特曼（Gregory Batman）宣布了此消息。
“向廖支付了过千美元，以助向联邦政府撒谎，将包括无人陪伴的未成年人等个人带入美国，以谋取私利，”美国检察官皮尔斯（Peace）说。“本办公室致力维护法治并保护我们移民流程的完整性。”
“刑事司致力于在法律允许的最大范围内起诉人口走私者和人贩子，”司法部刑事司助理总检察长 小肯尼斯·A·波利特(Kenneth A. Polite, Jr.)说。 “廖的定罪表明，对那些剥削弱势群体谋取个人贪婪的人士追究责任的承诺。”
“外交安全局的全球存在让我们的机构能够充当美国和外国执法机构之间的联络人，协助双方努力制止人口贩运，” DSS 代理副助理调查主任格雷戈里·巴特曼(Gregory Batman)说。 “今天的认罪证明 DSS 在全球的部署如何能够阻止人口贩运的浪潮，并针对捕猎这些受害者的犯罪分子。”
根据法庭文件，已入籍的美国公民、土生土长的中国公民廖某与他人参与一项计划，协助来自中国的非公民非法进入美国。廖透过向美国驻广州领事馆提交包含虚假陈述的申请，以欺诈手段为这些非公民取得旅客签证。对于申请被批准的非公民——包括四名未成年人——廖为他们前往美国提供了便利，包括陪同他们乘坐商业航班飞往约翰肯尼迪国际机场。该等非美国公民及其家人支付了上千美元才能到达美国。由于此计划，廖透过从中国到美国的电汇汇款获取了至少 98,673.72 美元的非法收益。
廖承认了串谋非法将非法移民带入美国以谋取经济利益，最高可判处五年徒刑和洗钱罪，最高可判处20年徒刑。联邦地区法院法官将在考虑美国量刑指南和其他法定因素后确定任何量刑。
DSS 刑事欺诈调查科对此案进行了调查。
纽约东区助理美国检察官诺米·贝伦森(Nomi Berenson)和司法部人权和特别起诉科的审判律师拉米·巴达维(Rami Badawy)正起诉此案。
被告：
廖海燕（Haiyan liao）
年龄： 45
内华达州拉斯维加斯
纽约东区法院案卷号：20-CR-500 (SJ)
Woman Pleads Guilty in Visa Fraud and Immigrant Smuggling SchemeRead the Press Release
A Las Vegas woman pleaded guilty today in the Eastern District of New York to money laundering conspiracy and conspiracy to unlawfully bring Chinese nationals into the United States for financial gain.
According to court documents, Haiyan Liao, 46, a naturalized U.S. citizen and native of China, engaged in a scheme with others to assist noncitizens from China in entering the United States by fraudulently obtaining visitor visas. Liao and her co-conspirators submitted applications containing false statements to the U.S. Consulate in Guangzhou, China. For the noncitizens whose applications were approved, Liao facilitated their travel to the United States and accompanied them on commercial flights to Queens and Brooklyn, New York. Four of the noncitizens were unaccompanied minors. The noncitizens and their families paid thousands of dollars to Liao and others to get to the United States. As a result of this scheme, Liao reaped at least $98,673.72 in illicit proceeds through wire transmissions from China to the United States.
“The Criminal Division is committed to prosecuting human smugglers who undermine the rule of law by trying to circumvent our lawful immigration system,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As Liao’s conviction demonstrates, we will continue to hold accountable people who take advantage of vulnerable populations for personal greed.”
“Liao was paid thousands of dollars to help lie to the federal government to bring individuals, including unaccompanied minors, into the United States for her own selfish gain,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This office stands committed to upholding the rule of law and protecting the integrity of our immigration process.”
“The Diplomatic Security Service’s global presence provides it with the expertise necessary to dismantle transnational human smuggling networks,” said Deputy Assistant Director of Investigations Robert Kelty of the U.S. Department of State’s Diplomatic Security Service (DSS). “Today’s guilty plea demonstrates DSS’ commitment to protecting vulnerable populations, stemming the tide of human smuggling and targeting those who abuse our nation’s visa system.”
Liao pleaded guilty to conspiracy to unlawfully bring aliens into the United States for financial gain, which carries a maximum penalty of five years in prison, and money laundering conspiracy, which carries a maximum penalty of 20 years in prison. She is scheduled to be sentenced on Dec. 8. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DSS Criminal Fraud Investigations Branch investigated the case.
Acting Deputy Chief Rami Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Nomi Berenson for the Eastern District of New York are prosecuting the case.
Virginia Man Sentenced to Federal Prison for Conspiring to Violate Iranian SanctionsRead the Press Release
Behrouz Mokhtari, 72, of McLean, Virginia, was sentenced today to 41 months in prison followed by three years of supervised release for violating U.S. sanctions against Iran by conspiring to engage in prohibited business activities on behalf of persons and entities in Iran. In addition, Mokhtari was ordered to forfeit approximately $2,862,598 in proceeds derived from his criminal activity as well as a residence he purchased in Campbell, California, for over $1.5 million using such proceeds.
Mokhtari pleaded guilty earlier this year in the District of Maryland to two counts of conspiracy to violate the International Emergency Economics Power ACT (IEEPA). According to court documents, Mokhtari engaged in a conspiracy lasting from at least March 2018 until at least September 2020 in which he conducted numerous business activities on behalf of Iranian entities without first obtaining the required licenses from the Office of Foreign Assets Control (OFAC). In a separate conspiracy lasting from about February 2013 until at least June 2017, Mokhtari and a number of Iranian nationals agreed to conduct illicit shipments of petrochemical products to and from Iran, utilizing his front company, East & West Shipping Inc., in Panama to do so.
Mokhtari held management positions and/or maintained ownership control of numerous businesses in Iran and the United Arab Emirates (UAE), collectively referred to as “the FSR Network.” Using the FSR Network, he and his co-conspirators illegally provided services to Iranian entities such as the refinement and transport of petrochemical products. Mokhtari and his co-conspirators used FSR Network bank accounts in the UAE, including Bitubiz FZE, to process these U.S. dollar transactions.
Mokhtari admitted that he knew that, as a U.S. citizen, engaging in business with Iranian entities without first obtaining a license or permission from OFAC is prohibited. He further knew that it was illegal to engage in transactions intended to evade Iranian sanctions, or to engage in transactions related to goods and services of Iranian origin or export.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Erek L. Barron for the District of Maryland and Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office made the announcement.
The FBI investigated the case.
Assistant U.S. Attorneys Kathleen O. Gavin for the District of Maryland prosecuted the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section.