title: Greenwood Village Psychiatrist Pleads Guilty to Illegal Distribution of Controlled Substances and Financial Crimes

body_text: DENVER – The United States Attorney’s Office for the District of Colorado announces Howard Weiss, age 69, of Greenwood Village, pleaded guilty today to distributing a controlled substance outside the usual course of professional practice and for no legitimate medical purpose, structuring financial transactions in a way to evade reporting requirements, and engaging in monetary transactions greater than $10,000 in property derived from specified unlawful activity. He also agreed to forfeit $826,083.24 in criminal proceeds and to a community restitution payment of $150,000. The plea agreement filed in Court describes the defendant’s crimes. In 2016, the Drug Enforcement Administration (DEA) and the Internal Revenue Service (IRS) began an investigation into the defendant because of suspicious financial activity and concerning reports related to his patients’ sale of controlled substances and one patients’ poly-drug overdose death. Further investigation revealed that the defendant was prescribing methamphetamine to several adult patients. Methamphetamine — a highly addictive Schedule II drug — has FDA approval and can be prescribed in very special cases. But most psychiatrists will never prescribe it in the course of their careers. When investigators looked in more detail at prescribing records they discovered other concerning patterns. It is unusual to prescribe high-dose stimulants with high-dose sedatives because the drugs have competing effects. When these drugs are prescribed in concert, it is a good indication that the putative patient may be diverting one or both drugs rather than personally using them, or that one or both drugs are not medically necessary because of the competing effects of these drugs. Yet, the defendant routinely prescribed high-dose stimulants with high-dose sedatives. The defendant also regularly prescribed stimulants such as Adderall at the upper end of the usual dosing range and, sometimes, well beyond the upper end of the usual dosing range. In July 2017, one of the defendant’s patients was arrested when the patient showed up to a drug deal with 119 methamphetamine pills prescribed by the defendant. The defendant admitted in the plea agreement that he knew that his prescriptions to that patient were outside the usual course and did not have a legitimate medical purpose: the patient’s probation officer had previously contacted him to warn about the patient’s methamphetamine addiction. But he prescribed the methamphetamine anyway. As part of the plea, the defendant admitted to illegal banking activity. Federal regulations prohibit the “structuring” of financial transactions to thwart the requirement that banks file reports for currency deposits of more than $10,000. But between November 2015 and February 2018, the defendant made forty-five cash deposits are in excess of $9,000 but below the $10,000 threshold, which would require the bank to file a Currency Transaction Report (CTR). Bank tellers reported occasions in which the defendant would show up with a wad of cash, ask it to be counted, and then decline to deposit any amount more than $10,00. Finally, the defendant also admitted that he used the proceeds of his illegal prescribing to make large financial transactions of more than $10,000. Judge Daniel D. Domenico presided over the change of plea hearing on March 8, 2023. Sentencing is scheduled for June 6, 2023. This case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and the Drug Enforcement Administration (DEA) Denver Division. Assistant United States Attorneys Bryan Fields and Jena Neuscheler are handling the prosecution. Assistant United States Attorney Elizabeth Young is handling the parallel forfeiture action. CASE NUMBER: 21-cr-00233


title: Richland Man With Extensive Criminal History Sentenced to 12 Years in Prison After Shooting A Person and Conspiring To Distribute Fentanyl-Laced Pills in Tri-Cities

component: USAO - Washington, Eastern

body_text: Richland, Washington – On March 8, 2023, Senior United States District Judge Edward F. Shea sentenced Jonathan Scott Ard, 30, of Richland, Washington, to 12 years in in federal prison after his guilty plea to federal fentanyl and gun charges. Ard will also serve 5 years of federal supervision after he is released from custody. During the sentencing hearing, Judge Shea noted Ard’s long criminal record, which began when he was 14 years old and includes a significant history of crimes of violence. Judge Shea also expressed concern about the fact that Ard was under the supervision of the Washington Department of Corrections when he engaged in his current misconduct. According to information disclosed during court proceedings, the investigation began in December 2020 when Ard was in his car smoking a fentanyl-laced pill and in possession of distribution quantities of fentanyl and a loaded firearm. Another person approached Ard’s car, and Ard – acting in what a different court concluded was self-defense – got out of his car and shot the person in the leg. Ard then retrieved drug-related items from the car and went into his house; he neither alerted authorities nor sought emergency aid for the person he had just shot. To the contrary, he soon came back outside to retrieve more items from his car, and simply walked past his victim, who was laying on the ground after being shot by Ard. Ard then barricaded himself inside from law enforcement before eventually surrendering. When law enforcement officers searched Ard’s home, they recovered approximately 500 fentanyl-laced pills and the gun Ard had used in the shooting. Ard went into custody on state charges but continued to conspire with other people to distribute fentanyl from inside the jail. He was released from state custody and was arrested again after fleeing from law enforcement at a motel in Richland in March 2021. When he was arrested the second time, Ard had a loaded gun with him, along with another approximately 400 fentanyl-laced pills, a distribution quantity of heroin, and drug paraphernalia. Law enforcement officers searched Ard’s cellular telephone and recovered additional drug-related evidence and numerous pictures and social media posts by Ard idealizing his criminal lifestyle. Fentanyl is the new face of the opioid epidemic and the leading cause of overdose deaths across the country. According to DEA, in 2021 there was enough lethal fentanyl seized to kill every single American in the United States. Based on DEA lab confirmations, 6 in every 10 fentanyl laced pills contain a lethal dose. In Benton and Franklin Counties, the rate of overdose deaths increased to a high of 23 people per 100,000 in a year in 2020, or about 70 deaths in 2020, an increase in a year of more than 100%. Department of Health records from Spokane County show over an 186% increase in fentanyl-related overdoses between 2020 and 2021 and a 1233% increase in fentanyl-related overdoses in the four-year period between 2017 and 2021. Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, commended the joint efforts of law enforcement: “Drug distribution and gun violence are a scourge in the Tri-Cities and elsewhere. It is particularly disheartening that an offender with an extensive criminal history – who had already shot another person while in possession of distribution quantities of fentanyl – was released pending trial, only to continue possessing loaded firearms and additional fentanyl for distribution.” U.S. Attorney Waldref continued: “I commend the collaborative efforts of the Richland Police Department, DEA, FBI, and LEAD Task Force, who work together seamlessly to keep Eastern Washington safe and strong. The people in this community are also incredibly fortunate to be represented in federal court by Assistant United States Attorney Stephanie Van Marter, who spearheads federal drug prosecutions in the Tri-Cities and elsewhere.” “By leveraging our law enforcement partnerships, we were able to remove Mr. Ard from the community where he has repeatedly distributed deadly fentanyl-laced pills and presented significant danger to the community through his violent actions,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “Even incarceration did not deter Mr. Ard from conspiring to distribute fentanyl and continue a lifestyle of lawlessness,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Additionally, he’s an offender who has proven his willingness to use violence. For the safety of our community, I hope significant time in federal prison will prevent him from conducting other criminal activities and send a message about the commitment of the law enforcement community to fight violence. This case highlights the work of the FBI and our partners with the US Attorney’s Office, DEA, and Richland Police Department to stop the spread of fentanyl.” This case was investigated by the Richland Police Department, the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Law Enforcement Against Drugs Task Force in the Tri-Cities. This case was prosecuted by Assistant United States Attorney Stephanie Van Marter. 4:21-CR-6008-EFS


title: Narcotrafficker Pleads Guilty to International Cocaine Trafficking Conspiracy

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – March 8, 2023 SAN DIEGO – A narcotrafficker pleaded guilty today to international cocaine trafficking conspiracy. According to court documents, beginning in the 1980s through 2017, Raul Flores-Hernandez, aka El Tio, 70, led a drug-trafficking organization based in Mexico’s Jalisco State that trafficked cocaine from South America to Mexico for subsequent importation into the United States. He leveraged his business connections to coordinate the transportation of substantial quantities of cocaine from Colombia, Peru, and Bolivia to ports in Mexico, from which they were transported by land to and across the U.S. border. In July 2017, Mexican authorities arrested Flores-Hernandez at the request of the United States. He was extradited from Mexico to the United States in February 2021. Flores-Hernandez pleaded guilty to one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that it would be imported into the United States. He is scheduled to be sentenced on June 14 and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case. The DEA Los Angeles and San Diego Field Divisions, FBI Washington Field Office, and HSI San Diego Field Office are investigating the case. Customs and Border Protection in San Diego provided substantial assistance. The Justice Department thanks Mexican authorities for their assistance in securing the arrest and extradition of Flores-Hernandez. Assistant U.S. Attorney Kyle Martin for the Southern District of California, Acting Deputy Chief Katharine Wagner and Trial Attorney Melanie Alsworth of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance. DEFENDANT Case Number 17CR0051 (BAH) Raul Flores-Hernandez Age: 70 Guadalajara, MX SUMMARY OF CHARGES International Conspiracy to Distribute Controlled Substances – 21 U.S.C. §§ 959(a), 960(a)(3), 960(b)(1), and 963 Maximum penalty: Life in Prison and $10 million fine AGENCIES Homeland Security Investigations Drug Enforcement Administration Federal Bureau of Investigation Customs and Border Protection This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.


