title: Ontario County Man Pleads Guilty To Child Pornography Charges

body_text: ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Eric Passalacqua, 37, of Phelps, NY, pleaded guilty to receipt and distribution of child pornography before U.S. District Judge Frank P. Geraci. The charges carry a minimum penalty of five years in prison, a maximum penalty of 40 years, and a $250,000 fine. Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that on January 20, 2023, the FBI in Rochester received information from the FBI in Anchorage Alaska, that an individual located in Phelps, NY, may have been responsible for exchanging child pornography with an individual in Alaska. Subsequent investigation determined that individual was Passalacqua. On January 24, 2023, a search warrant was executed at Passalacqua’s Phelps residence. A forensic examination of his phone recovered over 600 images of child pornography, including images that Passalacqua produced depicting a minor victim. Passalacqua also admitted to producing images of another minor victim. The conviction is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia and the Anchorage Office of the FBI, under the direction of Special Agent-in-Charge Antony A. Jung. Sentencing is scheduled for August 24, 2023, before Judge Geraci. # # # #


title: Maryland Man Indicted for Violent Carjacking and Kidnapping in Seaford

component: Federal Bureau of Investigation (FBI)

body_text: WILMINGTON, Del. – A federal grand jury returned an indictment yesterday charging Ralph Harmon, a resident of Salisbury, Maryland, with committing a violent carjacking and kidnapping in Seaford. According to the indictment, on January 13, 2023, defendant Ralph Harmon, 24, carjacked and kidnapped a person referred to in the Indictment as “Victim.” The Indictment alleges that the carjacking resulted in serious bodily injury to the Victim. Harmon is charged with carjacking and interstate kidnapping. If convicted, he faces a maximum penalty of life imprisonment for the kidnapping and 25 years in prison for the carjacking. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. David C. Weiss, U.S. Attorney for the District of Delaware, and Special Agent in Charge for FBI-Baltimore Thomas Sobocinski, made the announcement. Maryland State Police, Salisbury Police Department, and Seaford Police Department provided assistance in the investigation of this case. Assistant U.S. Attorneys Jennifer K. Welsh and Samuel S. Frey are prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER . An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court


title: Fort Wayne Man Sentenced to 120 Months in Prison

component: Drug Enforcement Administration (DEA)

body_text: FORT WAYNE –Shaine Shepherd, 28 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after his plea of guilty to distributing 50 grams or more of methamphetamine, announced United States Attorney Clifford D. Johnson. Shepherd was sentenced to 120 months in prison to be followed by 3 years of supervised release. This case was investigated by the Drug Enforcement Administration with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller. ###


title: Rock Island Man Sentenced to 84 Months in Prison for Felon in Possession of a Firearm and Ammunition

component: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)

body_text: ROCK ISLAND, IL – Anthony Tony Gay, 49, of the 1200 block of 14 th Street, Rock Island, was sentenced on May 24, 2023, to 84 months in the Bureau of Prisons, to be followed by a three-year term of supervised release, for Felon in Possession of a Firearm and Felon in Possession of Ammunition. Gay was found guilty of the charges following a three-day jury trial in May 2022. At the trial, the government presented evidence that on May 31, 2020, a vehicle in which Gay was a passenger, was stopped by Rock Island police officers for a traffic violation. Gay fled from the traffic stop but fell as he was being chased by police. He was arrested a short distance away. When officers retraced Gay’s flight path, they found a loaded Glock model 36 .45 pistol in the location where he fell. Approximately two weeks later, on June 14, 2020, Rock Island police were called to a Rock Island motel where Gay had been renting a room prior to his arrest. As motel personnel were cleaning Gay’s room and removing his belongings, one of them located a bag of .45 ammunition containing the same type of rounds that had been loaded in the Glock pistol. During the trial, the government also established that Gay had an extensive number of prior felony convictions, including robbery, aggravated battery, and possession of a weapon in prison. At the sentencing hearing before U.S. District Judge James Shadid, the government presented evidence that Gay’s prior robbery conviction involved him and several other gang members beating a 15-year-old boy who had been riding his bicycle, and that Gay had committed that crime only one day after being released from prison. The government further presented evidence of Gay’s extensive history of misconduct while in prison, which included several aggravated batteries of correctional officers. In pronouncing sentence, Judge Shadid remarked that the nature and circumstances of the offense were serious, in that Gay, a felon on parole at the time of the offense, possessed a loaded firearm and fled from police. That, combined with Gay’s lengthy criminal record and violent history, including the act of violence against a 15-year-old, indicated to the judge that Gay was dangerous and that the 84-month prison sentence was necessary to protect the public. The statutory penalties for the charges are up to ten years of imprisonment for each Count, a $250,000 fine, and up to a three-year term of supervised release. The investigation was conducted by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys John Mehochko and Jennifer Mathew and former Assistant U.S. Attorney Alyssa Raya represented the United States in the prosecution. This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.


title: Toulon Man Sentenced to 35 Years in Prison for Production, Distribution and Possession of Child Pornography

component: Criminal - Child Exploitation and Obscenity Section

body_text: PEORIA, Ill. – Jason R. Musselman, 35, of the 7400 block of Modena Road, in Toulon, Illinois, was sentenced on May 24, 2023, to 300 months in the Bureau of Prisons for producing child pornography, to be served consecutive to a 120-month prison sentence for distributing and possessing child pornography. In total, Musselman was sentenced to 35 years imprisonment, to be followed by a lifetime term of supervised release. He must also register as a sex offender once he is released. Musselman was also ordered to pay more than $60,000 in restitution to his victims. Four additional counts of production of child pornography were dismissed pursuant to Musselman’s guilty plea. At the sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that agents with the Illinois State Police and Homeland Security Investigations executed a search warrant on Musselman, his residence, and his electronic devices on January 19, 2022 as part of an ongoing child pornography investigation. The government presented evidence that Musselman had produced numerous images of child pornography in his residence between approximately 2010 and 2013 by secretly recording videos of minors using a tanning bed in his home and then using the videos to create images that displayed the minors’ genitals in a lascivious manner. Musselman also distributed other images of child pornography on December 21, 2021, via the “Kik” internet messaging platform, including images of the sexual exploitation of prepubescent children. In total, Musselman possessed more than 600 images of child pornography. Some of Musselman’s victims provided victim impact statements at the sentencing hearing. Judge Shadid praised their courage for appearing in court to present statements in Musselman’s presence and noted that Musselman’s crimes affected not only his victims, but also their families and communities. Musselman was originally charged in Stark County, Illinois in January 2022 with nine separate counts relating to child pornography. The Stark County case was dismissed after Musselman was charged in federal court by a criminal complaint in March 2022. He entered into a plea agreement in November 2022. The statutory penalties for sexual exploitation of a child (production of child pornography) are 15 to 30 years imprisonment. The penalties for distribution of child pornography are 5 to 20 years imprisonment, and possession of child pornography carries a sentence of not more than 10 years imprisonment. Each of the charges carries a supervised release term of at least 5 years following release from incarceration and a possible fine of up to $250,000. The Department of Homeland Security, Homeland Security Investigations, Immigration and Customs Enforcement, and the Illinois State Police conducted the investigation with the assistance of the Washington Police Department and Stark County Sheriff’s Office. Assistant U.S. Attorney Sarah Holst Schryer represented the government in the prosecution. The case against Musselman 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 .


title: U.S. Attorney Kavanaugh Pledges to Prosecute All Prohibited Possessors of Firearms Linked to NIBIN Database

component: USAO - Virginia, Western

body_text: ROANOKE, Va. – United States Attorney Christopher R. Kavanaugh announced today an initiative to prosecute all prohibited persons who possess a firearm that has been previously used in a crime and logged in the federal National Integrated Ballistic Information Network (NIBIN) database. NIBIN, maintained by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, is the only national network that allows for the capture and comparison of ballistic evidence from crime scenes across the country. Law enforcement officials then use the potential matches or “leads” that NIBIN generates to identify links between shootings and other firearms-related cases in different jurisdictions. In today’s announcement, U.S. Attorney Kavanaugh pledged to prosecute all prohibited persons, including individuals convicted of domestic violence or a felony, who possess a firearm that – after being run through the NIBIN database – comes back as having been associated with another crime, either in the Western District of Virginia or elsewhere. “Today’s commitment to prosecute individuals possessing firearms used in previous crimes is the third component in my Office’s violent crime reduction strategy,” United States Attorney Kavanaugh said today. “This multi-prong approach – when joined with community engagement and prevention – provides genuine opportunities for solving violent crimes in our communities, as well as preventing them in the first place.” In 2022, U.S. Attorney Kavanaugh announced the first component of his violent crime reduction strategy when he pledged that the United States Attorney’s Office would prosecute any case referred to his office where a firearm was discharged in connection to a federal offense. Earlier this year, his Office enacted the second component of their strategy: prioritizing the prosecution of individuals involved in the trafficking and straw-purchasing of firearms. Since the implementation of this violent crime reduction strategy, federal prosecutions of violent crimes in the Western District of Virginia are projecting a 63% increase over last year, while prosecutions for firearms offenses are projecting an increase of 193%.


