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14 December 2022
Violent felon sentenced for illegal firearms conviction following shootingRead the Press Release
CORPUS CHRISTI, Texas – A 48-year-old Aransas Pass resident has been ordered to federal prison for possessing a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Kenny Don Jones pleaded guilty Sept. 21.
Today, U.S. District Judge Drew B. Tipton handed Jones a sentence of 90 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Jones changed his story with investigators about the shooting over the course of two interviews. In handing down the sentence, the court noted his significant criminal history, including a previous murder conviction and convictions for shooting two other individuals.
On July 20, 2021, authorities learned of a suspicious death. They traveled to the scene and met with the property owner where they found a deceased male subject on the property with a single casing from a discharged round near him in a milk crate.
Jones was also present and eventually reported that the firearm was his and that the deceased male had taken the firearm from his bag and pointed it at him. Jones claimed he he wrestled the firearm away from him and took a step back with the gun in hand. According to Jones, the victim lunged at him and Jones fired a round that struck the victim in between the eyes.
Following the shooting, Jones drove to Rockport where he threw the .9mm Smith & Wesson pistol out of his vehicle. He said he knew he was not supposed to have guns.
Law enforcement later obtained the gun Jones described.
Jones has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol Tobacco Firearms & Explosives conducted the investigation with the assistance of the Aransas Pass Police Department. Assistant U.S. Attorney Joel Dunn prosecuted the case.
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Violent drug trafficker and debt collector sentenced to 11 years in prisonRead the Press Release
Seattle – 26-year-old Kent, Washington man was sentenced today in U.S. District Court in Seattle to 11 years in prison for his role as a drug trafficker and debt collector for a cartel-connected drug distribution ring, announced U.S. Attorney Nick Brown. Jorge Mondragon pleaded guilty in July 2022 to conspiracy to distribute controlled substances and being a felon in possession of a firearm. At the sentencing hearing U.S. District Judge John C. Coughenour said, the sentence was driven by Mondragon’s involvement with “firearms and threats of violence.”
“Not only did Mr. Mondragon deal large amounts of meth and heroin, he also used violence and threats of violence on behalf of the drug ring,” said U.S. Attorney Brown. “These drugs not only destroy the lives of those who use them, they also destroy the lives of the users’ families and friends who are forced to watch the toll these drugs take on their son, their daughter, their mother, their father, their friend.”
As early as 2020, investigators repeatedly intercepted calls and surveilled Mondragon dealing in large quantities of methamphetamine and heroin. They also intercepted Mondragon in multiple conversations about the possession and sale of firearms and engaging in acts of violent debt collection on behalf of the drug trafficking organization. At one point, investigators heard Mondragon plotting with others to kidnap another dealer.
“The efforts by all our partners in this investigation show our collective commitment to keep our communities free of illegal controlled substances and safe by preventing violent individuals like Mr. Mondragon from carrying out the acts he planned and conspired to commit,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
In asking for an eleven-year prison sentence prosecutors wrote to the court, “Mondragon’s extensive involvement in gun possession and violence places him among the most violent individuals in this conspiracy. During the four months that law enforcement intercepted Mondragon’s activities, he engaged in multiple plots to kidnap and otherwise harm debtors, procured a seemingly endless supply of firearms for himself and organization leaders, was arrested three times for crimes (all of which involved gun possession), and agreed to “wheelchair” an individual for money – a plan he appeared intent on executing when he was intercepted by law enforcement with a loaded gun on his way to do the job.”
Mondragon will be on supervised release for five years following his prison term.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF
The investigation was conducted by the U.S. Drug Enforcement Administration’s (DEA) Tacoma Resident Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Thurston County Narcotics Team (TNT), the Federal Bureau of Investigation, and the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF).
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and C. Andrew Colasurdo.
Venezuelan Man Pleads Guilty to Cocaine PossessionRead the Press Release
St. Thomas – United States Attorney Delia L. Smith announced today that Erickson Bolivar, 32, of Venezuela, pleaded guilty before Magistrate Judge Ruth Miller to Conspiracy to Possess with Intent to Distribute Cocaine. Bolivar was one of three men charged with smuggling 41 kilograms of cocaine into the Territory.
According to court documents, on November 21, 2021, at approximately 4:37 a.m., Customs and Boarder Protection Air and Marine and Homeland Security Investigations agents detected a vessel on the northwest coast of St. Thomas, VI. The agents launched their interceptor vessel and later stopped the target vessel traveling west towards Puerto Rico without navigation lights. Onboard were Bolivar, the captain of the vessel, and two other occupants. Bolivar told agents that they were going fishing, but agents only found two fishing rods without any bait or lures. The vessel and its occupants were transported to Fajardo, PR, for further investigation. There, agents discovered brick-shaped objects containing a powder substance concealed in a hidden compartment in the stern of the vessel. A Drug Enforcement Administration laboratory analysis confirmed that the power substance was cocaine weighing approximately 41 kilograms.
The case was investigated by Homeland Security Investigations, Customs and Border Protection and Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Kyle Payne. This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCEDTF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transactional 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.
Venezuelan Boat Captain Apprehended Near St. Croix Sentenced in Conspiracy to Possess Cocaine on Board a Vessel CaseRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Vicent Mata Anyelo a/k/a Vicent Mata, age 33, the captain and last to be sentenced of eleven Venezuelan nationals apprehended at sea off the coast of St. Croix, was sentenced on December 13, 2022 to 65 months imprisonment followed by 2 years supervised release by U.S. Judge Wilma Lewis on the charge of conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. In addition, he must pay a $100 special assessment fee and is subject to deportation.
According to court documents, on the evening of September 25, 2019, the United States Coast Guard (USCG) Cutter Donald Horsley intercepted a suspicious 55-foot vessel named La Gran Tormenta displaying Venezuelan nationality indicia approximately 38 nautical miles south of St. Croix. Occupants of the La Gran Tormenta failed to respond to USCG’s efforts to engage in questioning of the crew, and upon detection, the La Gran Tormenta changed course and began jettisoning packages. Crew members from the USCG Cutter Donald Horsley subsequently retrieved two bales from the water. The two jettisoned bales contained packages with brick-shaped objects which were subsequently laboratory tested and found to contain approximately 49 kilograms of cocaine hydrocholoride (powder cocaine).
After requesting and receiving permission to stop the vessel from Venezuela, the flag state, USCG personnel attempted a right-of-visit boarding which was ineffective because crew on the La Gran Tormenta disregarded the USCG’s instructions. Eventually, USCG personnel obtained control of the La Gran Tormenta through use of an entanglement tactic which stopped the vessel’s engine. A USCG counter-drug boarding team later encountered 11 persons, including the defendant.
The case was investigated by the U.S. Coast Guard, U.S. Drug Enforcement Administration, and Customs and Border Protection. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz. This prosecution is part of an Organized
Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.Unlicensed Firearms Dealer Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Today, Desmon Taylor Moore, 24, of Charlotte, was sentenced to 37 months in prison followed by three years of supervised release on multiple firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, between 2021 and March 2022, Moore engaged in the manufacturing and sale of firearms without a license. ATF agents investigating Moore determined that Moore illegally sold conversion devices (commonly known as “Glock switches”) which enable a semi-automatic handgun to function as an automatic.
Moore also engaged in the sale of multiple firearms and privately-made firearms (or “Ghost guns”), some of which had been converted into machineguns using the illegal conversion devices. Federal law prohibits the possession of machineguns and defines “machinegun” to include parts designed or intended for use in converting a weapon into a machinegun. According to court records, two undercover ATF agents also attended a class Moore taught on how to build privately-made firearms and install Glock switches.
On July 26, 2022, Moore pleaded guilty to multiple firearms offenses, including dealing and manufacturing firearms without a license, and possession and transfer of machineguns. Moore is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons.
In making today’s announcement, U.S. Attorney King thanked the ATF for their investigation of the case.
Assistant U.S. Attorney David Kelly, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
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U.S. Navy Veteran Indicted for Allegedly Swindling Navy Members in Investment Fraud SchemeRead the Press Release
CHICAGO — A United States Navy veteran has been indicted on federal criminal charges for allegedly swindling retired and active-duty Navy members in an investment fraud scheme.
ROBERT L. MURRAY, JR, 43, of Chicago, was charged with four counts of wire fraud in an indictment returned Monday in U.S. District Court in Chicago. Arraignment is set for Dec. 16, 2022, at 11:30 a.m. before U.S. District Judge Manish S. Shah.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Securities and Exchange Commission. The government is represented by Assistant U.S. Attorney Brian Havey.
The indictment alleges that after retiring from the Navy, Murray occasionally traded securities online from his residence. He later founded an investment fund called Deep Dive Strategies LLC, which purported to invest in publicly traded securities. Murray solicited investors, including retired and active-duty Navy members, by portraying himself on social media as a skilled and successful options trader with an effective algorithm for trading securities, the indictment states.
The indictment alleges that Murray failed to invest or trade with all of the money provided to him by investors, instead using a portion of their funds to pay his personal expenses, including shopping, restaurant, and travel expenses. With the investor funds that Murray did use to conduct trades, he lost most of those funds by placing a highly risky bet on the “meme stock” GameStop, the indictment alleges. When investors later requested an accounting of their funds, Murray disregarded or refused their requests, the indictment states.
As a result of the scheme, investors lost all of the funds they entrusted to Murray to invest on their behalf, an amount totaling more than $342,000, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
U.S. Attorney Announces Fraud and Money Laundering Charges Against the Founders and Promoters of Two Cryptocurrency Ponzi SchemesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of the Department of Homeland Security (“HSI”), announced charges in two separate Indictments against the founders and promoters of two cryptocurrency Ponzi schemes known as IcomTech and Forcount (and later known as Weltsys). United States v. David Carmona, et al., 22 Cr. 551 (JLR), charges DAVID CARMONA, MARCO RUIZ OCHOA, MOSES VALDEZ, JUAN ARELLANO, DAVID BREND, and GUSTAVO RODRIGUEZ with conspiracy to commit wire fraud based on their involvement with IcomTech from in or about mid-2018 until in or about the end of 2019. United States v. Francisley da Silva, et al., S1 22 Cr. 622 (AT), charges FRANCISLEY DA SILVA, JUAN TACURI, and ANTONIA PEREZ HERNANDEZ with conspiracy to commit wire fraud and wire fraud based on their involvement with Forcount from in or about mid-2017 until at least in or about the end of 2021. SILVA and TACURI are also charged with conspiracy to commit money laundering, and HERNANDEZ is also charged with making false statements.
U.S. Attorney Damian Williams said: “With these two indictments, this Office is sending a message to all cryptocurrency scammers: We are coming for you. Stealing is stealing, even when dressed up in the jargon of cryptocurrency. Thanks to the efforts of federal, state, and international law enforcement, IcomTech and Forcount’s founders and promoters are being held to account.”
HSI Special Agent in Charge Ivan J. Arvelo said: “The excitement around cryptocurrency and the potential to make huge profits attracted would-be investors to the alleged schemes run by the individuals indicted today. With high end clothes and cars, these individuals are alleged to have presented a life of luxury to potential investors, but instead of a lucrative investment opportunity, the victims were fleeced of their savings and left with nothing to show for it. Homeland Security Investigations works tirelessly to uncover financial crimes and bring perpetrators to justice.”
As alleged in the Indictments:[1]
IcomTech and Forcount were both purported cryptocurrency mining and trading companies that promised to earn their respective victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products. The founders and promoters of each scheme falsely promised their respective Victims, among other things, that profits from the companies’ cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments and the doubling of those investments within six months. In reality, neither company was engaging in cryptocurrency trading or mining, and the founders and promoters of both schemes were using Victim funds to pay other Victims, to further promote the schemes, and to enrich themselves.
Both the IcomTech and Forcount defendants fraudulently induced their victims to invest in sham cryptocurrency activities using similar methods. The founders and promoters of the two schemes traveled throughout the United States and internationally where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York. During larger-scale events, the schemes’ promoters would present the schemes’ investment products and compensation plan, encourage Victims to invest as a means of achieving financial freedom, and boast about the amount of money they were earning. The schemes’ promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from the schemes. The atmosphere of these events was festive and designed to generate excitement about the schemes.
Victims invested in the IcomTech and Forcount schemes by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency. Following a Victim’s investment, they would be provided with access to an online portal where they could monitor their purported returns. While Victims saw “profits” accumulate on the schemes’ respective online portals, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments. By contrast, IcomTech and Forcount’s promoters siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on promotional expenses for the schemes, and used for personal expenditures such as luxury goods and real estate.
At least as early as August 2018 with respect to the IcomTech scheme, and in or about April 2018 with respect to the Forcount scheme, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so and, when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all. Despite these complaints, IcomTech and Forcount’s promoters, including the defendants, continued to promote their respective fraudulent schemes and accept Victims’ investments. As complaints mounted in both schemes, IcomTech and Forcount both began offering proprietary crypto-tokens for sale as a means of injecting liquidity into the schemes. Promoters of the schemes claimed that these tokens, known as “Icoms” in the IcomTech scheme and “Mindexcoin” in the Forcount scheme, would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services. This was false. In reality, they were essentially worthless and resulted in further financial loss to Victims. By in or about the end of 2019 with respect to IcomTech, and in or about 2021 with respect to Forcount, the schemes had stopped making payments to Victims and their chief promoters, including the defendants, stopped promoting the schemes, and, in some instances, stopped responding to Victims’ complaints altogether.