title: Union County Man Convicted of Multiple Armed Robberies and Firearms Offenses

component: USAO - New Jersey

body_text: NEWARK, N.J. – A Union County man was convicted today for participating in a multi-state armed robbery spree that spanned several months, U.S. Attorney Philip R. Sellinger announced. Vincent Chan-Guillen, 32, was convicted of conspiracy to commit Hobbs Act robbery, conspiracy to use and carry a firearm during a Hobbs Act robbery, three counts of Hobbs Act robbery, one count of attempted Hobbs Act robbery, three counts of brandishing a firearm during a Hobbs Act robbery, and unlawful possession of a firearm by a convicted felon. Chan-Guillen was convicted following a one-week trial before U.S. District Judge Stanley R. Chesler in Newark federal court. According to court documents and evidence presented at trial: Chan-Guillen committed nine armed robberies between August 2018 and November 2018, five of which occurred in New York, and four of which occurred in New Jersey. During each robbery, Chan-Guillen brandished a firearm, which he pointed at store employees and customers. The New Jersey robberies victimized liquor stores in Elizabeth, Woodbridge Township, Bloomfield, and Linden. Chan-Guillen faces a maximum potential penalty of 20 years on each count of Hobbs Act robbery and attempted Hobbs Act robbery; a maximum potential penalty of life in prison and a mandatory minimum penalty of seven years in prison on each count of brandishing a firearm during a Hobbs Act robbery, each of which must run consecutively to any other prison term. Each count also carries a potential $250,000 fine. U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s conviction. He also credited the Elizabeth, Rahway, Woodbridge, Bloomfield, Linden, Kenilworth, Union, and Lyndhurst police departments; the New Jersey State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division; and the New York Police Department for their assistance. The government is represented by Assistant U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney John F. Mezzanotte of the Office’s Organized Crime/Gangs Unit in Newark.


title: Department of Justice Announces Review of Memphis Police Department’s Use of Force and De-escalation Policies, and a Separate Review of Specialized Units Across the Country

component: Community Oriented Policing Services (COPS)

body_text: The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) announced today it will be undertaking two important reviews: one related to the Memphis Police Department (MPD) and one that will examine the use of specialized units within law enforcement. First, the COPS Office, through its Collaborative Reform Initiative Technical Assistance Center (CRI-TAC), will conduct a review of certain policies and practices of the Memphis Police Department. Memphis Mayor Jim Strickland and Memphis Police Chief Cerelyn J. Davis requested this review, which will cover policies, practices, training, data and processes related to MPD’s use of force, de-escalation and specialized units. At the conclusion of the review, the COPS Office will issue a public report outlining its findings and recommendations. The COPS Office’s CRI-TAC initiative is led and supported by nine leading law enforcement stakeholder associations. CRI-TAC provides a wide array of technical assistance services using a “by the field, for the field” approach. Since its inception in 2017, the program has provided technical assistance for over 800 law enforcement engagements. Separate from the Memphis review, the COPS Office will produce a guide for police chiefs and mayors across the country to help them assess the appropriateness of the use of specialized units as well as how to ensure necessary management and oversight of such units, including review of policies, tactics, training, supervision, accountability, and transparency. “In the wake of Tyre Nichols’s tragic death, the Justice Department has heard from police chiefs across the country who are assessing the use of specialized units and, where used, appropriate management, oversight and accountability for such units. The COPS Office guide on specialized units will be a critical resource for law enforcement, mayors and community members committed to effective community policing that respects the dignity of community members and keeps people safe,” said Associate Attorney General Vanita Gupta. “The department is also pleased to be able to fulfill Memphis’s request for technical assistance on the police department’s use of force and de-escalation policies, as well as the use of specialized units.” “Providing technical assistance to law enforcement agencies so they can continue to improve their practices, while they also develop and maintain healthy relationships with the community, is at the heart of what we do at the COPS Office,” said Director Hugh T. Clements Jr. of the COPS Office. “I know that this opportunity to work with MPD, as well as our examination of specialized units in law enforcement agencies across the country, will be important resources for both law enforcement and the communities they serve.” The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to over 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 136,000 officers.


title: Justice Department Achieves Settlement with the Former Dr. Juan A. Rivero Zoo to Relocate Animals to Locations in the Continental United States

component: Energy and Natural Resources Division

body_text: The Justice Department and the Commonwealth of Puerto Rico on behalf of the Puerto Rico Department of Justice and the Puerto Rico Department of Environment and Natural Resources (DENR) have reached an agreement to ensure the health and safety of the animals housed at the former Dr. Juan A. Rivero Zoo and the Centro de Detención en Cambalache (Cambalache). Under the agreement, the approximately 500 animals currently housed at the Zoo and Cambalache will be relocated within the next six months to facilities that are equipped and prepared to humanely and appropriately house and care for the animals. The Justice Department recently arranged, with the assistance and coordination of DENR, for experts from the Wild Animal Sanctuary to complete an inventory and evaluation of the conditions of the animals at the Zoo and Cambalache. Based on the information gathered during these evaluations, the Wild Animal Sanctuary is developing a plan for the transfer of all of the animals housed at the Zoo and at Cambalache to sanctuaries and other appropriate facilities in the continental United States. The Wild Animal Sanctuary operates four wildlife sanctuaries in Colorado and Texas, encompassing more than 33,000 acres, and will aid in relocating the animals from the Zoo and Cambalache to these and other facilities, as necessary and appropriate, to immediately address their pressing health and safety needs. As part of the joint efforts between federal and local agencies, the U.S. Fish and Wildlife Service has already removed a bald eagle, a golden eagle, two great horned owls, a red tail hawk, and two snakes. Additional transfers are expected in the upcoming weeks. “We recognize the cooperation of Secretary Anais Rodríguez Vega who has made a laudable commitment to improve the health and welfare of the animals at the Zoo and Cambalache by working alongside federal agencies to relocate them to locations throughout the United States,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “We will continue to support the efforts to expeditiously rescue all the animals according to the recommendations for relocation to be made by the veterinary experts brought to Puerto Rico by the Wild Animal Sanctuary.” “We deeply appreciate the work of the U.S. Attorney’s Office in collaboration with Puerto Rico environmental and justice authorities to facilitate the transfer of these animals to a destination where their health and safety needs can be met,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. Assistant U.S. Attorney Jonathan Gottfried for the District of Puerto Rico and Senior Trial Attorney Mary Hollingsworth and Trial Attorneys Kamela Caschette, Briena Strippoli and Matthew Morris of the Environment and Natural Resources Division are handling this matter. The Justice Department worked closely with the U.S. Fish and Wildlife Service and the Department of Agriculture’s Office of Inspector General and Investigative and Enforcement Services to achieve this successful resolution.


title: United States Settles With United Alloys And Steel Corporation For The Release Of Mercury In The Village Of Rye Brook

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator for the U.S. Environmental Protection Agency (“EPA”), Region 2, announced today that the United States has filed a civil lawsuit against UNITED ALLOYS AND STEEL CORPORATION (“Defendant”) and has simultaneously filed a consent decree settling the lawsuit. In the complaint, brought pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) – commonly known as the Superfund statute – the United States alleged that the Defendant arranged for the disposal or treatment of mercury by Port Refinery, Inc. (“Port Refinery”), a mercury refining business in the Village of Rye Brook, New York, which led to releases of mercury into the environment. The consent decree provides for a payment of $260,000 by the Defendant for costs incurred by EPA in conducting clean-up activities at the Port Refinery site (the “Site”). U.S. Attorney Damian Williams said: “United Alloys and Steel Corporation played a part in causing contamination in a residential community by delivering 17,253 pounds of scrap mercury for re-smelting purposes to Port Refinery, and it is paying a share of the costs that EPA had to incur to clean up this site. The parties responsible for this environmental contamination are now being held accountable.” EPA Regional Administrator Lisa F. Garcia said: “This company sent scrap mercury to the site operator, which handled mercury in a way that resulted in it being released into the environment and contaminating homes. Even relatively small amounts of mercury can cause serious health problems. EPA has addressed mercury vapors in people’s homes at the site, and now we are holding this company accountable for its part in putting people at risk.” As alleged in the complaint filed today in White Plains federal District Court: The Defendant arranged for Port Refinery’s treatment or disposal of scrap mercury at the Site. Port Refinery’s treatment and processing of mercury sent by the Defendant and other parties led to extensive releases of mercury into the environment, necessitating two separate clean-up actions by EPA. In connection with the second clean-up, EPA incurred costs at the Site for investigative and removal activities, including, among other things, excavating and disposing of more than 9,300 tons of mercury-contaminated soil from the Site. In the consent decree filed today, the Defendant admits and accepts responsibility for the following: EPA has determined that from the 1970s through the early 1990s, Port Refinery engaged in, among other things, the business of mercury reclaiming, refining, and processing; Port Refinery operated in the Village of Rye Brook out of a two-story garage bordered by private residences on its south, east, and west sides; EPA has determined that Port Refinery took virtually no environmental precautions or safety measures during its mercury refinement process; EPA has determined that Port Refinery released a significant amount of mercury into the environment, contaminating the Site; EPA has determined that mercury from the Defendants’ mercury-containing products was comingled at the Site and contributed to the mercury released into the environment; and United Alloys and Steel Corporation delivered 17,253 pounds of scrap mercury for re-smelting purposes to Port Refinery during its period of operations. * * * Pursuant to the consent decree, the Defendant will pay a total of $260,000 in costs incurred by EPA. The payment amount was based on the Defendant’s documented inability to pay its full share of the costs incurred. This lawsuit is the United States’ eighth lawsuit against responsible parties to recover clean-up costs for the second clean-up at the Site. With this settlement, the United States has recovered a total of $3,079,392 from responsible parties. The consent decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval to provide public notice and to afford members of the public the opportunity to comment on the consent decree. Mr. Williams thanked the assigned EPA Region 2 Assistant Regional Counsel for his critical work on this matter. This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Anthony J. Sun is in charge of the case.