title: Alex Murdaugh Indicted on Federal Conspiracy, Wire Fraud, Bank Fraud, and Money Laundering Charges

component: USAO - South Carolina

body_text: CHARLESTON, SOUTH CAROLINA — A federal grand jury has returned a 22-count indictment against Richard Alexander “Alex” Murdaugh, 54, of Hampton, for conspiracy to commit wire fraud and bank fraud; bank fraud; wire fraud; and money laundering. “Trust in our legal system begins with trust in its lawyers,” said U.S. Attorney Adair F. Boroughs. “South Carolinians turn to lawyers when they are at their most vulnerable, and in our state, those who abuse the public’s trust and enrich themselves by fraud, theft, and self-dealing will be prosecuted to the fullest extent of the law. We are grateful to the FBI for their tireless work on this case and to the South Carolina Attorney General’s Office and the South Carolina Law Enforcement Division for their work to hold Alex Murdaugh, and those who enabled him, accountable in our state system. We remain committed to doing our part to further that effort in the federal system.” Murdaugh was a personal injury attorney at a law firm in Hampton, South Carolina. The indictment alleges that Murdaugh engaged in three different schemes to obtain money and property from his personal injury clients. In one scheme, the indictment alleges that from at least September 2005 until at least September 2021, Murdaugh devised a scheme to defraud and to obtain money by means of false pretenses. The indictment alleges that, as part of the scheme, Murdaugh routed and redirected clients’ settlement funds to personally enrich himself, including by: Drafting, or directing law firm employees to draft, disbursement sheets to send settlement funds to Murdaugh’s accounts without proper disclosure or client or law firm approval; Claiming funds held in the law firm’s trust account as attorney’s fees and directing the disbursement of those funds for his benefit; Claiming and collecting attorney’s fees on fake or nonexistent annuities; Creating fraudulent “expenses” that were never incurred on client matters and directing the disbursement of settlement funds to pay the cited costs, including claimed medical expenses, construction expenses, and airline expenses; Directing other attorneys with whom he was associated on client matters to disburse attorney’s fees directly to him, rather than appropriately routing the fees through the law firm; and Intercepting insurance proceeds intended for beneficiaries and depositing them directly into his personal account. In a second scheme, the indictment alleges that from in or around July 2011 until at least October 2021, Murdaugh conspired with his banker, Russell Laffitte, to commit wire fraud and bank fraud. The indictment alleges that Murdaugh and his law firm asked Laffitte to serve as personal representative or conservator for numerous personal injury clients. Laffitte collected over $350,000 in fees as personal representative or conservator for Murdaugh’s personal injury clients. As part of the scheme, the indictment alleges Murdaugh directed law firm employees to make settlement checks payable to “Palmetto State Bank.” The checks were then delivered to Laffitte, whom Murdaugh directed to use the settlement funds for Murdaugh’s benefit. The funds were used to pay off Murdaugh’s personal loans and for personal expenses and cash withdrawals. In November 2022, Laffitte was convicted on six federal charges, including conspiracy to commit wire and bank fraud, bank fraud, and wire fraud for his role in this scheme. He is currently awaiting sentencing. In a third scheme, the indictment alleges that in September 2015, Murdaugh created a bank account in the name of “Forge,” presenting as a legitimate corporation for structuring insurance settlements. Murdaugh was the owner of and the only authorized signer on this “fake Forge” account. The indictment alleges that from in or around May 2017 through at least July 2021, Murdaugh funneled stolen personal injury settlements through the “fake Forge” account. Murdaugh is charged with 14 counts of money laundering for using the transactions in the “fake Forge” account to conceal the proceeds of his fraud. The indictment further alleges that, from in or around February 2018 until at least October 2020, Murdaugh conspired with a personal injury attorney in Beaufort to defraud the estate of Murdaugh’s former housekeeper and Murdaugh’s homeowner’s insurance carriers. In February 2018, Murdaugh’s housekeeper passed away after a fall at Murdaugh’s home. Murdaugh recommended that the housekeeper’s estate hire the Beaufort attorney to represent them and file a claim against Murdaugh to collect from his homeowner’s insurance policies. Murdaugh’s insurance companies settled the estate’s claim for $505,000 and $3,800,000. The indictment alleges that Murdaugh and the personal injury attorney conspired to siphon settlement funds, disguised as “prosecution expenses,” for their own personal enrichment. The indictment further alleges that Murdaugh directed the Beaufort attorney to draft checks totaling $3,483,431.95 made payable to “Forge.” Murdaugh then deposited the checks into his “fake Forge” account and used the funds for his own personal enrichment. The estate did not receive any of the settlement funds. Murdaugh faces the following charges: One count of conspiracy to commit wire fraud and bank fraud, punishable by up to 30 years in prison and a fine of up to $1,000,000; One count of bank fraud, punishable by up to 30 years in prison and a fine of up to $1,000,000; Two counts of wire fraud, punishable by up to 30 years in prison and a fine of up to $1,000,000; Three counts of wire fraud, punishable by up to 20 years in prison and a fine of up to $250,000; One count of conspiracy to commit wire fraud, punishable by up to 20 years in prison and a fine of up to $1,000,000; and Fourteen counts of money laundering, punishable by up to 20 years in prison and a fine of up to $500,000. All charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. The case was investigated by the Federal Bureau of Investigation and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse, Kathleen Stoughton, and Winston Holliday are prosecuting the case. The case against Murdaugh is No. 9:23-cr-396 (D.S.C.). The case against Laffitte is No. 9:22-cr-658 (D.S.C.). ###


title: Connecticut Naturopath and Practice Pay $400K to Settle False Claims, Improper Billing Allegations

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General, and William Tong, Connecticut Attorney General, today announced that COREBELLA HEALTH, LLC, and its owner, MARCOS DeESCOBAR, have entered into a civil settlement agreement with the federal and state governments and have paid a total of $399,440.55 to resolve allegations that they submitted false claims to, and received overpayments from, the Medicare and Medicaid programs. Corebella Health (“Corebella”) is a practice that provides medical and wellness services to patients in Waterbury. DeEscobar is a naturopath and the owner of Corebella. The allegations against Corebella and DeEscobar arise out of improper billing for allergy immunotherapy preparation, and office visits, also known as evaluation and management (“E&M”) services. Services performed by a nurse practitioner are typically reimbursed by Medicare and Medicaid at a lower rate than those performed by a physician. There are circumstances where nurse practitioner services are considered “incident-to” physician services, and may be properly billed and reimbursed at the higher physician rate. Among other requirements, incident-to services require a certain level of physician supervision. The government alleges that Corebella and DeEscobar submitted, or caused to be submitted, false claims to Medicare and Medicaid for services that were supposedly rendered by physicians. In reality, the services were rendered by nurse practitioners, did not meet incident-to supervision requirements, and should not have been reimbursed at the higher physician rate. When billing for the preparation and provision of allergy immunotherapy, providers must specify the number of units prepared for the patient. The government alleges that Corebella and DeEscobar received overpayments from Medicare and Medicaid for allergy immunotherapy preparation services by submitting claims for more units than were actually prepared. Medicare and Medicaid generally consider E&M services that occur on the same day as a procedure to be part of the work of the procedure, and do not allow a separate payment for the office visit. However, when a significant, separately identifiable service is performed by the same physician on the same date of the procedure, the provider can use “Modifier 25” to bill for both the procedure and the E&M services. The government alleges that Corebella and DeEscobar caused improper claims to be billed to Medicare and Medicaid by adding Modifier 25 to E&M claims when providing allergy injections when, in fact, no significant, separately identifiable E&M services were provided. To resolve their liability, Corebella and DeEscobar paid $399,440.55 to the federal and state governments for conduct occurring between January 1, 2016, through December 31, 2018. This matter was investigated by the Office of the Inspector General for the Department of Health and Human Services, and the Connecticut Office of the Attorney General. The case was prosecuted by Assistant U.S. Attorney Sara Kaczmarek and by Assistant Attorney General Joshua Jackson of the Attorney General’s Office. People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Task Force at (203) 777-6311.