In addition to promoting the Forcount scheme, SILVA and TACURI also sought to conceal their fraud by laundering Victim funds through shell companies and making large personal expenditures on things like real estate and bulk cellphone purchases. On or about June 27, 2022, law enforcement officers with HSI stopped and interviewed HERNANDEZ as she was returning to the United States from Mexico. During the interview, HERNANDEZ falsely denied, among other things, being a Forcount promoter, recruiting investors, and taking money from them.
On November 8, 2022, United States v. David Carmona, et al., 22 Cr. 551 (JLR), was unsealed. As alleged in the Carmona indictment, CARMONA was the founder of IcomTech; OCHOA, VALDEZ, ARELLANO, and BREND were promoters of the scheme; and RODRIGUEZ was hired by CARMONA to build and maintain IcomTech’s website and online portal. On November 8, 2022, CARMONA was arrested in Queens, New York, and presented before United States Magistrate Judge Sarah L. Cave of the Southern District of New York; OCHOA was arrested in the District of New Hampshire; VALDEZ, ARELLANO, and RODRIGUEZ were arrested in the Central District of California; and BREND was arrested in the Middle District of Florida. The Carmona matter has been assigned to United States District Judge Jennifer L. Rochon.
On December 14, 2022, United States v. Francisley da Silva, et al., S1 Cr. 622 (AT), was unsealed. As alleged in the Silva indictment, SILVA was the founder of Forcount and TACURI and HERNANDEZ were promoters of the scheme. On December 14, 2022, TACURI was arrested in the Southern District of Florida. SILVA, a Brazilian national, has been in custody in Brazil since on or about November 3, 2022. HERNANDEZ remains at large. The Silva matter has been assigned to United States District Judge Analisa Torres.
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A chart containing the names of the defendants who were charged today and the charges and maximum penalties they face is attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of HSI, particularly HSI New York El Dorado Task Force/Securities Investigations Group, HSI Brasilia, HSI Tampa, and HSI Orlando; the New York City Police Department; the New York City Sheriff’s Office; the Bureau of Insurance Fraud, Property, and Casualty in the Division of Investigative and Forensic Services of the Florida Department of Financial Services; and the Florida Office of Financial Regulation. Mr. Williams also thanked the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Brazilian Federal Police for their assistance.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Benjamin A. Gianforti and Cecilia Vogel are in charge of the prosecution of the Carmona matter. AUSA Gianforti is also in charge of the prosecution of the Silva matter.
The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The United States Attorney’s Office for the Southern District of New York is committed to protecting the rights of crime victims. If you believe you are a victim of the IcomTech and/or Forcount schemes, our Victim/Witness Unit can make sure that you are notified of important stages of these cases to help you exercise your rights. In addition, our Victim/Witness Unit is available to answer questions you might have about these cases and can refer you to available resources.
Wendy Olsen Clancy
Victim/Witness Coordinator
United States Attorney’s Office
One St. Andrew’s Plaza
New York, New York 10007
(866) 874-8900
Wendy.Olsen@usdoj.gov
United States v. David Carmona, et al., 22 Cr. 551 (JLR)
Defendant
Age
Charges
Maximum Penalties
DAVID CARMONA,
Queens, NY
39
Count 1: Conspiracy to commit wire fraud
20 years in prison
MARCO RUIZ OCHOA,
Nashua, NH
34
Count 1: Conspiracy to commit wire fraud
20 years in prison
MOSES VALDEZ,
Hesperia, CA
26
Count 1: Conspiracy to commit wire fraud
20 years in prison
JUAN ARELLANO,
Chino, CA
46
Count 1: Conspiracy to commit wire fraud
20 years in prison
DAVID BREND,
Tampa, FL
48
Count 1: Conspiracy to commit wire fraud
20 years in prison
GUSTAVO RODRIGUEZ,
North Hollywood, CA
46
Count 1: Conspiracy to commit wire fraud
20 years in prison
United States v. Francisley da Silva, et al., S1 22 Cr. 622 (AT)
FRANCISLEY DA SILVA, Curitiba, Brazil
37
Count 1: Conspiracy to commit wire fraud
Count 2: Wire fraud
Count 3: Conspiracy to commit money laundering
20 years in prison
20 years in prison
20 years in prison
JUAN TACURI,
Orlando, FL
44
Count 1: Conspiracy to commit wire fraud
Count 2: Wire fraud
Count 3: Conspiracy to commit money laundering
20 years in prison
20 years in prison
20 years in prison
ANTONIA PEREZ HERNANDEZ,
Tampa, FL
47
Count 1: Conspiracy to commit wire fraud
Count 2: Wire fraud
Count 4: False statements
20 years in prison
20 years in prison
Five years in prison
[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.
Two Defendants Sentenced to Federal Prison for Possessing Illegal Narcotics and FirearmsRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that two defendants who were found guilty of trafficking narcotics in the Shreveport/Bossier City area have been sentenced by United States District Judge S. Maurice Hicks, Jr.
Timothy DeWayne Vasher, 20, of Shreveport, Louisiana, was sentenced today to 120 months (10 years) in prison, followed by 3 years of supervised release, for possession with intent to distribute marijuana and possession of firearms during a drug trafficking offense. On August 11, 2021, deputies with the Desoto Parish Sheriff’s Office conducted a traffic stop of a vehicle and made contact with the driver who was Vasher. Law enforcement agents detected an odor of marijuana coming from inside the vehicle and conducted a probable cause search. Inside the center console, deputies found baggies containing between 3-5 grams of marijuana and a loaded Glock Model 21 .45 pistol. Inside the trunk, deputies found a loaded Smith & Wesson Model M&P AR-15 pistol with a 50-round drum. The AR-15 had a barrel length of 8 7/8 inches and an overall length of 23 7/8 inches which had not been registered with the National Firearm Registration and Transfer Records (NFRTR). Agents with the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) determined that the firearms were in working order and that the AR-15 was stolen. The narcotics were tested by the North Louisiana Crime Lab and confirmed to be marijuana.
This case was investigated by the ATF and Desoto Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
Misty Michell Moran a/k/a Misty Ott, 46, of Shreveport, Louisiana, was also sentenced today to 120 months (10 years) in prison, followed by 3 years supervised release, for possession with intent to distribute methamphetamine. In January 2022, agents with the U.S. Drug Enforcement Administration (DEA) received information that Moran was transporting large amounts of methamphetamine from the Dallas, Texas area to the Shreveport area. Through their investigation, agents learned that Moran was frequently making these trips. On February 21, 2022, troopers with the Louisiana State Police conducted a traffic stop of Moran’s vehicle for a speeding violation in Shreveport. Law enforcement officers found suspected methamphetamine inside a plastic bowl on the passenger seat of the vehicle, a SCCY Model CPX-2 9mm handgun attached to the front dashboard, and over $2,000 in cash. The narcotics were sent to the DEA Crime Lab and it was confirmed that the seized narcotics contained 998 grams of pure methamphetamine.
The case was investigated by the DEA and Louisiana State Police and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
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Two Defendants Plead Guilty to COVID-19 FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that TATIANA BENJAMIN and HEAVEN WEST pled guilty to defrauding New York City’s COVID-19 Hotel Room Isolation Program. BENJAMIN pled guilty yesterday to conspiracy to commit wire fraud, while WEST pled guilty today to wire fraud. Both defendants pled guilty before United States Magistrate Judge James L. Cott. Both defendants’ case is assigned to United States District Judge Lewis A. Kaplan.
U.S. Attorney Damian Williams said: “As they admitted today, the defendants abused a program designed to provide shelter to the sick and needy during the height of the COVID-19 pandemic. In connection with the fraud, Tatiana Benjamin even purchased the personal identifying information of several medical professionals. For their brazen misconduct, the defendants now face possible prison time.”
According to the allegations contained in the Indictment, court filings, and statements made during plea proceedings:
From approximately April 2020 through July 2020, the defendants defrauded the COVID-19 Hotel Room Isolation Program (the “Program”). In response to the COVID-19 pandemic, New York City created the Program. Funded by New York City and the Federal Emergency Management Agency, the Program provided free hotel rooms for qualifying individuals throughout New York City. The Program was open to (a) healthcare workers who needed to isolate because of exposure to COVID-19; (b) patients who had tested positive for COVID-19; (c) individuals who believed, based on their symptoms, that they were infected with COVID-19; and (d) individuals who lived with someone who contracted COVID-19. As stated on the City’s website describing the Program, such individuals “may qualify to self-isolate in a hotel, free of charge, for up to 14 days if you do not have a safe place to self-isolate.” Those who wished to book a hotel room through the Program could either call a phone number or use an online hotel booking platform.
BENJAMIN and WEST defrauded the Program in several respects. First, BENJAMIN and WEST each secured free Program hotel rooms for themselves by falsely claiming to be a respiratory therapist and a hospital employee, respectively. Second, BENJAMIN and WEST each sold fraudulently obtained hotel rooms to customers who were ineligible for the Program. Third, BENJAMIN purchased inside information from co-defendant Chanette Lewis, who worked at a call center that handled phone calls and certain reservations for the Program for several months in 2020. Lewis was hired specifically for the Program, which gave her access to legitimate healthcare workers’ identifying information. Lewis sold BENJAMIN, for $800, personal identifying information of at least five healthcare professionals, as well as certain “codes” to use when booking hotel reservations through the Program, such as an employee ID number and license number.
BENJAMIN and WEST used Facebook to advertise the sale of fraudulently obtained Program hotel rooms and to communicate directly with customers. For example, BENJAMIN told a Facebook user, “Friend at 311 gave me the juice for the hotel so I been booking ppl rooms,” and when WEST was asked whether she had “rooms” available, she replied, “Nah I dead don’t bro / All essential hotels are clipped” and added, “They finding out we was scamming the system lol.”
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BENJAMIN, 28, of Brooklyn, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. Under the terms of her plea agreement, BENJAMIN has agreed to forfeit $51,088 and to pay restitution of $294,624.
WEST, 22, of Atlanta, Georgia, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. Under the terms of her plea agreement, WEST has agreed to forfeit $23,684 and to pay restitution of $59,644.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. The defendants are both scheduled to be sentenced by Judge Kaplan on May 18, 2023, at 3:00 p.m.
Two co-defendants previously pled guilty: Tatiana Daniel previously pled guilty to conspiracy to commit wire fraud and is scheduled to be sentenced by Judge Kaplan on March 29, 2023, at 2:30 p.m. Chanette Lewis previously pled guilty to two counts of conspiracy to commit wire fraud and is scheduled to be sentenced by Judge Kaplan on May 18, 2023, at 3:00 p.m.
Mr. Williams praised the outstanding efforts of agents, investigators, and analysts from the New York City Department of Investigation (“DOI”), DOI - NYCHA Office of the Inspector General, the New York Regional Office of the U.S. Department of Labor – Office of Inspector General (“DOL-OIG”), and the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams also thanked the New York/New Jersey High Intensity Drug Trafficking Area Intelligence Analysts for their support and assistance in this investigation. He also expressed gratitude to the New York City Police Department, the New York State Department of Labor, and the DOL-OIG Atlanta Regional Office for their assistance.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.
Trafficker sentenced for distributing more than 500 grams of methRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old Three Rivers resident has been ordered to federal prison for distributing more than 500 grams of methamphetamine announced U.S. Attorney Alamdar S. Hamdani.
Roger Lee Martinez pleaded guilty June 1.
Today, U.S. District Judge Drew B. Tipton ordered him to serve 120 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Martinez had waived his right to appeal.
The investigation revealed that Martinez had distributed sold varying amounts of meth between Jan. 1, 2018, and July 29, 2020. On some of those occasions, he conducted his criminal activity from a hotel room in Three Rivers.
On Aug. 11, 2020, law enforcement conducted a search at that location which resulted in the discovery of 141.5 grams of meth in a neighboring room inside an air conditioner frame.
Following his arrest, Martinez admitted he had sold up to 45 ounces of meth per month beginning in 2018.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prison facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety and the Live Oak County Sheriff’s Office. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.
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Trafficker of Multiple Kilograms of Methamphetamine Is Sentenced to More Than 21 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Miguel Angel Lopez-Resendiz, 28, a Mexican national residing in Charlotte, was sentenced to 262 months in prison followed by three years of supervised release today for trafficking over six kilograms of methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, Chief Johnny Jennings of the Charlotte Mecklenburg Police Department, and Chief Joseph Hatley of the Mint Hill Police Department join U.S. Attorney King in making today’s announcement.