title: Justice Department Finds Civil Rights Violations by the Louisville Metro Police Department and Louisville/Jefferson County Metro Government

component: Civil Rights Division

body_text: Following a comprehensive investigation, the Justice Department announced today that the Louisville Metro Police Department (LMPD) and the Louisville/Jefferson County Metro Government (Louisville Metro) engage in a pattern or practice of conduct that violates the U.S. Constitution and federal law. The Department also announced that it has entered into an agreement in principle with Louisville Metro and LMPD, which have committed to resolving the department’s findings through a court-enforceable consent decree with an independent monitor, rather than contested litigation. Specifically, the Justice Department finds that LMPD: Uses excessive force, including unjustified neck restraints and the unreasonable use of police dogs and tasers; Conducts searches based on invalid warrants; Unlawfully executes search warrants without knocking and announcing; Unlawfully stops, searches, detains, and arrests people during street enforcement activities, including traffic and pedestrian stops; Unlawfully discriminates against Black people in its enforcement activities; Violates the rights of people engaged in protected free speech critical of policing; and Along with Louisville Metro, discriminates against people with behavioral health disabilities when responding to them in crisis. The Department also identified deficiencies in LMPD’s response to and investigation of domestic violence and sexual assault, including its responses to allegations that LMPD officers engaged in sexual misconduct or domestic violence. Deficiencies in policies, training, supervision, and accountability contribute to LMPD and Louisville Metro’s unlawful conduct. “The Justice Department has concluded that there is reasonable cause to believe that Louisville Metro and LMPD engage in a pattern or practice of conduct that violates the constitutional rights of the residents of Louisville — including by using excessive force, unlawfully discriminating against Black people, conducting searches based on invalid warrants, and violating the rights of those engaged in protected speech critical of policing,” said Attorney General Merrick B. Garland. “This unacceptable and unconstitutional conduct erodes the community trust necessary for effective policing. It is also an affront to the vast majority of officers who put their lives on the line to serve Louisville with honor. And it is an affront to the people of Louisville who deserve better. The Justice Department will work closely with Louisville Metro and LMPD to negotiate toward a consent decree and durable reforms that protect both the safety and civil rights of Louisville’s residents.” “The findings are deeply troubling and sobering, and they compromise LMPD’s ability to serve and protect the people of Louisville,” said Associate Attorney General Vanita Gupta. “We are committed to working with Louisville on a path forward to constitutional policing and stronger police-community trust. Although police reform won’t happen overnight, focused effort and sustained commitment will bring us closer to transformed relationships, safe communities, and this nation’s promise of justice and equality under the law.” “People in Louisville deserve policing that is constitutional, fair and non-discriminatory,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “Our investigation found that the police department and city government failed to adequately protect and serve the people of Louisville, breached the public’s trust, and discriminated against Black people through unjustified stops, searches, and arrests. The police used excessive force, subjecting people to unlawful strikes, tasings, and canine bites. The police sought search warrants without justification and carried out no-knock warrants unlawfully, evading the constitution, defying federal law, and putting ordinary citizens in harm’s way. Today marks a new day and a new chapter for the people of Louisville.” LMPD and Louisville Metro cooperated fully with the department’s investigation. The Justice Department provided a comprehensive, written report of its investigative findings to Louisville Metro and LMPD. The report acknowledges the changes already made by Louisville Metro and LMPD, and it identifies additional remedial measures that the department believes are necessary to fully address its findings. The Department of Justice opened this investigation on April 26, 2021. The investigation was conducted by career attorneys and staff in the Civil Rights Division and the U.S. Attorney’s Office for the Western District of Kentucky. The investigation included numerous onsite tours; interviews of LMPD officers, supervisors, and command staff; ride-alongs; review of thousands of documents; and review of thousands of hours of body-worn camera footage. Department attorneys and staff also met with community members, advocates, service providers, and other stakeholders in the Louisville Metro area. The department conducted this investigation pursuant to the 34 U.S.C. § 12601 (Section 12601), which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law, the Safe Streets Act of 1968, Title VI of the Civil Rights Act of 1964, and Title II of the Americans with Disabilities Act. The findings announced today are the result of the department’s civil pattern or practice investigation and are separate from the department’s criminal cases against former LMPD officers for federal crimes related to the tragic death of Breonna Taylor. These findings are also separate from the department’s ongoing investigation into the Commonwealth of Kentucky under the Americans with Disabilities Act. Additional information can be found at: www.justice.gov/opa/pr/justice-department-launches-civil-rights-investigation-kentucky-s-mental-health-service-0 . The department will be conducting outreach to members of the Louisville community for their views on remedies to address the department’s findings. Individuals may also submit recommendations by email at Community.Louisville@usdoj.gov or by phone at 1-844-920-1460. This is one of eight investigations into law enforcement agencies opened by the Justice Department’s Civil Rights Division under Section 12601 during this Administration. The department has ongoing investigations into the Minneapolis Police Department; the Phoenix Police Department; the Mount Vernon (NY) Police Department; the Louisiana State Police; the New York City Police Department’s Special Victims Division; the Worcester (MA) Police Department; and the Oklahoma City Police Department. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt . Additional information about the U.S. Attorney’s Office for the Western District of Kentucky is available at www.justice.gov/usao-wdky . Information specific to the Civil Rights Division’s police reform work can be found here: www.justice.gov/crt/file/922421/download . The Justice Department will hold a virtual community meeting at 7:00 p.m. ET. Members of the public are encouraged to attend to learn more about the findings. Please join the meeting via this link www.zoomgov.com/webinar/register/WN_pmezYy52QZusNmr_nLPRAA .


title: Detroit-area Mortgage Broker Charged with  Conspiring to Defraud the IRS and Filing False Tax Returns

component: Tax Division

body_text: A federal grand jury in Detroit returned an indictment yesterday charging a Michigan man with conspiring to defraud the United States and filing false income tax returns. According to the indictment, from 2012 to 2018, Todd A. Marra of Shelby Township was a fifty-percent shareholder and co-managing partner of a mortgage brokerage in Troy, Michigan. During that time, Marra and another individual allegedly conspired to defraud the IRS by diverting more than $1.6 million in business proceeds. The indictment alleges that Marra and his coconspirator withdrew cash shortly after depositing checks into the business’s bank account and did not record all deposits and withdrawals on the business’s books and records. Marra and his coconspirator allegedly used these business proceeds to pay for personal expenses and debts and then provided false records to their return preparer that underreported gross receipts and concealed the diversion of funds. The indictment alleges that their actions caused the filing of false partnership returns that substantially underreported the business’s gross receipts and overreported expenses, and also caused the filing of false personal income tax returns that substantially underreported Marra’s income. If convicted, he faces a maximum penalty of five years in prison for the conspiracy count and a maximum penalty of three years in prison for each false tax return count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. IRS-Criminal Investigation is investigating the case. Assistant Chief Jorge Almonte and Trial Attorney Catriona M. Coppler of the Justice Department’s Tax Division are prosecuting the case. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Doctor Licensed in the District of Columbia and Virginia  Sentenced For Illegally Distributing Controlled Substances

component: Federal Bureau of Investigation (FBI)