title: Murdaugh Co-Conspirator Cory Fleming to Plead Guilty to Federal Conspiracy Charge

body_text: CHARLESTON, SOUTH CAROLINA — Cory H. Fleming, 54, of Beaufort, is scheduled to plead guilty in federal court tomorrow, Thursday, May 25, to conspiracy to commit wire fraud. Fleming is scheduled to plead guilty to an information alleging that from in or around March 2018 until at least October 2020, Fleming conspired with former personal injury attorney Richard Alexander “Alex” Murdaugh to defraud the estate of Murdaugh’s former housekeeper and to obtain money and property from the estate by means of materially false and fraudulent pretenses. In February 2018, Murdaugh’s housekeeper passed away after a fall at Murdaugh’s home. Murdaugh recommended that the housekeeper’s estate hire Fleming—then a personal injury and criminal defense attorney in Beaufort—to represent them and file a claim against Murdaugh to collect from his homeowner’s insurance policies. Murdaugh’s insurance companies settled the estate’s claim for $505,000 and $3,800,000. The information alleges that, as part of the scheme, Murdaugh and Fleming conspired to siphon settlement funds, disguised as “prosecution expenses,” for their own personal enrichment. The information further alleges that Fleming directed the drafting of checks from the settlement funds held in his trust account to his personal bank account, fraudulently claiming that the funds were to pay for “expenses” related to the estate’s claim against Murdaugh. The information alleges Fleming knew the funds belonged to the estate, and the payments were not for legitimate legal expenses. The hearing is scheduled for 2:00 p.m. at the J. Waties Waring Judicial Center, 83 Meeting Street, Charleston, South Carolina, in Courtroom 1, before The Honorable Richard M. Gergel. Fleming faces a maximum penalty of up to five years in prison and a fine of up to $250,000. The case was investigated by the Federal Bureau of Investigation and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse, Kathleen Stoughton, and Winston Holliday are prosecuting the case. The case against Fleming is No. 9:22-cr-394 (D.S.C.). The case against Murdaugh is No. 9:23-cr-396 (D.S.C.). ###


title: St. Clair County Man Facing Federal Charge for Pipe Bomb Possession

body_text: EAST ST. LOUIS, Ill. – On Monday, Jim F. Lanier, 49, of Marissa, Illinois, was arraigned on an indictment in federal court charging the unlawful possession of a destructive device. Lanier was ordered detained pending trial. In a previously filed complaint, the Federal Bureau of Investigation alleged that Lanier admitted to making a homemade pipe bomb that he intended to use to blow up his wife’s vehicle, and further admitted to lighting and throwing the device at people who confronted him inside a trailer park in Marissa, Illinois on April 29, 2023. The device did not detonate, according to the complaint. The complaint further alleged that a second suspicious device was found stored among Lanier’s belongings. The unlawful possession of an unregistered destructive device is punishable by up to 10 years’ imprisonment. “Destructive devices can be exceptionally dangerous to life and limb. All suspected cases of the unlawful possession of homemade explosive or incendiary devices must be investigated thoroughly and treated as serious threats,” said U.S. Attorney Rachelle Aud Crowe. “A potentially hazardous situation that could have endangered the lives of innocent people was averted thanks to successful collaboration with our local, state and federal partners,” said Springfield Field Office Special Agent in Charge David Nanz. “FBI Springfield would like to thank the Scott Air Force Base Explosive Ordnance Disposal Unit, the Secretary of State Police Bomb Squad, and the Marissa Police Department. This multi-agency investigation demonstrates the joint commitment of our law enforcement partners to prioritize the safety of our communities.” Complaints and indictments are merely formal charges against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury. The Federal Bureau of Investigation is leading the investigation with the assistance of the Marissa Police Department, the Illinois Secretary of State Police Hazardous Devices Unit, and Scott Air Force Base Explosive Ordnance Disposal. Assistant U.S. Attorneys Kevin Burke and Liam Coonan are prosecuting the case.


title: Former Postal Carrier Sentenced To Over Six Years For Distributing Cocaine Packages Sent To Her Postal Route

component: USAO - Florida, Middle

body_text: Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Nathasha Michelle Prieto (34, Bradenton) to six years and six months in federal prison for conspiring to distribute over five kilograms of cocaine. Prieto had pleaded guilty on January 5, 2023. According to court documents, Prieto, a former United States Postal Carrier, and her co-defendant, Angel Hernandez Coss, orchestrated a scheme by which Prieto provided addresses on her delivery route to Coss who used those addresses to secure shipments of cocaine from Puerto Rico. As a result, kilogram quantities of cocaine were shipped in packages to these addresses. Prieto then removed the packages from the mail stream and provide them to Coss who then distributed the cocaine. Coss was sentenced to 17 years and 6 months in federal prison on May 17, 2023. This case was investigated by the United States Postal Service – Office of Inspector General, the Drug Enforcement Administration, the Manatee County Sherriff’s Office, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Jim Preston.


title: Tax Preparer And Client Charged With $13 Million Paycheck Protection Program Fraud Scheme

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging SANDEEP GROVER and SHIKHA SEHGAL with major fraud against the U.S. and conspiracy to commit wire fraud and bank fraud for their participation in a scheme to submit more than 100 applications containing false representations to seven financial institutions and fraudulently obtain over $13 million in government-backed Paycheck Protection Program (“PPP”) loans designed to provide relief to small businesses during the COVID-19 pandemic. GROVER is also charged with aggravated identity theft for using an employee’s personally identifiable information without authorization to submit a loan application. GROVER and SEHGAL will be presented today before U.S. Magistrate Judge Gabriel W. Gorenstein. U.S. Attorney Damian Williams said: “Sandeep Grover allegedly used his tax preparation business to steal millions of dollars from a program created by Congress to assist struggling small businesses during the pandemic. To pull off his scheme, Grover allegedly recruited co-conspirators like Shikha Sehgal, who opened bank accounts for shell companies and lied to banks about those companies’ loan eligibility. This Office will continue to prosecute those who used the pandemic as an opportunity to defraud American taxpayers.” FBI Assistant Director-in-Charge Michael J. Driscoll said: “The defendants allegedly devised a scheme to exploit the Paycheck Protection Program for millions of dollars for personal use rather than qualifying expenses. Fraudulent schemes like these defraud not only a program intended to help small businesses weather a global pandemic but also the United States' taxpayers. The FBI will continue to ensure that anyone taking advantage of government backed programs are held responsible in the criminal justice system.” As alleged in the Complaint [ [1] ] : SANDEEP GROVER is the owner of Excellent Business Services Inc. (“EBS”), a tax preparation business based in Seaford, New York. From at least April 2020 through at least June 2021, GROVER submitted more than 100 PPP applications containing false representations to at least seven financial institutions, on behalf of dozens of his own companies as well as putative client companies on whose behalf GROVER created false IRS filings. The applications certified to the United States Small Business Administration (“SBA”) that the companies each had multiple employees and spent tens of thousands of dollars in monthly payroll, but in fact the companies did not report wages to the Social Security Administration during the relevant time period. Bank records also show that instead of using the PPP loan proceeds for allowable expenses, such as payroll costs, mortgage interest, rent, and utilities, GROVER moved millions of dollars in PPP loan proceeds between his many accounts and used those proceeds to purchase property, pay off personal loans, and pay expenses for other companies under his control. GROVER used a variety of methods to increase the number of fraudulent loan applications he was able to submit. Among other things, he recruited SHIKHA SEHGAL and others to open bank accounts for companies that did no business, create fake invoices and other supporting documentation, and submit fraudulent applications for numerous PPP loans. GROVER also misused the personally identifiable information of one of his employees to obtain a loan. * * * GROVER, 54, of Massapequa, New York, and SEHGAL, 43, of Deer Park, New York, were each charged with one count of major fraud against the United States, which carries a maximum sentence of ten years in prison, and one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison. GROVER is also charged with one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. Mr. Williams praised the investigative work of the FBI and thanked the U.S. Small Business Administration’s Office of Inspector General and the New York Field Office of the Internal Revenue Service, Criminal Investigation, for their assistance. This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jane Yumi Chong is in charge of the prosecution. The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Jacksonville Convicted Murderer Sentenced To 20 Years In Federal Prison For Armed Drug Dealing

body_text: Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Ronald Bernard Thomas, Jr. (44, Jacksonville) to 20 years in federal prison for selling methamphetamine while armed with two pistols. The two pistols used in the offense previously were administratively forfeited. Thomas had pleaded guilty on February 9, 2023. According to court documents, Thomas, who used the street name “Gorilla,” had been convicted of second-degree murder in 2002 after he shot an unarmed man, killing him. Thomas was sentenced to 20 years in prison for that crime and released from prison in 2017. Beginning at least by August 2021, Thomas had begun selling drugs, including fentanyl and methamphetamine, out of Jacksonville-area hotels. Special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives were able to obtain controlled purchases of drugs from Thomas on multiple occasions in 2021 and 2022. During some of the drug purchases, Thomas displayed his firearms on the table where he weighed out and packaged the drugs that he was selling. On July 28, 2022, agents conducted a traffic stop on Thomas’s vehicle and arrested him pursuant to a federal arrest warrant. Thomas had a loaded Glock 9mm pistol in his pants pocket. A search of his vehicle revealed a second loaded pistol, with loaded magazine, methamphetamine, pills, and suspected heroin and fentanyl, in addition to scales, whisks, spoons, and plastic baggies. Thomas has been detained in the custody of the U.S. Marshals Service since that time. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Nassau County Sheriff’s Office and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Three Members of Cape Cod Heroin Trafficking Ring Sentenced to Prison for Violent Kidnapping and Drug Offenses

