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27 May 2022
Shiprock man arraigned for assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Raydell Billy, 31, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, was arraigned in federal court today on a two-count indictment charging him with conspiracy to commit assault with a dangerous weapon and assault with a dangerous weapon with the intent to do bodily harm. Billy will remain in custody pending trial, which has not been scheduled.
A grand jury indicted Raydell Billy and co-defendants Raynorma Billy and Alvin White on May 24. According to the indictment and other court records, on April 11, Raynorma allegedly drove Raydell and White to a residence at South Side Non-profit Housing in Shiprock with the intent to assault a victim, identified as John Doe. After they entered the residence, Raynorma allegedly prevented the other occupants of the residence from intervening while Raydell and White assaulted John Doe. The indictment alleges that White threatened John Doe with a machete and both Raydell and White allegedly beat John Doe with their fists.
The alleged assault occurred on the Navajo Nation.
White was arrested on April 24 and made an initial appearance in court on April 28. White appeared for a preliminary and detention hearing on May 2 and will remain in custody pending trial. White is scheduled for arraignment on May 31.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Raydell, Raynorma and White each face up to five years in prison for conspiracy and up to ten years in prison for assault with a dangerous weapon with the intent to do bodily harm.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Department of Criminal Investigations. Assistant United States Attorney Mark Pfizenmayer is prosecuting the case.
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Second Man Pleads Guilty to Scheme to Attack Democratic Headquarters in SacramentoRead the Press Release
SAN FRANCISCO – The second of two California men pleaded guilty today to a conspiracy to destroy by fire or explosive a building affecting interstate commerce in a scheme to attack the Democratic Headquarters in Sacramento, announced U.S. Attorney Stephanie M. Hinds, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and Special Agent in Charge Sean Ragan of the FBI’s San Francisco Field Office.
Ian Benjamin Rogers, 46, of Napa, and Jarrod Copeland, 38, previously of Vallejo, were indicted on July 21, 2021, in connection with a plan to attack targets they associated with Democrats after the 2020 Presidential election. Today, Rogers pleaded guilty to the conspiracy charge in United States District Court. Rogers also pleaded guilty to additional weapons violations, including one count of possession of unregistered destructive devices, and one count of possessing an illegal machine gun. Copeland previously pleaded guilty to the conspiracy charge and an additional count of destruction of records.
According to the plea agreements entered at the time of their guilty pleas, Rogers and Copeland admitted that they conspired together between November 2020 and January 2021 to destroy the John L. Burton Democratic Headquarters in Sacramento. Rogers and Copeland admitted that they discussed plans to attack the building with cans of gasoline, including by throwing gas cans through the front windows of the building and igniting the gasoline to burn down the building.
Documents filed by the government describe that in November 2020, Rogers told Copeland that he would “hit the enemy in the mouth” by using Molotov cocktails and gasoline to attack targets associated with Democrats, including the Governor’s Mansion and the Democratic Headquarters Building in Sacramento. According to court documents, Rogers and Copeland went on to discuss potentially getting labeled as “domestic terrorists,” with Rogers describing a “hope [their] actions will make others to get involved.” The indictment describes that in late December 2020, Copeland told Rogers he contacted an anti-government militia group to gather support for the movement and in January 2021, Rogers stated to Copeland “I want to blow up a democrat building bad.” Copeland agreed, saying, “I agree” and “Plan attack.” They agreed to start with the Democratic Headquarters in Sacramento and to “see what happens.”
Rogers admitted in his plea agreement to viewing the building on the internet and sending a map of the location to Copeland. The men also admitted to discussing the building’s proximity to a fire department and certain law enforcement in devising their plan, using that information to refine the method of attack to ensure they caused the greatest damage to the building while allowing their escape without detection. Rogers and Copeland also discussed waiting until after the presidential inauguration on Jan. 20, 2021, before carrying out the attack. As described in the indictment, Rogers wrote to Copeland, “after the 20th we go to war.”
According to court documents, on Jan. 15, 2021, law enforcement officers searched Rogers’s home and business and seized a cache of weapons, including 45 to 50 firearms, thousands of rounds of ammunition, and five pipe bombs. Rogers admitted in his plea agreement that he had constructed the pipe bombs and anticipated using them against the property of those whose political views differed from his, including the Democratic Headquarters building in Sacramento. He further admitted that he possessed at least three fully automatic machine guns and considered using one of them in the attack on the building.
In addition, Copeland admitted in his plea agreement that after he learned of Rogers’s Jan. 15 arrest, he notified a militia group to which he belonged and, in response to instruction from them, destroyed evidence to prevent law enforcement from finding the evidence.
Rogers and Copeland each face a maximum statutory sentence of 20 years imprisonment, a three-year term of supervised release, and a $250,000 fine for the conspiracy charge. In addition, Rogers faces a maximum of 10 years in prison for the weapons charges and Copeland faces a maximum of 20 years in prison for the destruction of evidence charge. Any sentence will be determined only after considering the U.S. Sentencing Guidelines and other statutory factors. Rogers also faces numerous state charges arising out of his possession of the pipe bombs and machine guns, and his possession of assault rifles prohibited under California law, and he is being prosecuted for those offenses by the Napa County District Attorney’s Office.
Rogers’s sentencing is scheduled for September 30, 2022. Copeland’s sentencing, also pending before U.S. Senior District Judge Charles R. Breyer in San Francisco, has not yet been scheduled. Rogers has remained in continuous custody since his arrest on Jan. 15, 2021; he was transferred from state to federal custody in January 2022. Copeland has remained in federal custody since his arrest on July 14, 2021.
Assistant U.S. Attorneys Frank Riebli and Eric Cheng of the Northern District of California are prosecuting the case, with assistance from Trial Attorney David Cora of the National Security Division’s Counterterrorism Section. The FBI’s San Francisco Field Office is investigating the case, with valuable assistance provided by the FBI Sacramento Field Office and Napa County Sheriff’s Department.
School and Owner Pay over $1 Million to Resolve Allegations of Attempts to Improperly Influence the School's Student Loan Default RateRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that CAREER TRAINING SPECIALISTS, LLC, doing business as STONE ACADEMY, and its owner, MARK SCHEINBERG, have paid more than $1 million to resolve allegations that they violated the federal False Claims Act by concealing a series of money order payments made by Scheinberg to prevent certain loans from being counted in Stone Academy’s student loan default rate, and for failing to disclose Stone Academy’s actual, higher default rate to the U.S. Department of Education.
Stone Academy is a for-profit school with campuses in East Hartford, Waterbury and West Haven that awards career diplomas in various medical fields, and it participates in federal student loan and grant programs under Title IV of the Higher Education Act of 1965. One measure that determines an institution’s eligibility to participate in Title IV programs is the institution’s “cohort default rate” (“CDR”), which is the percentage of the institution’s federal student loan borrowers who default (or are deemed to default) within a specified time after entering repayment status. If an institution’s CDR is too high – an indicator that too many of an institution’s graduates are unable to repay their student loans – the institution faces administrative consequences that may include termination of eligibility to participate in certain Title IV programs. For purposes of calculating an institution’s CDR, a borrower is considered to be in default if an institution – or an institution’s owner, agent or affiliated individual – makes a payment to prevent a borrower’s default on a loan included in a cohort.
This settlement resolves allegations that, between February 2015 and March 2019, Scheinberg and Stone Academy mailed 154 small, direct payments to loan servicers on behalf of 102 students in attempts to prevent those students from defaulting on their loans and being counted in Stone Academy’s CDR. The payments were made with money orders purchased and filled out by Scheinberg without the students’ knowledge or consent, and in a manner intended to conceal the fact that these payments were made by Scheinberg and Stone Academy. Stone Academy then failed to disclose to the Department of Education its actual, higher CDR reflecting the deemed default of numerous borrowers given Scheinberg’s concealed payments.
In addition to making payment of $1,023,950, plus interest, under a civil settlement agreement, Stone Academy and Scheinberg also entered into an administrative agreement with the Department of Education in which Scheinberg agreed to cease involvement and participation in the operations, and divest direct ownership, of both Stone Academy and another for-profit school, Creative Workforce LLC, doing business as Paier College of Art. The administrative agreement also governs Scheinberg’s agreed-to retirement from Goodwin University and the University of Bridgeport.
“The cohort default rate is an important metric that students can use to research whether a school provides a valuable education because it can show whether the degree they would earn will help them find employment that allows them to stay current on their student loans,” said U.S. Attorney Avery. “Educational institutions – especially private, for-profit schools – that attempt to hide high student loan default rates from the Education Department and their students not only risk forfeiting their and their students’ eligibility to receive federal funds, but they risk federal enforcement by our office and our investigative agency partners.”
“Today’s settlement is a result of the work and effort of the Office of Inspector General and the Department of Justice to protect and maintain the integrity of federal student aid programs,” said Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office. “We will continue to work together to ensure that federal student aid funds are used as required by law. America’s taxpayers and students deserve nothing less.”
This investigation was conducted by the U.S. Department of Education – Office of Inspector General and the U.S. Postal Inspection Service. This matter was prosecuted by Assistant U.S. Attorney Sarah Gruber with the assistance of Auditor Susan N. Spiegel, along with assistance from the U.S. Department of Education’s Office of General Counsel and Federal Student Aid.
San Luis Obispo Man Sentenced to Nearly 2 Years in Federal Prison for Bribing County Supervisor and Filing False Income Tax ReturnsRead the Press Release
LOS ANGELES – A San Luis Obispo man was sentenced today to 22 months in federal prison for paying a county supervisor approximately $32,000 in bribes – most of them in cash – in exchange for the supervisor’s votes and influence on other votes affecting his cannabis business interests.
Helios Raphael Dayspring, a.k.a. “Bobby Dayspring,” 36, was sentenced by United States District Judge André Birotte Jr. Dayspring has paid the restitution order of $3,438,793 to the IRS in this case.
In October 2021, Dayspring pleaded guilty to one count of bribery and one count of subscribing to a false income tax return.
Dayspring owned, operated, and had a controlling interest in multiple farms that grew cannabis in San Luis Obispo County. He also had ownership interests in businesses that sold marijuana to the public, including in Grover Beach. To further his interests in the farms that grew cannabis in San Luis Obispo County, Dayspring began paying bribes to a San Luis Obispo County supervisor in the fall of 2016 and continued doing so through November 2019.
In total, Dayspring paid the late Third District supervisor multiple bribes in cash and money orders totaling $32,000. In exchange, the supervisor voted on matters affecting Dayspring’s farms, including voting multiple times in favor of legislation that permitted Dayspring’s farms to operate before it had obtained final permitting approvals.
In addition to bribing the San Luis Obispo County supervisor, Dayspring attempted to bribe the then-mayor of Grover Beach in exchange for two dispensary licenses in that city. The attempted $100,000 bribe took place during a dinner meeting in September 2017. The mayor did not respond to the offer, and Dayspring did not end up paying the bribe.