body_text: Case Filed Following Overdose Death of Man in Virginia Last Year WASHINGTON – Dr. Robert M. Cao, 39, of Lafayette, Louisiana, and previously of Falls Church, Virginia, was sentenced yesterday in the U.S. District Court for the District of Columbia to 15 months in prison for five felony counts of unlawful distribution of a controlled substance outside the scope of his professional practice. Cao pleaded guilty on November 8, 2022 to prescribing various narcotic pain medications in the months and days leading up to an overdose death in Virginia. The sentence was announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Wayne A. Jacobs of the FBI’s Washington Field Office Criminal and Cyber Division, and Chief Kevin Davis, of the Fairfax County, Virginia Police Department. In addition to the prison term, U.S. District Court Judge Tanya S. Chutkan ordered 36 months of supervised release, 100 hours of community service, and ordered that he not hold a job that would give him access to controlled substances. According to court documents, Cao was licensed to practice medicine in the District of Columbia and Virginia. On at least five occasions in 2021, he knowingly and intentionally wrote prescriptions for oxycodone and hydrocodone for a man identified as “V.C.” These Schedule II controlled substances have a high potential for abuse. Cao provided the narcotic prescriptions to the victim without having any doctor-patient relationship with him, without any physical examination, diagnosis, or treatment plan, and knowing that the victim had no medical condition that would necessitate such prescriptions. On May 31, 2021, first responders were dispatched to a Fairfax, Virginia residence in response to a 911 call for assistance regarding “V.C.,” after his girlfriend found him cold and non-responsive. He was pronounced deceased under suspicious circumstances. A subsequent autopsy report documented the cause of death as acute combined oxycodone and ethanol poisoning. On the nightstand next to where “V.C.” was found were prescription bottles, including one containing Percocet (a brand name of the narcotic analgesic oxycodone/acetaminophen) pills filled on May 23, 2021. Cao was the prescribing doctor listed on the bottle. Court filings also detail text message exchanges between Cao and “V.C.,” including discussions about Cao prescribing narcotic pain medications to “V.C.” in exchange for agreeing to give Cao a kickback of some of the pills he had prescribed, and meetings between the two, including a meeting in a parking lot on the night before the man’s death so Cao could get a portion of the narcotic pills from “V.C.” “It’s outrageous that someone who had a duty to ‘do no harm’ would turn around and prescribe a medically unnecessary, dangerous drug,” said U.S. Attorney Graves. “People in our country are dying by the thousands from drug overdoses. The defendant was better positioned than most people to know the potential consequences of illegal distribution, yet he nevertheless decided to unlawfully prescribe a drug, regardless of the life-threatening consequences." "Medical professionals take an oath to do no harm to their patients and public, but in this case, Robert Cao wrote unnecessary prescriptions for highly addictive narcotics,” said Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office's Criminal and Cyber Division. “As demonstrated by this investigation, the risks presented by opioid diversion outside of proper clinical practice are such that even a few illicit prescriptions can prove fatal. Along with our partners, we will continue our mission of bringing those who disregard patient safety and well-being by operating such criminal schemes to justice.” As detailed in court documents, Cao took several steps to avoid detection from law enforcement and regulatory authorities. For example, he advised the victim not to create a paper trail, and to fill the prescriptions at times when they were least likely to be questioned by pharmacies. Cao also hid the pad that he used to write the man prescriptions, which Cao took from a District of Columbia cosmetic office where he previously worked, at his home inside a hollowed-out container made to look like a diary. After learning of the victim’s untimely death, Cao created fraudulent backdated medical records to make it appear that Cao had provided legitimate prescriptions to the victim as part of a lawful doctor-patient relationship. This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department. The case was prosecuted by Assistant U.S. Attorneys Anne P. McNamara and Christine Macey of the U.S. Attorney’s Office for the District of Columbia.


title: United States Obtains Warrant for Seizure of Airplane Owned by Russian Oil Company Valued at More Than $25 Million

component: Criminal Division

body_text: The United States today announced the unsealing of a warrant for the seizure of a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia, headed by Igor Ivanovich Sechin. The U.S. District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia. According to court documents, in response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals. In this case, these sanctions bar a plane that was built or manufactured in the United States from entering Russia without a valid license. Specifically, since February 2022, when the export controls that bar the United States-built plane’s re-entry to Russia went into effect, the plane has left and reentered Russia at least seven times, in violation of federal law. The Boeing jet, which was manufactured in the United States, was last in the United States in March 2014, and is currently believed to be in, or traveling to or from, Russia. Rosneft – which is headed by Igor Ivanovich Sechin – owns the Boeing aircraft. The Boeing was flown from a foreign country to Russia in violation of the ECRA and regulations issued thereunder, including the Russia sanctions. The Boeing (pictured below) is believed to be worth approximately $25 million. The United States today announced the unsealing of a warrant for the seizure of a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia, headed by Igor Ivanovich Sechin. The U.S. District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia. According to court documents, in response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals. The FBI and Department of Commerce are investigating the seizure matter. The Justice Department’s Office of International Affairs provided valuable assistance. The government’s case is being investigated by the Eastern District of New York’s International Narcotics and Money Laundering Section and the Criminal Division’s Money Laundering and Asset Recovery Section. Assistant U.S. Attorney Francisco J. Navarro, Tara B. McGrath and Madeline M. O’Connor, and Trial Attorney Barbara Levy are leading the seizure matter. The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression. The burden to prove forfeitability in a forfeiture proceeding is upon the government.


title: Laurence Doud, Former CEO Of Pharmaceutical Distributor, Sentenced To 27 Months In Prison For Conspiring To Unlawfully Distribute Controlled Substances And Defrauding The DEA

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that LAURENCE F. DOUD III, the former Chief Executive Officer of Rochester Drug Co-Operative, Inc. (“RDC”), was sentenced today in Manhattan federal court to 27 months in prison for conspiring to unlawfully distribute oxycodone and fentanyl and conspiring to defraud the Drug Enforcement Administration (“DEA”). DOUD was sentenced today by United States District Judge George B. Daniels after being convicted at trial in February 2022. U.S. Attorney Damian Williams said: “Laurence Doud cared more about his own paycheck than his responsibility as CEO of RDC to prevent dangerous opioids from making their way to pharmacies, drug dealers, and people struggling with addiction. The sentence imposed today holds Doud responsible for shipping massive amounts of dangerous and highly addictive oxycodone and fentanyl to pharmacies that he knew were illegally dispensing those controlled substances and reaffirms this Office’s commitment to seeking justice for the many victims of the opioid epidemic.” According to the Indictment and the evidence at trial: Violations of the Federal Narcotics Laws From 2012 through March 2017, DOUD knowingly and intentionally violated the federal narcotics laws by distributing, through RDC, dangerous, highly addictive opioids to pharmacy customers that he knew were being sold and used illicitly. At the direction of its senior management, including DOUD, RDC supplied large quantities of oxycodone, fentanyl, and other dangerous opioids to pharmacy customers that its own compliance personnel determined were dispensing those drugs to individuals who had no legitimate medical need for them. RDC, at the direction of DOUD and others, distributed controlled substances to those pharmacies even after identifying “red flags” of diversion, including dispensing highly abused controlled substances in large quantities; dispensing primarily controlled substances; dispensing quantities of controlled substances in amounts consistently higher than accepted medical standards; accepting a high percentage of cash for controlled substance prescriptions; dispensing to out-of-state patients; and filling controlled substances prescriptions issued by practitioners acting outside the scope of their medical practice, under investigation by law enforcement, or on RDC’s “watch list.” In addition, and at DOUD’s direction, RDC frequently brought on pharmacy customers that had been terminated by other distributors. Conspiracy to Defraud the DEA From 2012 through March 2017, DOUD took steps to conceal RDC’s illicit distribution of controlled substances from the DEA and other law enforcement authorities. Among other things, DOUD made the deliberate decision not to investigate, monitor, or report to the DEA pharmacy customers that DOUD and others at RDC knew were diverting controlled substances for illegitimate use. Because they knew that reporting these pharmacies would likely result in the DEA investigating and shutting down RDC’s customers, RDC’s senior management, including DOUD, directed the company’s compliance department not to report them and instead to continue supplying those customers with dangerous controlled substances that the company knew were being dispensed and used for illicit purposes. Among other things, pursuant to DOUD’s instructions, and contrary to the company’s representations to the DEA, RDC opened new customer accounts without conducting due diligence and supplied those customers – some of whom had been terminated by other distributors – with dangerous controlled substances. Additionally, DOUD caused RDC to avoid filing suspicious order reports with the DEA as required by law. As a result, the DEA’s ability to identify and prevent the illicit dispensing of highly addictive controlled substances by several of RDC’s pharmacy customers was impeded. * * * In addition to his prison term, LAURENCE F. DOUD III, 79, of Port Orange, Florida, was sentenced to three years of supervised release and ordered to pay a $100,000 fine. Mr. Williams praised the outstanding investigative work of the DEA’s Westchester Tactical Diversion Team and thanked Special Agents of United States Attorney’s Office for their assistance. The prosecution of this case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Thomas Burnett, Nicolas Roos, and Alexandra Rothman are in charge of the prosecution and represented the Government at trial. Assistant U.S. Attorney Louis Pellegrino also participated in the investigation into RDC and DOUD.