According to court records and court proceedings, from June to September 2021, Lopez-Resendiz trafficked a substantial amount of methamphetamine in and around Mecklenburg County. Court records show that, on at least two occasions, Lopez-Resendiz sold methamphetamine to an undercover agent. On one such occasion, on September 9, 2021, Lopez-Resendiz met with the undercover agent in the parking lot of a restaurant, where he sold the agent nearly one kilogram of methamphetamine. On September 23, 2021, Lopez-Resendiz arranged another drug transaction with the undercover agent. When Lopez-Resendiz arrived to complete the transaction, law enforcement attempted to arrest him. Lopez-Resendiz fled, and law enforcement arrested him after a short foot chase. Law enforcement searched Lopez-Resendiz’s vehicle. In the trunk, law enforcement found nearly two kilograms of methamphetamine and a semiautomatic assault rifle loaded with a high capacity drum magazine capable of holding more than 100 rounds of ammunition. As part of the law enforcement operation, investigators also executed a search warrant at Lopez-Resendiz’s drug stash house, from which they seized over three additional kilograms of methamphetamine. Over the course of the investigation into Lopez-Resendiz, law enforcement determined that he had trafficked more than six kilograms of methamphetamine.
On June 24, 2022, Lopez-Resendiz pleaded guilty to possession with intent to distribute methamphetamine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons.
In making today’s announcement, U.S. Attorney King commended the DEA, CMPD and the Mint Hill Police Department for their investigation of the case.
Assistant U.S. Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Tohatchi man appears in court on federal assault chargesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Eric Chandler Watson made an initial appearance in federal court on a criminal complaint charging him with assault with a dangerous weapon and assault resulting in serious bodily injury in Indian Country. Watson, 21, of Tohatchi, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending a preliminary and detention hearing scheduled for Dec. 16.
According to the complaint, on Dec. 9, Watson allegedly was involved in argument with his grandfather at a residence in Tohatchi, on the Navajo Nation. After Watson allegedly pushed his grandfather in the chest, Watson’s uncle, identified as John Doe, attempted to intervene, and Watson and John Doe began to fight. When Watson’s grandparents attempted to break up the fight, Watson’s grandmother was knocked to the ground.
John Doe went inside the residence to get Watson’s Play Station gaming console. When Watson’s grandparents attempted to stop John Doe and take the Play Station, Watson allegedly began stabbing John Doe in the back with a pocketknife. The grandparents called the Navajo Police Department and Navajo Nation EMS. EMS assessed John Doe, and John Doe was transported to Gallup Indian Medical Center for care. In addition to multiple stab wounds, John Doe suffered a collapsed lung as a result of the assault.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Watson faces up to 10 years in prison.
The Navajo Department of Criminal Investigation and the FBI investigated this case with assistance from the Navajo Police Department. Special Assistant United States Attorney Mark Probasco is prosecuting the case.
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Titusville Woman Sentenced to 10 Years for Role in Meth ConspiracyRead the Press Release
ERIE, Pa. - A former resident of Titusville, Pennsylvania, has been sentenced in federal court to 120 months in jail on her conviction of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Sarah Umanita Bloom, 31.
According to information presented to the court, from in and around June 2018, to on or about February 28, 2020, Bloom conspired with co-defendants to possess with intent to distribute and distributed five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine as they participated in a methamphetamine distribution network that trafficked methamphetamine from Akron, Ohio and Erie, Pennsylvania into Crawford, Venango and Warren Counties.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Chung commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, Troop E, Vice Unit, the Titusville Police Department, the Warren County Drug Task Force, the Warren County Sherriff’s Office and the Crawford County Sherriff’s Office for the investigation leading to the successful prosecution of Bloom.
Texas Woman Sentenced for Courier Role in Return to Sender OCDETF InvestigationRead the Press Release
PITTSBURGH, PA – A resident of Highlands, Texas has been sentenced in federal court to 18 months of incarceration followed by four years of supervised release on a conviction of federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Isniel Cantu, age 48. Cantu was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
According to information presented to the court, investigators seized approximately ten kilograms of pure methamphetamine from Cantu and her boyfriend, David Smallwood at a hotel in Clearfield County, Pennsylvania. Investigators determined that Cantu and Smallwood were couriers who previously transported approximately 20 kilograms of methamphetamine from Houston, Texas to a location in Clearfield County, Pennsylvania during two prior trips.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball prosecuted this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Service - Criminal Investigation, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Tampa Man Sentenced to 10 Years in Federal Prison for Shooting at Vehicle with Child InsideRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Deron Lamar Foster (35, Tampa) to 10 years in federal prison for being a felon in possession of a firearm and ammunition. The court also ordered Foster to forfeit the firearm and ammunition used in the commission of the offense. Foster had pleaded guilty on August 31, 2022.
According to court documents, Foster’s former significant other (Victim 1) and their six-year-old child (Victim 2) were victims of a shooting that occurred outside a Tampa apartment complex. Foster and Victim 1 had been arguing and were no longer living in the same residence at the time of the shooting. Victim 1 arrived at the apartment using a rideshare service. Victim 1 exited the vehicle and placed Victim 2 in the backseat of the rideshare vehicle while she went inside her apartment to retrieve a few belongings. Shortly after, the driver of the rideshare vehicle (Victim 3) heard five to six gunshots and realized someone was firing a gun at his car. Victim 3 fled from the apartment parking lot, with Victim 2 in the backseat, and flagged down an officer at a nearby pawn shop. Officers observed two bullet holes in Victim 3’s vehicle—one on the driver’s side door and one on the rear passenger door. Victim 2 had been sitting in the rear middle seat of the vehicle at the time of the shooting.
Foster fled from the area after the shooting but was arrested several days later by officers from the Tampa Police Department. At the time of his arrest, Foster was in possession of a loaded firearm. Analysis revealed it was the same firearm that had been used during the shooting at the apartment complex.
Foster had previously been convicted of multiple felonies, including child abuse and aggravated assault with a deadly weapon. As a result of his convictions, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff's Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
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.
Stonecrest’s former Senior Economic Development Manager pleads guilty to theft of COVID-19 relief fundsRead the Press Release
ATLANTA - Clarence Boone, the former Senior Economic Development Manager of Stonecrest, pleaded guilty to conspiring with his wife, Lania Boone, and the former Mayor of Stonecrest, Jason Lary, to steal pandemic relief funds intended to support small businesses in Stonecrest.
“Boone and the former Mayor conspired to fraudulently line each other’s pockets with relief funds that were desperately needed by struggling businesses in Stonecrest,” said U.S. Attorney Ryan K. Buchanan. “We will continue to uncover and prosecute those who exploit government positions and COVID relief programs to fuel their own greed.”
“CARES Act funds were intended to help people and businesses harmed by the pandemic, not to line the pockets of public officials entrusted to lead a community”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to work with our local, state, and federal partners to ensure stolen relief funds are returned to the public, and individuals involved in this type of fraud are prosecuted to the fullest extent of the law.”
“Like the rest of the country, the residents and businesses of Stonecrest community looked to its government for vital assistance in response to the COVID-19 pandemic. Instead of being a trustworthy steward of CARES Act funding, Clarence Boone and his co-conspirators schemed to misappropriate those funds to enrich themselves at the expense of those less fortunate. The DeKalb County District Attorney’s Office will continue to work with its law enforcement partners to bring these bad actors to justice,” said DeKalb County District Attorney Sherry Boston.
According to U.S. Attorney Buchanan, the charges and other information presented in court: In March 2020, the President signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act into law in response to the economic fallout of the COVID-19 pandemic. Under the CARES Act, the federal government distributed COVID-19 relief funds to individual Americans, federal agencies, and state and local governments, including $125 million to DeKalb County. DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest.
In September 2020, Jason Lary, the former Mayor of Stonecrest, allocated $5 million of the relief funds to a Small Business Program which would disburse relief funds based on applications submitted by local businesses. Lary placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. Lary also made the defendant’s wife, Lania Boone, the bookkeeper charged with distributing relief funds. The three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest.
On October 28, 2020, for example, Clarence Boone and Lary circumvented the application process and directed more than $50,000 to a business that they knew was not conducting any legitimate operations, and Lania Boone ultimately wrote the check to disburse the funds. Later, in March 2021, after learning of an investigation into the city’s handling of relief funds and knowing that the business had never filed paperwork to support the grant, Clarence Boone attempted to conceal the scheme by directing the business’s owner to submit an application that contained false statements, even though the Small Business Program had already ceased operations.
Later in December 2020 and January 2021, Clarence Boone coordinated with Lary and Lania Boone to use $108,155.52 of relief funds to pay off the mortgage on Lary’s lakefront home in Macon, Georgia, and used more than $7,600 of relief funds to pay college tuition, a meal plan, books, and rent for Clarence Boone’s son.
Clarence Boone, 60, of Decatur, Georgia, pleaded guilty to conspiracy to commit federal program theft and is scheduled to be sentenced on March 13, 2023. His coconspirators previously pleaded guilty and received the following sentences:
- Jason Lary received a sentence of four years and nine months in prison to be followed by three years of supervised release and was ordered to pay restitution in the amount of $119,607.69. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022.
- Lania Boone received a sentence of six months and one day in prison to be followed by three years of supervised release and was ordered to pay restitution in the amount of $7,657.47. Lania Boone pleaded guilty to conspiracy to commit federal program theft on February 11, 2022.
This case is being investigated by the Federal Bureau of Investigation and the DeKalb County District Attorney’s Office.
Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. Former Assistant U.S. Attorney Trevor Wilmot previously 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
St. Louis County Woman Admits Armed Robbery, CarjackingRead the Press Release
ST. LOUIS – A woman from St. Louis County, Missouri on Wednesday admitted committing both an armed robbery and carjacking in 2021.
Kadijah McFadden, 29, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to carjacking, discharge of a firearm in furtherance of a crime of violence, robbery, brandishing a firearm in furtherance of a crime of violence and being a felon in possession of a firearm.
McFadden admitted robbing a Boost Mobile store at 12135 Bellefontaine Road at gunpoint on Aug. 9, 2021. McFadden pointed a firearm at a store employee and said, “give me everything out the drawer right now.” She stole approximately $630 as well as multiple cell phones.
McFadden also admitted that on Sept. 5, 2021 around 9 a.m., she approached a woman in the 3600 block of Bates Street who had just parked her 2017 Jeep Cherokee and was unloading groceries. McFadden pointed a large black handgun at the victim and demanded her purse before trying to snatch it. McFadden did get the victim’s car keys. She then walked to the opposite side of the Jeep, opened the passenger side door and again demanded the purse before firing a total of four shots into the air and at the ground.
McFadden then stole the Jeep. The incident was captured on video.
About three hours later, St. Louis County police spotted the Jeep and followed it. During the pursuit, McFadden threw a black firearm out of the vehicle, but police recovered it. The Jeep eventually crashed and McFadden and her co-defendant, Damonta Jamall Bridges, were found inside.
A robbery and gun charge are pending against Bridges, 30, who has pleaded not guilty.
The case was investigated by the St. Louis Metropolitan Police Department, the St. Louis County Police Department and the FBI. Assistant U.S. Attorney Ashley Walker is prosecuting the case.
St. Francois County Man Admits Third Child Pornography OffenseRead the Press Release
ST. LOUIS – A man from St. Francois County, Missouri on Wednesday pleaded guilty to his third child pornography offense and now faces at least 15 years in federal prison.
James D. Brewer, 50, of Park Hills, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to a felony charge of receiving child pornography.
As part of his plea, Brewer acknowledged that he was also convicted of distribution of child pornography in a 1997 case and possession of child pornography in a 2008 case. Brewer was sentenced to ten years in prison and a lifetime term of supervised release in the 2008 case. One of the conditions of Brewer’s supervised release is that he is subject to a search when reasonable suspicion exists that he violated a condition of supervision.
After United States probation officers received information that Brewer bought a laptop at a pawn shop, they conducted an unannounced home visit on March 1, 2022. They found the computer and also spotted a smart phone, USB drives, a smart watch and a cell phone. Brewer admitted downloading child sexual abuse material via the smart phone and storing it on one of the USB drives. Thousands of images containing child pornography were found on the phone, the USB drive and a hard drive, Brewer admitted in his plea Wednesday.
Brewer faces a mandatory minimum prison term of 15 years at his sentencing, scheduled for March 14, as well as an assessment of up to $35,000.
The case was investigated by the U.S. Probation Office in St. Louis.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Southern California Man Pleads Guilty to Cryptocurrency FraudRead the Press Release
SAN FRANCISCO – Ryan Mark Ginster pleaded guilty today in federal court to wire fraud involving an online investment website designed to defraud investors, announced United States Attorney Stephanie M. Hinds and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service-Criminal Investigation Washington D.C. Field Office.
In a written plea agreement he entered today, Ginster, 35, of Corona, California, admitted that he operated a website beginning in February 2018 called Socialprofimatic.com. He designed the website with the intent to defraud investors by making false representations about cryptocurrency investment opportunities. On Socialprofimatic.com, Ginster represented that investments with Socialprofimatic.com would receive returns of 8% a day and claimed that “This will be JOB REPLACING income, the income that will pay you every hour of every day even when your [sic] sleeping or on holiday.” He further claimed on the website that investors could “request your profits at any time you want and they’ll be INSTANTLY paid to your Bitcoin/Litecoin wallet.” Ginster admitted these and numerous other claims on his website were entirely false and intended solely to influence investors to part with their money or property. In the 38 days that the Socialprofimatic.com website was active, the website received approximately 9,026 deposits of bitcoin totaling approximately 98.12089739 BTC, valued at the time at approximately $844,667. Ginster admitted he did not invest the funds but instead deposited these funds into his own cryptocurrency wallet. That cryptocurrency is now worth over $1.6 million.