Dayspring also substantially underreported his personal income on his federal tax returns for the years 2014 through 2018, which resulted in the IRS losing more than $3.4 million in tax revenue. For example, for the tax year 2018, Dayspring falsely reported his taxable income as $1,262,894, when in fact his income was greater than $6.5 million.
Dayspring “had one goal: build a cannabis empire,” prosecutors wrote in a sentencing memorandum. “To accomplish that goal, he would not let anything get in his way, including the law.”
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section prosecuted this case.
San Antonio Man Sentenced for Arson of Travis County Political Party OfficeRead the Press Release
AUSTIN – A San Antonio man was sentenced today to 72 months in prison for arson.
According to court documents, on September 29, 2021, Ryan Taylor Faircloth, 31, threw a Molotov cocktail through the window of the Travis County Democratic Party office in downtown Austin, causing a fire. Faircloth admitted to targeting the political party office because he opposed positions he believed to be taken by the Democratic Party. A good Samaritan was able to extinguish the fire before 911 responders arrived.
On January 10, 2022, Faircloth pleaded guilty to one count of arson. In addition to the prison sentence, Faircloth was ordered to pay $12,472.84 in restitution and a $5,000 fine.
“Violence in the political process is unacceptable,” said U.S. Attorney Ashley C. Hoff. “We all must respect the rule of law. Those who commit acts of violence or destroy property for a political or ideological agenda will be held accountable for their crimes. My office will continue to investigate and bring to justice anyone who uses violent acts to harm, intimidate or coerce their fellow citizens participating in the political process.”
"Those who commit violence for any ideological agenda will be held accountable for their actions," said FBI San Antonio Special Agent in Charge Oliver E. Rich Jr.
The FBI Joint Terrorism Task Force, with assistance from the Austin Police and Fire Departments, investigated the case.
Assistant U.S. Attorneys G. Karthik Srinivasan and Michael C. Galdo prosecuted the case.
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St. Croix Man Charged with Possession of an Unlicensed FirearmRead the Press Release
St. Croix, USVI – United States Attorney Delia L. Smith announced today that an Information was filed charging Rionel Allembert, 21, of St. Croix, with possession of an unlicensed firearm and possession of a firearm with a school zone. If convicted, Allembert faces up to five years in prison.
According to court documents, on September 28, 2021, members of the Virgin Islands Police Department located a Taurus 9mm handgun in a ditch at #21 Anna’s Hope, St. Croix. DNA testing later revealed the presence of Allembert’s DNA on the firearm. Allembert did not have a license to possess the firearm which was located approximately 290 feet from the Church of God of Holiness Academy, a preschool.
This case is being investigated by the Virgin Islands Police Department and members of the High Intensity Drug Trafficking Area (HIDTA) Task Force are investigating, and Assistant United States Attorney Daniel H. Huston is prosecuting the case.
This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
United States Attorney Smith reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
St. Croix Man Charged with Possession of an Unlicensed FirearmRead the Press Release
St. Croix, USVI – United States Attorney Delia L. Smith announced today that an Information was filed charging Rionel Allembert, 21, of St. Croix, with possession of an unlicensed firearm and possession of a firearm with a school zone. If convicted, Allembert faces up to five years in prison.
According to court documents, on September 28, 2021, members of the Virgin Islands Police Department located a Taurus 9mm handgun in a ditch at #21 Anna’s Hope, St. Croix. DNA testing later revealed the presence of Allembert’s DNA on the firearm. Allembert did not have a license to possess the firearm which was located approximately 290 feet from the Church of God of Holiness Academy, a preschool.
This case is being investigated by the Virgin Islands Police Department and members of the High Intensity Drug Trafficking Area (HIDTA) Task Force, and Assistant United States Attorney Daniel H. Huston is prosecuting the case.
This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
United States Attorney Smith reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Richmond Man Pleads Guilty to $1 Million Paycheck Protection Program Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to defrauding the Paycheck Protection Program (PPP) of over $1 million in funds intended for small businesses affected by the COVID-19 Pandemic.
According to court documents, from April 2020 to April 2021, Moe Ayemen Mathews, 51, with the assistance of his co-conspirator, submitted at least 38 fraudulent PPP loan applications to financial institutions for businesses the conspirators claimed to own and operate. In their first draw PPP applications, the conspirators falsely certified that the information and supporting documentation provided was true and accurate when, in fact, the applications contained false statements, false certifications, and fabricated tax documents. For instance, the conspirators repeatedly inflated or fabricated the average monthly payroll and number of employees working for their purported businesses, and they submitted fabricated tax documents to substantiate the false information provided in their PPP applications. Once their fraudulent applications were approved, the conspirators did not use the funds in accordance with the program’s requirements.
Additionally, after their first draw PPP applications were approved and funded, the conspirators submitted fraudulent second draw PPP applications predicated on their fraudulently-obtained first draw PPP loans. When submitting the second draw PPP applications for their purported businesses, the conspirators concealed the fact that they had intentionally and knowingly submitted false and misleading first draw PPP applications. Once these second-draw applications were approved, the conspirators used the loan proceeds contrary to the program’s requirements.
Mathews is scheduled to be sentenced on October 7. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA); and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (FDIC), made the announcement after Senior U.S. Districy Judge Henry E. Hudson accepted the plea.
The U.S. Attorney’s Office for the Eastern District of Virginia expresses its appreciation to the Virginia State Corporation Commission for their assistance with this investigation.
Assistant U.S. Attorney Kashan Pathan is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-44.
Retired Massachusetts State Trooper Sentenced in Overtime Abuse InvestigationRead the Press Release
BOSTON – A retired Massachusetts State Police Trooper was sentenced yesterday in federal court in Boston in connection with overtime abuse at the Massachusetts State Police (MSP).
Daren DeJong, 60, of Uxbridge, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to two years of probation, with the first six months to be served in home confinement. DeJong was also ordered to pay a fine of $5,500 and restitution in the amount of $14,062. In January 2019, DeJong pleaded guilty to one count of embezzlement from an agency receiving federal funds.
DeJong, who is retired, was a Trooper assigned to Troop E, which is responsible for enforcing criminal law and traffic regulations along the Massachusetts Turnpike, Interstate I-90. DeJong received overtime pay for hours that he either did not actually work at all, or shifts in which he departed one to seven hours early.
The conduct involves overtime pay for selective enforcement initiatives, including the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative. Both initiatives are intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers and targeting vehicles traveling at excessive speeds. DeJong was required to work the entire duration of the shifts – either four or eight hours – and truthfully report the date, time and sector of deployment on the citations issued during the shift. DeJong concealed the fraud by submitting citations that were issued outside the overtime shift, altered the citations to create the appearance that citations were issued during the overtime shift, and/or submitted citations that were never issued and never took place.
Trooper DeJong earned $200,416 in 2016, which included approximately $68,394 in overtime, of which more than $14,000 was attributable to AIRE and X-Team shifts that DeJong either left early or did not show up for.
In 2015 and 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
DeJong is the eighth and final defendant to be sentenced in the case involving MSP Troop E overtime abuse.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Christopher A. Scharf, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Rollins’ Criminal Division prosecuted the case.
Putnam County Commissioner Facing Child Pornography ChargesRead the Press Release
NASHVILLE – A Putnam County Commissioner was charged yesterday with possession, receipt, and distribution of child pornography, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Jimmy Ray Neal, 57, of Baxter, Tennessee, was arrested at his home, after FBI and Homeland Security Investigations agents executed a search warrant. Neal was transported to Nashville and appeared before a U.S. Magistrate Judge late yesterday.
A criminal complaint obtained yesterday alleges that Neal was identified as an administrator of a group in the Kik app in which images of child pornography were viewed and shared with other users. Specifically, the images depicted naked pre-pubescent females with the focus on the genital area.
This long-running investigation by the FBI began in July 2021, and after the arrest of an Oklahoma man on child pornography charges, other users in the Kik app group were identified, including “tennesseemaster,” later identified as Jimmy Ray Neal.
A preliminary and detention hearing is set for Tuesday, May 31, 2022, at 2 p.m.
If convicted, Neal faces a mandatory minimum of five years, and up to 20 years in prison.
This case is being investigated by the FBI and Homeland Security Investigations. Assistant U.S. Attorney Monica Morrison is prosecuting the case.
The charges are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
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Philadelphia LCN Associate Sentenced to Five Years in Prison for Racketeering and Drug DealingRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Daniel Castelli, 68, of Philadelphia, PA, was sentenced to five years in prison and four years of supervised release by United States District Court Senior Judge R. Barclay Surrick for racketeering conspiracy and conspiracy to distribute controlled substances.
In January 2022, the defendant pleaded guilty to a superseding indictment stemming from his involvement in criminal activity with and for the Philadelphia La Cosa Nostra, also known as the LCN, the mafia, and the mob. The Philadelphia LCN is one of a number of LCN organized crime families based in various cities throughout the United States. The goal of the LCN in Philadelphia and elsewhere is to make money through the commission of various crimes, including illegal gambling, loansharking, drug trafficking, and extortion.
According to court documents, and the defendant’s guilty plea, Castelli was an associate of the LCN who worked with LCN members and other associates to commit crimes such as drug trafficking, extortion, and loansharking. The defendant pled guilty to his involvement with the LCN for that conduct as well as for an effort in 2016 to obtain a kilogram of cocaine, intended for later resale, on behalf of other LCN members and associates.
“Even though the Philadelphia mob has been weakened over the decades due in large part to persistent law enforcement, the organization and its criminal activities are still very much a problem and are damaging the communities in which it operates,” said U.S. Attorney Williams. “The U.S. Attorney’s Office is committed to prosecuting anyone who is committing serious federal crimes like these, and we will not rest until the mob is nothing but a bad memory.”
“The Philadelphia LCN is committed to criminality, it seems, with Daniel Castelli admitting he took part,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “He helped the organization make money through all manner of illegal activity, including drug dealing, posing a clear danger to the community. The FBI will continue to target those engaged in organized crime, as we work every day to make Philadelphia safer.”
The case was investigated by the Federal Bureau of Investigation, including its Philadelphia Field Division and Atlantic City Resident Agency, as part of a long-running investigation, with the assistance of the Philadelphia Police Department, the Pennsylvania State Police and the Pennsylvania Office of the Attorney General. The case is being prosecuted by Assistant United States Attorneys Jonathan Ortiz and Justin Ashenfelter, and Trial Attorneys Alexander Gottfried and Brendan Woods of the Department of Justice Criminal Division, Organized Crime and Gang Section.
Peru Man Sentenced for False Statements to the Social Security AdministrationRead the Press Release
DES MOINES, IA – Troy John Pitzen, age 58, of Peru, Iowa, was sentenced May 26, 2022, to 24 months in prison following his guilty plea to making false statements to the Social Security Administration (SSA). Pitzen’s term of imprisonment will be followed by three years of supervised release.