title: Eleventh Defendant Sentenced in $15 Million Scheme to Defraud Thousands of Spanish-Speaking United States Immigrants

component: Civil Division

body_text: A California man was sentenced to 65 months in prison for his role in conspiring with Peruvian-based call centers that defrauded Spanish-speaking United States residents by falsely threatening them with arrest, deportation, and other legal consequences. He is the eleventh defendant to be sentenced to prison in the scheme. According to court documents, Luis Rendon, 60, of Harbor City, California, operated a distribution center that helped the call center operators execute their fraud scheme from Peru. He was part of a $15 million transnational fraud scheme aimed at defrauding Spanish-speaking residents of the United States by fraudulently threatening them with legal consequences if they did not pay for English-language learning products (products that the victims had never requested) or pay bogus “settlement fees.” More than 30,000 Spanish-speaking residents of the United States were defrauded. “These cases demonstrate that the Consumer Protection Branch will vigorously pursue and prosecute transnational criminals who defraud vulnerable U.S. consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Individuals who defraud members of our immigrant communities will be brought to justice and held accountable in U.S. courts.” “The U.S. Postal Inspection Service works assiduously to disrupt and dismantle criminal enterprises targeting U.S. consumers,” said Juan A. Vargas, Inspector in Charge, U.S. Postal Inspection Service Miami Division. “Together with our law enforcement partners, we are sending a clear message to the criminals who think they are safe because they are not located in the U.S.: We will continue to aggressively pursue, arrest, and extradite those that aim to defraud U.S. consumers.” According to court documents, Rendon owned and operated International Latin Market, a California-based distribution center that facilitated the large-scale telemarketing fraud and extortion scheme from 2011 until late 2017. Rendon aided and abetted the scheme by providing lists of prospective victims to the call centers in Peru, processing card payments from victims, and sending low-quality computer tablets pre-loaded with English language courses to victims in the Miami area and across the United States. The call centers then threatened and harassed victims to pay for the fraudulent classes, pretending to be lawyers and law enforcement officials. With today’s sentencing, seven Peruvian call center owner-operators and four distribution center operators who processed payments and facilitated the fraud in the United States have now been sentenced. The seven call center owner-operator defendants were extradited from Peru and pleaded guilty in federal court to conspiracy to commit mail and wire fraud and received significant prison sentences. U.S. District Judge Robert N. Scola, Jr. sentenced Henrry Milla, Carlos Espinoza, Jerson Renteria, Fernan Huerta, Omar Cuzcano, Evelyng Milla, and Josmell Espinoza to sentences ranging from 88 months to 110 months in prison. Two defendants who facilitated the operations of these fraudulent call centers, Milagros Urmeneta and Gonzalo Bazan, were sentenced in a related matter last year. Angel Adrianzen, who similarly operated a U.S.-based distribution center that facilitated an additional group of fraudulent Peruvian call centers that defrauded Spanish-speaking residents in the United States, was sentenced to 121 months in prison by Judge Scola in 2021. The U.S. Postal Inspection Service and the Consumer Protection Branch investigated the case. Senior Trial Attorney Phil Toomajian and Trial Attorney Max Goldman of the Consumer Protection Branch are prosecuting the cases, and Assistant United States Attorney Annika Miranda is handling asset forfeiture. The Federal Trade Commission, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the State Department’s Diplomatic Security Service and the Peruvian National Police provided critical assistance. The Department of Justice continues to investigate and bring charges in other similar matters involving threats against Spanish-speaking residents of the United States. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). Additional information about the Consumer Protection Branch and its fraud enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch .


title: Onceavo acusado sentenciado por estafar a miles de inmigrantes estadounidenses de habla hispana en un esquema de $15 millones de dólares

body_text: Un hombre de California fue sentenciado a 65 meses de prisión por su papel en la conspiración en centros de llamadas con sede en Perú que defraudaron a residentes estadounidenses de habla hispana, que los amenazaba falsamente con arresto, deportación y otras consecuencias legales. Es el onceavo acusado en ser sentenciado a prisión en el esquema. De acuerdo con documentos judiciales, Luis Rendón, 60, de Harbor City, California, operaba en un centro de distribución que ayudaba a operadores del centro de llamadas a ejecutar un esquema de fraude desde Perú. Formaba parte de un esquema de fraude internacional centrado en defraudar residentes de habla hispana en Estados Unidos amenazándolos fraudulentamente con consecuencias legales si no pagaban productos de aprendizaje del idioma inglés (productos que las víctimas nunca solicitaron) o si no pagaban “tarifas de liquidación” falsas. Defraudaron a más de 30,000 residentes de habla hispana de Estados Unidos. “Estos casos demuestran que la Rama de Protección al Consumidor perseguirá enérgicamente y procesará a los delincuentes internacionales que defraudan a los consumidores estadounidenses vulnerables”, dijo el Fiscal General Principal Adjunto, General Brian M. Boynton, jefe de la División Civil del Departamento de Justicia. “Las personas que defraudan a miembros de nuestras comunidades de inmigrantes se presentarán ante la justicia y rendirán cuentas ante los tribunales estadounidenses”. “El Servicio de Inspección Postal de Estados Unidos trabaja arduamente para interrumpir y desmantelar las empresas delictivas dirigidas a los consumidores estadounidenses”, dijo Juan A. Vargas, Inspector a Cargo, División del Servicio de Inspección de Estados Unidos en Miami. “Junto con nuestros socios encargados de que se cumpla la ley, estamos enviando un claro mensaje a los delincuentes que crean que están a salvo porque no se encuentran en Estados Unidos: Continuaremos persiguiendo, arrestando y extraditando firmemente a quienes estén centrados en defraudar a los consumidores estadounidenses”. Según documentos judiciales, Rendón era dueño y operaba International Latin Market, un centro de distribución con sede en California que facilitó el esquema de extorsión y fraude de telemercadeo a gran escala desde el 2011 hasta finales del 2017. Rendón ayudó y fue cómplice del esquema al proporcionar listas de posibles víctimas a los centros de llamadas en Perú, procesó pagos de tarjetas a las víctimas y envió tabletas con cursos de inglés precargados a las víctimas en el área de Miami y en todo Estados Unidos. Los centros de llamadas luego amenazaban y hostigaban a las víctimas para que pagaran clases fraudulentas, pretendiendo ser abogados y agentes del orden. Con la sentencia de hoy, ya fueron sentenciados siete operadores y propietarios de centros de llamadas peruanos y cuatro operadores de centros de distribución que procesaron pagos y facilitaron el frauden en Estados Unidos. Los siete acusados, propietarios y operadores del centro de llamadas fueron extraditados de Perú y se declararon culpables de conspiración para cometer fraude postal y electrónico en un tribunal federal y recibieron importantes sentencias a prisión. El Juez Federal de Distrito, Robert N. Scola Jr., condenó a Henrry Milla, Carlos Espinoza, Jerson Rentería, Fernán Huerta, Omar Cuzcano, Evelyng Milla y Josmell Espinoza a sentencias que van de 88 a 110 meses en prisión. Dos acusados que facilitaron las operaciones de estos centros de llamadas fraudulentos, Milagros Urmeneta y Gonzalo Bazán, fueron sentenciados el año pasado por un asunto relacionado. Ángel Adrianzen, quien también operaba un centro de distribución con sede en Estados Unidos que facilitó un grupo adicional de centros de llamadas peruanos fraudulentos que estafaron a residentes de habla hispana en Estados Unidos, fue sentenciado a 121 meses en prisión por el Juez Scola en 2021. El Servicio de Inspección Postal de Estados Unidos y la Rama de Protección al Consumidor investigaron el caso. El Abogado Superior Litigante, Phil Toomajian, y el Abogado Litigante, Max Goldman, de la Rama de Protección al Consumidor, están procesando los casos y la Fiscal Federal Adjunta, Annika Miranda, se encarga del decomiso de bienes. La Comisión Federal de Comercio, la Oficina de Asuntos Internacionales del Departamento de Justicia, la Oficina del Fiscal Federal del Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado y la Policía Nacional de Perú proporcionaron asistencia crítica. El Departamento de Justicia continúa investigando y presentando cargos en otros asuntos similares relacionados con amenazas contra residentes de habla hispana en Estados Unidos. Si usted, o alguien que conoce, tiene 60 años o más y fue víctima de fraude financiero, tiene ayuda disponible en la Línea Directa Nacional de Fraude a Ancianos: 1-833-FRAUD-11 (1-833-372-8311). Puede encontrar información adicional sobre la Rama de Protección al Consumidor y sus esfuerzos para combatir el fraude en www.justice.gov/civil/consumer-protection-branch .