Ginster entered his guilty plea before United States District Judge Jacqueline Scott Corley, who scheduled a sentencing hearing for Ginster on March 29, 2023, at 9:00 a.m. Ginster remains out of custody pending sentencing.
Ginster pleaded guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343, which carries a maximum sentence of 20 years in prison. Any sentence following conviction, however, would be imposed only by a court only after its consideration of the United States Sentencing Guidelines and the federal statute governing sentencing, 18 USC § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. This prosecution is the result of an investigation by the IRS-CI Washington D.C. Cyber Crimes Unit.
The Los Angeles Regional Office of the Securities and Exchange Commission also filed a civil enforcement action against Ginster in the Central District of California. That action is pending.
If you believe you have been a victim of this fraud scheme, please contact IRS-Criminal Investigation at emsvictim@ci.irs.gov or go to the following website:
https://www.justice.gov/usao-ndca/us-v-ryan-mark-ginster-22-cr-00374-jsc
The criminal complaint in this matter can be viewed on PACER or by visiting the website for the U.S. Attorney’s Office for the Northern District of California at www.justice.gov/usao-ndca where press releases are posted.
South Texan sentenced for trafficking cocaineRead the Press Release
CORPUS CHRISTI, Texas – A 27-year-old Brownsville man has been ordered to prison for attempting to transport cocaine through a Border Patrol checkpoint, announced U.S. Attorney Alamdar S. Hamdani.
Jonathan Martinez pleaded guilty Oct. 6, 2021.
Today, U.S. District Judge Drew B. Tipton ordered him to serve 24 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that Martinez “really jumped into the deep end” when he committed this offense, as he had no criminal history.
On Oct. 19, 2020, Martinez arrived at the Border Patrol checkpoint located near Sarita. A K-9 alerted to his vehicle, at which time authorities referred him to secondary inspection.
A further search of his vehicle revealed three bundles of cocaine hidden in an aftermarket metal box and the computer module. They had a combined weight of 2.98 kilograms and have an estimated street value of $75,000.
Martinez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.
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South Bend Man Convicted by Jury of Gun CrimeRead the Press Release
SOUTH BEND – Zebulon Marzette, 39 years old, of South Bend, Indiana, was found guilty following a two-day jury trial presided over by United States District Court Judge Damon R. Leichty, announced United States Attorney Clifford D. Johnson.
Marzette was found guilty of being a felon in possession of a firearm.
Marzette is scheduled for sentencing on March 23, 2023. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the South Bend Police Department. This case was prosecuted by Assistant United States Attorneys Katelan M. Doyle and Joel Gabrielse with assistance from AUSA Luke N. Reilander, and former AUSA Geovanny E. Martinez.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Seward Woman Sentenced to Five Years’ Probation and Jail Time in Tax CaseRead the Press Release
Acting United States Attorney Steven Russell announced that Melissa Grantski, 51, of Seward, Nebraska, was sentenced today in Lincoln by United States District Judge John M. Gerrard for willful failure to collect or pay over employment taxes. Grantski was sentenced to 5 years’ probation, 10 weekends of intermittent confinement, $58,403.64 in restitution, and a $100 special assessment. There is no parole in the federal system.
This case began in October of 2017 when Internal Revenue Service officers noticed that Grantski had an unpaid tax debt for failing to pay payroll taxes. Unbeknownst to investigators at the time, Grantski was already on probation for a similar conviction out of Seward County. Investigators unsuccessfully worked with Grantski to come into compliance with tax laws and pay off her tax debt.
Grantski was the president, secretary, treasurer, and owner of a trucking or hauling business in Seward. She exercised control over the business affairs, including authorizing business expenses, authorizing payment of employee paychecks, signing of employee paychecks, approval of payments made by the corporation, and approval of payment of payroll taxes to the Internal Revenue Service (IRS). Grantski was required to withhold taxes from its employees’ paychecks, including federal income taxes, and Medicare and Social Security taxes, commonly called “payroll taxes.” Grantski was required to make deposits of payroll taxes to the IRS on a periodic basis. In addition, Grantski was required to file quarterly tax returns setting forth the total amount of wages and other compensation subject to withholding, the total amount of income taxes withheld, the total amount of payroll taxes due, and the total tax deposits.
Grantski had authority required to exercise significant control over the corporate financial business affairs of the business, and had the responsibility to collect, truthfully account for, and pay over payroll taxes to the IRS. During seven quarters between 2015 and 2017, Grantski failed to pay over to the IRS payroll taxes due. Federal tax deductions were made from employees’ paychecks, but Grantski did not forward the taxes to the IRS and did not file the quarterly return. In total, Grantski failed to account for and failed to pay over approximately $58,403.64 in payroll taxes between 2015 – 2017. Prior to sentencing, Grantski paid all of this restitution to the IRS.
This case was investigated by the Internal Revenue Service – Criminal Investigation.
Seattle man who trafficked young juveniles sentenced to ten years in prisonRead the Press Release
Seattle – A 23-year-old Seattle man, was sentenced today in U.S. District Court in Seattle to ten years in prison for attempted sex trafficking of a minor, announced U.S. Attorney Nick Brown. Issac Shorack was arrested at Sea-Tac Airport in February 2022 as he drove to the arrivals area to pick up a person he believed to be a 17-year-old minor. In fact, Shorack had been communicating with an undercover agent about traveling to Seattle to work as a prostitute. Shorack first came to the attention of law enforcement in November 2021, with a tip to a National Human Trafficking hotline alleging he was trafficking juveniles. At today’s sentencing hearing, U.S. District Judge Tana Lin said Shorack preyed on “Young, confused, and impressionable girls…. You were looking for young vulnerable girls, and when they were afraid, you threatened them with violence.”
“Mr. Shorack used threats and violence to control vulnerable juveniles who he sold for sex on Aurora Avenue,” said U.S. Attorney Nick Brown. “He made hundreds of thousands of dollars by exploiting and endangering young women and used the money to fund his lavish lifestyle.”
According to records in the case, the investigation began with a call to the National Human Trafficking Hotline in November 2021. The caller reported information about minors who were being trafficked in the Seattle area – in the location known as “the track” or “the blade” on Aurora Avenue North. The FBI began an investigation and was able to trace some of the activities of Shorack and the minors he controlled for sex trafficking. Forensic examination of electronic devices revealed text messages showing Shorack in control of the minors’ activities including pricing, what sex acts they should engage in with sex buyers, the use of condoms and information about whether they were earning enough money for him. Investigators analyzed Shorack’s texts to the minors about how much money they were making and saw that they correlated with cash deposits made into his bank accounts. In his text messages, Shorack also bragged about physically assaulting another victim and threatened physical violence if the victims did not follow his orders. Shorack also admitted that he knew at least three of his victims were minors.
The FBI used an experienced undercover agent based out of state to reach out to Shorack posing as a 17-year-old minor. Shorack communicated with the “minor” via phone and text messages and attempted to entice her to travel to Seattle and work for him as a prostitute. Shorack had some of the minors under his control reach out to the undercover officer as well to try to recruit her to work for him. Shorack used various questions to try to determine whether the undercover was law enforcement. Ultimately, Shorack purchased a ticket for the “minor” to fly to Seattle and told her he would pick her up outside baggage claim. Instead, Shorack was arrested by Port of Seattle Police.
“It is deplorable that Mr. Shorack not only recruited minors from across the country, but he also demonstrated zero concern for his victims’ well-being,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field Office. “The work the FBI and our law enforcement partners are doing to combat modern-day slavery is critical in ending this dehumanizing crime.”
An analysis of Shorack’s bank accounts revealed he deposited more than $360,000 in prostitution proceeds. Today Judge Lin ordered Shorack to pay $50,000 in restitution to each of his three minor victims for a total of $150,000.
In asking for a 12-year-sentece with ten years of community supervision to follow, Assistant United States Attorney Kate Crisham wrote to the court, Shorack “is a predatory person who was willing to recruit and live off the prostitution profits of vulnerable juveniles and young women. By virtue of engaging in this conduct, he poses a very real danger to the community and has the potential to continue to sexually exploit women upon his release.”
Shorack will be on ten years of supervised release following prison, and will be required to register as a sex offender.
The National Human Trafficking Hotline is 1-888-373-7888
The case was investigated by the FBI with assistance from the Seattle Police Department and the Port of Seattle Police.
The case was prosecuted by Assistant United States Attorney Kate Crisham. Ms. Crisham is the Anti-Human Trafficking Coordinator for the Western District of Washington.
Schuylkill County Man Charged with Methamphetamine and Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 13, 2022, John Bartel, age 63, of Pottsville, Pennsylvania, was indicted by a federal grand jury for methamphetamine and fentanyl trafficking.
According to United States Attorney Gerard M. Karam, the indictment charges Bartel with possession with intent to distribute more than fifty grams of methamphetamine and an additional amount of fentanyl, on August 3, 2022, in Schuylkill County.
The investigation was conducted by the Pennsylvania State Police and Federal Bureau of Investigation’s Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case was prosecuted as part of a district wide initiative to combat the nationwide
epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit opioid trafficking offenses.
This case is also 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 charge carries a mandatory minimum sentence of five years in prison. The maximum sentence under federal law is up to forty years in prison, a term of supervised release and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Sanbornton Man Charged with Possession of Child Exploitation MaterialRead the Press Release
CONCORD, N.H. – Timothy Ryan, 34, of Sanbornton, New Hampshire, was charged via complaint in federal court with possession of child sexual abuse material, United States Attorney Jane E. Young announced today.
Ryan was arrested without incident on Tuesday, December 13, after investigators executed a search warrant and seized Ryan’s electronic devices. According to court documents and statements made in court, Ryan was identified as a suspect in an online investigation related to the distribution of child exploitation material on a peer-to-peer file-sharing network. Agents reviewing the contents of Ryan’s cell phone confirmed the presence of child exploitation material on his cell phone. He appeared for an initial appearance today and is temporarily detained pending a detention hearing scheduled for December 21, 2022.
This case was investigated by Homeland Security Investigations with assistance from the New Hampshire Internet Crimes Against Children Task Force, U.S. Secret Service New England Cyber Fraud Task Force, Grafton County Sheriff’s Department, Nashua Police Department and the Sanbornton Police Department. It is being prosecuted by Assistant United States Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A complaint is merely an allegation and a defendant is presumed innocent unless and until proven guilty.
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Sacramento County Man Sentenced to 5 Years in Prison and Fined $25,000 for Conspiring to Manufacture and Traffic MarijuanaRead the Press Release
SACRAMENTO, Calif. — Fidel Gomez Garcia Jr., 46, of Walnut Grove, was sentenced Tuesday to five years in prison and fined $25,000 for conspiracy to manufacture and distribute marijuana, U.S. Attorney Phillip A. Talbert announced. He also forfeited more than $600,000 in assets and U.S. currency involved in or traced to the illegal conspiracy.
According to court documents, Gomez Garcia owned at least five properties in San Joaquin County that he knowingly rented to others for the purpose of growing marijuana. Upon execution of a search warrant at Gomez Garcia’s residence in Acampo, agents found more than 100 pounds of processed marijuana packaged for sale, two firearms, diamond jewelry, more than $36,000 in cash, and multiple new high-end luxury vehicles, including a corvette with the vanity license place “Boss.”
This case was the product of an investigation by the Drug Enforcement Administration and the San Joaquin County Metro Task Force. Assistant U.S. Attorney Cameron Desmond prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Roswell man charged with sex trafficking of childrenRead 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 FBI Albuquerque Field Office, announced that Juan Rodriguez was charged by criminal complaint with sex trafficking of children. Rodriguez, 38, of Roswell, New Mexico, will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, the investigation of Rodriguez began on Nov. 18 when law enforcement officers in Chavez County, New Mexico, responded to a reported sexual assault involving a 12-year-old victim, identified as Jane Doe 1. Rodriguez allegedly had paid money to Jane Doe 1 in exchange for engaging in sexual activity on three occasions, beginning in September.
Rodriguez allegedly first contacted Jane Doe 2 via Snapchat two or three years earlier, when she was 10 or 11 years old. Rodriguez learned of Jane Doe 2’s address and parked outside her residence. Rodriguez allegedly gave $90 to Jane Doe 2 and another victim, identified as Jane Doe 3, for sexual activity.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Rodriguez faces a minimum of 15 years and up to life in prison.
The FBI’s Albuquerque Division Child Exploitation and Human Trafficking Task Force investigated this case with assistance from the Roswell Police Department. Assistant United States Attorney Joni Autrey Stahl is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Repeat Felon on Supervised Release Sentenced to 5 Years in Federal Prison After Throwing AR-Style Pistol out the Window During High-Speed ChaseRead the Press Release
INDIANAPOLIS -Alonzo Smith, 26, of Indianapolis, was sentenced to 5 years in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on April 13, 2021, Alonzo Smith was identified by Indianapolis Metropolitan Police Department (IMPD) officers as a suspect in a shots fired incident that occurred on March 27, 2021. That incident involved multiple individuals, including Smith, firing approximately 100 gunshots outside of an Indianapolis business. One of the fired rounds struck a fully marked IMPD vehicle as it was passing by.