Between 2006 and 2017, Pitzen stole approximately $371,356 in Social Security survivors benefits belonging to his three minor children. Those benefits were paid to Pitzen, as the children’s representative payee, following the death of the children’s mother. During that time, Pitzen repeatedly submitted paperwork to the SSA falsely claiming the children were living with him and he was using the children’s survivors benefits to care for the children. In fact, the children were living with and being cared for by other individuals while Pitzen continued to receive the children’s benefits and converted most of those benefits to his own use.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This matter was investigated by the Social Security Administration Office of Inspector General and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Palm Beach Art Dealer Charged with Carrying Out Art Fraud SchemeRead the Press Release
Miami, Florida – Today, Palm Beach art dealer Daniel Elie Bouaziz made his initial appearance before a federal magistrate judge in West Palm Beach to face charges of mail fraud, wire fraud, and money laundering in connection with his alleged scheme to sell forged high-end artwork.
The criminal complaint affidavit alleges the following: Bouaziz engaged in a scheme to sell paintings and other artwork that he falsely marketed for sale as original or authentic pieces by prominent artists including Jean-Michel Basquiat, Andy Warhol, Banksy, and Roy Lichtenstein. Bouaziz sold the fraudulent art from his Worth Avenue galleries in Palm Beach, Florida -- Danieli Fine Art and Galerie Danieli. Victims unknowingly purchased the fraudulent art pieces (some of which were inexpensive reproductions), for tens of thousands, if not hundreds of thousands, of dollars. Bouaziz purchased the low-cost reproductions from online auction sites, then drastically marked-up the prices and sold the works to victims as originals. Bouaziz used several tactics to deceive his victims, including falsifying a work’s provenance (the art’s ownership history) and adding a signature to a piece to make it appear authentic and increase its perceived value. In addition, Bouaziz laundered money he received from the fraudulent art scheme, according to the affidavit.
It is alleged that the following fake pieces, among others, were sold or offered for sale as authentic as part of this scheme:
The Solomon R. Guggenheim Museum print sold by Danieli Fine Art.
The fake George Rodrigue work being sold by Danieli Fine Art.
The fake Basquiat painting for sale at Danieli Fine Art for $12,000,000.00.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, FBI Miami; and Matthew Line, Special Agent in Charge, IRS-Criminal Investigation (IRS-CI) Miami Office, made the announcement.
FBI Miami’s West Palm Beach Office and IRS-CI Miami investigated this matter. Assistant U.S. Attorney Sarah J. Schall is prosecuting this case.
The criminal complaint contains mere allegations. The defendant is presumed innocent unless and until proven guilty in a court of law.
If you believe you have been a victim of art fraud, please contact the FBI’s Art Crime Team at 1-800-CALL-FBI.
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-mj-08209-RMM.
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Orleans Parish Man Sentenced on Weapons ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that defendant JAMAL BAZLEY, of New Orleans, Louisiana, was sentenced on May 26, 2022 by U.S. District Court Chief Judge Nannette Jolivette Brown to 80 months of imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee after previously pleading guilty to Count Two of a three-count indictment.
Count Two charged BAZLEY with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1) and Title 18, United States Code, Section 924(a)(2). According to court documents, on June 2, 2020, investigators arrested BAZLEY and his co-defendant for being felons in possession of firearms. Law enforcement attempted to initiate a traffic stop on a vehicle being driven by BAZLEY; however, he refused to stop and fled into the parking lot of a Home Depot located near the intersection of S. Claiborne Ave. and Earhart Blvd in New Orleans, LA. The vehicle proceeded into the gated parking lot, and attempted to evade law enforcement. BAZLEY and the two other vehicle occupants exited the vehicle and fled on foot. Once the scene was secure, investigators observed a rifle and two handguns within the immediate area of the vehicle, as well as ski masks and a pair of gloves on the front passenger floorboard of the vehicle.
This case was being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Evans praised the work of the Federal Bureau of Investigations. The case was prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney’s Office.
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Orleans Parish Man Indicted for Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – RONNIE DAVIS, age 27, a resident of Orleans Parish, was charged on May 26, 2022 in a one-count indictment by a federal grand jury for possessing a firearm while being a convicted felon, announced U. S. Attorney Duane A. Evans.
According to the indictment, DAVIS, knowing that he had been convicted of a crime punishable by imprisonment for a term exceeding one year in the State of Louisiana, did knowingly possess two firearms, a Taurus 9 mm handgun and a Century Arms "Draco" style 7.62 rifle.
If convicted, DAVIS faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department and is being prosecuted by Assistant U. S. Attorney Mike Trummel.
Orangeburg Felon Who Tried to Flee Officers Pleads Guilty to Federal Gun ChargeRead the Press Release
COLUMBIA, SOUTH CAROLINA —Quinnton Jamar Henderson, 32, of Orangeburg, has pleaded guilty to felon in possession of a firearm.
Evidence revealed that on December 31, 2019, members of the United States Marshals Carolina Regional Task Force were looking for Henderson, who was wanted on an outstanding state court bench warrant, when they located him sleeping inside his vehicle in the driveway of his Orangeburg residence. When officers attempted to wake Henderson up to arrest him, he drove off and fled the scene. A short time later, officers located Henderson in his vehicle on an unpaved roadway off Highway 210 in Branchville. During a search of the area surrounding Henderson’s vehicle, officers located a .380 caliber handgun.
The firearm was preliminarily linked through ballistics analysis as having been involved in a shooting incident in Cayce on December 22, 2019. The National Integrated Ballistic Information Network (NIBIN) is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Henderson’s prior state convictions include the following: possession of stolen firearm (2009), failure to stop for blue light and siren (2009), possession of crack cocaine (2009), possession with intent to distribute cocaine (2009), assault and battery 3rd degree (2012), pointing and presenting a firearm (2012), two counts of failure to stop for a blue light and siren (2017), and two counts of grand larceny (2017).
Henderson faces a maximum penalty of 10 years in federal prison. He also faces a fine of up to $250,000, restitution, and three years of supervision to follow the term of imprisonment. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence Henderson after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Carolina Regional Task Force, South Carolina Law Enforcement Division (SLED), Orangeburg County Sheriff’s Office, and the Cayce Police Department as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Special Assistant U.S. Attorney Casey Rankin Smith is prosecuting the case.
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Operators of Key West Labor Staffing Company Sentenced to Prison for Tax Conspiracy and Immigration CrimesRead the Press Release
The operators of a Key West, Florida, labor staffing company were sentenced to prison today for tax and immigration crimes related to their operation of the business.
Former City of Key West Police Officer Igor Kasyanenko was sentenced to 22 months in prison, and Roman Riabov was sentenced to 18 months in prison, for conspiring to defraud the IRS and conspiring to harbor aliens and induce them to remain in the United States.
Mikus Berzins was sentenced to 28 months in prison, and Andrejs Kozlovs was sentenced to 12 months and one day in prison. Both men knowingly hired 10 or more aliens who were not authorized to work in the United States.
According to court documents and statements made in court, from approximately 2014 to 2020, Berzins, Kasyanenko and Riabov owned and operated Phoenix ADB Services Inc. Kozlovs worked for the company from approximately 2016 to 2020. They each facilitated the employment of individuals in hotels, bars and restaurants in Key West and other locations, even though the employees were not authorized to work in the United States. In addition, all four men paid the workers without withholding Social Security, Medicare and income taxes from their wages, and then did not report those wages to the IRS as required by law. Kasyanenko and Riabov also encouraged workers to enter the United States and remain in the country, in violation of immigration laws.
In addition to the term of imprisonment, U.S. District Judge Donald L. Graham ordered defendants Berzins and Kasyanenko to each serve three years of supervised release, and Riabov and Kozlovs to each serve two years of supervised release. Kasyanenko and Riabov were also ordered to pay approximately $3.4 million in restitution, and Kozlovs was ordered to pay approximately $3 million in restitution. Berzins was ordered to pay a fine of $250,000.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.
U.S. Department of Homeland Security, Homeland Security Investigations and IRS-Criminal Investigation investigated the case.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft and Nicholas J. Schilling, Jr. of the Tax Division and Assistant U.S. Attorney Chris Clark for the Southern District of Florida prosecuted the case.
ODAI Wireless, LLC Pleads Guilty to Copyright InfringementRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ODAI WIRELESS, LLC d/b/a ELITE WIRELESS, located in New Orleans, Louisiana, pleaded guilty on May 26, 2022 before U.S. Magistrate Judge Donna Phillips Currault to one-count of copyright infringement.
According to court records, ODAI WIRELESS, LLC, d/b/a “ELITE WIRELESS” infringed the copyright of three fashion designers, Gucci, Supreme and Burberry, when it attempted to import for resale and distribution approximately 1,200 counterfeit cloth masks without the authorization of the three fashion designer copyright holders.
ODAI WIRELESS, LLC, d/b/a “ELITE WIRELESS” faces a fine of up to $200,000.00 or up to twice the gross gain or twice the gross loss to any victim. There is also a $125.00 mandatory special assessment fee due after conviction. Sentencing is scheduled for September 7, 2022 before Judge Currault.
U.S. Attorney Evans praised the work of the Department of Homeland Security – Homeland Security Investigations and U.S. Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
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Northfield Resident Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on May 27, 2022, Shaka Africa, 31, of Northfield, Vermont, was sentenced by U.S. District Court Chief Judge Geoffrey W. Crawford to 32 months of imprisonment and a 3-year term of supervised release for possessing a firearm in 2020 after having been previously convicted of a felony offense.
According to court records and proceedings, Africa was involved in a shooting incident on August 27, 2020, in Morristown Vermont. Africa had just arrived in his vehicle at a residence on Elmore Road when a Jeep that had been following him aggressively pulled into the driveway behind him. Africa, without knowing who was in the Jeep, drew a handgun and fired a round at the Jeep. The bullet struck the Jeep in the left rear wheel well. The occupants of the Jeep immediately departed and reported the incident to police. Police later located Africa and seized a 9-millimeter pistol from him. Africa was determined to be a felon, having been convicted in 2016 of aggravated assault with a weapon in Washington County, Vermont.
United States Attorney Nikolas P. Kerest commended the efforts of the Morristown Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms & Explosives in the investigation and prosecution of Africa.
Assistant U.S. Attorney Matthew J. Lasher prosecuted the case for the United States. Africa was represented by Federal Public Defender Michael Desautels.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. https://www.justice.gov/psn
North Carolina Man Pleads Guilty to Felony Charge for Actions During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A North Carolina man pleaded guilty today to a felony charge for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
Matthew Mark Wood, 25, of Reidsville, North Carolina, pleaded guilty in the District of Columbia to a felony charge of obstruction of an official proceeding and five related misdemeanor offenses. According to court documents, on Jan. 2, 2021, three days before he traveled to Washington, Wood sent an iMessage to another individual in which he stated, “If they want to raid Congress, sign me up, I’ll be brave heart in that bitch!"
On Jan. 6, Wood illegally made his way to the West Plaza of the Capitol soon after the breach of a police line meant to secure the restricted grounds. Wood remained in the West Plaza for about an hour before climbing stairs to the Northwest Plaza. He was several feet behind those who broke out and climbed through the Capitol’s window next to the Senate Wing Door. He was the 10th person to enter through that window, getting inside at approximately 2:13 p.m.