title: Southfield Resident Sentenced To 7 Years For Role In Illegally Distributing Over 90,000 Opioid Doses At A Medical Clinic

component: USAO - Michigan, Eastern

body_text: DETROIT – A Southfield, Michigan man was sentenced today to seven years in federal prison for his role in distributing over 90,000 doses of Oxycontin, Percocet, and other opioids out of an area medical clinic, announced United States Attorney Dawn N. Ison. Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division, and Special Agent in Charge Mario Pinto of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Chicago Regional Office. Lavar Carter, 45, was sentenced by United States District Judge Bernard A. Friedman. Carter initially became involved in the scheme as a patient recruiter where he used family members and people he encountered at soup kitchens to obtain information that was used to fill medically unnecessary opioid prescriptions. Carter eventually became employed at New Vision Rehab Center where he provided physicians with lists of patient names and identification that he knew were used to issue and fill medically unnecessary prescriptions. Carter and others exchanged the prescriptions for cash. Carter participated in the conspiracy between May 2019 and June 2020. According to court records, Carter’s conduct was made even worse because, while released on bond in this case, he was surveilled by law enforcement agents working at another pain clinic to assist in the illegal distribution of more opioids. U.S. Attorney Ison stated, “The devastation created by the opioid crisis harms our entire country. My office will zealously pursue medical providers, clinic staff, and others who inflict harm upon our community through illicit distribution of these powerful drugs.” “The illegal distribution of opioids continues to have devastating effects on our community,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The sentencing of Lavar Carter highlights how a partnership between the FBI, DEA, and HHS leads to the successful prosecution of individuals who seek to profit off the addiction of others.” “Profiting from the suffering of vulnerable populations will not be tolerated. Mr. Carter’s scheme of illegally funneling prescription pills into communities and fueling overdose deaths in exchange for profits has come to an end. I want to thank our law enforcement partners who worked collectively on this investigation,” stated Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division. “Facilitating the unlawful administration of prescription opioids, and other controlled substances, places beneficiaries of our federal health care programs at risk,” said Mario M. Pinto, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General. “We will continue to work with our law enforcement partners to pursue those who defraud our federal health care programs and engage in other unlawful conduct that can bring harm on our nation’s beneficiaries.” This case was prosecuted by Assistant United States Attorneys Regina R. McCullough and Philip A. Ross as part of the district’s efforts to address the nation’s opioid crisis. The Eastern District of Michigan is one of twelve districts included in the Attorney General’s Opioid Fraud Abuse and Detection initiative. The case was investigated by special agents of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the U.S. Department of Health and Human Services, Office of Inspector General.


title: Former Claims Examiner for Michigan Unemployment Agency  Pleads Guilty In COVID-19 Fraud Scheme

body_text: DETROIT – A former unemployment examiner for the Michigan Unemployment Insurance Agency (MUIA) pleaded guilty today to conspiring to steal federal unemployment insurance benefits during the Covid-19 pandemic, United States Attorney Dawn N. Ison announced today. Ison was joined in the announcement by Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General, and Acting Special Agent in Charge Charles Miller, Internal Revenue Service, Criminal Investigation Division in Detroit. According to court documents, Semaje Reffigee, 26, of Detroit, began working as a contract unemployment insurance examiner with the MUIA in October 2020. In this position, she had electronic access to the MUIA claims database. Reffigee was able to use her credentials to access and approve specific fraudulent unemployment insurance claims submitted to the agency, including claims outside her assigned workflow. Court documents indicate that shortly after she began her contract employment with MUIA, Reffigee entered into an agreement with various individuals to defraud the MUIA by obtaining unemployment benefits through the submission of false claims. Reffigee’s co-conspirators would electronically submit fraudulent claims to MUIA in the names of various individuals, some of whom would be victims of identity theft and some of whom were entirely fictitious people. These co-conspirators made false statements in the applications attesting to the eligibility of these purported claimants and would upload fictitious documentation to support those fraudulent claims. The co-conspirators would then communicate with Reffigee, either directly or through intermediaries, and identify the claims that they had submitted. Reffigee would then use her insider access to the MUIA system to approve the claims and release benefits. Most of the time, benefits would be electronically loaded onto Bank of America debit cards and mailed to addresses controlled by Reffigee’s co-conspirators. Reffigee was often paid a “kickback” for her services, typically receiving a few hundred dollars per claim. Reffigee herself also unlawfully received approximately $9,000 in unemployment insurance benefits during the course of her employment with MUIA. U.S. Attorney Ison stated, “This case reflects our ongoing commitment to prosecute those who took advantage of the Covid-19 pandemic by stealing funds intended for those in need. We treat this kind of fraud especially seriously because corruption within these programs undermines trust and confidence in government programs generally.” “Semaje Reffigee was a state contract employee who was trusted to handle sensitive employment information. She abused her position for personal gain by using her access to state data systems to approve fraudulent UI claims submitted by her co-conspirators. Many of the fraudulent claims used the personally identifiable information of identity theft victims. Protecting the integrity of the unemployment insurance program remains one of our highest priorities. We will continue to work with our law enforcement partners to safeguard unemployment benefits for those who need them and to bring to justice those who commit unemployment insurance fraud,” said Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General. “Semaje Reffigee was entrusted to work for the State of Michigan. She, along with her co-conspirators, devised a scheme to steal money that was intended to provide financial assistance to those in need during the COVID-19 pandemic,” said Charles Miller Acting Special Agent in Charge, IRS-Criminal Investigation Detroit Field Office. “IRS-CI is proud to work with our law enforcement partners as we continue the pursuit of criminals who steal from the American taxpayer.” Reffigee pleaded guilty before U.S. District Judge Matthew F. Leitman. She is scheduled to be sentenced on July 13, 2023. She faces a maximum of twenty years in prison, and a fine of up to $250,000. Per the terms of her plea agreement, Reffigee will also be required to repay $313,497 in restitution to the State of Michigan. The case is being prosecuted by Assistant U.S. Attorneys Ryan A. Particka and Sarah Youngblood. This investigation is being conducted jointly by the U.S. Department of Labor Office of the Inspector General and the Internal Revenue Service Criminal Investigation, with assistance from the Michigan Unemployment Insurance Agency.


title: Former United States Congressional Candidate Pleads Guilty in Conduit Campaign Contribution Case

component: Criminal - Public Integrity Section

body_text: WASHINGTON – A former primary candidate for the U.S. House of Representatives pleaded guilty today to violating the Federal Election Campaign Act (FECA) by accepting a conduit campaign contribution. According to court documents, Lynda Bennett, 65, of Maggie Valley, North Carolina, was a primary candidate for North Carolina’s 11th Congressional District in 2020. In late December 2019, Bennett borrowed $25,000 from a family member, representing that she needed the money for personal expenses because she had to spend a large amount of her own money on her campaign. The day after depositing the loaned money into a personal account, Bennett then caused $80,000, including the $25,000 in loaned money, to be transferred to the bank account of Lynda Bennett for Congress (“LBC”), her authorized federal campaign committee. Under the FECA, Bennett was required to report a loan from a third-party individual as a campaign contribution. Bennett knowingly and willfully violated the FECA by reporting through LBC that the full $80,000 was a loan to her campaign using her own personal funds, rather than disclosing that $25,000 of that amount was a loan from another individual. Bennett pleaded guilty to one count of accepting contributions in the name of another. She is scheduled to be sentenced on June 20, 2023 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Matthew M. Graves for the District of Columbia; and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement. The FBI Washington Field Office is investigating the case. Trial Attorney Ryan R. Crosswell of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Joshua S. Rothstein of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. Former Assistant U.S. Attorney Amanda R. Vaughn for the District of Columbia provided assistance.


title: Former U.S. Congressional Candidate Pleads Guilty in Conduit Campaign Contribution Case

body_text: A former primary candidate for the U.S. House of Representatives pleaded guilty today to violating the Federal Election Campaign Act (FECA) by accepting a conduit campaign contribution. According to court documents, Lynda Bennett, 65, of Maggie Valley, North Carolina, was a primary candidate for North Carolina’s 11th Congressional District in 2020. In late December 2019, Bennett borrowed $25,000 from a family member, representing that she needed the money for personal expenses because she had to spend a large amount of her own money on her campaign. The day after depositing the loaned money into a personal account, Bennett then caused $80,000, including the $25,000 in loaned funds, to be transferred to the bank account of Lynda Bennett for Congress (LBC), her authorized federal campaign committee. Under the FECA, Bennett was required to report a loan from a third-party individual as a campaign contribution. Bennett knowingly and willfully violated the FECA by reporting through LBC that the full $80,000 was a loan to her campaign using her own personal funds, rather than disclosing that $25,000 of that amount was a loan from another individual. Bennett pleaded guilty to one count of accepting contributions in the name of another. She is scheduled to be sentenced on June 20. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement. The FBI Washington Field Office investigated the case. Trial Attorney Ryan R. Crosswell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Joshua S. Rothstein for the District of Columbia are prosecuting the case. Former Assistant U.S. Attorney Amanda R. Vaughn for the District of Columbia provided assistance.


title: Doctor Sentenced To 12.5 Years In Prison For Illegally Distributing Oxycodone From Midtown Manhattan Practice