Also on April 13, 2021, IMPD detectives located Smith near his Indianapolis residence. Detectives observed Smith leave the residence and drive northbound in a blue Chevy Malibu. Smith parked, then entered a silver Chevy Monte Carlo located on the street near 2249 North Arsenal Avenue. He drove northbound, approaching East 25th Street, where officers initiated a traffic stop at the intersection of East 25th Street and Brouse Avenue. After initially pulling over, Smith made a U-turn and fled westbound. Officers pursued Smith, who reached speeds of nearly 80 miles per hour on city streets. During the pursuit, Smith threw an AR-style pistol out the window of the car.
Officers lost sight of Smith, but later observed him driving north on Meridian Street. An officer reinitiated the pursuit but was involved in a serious accident at that intersection of Meridian and 20th Street. The officer sustained a broken nose, jaw, and orbital bone, lost four teeth, and needed multiple surgeries.
Smith was taken into custody approximately one week later. At the time of his arrest, Smith was on federal supervised release after serving a 40 month prison sentence following a prior federal conviction for possessing a firearm as a previously convicted felon.
“This defendant chose to continue illegally arming himself and endangered the lives of civilians and law enforcement officers in his reckless flight from the police,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Repeat armed criminals drive the violence on our streets and putting them in prison makes our communities safer. The U.S. Attorney’s Office will continue to work closely with our federal, state, and local law enforcement partners to hold these offenders accountable.”
“Working together with our law enforcement partners is the most effective way to make our communities safer and this sentence demonstrates that collaboration as a violent offender is now off the streets and behind bars where he can no longer imperil the lives of innocent people,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton.
The case was investigated by the Federal Bureau of Investigation (FBI) with the assistance of IMPD. The sentence was imposed by U.S. District Judge James P. Hanlon. In addition to 4 years imprisonment on these charges, Judge Hanlon sentenced Smith to 1 year imprisonment for violating the terms of his federal probation, that will run consecutively with his new sentence. Judge Hanlon also ordered that Smith be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Kelsey L. Massa, who prosecuted this case.
Red Water Man Enters a Guilty Plea to Assault on a Federal OfficerRead the Press Release
Jackson, Miss. – A Red Water man pleaded guilty to assaulting a federal officer, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Errol John, II, 22, assaulted a tribal police officer who was responding to a domestic disturbance at John’s home. Court documents revealed John assaulted the officer by firing a shotgun in the officer’s direction, resulting in a shotgun blast striking the windshield of the officer’s patrol car. Fortunately, the officer was unharmed.
John is scheduled to be sentenced on March 13, 2023. He faces a maximum penalty of twenty years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Choctaw Police Department and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Kevin J. Payne prosecuted the case.
Poughkeepsie Street Gang Member Sentenced to 25 Years in Prison for 2012 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DIMETRI MOSELEY was sentenced today to 25 years in prison for his participation in the activities of a Poughkeepsie street gang, including the 2012 murder of Caval Haylett and the distribution of heroin. MOSELEY had previously pled guilty to participation in racketeering and narcotics distribution conspiracies and had admitted that he was one of two shooters involved in Haylett’s murder. U.S. District Judge Nelson S. Román, imposed today’s sentence.
MOSELEY was one of 31 members and associates of two rival street gangs who were charged in two separate cases – United States v. Ronald Johnson et al., 17 Cr. 505 (VB) and United States v. Douglas Owen et al., 17 Cr. 506 (NSR) – with racketeering conspiracy, narcotics conspiracy, and firearms offenses. All 31 of those defendants, who were members and associates of two gangs referred to as “Uptown,” and “Downtown,” have now pled guilty to federal charges and been sentenced.
U.S. Attorney Damian Williams said: “This case demonstrates our commitment to dismantling violent gangs who threaten our New York neighborhoods through drug trafficking and the guns and physical violence that often accompanies it. I applaud the extensive effort of our law enforcements partners to rid our streets of these dangers and bring these defendants to justice.”
According to the allegations in the charging documents and statements made in court filings and during court proceedings:
The FBI’s Hudson Valley Safe Streets Task Force, the City of Poughkeepsie Police Department, and the Dutchess County Special Narcotics Unit conducted a joint investigation into the gang war between Uptown and Downtown, which led to multiple fatal and non-fatal shootings between 2012 and 2017 in the City of Poughkeepsie.
Uptown is a criminal organization whose members referred to themselves by, and were known by, several different names. Those names include the “Spready Gang,” the “400 Savages,” the “Boogotti Boys,” the “Young Bosses” or “YB’s,” and the “Mob Stars.” Uptown gang members referred to themselves by different combinations of these names, all of which referred to the same criminal enterprise: the Uptown street gang. Uptown is based within the eastern portion of Poughkeepsie, from east of Hamilton Street to the city line and, more specifically, within the Hudson Gardens housing development (commonly referred to as the “Bricks”). Uptown gang members and associates control the narcotics trade within the Bricks, distributing heroin, crack cocaine, and marijuana, primarily. Uptown gang members stored shared guns in various locations known to gang members to protect the narcotics business, to protect each other from rival gangs, and to strike against rival gangs. The case of United States v. Douglas Owens et al. charged 13 members and associates of Uptown, including its leaders: DOUGLAS OWENS, a/k/a “Born Truth,” and JIHAD WILLIAMS, a/k/a “Goodie.”
Downtown, like Uptown, is the name of a large-scale criminal organization that went by many different names. Those names include the “420 Boys,” “L-Block,” “Most Hated,” “Mobile Mafia,” “Hamo Gang,” the “Young Gunnas,” or “YG’s,” the “C-Eazy Gang,” and the “Bully Hard Hunna” faction of the Bloods street gang. Despite the existence of several different names, each one referred to the same criminal enterprise: the Downtown street gang. Downtown’s base of operations was located in the western portion of Poughkeepsie, from west of Hamilton Street to the Hudson River and, particularly, within the Martin Luther King and Rip Van Winkle housing developments (commonly referred to as the “Ville” and “Rip,” respectively). Downtown gang members and associates controlled the narcotics trade within the Ville, Rip, and the surrounding area, also distributing resale amounts of heroin, crack cocaine, and marijuana, primarily. Downtown gang members also stored their shared firearms in different locations known to members and associates. This allowed Downtown gang members to arm themselves quickly when confronted by rivals and to protect each other and their narcotics business. The case of United States v. Ronald Johnson et al. charged 18 members and associates of Downtown, including its leaders: RONALD JOHNSON, a/k/a “Top Gun,” and CARLOS OCASIO, a/k/a “Leak,” a/k/a “Pimp.”
In addition to countless non-fatal acts of violence against rival gang members and innocent victims, the rivalry between Uptown and Downtown has led to the following murders, among others:
- The murder of Downtown gang member Daquell LeBlanc, a/k/a “Hamo,” who was killed by a single gunshot wound to the chest at the age of 16 in the vicinity of Main Street, between Academy and North Hamilton Streets on or about December 23, 2012; and
- The murder of Caval Haylett, an innocent bystander and local high school basketball star, who was killed by a single gunshot wound to the head at the age of 18 while attending a barbeque in the vicinity of Winnikee Avenue and Harrison Street on or about March 9, 2016.
* * *
All 31 of the charged defendants have pled guilty and been sentenced, as set forth below. Charts identifying each defendant, the charges of conviction, and the sentences imposed are below.
Mr. Williams praised the outstanding work of the FBI’s Hudson Valley Safe Streets Task Force, the City of Poughkeepsie Police Department, the Dutchess County Sheriff’s Office, the Dutchess County Drug Task Force, and the Dutchess County District Attorney’s Office.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Christopher J. Clore, Maurene Comey, and Emily Deininger are in charge of the prosecution.
United States v. Douglas Owens et al., 17 Cr. 406 (NSR)
DEFENDANT
CHARGE OF CONVICTION
SENTENCE
DOUGLAS OWENS
Racketeering Conspiracy
90 Months
JIHAD WILLIAMS
Racketeering Conspiracy
180 Months
NICHOLAS HARRIS
Racketeering Conspiracy, Conspiracy to Distribute Heroin
240 Months
DIMETRI MOSELEY
Racketeering Conspiracy, Conspiracy to Distribute Heroin
300 Months
JAHQUEZ HILL
Racketeering Conspiracy, Conspiracy to Distribute Crack Cocaine
240 Months
MARKEL GREEN
Racketeering Conspiracy, Conspiracy to Possess a Stolen Firearm
240 Months
RAHEIM MILLER
Racketeering Conspiracy, Conspiracy to Possess a Stolen Firearm
216 Months
CHRISTIAN BLADES
Racketeering Conspiracy
98 Months
ASHANTI BUNN
Racketeering Conspiracy
114 Months
RAYSHAWN CASANOVA
Possession of a Firearm in Furtherance of a Crime of Violence
60 Months
TREQUON DANCY
Racketeering Conspiracy
27 Months
RASHMI RUPARELIA
Conspiracy to Distribute Crack Cocaine, Possession of a Firearm in Furtherance of Narcotics Trafficking
75 Months
United States v. Ronald Johnson et al., 17 Cr. 505 (VB)
DEFENDANT
CHARGE OF CONVICTION
PRISON SENTENCE
RONALD JOHNSON
Racketeering Conspiracy
82 Months*
SAVON BAGBY
Racketeering Conspiracy
50 Months
NATQUAN CATTS
Racketeering Conspiracy
48 Months
JAHQUEZ COLEMAN
Racketeering Conspiracy
21 Months*
WALTER COLEMAN
Racketeering Conspiracy
30 Months*
CHEVEZ DERELLO
Racketeering Conspiracy
52 Months
LEONARD DERELLO
Racketeering Conspiracy
30 Months*
TYRECK DOUGLAS
Racketeering Conspiracy, Possession of a Firearm in Furtherance of a Crime of Violence
92 Months*
ERVING FERZAN
Racketeering Conspiracy
46 Months*
RAKEE JOHNSON
Conspiracy to Distribute Heroin
42 Months
GLORIOUS LANDRUM
Conspiracy to Distribute Heroin
45 Months
COREY LATIMER
Racketeering Conspiracy, other violations
Time Served
ANTOINNE MCKINNON
Racketeering Conspiracy, Conspiracy to Distribute Marijuana
Time Served
WAYNE MORGAN
Racketeering Conspiracy
Time Served
CARLOS OCASIO
Conspiracy to Distribute Heroin
120 Months
GORDON RIDDICK
Possession of a Firearm in Furtherance of Narcotics Trafficking
60 Months
KEENAN WATTS
Racketeering Conspiracy
24 Months
KWAMENE WILLIAMS
Conspiracy to Distribute Heroin
40 Months
*Sentence included a downward adjustment to account for a prison term served, or being served, on related state charges.
Portland Man Sentenced to Federal Prison for Stealing Covid Relief Funds While on Post-Prison SupervisionRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for fraudulently applying for and receiving Covid relief program funds for a fictitious business entity just five months after finishing a 70-month state prison sentence for armed robbery.
Dimitrius Nicholai Pryce, 43, was sentenced to eight months in federal prison and three years’ supervised release. He was also ordered to pay $24,900 in restitution to the U.S. Small Business Administration (SBA).
According to court documents, in February 2020, Pryce was released from state custody after serving a 70-month prison sentenced for armed robbery. A few months later, in early July 2020, he submitted a fraudulent Economic Impact Disaster Loan (EIDL) application, claiming he ran an “entertainment venue” that generated $53,000 in revenue in the twelve months prior to the Covid-19 pandemic. In the application, Pryce also falsely denied having been on “any form of parole or probation” after a felony conviction within the previous five years.
Pryce’s false representations caused the SBA to approve and disburse to him nearly $25,000 in EIDL funds. Pryce withdrew $21,000 of the funds in cash the same day he received it and spent the entire sum within three months. In January 2021, Pryce submitted three more fraudulent EIDL applications, pretending to be in the construction trades, but was denied on all three.
On February 8, 2022, a federal grand jury in Portland returned an indictment charging Pryce with one count of wire fraud. On October 12, 2022, he pleaded guilty to the single charge.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.
Political Organizer Sentenced to Prison for Fraudulently Obtaining More Than $800,000 in COVID-19 Relief FundsRead the Press Release
MIAMI – Sean Pierre Jackson, 33, of Palm Beach County, Fla., was sentenced today to 36 months in prison and three years of supervised release by U.S. District Judge Robin L. Rosenberg for fraudulently obtaining more than $800,000 in forgivable Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans. These loans are guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
On August 11, 2022, Jackson pled guilty to wire fraud. He was the principal and registered agent of Clutch Strategies LLC, SP Jackson Family Foundation Inc, and Black Republican Caucus of Florida Foundation Inc—all purported businesses located in Boca Raton, Fla.