Once inside, Wood and other rioters made their way to the hallway immediately outside the Senate Chamber. Once stopped in their advance by law enforcement there, Wood returned to the first floor and joined a growing group of rioters in the Capitol Crypt. At approximately 2:24 p.m., he sent an iMessage to a group chat, declaring, “We just broke through Capitol police, we are going to bust into the house chambers.”
Wood subsequently followed others through the Small House Rotunda, up a staircase, and into the House Speaker’s office suite. While in that area, he entered at least three offices or other sensitive spaces, including the Speaker’s conference room. He then moved to the Rotunda and other areas of the Capitol, removing the ropes from stanchions he passed, calling protesters to follow, and staying in the building despite clouds of chemical irritant. When the Metropolitan Police Department arrived to assist the Capitol Police in clearing rioters from the Rotunda, Wood and other rioters did not immediately leave. It was not until approximately 3:31 p.m. that Wood finally left the Capitol through the East Rotunda Door.
Wood was arrested on March 5, 2021, in Winston-Salem, North Carolina. He is to be sentenced on Sept. 23, 2022. He faces a statutory maximum of 20 years in prison and a fine of up to $250,000 on the obstruction charge and a total of 3 ½ years of additional time and additional fines for the five misdemeanor offenses. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Middle District of North Carolina.
The case was investigated by the FBI’s Washington Field Office, which identified Wood as #71 on its seeking information photos, and the FBI’s Charlotte Field Office Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.
In the 16 months since Jan. 6, 2021, more than 800 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 250 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
New Haven Man Admits Possessing Firearm While on Federal Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL STANLEY, 33, of New Haven, pleaded guilty today in New Haven federal court to possessing a firearm while on supervised release following a prior federal conviction for illegally possessing a firearm.
According to court documents and statements made in court, Stanley was arrested on September 7, 2021, after New Haven Police conducted a court-authorized search of Stanley’s New Haven hotel room and seized a fanny pack containing his driver’s license, a small quantity of narcotics and a loaded Ruger SR9, 9mm pistol. Stanley’s DNA was recovered from swabs taken from the gun.
Stanley’s criminal history includes multiple felony convictions, including a federal conviction for unlawful possession of a firearm by a felon. In October 2014, Stanley was sentenced to 70 months of imprisonment and three years of supervised release for that offense. He was released from prison in May 2019.
Stanley pleaded guilty to one count of unlawful possession of a firearm by a felon. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on August 8, at which time he faces a maximum term of imprisonment of 10 years. He also faces additional penalties for violating the conditions of his supervised release.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
New Britain Man Sentenced to Prison for Florida to Connecticut Gun Trafficking SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JULIAN JUDGE, 24, of New Britain, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 24 months of imprisonment, followed by three years of supervised release, for trafficking firearms that were stolen in Florida to Connecticut. Judge Meyer also ordered Judge to pay a $3,000 fine.
According to court documents and statements made in court, in late February 2021, Judge and Dominic Colon-Brown drove to Florida to obtain firearms and bring them back to Connecticut. In Florida, Judge and others obtained three handguns, which Judge knew were stolen or otherwise illegally obtained.
On March 8, 2021, law enforcement recovered a .40 caliber handgun and a high capacity magazine that Judge’s associate discarded during a foot chase in New Britain. A subsequent search of a New Britain apartment where Judge and his associate resided revealed three additional loaded firearms, two extended magazines, more than 100 rounds of ammunition and approximately 60 grams of cocaine. The serial number on one of the firearms found in the apartment matched the serial number of a firearm that had been stolen in Florida in February 2021.
During the investigation, Judge and his associates were captured in recorded conversations discussing the illegal acquisition and sale of firearms. Judge and Colon-Brown also posted photos of themselves on social media in possession of firearms.
Judge was arrested on May 27, 2021. He has been detained since September 23, 2021, when his bond was revoked after he was arrested for domestic violence offenses. On November 22, 2021, Judge pleaded guilty to one count of transporting stolen firearms across state lines
Colon-Brown also pleaded guilty and awaits sentencing.
This investigation has been conducted by the FBI’s Northern Connecticut Gang Task Force, New Britain Police Department, Farmington Police Department, West Hartford Police Department and Pasco County (Fla.) Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Moline Man Sentenced to Five Years in Prison for Possession of Ammunition as a FelonRead the Press Release
ROCK ISLAND, Ill. – A Moline, Illinois, man, Zachary Ryan Inman, 28, of the 5000 block of 4th Avenue, was sentenced on May 26, 2022, to five years’ imprisonment, to be followed by two years of supervised release, for possession of ammunition as a felon.
According to the evidence presented at sentencing, law enforcement agents responded to a domestic disturbance at a Moline apartment building. There, Inman was found hiding in a closet. Witnesses at the sentencing hearing testified that during the incident Inman battered his girlfriend, threatened her, and brandished a gun. A gun was not ultimately located but when booked at the Rock Island (Illinois) County Jail, agents found ammunition in Inman’s pocket.
At the sentencing hearing, Chief U.S. District Judge Sara L. Darrow stated that Inman’s actions should be considered in crafting his sentence. Chief Judge Darrow emphasized the danger that Inman’s actions posed to the community, his criminal history, and the need to protect the public.
Inman entered a plea of guilty to the offense in August 2021. The statutory penalties for felon in possession of a firearm are a maximum of 10 years’ imprisonment and a maximum three year term of supervised release.
The Moline Police Department investigated the case. Assistant U.S. Attorney Jennifer Mathew represented the government in the prosecution.
Mexican Man Sentenced to 2 Years in Prison for Illegally Reentering the United States after Having Been Previously RemovedRead the Press Release
Jackson, Miss. – A Mexican National was sentenced today to 24 months in prison for illegal reentry by a removed alien, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Rirearms and Explosives.
According to court documents, Marco Antonio Aviles-Aviles, 35,was arrested by officers of the Scott County Sheriff’s Office after a traffic stop on Interstate 20 in June, 2021. Aviles-Aviles could only produce a Mexican passport as a form of identification. Further investigation determined that Aviles-Aviles had been previously deported, on two prior occasions, after illegally crossing the border from Mexico into the United States. After a citizen of a foreign country has been removed from the United States it is unlawful for them to return to the United States without the permission of the United States Attorney General or the Secretary of the Department of Homeland Security.
Aviles-Aviles pled guilty on February 17, 2022, to illegal reentry after removal.
The Scott County Sheriff’s Office, the ATF, and Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Men Charged with Trafficking 16-Year-Old RunawayRead the Press Release
Two men who allegedly trafficked teenage girls have been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
LaDarius Alton Smith, 33, and Ulises Rene Garcia, 22, were indicted on Tuesday on two counts of sex trafficking a child. Both have been ordered detained pending trial.
According to court documents, the case began when the Texas Department of Family and Protective Services contacted the North Texas Trafficking Task Force to report that a 16-year-old runaway, identified in court documents as JD 1, had been spotted on megapersonals.eu, a known commercial sex database.
An undercover agent initiated conversation with the individual who posted the ad and arranged for a commercial-sex date at a hotel in Dallas on April 12.
Once there, the agent encountered a 17-year-old girl, identified as JD 2, who said she had locked herself out of the room. Mr. Garcia gave JD 2 a key to that room, and then she began conversing with the agent. Another individual, later determined to be Mr. Smith, spoke with the agent on the telephone and promised to bring JD 1 to the hotel soon.
A surveillance team then observed a dark blue BMW enter the hotel parking lot. Mr. Smith got out and escorted JD 1 and another 17-year-old, JD 3, to the hotel room.
Agents recovered the girls and transported them to the Dallas Children’s Advocacy Center for comprehensive care.
Meanwhile, law enforcement conducted a search of the hotel room, where they found a backpack containing JD1’s high school schedule.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Garcia and Mr. Smith are presumed innocent until proven guilty.
If convicted, they each face up to life in federal prison.
Homeland Security Investigation’s Dallas Field Division conducted the investigation. Assistant U.S. Attorney Joe Magliolo is prosecuting the case.
If you believe you or someone you know is a victim of human trafficking, call local law enforcement or the confidential National Human Trafficking Hotline, staffed 24/7, at 1-888-373-7888.
Manderson Man Indicted on Assault and Firearm ChargesRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Manderson, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Discharging, Brandishing, or Possessing a Firearm During and in Relation to a Crime of Violence, Possession of Ammunition by a Prohibited Person, and Assault on a Federal Officer.
Elijah West, age 24, was indicted on May 19, 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on May 25, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is life in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from West, a previously convicted felon prohibited from possessing firearms, discharging a firearm multiple times in December 2021 in Manderson. West also assaulted two individuals and an Oglala Sioux Tribe police officer during the same time period. The charges are merely an accusation and West is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
West was detained pending trial. A trial date has not been set.
Man Sentenced for Transnational Cybercrime EnterpriseRead the Press Release
A New York man was sentenced Wednesday to four years in prison for purchasing stolen or compromised credit cards and assisting other members of the Infraud Organization in monetizing their fraudulent activity. The Infraud Organization, a transnational cybercrime enterprise engaged in the mass acquisition and sale of fraud-related goods and services, including stolen identities, compromised credit card data, computer malware, and other contraband. According to court documents, the enterprise boasted over 10,000 members at its peak and operated for more than seven years under the slogan “In Fraud We Trust.” The Infraud Organization is responsible for the purchase and sale of over four million stolen credit and debit card numbers. This scheme cost victims more than $568 million dollars.
John Telusma, 37, aka Peterelliot, of Brooklyn, pleaded guilty in the District of Nevada to one count of racketeering conspiracy on Oct. 13, 2021. According to court documents, the defendant joined the Infraud Organization in August 2011, maintaining his membership for five and a half years. Telusma was among the most prolific and active members of the Infraud Organization, purchasing and fraudulently using compromised credit card numbers for his own personal gain.
Telusma is the 14th defendant to be held accountable for his role in the Infraud scheme. Telusma’s co-defendants who have been previously sentenced include:
- Infraud co-founder Sergey Medvedev, 34, aka Stells, of Russia, who was sentenced to 10 years in prison;
- Malware developer Valerian Chiochiu, 32, aka Onassis, of California, who was sentenced to 10 years in prison;
- VIP Member Arnaldo Sanchez Torteya, 35, aka Elroncoluna, of Mexico, who was sentenced to eight years in prison;
- VIP Member Edgar Rojas, 31 aka Guapo, of Venezuela, who was sentenced to eight years in prison;
- ATM skimmer Jose Gamboa, 35, aka Rafael101, of California, who was sentenced to eight years in prison; and
- VIP Member Pius Wilson, 35 aka FDIC, of New York, who was sentenced to seven years in prison.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Acting Special Agent in Charge Lucia Cabral-DeArmas of Homeland Security Investigations (HSI) Las Vegas made the announcement.
The HSI Las Vegas and the Henderson, Nevada, Police Department investigated the case. The Justice Department’s Office of International Affairs provided significant assistance in the investigation and prosecution of this case.
Deputy Chief Kelly Pearson and Trial Attorneys Chad McHenry and Alexander Gottfried of the Justice Department’s Organized Crime and Gang Section prosecuted the case.
Man Pleads Guilty to Misuse of a Social Security NumberRead the Press Release
NEW ORLEANS, LOUISIANA – CESAR LOPEZ-MATA (LOPEZ-MATA), age 27, a citizen of Guatemala, pled guilty on May 26, 2022 before U.S. District Court Judge Barry W. Ashe to a one count bill of information charging him with misuse of a Social Security Number, in violation of Title 18, United States Code, Section 408(a)(7)(B).
According to court documents, LOPEZ-MATA, a citizen of Guatemala, presented a false Social Security card when attending a pre-employment safety class at the Gulf Coast Safety Council in St. Rose, Louisiana. LOPEZ-MATA falsely represented that a social security number was assigned to him when in fact, the social security number had been assigned by the Commissioner of Social Security to an another individual.
LOPEZ-MATA faces a possible sentence of up to five (5) years imprisonment, a fine of up to $250,000.00, up to one (1) year of supervised release following any term of imprisonment and a $100 mandatory special assessment fee. Sentencing is set for August 18, 2022.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and the Office of the Inspector General, Social Security Administration in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
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Man Pleads Guilty to Federal Weapons ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Thursday, May 26, 2022, that DEAMONTE BROWN, age 21, resident of New Orleans, LA, pled guilty as charged on May 26, 2022 to a one-count indictment for being a felon in possession of a firearm.
Specifically, BROWN is charged with possessing two firearms on June 10, 2021, in violation of Title 18 United States Code, Sections 922(g)(1), 924(a)(2), and 2. BROWN faces a maximum sentence of 10 years of imprisonment, a fine of up to $250,000, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00. Sentencing is scheduled for August 18, 2022.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice's violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
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Luzerne County Woman Charged with Covid-19 Related FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Angela Castillo, age 38, of Freeland, PA, was charged yesterday in a criminal Information with wire fraud.
According to United States Attorney John C. Gurganus, the Information alleges that between June 2020 and September 2020, on behalf of other individuals and in exchange for payment, Castillo submitted to the United States Small Business Association (SBA) no fewer than forty Economic Injury Disaster Loan (EIDL) applications, all of which contained material misrepresentations. Castillo’s conduct resulted in the SBA paying out approximately $163,000.00 in COVID-19 relief funds to individuals, none of whom actually owned a qualifying small business, and who therefore were not entitled to receive such funds under the EIDL loan program.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Jeffery St John is prosecuting 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.
If convicted, the maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, 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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Lawrence Woman Sentenced in Cocaine Distribution Conspiracy that Used U.S. Mail ParcelsRead the Press Release
BOSTON – A Lawrence woman was sentenced yesterday in federal court in Boston for her role in a cocaine distribution conspiracy.
Michel Saredi-Munoz Moronta, a/k/a “Michel Saredi-Munoz Morta,” 22, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to time served (approximately 21 months in prison) and four years of supervised release. On Dec. 15, 2021, Munoz Moronta pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.
In or about August 2020, law enforcement identified several Priority Mail packages sent to addresses in Lawrence as suspected to contain illegal narcotics. Officers surveilling the addresses saw a woman, later identified as Munoz Moronta, get out of a car and collect the packages shortly after delivery. Munoz Moronta was subsequently arrested. The packages were found to contain approximately four kilograms of cocaine.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. The Lawrence Police Department provided valuable assistance in the investigation. Assistant U.S. Attorney Samuel R. Feldman of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Kankakee Man Sentenced to Seven Years in Prison for Attempted Enticement of a Minor and Related CrimeRead the Press Release
URBANA, Ill. – A Kankakee, Illinois, man, Jody Lagesse, 48, of the 100 block of North 7th Ave., was sentenced on May 24, 2022, to seven years’ imprisonment in the Bureau of Prisons, to be followed by a 10-year term of supervised release, for attempted enticement of a minor and use of interstate facilities to attempt to transmit information about a minor.
At the sentencing hearing in front of U.S. District Judge Michael M. Mihm, the government presented evidence that on February 14, 2020, Lagesse attempted to persuade, induce, and entice an individual whom he believed had not attained the age of 18 years, to engage in sexual activity. Lagesse also knowingly used means of interstate commerce, the internet and a cellular telephone, with the intent to entice, encourage, offer, and solicit that person to engage in sexual activity.
Lagesse was indicted in March 2020 and pleaded guilty in January 2022.
“Our office is committed to working with federal and local partners to combat the scourge of online predators who target some of the most vulnerable members of our community,” said U.S. Attorney Gregory K. Harris. “Along with these efforts, we urge parents and guardians to closely monitor their children’s internet usage. You are part of our first line of defense against those who seek to victimize children.”
“The internet can be a haven for those intent on exploiting the innocence of children online. That’s why the FBI prioritizes our efforts to identify, investigate and arrest predators, ensuring they are held accountable for their actions.” said FBI Springfield Field Office Special Agent in Charge David Nanz.
“The collaboration between my office and the Department of Justice is essential to identifying individuals who exploit minors, and ensuring those predators are held accountable,” Attorney General Kwame Raoul said. “I appreciate our ongoing partnership with the U.S. Attorney’s office and look forward to continuing to protect Illinois communities from individuals who prey upon children.”
The Federal Bureau of Investigation, Springfield Field Office investigated the case. Special Assistant U.S. Attorney Shannon O’Brien, Deputy Bureau Chief with the Illinois Attorney General’s Office, Internet Crimes Against Children Task, represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ 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.
Jamaican National Sentenced to 10 Months in Prison for Mail and Wire FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ACDANE CAMPBELL, age 25, a resident of Jamaica, was sentenced on May 26, 2022 by U.S. District Court Judge Susie Morgan to serve 10 months in prison after previously pleading guilty to a one count indictment for Conspiracy to Commit Mail and Wire Fraud.
According to the indictment, from in or around August 2016, CAMPBELL and others, conspired to obtain money unlawfully by falsely informing elderly victims that they had won a lottery, sweepstakes, or car. The unidentified co-conspirators telephoned the victims, promising them that they would receive their winnings if they first paid taxes and fees.
After being instructed by the unidentified co-conspirators that they needed to send payments to CAMPBELL, the victims would send their payments electronically through either a money services business, FedEx or the United States Postal Service. Working as a “money mule,” CAMPBELL either kept the money that he received from the victims or sent it to unknown persons in Jamaica.
In addition to incarceration, CAMPBELL was sentenced to 1 year of supervised release, ordered to pay a mandatory special assessment fee of $100, to perform 100 hours of community service, and to pay restitution in the amount of $107,747.97. He is also subject to deportation to Jamaica after incarceration.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
The case was investigated by the United States Postal Inspection Service and Homeland Security Investigations. The case is being prosecuted by Assistant U. S. Attorney Edward J. Rivera.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 26 was:
Darwyna Caylynn Bullshows, 25, of Pryor, on charges of assault on a federal officer. If convicted of the most serious crime, Bullshows faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Bullshows was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-44.
Alex Valladares, 27, address unknown, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth, possession of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm and possession of a stolen firearm. If convicted of the most serious crime, Valladares faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charge and a mandatory minimum five years to life, consecutive to any other term, a $250,000 fine and five years of supervised release on the crime of possessing a firearm in furtherance of drug trafficking. Valladares was detained pending further proceedings. The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-55.
Gregory Duane Hanson, 31, of Billings, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Hanson faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Hanson was detained pending further proceedings. The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-59.
Darwin Dalton Sutherland, 28, a transient, on charges of prohibited person in possession of a firearm and possession of a stolen firearm. If convicted of the most serious crime, Sutherland faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Sutherland was detained pending further proceedings. The FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-63.
Appearing on May 23 was:
James Robert Harrelson, 48, a transient, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and possession of firearm in furtherance of drug trafficking. If convicted of the most serious crime, Harrelson faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug charge and a mandatory minimum five years to life in prison, consecutive to any other term, a $250,000 fine and five years of supervised release on the firearm charge. Harrelson was detained pending further proceedings. The FBI’s Western Transnational Organized Crime Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 22-54.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on May 25 was:
Chantel Marie Azure, 33, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and distribution of fentanyl. If convicted of the most serious crime, Azure faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the controlled substances charges. Azure was detained pending further proceedings. The Drug Enforcement Administration and Havre Police Department investigated the case. PACER case reference. 22-21.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Honduran National and MS-13 Member Sentenced to Federal PrisonRead the Press Release
NASHVILLE – Franklin Pineda-Caceras, aka “Bomba,” 22, of Honduras, was sentenced yesterday to 90 months in federal prison for drug distribution and firearms crimes, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Pineda-Caceras, an MS-13 Gang member, was initially charged in July 2019 with immigration violations, drug trafficking, and firearms violations, after previously being deported from the U.S. He later pleaded guilty to illegal reentry of a previously deported alien; being an illegal alien in possession of ammunition; being an illegal alien in possession of a firearm; possession of a firearm with an obliterated serial number; and possession of marijuana and cocaine with the intent to distribute. Pineda-Caceras proceeded to trial on the charge of possession of a firearm in furtherance of a drug-trafficking crime and was found guilty by a federal jury on February 9, 2022.
According to records filed with the Court, Pineda-Caceras unlawfully entered the United States in January 2014 and was deported in June 2016. Immigration officials later learned that Pineda-Caceras had returned to the United States when they found him, in October 2017, in a residence in Nashville, with digital scales, 41 grams of cocaine, over 44 grams of marijuana, numerous handguns, an assault rifle, and an arsenal of ammunition. Pineda-Caceras was again deported in May 2018.
In January 2019, approximately seven months after his second deportation, Pineda-Caceras returned to the United States and committed a violent crime, when he kidnapped a student from a local area high school and beat the student after the student refused to join the MS-13 street gang. In July 2019, when agents attempted to arrest Pineda-Caceras for this crime, he fled from the police and drove his car through the front yard, where his girlfriend, son, and his girlfriend’s mother stood, nearly striking all three.
Approximately two months later, in September 2019, Pineda-Caceras was involved in a car accident and sustained injuries as a result. Items observed at the scene, and later seized during a search of his car, established that he was involved in drug trafficking. Specifically, when agents searched the car, they found digital scales, baggies, bags of cocaine packaged for resale, a revolver with an obliterated serial number, an AK-47 rifle, and approximately 200 rounds of ammunition. Agents also recovered numerous cellular telephones, which later revealed that Pineda-Caceras was selling drugs in the hours leading up to the crash.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; Homeland Security Investigations; the Drug Enforcement Administration; and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Ahmed Safeeullah and Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
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.
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Highlands Ranch Man Sentenced to Federal Prison for Using COVID Relief Funds for Plastic Surgery, Weight Loss and JewelryRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Daniel Stonebarger, age 50, of Highlands Ranch, was sentenced to 41 months in federal prison for fraudulently obtaining funds intended to help small businesses during the COVID-19 pandemic.
According to the plea agreement, between April 5, 2020 and June 10, 2020, the defendant submitted numerous fraudulent applications for Economic Injury Disaster Loans and Grants (EIDLs and EIDGs), and Paycheck Protection Program loans (PPP) through the Small Business Administration. The defendant used new and existing business names to apply for these loans, and falsified creation dates of businesses, numbers of employees, revenues, and costs. In total, the defendant fraudulently obtained $855,252.50 in EIDL, EIDG, and PPP funds. The defendant also applied for Colorado Pandemic Unemployment Assistance. As a result of this fraudulent claim he was paid $28,142 by the Colorado Department of Labor and Employment (CDLE). The defendant used these funds to pay for, among other things, plastic surgery for a relative, a weight loss program, bridal expenses, jewelry, a Peloton, travel, and resort expenses.
“This defendant took money that was supposed to be used to provide emergency financial assistance to small businesses and individuals suffering adverse economic effects caused by the COVID-19 pandemic. Prosecuting pandemic fraud is a priority of the Department of Justice and an ongoing focus for investigators here in Colorado,” said U.S. Attorney Cole Finegan.
“This defendant was a criminal opportunist who took advantage of what he saw as easy money through programs created to keep businesses afloat during the pandemic,” said FBI Denver Special Agent in Charge Michael Schneider. “This outcome is a reminder that the FBI aggressively pursues those who try to defraud the federal government.”
“We continue the pursuit of those who exploit taxpayer-funded relief programs for their own illicit gain,” said Marc DellaSala, Special Agent in Charge, U.S. Secret Service Denver Field Office. “Along with partners at the Federal Bureau of Investigation, our unified law enforcement community has taken unprecedented measures to identify, locate, and arrest those responsible for pandemic-related fraud. I want to thank the U.S. Attorney’s Office for its tireless support of these efforts.”
“We created the Colorado Unemployment Fraud Task Force to investigate and prosecute those who steal critical pandemic-related government funds for personal gain. I am thankful and proud of the collaboration between the task force and the U.S. Attorney’s office that enabled us to bring this defendant to justice for defrauding the government. When the public is cheated, we are all cheated and we’ll continue to hold fraudsters accountable,” said Colorado Attorney General Phil Weiser.
United States District Court Judge Raymond P. Moore sentenced the defendant on May 26, 2022 to 41 months in federal prison. In addition to his prison sentence, the defendant was ordered to serve three years of supervised release. He was also ordered to pay $794,462.08 in restitution to the SBA and $28,142 to the CDLE. The Court also issued a forfeiture money judgment in the amount of $822,794.50.
The Denver Division of the FBI, the U.S. Secret Service, and the Colorado Department of Labor and Employment conducted the investigation. Assistant United States Attorneys Martha A. Paluch, Sarah H. Weiss, and Tonya S. Andrews handled the prosecution of the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Case number: 21-cr-00392-RM
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Hartford Man Involved in Drug Trafficking Ring Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that TAHIR BRUFF, also known as “Gangster” and “G,” 46, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 65 months of imprisonment, followed by three years of supervised release, for distributing narcotics.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Gang Task Force began investigating Ricardo Reyes, also known as “Rick the Ruler,” a member of the Los Solidos street gang who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Ricardo Reyes. Court-authorized wiretaps confirmed that he was distributing narcotics to numerous customers, and identified individuals who supplied drugs to him, including Bruff, as well as associates who sold drugs on his behalf. Intercepted communications also revealed that Ricardo Reyes was acquiring and trafficking firearms.
Bruff, a member of Los Solidos and a close associate of Reyes, supplied cocaine and crack to Reyes for both his personal use and distribution. Bruff also sold narcotics to other customers in the area of Hungerford Street.
Bruff has been detained since his arrest on June 17, 2019.
On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Bruff, Reyes, and 13 associates with various narcotics trafficking and firearm possession offenses. Bruff pleaded guilty on March 29, 2022.
All of Bruff’s co-defendants pleaded guilty to related charges, and Bruff is the last to be sentenced.
On February 11, 2021, Reyes was sentenced to 18 years of imprisonment.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation.
This case was prosecuted by Assistant U.S. Attorney Brian P. Leaming through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Hot Springs Man Sentenced to 27 Months for Pandemic Funds FraudRead the Press Release
Hot Springs, Arkansas – David Clay Fowlkes, United States Attorney for the Western District of Arkansas, announced that on May 26, 2022, James Heritage, 39 of Hot Springs, Arkansas, was sentenced to 27 months in prison and ordered to pay $469,082.73 in restitution after pleading guilty to two counts relating to fraud committed against the United States Small Business Administration’s Paycheck Protection Program (PPP) and numerous state unemployment benefits administrators.
According to plea documents in the case, Heritage applied for and received a PPP loan for $183,937.32, using falsified employee and payroll data. In addition, Heritage applied for and received Pandemic Unemployment Assistance, a supplemental form of unemployment benefits, from thirty different states, by falsely representing to those states’ benefits administrators that he was eligible for the benefits.
Both the Paycheck Protection Program and Pandemic Unemployment Assistance program are parts of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law passed in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.
The case was investigated by the Department of Labor Office of the Investigator General, the Federal Bureau of Investigations, the United States Postal Inspection Service, and the Small Business Administration Office of the Inspector General. Assistant United States Attorney Hunter Bridges prosecuted the case for the United States.
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.
Grand Rapids Gang Member Sentenced to Nearly A Decade in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Mark Totten announced that yesterday U.S. District Judge Jane M. Beckering sentenced Steven Chavez Phillips-Hall, age 30, of Grand Rapids, Michigan, to 115 months in federal prison for possessing firearms as a convicted felon, and for his role in gang-related shootouts during the summer of 2021.
Phillips-Hall, also known as “Bemis Steve,” has long been known to law enforcement as an active member of the Bemis Street gang in Grand Rapids. On March 11, 2021, officers with the Grand Rapids Police Department executed a search warrant on Phillips-Hall’s apartment while investigating him for assault and battery. In his apartment, law enforcement found two pistols fitted with large-capacity magazines. Months later, on August 9, 2021, members of the U.S. Marshals task force attempted to arrest Phillips-Hall on a felony warrant for carrying a concealed weapon. Phillips-Hall ran, leading law enforcement on a foot chase through a residential building near downtown Grand Rapids until he was finally apprehended. Phillips-Hall had in his possession a loaded pistol that, according to ballistics testing and cellphone location records, he had used three days earlier in a gunfight outside a bar in southwest Grand Rapids, which resulted in gunshot wounds to multiple innocent bystanders. Phillips-Hall’s apparent motive for that shooting was to retaliate against a rival gang that had ambushed him several weeks earlier in yet another shootout.
In sentencing Phillips-Hall, Judge Beckering emphasized his history of violence and “demonstrated willingness to use firearms” against others. She observed that, despite Phillips-Hall’s long “pattern of disrespect for the law” and prior jail sentences, “nothing has deterred the defendant’s behavior.” Judge Beckering added, “We cannot have lawlessness in our community.”
“Phillips-Hall has demonstrated an unconscionable disregard for the value of human life, and this sentence reflects the gravity of his crimes,” said U.S. Attorney Mark Totten. “We will hold accountable those who use firearms to jeopardize innocent lives. My office is laser-focused on investigating and prosecuting the most violent offenders in West Michigan, and this sentence advances that important mission.”
“ATF is committed to the removal of violent repeat offenders who victimize and threaten the safety of our communities,” said ATF Detroit Special Agent in Charge Paul Vanderplow. “This sentence is indicative of our highly experienced Special Agents, utilizing unique information and intelligence programs to supplement our partnerships with local violent crime investigators and prosecutors which was critical to the success of this case.”
“This is an excellent example of the partnership between local and federal law enforcement working together to get violent criminals off our streets,” said Grand Rapids Police Chief Eric Winstrom. “I am proud of the dedication and hard work of our officers to make Grand Rapids a safer place.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Grand Rapids Police Department, with important additional assistance provided by the United States Marshals Service and the Michigan State Police. This case was prosecuted by Assistant U.S. Attorney Patrick Castle.
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Georgia Man Who Assaulted an Airport Security Agent Sentenced to Federal PrisonRead the Press Release
A man who was caught taking marijuana and over $37,000 in cash through the Eastern Iowa Airport security screening was sentenced today to two months in federal prison and fined $2,000.
Andre Burns, age 38, from Atlanta, Georgia, received the prison term after a February 1, 2022 guilty plea to interfering with airport security.
Information disclosed at sentencing showed that Burns was flying out of the Eastern Iowa Airport in Cedar Rapids, Iowa, on June 16, 2019. While he was going through the airport security checkpoint, Transportation Security Administration (TSA) agents discovered approximately 35 grams of marijuana and an envelope containing $37,723 in cash in Burns’ luggage. Burns grabbed some of the cash from the agents and then ran from the security checkpoint. As he was running, Burns struck a TSA agent in the stomach, causing a contusion and requiring the agent to go to the hospital. Burns then ran from the airport and into a cornfield across the street. Officers from the Cedar Rapids Police Department located and arrested him in the cornfield.
Burns was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Burns was sentenced to two months’ imprisonment and fined $2,000. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Burns was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation, the Cedar Rapids Police Department, and the Transportation Security Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-80.
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Gary Man Sentenced to 50 Months in PrisonRead the Press Release
HAMMOND- Courtney Lewis, 41 years old, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Lewis was sentenced to 50 months in prison followed by 2 years of supervised release.
According to documents in the case, on August 28, 2020, law enforcement conducted a traffic stop on a vehicle driven by Lewis. An officer observed a firearm between Lewis’ leg and tried to remove it but Lewis resisted, pulled the gun from the officer and sped away. While fleeing, Lewis threw the gun from the vehicle. Lewis’ criminal history revealed he had previously been convicted of multiple felony offenses, including robbery, cheating at a gambling game, and possessing a firearm as a felon, and as such, was prohibited from possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives/Indiana High Intensity Drug Trafficking Area Task Force with the assistance of the Gary Police Department. This case was prosecuted by Assistant United States Attorney Caitlin M. Padula.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Four Men Sentenced for Stealing over 30 Firearms from Gun Dealer in Maurice, LARead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that four men have been sentenced for their involvement in the theft of 32 firearms from a gun dealer in Maurice, Louisiana. United States District Judge Robert R. Summerhays sentenced the defendants as follows:
Damien Damon Briggs, 28, of Kaplan, Louisiana, was sentenced to 96 months in prison, followed by 3 years of supervised release.
Tawaski Tavon Lewis, 32, of Abbeville, Louisiana, was sentenced to 120 months in prison, followed by 2 years of supervised release.
Travon Travel Citizen, 18, of Abbeville, Louisiana, was sentenced to 21 months in prison, followed by 3 years of supervised release.
The fourth defendant in this case, Dante Citizen, 23, of Abbeville, Louisiana, was sentenced on March 2, 2022 to 14 months in prison, followed by 1 year of supervised release.
Each of the defendants pleaded guilty to theft of firearms from a Federal Firearms Licensee. All four of the men admitted to their involvement in stealing 32 firearms from the premises of Swampland Trading Co., a licensed firearms dealer located in Maurice, Louisiana, on September 7, 2021. All 32 firearms were in the licensee’s business inventory.
“This is a great example of cooperation between federal and state law enforcement agencies,” stated U.S. Attorney Brandon B. Brown. “Because of their synergy and cohesion, all 32 firearms were recovered the same night they were stolen, and Swampland Trading Co. was able to properly sell the firearms to customers who had a legal right to purchase them.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Vermilion Parish Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney John W. Nickel.
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. PSN is 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Former Marine Pleads Guilty to Three Counts of CyberstalkingRead the Press Release
LOS ANGELES – A South Bay man pleaded guilty today to cyberstalking multiple young women in a “sextortion” campaign he waged while he was an active-duty member of the United States Marine Corps.
Johao Miguel Chavarri, a.k.a. “Michael Frito,” 25, of Torrance, pleaded guilty to three counts of cyberstalking.
According to his plea agreement, from May 2019 to February 2021, Chavarri stalked and sent anonymous threatening communications to numerous victims, including three victims discussed in court documents.
Chavarri, often using the name “Frito,” contacted victims on social media platforms, including Instagram, Snapchat, and Twitter, complimented their appearance and their publicly posted photos, and suggested a relationship in which he would pay the victim to send him photos or videos.
Some of the victims initially agreed to Chavarri’s requests and sent him nude, sexually explicit, or compromising photos. When victims either refused Chavarri’s initial request for photos, refused to send him additional photos or videos, or otherwise refused to continue to communicate with him online, Chavarri began to harass, threaten, and extort the victims using numerous online accounts.
In most cases, he threatened to publish sexual photos and videos of the victims online or on well-known pornography websites or to distribute the sexual photos or videos to the victims’ boyfriends, friends, families, or employers — people he often specifically identified by name. Chavarri threatened his victims and their friends and family that he would ruin their lives.
United States District Judge Maame Ewusi-Mensah Frimpong scheduled a September 15 sentencing hearing, at which time Chavarri will face a statutory maximum sentence of five years in federal prison for each count.
The FBI investigated this matter with assistance from the Naval Criminal Investigative Service.
Assistant United States Attorney Lauren Restrepo of the Cyber and Intellectual Property Crime Section and Justice Department Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case.
Anyone who believes they are a victim in this case or is aware of a victim in this case is urged to contact the FBI’s Los Angeles Field Office, which can be reached 24 hours a day at (310) 477-6565.
Former Marine Pleads Guilty to Cyberstalking Young Women in Sextortion CampaignRead the Press Release
A California man pleaded guilty today to cyberstalking multiple young women in California in a “sextortion” campaign he waged while he was an active-duty member of the U.S. Marine Corps.
According to court documents, from 2019 through 2021, Johao Miguel Chavarri, aka Michael Frito, 25, of Torrance, stalked and sent anonymous threatening communications to numerous victims, including the three victims discussed in court documents.
Chavarri, often using the name “Frito,” contacted victims on social media platforms, including Instagram, Snapchat, and Twitter, complimented their appearance and/or their publicly posted photos, and suggested a relationship in which he would pay the victim to send him photos or videos. Some of the victims initially agreed to Chavarri’s requests and sent him nude, sexually explicit, or compromising photos. When victims either refused Chavarri’s initial request for photos, refused to send him additional photos or videos, or otherwise refused to continue to communicate with him online, Chavarri began to harass, threaten, and extort the victims using numerous online accounts. In most cases, he threatened to publish sexual photos and videos of the victims online or on well-known pornography websites and/or to distribute the sexual photos or videos to the victims’ boyfriends, friends, families, or employers — people he often specifically identified by name. Chavarri threatened his victims and their friends and family that he would ruin their lives.
Chavarri pleaded guilty to three counts of cyberstalking. He is scheduled to be sentenced on Sept. 15 and faces up to five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Tracy L. Wilkison for the Central District of California; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Supervisory Special Agent Adam Smith of the FBI’s Los Angeles Field Office made the announcement.
The FBI’s Los Angeles Field Office, Long Beach Resident Agency, investigated the case, with assistance from the Naval Criminal Investigative Service.
Assistant U.S. Attorney Lauren Restrepo for the Central District of California and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Anyone who believes they are a victim in this case or is aware of a victim in this case is urged to contact the FBI’s Los Angeles Field Office, which can be reached 24 hours a day at (310) 477-6565.
Former CEO of defunct medical testing laboratory sentenced to prison for medical kickback schemeRead the Press Release
Seattle – The former Chief Executive Officer of Northwest Physicians Laboratory (NWPL) was sentenced today in U.S. District Court in Seattle to two years in prison and $7.6 million in restitution for conspiracy to solicit kickbacks, announced U.S. Attorney Nick Brown. Jae Lee, 51, of Bellevue, Washington, served as the CEO of Northwest Physicians Laboratory (NWPL). Between 2013 and 2015, Lee conspired with others to get kickbacks from medical testing labs in exchange for government testing business referred to the labs. In pronouncing sentence, U.S. District Judge John C. Coughenour noted, the scheme was large and clearly illegal.
“Mr. Lee knowingly set up a scheme to profit by referring government health care business to other labs – even more disturbing he tried to play one lab off against another to increase his ill-gotten gain,” said U.S. Attorney Nick Brown. “Such conduct increases healthcare costs for all of us. This case should be a warning to others who may consider such schemes.”
The activities of Bellevue-based Northwest Physicians Laboratory (NWPL) have been the subject of extensive civil and criminal litigation. CEO Lee helped NWPL obtain more than $3.7 million in kickback payments by steering urine drug test specimens to two labs that could bill the government for testing. This resulted in government payments to those two labs of more than $6.5 million.
According to records filed in the case between January 2013 and July 2015, two labs, that were not physician owned, made payments to NWPL in exchange for referrals of Medicare and TRICARE program business, in violation of the Anti-Kickback Statute. Paying remuneration to medical providers or provider-owned laboratories in exchange for referrals encourages providers to order medically unnecessary services. The Anti-Kickback Statute functions, in part, to discourage such behavior. NWPL was physician-owned, and for that reason could not test urine samples for patients covered by government health programs such as Medicare, Medicaid, and TRICARE. In order to conceal the payment of the kickbacks, Lee and other co-conspirators involved described the fees as being for marketing services; however, no marketing services were performed.
The kickback payments to NWPL were commingled with other company revenue. Over the course of the scheme, Lee received more than $800,000 in distributions from NWPL’s commingled funds. As prosecutors wrote in their sentencing memo, “The crime was based purely on Mr. Lee and the others’ greed. The NWPL business model was profitable. It could afford to pay doctors thousands of dollars a month in dividends. It could afford to pay healthy distributions to its owners. This did not satisfy Mr. Lee. He was determined to maximize profits even if it meant breaking the law.”
The company, NWPL, pleaded guilty in February 2021 and was sentenced to pay $8,114,417 in restitution joint and several with the other criminal defendants. NWPL has dissolved. To date, the labs and individuals involved in this investigation have agreed to pay more than $14 million to settle related civil allegations.
"Mr. Lee’s sentencing culminates his illicit, greed-driven scheme to defraud federal healthcare programs, including the Department of Defense's TRICARE program," said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. "Fraudulent healthcare billings inflate costs, erode public confidence, and in the case of the Department of Defense, ultimately degrade American warfighter readiness and undermine the missions of our military services.”
“Individuals who participate in kickback schemes do so at the risk of undermining the integrity of federal health care programs,” said Special Agent in Charge Steven J. Ryan with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with law enforcement partners to bring to justice those who steal from these programs for personal gain.”
“Mr. Lee was one of the ringleaders of a conspiracy that stole more money per month than some honest Americans make in a year” said Donald M. Voiret, Special Agent in Charge of the Seattle FBI Field Office. “By stealing from these benefits programs, he wasn’t only stealing from taxpayers, but taking funding from people who legitimately relied on these programs for their health and well-being.”
In addition to Lee, two other defendants await sentencing. Kevin Puls, 57, the former Executive Director of NWPL, is scheduled for sentencing September 6, 2022. Richard Reid, 53, was convicted following a six-day jury trial. He is scheduled for sentencing on October 11, 2022.
The case was investigated by the FBI, Health and Human Services Office of Inspector General (HHS-OIG), and the Defense Criminal Investigative Service (DCIS).
The case is being prosecuted by Assistant United States Attorneys Brian Werner and Michael Dion.
Florida Man Indicted for Wire FraudRead the Press Release
United States Attorney Alison J. Ramsdell announced that a North Miami Beach, Florida, man has been indicted by a federal grand jury for Wire Fraud.
Tyler Vandenhoek, age 34, was indicted on February 8, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 26, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on or about January 14, 2020, and continuing through on or about February 18, 2020, in South Dakota and elsewhere, Vandenhoek devised a scheme and artifice to defraud by forging multiple stolen checks, and that he caused interstate wire communications to be transmitted for the purpose of executing the scheme.
The charges are merely accusations and Vandenhoek is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Vandenhoek was released on bond pending trial. A trial date has not been set.
Father and Son Sentenced for Conspiracy to Defraud Their Former Employer and Divert Medical Equipment for Their Own UseRead the Press Release
OAKLAND – Today, the Hon. Jon S. Tigar, U.S. District Judge, sentenced Anthony Giovanni Montanelli to a year and a day in prison and ordered him to pay $1.2 million in restitution within 90 days for his role in a conspiracy to commit mail fraud in connection with a scheme to embezzle medical equipment owned by Kaiser Foundation Hospitals and Health Plan, Inc. (Kaiser). Judge Tigar ordered Montanelli’s father and charged co-conspirator, Steven John Montanelli, to serve a five year term of probation for his role in the scheme and ordered him jointly responsible to pay $1.2 million in restitution to Kaiser. The announcement was made by United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Sean Ragan.
Anthony Montanelli, 34, and his father Steven Montanelli, 63, both of San Ramon, pleaded guilty to the charges on January 14, 2022. According to the plea agreements, the defendants worked as biomedical engineers at Kaiser, responsible for repairing and servicing Kaiser ultrasound systems used at its medical facilities located throughout the Bay Area. The defendants used their positions at Kaiser to order new ultrasound parts that were supposed to be used to repair, replace, and/or maintain Kaiser’s medical equipment, but instead were diverted to their own business, Pacific Coast Imaging (PCI). The defendants then sold the diverted parts through PCI for their own profit. The father and son also admitted operating their scheme and business, which they did not disclose to Kaiser, while being paid by Kaiser to service Kaiser-owned equipment.
The defendants admitted that, beginning February 2010 and continuing through about April of 2018, they worked together to defraud Kaiser. Specifically, the defendants rented storage units in which they stockpiled new, used, and decommissioned Kaiser-owned ultrasound systems and parts. Some of the Kaiser inventory they ordered through Kaiser became PCI inventory, which they sold and leased to PCI customers. The defendants acknowledged that for years they caused Kaiser’s procurement specialists to process, order, and have mailed to them an unknown number of ultrasound parts which they diverted to PCI. Further, the defendants admitted that they recorded parts and/or systems as decommissioned when, in fact, the equipment was diverted to PCI. In sum, both defendants admitted that they diverted Kaiser-owned equipment to PCI, operated PCI while employed by Kaiser, and used work hours paid for by Kaiser to operate PCI. The defendants admitted that the value of the loss to Kaiser resulting from the conspiracy exceeded $1,500,000. Anthony Montanelli had previously tendered a check to Kaiser to pay restitution in the amount of $449,955, bringing the total amount paid and owed in restitution to $1,649,955.
A federal grand jury issued a superseding indictment on June 10, 2021, charging each defendant with one count of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349. Both defendants pleaded guilty to the count.
In addition to the prison term and probation, Judge Tigar also ordered each defendant to pay a $150,000 fine. Anthony Montanelli was ordered to surrender on or before July 1, 2022, to begin serving his prison term.
Assistant U.S. Attorneys Thomas Green and Garth Hire are prosecuting the case, with the assistance of Kay Konopaske and Noble Hughes. The prosecution was the result of an investigation by the Federal Bureau of Investigation.
FFL Sentenced for Selling Guns to Unlicensed DealersRead the Press Release
A federally licensed firearms dealer was sentenced today to four years in federal prison for selling guns to unlicensed dealers for resale, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Jonathan Ludlow, 48, pleaded guilty in January to conspiracy to deal in firearms without a license and make false statements on ATF forms as well as possession of an unregistered silencer. He was sentenced Friday by U.S. District Judge Reed C. O’Connor in Fort Worth.
“Federal firearm laws are designed to keep guns out the wrong hands. Responsible licensed gun dealers are often the first line of defense in this endeavor. Licensed dealers who know their buyers intend to immediately resell their guns – quite possibly to individuals who cannot pass a background check – must not complete that sale. Doing so could have deadly serious consequences,” said U.S. Attorney Chad Meacham. “ATF and the U.S. Attorney’s Office will not allow people like Mr. Ludlow to flout laws that save lives.”
“Today is a good day for ATF and all of its partners with this sentencing. Mr. Ludlow, a federal firearms licensee, knew the laws and intentionally skirted them. By doing so, he has put hundreds of guns on the streets of the DFW metroplex and beyond. Because of his recklessness, we will continue to relive his crimes for years as more of his crime guns are recovered,” said ATF Dallas Special Agent in Charge Jeffrey C. Boshek II. “ATF remains staunch in its tireless pursuit of licensed firearms dealers that commit criminal acts.”
In plea papers, Mr. Ludlow, a federally licensed firearms dealer (FFL), admitted he regularly sold large quantities of identical firearms – including numerous AR-15 style pistols – to unlicensed associates, knowing full well that they intended to immediately engage in the business of reselling the guns for profit. The transactions were conducted out of Mr. Ludlow’s vehicle in various locations across the DFW Metroplex, and were typically completed in cash.
Two such associates, Romello Harris and Christopher Meza, pleaded guilty to conspiring with Mr. Ludlow to deal firearms without licenses. (Mr. Harris was sentenced earlier this month to 37 months in federal prison; Mr. Meza is awaiting sentencing.)
In order to conceal their crimes, Mr. Harris and Mr. Meza lied on ATF form 4473, indicating that they were the “actual transferees” of the firearms when they were not. On those same forms, Mr. Ludlow often lied about the date and location of the transaction, the type of firearms sold, and details regarding compliance with the NICS background check.
Under federal law, FFLs are prohibited from selling to straw purchasers or unlicensed dealers who they know are “engaged in the business of selling firearms,” defined as repeatedly devoting time and attention to purchasing and reselling guns for pecuniary gain. Background checks are not necessarily required for in-state, private transfers, but those engaged in the business of selling firearms must be federally licensed and run background checks on their buyers.
In July 2021, ATF executed a federal search warrant on Mr. Ludlow’s residence in Aledo, Texas, where agents seized more than 100 firearms, including 17 AR-15 style firearms, 12 Glock pistols, and approximately 10 unregistered silencers, all of which were later forfeited. At that time, Mr. Ludlow surrendered his federal firearms license.
At Friday’s sentencing hearing, prosecutors said that traces linked Mr. Ludlow to numerous guns recovered from crime scenes across the state of Texas, including multiple homicides. Others guns that originated with Mr. Ludlow were found in the hands of criminals, and still more were recovered in foreign countries.
In addition to the conspiracy, Mr. Ludlow admitted to possession of an unregistered silencer roughly 6 inches long and 1 3/8 inches in diameter.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Office conducted the investigation. Assistant U.S. Attorney Levi Thomas is prosecuting all three cases.
Elyria Man Charged with Intent to Traffic Fentanyl and Illegal Possession of a FirearmRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a three-count indictment charging Jason Delaney, 39, of Elyria, Ohio, with possession with intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.
According to court documents, on March 24, 2022, law enforcement authorities arrested the defendant and executed a search warrant at his residence and for his vehicle. These search warrants came after an investigation into the defendant and his alleged drug trafficking activities. During the search, it is alleged that authorities obtained packages later confirmed to contain over 120 grams of fentanyl, a 9mm firearm, large amounts of U.S. currency and other drug trafficking paraphernalia.
The defendant is prohibited from possessing a firearm due to previous convictions of drug trafficking and robbery in the Lorain County Court of Common Pleas.
This case is part of Operation Synthetic Opioid Surge (S.O.S.)., a joint law enforcement initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers in Lorain County.
This investigation was conducted by the Elyria Police Department and the FBI, with the assistance of the Lorain Police Department and the Ohio Adult Parole Authority. This case is being prosecuted by Assistant U.S. Attorney Robert J. Kolansky.
Doctor Selling COVID-19 “Cure” Sentenced to PrisonRead the Press Release
SAN DIEGO – Jennings Ryan Staley, a physician who attempted to profit from the pandemic by marketing what he described as a “miracle cure” for COVID-19, was sentenced today to 30 days of custody and one year of home confinement for trying to smuggle hydroxychloroquine into the United States to sell in his coronavirus “treatment kits.”
Last year, Staley pleaded guilty to one count of importation contrary to law, admitting that he worked with a Chinese supplier to try to smuggle into the United States a barrel that he believed contained over 26 pounds of hydroxychloroquine powder by mislabeling it as “yam extract.” According to court documents, Staley also suggested this mislabeling technique to another supplier who declined, telling Staley, “sorry, we must do it legally.”
Staley admitted that he intended to sell the hydroxychloroquine powder in capsules as part of his business venture selling COVID-19 “treatment kits” in March and April 2020, at the beginning of the global pandemic. According to sentencing documents, Staley also solicited investors for his scheme, promising one that he could “triple your money in 90 days.”
In his plea agreement, Staley admitted to writing a hydroxychloroquine prescription for one of his employees, misusing the employee’s name and personal identifying information. To fill the prescription for the increasingly scarce drug, Staley proceeded to answer pharmacists’ questions as though he were the employee, all without the employee’s knowledge or consent.
Staley marketed and sold his COVID-19 “treatment kits” to customers of his Skinny Beach Med Spas in and around San Diego. Court documents relate that law enforcement began investigating Staley after receiving several tips from concerned citizens sparked by his marketing campaign. According to admissions in his plea agreement, Staley described his products—which included hydroxychloroquine—as a “one hundred percent” cure, a “magic bullet,” an “amazing weapon,” and “almost too good to be true” in conversations with an undercover FBI agent posing as a potential customer, and Staley stated that the products would provide at least six weeks of immunity. Staley acknowledged that these statements were material to the potential customer, and that as a doctor he abused a position of public trust and used a special skill in carrying out his scheme.
An undercover agent purchased six of Staley’s “treatment kits” for $4,000. Court documents explain that during a recorded phone call with the undercover agent, Staley not only made the false statements about the efficacy of his “treatment kits;” he also bragged that, “I got the last tank of . . . hydroxychloroquine, smuggled out of China, Sunday night at 1:00 a.m. in the morning . . . the broker . . . smuggled it out, so to speak, otherwise tricked Customs by saying it was sweet potato extract.” In a later phone call with the undercover agent, Staley spontaneously offered to throw in doses of generic Viagra and Xanax, which is a federally controlled substance. At no point did Staley ask any medical questions about the undercover agent’s purported family members, including the agent’s three supposed minor children.
Staley also admitted that he willfully impeded and sought to obstruct the federal investigation into his conduct by lying to federal agents. Specifically, when interviewed by law enforcement, Staley falsely denied ever claiming that his “treatment kits” were a “one hundred percent effective cure,” adding “that would be foolish.” Staley also falsely claimed that his medical practice would “absolutely” get all relevant information about each family member when sending out medications for a family treatment pack, when just a week earlier, he had dispensed a “family pack” of hydroxychloroquine, chloroquine, generic Viagra, Xanax, and azithromycin to the undercover agent without collecting any medical information from the agent or the agent’s five supposed family members.
U.S. District Judge Gonzalo P. Curiel also ordered Staley to pay a $10,000 fine and ordered forfeiture of the $4,000 paid by the undercover agent, as well as more than 4,500 tablets of various pharmaceutical drugs, multiple bags of empty pill capsules, and a manual capsule-filling machine.
“At the height of the pandemic, before vaccines were available, this doctor sought to profit from patients’ fears,” said U.S. Attorney Randy Grossman. “He abused his position of trust and undermined the integrity of the entire medical profession. We are committed to enforcing the laws of the United States and protecting patients, including prosecuting doctors who choose to commit crimes.” Grossman commended the prosecution team and federal agents from FBI and FDA-OCI, who worked hard pursuing justice in this case. He also commended U.S. Customs and Border Protection for its assistance with the investigation.
“The defendant used a global pandemic to prey on the public’s fear by offering a 'cure' for COVID-19, and then lied to FBI agents about it,” said FBI Special Agent in Charge Stacey Moy. “I want to thank our federal partners at the U.S. Food and Drug Administration – Office of Criminal Investigations, U.S. Customs and Border Protection, and the United States Attorney’s Office for their collective efforts in bringing this defendant to justice.”
“The FDA continues to work with its law enforcement partners to protect the public health by identifying, investigating and bringing to justice those who attempt to profit from the pandemic by offering and distributing COVID-19 treatments with unproven ‘miracle cure’ claims to American consumers,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office.
On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts.
If you think you are a victim of COVID-19 fraud, immediately report it the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800; the public is also urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at disaster@leo.gov.
DEFENDANT Case Number 20-CR-1227-GPC
Jennings Ryan Staley, M.D. Age: 44 San Diego, CA
SUMMARY OF CHARGES
Importation Contrary to Law, in violation of Title 18, United States Code, Section 545
Maximum Penalty: Twenty years in prison; fine; special assessment
AGENCY
Federal Bureau of Investigation
U.S. Food and Drug Administration, Office of Criminal Investigations
U.S. Customs and Border Protection