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that HOWARD ADELGLASS was sentenced today by U.S. District Judge Jed S. Rakoff to 150 months in prison for his participation in a conspiracy to illegally prescribe oxycodone. ADELGLASS was convicted in November 2022 following a two-week trial before Judge Rakoff. U.S. Attorney Damian Williams said: “For years, Howard Adelglass illegally prescribed enormous quantities of highly addictive and deadly opioids to people he knew were suffering from substance abuse disorders or were dealers. By monetizing his prescription pad and distributing mammoth quantities of oxycodone pills for no legitimate medical purpose, Adelglass practiced as a drug dealer, not a doctor. Adelglass did not simply betray his medical oath; he destroyed lives and families and helped fuel the opioid epidemic gripping the nation. Today’s sentence makes clear that this Office and our law enforcement partners will work tirelessly to hold responsible those who have contributed to the national opioid crisis no matter their professional stature.” According to the allegations contained in the Indictment, the evidence offered at trial, and matters included in public filings: HOWARD ADELGLASS was a licensed physician. Together with his office manager, MARCELLO SANSONE, he operated a pain-management clinic located in Midtown Manhattan (the “Clinic”). The Clinic serviced purported patients seeking oxycodone and other pain-relief medications commonly diverted for illicit purposes. In exchange for cash payments, sex acts, and cocaine, ADELGLASS wrote thousands of prescriptions for large quantities of oxycodone, many to individuals whom ADELGLASS knew did not need the pills for a legitimate medical purpose. When they occurred, ADELGLASS’s examinations were perfunctory. ADELGLASS's purported patients included individuals addicted to opioids and, in some cases, individuals who sold the oxycodone on the street. Even when faced with clear evidence of his purported patients’ drug abuse and diversion, ADELGLASS continued to prescribe large quantities of oxycodone without a legitimate medical purpose and outside the scope of professional practice. Initially, ADELGLASS staffed the Clinic with inexperienced young women, some of whom he caused to be addicted to oxycodone through illegal prescriptions. Around October 2018, after serving as a primary source of patient referrals, SANSONE took over as the Clinic’s office manager. In that role, SANSONE helped to control access to ADELGLASS and the lucrative prescriptions he wrote for medically unnecessary oxycodone. With particularly vulnerable patients, ADELGLASS and SANSONE solicited and, in some instances, received sex acts in exchange for illegal oxycodone prescriptions. Between in or about November 2017 and in or about September 2020, ADELGLASS prescribed more than 1.3 million oxycodone pills. * * * In addition to their prison terms, ADELGLASS, 67, of New York, New York, and SANSONE, 37, of Old Bridge, New Jersey, were each sentenced to three years of supervised release. Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, New York City Police Department, and the U.S. Department of Health and Human Services, Office of Inspector General. This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Marguerite B. Colson, and Daniel G. Nessim are in charge of the prosecution.


title: Operators And Attorney Of Global Multi-Million-Dollar Cryptocurrency Ponzi Scheme “AirBit Club” Plead Guilty

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty pleas of PABLO RENATO RODRIGUEZ, GUTEMBERG DOS SANTOS, SCOTT HUGHES, CECILIA MILLAN, KARINA CHAIREZ, and JACKIE AGUILAR for their roles in an internationally coordinated fraud and money laundering ring that deceived individuals into investing in AirBit Club, a purported cryptocurrency mining and trading company. AirBit Club co-founder DOS SANTOS pled guilty before United States District Judge George B. Daniels on October 21, 2021. Senior AirBit Club promoters CHAIREZ, MILLAN, and AGUILAR pled guilty before Judge Daniels on January 31, February 8, and February 22, 2023, respectively, and are scheduled to be sentenced by Judge Daniels on June 28, July 25, and June 27, 2023, respectively. SCOTT HUGHES, an attorney who laundered Airbit Club fraud proceeds for RODRIGUEZ and DOS SANTOS, pled guilty before Judge Daniels on March 2, 2023, and is scheduled to be sentenced on August 9, 2023. Airbit Club co-founder RODRIGUEZ pled guilty before Judge Daniels earlier today and is scheduled to be sentenced on July 25, 2023. As part of their guilty pleas, the defendants collectively have been ordered to forfeit their fraudulent proceeds of Airbit Club, which include seized or restrained assets consisting of U.S. currency, Bitcoin, and real estate currently valued at approximately $100 million. U.S. Attorney Damian Williams said: “The defendants took advantage of the growing hype around cryptocurrency to con unsuspecting victims around the world out of millions of dollars with false promises that their money was being invested in cryptocurrency trading and mining. Instead of doing any cryptocurrency trading or mining on behalf of investors, the defendants built a Ponzi scheme and took the victims’ money to line their own pockets. These guilty pleas send a clear message that we are coming after all of those who seek to exploit cryptocurrency to commit fraud.” According to the Superseding Indictment, the defendants’ statements when pleading guilty, and statements made in related court filings and proceedings: RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, CHAIREZ, and AGUILAR participated in a coordinated scheme in which victim-investors (the “Victims”) were induced to invest in AirBit Club based on the false promise of guaranteed profits in exchange for cash investments in club “memberships” (the “AirBit Club Scheme” or the “Scheme”). Beginning in late 2015, AirBit Club, through its founders, RODRIGUEZ and DOS SANTOS, as well as its promoters (the “Promoters”), including MILLAN, CHAIREZ, and AGUILAR, marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry. Promoters falsely promised Victims that AirBit Club earned returns on cryptocurrency mining and trading and that Victims would earn passive, guaranteed daily returns on any membership purchased. RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, CHAIREZ, and AGUILAR traveled throughout the United States and around the world to places in Latin America, Asia, and Eastern Europe, where they hosted lavish expos and small community presentations aimed at convincing Victims to purchase AirBit Club memberships. In furtherance of the AirBit Club Scheme, the Victims were fraudulently induced to buy memberships in cash, including in the Southern District of New York. Following a Victim’s investment, a Promoter provided the Victim with access to an online AirBit Club portal to view the purported returns on memberships (the “Online Portal”). While Victims saw “profits” accumulate on their Online Portal, those representations were false; no Bitcoin mining or trading on behalf of Victims in fact took place. Instead, RODRIGUEZ, DOS SANTOS, MILLAN, and AGUILAR enriched themselves and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more Victims. HUGHES, an attorney licensed to practice law in California, had previously represented RODRIGUEZ and DOS SANTOS in a Securities and Exchange Commission investigation related to another investment scheme known as Vizinova. He then aided RODRIGUEZ and DOS SANTOS in perpetrating the AirBit Club Scheme by, among other things, helping to remove negative information about AirBit Club and Vizinova from the internet. In many instances, as early as 2016, Victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a Promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal, if they were able to make any withdrawal at all. In one instance, AGUILAR told one Victim of the AirBit Club Scheme who was complaining about her inability to withdraw AirBit Club returns that she should “bring new blood” into the AirBit Club Scheme in order to receive her returns. In April 2020, another victim received a notice on the AirBit Club Online Portal that his account was closed – and principal investment lost – due to “execution of financial sustainability Reserve, policy #34 of the Airbit Club Terms and Conditions, due to the economic and financial crisis caused by (Covid-19).” RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN sought to conceal the AirBit Club Scheme, as well as their respective control of the proceeds of that Scheme, by requesting that Victims purchase memberships in cash, using third-party cryptocurrency brokers, and by laundering the Scheme’s proceeds through several domestic and foreign bank accounts, including an attorney trust account managed by HUGHES (the “Hughes Trust Account”). The Hughes Trust Account was ostensibly intended to maintain custody of HUGHES’s law practice’s client funds. Instead, the Hughes Trust Account was used by RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN to conceal the nature and origin of the AirBit Club Scheme’s illicit proceeds. Through that account, HUGHES directed Victim funds to the personal expenses of RODRIGUEZ, DOS SANTOS, CHAIREZ, MILLAN, and himself, and funded promotional events and sponsorships designed to further promote the AirBit Club Scheme. * * * RODRIGUEZ, 40, of Irvine, California, DOS SANTOS, 48, of Panama City, Panama, MILLAN, 41, of Greensboro, North Carolina, CHAIREZ, 47, of Modesto, California, AGUILAR, 58, of Plano, Texas, and HUGHES, 47, of Newport Beach, California, have pled guilty to charges including wire fraud conspiracy, which carries a maximum potential sentence of 20 years in prison; money laundering conspiracy, which carries a maximum potential sentence of 20 years in prison; and bank fraud conspiracy, which carries a maximum potential sentence of 30 years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge. Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ (“HSI”) El Dorado Task Force, HSI Panama, the HSI Panama City Transnational Criminal Investigative Unit, and HSI New Orleans. Mr. Williams further thanked the attorneys and investigators at the Securities and Exchange Commission whose expertise and diligence were integral to the development of this investigation. If you believe you are a victim of the AirBit Club fraud, updated information regarding the case and victims’ rights as well as contact information for the victim witness coordinator is available here . The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Kiersten A. Fletcher, Samuel L. Raymond, and Cecilia E. Vogel are in charge of the prosecution.