Between March 30, 2020, through approximately May 10, 2021, Jackson submitted PPP and EIDL loan applications on behalf of himself—as sole proprietor—and his aforementioned companies. In total, the loan applications sought more than $839,000 in PPP and EIDL loan funds.
Jackson falsely stated his prior-year income and expenses in the PPP and EIDL loan applications. In support of the applications, he submitted false and fraudulent Internal Revenue Service forms, which documented income and expenses from his business and sole proprietorship.
Jackson submitted one such fraudulent PPP loan application on June 28, 2020, on behalf of Black Republican Caucus of Florida. A short time later a Black Republican Caucus of Florida bank account, controlled by Jackson, received a $150,325 PPP loan that was intended to pay a lease, mortgage interest, utilities, and payroll checks. Instead, the loan was used to pay for transactions at high-end retail stores, furniture stores, restaurants, car rentals, luxury hotels, airline tickets, and bank withdrawals.
Approximately 11 of the fraudulent PPP and EIDL loan applications were processed but some of the received funds were recovered by banks and lenders shortly after disbursement.
In addition to the prison sentence, Jackson also was ordered to pay $661,986 in restitution.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and acting Special Agent in Charge Robert M. Dewitt, Federal Bureau of Investigation, Miami Field Office, made the announcement.
FBI, West Palm Beach Field Office, investigated the case. Assistant U.S. Attorneys Sarah J. Schall and James A. Weinkle prosecuted it. Raemy Charest-Turken is handling asset forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-CR-80082.
Physician and Office Manager Agree to Pay over $420,000 to Settle Kickback Allegations Involving New Jersey, Texas and South Carolina LaboratoriesRead the Press Release
Vijesh Patel, M.D. and his office manager and wife Laju Patel, both of Port Neches, Texas, have agreed to pay $422,789 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing, and both have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
“Kickbacks can undermine a physician’s medical judgment, result in unnecessary testing, and increase health care costs borne by taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue physicians, laboratories, and others responsible for schemes that violate rules intended to safeguard the integrity of federal health care programs.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that Dr. and Mrs. Patel received kickbacks in violation of the Anti-Kickback Statute in return for Dr. Patel’s referrals to three laboratories:
- Texas Laboratory. From December 2016 to July 2018, Dr. Patel allegedly received thousands of dollars in payments from a purported management service organization (MSO) named Indus MG LLC (Indus) in return for ordering laboratory tests from True Health Diagnostics LLC (True Health), a clinical laboratory in Frisco, Texas. The Indus MSO’s payments to Dr. Patel allegedly were disguised as investment returns but in fact were based on, and offered in exchange for, his referrals to True Health.
- New Jersey Laboratory. From August 2018 to August 2021, Dr. Patel allegedly received thousands of dollars in kickbacks disguised as investment returns from a purported MSO named Avior Group LLC (Avior) in return for ordering laboratory tests from RDx Bioscience, Inc. (RDx), a clinical laboratory in Kenilworth, New Jersey. RDx allegedly funded remuneration to Dr. Patel in the form of volume-based commissions paid to an independent contractor recruiter, Corum Group LLC, which used an associated company, Avior, to pay kickbacks to Dr. Patel and other physicians in return for their referrals. In addition, from December 2018 to August 2022, Mrs. Patel allegedly received kickbacks from RDx in the form of commercially unreasonable fees to purportedly collect urine specimens for testing that Dr. Patel referred to RDx.
- South Carolina Laboratory. From August 2019 to December 2021, Dr. Patel allegedly received hundreds of dollars per month in inflated space rental payments in return for ordering laboratory tests from Labtech Diagnostics LLC (Labtech), a clinical laboratory in Anderson, South Carolina. Labtech’s rental payments allegedly were for a commercially unreasonable amount of space and excessive days and time.
“Patients deserve to know that the decisions their health care providers are making are based solely on their medical needs, not on some profit-making scheme,” said U.S Attorney Philip R. Sellinger for the District of New Jersey. “Our office will continue to pursue anyone responsible for actions that have the potential to corrupt the medical decision-making process.”
“This settlement demonstrates the Eastern District of Texas’s firm and continued commitment to pursuing all persons responsible for engaging in kickback schemes that inevitably harm the taxpayers, increase costs to care, and decrease access to health care,” said U.S Attorney Brit Featherston for the Eastern District of Texas. “We remain vigilant in our pursuit to put a stop to those who partake in kickback schemes of this kind and to hold them accountable for the collective harm they caused.”
“Patients should be able to trust that their doctor’s medical recommendation is in their best interest and not influenced by the doctor’s financial gain,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Our office has and will continue to hold accountable those that give and receive illegal kickbacks, both to maintain the public’s trust in the healthcare system and to ensure taxpayer money is properly spent.”
“Health care providers engaging in kickback schemes corrupt the provider-patient relationship and impose hidden costs on the health care system,” said Assistant Special Agent in Charge Susan A. Frisco with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Alongside our law enforcement partners, our agency is committed to safeguarding the integrity of federal health care programs by holding individuals who unlawfully bill the programs accountable for their actions.”
“Today’s outcome demonstrates the steadfast determination of the Department of Defense (DoD) Office of Inspector General’s Defense Criminal Investigative Service (DCIS) and our investigative partners to root out fraud perpetrated against TRICARE,” said Acting Special Agent in Charge Gregory P. Shilling for the DCIS Southwest Field Office. “DCIS remains focused on protecting and preserving valuable taxpayer dollars by holding those accountable who attempt to defraud the DoD.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Eastern District of Texas, District of New Jersey, and District of South Carolina, with assistance from HHS-OIG and DCIS. To date, the United States has recovered over $32 million relating to conduct involving True Health or MSO kickbacks to physicians in Texas, including False Claims Act settlements with 34 physicians, two health care executives, one office manager, and one laboratory. In addition, the United States has filed a lawsuit under the False Claims Act against former True Health CEO Christopher Grottenthaler and others, which is captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). A defendant who violates the act is liable for three times the amount of the government’s losses plus applicable penalties.
The settlement announced today was handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section), Assistant U.S. Attorney Kruti Dharia for the District of New Jersey, Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young for the Eastern District of Texas, and Assistant U.S. Attorney Beth C. Warren for the District of South Carolina.
The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Physician and Office Manager Agree to Pay More Than $420,000 to Settle Kickback Allegations Involving New Jersey, Texas, and South Carolina LaboratoriesRead the Press Release
NEWARK, N.J. – A Texas doctor and his office manager, who was also his wife, have agreed to pay more than $422,789 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute, U.S. Attorney Philip R. Sellinger announced today.
Vijesh Patel and his wife, Laju Patel, both of Port Neches, Texas, have agreed to pay $422,789 to resolve allegations that they received kickbacks in return for referring patients for laboratory testing. Both have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
“Patients deserve to know that the decisions their health care providers are making are based solely on their medical needs, not on some profit-making scheme,” U.S Attorney Philip R. Sellinger for the District of New Jersey said. “Our office will continue to pursue anyone responsible for actions that have the potential to corrupt the medical decision-making process.”
“Kickbacks can undermine a physician’s medical judgment, result in unnecessary testing, and increase healthcare costs borne by taxpayers,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “We will continue to pursue physicians, laboratories, and others responsible for schemes that violate rules intended to safeguard the integrity of federal healthcare programs.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that the Patels received kickbacks in violation of the Anti-Kickback Statute in return for Vijesh Patel’s referrals to three laboratories:
- Texas Laboratory – From December 2016 to July 2018, Vijesh Patel allegedly received thousands of dollars in payments from a purported management service organization (MSO), Indus MG LLC (Indus), in return for ordering laboratory tests from True Health Diagnostics LLC (True Health), a clinical laboratory in Frisco, Texas. The Indus MSO’s payments to Vijesh Patel allegedly were disguised as investment returns, but in fact were based on, and offered in exchange for, his referrals to True Health.
- New Jersey Laboratory – From August 2018 to August 2021, Vijesh Patel allegedly received thousands of dollars in kickbacks disguised as investment returns from a purported MSO, Avior Group LLC, in return for ordering laboratory tests from RDx Bioscience Inc. (RDx), a clinical laboratory in Kenilworth, New Jersey. RDx allegedly paid remuneration to Vijesh Patel in the form of volume-based commissions paid to an independent contractor recruiter, Corum Group LLC, which used an associated company, Avior, to pay kickbacks to Vijesh Patel and other physicians in return for their referrals. From from December 2018 to August 2022, Laju Patel allegedly received kickbacks from RDx in the form of commercially unreasonable fees to purportedly collect urine specimens for testing that Vijesh Patel referred to RDx.
- South Carolina Laboratory – From August 2019 to December 2021, Vijesh Patel allegedly received hundreds of dollars per month in inflated space rental payments in return for ordering laboratory tests from Labtech Diagnostics LLC (Labtech), a clinical laboratory in Anderson, South Carolina. Labtech’s rental payments allegedly were for a commercially unreasonable amount of space and excessive days and time.
"This settlement demonstrates the Eastern District of Texas’s firm and continued commitment to pursuing all persons responsible for engaging in kickback schemes that inevitably harm the taxpayers, increase costs to care, and decrease access to health care,” said United States Attorney Brit Featherston for the Eastern District of Texas. “We remain vigilant in our pursuit to put a stop to those who partake in kickback schemes of this kind and to hold them accountable for the collective harm they caused.”
“Patients should be able to trust that their doctor’s medical recommendation is in their best interest and not influenced by the doctor’s financial gain,” said United States Attorney Adair F. Boroughs for the District of South Carolina. “Our office has and will continue to hold accountable those that give and receive illegal kickbacks, both to maintain the public’s trust in the healthcare system and to ensure taxpayer money is properly spent.”
“Health care providers engaging in kickback schemes corrupt the provider-patient relationship and impose hidden costs on the health care system,” said Assistant Special Agent in Charge Susan A. Frisco with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Alongside our law enforcement partners, our agency is committed to safeguarding the integrity of federal health care programs by holding individuals who unlawfully bill the programs accountable for their actions.”
“Today’s outcome demonstrates the steadfast determination of the Department of Defense (DoD) Office of Inspector General’s Defense Criminal Investigative Service (DCIS) and our investigative partners to root out fraud perpetrated against TRICARE,” Acting Special Agent in Charge Gregory P. Shilling, DCIS Southwest Field Office said. “DCIS remains focused on protecting and preserving valuable taxpayer dollars by holding those accountable who attempt to defraud the DoD.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Eastern District of Texas, District of New Jersey, and District of South Carolina, with assistance from HHS-OIG and DCIS. To date, the United States has recovered over $32 million relating to conduct involving True Health or MSO kickbacks to physicians in Texas, including False Claims Act settlements with 34 physicians, two health care executives, one office manager, and one laboratory. In addition, the United States has filed a lawsuit under the False Claims Act against former True Health CEO Christopher Grottenthaler and others, which is captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). A defendant who violates the act is liable for three times the amount of the government’s losses plus applicable penalties.
The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit, Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section), Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young in the U.S. Attorney’s Office for the Eastern District of Texas, and Assistant U.S. Attorney Beth C. Warren in the U.S. Attorney’s Office for the District of South Carolina.
The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in the government’s efforts to combat health care fraud is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Physician Charged in $9.5 Million Health Care Fraud ConspiracyRead the Press Release
NASHVILLE, Tenn. – A federal indictment unsealed today charges Benjamin T. Toh, M.D., 68, of Chicago, Illinois, for his role in a more than $9.5 million health care fraud conspiracy, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. Toh was indicted in the Middle District of Tennessee on Monday and arrested by federal agents in Chicago earlier today.
According to the indictment, Toh is a resident of Chicago, Illinois, and a medical doctor, licensed to practice in multiple states, and who operated as a consulting provider to purported telemedicine companies. As an enrolled and participating provider in Medicare, Toh obtained access to Medicare and Medicaid patients through the purported telemedicine companies, and signed orders for cancer genetic testing (“CGx”) in exchange for the payment of kickbacks. Toh signed orders without regard to whether they were medically necessary. Toh was not the treating physician of the patients and he did not conduct an actual telemedicine visit, nor did he follow up with patients on the test results. Toh’s co-conspirators included Advanced Tele-Genetic Counseling (“ATGC”), a telemedicine company based in Kentucky, whose owner, Elizabeth Turner, pleaded guilty last year to a health care fraud conspiracy in the Middle District of Tennessee.
ATGC received kickback payments from marketers in exchange for providing orders signed by doctors, including Toh. The marketers targeted Medicare and Medicaid patients through door-to-door marketing, at senior fairs, at nursing homes, and at other locations, and convinced patients to provide their genetic material via a mouth swab kit. The marketers then provided the swab kits to Crestar Labs, LLC, headquartered in Spring Hill, Tennessee, for CGx testing and in exchange for kickbacks paid by Crestar Labs. Crestar Labs billed Medicare and Medicaid for the tests. The owner of Crestar Labs, Fadel Alshalabi, as well as several marketers, are charged with health care fraud offenses in a separate indictment pending in the Middle District of Tennessee.
Monday’s indictment alleges that during the period of March 2019 through September 2019, Toh and others caused the submission of more than $9.5 million in false and fraudulent claims to Medicare and Medicaid for cancer genetic tests.
If convicted, Toh faces up to 10 years in prison and a $250,000 fine.
This case is being investigated by the U.S. Department of Health & Human Services-Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorneys Sarah K. Bogni and Robert S. Levine are prosecuting the case.
United States v. Elizabeth Turner is docketed at Criminal Case No. 3:21-cr-00280.
United States v. Fadel Alshalabi, et al. is docketed at Criminal Case No. 3:21-cr-00171. The charges are merely accusations. All defendants are presumed innocent until proven guilty in a court of law.
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Philadelphia Man Pleads Guilty for his Role in a Robbery Spree Targeting Latino Businesses in North Philadelphia One Year AgoRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Omar White-Davis, 28, of Philadelphia, PA, pleaded guilty today to two counts of attempted Hobbs Act robbery, one count of Hobbs Act robbery, and one count of carrying and using a firearm during the commission of a crime of violence. White-Davis and a co-defendant, Acia Moore, 20, also of Philadelphia, were charged by Indictment with these offenses in connection with multiple armed robberies of businesses in the Feltonville and Juniata sections of North Philadelphia, including Café Tinto restaurant on Wyoming Avenue, which was targeted twice in two days.
According to the Indictment, the defendants attempted to rob and did rob a variety of small businesses, both together and separately, stealing approximately $3,100 dollars total between November 21 and December 6, 2021. The incidents detailed are as follows:
- On November 21, 2021: White-Davis attempted to rob the Ariel Grocery, 2000 block of E. Pacific Street;
- On December 1, 2021: Moore robbed the AlMolhem Store, 400 block of E. Wyoming Avenue;
- On December 2, 2021: White-Davis and Moore robbed Café Tinto, 100 block of E. Wyoming Avenue
- On December 4, 2021: Moore returned to Café Tinto approximately 48 hours later and robbed it again;
- On December 6, 2021: Moore robbed the Leslie Mini Market, 4200 block of Bodine Street; and,
- Also on December 6, 2021: approximately an hour later, Moore and White-Davis attempted to rob Hernandez Food and Deli Market, 4500 block of D Street.
After pleading guilty today, White-Davis is set to be sentenced in April 2023 before the Honorable Gerald A. McHugh. Moore is listed for trial on these charges in January 2023. If convicted, Moore faces a maximum possible sentence of life imprisonment, a five-year period of supervised release, and possible fines of over $1,000,000.
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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
People's Republic of China Citizen Arrested for StalkingRead the Press Release
BOSTON – A Berklee College of Music student, who is citizen of the People’s Republic of China (PRC), has been arrested and charged with stalking in connection with threatening and harassing communications he allegedly made towards an individual who posted fliers in support of democracy in China.
Xiaolei Wu, 25, was charged with one count of stalking and will make an initial appearance in federal court in Boston this afternoon. Wu has lived in Boston while attending the Berklee College of Music. Wu will appear in federal court in Boston at 3 p.m. this afternoon.
According to the charging documents, on Oct. 22, 2022, an individual posted a flier on or near the Berklee College of Music campus in Boston which said, “Stand with Chinese People,” as well as, “We Want Freedom,” and “We Want Democracy.” It is alleged that, beginning on or about Oct. 22, 2022 and continuing until Oct. 24, 2022, Wu made a series of communications via WeChat, email and Instagram directed towards the victim who posted the flier. Among other things, Wu allegedly said, “Post more, I will chop your bastard hands off,.” He also allegedly told the victim that he had informed the public security agency in China about the victim’s actions and that the public security agency in China would “greet” the victim’s family. It is further alleged that Wu solicited others to find out where the victim was living and publicly posted the victim’s email address in the hopes that others would abuse the victim online.
“The Department of Justice will always defend the right to engage in free speech and political expression. We allege that Mr. Wu’s threatening and harassing behavior was not free speech. Rather, it was an attempt to silence and intimidate the activist’s expressed views dissenting of the PRC,” said United States Attorney Rachael S. Rollins. “We will not tolerate threats, harassment or any other repression attempts against those peacefully promoting their ideas, doing their jobs, or expressing their opinions. Freedom of speech is a constitutional right here in the United States and we will protect and defend it at all costs.”
“Today, the FBI arrested Xiaolei Wu for repeatedly threatening and infringing on the rights of a civic activist who spoke out against the ruling Communist Party of China. We believe Mr. Wu stalked, harassed, and reported the victim’s support for democracy to law enforcement in the People’s Republic of China so it would launch an investigation into the victim and her family. This alleged conduct is incredibly disturbing and goes completely against our country’s democratic values,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case also highlight’s the FBI’s ongoing commitment to protecting the exercise of free speech for all citizens and our efforts to bring to justice anyone who tries to infringe on those rights.”
The charge of stalking provides for a sentence up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. Assistant U.S. Attorney Timothy H. Kistner of Rollins’ National Security Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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For a translated version of this press release, please see the attachment below.
Pearl River Man Sentenced for Drug TraffickingRead the Press Release
Jackson, Miss. – A Pearl River man was sentenced to 57 months in prison for Conspiracy to Possess with Intent to Distribute Methamphetamine on the Choctaw Indian Reservation, announced U.S. Attorney Darren J. LaMarca and Assistant Special Agent in Charge Kevin Gaddy of the Drug Enforcement Administration’s Mississippi Field Office.
According to court documents, Shaun Dougherty, 37, of the Pearl River Community of the Choctaw Indian Reservation, distributed methamphetamine on the Choctaw Indian Reservation from May 2019 to April 2020.
In July of 2021, a federal grand jury returned an indictment against Dougherty charging him with possession and distribution of methamphetamine on the Choctaw Indian Reservation. On August 31, 2022, Dougherty entered a guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
Dougherty was sentenced to a prison term of 57 months to be followed by five years of supervised release.
The case was investigated by the Choctaw Police Department of the Mississippi Band of Choctaw Indians, the U.S. Department of Interior Bureau of Indian Affairs, and the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Kevin J. Payne and Special Assistant United States Attorney Brian Burns.
Omaha Man Sentenced for Receipt of Child PornographyRead the Press Release
Acting United States Attorney Steven A. Russell announced that Jose Ramon Cisneros Perez, 22, was sentenced today in federal court in Omaha for receipt and attempted receipt of child pornography. The Honorable Robert F. Rossiter sentenced Cisneros to 96 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Cisneros will serve 15 years of supervised release.
In February 2020, the father of a 10-year-old girl in Kansas City, Missouri, reported to the Kansas City Police Department that his daughter had been communicating with an unknown person online who had asked the girl to send sexually explicit photos of herself. A detective in Kansas City began investigating and, pretending to be the 10-year-old child, engaged in continued conversation with the person online. The suspect requested that the girl send sexually explicit videos of herself. After determining that the suspect’s IP address tied him to a residence in Omaha, Nebraska, the detective referred the case to the Omaha FBI’s Child Exploitation Task Force. Investigators executed a search warrant at the suspect’s residence and made contact with Cisneros, who admitted to engaging in the conversation with the child in Kansas City and admitted to similar conversations with other children online. Forensic examinations of Cisneros’s electronic devices showed images of child pornography stored on the devices.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Kansas City Police Department and the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Omaha Man Sentenced for Distribution of Child PornographyRead the Press Release
Acting United States Attorney Steven Russell announced that Brandon Lanza, Omaha, Nebraska, was sentenced today in federal court in Omaha for distribution of child pornography. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Lanza to 132 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Lanza will serve 10 years of supervised release.
In September 2019, law enforcement began investigating Cybertip Reports from Discord and Facebook stating that a user had distributed child pornography in chats with other users. The chats included discussions of plans to sexually abuse specific children. The suspect was identified as Lanza and the IP address utilized for the child pornography uploads was associated with Lanza’s apartment in Omaha. The children being discussed were known to Lanza through his personal life. Investigators also observed that the Discord and Facebook user sometimes logged on from an IP address associated with Omaha Public Schools, where Lanza was employed as an IT/Network Administrator.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Olympia, Washington man indicted for hate crimes for arsons at Jehovah’s Witness Kingdom HallsRead the Press Release
Seattle – A 50-year-old Olympia, Washington man was indicted late yesterday by a federal grand jury for three arsons that damaged or destroyed Jehovah’s Witness Kingdom Halls, announce U.S. Attorney Nick Brown. Mikey Diamond Starrett, aka Michael Jason Layes, was charged in a superseding indictment with three counts of damage to religious property, including the use of fire, and three counts of using fire to commit a federal felony. Layes will be arraigned on the indictment next week.
“As DOJ noted this week, we are putting a priority on prosecuting hate crimes,” said U.S. Attorney Brown. “We continue to work closely with our faith communities so that they have the most current information on how to protect places of worship.”
According to the superseding indictment, the defendant allegedly set fire to Jehovah’s Witness Kingdom Halls on three occasions: the Kingdom Hall of Tumwater, Washington on March 19, 2018; the Kingdom Hall of Olympia, Washington on March 19, 2018; and the Kingdom Hall of Olympia, Washington on July 3, 2018. The superseding indictment alleges the defendant defaced, damaged, and destroyed religious real property at the Kingdom Halls because of the religious character of the properties.
Fire destroys Olympia Jehovah's Witness Hall on July 3, 2018“Our criminal investigators have been working tirelessly on these attacks since they began in 2018,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “We hope this indictment helps calm the fears of those in the Pierce and Thurston county areas through the knowledge that Layes is being prosecuted for his alleged crimes.”
Layes was previously charged with one count of damage to religious property, including the use of a dangerous weapon, and one count of use of a firearm during and in relation to a crime of violence, in connection with a shooting that damaged a Jehovah’s Witness Kingdom Hall in Yelm, Washington, on May 15, 2018. The defendant was also previously charged with one count of unlawful possession of an unregistered firearm. Layes has been in federal custody since his arrest on September 8, 2021.
If convicted, the defendant faces a sentence of up to 20 years in prison on each charge of damage to religious property. The defendant faces up to 10 years in prison if convicted on the unlawful possession of an unregistered firearm charge. If convicted, the defendant faces at least 10 years in prison to run consecutive to any sentence imposed for each of the remaining offenses.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) Seattle Field Division, the FBI, the Tumwater, Washington Police Department, and the Olympia, Washington Police Department.
The case is being prosecuted by Assistant United States Attorney Rebecca S. Cohen for the Western District of Washington and Trial Attorney Matthew Tannenbaum for the Justice Department’s Civil Rights Division. Ms. Cohen serves as the Civil Rights Coordinator for the U.S. Attorney’s Office’s Criminal Division.
For more information and resources about DOJ’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
New Orleans Man Violates the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on December 8, 2022 REGIS GRIMES, age 34, a resident of New Orleans, Louisiana, pled guilty to a one-count indictment, charging him with being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2).
GRIMES faces a maximum sentence of 10 years imprisonment, a fine of up to $250,000.00, a period of supervised release of up to 3 years, and a mandatory special assessment fee of $100.00.
According to court records, the New Orleans Police Department arrested GRIMES after receiving a call from a concerned citizen who observed an unknown male, later identified as Grimes, sitting on the steps of a church selling drugs. Responding officers observed GRIMES sitting on the steps. After instructing GRIMES to leave, the officers observed GRIMES in possession of a pistol that was concealed in the waistband of his pants. GRIMES is a convicted felon and is prohibited from possessing a firearm. Additionally, during a search incident to his arrest, the officers located individually wrapped plastic bags containing oxycodone, marijuana, heroin, cocaine, and multiple denominations of U.S. currency in GRIMES’s pants.
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 investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
New Orleans Man Sentenced to Ten Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS – On December 13, 2022, United States District Judge Greg G. Guidry sentenced RENALDO RUFFIN, age 30, of New Orleans, to ten years in federal prison on each of two violations of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
RUFFIN had previously pled guilty to one count of being a felon in possession of a firearm, and one count of being a felon in possession of ammunition, in violation of 18 U.S.C. § 922(g)(1). Based on court records, RUFFIN possessed a Glock Model 23, .40 S&W caliber semiautomatic handgun on or about August 30, 2020. Additionally, RUFFIN possessed 5.56 caliber ammunition on January 24, 2022.
Judge Guidry sentenced RUFFIN to the statutory maximum sentence of 10 years of imprisonment on each count, to run concurrently, and ordered that RUFFIN served 3 years of supervised release following his prison sentence. RUFFIN was also ordered to pay $200 in mandatory special assessment fees.
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 is being investigated by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives and the Louisiana State Police. Assistant United States Attorney David Haller is in charge of the prosecution.
Nashua Man Pleads Guilty to Drug Trafficking and Firearm ChargesRead the Press Release
CONCORD –Philip Wetmore, 32, of Nashua, pleaded guilty in federal court to drug trafficking and possessing firearms in furtherance of his drug trafficking, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on two occasions in February 2022, Wetmore sold approximately 81 grams of crystal methamphetamine to an individual who was cooperating with the Federal Bureau of Investigation (“FBI”) at a residence and in a retail store in Nashua, New Hampshire. After the second drug sale, the FBI arrested Wetmore, who had a loaded firearm on his person, as he drove out of the store parking lot. The FBI subsequently executed a search warrant on Wetmore’s vehicle and seized approximately 671 grams of crystal methamphetamine, a second loaded firearm, and other items associated with drug trafficking. Wetmore is legally prohibited from possessing firearms.
Wetmore is scheduled to be sentenced on March 22, 2023.
This matter was investigated by the Federal Bureau of Investigation’s Major Offender Task Force with the assistance of the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer C. Davis.
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Missouri Man Pleads Guilty to Federal Hate Crime and Arson Charges for Burning Down Islamic CenterRead the Press Release
WASHINGTON – The Justice Department announced today that a Missouri man pled guilty to hate crime and arson violations for burning down the Cape Girardeau Islamic Center (the Center) in Cape Girardeau, Missouri.
According to court documents, on April 24, 2020, which was the first morning of the Islamic holy month of Ramadan, at approximately 4:50 a.m., Nicholas John Proffitt, 44, set fire to the Islamic Center at 298 Northwest End Boulevard, in Cape Girardeau, Missouri. The Center’s video security system showed Proffitt throwing multiple objects through the building’s glass window, causing it to break. Proffitt threw two containers into the Center through the broken window and stepped through the window to enter the Center. He then poured the contents of two gallon-sized containers throughout the foyer and down the hallway. Proffitt lit two fires that immediately spread through the inside of the building. The Islamic Center building suffered severe damage that rendered it unsuitable for use as a religious center. Proffitt admitted that he set the fire to the Islamic Center because of the religious character of the building.
“Attacks on houses of worship, like the Cape Girardeau Islamic Center, strike at the very heart of religious freedom and observance,” said Assistant Attorney Kristen Clarke for the Justice Department’ Civil Rights Division. “The Justice Department will continue to vigorously investigate and prosecute individuals who violently target religious institutions and communities.”
“This is the second time Nicholas Proffitt attacked the Islamic Center in Cape Girardeau, and his third attack against a house of worship,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “He placed the occupants of that building at risk of death or serious injury, and he will be held responsible for his actions with a significant prison sentence.”
“The FBI just released the 2021 statistics on reported hate crime incidents nationwide. In Missouri, incidents reported to law enforcement jumped by almost 70%,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “The FBI elevated investigating hate crimes as one of the top priorities for the Bureau because of the alarming increases in recent years. As such, the FBI and our law enforcement partners left no stone unturned to bring Nicholas Proffitt and other perpetrators to justice.”
“ATF has a long tradition of fire and arson investigation. In no case is that expertise more critical than a fire such as this,” said Special Agent in Charge Fred Winston of the ATF Kansas City Field Division. “When a house of worship is intentionally damaged by fire, it is not only that congregation that suffers, but the entire community. Religious centers, churches and mosques are often at the center of our neighborhoods, offering sanctuaries of peace and caring to those in need. Today’s guilty plea is a direct result of local, state, and federal law enforcement working together to ensure justice in this unthinkable act.”
Sentencing is scheduled for May 2, 2023. Proffitt faces up to 20 years in prison for damage to religious property and a mandatory minimum of 10 years in prison, consecutive to any other sentence, for using fire to commit a federal felony. Proffitt also faces a fine of up to $250,000 with respect to each charge.
The Cape Girardeau Police Department, the FBI Kansas City Field Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Missouri State Fire Marshal’s Office, and the Perryville Police Department investigated the case.
Assistant U.S. Attorney Paul Hahn for the Eastern District of Missouri and Trial Attorney Noah Coakley II of the Civil Rights Division’s Criminal Section prosecuted the case.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.Mexican Man Sentenced for Conspiracy and Transporting Illegal Aliens within the U.S.Read the Press Release
Gulfport, Miss. – A Mexican man was sentenced to 54 months in prison for multiple federal felonies related to smuggling illegal aliens.
Abel Michua-Tototzin, 37, was sentenced on December 13, 2022, to 54 months in prison for conspiracy to bring aliens into the U.S. at a place other than a designated port of entry and conspiracy to unlawfully transport aliens within the U.S. He was also sentenced to 54 months in prison for unlawful transportation of aliens within the U.S, and 24 months in prison for unlawful return of an alien to the U.S. after removal or deportation. All three sentences will run concurrently for a total of 54 months in prison followed by three years of supervised release.
After completing his prison sentence, Michua-Tototzin is subject to Department of Homeland Security proceedings to remove him again from the United States. If he were to unlawfully return after being removed, within his three-year period of supervised release, he would face additional penalties for violation of supervised release in addition to being subject to further felony prosecution.
Michua-Tototzin was previously found guilty of the three felony offenses following a three-day trial before U.S. District Judge Taylor McNeel in Gulfport.
On May 17, 2022, the Border Patrol stopped a vehicle driven by the Michua-Tototzin. He did not have a driver’s license and was found, along with his six passengers, to be illegally present in the U.S. All seven aliens were transported to the Gulfport Border Patrol Station for processing, where Station Special Agents from Homeland Security Investigations joined the case. Michua-Tototzin and his passengers were processed using Homeland Security computer systems in which fingerprints are electronically scanned and matched to prior records. Michua-Tototzin’s identity, as an alien who had returned to the U.S. after deportation or removal, was confirmed, and his six passengers were processed for removal from the U.S.
The case was investigated by the U.S. Border Patrol, Homeland Security Investigations, and the Hancock County Sheriff’s Department.
Assistant U.S. Attorneys Stan Harris and Kathlyn Van Buskirk prosecuted the case.
Methuen Man Sentenced for Fentanyl TraffickingRead the Press Release
BOSTON – A Methuen man was sentenced today in federal court in Boston for his involvement in a fentanyl distribution conspiracy.
Nino De Leon Guzman, a/k/a “Chino,” 31, was sentenced by U.S. District Court Judge Allison D. Burroughs to four years in prison and three years of supervised release. On Aug. 3, 2022, Guzman pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, two counts of distribution of fentanyl, one count of distribution of 40 grams or more of fentanyl and one count of possession with intent to distribute 400 grams or more of fentanyl.
From October 2020 through in or about June 2021, undercover agents purchased fentanyl from De Leon Guzman and his associated drug trafficking organization on nine separate occasions in the Lawrence and Methuen areas. At the time of his arrest on June 23, 2021, De Leon Guzman was found in possession of fentanyl packaged for distribution and the cell phone for fentanyl deals. A subsequent search of De Leon Guzman’s residence in Methuen resulted in the recovery of a kilogram brick of fentanyl, a blender containing multiple bags of fentanyl, a drug ledger, clothing he had worn in prior drug transactions and a sock in a nightstand containing $2,500 cash in drug proceeds.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Member of Money Laundering Operation Pleads Guilty in Connection with $5 Million Online Vehicle Sale ScamRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that Lithuanian national STANISLAV TUNKEVIC pled guilty today in Manhattan federal court to conspiracy to commit bank fraud in connection with a scheme to launder fraud proceeds derived from an online vehicle sale scam that generated at least $5.3 million from dozens of defrauded consumers. TUNKEVIC pled guilty before U.S. District Judge Analisa Torres.
U.S. Attorney Damian Williams said: “Tunkevic and his co-defendants have admitted to getting paid to use fake documents and shell companies to open bank accounts in order to receive criminal proceeds. Without their knowing involvement, online fraudsters would not be able to profit from their illegal schemes. Tunkevic and his co-defendants will now face prison terms and be required to forfeit their ill-gotten gains.”
As alleged in the Complaint and the Indictments and based on statements made in court:
At various times from at least March 2019 through approximately March 2021, TUNKEVIC and co-defendants KAROL KAMINSKI, ARTURAS GILYS, and SVETLANA VAIDOTIENE were Lithuanian nationals who were recruited in Lithuania to travel to New York City in order to participate in a money laundering operation based in Brooklyn. The operation was coordinated in New York City by co-defendant NATALIA KORZHA and also involved her son and co-defendant VLADISLAV NECEAEV. Under the direction of KORZHA, NECEAEV, TUNKEVIC, KAMINSKI, GILYS, VAIDOTIENE, and other co-conspirators opened numerous bank accounts in the name of shell companies for the purpose of laundering money stolen from consumers who were trying to buy vehicles online. In exchange, the defendants received a cut of the victims’ money.
Other members of the conspiracy, pretending to represent car dealerships, advertised vehicles that they did not own and were not authorized to sell on fake websites with domain names that sounded like legitimate car dealerships or through online marketplaces like Craigslist and eBay. Victims who responded to those advertisements and negotiated a purchase price were instructed by the purported sellers to wire payment to accounts that NECEAEV, KAMINSKI, TUNKEVIC, GILYS, VAIDOTIENE, and other co-conspirators opened. Once the payments cleared, the defendants quickly withdrew the funds before the victims realized they had been defrauded. The victims never received the vehicles they thought they had bought or any refunds from the fake sellers. In total, dozens of victims were defrauded of a total of at least $5.3 million.
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TUNKEVIC, 48, of Vilnius, Lithuania, pled guilty to one count of conspiracy to commit bank fraud and agreed to pay forfeiture and restitution in the amount of $405,000. TUNKEVIC is scheduled to be sentenced by Judge Torres on March 15, 2023.
KORZHA, 50, of Brooklyn, New York, pled guilty to one count of conspiracy to commit bank fraud on May 4, 2022. She was sentenced by Judge Torres on September 7, 2022, to 48 months in prison and was ordered to pay forfeiture and restitution in the amount of $5,386,538.
NECEAEV, 29, of Brooklyn, New York, pled guilty to one count of conspiracy to commit bank fraud on March 14, 2022. He was sentenced by Judge Torres on September 7, 2022, to 18 months in prison and was ordered to pay forfeiture and restitution in the amount of $458,300.
KAMINSKI, 32, of Vilnius, Lithuania, pled guilty to one count of conspiracy to commit bank fraud on November 9, 2022, and agreed to pay forfeiture and restitution in the amount of $338,700. KAMINSKI is scheduled to be sentenced by Judge Torres on March 15, 2023.
GILYS, 41, of Vilnius, Lithuania, pled guilty to one count of conspiracy to commit bank fraud on November 15, 2022, and agreed to pay forfeiture and restitution in the amount of $321,700. GILYS is scheduled to be sentenced by Judge Torres on March 15, 2023.
VAIDOTIENE, 55, of Vilnius, Lithuania, pled guilty to one count of conspiracy to commit bank fraud on September 20, 2022, and agreed to pay forfeiture and restitution in the amount of $271,000. VAIDOTIENE is scheduled to be sentenced by Judge Torres on January 18, 2023.
The offense of conspiracy to commit bank fraud carries a maximum sentence of 30 years in prison and a maximum fine of $1,000,000. The crime of conspiracy to commit money laundering carries a maximum sentence of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations and the New York City Police Department. He also thanked the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division, the United States Marshals Service, the Prosecutor General’s Office of the Republic of Lithuania, and the Lithuanian Criminal Police Bureau for their assistance in this investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sarah Lai is in charge of the prosecution.
Maryland Security Guard Convicted of Tax EvasionRead the Press Release
A federal jury convicted a Maryland security guard today of tax evasion.
According to court statements and evidence presented in court, Gaston Gilberto Reyes, of Germantown, did not file income tax returns with the IRS for the years 2015 through 2020. During this period, he did not report more than $1.15 million in total wages from employment at eight different security firms in the Washington, D.C., metropolitan area. Reyes also submitted false Forms W-4 to his employers on which he claimed he was exempt from federal income tax withholding, causing the employers to withhold little or no federal income taxes from his wages. At trial, the evidence established that Reyes did not pay approximately $200,000 in income taxes over the six-year period.
Reyes is scheduled to be sentenced on Feb. 21, 2023. He faces a maximum penalty of five years in prison on each of six charges of tax evasion. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Melissa S. Siskind and George Meggali of the Justice Department’s Tax Division are prosecuting the case.
Maryland Heights Man Admits Sex with 16-Year-Old Runaway He Met OnlineRead the Press Release
ST. LOUIS – A man from Maryland Heights, Missouri on Wednesday admitted engaging in sexual activity with a 16-year-old runaway after they met playing an online game.
Terry E. Kuehnel, 48, pleaded guilty in front of U.S. District Judge Henry E. Autrey to one felony count of coercion and enticement of a minor.
Kuehnel admitted meeting the girl in 2021 while plating an online game. At the time of initial communications, the girl was 15 but initially represented herself to be a young adult.
They began corresponding via text and audio and video communications. At that time, the girl reported that she made Kuehnel aware of her true age of 15 years. During communications, Kuehnel requested pictures of the girl’s genitals.
Kuehnel admitted in his plea that at some point he knew or had reason to know that the girl was a minor and it was not reasonable for him to believe she was older than 16.
On June 5, 2021, ten days after she turned 16, the victim and Kuehnel arranged for her to travel from her home in another state to Missouri, where he met her in a department store parking lot. Kuehnel then brought the victim back to his home where he subjected her to unlawful sexual activity.
After her family reported her missing, law enforcement found the girl at Kuehnel’s home on June 6.
Kuehnel faces a sentence of up to 20 years in prison, a fine of $250,000, or both at his sentencing, scheduled for March 15, 2023.
The case was investigated by the Maryland Heights Police Department. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.