component: USAO - Massachusetts

body_text: BOSTON – Three men have been sentenced to decades in prison for their roles in a Cape Cod drug trafficking organization (DTO) that distributed heroin throughout the Cape Cod and Pawtucket, R.I., regions, committed a violent kidnapping recorded on video and worked together to shoot at a Hyannis man over a drug debt. Edwin Otero, 33, of Hyannis, was sentenced on May 18, 2023 by Judge Allison D. Burroughs to 38 years in prison. On May 16, 2023, Justin Joseph, 35, of Pawtucket, R.I., was sentenced by Judge Burroughs to 30 years in prison; and Anthony Basilici, 39, of Pawtucket, was sentenced to 22 and a half years in prison. On Jan. 26, 2023, after a week-long trial, Basilici was convicted by a federal jury of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession and discharge of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; witness intimidation; and witness retaliation conspiracy. On Jan. 18, 2023, the day jury selection began, Otero and Joseph pleaded guilty to conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession and discharge of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; and witness retaliation conspiracy. In 2018, an investigation began into a Cape Cod-wide DTO led by Edwin Otero. The investigation revealed that Otero, Joseph, Basilici and their other co-defendants distributed large quantities of heroin throughout Cape Cod, including in Hyannis, Mashpee, Centerville, Osterville and in Pawtucket, R.I. In April 2019, Otero, Joseph, and Basilici lured a victim from Massachusetts to Rhode Island where they kidnapped and held him, stripped him naked, assaulted him with a hammer and threatened to rape him. Otero, Joseph, Basilici and other co-conspirators threatened physical injury to the victim to retaliate against him because they believed he was cooperating with law enforcement. Basilici recorded the assault and kidnapping on a cell phone which Otero and Basilici used to further intimidate other witnesses after the kidnapping. In May 2019, Otero, Joseph and Basilici armed themselves with guns and worked together to shoot at a Hyannis man over a drug debt owed to Otero. Otero, Joseph and Basilici were initially charged along with eight others in May 2019 on the drug conspiracy charges. In connection with those arrests, heroin, packaging materials, scales, a finger press as well as three firearms and ammunition including a 9 millimeter assault-style weapon were seized from Otero’s grandmother’s residence. In March 2020, Otero, Joseph, Basilici and two others – Cameron Cartier and Albert Lee – were indicted in connection with the violent kidnapping and related charges. In addition to the sentencings discussed above, a fourth defendant, Tony Johnson, 39, of Hyannis, was sentenced on May 18, 2023 to 75 months in prison after he pleaded guilty to conspiring with Otero and others to distribute heroin. All 13 defendants charged in this indictment have now been sentenced. Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Barnstable Police Chief Matthew K. Sonnabend; and Barnstable County Sheriff Donna D. Buckley made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Levy’s Criminal Division prosecuted the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: New Bedford Man Pleads Guilty to Drug Distribution

body_text: BOSTON – A New Bedford man pleaded guilty on May 22, 2023 to fentanyl distribution charges. Hector Diaz, 45, pleaded guilty to two counts of distributing and possessing with intent to distribute fentanyl. Chief U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Aug. 7, 2023. Diaz was indicted in March 2022 and was arrested in June 2022. On two occasions between December 2020 and January 2021, Diaz distributed and possessed with intent to distribute fentanyl in New Bedford. The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, three years and up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Assistant U.S. Attorneys Timothy E. Moran and Sarah Hoefle of Levy’s Organized Crime & Gang Unit are prosecuting the case.


title: Dominican Man Charged with Illegal Reentry

body_text: BOSTON – A Dominican man has been charged with illegally reentering the United States after deportation. Franklin Alcantara Lorenzo, 35, was charged with one count of unlawful reentry of a deported alien. Alcantara Lorenzo was detained following an initial appearance before U.S. District Court Magistrate Judge M. Page Kelley on May 22, 2023. According to the charging documents, Alcantara Lorenzo was deported from the United States on July 6, 2021, following a federal conviction in the District of Massachusetts for conspiracy to distribute in excess of 40 grams of fentanyl and the possession with intent to distribute in excess of 40 grams of fentanyl. It is alleged that sometime after his July 2021 removal, Alcantara Lorenzo unlawfully reentered the United States. On April 26, 2023, Alcantara Lorenzo was arrested by immigration authorities in Chestnut Hill. In December 2020, Alcantara Lorenzo was convicted of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and distribution of and possession with intent to distribute 40 grams or more of fentanyl, for which he was sentenced to 21 months in prison. The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Mark Grady, Deputy Chief of Levy’s Major Crimes Unit is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Stamford Man Charged with Child Exploitation Offenses

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations (HSI), New England, and Stamford Police Chief Timothy Shaw today announced that SERVIO BARROS-TERREROS, 56, of Stamford has been charged by federal criminal complaint with child exploitation offenses. As alleged in court documents, in December 2022, a minor female victim reported that, when she was nine and 10 years old, Barros-Terreros had sexually assaulted her multiple times. The victim reported that Barros-Terreros took sexually explicit pictures of her, and threatened to publish the pictures and show them to the victim’s mother if the victim told anyone. Barros-Terreros also instructed the victim to undress during video calls he initiated with the victim, during which he also engaged in sexually explicit conduct. On January 12, 2023, Stamford Police arrested Barros-Terreros on state sexual assault and risk of injury offenses, and seized Barros-Terreros’ iPhone. It is alleged that analysis of the iPhone revealed sexually explicit images of the minor victim, and images of Barros-Terreros engaging in sexually explicit conduct with the minor victim. Barros-Terreros has been detained since his arrest. He made his initial appearance yesterday in Bridgeport federal court. The complaint charges Barros-Terreros with sexual exploitation of children, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and with possession of child pornography, an offense that carries a maximum term of imprisonment of 20 years. U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by Homeland Security Investigations (HSI) and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings with the assistance of the Office of the State’s Attorney for the Judicial District of Stamford-Norwalk. This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc . To report cases of child exploitation, please visit www.cybertipline.com .


title: Frankfort Resident Facing Federal Charges For Tampering And Vandalism At Sleeping Bear Dunes National Lakeshore

component: USAO - Michigan, Western

body_text: GRAND RAPIDS , MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that his office has filed charges against Andrew Blair Howard, 62, of Frankfort, Michigan. Howard is charged with one count of tampering and one count of vandalism at Sleeping Bear Dunes National Lakeshore on August 15, 2022. “These allegations of tampering and vandalism by a man-made diversion of water at Platte River are disturbing,” said U.S. Attorney Totten. “The Sleeping Bear Dunes National Lakeshore and the Great Lakes are national gems, and my office takes preserving our natural treasures very seriously.” In mid-August, National Park Service law enforcement officers investigated reports of diversion of the waters of the Platte River within the Sleeping Bear Dunes National Lakeshore, along the northwest coast of the Lower Peninsula. “Sleeping Bear Dunes National Lakeshore was created in 1970 to preserve and protect this amazing place,” said Superintendent Scott Tucker . “The National Park Service appreciates the support of the U.S. Attorney's Office in enforcing the laws that help protect this place for future generations.” The charges against Howard are merely accusations, and a defendant is presumed innocent unless and until proven guilty in a court of law. These charges carry a maximum penalty of up to 6 months’ imprisonment, up to a $ 5,000 fine, up to 5 years’ probation, and mandatory restitution. Any sentence, however, would be determined at the discretion of the U.S. District Court. This case is the product of an investigation by the National Park Service law enforcement officers. Assistant United States Attorney Lauren F. Biksacky is prosecuting this case on behalf of the United States. ###


title: U.S. Attorney Announces Application Process For Second Term Of NYCHA Monitorship

body_text: The U.S. Attorney’s Office for the Southern District of New York (“SDNY”) and the U.S. Department of Housing and Urban Development (“HUD”) are soliciting applications from qualified individuals to serve as monitor for the New York City Housing Authority (“NYCHA”) under the January 31, 2019 settlement agreement (“Agreement”) between HUD, NYCHA, and the City of New York, for the second five-year term of the monitorship. The Agreement is available here . The “primary purpose of the [Agreement] is to remedy the deficient physical conditions in NYCHA properties, ensure that NYCHA complies with its obligations under federal law, reform the management structure of NYCHA, and facilitate cooperation and coordination between HUD, NYCHA, and the City during the term of this Agreement.” Agreement ¶ 8. The monitor plays a significant role in providing strategic advice, technical support, and oversight necessary to achieve these purposes, in partnership with SDNY and HUD and in close collaboration with NYCHA’s own leadership, NYCHA’s residents and resident groups, and the City of New York. Together with these and other stakeholders, the monitor is responsible for ensuring the implementation of reform efforts currently underway; developing additional strategies necessary to further the goals of the agreement; and leading data-driven assessments of NYCHA’s progress, including with respect to the obligations and metrics contained in the Agreement. [1] SDNY and HUD anticipate that this selection will be for a five-year term beginning in early 2024. Additional detail regarding SDNY and HUD’s expectations for the position is provided in Exhibit A to this notice. Interested individuals should submit statements of interest for appointment to the monitorship position no later than July 22, 2023 . Statements of interest should be no longer than 20 pages (exclusive of exhibits), should address the applicant’s qualifications and monitoring plan, including how the applicant will successfully meet the expectations in Exhibit A, and should identify the key individuals and firms anticipated to support the monitorship. Exhibits to the statement of interest should include a preliminary proposed budget for the first year of the monitorship term and an executed version of the form attached to this notice as Exhibit B. Statements of interest should be submitted electronically to USANYS.NYCHAmonitor@usdoj.gov ; please do not submit paper copies. [1] Materials related to NYCHA’s reform efforts are available on NYCHA’s website, at https://www.nyc.gov/site/nycha/about/reports.page


title: Evansville Child Predator Sentenced to 5 Years in Federal Prison After Sharing Child Sexual Abuse Material via Skout

component: USAO - Indiana, Southern

body_text: EVANSVILLE- Ricky Adams, 33, of Evansville, Indiana, has been sentenced to 5 years in federal prison after pleading guilty to distribution of child sexual abuse material. According to court documents, on September 17, 2021, investigators with the FBI and the Evansville Police Department (EPD) received a tip from a social network dating application called Skout. Skout can be used for messaging and online chatting by its members. In the chat session reported to the FBI and EPD by Skout, chat participants discussed the sexual abuse of children. A months-long investigation ultimately identified Adams as a participant in the reported online chat session. Adams made claims to another chat participant that he was playing truth or dare with “his children,” ages 13, 12, 9 and 6. In the chats, Adams claimed to be sexually active with the purported children. Adams did not actually have control of, or access to, any children at the time. Adams sent at least two images depicting minors engaged in sexually explicit conduct during the chat session. U.S. Attorney for the Southern District of Indiana, Zachary A. Myers, Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, and Chief Billy Bolin of the Evansville Police Department made the announcement. “This defendant joined others online to share heinous images depicting the sexual abuse of children,” said United States Attorney for the Southern District of Indiana, Zachary A. Myers “Those who are gratified by the sexual exploitation of the most vulnerable of victims are a tremendous danger to our communities. We will continue to work tirelessly with our partners at the FBI and Evansville Police Department to identify these criminals and send them to prison, where our children are out of their reach.” The FBI investigated this case with valuable assistance from the Evansville Police Department. The sentence was imposed by U.S. District Court Judge, Richard L. Young. Judge Young also ordered that Adams be supervised by the U.S. Probation Office for 5 years following his release from federal prison. U.S. Attorney Myers thanked Assistant United States Attorney Todd S. Shellenbarger, who prosecuted this case. This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc ###


title: Man Sentenced to Over Seven Years in Prison for Trafficking Heroin and Fentanyl from Dominican Republic

body_text: BOSTON – A Dominican man has been sentenced in federal court in Boston for conspiring to traffic multiple kilograms of heroin and fentanyl from the Dominican Republic to states on the East Coast. Kelvin Regalado, 42, was sentenced on May 10, 2023 by U.S. District Court Judge Nathaniel M. Gorton to 87 months in prison and three years of supervised release. On Jan. 6, 2023, Regalado pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and 100 grams or more of carfentanil; one count of distribution and possession with intent to distribute ketamine; and one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl. Regalado was indicted in December 2020, along with co-defendant Marcos Cabrera, while he was residing in the Dominican Republic. Regalado was extradited to the United States in May 2022 after being taken into custody by Dominican authorities. From August 2019 through March 2020, in the Dominican Republic, Regalado conspired with Cabrera to deliver nearly three kilograms of heroin and carfentanil to cooperating witnesses in New York, Rhode Island and Massachusetts. Additionally, Regalado arranged to have one kilogram of fentanyl and one kilogram of ketamine sent to the cooperating witnesses through the mail in Massachusetts. In January 2022, Cabrera was sentenced to 87 months in prison after previously pleading guilty to his role in the conspiracy. Acting United States Attorney Joshua S. Levy and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Stephen W. Hassink of Levy’s Narcotics & Money Laundering Unit is prosecuted the case. The Justice Department’s Office of International Affairs provided substantial assistance. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: Evansville Parts Manager Sentenced to Three and a Half Years in Federal Prison for 5 Year Scheme to Defraud Employer of over $400,000

body_text: EVANSVILLE- James H. Cox, 45, of Kentucky, has been sentenced to 3.5 years in federal prison after pleading guilty to two counts of wire fraud, one count of filing a false federal income tax return, and two counts of failure to file a federal income tax return. According to court documents, Cox worked as the Parts Manager for a multi-state business from March 2015 to November 2020. During that time, Cox was responsible for ordering parts, signing for them when they arrived, and logging them into inventory. From 2018 to 2020, Cox used his position to fraudulently order parts and products that the business did not need using funds belonging to the business. Cox then stole the products, including HVAC units and LED display kits, from the business and sold them on eBay without authorization. He received payment via PayPal and used the proceeds from the sales for his own personal benefit. Cox also failed to disclose to potential buyers that the listed products were stolen, which violates eBay’s User Agreement. In total, Cox sold approximately 400 stolen items on eBay, resulting in a total loss of $431,557.61 to his employer. Additionally, Cox did not report the income from these sales on his 2018 tax return and failed to file returns for 2019 and 2020. The total tax loss to the U.S. government amounted to $106,690.00. “Criminals who abuse positions of trust to lie and steal must be held accountable,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “Our office is committed to working with the IRS, FBI, and the U.S. Secret Service to identify individuals engaged in fraudulent schemes and ensure they are held accountable for their actions. The sentence imposed here demonstrates that fraud and tax crimes are serious violations that can result in significant terms in federal prison.” “IRS-Criminal Investigation enforces the nation’s tax laws to ensure everyone pays their fair share,” said Justin Campbell, Special Agent in Charge of IRS-Criminal Investigation, Chicago Field Office. “This case highlights that even stolen income is taxable. We would like to express our gratitude to the United States Attorney’s office for their support in the prosecution of this case.” “Today’s sentencing is a reminder that financial crimes are not victimless crimes,” said Special Agent in Charge Jeffrey R. Adams, U. S. Secret Service – Indianapolis Field Office. “The defendant victimized his employer for his own personal gain. The Secret Service will continue to investigate and pursue prosecution of those who engage in financial fraud.” “Companies should be able to trust their employees not to abuse their position and steal from them for their own self-enrichment,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “This sentence should serve as a reminder that illegal practices will not be tolerated and the FBI and our partners will continue to aggressively pursue those who exploit others out of sheer greed and selfishness.” The Internal Revenue Service, Federal Bureau of Investigation, and Secret Service investigated this case. The sentence was imposed by U.S. District Court Judge Richard L. Young. Judge Young also ordered that Cox be supervised by the U.S. Probation Office for 3 years following his release from federal prison and pay $82,482.11 to the employer, $349,075.50 to the employer’s insurance company, and $106,690 to the IRS. U.S. Attorney Myers thanked Assistant United States Attorney Matthew B. Miller, who prosecuted this case. ###


title: Albuquerque man sentenced to 7 years for illegal firearms possession

component: USAO - New Mexico

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Arthur Quintana was sentenced to 86 months in prison. Quintana, 45, of Albuquerque, pleaded guilty on Feb. 7, 2023, to being a felon in possession of firearm and ammunition. According to the plea agreement and other court records, on June 6, 2021, a property owner discovered Quintana and others in a trailer in Bernalillo County, New Mexico. As the property owner called 911 to report the incident, Quintana fled in a Ford Explorer. Bernalillo County Sheriff Deputies responding to the call and conducted a traffic stop as Quintana was leaving the area. Quintana told the deputies that he had two firearms and consented to a search of the vehicle. The deputies found two loaded handguns under the front passenger seat. In his plea, Quintana admitted that he knew that as a previously convicted felon and that he could not legally possess firearms or ammunition. Upon his release from prison, Quintana will be subject to 3 years of supervised release. The Bernalillo County Sheriff’s Office investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Alexander F. Flores prosecuted the case. # # # 23-108


title: Bay Area Woman Faces Federal Charges For Distributing Fentanyl

component: USAO - California, Northern

body_text: OAKLAND – Jianna Coppedge appeared today in United States District Court to face a federal charge that she distributed fentanyl in the form of counterfeit “M30” pills, announced United States Attorney Ismail J. Ramsey and Drug Enforcement Administration (DEA) Special Agent in Charge Brian Clark. Coppedge made her initial appearance today in United States District Court in Oakland before United States Magistrate Kandis A. Westmore. The basis for the charge was set out in a criminal complaint filed April 4, 2023, and unsealed in federal court today. The criminal complaint describes a transaction in which Coppedge, 19, of Alameda County, arranged the sale of, and then sold, “M30” pills containing fentanyl. The individual to whom the drugs were sold subsequently died of an overdose. The complaint charges Coppedge with distribution of fentanyl, in violation of 21 U.S.C. § § 841(a)(1), (b)(1)(C). The statutory maximum for the charge is a maximum 20 years’ imprisonment, a maximum fine of $1,000,000 a maximum lifetime of supervised release, and a $100 special assessment. However, any sentence following a conviction would be imposed by a court only after considerations of the U.S. Sentencing Guidelines and the federal statue governing the imposition of a sentence, 18 U.S.C. § 3553. The charges contained in the criminal complaint are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law. Assistant U.S. Attorney Kenneth Chambers of the Oakland Branch of the United States Attorney’s Office is prosecuting the case with the assistance of Leeya Kekona and Lance Macaraeg. The prosecution is the result of an investigation by DEA and the Dublin Police Department. One Pill Can Kill: Beware of pills bought on the street: One Pill Can Kill . Fentanyl, a Schedule I controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl create huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies.


title: Federal Correctional Officer Makes California Federal Court Appearance To Face Charges Of Aggravated Sexual Abuse

body_text: OAKLAND – A federal correctional officer at Federal Correctional Institution, Dublin (FCI Dublin) made his first appearance before the Northern District of California after a federal grand jury returned a 12-count indictment charging him for sexually abusing three female inmates in his custody. According to the indictment filed April 13, 2023, Darrell Wayne Smith, 54, now residing in Florida, was employed at FCI Dublin as a correctional officer when he engaged in sexual acts and sexual contact with three female inmates who were then serving prison sentences. The indictment describes twelve incidences between May 2019 and May 2021 during which Smith allegedly engaged in illegal sexual contact and acts with his victims, including digitally penetrating a victim’s anus by use of force. “The charges announced today are the latest in the Justice Department’s campaign to root out sexual misconduct within the Bureau of Prisons,” said Deputy Attorney General Lisa O. Monaco. “As alleged, Darrell Smith exploited his authority to sexually abuse three vulnerable victims in custody at FCI Dublin. To enforce the BOP’s dual mission of providing a safe, humane environment for those in custody while preparing them to return to society, we will hold accountable all BOP personnel who abuse their authority.” “This indictment shocks the conscience of anyone reading it,” said U.S. Attorney Ramsey. “The alleged conduct falls far below the minimum standards of decency required—much less, the standards of integrity expected—of any Bureau of Prisons employee. Rest assured, the Department will root out any such conduct and prosecute all persons who are responsible.” “For years, the defendant allegedly used his position of authority, as a federal corrections officer, to commit unspeakable acts of abuse and violence against multiple victims in a correctional institution,” said FBI Deputy Director Abbate. “The FBI and our law enforcement partners are committed to aggressively pursuing those who violate the civil rights of others, no matter their rank or title. Nothing can undo the pain inflicted on the victims, but we hope today’s indictment is a further step towards justice.” “The Department of Justice Office of the Inspector General is committed to bringing to justice every single BOP employee at FCI Dublin who sexually abused inmates. To date, those efforts have already included arrests and convictions of FCI Dublin’s former Warden and Chaplain,” said Inspector General Michael E. Horowitz. Today’s indictment alleges brazen and violent sexual assault by Smith and alleges abuse of multiple inmates over several years. As evidenced by these charges, the OIG and FBI investigation remains ongoing, and we will continue to aggressively investigate allegations of abuse at FCI Dublin and across the Federal Bureau of Prisons.” Each of the alleged victims is identified in the indictment by initials and was in official detention and under Smith’s custodial, supervisory, and disciplinary authority at the time of the alleged illegal conduct. In addition, each count in the indictment corresponds with one encounter during which Smith allegedly engaged in unlawful sexual acts or contact with one of the victims. Smith is charged with five counts of sexual abuse of a ward, in violation of 18 U.S.C. § 2243(b); six counts of abusive sexual contact, in violation of 18 U.S.C. § 2244(a)(4); and one count of aggravated sexual abuse, in violation of 18 U.S.C. § 2241(a). The charges presented in an indictment are merely allegations and the defendant is presumed innocent unless proven guilty in a court of law. Smith faces a maximum term of life in prison if convicted of the charge under 18 U.S.C. § 2241(a). In addition, Smith faces a statutory maximum of 15 years of imprisonment for each count under § 2243(b) and a maximum of two years of imprisonment for each count under § 2244(a)(4). In addition, as part of any sentence, the court may order a term of supervised release, a fine of up to $250,000 for each count, restitution, and additional assessments. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Smith was arrested in Crawfordville, Fla., on May 11, 2023. He made an appearance in the Northern District of Florida before District Judge Martin A. Fitzpatrick the same day. Smith made his initial Northern District of California appearance this morning before U.S. Magistrate Judge Kandis A. Westmore. Smith’s next federal court appearance is scheduled for July 10, 2023, before U.S. District Judge Araceli Martínez-Olguín for a status conference. Assistant U.S. Attorneys Molly Priedeman and Andrew Paulson are prosecuting the case with the assistance of Leeya Kekona. The prosecution is the result of an investigation by the DOJ OIG and the Federal Bureau of Investigation.


title: Three Additional Defendants in North Carolina Plead Guilty to National COVID-19 Fraud Scheme

component: USAO - North Carolina, Eastern

body_text: RALEIGH, N.C. – Isaac Lamont Dawson, 44; Jackson Kyalo Ndoyo, 29; and Dontrell Rayshar Barnes, 32, each plead guilty today to conspiracy to commit wire fraud for fraudulently obtaining Paycheck Protection Act (“PPP”) COVID-19 loans. The defendants sought relief on behalf of various companies they owned including companies listed as purportedly being engaged in catering, music production, and construction. They all face up to 20 years in prison. "At a time when most Americans were looking to help their neighbors, these defendants decided to steal from them by scamming a taxpayer funded program designed to help mom and pop businesses from going under,” said U.S. Attorney Michael Easley. “My office is continuing to investigate and prosecute the bad actors who conspired to use this lifeline to line their own pockets." According to the charged criminal information, the defendant conspired with Edward Whitaker, Schunda Coleman, and others to obtain a fraudulent PPP loan. Whitaker and Coleman pled guilty on January 19, 2023 for their role in operating a nation-wide scheme to help people across the country commit millions of dollars of PPP fraud. According to charging documents and information summarized in court, Whitaker and Coleman created fraudulent supporting documents and applications for the PPP loans which they provided to the defendants in exchange for 25% of the total loan proceeds. The fraudulent applications falsified the number of employees and gross wages being paid prior to the COVID pandemic, in order to help qualify for the PPP loans. Following the disbursement of the PPP loans, Whitaker instructed each defendant as to how to make it appear that the PPP loans were being paid out to employees, when in reality the money was transferred back to the defendants. The fraudulent payroll records were then submitted to the Small Business Administration (SBA) to obtain 100% loan forgiveness. Late last year , Quentin Jackson pled guilty in the same conspiracy which included the recruitment of numerous individuals in the Eastern District of North Carolina to use Whitaker and Coleman to obtain fraudulent PPP funds. “The Paycheck Protection Program was designed to help small businesses facing financial difficulties during the COVID-19 pandemic,” said Donald “Trey” Eakins, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge in the Charlotte Field Office. “Through our partnership with the U.S. Attorney’s Office and our federal law enforcement partners, IRS Criminal Investigation Special Agents will continue to aggressively pursue individuals who try to exploit federal relief programs for their personal gain.” The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to the millions of Americans who were economically suffering from the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP). Financial institutions issued the PPP loans, which were guaranteed by the SBA. Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after United States Magistrate Judge Robert T. Numbers II accepted the pleas. Sentencings will occur before United States District Judge James C. Dever III later this year. Internal Revenue Service (IRS) Criminal Investigation is leading the investigation, and Assistant U.S. Attorney David G. Beraka is prosecuting the cases. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER . ###


title: New Orleans Man Sentenced for Federal Carjacking and Firearm Charges

body_text: NEW ORLEANS, LOUISIANA – MARIO COUSAN, age 25, a resident of New Orleans, Louisiana, was sentenced on May 18, 2023, to 147 months imprisonment by Chief U.S. District Judge Nannette Jolivette Brown, after pleading guilty to carjacking and brandishing a firearm during and in relation to a crime of violence, announced U.S. Attorney Duane A. Evans. According to court documents, on January 10, 2022, COUSAN , armed with a Glock, nine millimeter pistol, carjacked a victim as they exited the Dollar Tree on Morrison Road in New Orleans. As to the carjacking charge, the Court sentenced COUSAN to a sixty-three (63) month term of imprisonment and ordered him to pay restitution in the amount of $11,200.00. For brandishing a firearm during and in relation to a crime of violence, the Court sentenced COUSAN to an eighty-four (84) month term of imprisonment, to be served consecutively. Additionally, COUSAN will serve a three (3) year term of supervised release and pay a $200 mandatory special assessment fee. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the New Orleans Police Department. Assistant United States Attorney Greg Kennedy of the Violent Crimes Unit handled the prosecution.


title: United States Attorney's Office, in Conjunction with HSI Arizona, OFO Arizona and the Tucson and Yuma Border Patrol Sectors, Announces Drug Interdiction Results in Operations Blue Lotus and Four Horsemen

component: USAO - Arizona

number: 2023-074_Blue Lotus-Four Horsemen

body_text: PHOENIX, Ariz. – The United States Attorney’s Office, Homeland Security Investigations (HSI), and U.S. Customs and Border Protections, Office of Field Operations’ (OFO) Tucson Field Office and Border Patrol’s Tucson and Yuma Sectors announced today the results of drug interdiction operations along the border from March 6 through May 8. HSI and OFO’s Operation Blue Lotus, along with the Four Horsemen operation coordinated by the Border Patrol, seized substantial amounts of methamphetamine and interdicted more than a ton of fentanyl. Representative drug cases referred federally for prosecution include the following: United States v. Guadalupe Trujillo-Quintana and Sabrina Renee Alaniz-Lopez : The driver and his passenger were each charged after their Dodge Challenger was referred to secondary inspection at the DeConcini Port of Entry in Nogales, and x-rayed. Customs and Border Protection Officers found 156 packages of pills that field-tested positive for fentanyl, with a total weight of 94 kilograms. United States v. Kevin Rodriguez-Ballesteros : The driver and sole occupant was charged after his Ford Lobo was referred to secondary inspection in Nogales, and x-rayed. Further inspection resulted in the seizure of 236 packages that field-tested positive for fentanyl, with a total weight of 188.56 kilograms. United States v. Adela Baez : The driver was accompanied by her two minor children. At the Lukeville Port of Entry, a canine alerted to the odor of narcotics emanating from her Chevrolet Traverse. Subsequent investigation resulted in the interdiction of 32 packages that field-tested positive for fentanyl, with a total weight of 33.12 kilograms. United States v. Elvia Canez: The driver and sole occupant was charged after her Dodge Grand Caravan was referred to secondary inspection at the Mariposa Port of Entry in Nogales, and subsequent x-ray showed packages in the quarter panels and seats of the vehicle. In total, 73 packages were interdicted that field-tested positive for fentanyl, with a total weight of 54.81 kilograms. United States v. Isidro Pantoja-Ramirez : The driver and sole occupant of a Ford F-150 presented at the immigration checkpoint located near Wellton, Arizona, and was referred to secondary inspection after a canine alerted to the vehicle. During the subsequent search, 16 vacuum sealed packages containing small blue pills were located in the inside of the tailgate and in the spare tire on the undercarriage of the vehicle. The pills field-tested positive for fentanyl, and had a total weight of 62.5 kilograms. United States v. Melody Karina Romero Quezada : The driver and her passenger, driving in a Honda HR-V, approached the Border Patrol Checkpoint on Interstate 19 outside Amado, Arizona. A Border Patrol canine alerted to the vehicle, and further investigation revealed a trap door to a hidden compartment. Inside the compartment, Border Patrol Agents located 114 bundles that field-tested positive for fentanyl, with a total weight of 14 kilograms. United States v. Zulma Corrales-Hernandez and Manuel Mendoza-Gonzalez : The driver and his passenger were charged after applying for entry into the United States at the Mariposa Port of Entry in Nogales. The defendants and their Mazda CX-7 were referred to secondary inspection where a Z-Portal x-ray scan led to the removal of 588 packages that field-tested positive for fentanyl, with a total weight of 73.90 kilograms. United States v. Rosio Lopez Carrillo : The driver, accompanied by a minor child, applied for entry into the United States at the DeConcini Port of Entry in Nogales. After a canine detected the odor of narcotics coming from his Volkswagen Touareg, the defendant was referred to secondary inspection. Following a search, 65 packages that field-tested positive for fentanyl were removed from the vehicle, with a total weight of 46.70 kilograms. United States v . Jeancarlos Reyes : The defendant, accompanied by his girlfriend and two children, applied for admission at the San Luis Port of Entry in his GMC Sierra. After a canine alerted to the odor of narcotics, he was referred to secondary inspection, resulting in the interdiction of 201 packages of suspected drugs in the doors of the vehicle, including 131 packages that field-tested positive for fentanyl, with a total weight of 38.54 kilograms. Department of Homeland Security law enforcement personnel interdicted more than just drugs during these operations. The facts underlying United States v. Jesus Castillo Durazo reflect quick work by agents with HSI and the Casa Grande Border Patrol Station, with assistance from the Arizona Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives in interdicting crates of .50 caliber ammunition bound for Mexico. “Thanks to the efforts of our partners at the Department of Homeland Security, we prevented substantial amounts of fentanyl and other drugs from reaching Arizona neighborhoods,” said United States Attorney Gary Restaino. “These operations resulted in interdictions at four different ports of entry in addition to two checkpoints, and we appreciate the fine efforts of the law enforcement officers and their canine partners.” “The success of this initiative is largely attributed to the federal, state and local partners that spent countless hours not just by responding to port calls but assisting HSI with seizures throughout Arizona,” said Scott Brown, special agent in charge for HSI Arizona. “Drugs, but especially fentanyl are decimating communities, but together and with education, we all can make a significant impact in curbing the senseless deaths associated with the sale of these deadly drugs. I thank every agent, officer, trooper and anyone else that stood alongside HSI throughout the surge to support many of our efforts.” “The successes we’ve seen at our ports cannot be overstated. Our continued layered enforcement actions, our entire team’s dedication to protecting the homeland, and collaboration with our federal partners are key to fulfilling our mission,” said Guadalupe Ramirez, Director of Field Operations, Customs and Border Protection. “Collaborative efforts like these are critical to protecting towns and cities across the country,” said Tucson Sector Border Patrol Chief John Modlin. “Border security is national security, and I am immensely proud of the men and women who performed these operations to keep drugs like fentanyl from reaching our communities.” “The success of the Four Horsemen operation was due to the collaborative efforts and teamwork of multiple agencies. I am especially proud of the Yuma Sector Border Patrol agents who worked tirelessly during this operation to take deadly drugs off our streets and out of the communities we proudly serve,” said Chief Patrol Agent Yuma Sector Patricia McGurk-Daniel. A complaint or indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt. CASE NUMBERS: CR-23-00507-JCH; CR-23-00508-JGZ; CR-23-00574-JGZ; CR23-00689-SHR; CR-23-00594-MTL; CR-23-00690-JGZ; 23-08751MJ; 23-02741MJ; 23-01837MJ; CR-23-00596-PHX-JJT RELEASE NUMBER: 2023-074_Blue Lotus/Four Horsemen # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.


title: Waco Man Sentenced to 25 Years in Prison for Role in Drug Trafficking Operation

component: USAO - Texas, Western

body_text: DEL RIO, Texas – A Waco man was sentenced Tuesday in a federal court in Del Rio to 300 months in prison for conspiracy to possess with intent to distribute methamphetamine. According to court documents, Jimmie Troy Palmer III, 32, and other co-conspirators were arrested on Aug. 1, 2020, after one of the co-conspirators, Bibiana Ira Ortiz, attempted to enter the U.S. through the Del Rio Port of Entry with 16 packages of methamphetamine hidden in her vehicle. Lab tests revealed the combined net weight of the packages contained approximately 7,864 grams of methamphetamine with a purity of 98%. Palmer had escorted Ortiz to Piedras Negras, Mexico, where the methamphetamine was loaded into the vehicle Ortiz was driving. Palmer returned to the U.S. ahead of Ortiz, instructing her to call him upon her successful arrival in Del Rio. Homeland Security Investigations agents arrested Palmer and the other co-conspirators at the motel in Del Rio, where Ortiz was expected to rejoin them. Inside Palmer’s pickup truck, agents discovered drugs, drug paraphernalia, several cell phones, and approximately $9,869.06 in U.S. currency. Palmer has been in federal custody since his arrest and pleaded guilty in July 2021. Co-defendants Ortiz, Joshua Ruben Olivencia, and David Ray Coplin have each pleaded guilty and are awaiting sentencing. “The diligent efforts shown by both HSI and the U.S. Border Patrol in this case demonstrate their commitment to combating drug trafficking along our district’s border,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “This substantial penalty of 25 years in federal prison sends a very strong message that our judicial system does not tolerate the devastating impact illicit substances have on our communities. I am grateful to our dedicated law enforcement partners for their ongoing service in preserving the safety and well-being of our nation, and we will continue to fully prosecute these offenders.” “As drug traffickers prey on communities, they often ignore the laws of this nation. It’s great to have the cooperation of our federal partners to aid in the arrest and prosecution of these offenders,” said Acting Special Agent in Charge Craig Larrabee for HSI San Antonio. “Palmer’s lengthy prison sentence will be a deterrent to current and/or future drug traffickers. HSI will continue to pursue cross-border conspiracy investigations to target dangerous individuals who threaten the security of the United States.” HSI investigated the case. Assistant U.S. Attorney Rex Beasley prosecuted the case. ###


title: Lakeland Woman Sentenced for Student Loan Fraud

component: USAO - Tennessee, Western

body_text: Memphis, TN – Kelli L. Pollard, 56, of Lakeland, has been sentenced to federal prison for obtaining federally insured student loan funds. Kevin G. Ritz, United States Attorney for the Western District of Tennessee, announced the sentence today. According to United States Attorney Ritz and information presented in court, between 2017 and 2021, Pollard made false statements and submitted false and forged documents to the University of Memphis to qualify for $94,299 in student loans. United States District Judge Thomas L. Parker sentenced Pollard to one year and one day in federal prison to be followed by three years of supervised release. She was also ordered to pay restitution to the United States Department of Education. There is no parole in the federal system. The case was investigated by the United States Department of Education Office of Inspector General. United States Attorney Kevin Ritz thanked former Assistant United States Attorney Murre Foster and Assistant United States Attorney Carroll L. André III, who prosecuted this case, as well as law enforcement partners who investigated the case.


title: Willie Junior Maxwell II, also known as "Fetty Wap" Sentenced to 6 Years' Imprisonment for Drug Trafficking Conspiracy

component: USAO - New York, Eastern

body_text: Earlier today, in federal court in Central Islip, United States District Judge Joanna Seybert sentenced William Junior Maxwell II, who is the rap artist known as “Fetty Wap,” to six years’ imprisonment and five years of post-release supervision for conspiracy to distribute cocaine. On March 7, 2023, Judge Seybert sentenced Maxwell’s co-defendant Anthony Cyntje, a New Jersey correction officer, to 72 months’ imprisonment for his role in the drug trafficking conspiracy. Maxwell’s remaining four co-defendants pleaded guilty and are awaiting sentencing. Breon Peace, United States Attorney for the Eastern District of New York; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Raymond A. Tierney, District Attorney for Suffolk County; and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the sentence. According to court filings, from approximately June 2019 through June 2020, the defendants distributed more than 100 kilograms of cocaine, heroin, fentanyl and crack cocaine across Long Island and New Jersey. The defendants obtained the narcotics on the west coast and used the United States Postal Service and drivers with hidden vehicle compartments to transport the controlled substances across the country to Suffolk County, where they were stored. The drugs were then distributed to dealers, who sold them on Long Island and in New Jersey. Five of the defendants also used firearms to protect their drug organization and distribution chain. Defendants Anthony Leonardi, Robert Leonardi, Brian Sullivan, and Kavaughn Wiggins participated in the purchase and transportation of the narcotics from the west coast to the east coast where they were processed, stored and ultimately resold. Maxwell was a kilogram-level redistributor for the trafficking organization, and Cyntje transported kilograms of cocaine from Long Island to New Jersey. Search warrants executed during the investigation resulted in the recovery of approximately $1.5 million in cash, 16 kilograms of cocaine, 2 kilograms of heroin, numerous fentanyl pills, two 9mm handguns, a rifle, a .45 caliber pistol, a .40 caliber pistol, and ammunition. The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone and Andrew P. Wenzel, and Special Assistant United States Attorney Jacob T. Kubetz are in charge of the prosecution, with the assistance of Paralegal Specialist Samantha Schroder. The Defendants : ANTHONY CYNTJE Age: 25 Passaic, New Jersey ANTHONY LEONARDI Age: 49 Coram, Long Island ROBERT LEONARDI Age: 28 Levittown, Pennsylvania WILLIE JUNIOR MAXWELL II (also known as “Fetty Wap”) Age: 31 Paterson, New Jersey BRIAN SULLIVAN Age: 27 Lake Grove, Long Island KAVAUGHN L. WIGGINS (also known as “KV”) Age: 28 Coram, Long Island E.D.N.Y. Docket No. 21-CR-452 (JS)


title: Berkeley Resident Sentenced to Prison for Employment Tax Crimes

body_text: OAKLAND – Larry Kudsk was sentenced today to 12 months in prison for willfully failing to account for and pay over employment taxes announced U.S. Attorney Ismail J. Ramsey and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Darren Lian. The sentence was handed down by the Hon. Jeffrey S. White, U.S. District Judge. Kudsk, who resides in Berkeley, pleaded guilty to the charge on August 2, 2022. According to court documents, Kudsk operated two construction businesses, Kudsk Construction Inc. and M. Gutierrez Inc. These companies served as general contractors or subcontractors on various construction projects, including some government projects. For both companies, Kudsk was responsible for filing quarterly employment tax returns and collecting and paying to the IRS employment taxes withheld from employees’ wages. Kudsk, however, did not timely file employment tax returns nor pay over tax withholdings to the IRS, for M. Gutierrez, Inc. for the four quarters of 2014 and the last three quarters of 2015, and for Kudsk Construction Inc. for all for quarters of 2016. In all, Kudsk caused a tax loss to the IRS of more than $250,000. A federal grand jury indicted Kudsk on February 3, 2022, charging him with seven counts of willfully failing to pay over employment taxes, in violation of 26 U.S.C. § 7202. Kudsk pleaded guilty to one count. In addition to the term of imprisonment, U.S. District Judge Jeffrey S. White ordered Kudsk to serve three years of supervised release and to pay and $244,973 in restitution to the United States. Judge White ordered Kudsk to self-surrender on August 15, 2023, to begin his prison term. IRS-Criminal Investigation investigated the case. Assistant U.S. Attorney Katherine Lloyd-Lovett of the U.S. Attorney’s Office for the Northern District of California and Trial Attorney Julia M. Rugg and Charles A. O’Reilly of the Justice Department’s Tax Division prosecuted the case.


title: Dominican National Sentenced to 45 Months in Federal Prison for Trafficking Fentanyl and Heroin

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JEISSON AMARANTE-PEREZ, 30, of the Dominican Republic, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 45 months of imprisonment for trafficking fentanyl and heroin. According to court documents and statements made in court, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury Police Department into a Waterbury-based drug trafficking operation headed by Nestor Sosa-Ortiz. The investigation, which included the use of court-authorized wiretaps, physical surveillance, and controlled purchases of narcotics, revealed that Sosa-Ortiz’s organization received large quantities of fentanyl and heroin from suppliers in Connecticut and New York and distributed the narcotics through a network of co-conspirators, including Sanchez-Martinez. After Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge in May 2019, he continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators. The Sosa-Ortiz organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of fentanyl and heroin, and to process and package the drugs for street sale. On October 29, 2019, investigators arrested several members of the organization, executed search warrants at the Bishop Street apartment and four other locations, and seized approximately six kilograms of fentanyl and heroin, approximately 100,000 bags of fentanyl/heroin packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm, approximately $50,000 in cash, drug ledgers, and other items. As the investigation continued, it revealed that Jeisson Amarante-Perez and his brother, Jeffrey Amarante-Perez, served as an alternate source of drug supply to the Sosa-Ortiz organization, and that Edwin Rivas-Cruz was a drug courier for the Amarante-Perez brothers. Jeisson Amarante-Perez and Rivas-Cruz were intercepted over a wiretap coordinating narcotics transactions, and drug ledgers seized from the Sosa-Ortiz organization in October 2019 indicated drug debts to Jeffrey Amarante-Perez of more than $30,000. Jeisson Amarante-Perez has been detained since his arrest on April 11, 2022. On December 1, 2022, he pleaded guilty to conspiracy to possess with intent to distribute heroin and fentanyl. Jeffrey Amarante-Perez, Rivas-Cruz, and Sosa-Ortiz also pleaded guilty. Jeffrey Amarante-Perez was sentenced to 30 months of imprisonment, and Rivas-Cruz and Sosa-Ortiz await sentencing. This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Jocelyn Courtney Kaoutzanis 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 .