title: Montgomery Man Convicted of Illegally Possessing Ammunition Used During  Shooting at a Funeral

component: USAO - Alabama, Middle

body_text: Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart announced that Gerald Dyron Little, 41, from Montgomery, Alabama, was found guilty of illegally possessing ammunition he used during a shooting at a funeral. According to court records and evidence presented at trial, on June 26, 2021, Little attended a memorial service for one of his relatives at the municipal complex in Fort Deposit, Alabama. During the gathering, Little caused a disruption and family members asked him to leave. Little complied and left the facility. After the memorial service, family members and attendees gathered in a nearby cemetery for a graveside service. Witnesses testified that Little was in the front passenger seat of a white SUV parked at the cemetery near the burial site. The windows of the SUV were down and loud music was coming from the vehicle, disturbing the service. Family members went to the vehicle and asked Little and the driver of the SUV to leave, as they were being disruptive. The two failed to do so. Instead, Little began arguing with the family members. The driver then grabbed a handgun. Little took the handgun from the driver and then fired the weapon from the open window of the SUV. Officers from the Fort Deposit Police Department were nearby and rushed to the scene after hearing the shots. However, Little fled before they arrived. Four funeral attendees, including the brother of the deceased, were struck by bullets during the shooting. Investigators interviewed witnesses and soon identified Little as the shooter. Law enforcement also recovered four discharged shell casings from the scene. The State of Alabama issued an arrest warrant for Little and he was arrested in Montgomery by the United States Marshals Service during the early morning hours of July 1, 2021. That same day, federal agents obtained a complaint and arrest warrant charging Little with being a felon in possession of ammunition. In reaching its verdict on March 8, 2023, the jury found that the shell casings recovered from the scene came from ammunition possessed by Little during the shooting. Little had a previous felony conviction and is prohibited by federal law from possessing a firearm or ammunition. Following this conviction, Little faces a sentence of up to 10 years in federal prison with no parole. State charges related to the shooting are pending. The Fort Deposit Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case, with assistance from the Lowndes County Sheriff’s Office, the Alabama Department of Forensic Sciences, and the United States Marshals Service. Assistant United States Attorneys Stephen K. Moulton and Brandon W. Bates are prosecuting the case.


title: Philadelphia Woman Sentenced to 100 Months in Prison for Operating Fraudulent Debt Relief Scheme

body_text: A Philadelphia woman was sentenced today to 100 months in prison for conspiring to defraud the IRS and assisting others in filing false income tax returns. On July 16, 2021, Yolonda Thompson, also known as Qhama Al, and a co-conspirator, Albert Upshur, also known as Kelinde Jaha, were found guilty at a bench trial of conspiring to defraud the IRS and assisting in the preparation of false tax returns. According to court documents and evidence presented at trial, between 2009 and 2015, Thompson and Upshur attempted to obtain millions of dollars for themselves and other participants in a fraudulent debt relief scheme they referred to as the Debt Payoff Process. As part of the scheme, Thompson and Upshur formed the Yolonda Denise Thompson Living Trust (the “Thompson Trust”). Participants in the Debt Payoff Process were told that if they paid money to Upshur and filed tax returns and other documents Thompson prepared for them, they could access funds from the Thompson Trust to pay off their mortgages and other debts. The tax returns that Thompson prepared, and participants filed with the IRS, claimed refunds to which they were not entitled. In total, the scheme sought more than $325 million in fraudulent refunds, of which the IRS paid out $1,511,236. The evidence at trial also established that after the IRS began to investigate the Debt Payoff Process, Thompson and Upshur attempted to obtain money from the IRS by other fraudulent means, including using checks drawn on closed bank accounts and trying to use financial instruments such as fictitious bonds. The defendants also continued to file false tax returns for themselves and others after the IRS assessed civil penalties against them and notified them that they were under criminal investigation. In addition to the term of imprisonment, U.S. District Judge Wendy Beetlestone ordered Thompson to serve three years of supervised release. Upshur was previously sentenced to seven years in prison for his role in the scheme. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. He thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania, which provided support in the investigation and prosecution of this case. IRS-Criminal Investigation investigated the case. Trial Attorney Melissa S. Siskind, who serves as National Director of the Tax Division’s Tax Defier Initiative, prosecuted the case.


title: Convicted Felon Sentenced to 15 Years in Federal Prison for Drug Trafficking while on Parole

component: USAO - Arkansas, Western

body_text: FAYETTEVILLE – A previously convicted felon living in Rogers was sentenced today to 180 months in prison without the possibility of parole followed by five additional years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville. According to court documents, in late 2020, agents with the Drug Enforcement Administration (DEA) conducted an undercover investigation into large-scale methamphetamine trafficking in Northwest Arkansas. During the investigation, an informant, working at the direction of the DEA, made a controlled purchase of methamphetamine directly from Francisco Trujillo, age 26. On or about December 3, 2021, DEA agents, along with representatives from Arkansas Probation and Parole, preformed a home compliance check on Trujillo, who was on parole based on a previous felony conviction. During the search, agents located approximately four (4) pounds of methamphetamine. Trujillo was subsequently charged in federal court via Grand Jury with drug trafficking and possession of firearms in furtherance of drug trafficking. On or about August 15, 2022, Trujillo pleaded guilty to possessing the nearly four (4) pounds of methamphetamine and intending to distribute it. U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement. The Drug Enforcement Administration and Arkansas State Probation and Parole investigated the case. Assistant U.S. Attorney Dustin Roberts prosecuted the case. This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.


title: Narcotrafficker Pleads Guilty to International Cocaine Trafficking Conspiracy

body_text: A narcotrafficker pleaded guilty today to international cocaine trafficking conspiracy. According to court documents, beginning in the 1980s through 2017, Raul Flores-Hernandez, aka El Tio, 70, led a drug-trafficking organization based in Mexico’s Jalisco State that trafficked cocaine from South America to Mexico for subsequent importation into the United States. He leveraged his business connections to coordinate the transportation of substantial quantities of cocaine from Colombia, Peru, and Bolivia to ports in Mexico, from which they were transported by land to and across the U.S. border. In July 2017, Mexican authorities arrested Flores-Hernandez at the request of the United States. He was extradited from Mexico to the United States in February 2021. Flores-Hernandez pleaded guilty to one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that it would be imported into the United States. He is scheduled to be sentenced on June 14 and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Randy Grossman for the Southern District of California, Administrator Anne Milgram of the DEA, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement. The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case. The DEA Los Angeles and San Diego Field Divisions, FBI Washington Field Office, and HSI San Diego Field Office are investigating the case. Customs and Border Protection in San Diego provided substantial assistance. The Justice Department thanks Mexican authorities for their assistance in securing the arrest and extradition of Flores-Hernandez. Acting Deputy Chief Katharine Wagner and Trial Attorney Melanie Alsworth of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorney Kyle Martin for the Southern District of California are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.


title: Bigelow Man Sentenced to 25 Years In Prison For Production Of Child Pornography

component: USAO - Arkansas, Eastern

body_text: LITTLE ROCK—A Bigelow man was sentenced to serve 25 years in federal prison for producing child pornography. Jakob Brown, 26, was sentenced today by United States District Court Judge Brian S. Miller. In April 2020, Conway Police Department received a report about a male harassing and extorting a female victim on Facebook and SnapChat. The user of those social media accounts was determined to be Brown, who is a registered sex offender. Brown was arrested for sexual extortion, and his phone was seized. A search of Brown’s cell phone revealed 18 videos and 87 images of child sexual abuse material. Several of the videos were of prepubescent females approximately four-to-five years old performing sex acts. The FBI then obtained search warrants for Brown’s SnapChat accounts and discovered conversations Brown had with a minor female victim, beginning in February 2020. During Brown’s conversations with the minor female victim on SnapChat, Brown offered to pay the minor for sexually-explicit videos, stating “everything has to show face and send the pictures and videos to chat.” After some discussion, the minor sent a 35-second video of herself engaged in explicit sexual conduct to Brown, as directed. Brown was indicted in December 2020 and pleaded guilty in June 2022. In addition to the 25-year prison term, Brown was sentenced to 20 years of supervised release following his imprisonment. The case was investigated by the FBI and the Conway Police Department and prosecuted by Assistant United States Attorney Kristin Bryant. # # # This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available online at https://www.justice.gov/edar Twitter: @EDARNEWS


title: Omaha Man Pleads Guilty to Role in Multi-Million Dollar Embezzlement

body_text: United States Attorney Steven Russell announced that Jeffrey Stenstrom, 42, of Omaha, Nebraska pleaded guilty to a Criminal Information today charging him with Conspiracy to Commit Money Laundering. Stenstrom faces a maximum possible punishment of 20 years’ imprisonment, a fine of $500,000 or twice the amount of the laundered funds, or both. As part of his sentence, Stenstrom has agreed to pay restitution in excess of $5,100,000 to Darland Properties, LLC. Stenstrom also admitted to forfeiture allegations agreeing to forfeit his interest in a 2020 McLaren 600LT Spider, multiple trucks, various items of jewelry, a residence in Arizona, multiple properties in Nebraska, currency, and multiple life insurance policies worth in excess of $2,000,000. United States Magistrate Judge Michael D. Nelson ordered a Pre-Sentence Investigation be conducted and set Stenstrom’s sentencing hearing in front of Chief United States District Court Judge Robert F. Rossiter, Jr. for June 2, 2023, at 1:30 pm. Stenstrom is also currently pending sentencing for Income Tax Evasion in a different matter where he faces a maximum possible punishment of 5 years’ imprisonment, a $250,000 fine, or both. In that matter Stenstrom agreed to pay $1,954,505.10 in restitution to the Internal Revenue Service. This case was investigated by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation.