title: Muncie Man Sentenced to 15 Years in Federal Prison for Armed Trafficking of Methamphetamine and Fentanyl

component: USAO - Indiana, Southern

body_text: INDIANAPOLIS- Anson O’Neal, 22, of Muncie, Indiana, has been sentenced to 15 years in federal prison after pleading guilty to possession of methamphetamine with intent to distribute and possession of firearms in furtherance of drug trafficking. According to court documents, on January 31, 2022, agents with the Drug Enforcement Administration and Officers with the Muncie Police Department executed a search warrant at O’Neal’s home in Muncie, Indiana. Officers found bags of methamphetamine in multiple locations throughout the house, including under the floor mat outside the front door, in a bedroom safe, and in a closet. The three bags of methamphetamine found on a closet shelf were stored directly on top of two loaded guns. A total of approximately 890 grams of methamphetamine was seized from the home. Investigators also seized approximately 63 grams of fentanyl, over $19,000 in cash, and a total of six firearms—including an AR-15 style rifle. O’Neal admitted that he possessed the methamphetamine and fentanyl with the intent to distribute the drugs to others, and that he possessed the guns in furtherance of his drug trafficking activities. United States Attorney for the Southern District of Indiana, Zachary A. Myers, Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, and Muncie Police Chief Nathan Sloan made the announcement. “Dealers of deadly drugs, armed with deadly weapons, are a poison in our communities,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Those who choose to endanger our families to further their own greed will be identified and prosecuted. With our federal, state, and local partners, we are committed to dismantling these operations and ensuring that dangerous criminals are taken off our streets and held accountable for their actions.” The Drug Enforcement Administration and Muncie Police Department investigated this case. The sentence was imposed by U.S. District Court Judge, Sarah Evans Barker. Judge Barker also ordered that O’Neal be supervised by the U.S. Probation Office for 5 years following his release from federal prison. U.S. Attorney Myers thanked Assistant United States Attorney Patrick G. Gibson, who prosecuted this case. According to the Drug Enforcement Administration, as little as two milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people. 6 out of 10 illegal fentanyl tablets sold on U.S. streets now contain a potentially lethal dose of the drug. One Pill Can Kill : Avoid pills bought on the street because One Pill Can Kill . Fentanyl has now become the leading cause of death in the United States. Fentanyl is a highly potent opioid that drug dealers dilute with cutting agents to make counterfeit prescription pills that appear to be Oxycodone, Percocet, Xanax, and other drugs. Fake prescription pills laced with fentanyl are usually shaped and colored to look like pills sold at pharmacies. For example, fake prescription pills known as “M30s” imitate Oxycodone obtained from a pharmacy, but when sold on the street the pills routinely contain fentanyl. These pills are usually round tablets and often light blue in color, though they may be in different shapes and a rainbow of colors. They often have “M” and “30” imprinted on opposite sides of the pill. Do not take these or any other pills bought on the street – they are routinely fake and poisonous, and you won’t know until it’s too late. ###


title: Federal Indictments Target San Gabriel Valley Gang Linked to Murder, Witness Intimidation, Illegal Gambling and Drug Trafficking

component: USAO - California, Central

body_text: LOS ANGELES – A coalition of federal and local authorities this morning announced federal charges against 10 members and associates of a San Gabriel Valley gang who are named in a series of federal grand jury indictments that allege a wide range of criminal conduct. The crimes alleged include the fatal shooting of a woman who was gunned down when a gang member attempted to kill a person who was providing information to law enforcement. Today’s takedown targeted the Quiet Village (QV) street gang and is the result of an investigation that started soon after June 14, 2022, when a member of that gang murdered two El Monte police officers – Sergeant Michael Paredes and Officer Joseph Santana. The investigation was conducted by the FBI’s San Gabriel Valley Safe Streets Task Force and involved agents and officers assigned to the Task Force from the FBI, the El Monte Police Department, the Los Angeles County Sheriff’s Department, the Pomona Police Department and the California Department of Corrections and Rehabilitation’s Special Service Unit. The Bureau of Alcohol, Tobacco, Firearms and Explosives participated in the investigation. “A highly violent gang responsible for the murders of two brave police officers and others has now felt the weight of a collective law enforcement response. The gang’s days of terrorizing the community stop with today’s federal arrests,” said United States Attorney Martin Estrada. “The indictments we announce today should assure the community that we are here to protect you, and we will use our full resources to fight violent crime and thereby ensure that everyone in Southern California, no matter where they live, has a safe place to live and raise their families.” “The San Gabriel Valley Safe Streets Task Force works with multiple law enforcement departments throughout the valley to address violent crime, including the alleged crimes by the gang members and associates being charged in Operation Silent Cadence,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “We expect this operation to deal a death blow to these criminal enterprises and their ability to maintain power in the neighborhoods they controlled, and to deliver a measure of justice to the families of the victims mercilessly targeted in the various crimes alleged.” “Today, the El Monte Police Department, the FBI and all of our partner agencies told every American we will never stop in the pursuit of justice when the most heinous of crimes are committed that harm our communities,” said El Monte Police Chief Jake Fisher. A total of 10 defendants are charged across four grand jury indictments and a criminal complaint. Today, two defendants were arrested; four were already in custody; and authorities are continuing to search for four fugitives. (Additional defendants were taken into custody today on local charges.) The main indictment alleges violations of two federal racketeering statutes – a conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, and violent crimes in aid of racketeering – as well as firearms and narcotics offense. The remaining three indictments allege narcotics trafficking and firearms charges. The RICO count – which charges three defendants – outlines the history of QV; its close alliance with another street gang, Whittier Varrio Locos (WVL); and its association with the Mexican Mafia prison gang. The indictment alleges three main areas of criminal conduct: an attempted murder of a rival gang member, the targeting of an informant that resulted in the death of a bystander, and the gang’s operation of a “casita” that offered illegal gambling and narcotics. According to the 46-page RICO indictment: The lead defendant in the case – Chase Carrillo, aka “Sicko,” 34, a shot caller in QV – became involved in a verbal altercation with a rival gang member in El Monte on January 13, 2022. That altercation ended with Carrillo and WVL shot caller Ronny Rojas shooting the rival gangster, who was struck 8 to 10 times and severely wounded. A man identified in the indictment as J.P. was ordered to drive the getaway vehicle. Authorities investigated the incident and local prosecutors filed charges against Carrillo and Ronny Rojas. In early March 2022, Rojas obtained a police report about the incident that named J.P. as a person who provided authorities information about the shooting. Rojas asked WVL member Maria Garcia, who was present at the shooting, to distribute the report. Rojas later said it should go “to all the homies,” which the indictment alleges was a message to fellow gang members that “J.P. should be murdered for cooperating with law enforcement.” On March 5, 2022, only two days after the police report began circulating among gang members, Carrillo and Garcia – who were driving a car rented with a credit card Garcia had stolen – encountered J.P. in the City of Commerce. Carrillo got out of the rental car and fired at least two rounds into the vehicle J.P. was riding in with the intent to kill him. J.P. was not hit, but the driver of the vehicle – a woman identified in court documents as M.F. – was fatally wounded. Soon after this killing, Garcia attempted to sell the 9mm ghost gun Carrillo used to kill M.F. One week after the slaying, Garcia told another gang associate, “yeah she was driving his car” and later said, “sometimes you gotta take matters into your own hands, you know?” QV members and associates also operated casita – an illegal gambling business – behind a smoke shop in Whittier. After the murder of the El Monte Police officers, gang members “placed posters, stickers, and graffiti at QV’s illegal gambling business and elsewhere to celebrate the actions of [the murderer] and in order to advance their gang’s reputation for violence and intimidate others.” In addition to illegal gambling, the casita was used to distribute methamphetamine. The indictment specifically alleges that QV member Richard Guzman, 40, engaged in five transactions involving methamphetamine in July and August of 2022. The complaint alleges that Vincent Gutierrez also sold methamphetamine at the casita. Additionally, the indictment alleges that a Kansas-based gang member, 43-year-old Raphael Solorzano, drove 7 pounds of methamphetamine from Kansas to Southern California with the intent to sell the narcotics. One of the three narcotics-trafficking indictments alleges that Ronny Rojas, while he was incarcerated in the Los Angeles County Jail in relation to the attempted murder offense, conspired with a relative to distribute suboxone, an opioid marketed as a treatment for opioid addiction, but which is sometimes abused. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The defendants taken into custody today are expected to be arraigned this afternoon in United States District Court in downtown Los Angeles. Each defendant faces a substantial prison sentence if they were to be convicted. For example, Carrillo, who is charged in the RICO count, a violent crime in aid of racketeering and using a firearm in a violent crime resulting in the death of M.F. would face a sentence of life without parole or a potential death sentence if he were convicted. The FBI’s San Gabriel Valley Safe Streets Task Force, which includes the Drug Enforcement Administration, conducted this investigation. The Task Force received substantial assistance from the Whitter Police Department, the Bell Gardens Police Department, the Arcadia Police Department, the West Covina Police Department, the Covina Police Department, and the San Bernardino County Sheriff’s Department. Assistant United States Attorney Jeremiah Levine of the Violent and Organized Crime Section is prosecuting this case.


title: Jacksonville Tax Preparer Pleads Guilty to Preparing False Personal Return

component: Tax Division

body_text: A Florida woman pleaded guilty today to aiding and assisting in the preparation of a false tax return. According to court documents, Iona Coates of Orange Park, Florida, owned and operated Bits & Bytes Accounting Services Inc., a tax preparation and bookkeeping services company located in Jacksonville. Between 2015 and 2020, Coates reported wages and tax withholdings from Bits & Bytes on her personal tax returns, including $42,500 of withholdings on her 2017 return. However, as Coates knew, Bits & Bytes did not withhold and pay over any taxes to the IRS during those years. In total, between 2015 and 2020, Coates claimed false withholdings of $228,788. Coates faces a maximum penalty of three years in prison, and also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Roger B. Handberg for the Middle District of Florida made the announcement. IRS-Criminal Investigation is investigating the case. Trial Attorneys Kevin Schneider and Wilson Stamm of the Justice Department’s Tax Division are prosecuting the case.


title: Holyoke Man Sentenced to Five Years in Prison for Being a Felon in Possession of a Firearm

component: USAO - Massachusetts

body_text: BOSTON – A Holyoke man was sentenced yesterday in federal court in Springfield for illegally possessing a firearm as a previously convicted felon. Joe Anthony Montaner-Vazquez, 25, was sentenced by U.S. District Court Judge Mark G. Mastroianni to five years in prison and three years of supervised release. In April 2023, Montaner-Vazquez pleaded guilty to one count of being a felon in possession of a firearm. In May 2022, Montaner-Vazquez was found in possession of a Glock 9-millimeter caliber pistol and 20 rounds of ammunition after he attempted to flee from police. Montaner-Vazquez was previously convicted of a felony and is prohibited from possessing firearms and ammunition. Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Holyoke Police Chief David Pratt made the announcement today. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.


title: Three men sentenced for drug trafficking in the Eastern Panhandle

component: USAO - West Virginia, Northern

body_text: MARTINSBURG, WEST VIRGINIA – Three men were sentenced to federal prison in separate cases for drug trafficking in the Eastern Panhandle. Cortney Lamar Jenkins, age 34, of Martinsburg, was sentenced to 15 years for a drug charge involving a trafficking operation that sold cocaine, fentanyl, and heroin in Berkeley County over a five-year period. Jenkins acknowledged that the heroin and fentanyl he sold had caused two individuals to overdose. A search of Jenkins’s house and vehicle yielded nearly $20,000 in cash, cocaine, marijuana, THC cartridges, and drug paraphernalia. Jenkins has six prior drug trafficking convictions, including a prior federal drug trafficking conviction, with a criminal history that spanned over twenty years. Randy Stephen Humphrey, age 35, of Martinsburg, was sentenced to 12 and half years in federal prison after pleading guilty to a possession with intent to distribute cocaine hydrochloride. Humphrey worked with others to sell hundreds of grams of cocaine in Berkeley County. The investigation revealed that Humphrey transported cocaine from New York to Martinsburg and hid proceeds from the drug sales in another’s bank account. Humphrey has an extensive criminal history that includes drug trafficking and illegal firearms. Glenn Caj’mere Civo Watlington, III, also known as “Chris,” age 29, of Parkville, Maryland, was sentenced to 6 years in prison for a drug conspiracy charge. Watlington worked with others to sell cocaine, cocaine base, heroin, and fentanyl in Jefferson and Berkeley Counties. During the course of the investigation, officers seized drugs, firearms, ammunition, and thousands of dollars in cash. Watlington has a criminal history including drug trafficking, firearms, and violence. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated the cases. Agencies include the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police Bureau of Criminal Investigations; the Berkeley County Sheriff’s Office; the Jefferson County Sheriff’s Office; the Martinsburg Police Department; the Ranson Police Department; and the Charles Town Police Department. The Humphrey case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the cases on behalf of the government. U.S. District Judge Gina M. Groh presided.


title: South Carolina Man Charged with Sex Trafficking of Four Victims, including a Minor

component: USAO - South Carolina

body_text: FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence returned an indictment charging a South Carolina man with three counts of sex trafficking by force, fraud or coercion, one count of sex trafficking of a minor, two counts of interstate travel in aid of racketeering and one count of obstructing a sex trafficking investigation. According to the indictment, between August 2019 and August 2020, Aaron T. Simmons, 26, of Greenville, used force, threats of force and coercion to compel three adult women to engage in commercial sex. The indictment also charges Simmons with sex trafficking of a minor victim. Simmons will make his initial court appearance before a U.S. Magistrate Judge in the District of South Carolina. It is initially scheduled for July 28. If convicted of sex trafficking by force, fraud, or coercion, Simmons faces a minimum penalty of 15 years in prison and up to life in prison. If convicted of sex trafficking of a minor, Simmons faces a minimum penalty of 10 years in prison and up to life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Adair F. Boroughs for the District of South Carolina and Special Agent in Charge Steven J. Jensen of the FBI Columbia Field Office made the announcement. The Greenville Police Department and the FBI Greenville Field Office investigated the case. Assistant U.S. Attorney Carrie Fisher Sherard for the District of South Carolina and Trial Attorney Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case. The FBI is asking anyone with information about Aaron Simmons to contact the FBI Columbia Field Office at (803) 551-4200. If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at (888) 373-7888. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: American States Utility Services Settles Allegations of False Price Quotes at Federal Military Installations

component: USAO - Virginia, Eastern

body_text: RICHMOND, Va. – American States Utility Services, Inc. (ASUS), located in San Dimas, California, agreed to pay $600,000 to settle allegations that it violated the federal False Claims Act by submitting inflated price estimates to the government. Between April 2016 and May 2017, ASUS submitted price quotes for 19 water and sewer projects on U.S. military installations in North Carolina to the Defense Logistics Agency (DLA) at Fort Belvoir, Virginia. The United States alleged that each quote contained subcontractor costs that ASUS knew would not be expended, inflating the estimated cost of the project. DLA consequently evaluated the quotes for price reasonableness, which the United States alleged was based on the false premise that the projects would be performed with subcontractor costs. As a result, the government alleged that DLA overpaid more than $300,000 for these projects. The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia; the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and the Department of the Army Criminal Investigation Division. The matter was investigated by Assistant U.S. Attorney Robert McIntosh. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. The civil claims settled by this agreement are allegations only; there has been no admission of civil liability.


title: Two Federal Juries Convict Greenville Fraudster of Separate Schemes in July

body_text: GREENVILLE, SOUTH CAROLINA — Robin Lee Johnson, 51, of Greenville, was found guilty by a jury of six counts of uttering counterfeit securities. Just two weeks ago, another jury found Johnson guilty of three counts of wire fraud. Senior United States District Judge Henry M. Herlong, Jr., presided over both trials and will sentence Johnson after the United States Probation Office prepares a presentence report. Johnson faces a statutory maximum of ten years on the securities case and 20 years on the wire fraud case. Evidence presented to the jury during the first trial (July 11-12, 2023) showed that Johnson operated Global Staffing Solutions (“Global”), a business that purported to provide temporary employees to local companies. Johnson sold Global’s accounts receivable, representing money due from providing the temporary employees, to Capital Business Funding, a local factoring company. Factoring is a financial transaction and a type of debtor finance in which a business (Global) sells its accounts receivable to a third party (Capital) at a discount. The invoice factoring company (Capital) seeks to collect on the invoices it has purchased. It was a part of the scheme that Global did not actually provide temporary employees to multiple businesses; however, Johnson represented to Capital that Global’s accounts receivable were valid and legitimate. Capital received multiple fraudulent emails and other documents from Johnson indicating that the workers had been provided and that Global was due money from Capital based on the factoring arrangement. Before her scheme was uncovered, Johnson obtained $406,289.04 from Capital based on fraudulent documents submitted. Evidence presented during the second jury trial (July 26, 2023) showed that Johnson obtained and deposited six counterfeit checks totaling $185,533.16. The checks purported to be from National Funding, a lending company based in San Diego, California. Johnson knew of National Funding because she was on its mailing list and received marketing materials with the company’s name, address, and business purpose. The account number on the counterfeit checks belonged to a law firm in Ohio. Johnson deposited four of the counterfeit checks in her Bank of America account and quickly dissipated the stolen funds through large cash withdrawals and transfers to other accounts. Once the fraud was discovered, Bank of America stopped payment of the final two checks (totaling $75,000) and closed Johnson’s account because of fraud. This case was investigated by the United States Secret Service and the Greenville County Sheriff’s Office. Assistant United States Attorneys Winston Marosek and Bill Watkins prosecuted both cases. ###


title: Former Columbus School Employees Association treasurer pleads guilty to misappropriating funds, agrees to pay restitution

component: USAO - Ohio, Southern

body_text: COLUMBUS, Ohio – The former treasurer of the Columbus School Employees Association (CSEA) pleaded guilty in U.S. District Court here today to misappropriating $60,685.92 in CSEA funds. Phelton Woods, 72, of Reynoldsburg, pleaded guilty to one count of bank fraud. Court documents say Woods wrote 359 unauthorized checks from the CSEA checking account to himself, which included forged signatures; wrote 16 unauthorized checks to a relative, who has no relation to the CSEA; and made 38 unauthorized cash withdrawals. The fraud took place between December 2009 and June 2016. Woods agreed to pay restitution to CSEA’s insurance company. CSEA is a bargaining unit that is combined from 12 local unions within the Columbus City School District, which includes approximately 3,300 members. A federal grand jury indicted Woods in April 2022. Bank fraud is punishable by up to 30 years in prison, but the Court will determine a sentence based on federal sentencing guidelines and the results of a pre-sentence investigation conducted by the court. Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the plea entered before U.S. District Judge Edmund A. Sargus Jr. The United States Department of Labor Office of Labor Management Standards investigated the case. Assistant U.S. Attorney Brenda Shoemaker is representing the United States. # # #


title: Trice Indicted For Kidnapping Resulting In Death And Kidnapping A Minor In Wynter Cole-Smith Case

component: USAO - Michigan, Western

body_text: GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced the indictment of Rashad Maleek Trice, 26, for kidnapping two-year-old Wynter Cole-Smith, resulting in her death and kidnapping a minor. While Trice was charged by criminal complaint on July 7, 2023, to secure his immediate detention, today’s action satisfies the defendant’s constitutional right to federal indictment by a grand jury. “This indictment marks another step forward as we seek a measure of justice following the heartbreaking loss of Wynter Cole-Smith,” said U.S. Attorney Mark Totten . “My thoughts are deeply with Wynter’s family, and my office is fully prepared to make our case against Mr. Trice at a fair trial.” Trice is charged with two counts. The first count is kidnapping resulting in death, in violation of 18 U.S.C. § 1201(a)(1). If convicted, the statutory mandatory minimum sentence is life in prison. This offense is also death penalty eligible. The second count is kidnapping of a minor, in violation of 18 U.S.C. §§ 1201(a)(1) and (g)(1). If convicted, the statutory mandatory minimum sentence is 20 years in prison with a maximum possible sentence of life in prison. "There is no greater responsibility for the FBI than to investigate those who commit senseless acts of violence against young children,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office . “While today’s indictment cannot erase the pain her family is experiencing, it is the next step in the process of securing justice for Wynter.” Arraignment and an initial pretrial conference on these charges is scheduled for Monday, August 7, 2023, at 11 a.m. before Magistrate Judge Ray Kent. U.S. Attorney Totten and FBI SAC Devin Kowalski is scheduled to attend the arraignment and will offer brief comments immediately following. The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law. ###


title: Camden County Man Admits Possession of Child Pornography

component: USAO - New Jersey

body_text: CAMDEN, N.J. – Camden County, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced. Robert Giles, 71, of Collingswood, New Jersey, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court to an indictment charging him with one count of possession of child pornography. According to documents filed in this case and statements made in court: On April 15, 2022, agents with FBI served a search warrant at Giles’s residence and discovered electronic devices that belonged to Giles. A forensic examination of those devices revealed over 45,000 unique files containing videos and images of children being sexually abused. The charge of possession of child pornography carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Nov. 29, 2023. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, with the investigation leading to today’s guilty plea. He also thanked the Collingswood Police Department for their assistance in the investigation. The government is represented by Assistant U.S. Attorney Andrew Johns of the Criminal Division in Camden. giles.indictment.pdf


title: Thoroughbred Racehorse Trainer Jason Servis Sentenced To Four Years In Prison

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that defendant JASON SERVIS was sentenced to four years in prison today for his role in a years-long scheme in which horses trained by SERVIS were doped with approved and unapproved drugs designed to improve the performance of SERVIS’s racehorses, in connection with the charges filed in United States v. Navarro et al. , 20 Cr. 160 (MKV). SERVIS was one of over 30 defendants charged in four separate cases in March 2020, each arising from this Office’s multi-year investigation of the abuse of racehorses through the use of performance enhancing drugs (“PEDs”). U.S. Attorney Damian Williams said: “Today’s sentence sends a clear signal to those in the racehorse industry that no one is above the law. Endangering the welfare of animals for profit will not be tolerated. Illegally doping racehorses is a serious crime that will be met with a serious sentence.” According to the allegations contained in the Superseding Indictment, the Superseding Information charging SERVIS, prior charging instruments, other filings in this case, and statements during court proceedings: The charges in the Navarro case arose from an investigation of widespread schemes by racehorse trainers, veterinarians, PED distributors, and others to manufacture, distribute, and receive adulterated and misbranded PEDs and to secretly administer those PEDs to racehorses competing at all levels of professional horseracing. By evading PED prohibitions and deceiving regulators and horse racing officials, participants in these schemes sought to improve race performance and obtain prize money from racetracks throughout the United States and other countries, including in New York, New Jersey, Florida, Kentucky, and Saudi Arabia, all to the detriment and risk of the health and well-being of the racehorses. Trainers who participated in the schemes, like SERVIS, stood to profit from the success of racehorses under their control by earning a share of their horses’ winnings and by improving their horses’ racing records, thereby yielding higher trainer fees and increasing the number of racehorses under their control. SERVIS obtained hundreds of bottles of the drug “SGF-1000,” which was compounded and manufactured in unregistered facilities and contained growth factors that the defendant believed to be undetectable through regular drug screens. Virtually all the horses in SERVIS’s barn received that drug, including the thoroughbred racehorse “Maximum Security,” who crossed the finish line first at the 2019 Kentucky Derby. SGF-1000 was an intravenous drug promoted as, among other things, a vasodilator capable of promoting stamina, endurance, and lower heart rates in horses through the purported action of “growth factors.” SERVIS approved veterinary bills to racehorse owners that contained concealed charges for SGF-1000, which were falsely billed under the line item “Acupuncture & Chiropractic.” In September 2019, the New York State Gaming Commission released an advisory stating that SGF-1000 was prohibited under the racing rules and had been prohibited since 2012. SERVIS continued to allow the administration of that drug on the horses he trained up until his arrest in March 2020. SERVIS-trained horses were also regularly administered the prescription drug “Clenbuterol” with no valid prescription, which was part of a deliberate effort to conceal that conduct from racing regulators and avoid mandatory reporting requirements. SERVIS further obtained and transported a misbranded version of “Clenbuterol,” which he obtained from convicted co-defendant JORGE NAVARRO. * * * In addition to the prison term, SERVIS, 65, of Jupiter, Florida, was sentenced to one year of supervised release and ordered to pay $311,760 in forfeiture, $163,932 in restitution, and a $30,000 fine. Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation New York Field Office’s Eurasian Organized Crime Task Force and its support of the Bureau’s Integrity in Sports and Gaming Initiative. Mr. Williams also thanked the Food and Drug Administration and Customs and Border Protection for their assistance and expertise. This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney Sarah Mortazavi is in charge of the prosecution.


title: St. Peters Woman Admits $100,000 Pandemic Fraud

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – A woman from St. Peters, Missouri on Wednesday admitted defrauding a pandemic-era loan program out of $100,927. Francheska D. Reese, 36, pleaded guilty in U.S. District Court in St. Louis to one count of wire fraud. She admitted that between March 30, 2020, and at least Jan. 24, 2023, she devised a scheme to defraud a Paycheck Protection Program lender. Reese submitted a fraudulent PPP loan application for 1st Stop Child Development Center LLC on Jan. 21, 2021. 1st Stop had never filed federal income or employment tax returns since it was registered with the Missouri Secretary of State’s Office by Reese in September of 2018. But Reese falsely claimed her company employed seven full-time employees who were paid a total of $40,371 per month. She also falsely claimed that she would use the loan, which was intended to save businesses during the pandemic, on payroll, rent, mortgage interest and utilities. She transferred the $100,927 loan into her personal account and spent the money on personal retail and car expenses, among other things, her plea agreement says. At her sentencing October 25, Reese could face up to 20 years in prison, a fine of up to $250,000 or both prison and a fine. She will also be ordered to repay the money. The U.S. Secret Service investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case. Anyone with information about pandemic fraud should call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Lansing-Area Health System Agrees To Pay $671,300 To Settle  False Claims Act Allegations Relating To Improper Billing

body_text: GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Edward W. Sparrow Hospital Association d/b/a Sparrow Medical Group, Sparrow Care Network, and Sparrow Health System located in Lansing (collectively “Sparrow”) have agreed to pay $671,310 to resolve allegations that they violated the False Claims Act by misuse of “incident-to” billing. “Truthful and accurate billing is crucial to our Medicare system,” said U.S. Attorney Mark Totten . “This settlement reflects the commitment of my office in working with our investigative agencies to protect the Medicare population and maintain the system of trust and accountability necessary between the patient, physician, and federal healthcare programs.” An “incident-to” billing provision allows an Advanced Practice Provider (APP), including nurse practitioners and physician assistants, to treat a patient but bill the encounter under the physician’s name and reimbursement rate if certain criteria are met. Those criteria include the presence of an on-site doctor, that the physician performs the initial visit for the patient, and that the physician establish the patient’s diagnosis and treatment plan during the initial visit. If an APP appropriately performs a service “incident to” a physician’s oversight, the physician or their healthcare practice may submit a claim for 100 percent reimbursement for the patient encounter, as opposed to the 85 percent reimbursement rate if the APP billed services under their own billing number. The United States alleges that Sparrow improperly billed services under a physician’s name and reimbursement rate where the services were rendered by mid-level providers at Sparrow’s locations where the criteria for “incident-to” billing were not met. “Improper billing in our federal health care programs wastes valuable taxpayer funds that are set aside to care for the wellbeing of those most in need,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) – Chicago Region. “HHS-OIG will continue to work with our law enforcement partners to ensure that those who engage in these practices are held accountable.” U.S. Attorney Totten also commended Sparrow for its cooperation with the United States’ investigation, including undertaking an internal audit of violations alleged in the qui tam and sharing the results with the United States. The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act against Sparrow. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam case is captioned U.S. ex rel. Patricia M. Crowe, M.D. v. Sparrow Medical Group, et al. , No. 1:21-cv-00770 (W.D. Mich.). The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Carrie Almassian investigated the matter. Investigative support was also provided by the Department of Health and Human Services, Office of Inspector General. The claims resolved by the settlement are allegations only and there has been no determination of liability. ###


title: Monmouth County Man Sentenced to 45 Months in Prison for Role in $1 Million ‘Upfront-Fee’ Scheme

body_text: NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced today to 45 months in prison for his role in defrauding multiple victims through a $1 million “upfront-fee” scheme, U.S. Attorney Philip R. Sellinger announced. Jerrid Douglas, 49, of Freehold, New Jersey, was convicted on Oct. 21, 2022, of wire fraud conspiracy and four counts of wire fraud following a five-week jury trial before U.S. District Judge John Michael Vazquez, who imposed the sentence today in Newark federal court. Two co-defendants were sentenced in June 2023 for their respective roles: Roy Johannes Gillar, 51, of Las Vegas, was sentenced to six years in prison, and Harold Mignott, 60, of Voorhees, New Jersey, was sentenced to three years in prison. According to documents in this case and evidence at trial: From March 2016 through June 2016, Douglas, Gillar, and Mignott, along with a fourth conspirator, agreed to defraud the owners of the victim company of approximately $1 million. The defendants fraudulently induced the two victim company owners to enter a joint venture agreement with the defendants’ New Jersey-based shell company. The defendants falsely represented that their company could acquire and provide a “standby letter of credit” (SBLC) backed by either €1 billion in cash or highly lucrative Mexican gold bonds. An SBLC is a guarantee of payment issued by a bank on behalf of a client that is used should the client fail to fulfill a contractual commitment with a third party. The victim company wanted access to the standby letter of credit so it could purchase raw gold overseas and sell it to gold refineries. As part of the joint venture agreement, the company agreed to pay the defendants $1 million for the bank fee associated with the standby letter of credit. In order to cover up the scheme and convince the victims to approve the transfer of the funds, the defendants made numerous verbal and written misrepresentations, including providing the victims with a phony letter from a major international bank saying that it was ready, willing, and able to provide a €1 billion SBLC to the defendants’ shell company. However, after the victim company owners transmitted $800,000 of the $1 million to the defendants, the defendants failed to provide an SBLC or anything of value. Instead, the defendants misappropriated the money for their personal use. In addition to the prison term, Judge Vazquez sentenced Douglas to three years of supervised release, restitution of $1.1 million, and forfeiture of $44,750. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing. The government is represented by Assistant U.S. Attorneys Jason S. Gould and Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.


title: Coalport Man Pleads Guilty to Possessing with the Intent to Distribute Methamphetamine

component: USAO - Pennsylvania, Western

body_text: JOHNSTOWN, Pa. – A resident of Coalport, PA, pleaded guilty in federal court to charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today. Jacob Troxell, age 33, of Coalport, PA pleaded guilty to Count One of the Indictment before Senior United States District Judge Kim R. Gibson. In connection with the guilty plea, the court was advised that on or about on or about July 22, 2019, Troxell did possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine. Judge Gibson scheduled sentencing for November 29, 2023. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history, if any, of the defendant. Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government. The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation that led to the prosecution of Troxell.


title: U.S. Attorney’s Office Providing Overdose Death Investigation Trainings to Law Enforcement

component: USAO - North Carolina, Eastern

body_text: RALEIGH, N.C. – United States Attorney Michael Easley today announced that the office is offering Overdose Death Investigation Trainings to law enforcement agencies in Eastern North Carolina. Trainings were held earlier this year in Fayetteville and Carteret County. The next training is being held in Northeastern North Carolina on August 2 at the College of the Albemarle in Manteo. An additional training is planned on August 11 at the New Bern Police Department. “North Carolina reported a 22% increase in overdose deaths in 2021 with more than 4000 people losing their life in a single year, and more than 77% of the deaths likely involving fentanyl,” said Michael Easley. “Given this new and alarming trend, we want to ensure that law enforcement is equipped with the latest tools, technology, and best practices to investigate these overdose deaths and bring charges when appropriate.” The free two-hour training is only available for law enforcement and will focus on how to investigate overdose deaths and determine when charges may be appropriate. Additional trainings will be offered throughout Eastern North Carolina between now and the end of the year. Law enforcement interested in participating in this training or scheduling a future training can contact Don Connelly at USANCE.PublicInfoOfficer@USDOJ.GOV . In addition to law enforcement training, the office is also providing outreach and education through its Heroin Education Action Team (HEAT) , including educational events in local communities and in schools. ###


title: U.S. Attorney’s Office Uses Civil Forfeiture to Recover $273,082.50 for Fraud Victim

component: USAO - Mississippi, Southern

body_text: Jackson, Miss. – On July 7, 2023, U.S. District Judge Taylor B. McNeel entered Final Judgment of Forfeiture against all funds held in a Bank First account totaling $273,082.50, announced U.S. Attorney Darren LaMarca. According to the Verified Complaint for Forfeiture in Rem filed by the U.S. Attorney’s Office, the Bank First bank account—opened in February 2023—had been the recipient of fraud proceeds deposited by the perpetrator of a business email compromise scheme (BEC). “Victims of fraud often feel embarrassed or ashamed that they were victimized, and often fail to report the crime, fearing that they will appear foolish,” LaMarca said. “In reality, it is the perpetrators of the fraud who should be ashamed. Victims should know that people from all walks of life fall victim to criminals using a variety of methods to trick people and steal their money.” A BEC is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques. It causes employees of the victim company (or other individuals involved in legitimate business transactions with them) to transfer funds to accounts the scammers control. The complaint was filed April 27, alleging that on March 30, 2023, an employee of the victim—a law firm—received an email purportedly from one of the firm’s clients, falsely instructing the employee to wire transfer funds owed by the firm to the client. The spoofed email appeared to be from the firm’s client and listed the account to which the funds were to be transferred. The employee followed the instructions in the fraudulent email and wired funds into the account. A few days later, the perpetrator of the fraud used $250,000 of the funds to purchase a Wells Fargo cashier’s check and withdrew $50,000 in cash. Most of these funds were then deposited into the Bank First account. After a third-party computer company employed by the law firm investigated the wire transfer, the firm discovered that the wire transfer had been sent to the fraud perpetrator rather than the client and contacted law enforcement. The victim filed a claim in the civil forfeiture proceeding and filed a subsequent answer, in which it explained that it had been the victim of the fraud scheme. The U.S. Attorney’s Office validated the victim’s claim and asked the Court to enter a Final Judgment ordering the return of the $273,082.50 to the victim and canceling the interests of any other person or entity. “I want to thank Wells Fargo and Bank First for their cooperation and rapid response which led to a just outcome,” LaMarca said. The United States Secret Service conducted the investigation. The USAO Asset Recovery Unit team led by AUSA Clay B. Baldwin handled the matter. Business Email Compromise schemes can be prevented. Here are some tips: • Independently obtain mortgage payoff statements and confirm with verified and trusted sources. • Independently verify the authenticity of information included in correspondence and statements. • Enable Multi-Factor Authentication (MFA) on all email accounts. • Routinely change passwords. • Routinely monitor email account access, check for unauthorized email rules and forwarding settings. • Restrict wire transfers to known and previously verified accounts. • Pay using checks when the information cannot be independently verified. • Have a clear and detailed Incident Response Plan. For more information visit the Secret Service’s Preparing for a Cyber Incident page. To learn more about the Secret Service and efforts to combat Business Email Compromise fraud, please click here .


title: Federal Inmate Admits Possessing Child Pornography

body_text: CAMDEN, N.J. – A federal inmate serving a 10-year sentence for possessing child pornography admitted today to possessing images and videos of child sexual abuse while incarcerated, U.S. Attorney Philip R. Sellinger announced. Daniel Baldwin, 32, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of possession of child pornography. According to documents filed in this case and statements made in court: In June 2022, corrections officers found an SD card hidden in Daniel Baldwin’s clothing. A subsequent search of the SD card revealed hundreds of images and videos of child abuse, including depictions of prepubescent minors. Because Baldwin has a prior federal conviction for possessing child pornography, the charge of possession of child pornography depicting prepubescent children carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 28, 2023. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea. He also thanked FCI Fort Dix staff for their assistance in the investigation. The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden. baldwin.information.pdf


title: San Francisco Man Charged With Stealing More Than $340,000 In Section 8 Housing Benefits

component: USAO - California, Northern

body_text: SAN FRANCISCO - A federal grand jury in San Francisco indicted Gregory Finkelson with conspiracy, theft of government property, and money laundering, announced United States Attorney Ismail J. Ramsey, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, United States Department of Housing and Urban Development (HUD) Office of the Inspector General (OIG) Special Agent in Charge Mark Kaminsky, and IRS-Criminal Investigation Special Agent in Charge Darren Lian of the Oakland Field Office. According to the indictment, between August 2006 and February 2020, Finkelson, 63, of San Francisco, stole approximately $341,455 in Section 8 rental assistance by hiding from housing authorities his true income, his ownership interest in the house where he lived and for which he received Section 8 vouchers, and the fact that he was the owner and president of a company called American Corporate Services (ACS) – all to qualify for and receive Section 8 benefits. For example, Finkelson reported to housing authorities that from 2015 to 2017 he earned $12,000 per year working as a notary public for ACS. In fact, Finkelson was the president and sole owner of ACS, a company that earned $2.8 million in gross income between 2013 and 2018. The Section 8 program, funded by HUD, is a rent subsidy program that helps low- and moderate-income families obtain housing. To qualify for Section 8 assistance, families must have an income no higher than 80% of the area medium income. Further, to be eligible, a tenant cannot have an ownership interest in their rental unit, and tenants must accurately report their income and assets. In San Francisco, the San Francisco Housing Authority (SFHA) administers the Section 8 program for HUD. Finkelson, according to the indictment, worked with a coconspirator in Russia to hide the fact that he owned the house where he lived. Finkelson also established numerous bank accounts in his coconspirator’s name or in the name of both Finkelson and his coconspirator to conceal the fact that he received and controlled the Section 8 payments rather than a separate landlord. In addition, Finkelson subdivided the single-family home where he lived into three units. Finkelson lived in one unit, his business operated out of a second unit, and Finkelson rented out a third unit. Finkelson caused rent payments from all three units to be funneled into accounts that he controlled, and Finkelson paid personal expenses out of those accounts using rental income. For example, from January 2018 to February 2020, at Finkelson’s direction, SFHA direct deposited Section 8 funds into a Wells Fargo Bank account. Finkelson paid personal expenses with Section 8 funds from that account and transferred funds, including Section 8 payments for his home, to his business, ACS. According to the indictment, Finkelson made payments toward a vacation timeshare in Maui, Hawaii, in part with Section 8 funds designed to help low- and moderate-income families rent decent housing. In sum, the indictment charges Finkelson with conspiracy, in violation of 18 U.S.C. § 371; theft of government property, in violation of 18 U.S.C. § 641; and three counts of money laundering, in violation of 18 U.S.C. § 1956(a)(1)(B)(i). Finkelson’s initial appearance in San Francisco federal court has not yet been scheduled. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Finkelson faces a maximum sentence of 5 years in prison, and a fine of $250,000, plus restitution, if appropriate, for a violation of 18 U.S.C. § 371; 10 years in prison, and a fine of $250,000, plus restitution, if appropriate, for a violation of 18 U.S.C. § 641; and 20 years’ in prison, a fine of $500,000 or twice the value of the laundered funds, plus restitution, if appropriate, for each violation of 18 U.S.C. § 1956(a)(1)(B)(i). The court also may order an additional term of supervised release to begin after a prison term as part of any sentence. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case, with the assistance of Elizabeth Kim. The prosecution is the result of an investigation by the FBI, HUD-OIG, and IRS-CI.


title: Former Alfa Agent Pleads Guilty to Mail Fraud

component: USAO - Alabama, Northern

body_text: BIRMINGHAM, Ala. – A former Alfa agent pleaded guilty today to mail fraud, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick Davis. Bret Chappell , 44, of Warrior, pleaded guilty today before U.S. District Court Judge Anna M. Manasco to one count of mail fraud. According to the plea agreement, Chappell was a licensed insurance agent working for Alfa Corporation (Alfa) in Hayden, Alabama. Between 2019 and 2022, Chappell devised a scheme to defraud numerous victims into surrendering existing Alfa life insurance policies for cash value and purchasing new Alfa Life Insurance policies covering the victims. In one instance, he convinced an elderly victim that Alfa offered certificates of deposit for purchase, when in fact Alfa is not a financial institution and does not offer certificates of deposit. Nonetheless, Chappell convinced the victim to cash two certificates of deposit from another bank, based on the belief that the victim would receive the product promised by Chappell. Chappell also prepared fraudulent documents that were purportedly issued by Alfa and delivered these fraudulent documents to the victims. Chappell convinced the victims to endorse the checks issued to them by Alfa. However, rather than using the funds to purchase legitimate policies covering the victims, Chappell deposited the funds into his personal bank account. In total, Chappell received funds from victims totaling $862,286.55. The maximum penalty for mail fraud is 20 years in prison. The U.S. Secret Service investigated the case, along with the Alabama Department of Insurance. Assistant U.S. Attorney Catherine L. Crosby is prosecuting the case. ###


title: Hartford Drug Trafficker Sentenced to More Than 9 Years in Federal Prison

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ERIC MUNOZ, SR., also known as “50,” 46, of Hartford, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 115 months of imprisonment, followed by four years of supervised release, for trafficking fentanyl and other narcotics. According to court documents and statements made in court, in July and August 2021, the FBI’s Northern Connecticut Gang Task Force conducted eight controlled purchases of fentanyl from Munoz Sr. and his son, Eric Munoz, Jr., also known as “Bebo.” Munoz Sr. and Munoz Jr. were arrested on August 25, 2021. On that date, a search of Munoz Sr.’s residence on Harbison Avenue in Hartford revealed approximately 900 grams of loose fentanyl, 280 wax folds of fentanyl, 41 rounds of assorted ammunition, and $15,888 in cash. A search of Munoz Jr.’s residence, also on Harbison Avenue, revealed more than 900 grams of loose fentanyl, approximately 3,800 wax folds of fentanyl, approximately 300 grams of cocaine, approximately 50 grams of crack cocaine, five handguns, and $29,921 in cash. A search of an apartment located on Capitol Avenue in Hartford, which Munoz Sr. and Munoz Jr. used to store, process, and package narcotics, revealed approximately 200 grams of loose fentanyl, 5,100 wax folds of fentanyl, 130 grams of cocaine, 88 grams of crack cocaine, and eight rounds of ammunition. Munoz Sr. and Munoz Jr. have been detained since August 25, 2021. On April 6, 2023, Munoz Sr. pleaded guilty to conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl. Munoz Jr., 27, pleaded guilty to the same charge on April 11, 2023. He is scheduled to be sentenced on September 7. The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Manchester Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.


title: Youngstown Man Sentenced to 10 years for Selling Drugs and Possessing Firearms

component: Federal Bureau of Investigation (FBI)

body_text: CLEVELAND – Daniel May, 29, of Youngstown, Ohio, was sentenced today to 10 years in prison by U.S. District Judge Christopher A. Boyko, after he pleaded guilty to conspiracy to distribute drugs, distributing drugs, and to being a felon in possession of firearms and ammunition. May was ordered to serve 4 years of supervised release following imprisonment and pay a $900 special assessment. According to court documents and court records, May illegally possessed firearms, sold narcotics and conspired with others to distribute cocaine, cocaine base, heroin, fentanyl, and fentanyl analogues in the Youngstown, Ohio, area. Search warrants executed at houses associated with May resulted in the recovery of four firearms, ammunition, cocaine, cocaine base, heroin, fentanyl, and fentanyl analogues. Also seized was a drug kilogram press and over $10,000. The investigation was conducted by the Federal Bureau of Investigation (FBI), Youngstown, the Youngstown Police Department, the Boardman Police Department, the Mahoning County Sheriff’s Office, and the Campbell Police Department. This case was prosecuted by Assistant U.S. Attorney Jason M. Katz.


title: Man Pleads Guilty to Straw Purchasing Firearm Recovered Near Fatal Odessa Shooting

body_text: MIDLAND, Texas – An Odessa man pleaded guilty in a federal court in Midland on Monday to one count of false statement during purchase of a firearm. According to court documents, on June 29, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) responded to a fatal shooting in Odessa. The agents located a Ruger firearm in their investigation and confirmed that it had been purchased on May 26 by Miguel Angel Rodriguez, 21. Further investigation revealed that Rodriguez had straw purchased at least four total firearms, including the Ruger, for persons other than himself. Rodriguez is scheduled to be sentenced on Nov. 2 and faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jeffery C. Boshek II for the ATF Dallas Field Division made the announcement. The ATF is investigating the case. Assistant U.S. Attorney Joseph Mahoney is prosecuting the case. ###


title: El Paso Man Sentenced to Eight Years in Prison for Marijuana Trafficking

component: Drug Enforcement Administration (DEA)

body_text: ALPINE, Texas – An El Paso man was sentenced Monday in a federal courthouse in Alpine to 96 months in prison for possession with intent to distribute marijuana. According to court documents, Hector Bernal Jr., 36, was a passenger in a vehicle that entered the primary inspection lane at the Border Patrol Checkpoint in Alpine on Feb. 25. While Border Patrol agents determined citizenship of the driver and Bernal, a Border Patrol canine alerted the agents to the presence of illegal controlled substances. Agents then located eight large brick-shaped bundles in the rear passenger seat of the vehicle, which tested positive for characteristics of marijuana and collectively weighed approximately 112.7 kilograms, or 248.3 pounds. “This lengthy eight year sentence reflects our commitment to combatting illegal drug trafficking and protecting our communities,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I appreciate the DEA’s continued efforts to prevent drug smuggling, ensuring that those who engage in such activities are held accountable.” “Those individuals who break our nation’s laws by distributing illegal narcotics will be pursued by the men and women of the DEA,” said Special Agent in Charge Greg Millard of the DEA’s El Paso Division. “We thank our federal partners for their assistance in this case.” On June 27, the driver, codefendant Hugo Mancinas, was sentenced to 60 months in prison for possession with intent to distribute marijuana. The DEA and U.S. Border Patrol investigated the case. Assistant U.S. Attorney Amy Greenbaum prosecuted the case. ###


title: New York Man Sentenced to 11 Years in Prison for Conspiring to Distribute Fentanyl, Methamphetamine and Heroin

body_text: NEWARK, N.J. – A New York man was sentenced to 132 months in prison for participating in a conspiracy to distribute fentanyl, methamphetamine and heroin in New Jersey from locations in Manhattan, U.S. Attorney Philip R. Sellinger announced today. Juan Carlos Merced Moreno, aka “Samuel,” 45, of Manhattan, New York, pleaded guilty by videoconference on Dec. 20, 2022, before U.S. District Judge Claire C. Cecchi to a superseding information charging him with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl, 50 grams or more of a mixture and substance containing methamphetamine, and 100 grams or more of a mixture and substance containing a detectable amount of heroin. Judge Cecchi imposed the sentence on July 25, 2023, in Newark federal court. According to documents filed in this case and statements made in court: Moreno admitted that from November 2020 through January 2021 he conspired with others to distribute and possess with intent to distribute fentanyl, methamphetamine, and heroin. He admitted participating in the conspiracy from locations in Manhattan and that some of the controlled substances were transported to New Jersey. In addition to the prison term, Judge Cecchi sentenced Moreno to four years of supervised release. U.S. Attorney Sellinger credited members of the Department of Homeland Security, Homeland Security Investigations, New York City Airport Border Enforcement Security Task Force under the direction of Ivan J. Arvelo; special agents of Homeland Security Investigations Newark Airport Border Enforcement Security Task Force, under the direction of Special Agent in Charge Ricky J. Patel; members of the New York Police Department, under the direction of Commissioner Edward Caban; and investigators and assistant prosecutors from the Hudson County Prosecutor’s Office, under the direction of Hudson County Prosecutor Esther Suarez, with the investigation leading to today’s sentencing. The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.


title: El Paso Man Sentenced to More Than Six Years in Prison for Trafficking Cocaine

body_text: ALPINE, Texas – An El Paso man was sentenced Monday in a federal court in Alpine to 78 months in prison for one count of conspiracy to possess with to distribute cocaine and a second count of possession with intent to distribute cocaine. According to court documents, Jaime Gabriel Juarez, 50, was pulled over on Interstate 20 in Reeves County on Dec. 2, 2022. A search of his vehicle revealed multiple rectangular-shaped packages wrapped in plastic and resembling packages typically associated with kilogram quantities of narcotics. The substances in the packages tested positive for properties and characteristics of cocaine. Juarez admitted he was transporting the 2.5 kilograms of cocaine to Odessa. Juarez was found guilty in a jury trial on April 18. “I’m grateful to our law enforcement partners for their outstanding work in this case,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Their efforts led to the arrest and conviction of a drug smuggler who is now spending the next six years in prison.” “We want the communities where we live to be safer and healthier,” said Special Agent in Charge Greg Millard of the DEA’s El Paso Division. “Therefore, we will not tire of pursuing those who manufacture and distribute illicit narcotics.” The DEA and Reeves County Sheriff’s Department investigated the case. Assistant U.S. Attorney Amy Greenbaum prosecuted the case. ###


title: Leader of White Supremist Gang Receives 25 Years in Federal Prison for Armed Drug Trafficking and Assaulting an Officer

body_text: NEW BERN, N.C. – A self-proclaimed founder and leader of a white supremacist gang, known as the Aryan Kings (“AK”), was sentenced today to 25 years in prison for trafficking heroin and methamphetamine, illegal possession of a firearm, and assaulting a federal officer. David Milam, aka “DC,” age 39, pled guilty to the charges. “We are partnering with local law enforcement to dismantle the leadership of violent drug trafficking gangs like the Aryan Kings. This defendant was found with narcotics, cash, white supremacist paraphernalia, and a half-dozen guns, including two assault rifles stored in his home,” stated U.S. Attorney Michael Easley. “After his arrest, Milam continued his disregard for the law, even assaulting law enforcement officer in a local jail. I am grateful to the Onslow County Sheriff’s Office, DEA, and ATF for their focus on this case and commitment to keeping North Carolina a safe place to live, work and raise a family.” According to court documents and other information presented in court, Milam was the self-proclaimed founder and leader of a criminal organization that calls itself the Aryan Kings (“AK”), which has been identified as a white supremacist organization. Around 2018, investigators received information that the Aryan Kings were engaged in criminal activity in the Onslow County area, including high-volume drug trafficking; violence, including assaults using machetes; witness intimidation; and discharging a firearm at a law enforcement officer. During the course of the subsequent investigation into Milam and the Aryan Kings, agents executed search warrants on residences associated with Milam. Multiple guns, drugs, cash, and white supremacist paraphernalia were located. In Milam’s bedroom, law enforcement found 31 grams of methamphetamine and 27 grams of heroin. In total, Milam was found accountable for at least two kilograms of methamphetamine during the course of the conspiracy. Agents seized a loaded .40 caliber handgun, two 9 mm handguns, a .22 caliber rifle, and two assault rifles. White supremacist paraphernalia recovered included a gas mask marked with “AK” (for Aryan Kings), swastikas, and an “88,” which stands for Heil Hitler. In addition, a notebook containing the Aryan Kings Creed, an American flag with swastikas glued on it, a spear with a swastika, and other items were also found. Based on those search warrants, Milam pled guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and 100 grams or more of heroin; possession with intent to distribute a quantity of methamphetamine and heroin and possession of a firearm by a felon. Between March and July 2021, while Milam was awaiting sentencing on the federal drug and gun charges, Milam was involved with others in a scheme to import contraband into the Pamlico County Jail, where he was being held. On July 23, 2021, officers searched Milam’s cell for illegal contraband. Milam refused to leave the cell and punched an officer in the face. A second officer was also injured trying to subdue Milam. “Poisonous drugs continue to flow into our communities at the expense of too many lives,” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration, Atlanta Division. “This violent drug trafficker must now deal with the consequences of his actions.” “The result of this collaborative effort should serve as a warning to those who think bringing drugs and violence into our communities will go unpunished,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “ATF and our partners will continue to work to prevent violent crime and bring those responsible for it to justice.” Onslow County Sheriff Chris Thomas said, “This case shows the value of the partnership between the Onslow County Sheriff’s Office, our Federal Partners and the US Attorney’s Office with our efforts to remove violent criminals from our communities.” This is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Onslow, Duplin, Pamlico and Craven County Sheriffs’ Offices and the Farmville Police Department investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case Nos. 4:22-cr-00025-FL, 7:19-CR-102-FL, and 7:19-cr-00176-FL.


title: Bristol Man Pleads Guilty Fraud and Tax Offenses

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, announced that JOHN HORVATH, 72, of Bristol, waived his right to be indicted and pleaded guilty today in New Haven federal court to fraud and tax offenses. According to court documents and statements made in court, Horvath was licensed by the State of Connecticut as a resident insurance producer, which authorized him to sell various forms of insurance. In that capacity, he sold annuity contracts issued by Allianz Life Insurance Company of North America (“Allianz”) to clients. Beginning no later than July 2015 and continuing until April 2021, Horvath defrauded several clients by advising them that they could achieve better rates of return through alternative investments, rather than their existing annuity contracts, and that he could broker and manage those investments for them. Victim-investors gave Horvath investment funds with the expectation he would manage the funds for them. Instead, Horvath commingled the victim-investors’ funds with his own and used the pooled money to pay personal expenses and repay earlier victim-investors. Through this scheme, Horvath defrauded at least eight victims out of approximately $1,189,200. In addition, Horvath failed to pay income taxes on his substantial income from the scheme, resulting in a loss to the government of $267,739 for the 2015 through 2020 tax years. Horvath pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on October 18. Horvath is released on a $50,000 bond pending sentencing. This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Conor M. Reardon.


title: Ashville Man Pleads Guilty to Producing and Possessing Material Depicting the Sexual Exploitation of a Minor

body_text: JOHNSTOWN, Pa. – A resident of Ashville, PA, pleaded guilty in federal court to charges of production and possession of material depicting the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today. Michael Sollenberger, age 41, of Ashville, PA pleaded guilty to Counts One, Two, and Three of the Indictment before Senior United States District Judge Kim R. Gibson. In connection with the guilty plea, the court was advised that from on or about Jan. 8, 2019 to Jan. 8, 2020, and from on or about Feb. 21, 2018 to Feb. 21, 2019, Sollenberger produced images of minors engaged in sexually explicit conduct using materials that were shipped or transported in interstate or foreign commerce. Further, from on or about June 10, 2020 to June 12, 2020, Sollenberger possessed images of minors engaged in sexually explicit conduct, which were produced using prepubescent minors engaging in sexually explicit conduct. The images were produced using materials that were shipped or transported in interstate or foreign commerce. Judge Gibson scheduled sentencing for November 30, 2023. The law provides for a total sentence of 120 years in prison, a fine of $750,000, or both. According to the terms of the plea agreement accepted by the Court, Sollenberger will be sentenced to at least 35 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history, if any, of the defendant. Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government. The Department of Homeland Security Investigations and Pennsylvania State Police conducted the investigation that led to the prosecution of Sollenberger. This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.


title: Pittsburgh Resident Pleads Guilty to Charges of Robbery, Brandishing and Discharging a Firearm During a Crime of Violence, and Possession of a Firearm by a Convicted Felon

body_text: PITTSBURGH, PA - A resident of Pittsburgh, pleaded guilty in federal court to charges of robbery, brandishing and discharging a firearm during a crime of violence, and possession of a firearm by a convicted felon, United States Attorney Eric G. Olshan announced today. Eric Lee Jones, age 34, of Pittsburgh, PA pleaded guilty to 7 counts before United States District Judge Christy Criswell Wiegand. In connection with the guilty plea, the court was advised that Jones robbed or attempted to rob four Allegheny County businesses in March 2022. On March 6, 2022, Jones robbed the Fox’s Pizza in Oakmont. During that robbery, Jones shot the owner of the restaurant, who was working at the time, several times in the chest, stomach, and legs. The owner survived, but was seriously injured. On March 10, 2022, Jones robbed the Sunoco on Hulton Road in Verona, and pointed a gun at the head of an employee as he did so. On March 15, 2022, Jones attempted to rob the Family Dollar on Frankstown Avenue in Pittsburgh, and during the attempted robbery he brandished a pistol, and fired it one time in the store. Less than 30 minutes later, Jones attempted to rob the Edgewood Avenue Express on Edgewood Avenue. During this last attempted robbery, Jones shot the owner of the Edgewood Avenue Express once, and attempted to shoot him again but Jones’ pistol malfunctioned. Fortunately, the storeowner was not seriously hurt. Judge Wiegand scheduled sentencing for November 29, 2023 at 10:00 a.m. The law provides for a mandatory minimum sentence of at least 17 years and a maximum sentence of life, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Pending sentencing, the court ordered that the defendant remain detained. Assistant United States Attorney Doug Maloney is prosecuting this case on behalf of the government. The successful investigation and prosecution was based on significant and timely interagency cooperation between the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Allegheny County District Attorney’s Office, the Allegheny County Police Department, the Penn Hills Police Department, the Pittsburgh Bureau of Police, as well as the Oakmont and Edgewood Police Departments.


title: Doctor Convicted of Unlawfully Distributing Opioids

component: Criminal Division

body_text: A federal jury in the Middle District of Tennessee convicted a medical doctor today for unlawfully distributing controlled substances. According to court documents and evidence presented at trial, Bowdoin Smith, 67, of Carthage, Tennessee, unlawfully prescribed controlled substances, including opioids such as oxycodone and morphine. Smith, a doctor of osteopathy, owned and operated a general practice medical clinic in Carthage where he knowingly prescribed opioids outside the usual course of professional practice and without a legitimate medical purpose. In 2012, the Tennessee Department of Health placed Smith’s medical license on probation for three years because he routinely prescribed greater amounts of controlled substances than were medically necessary for his patients. After the probation was lifted, Smith continued to write unlawful prescriptions between 2016 and 2019, regularly ignoring the signs of drug abuse and addiction in his patients. The jury convicted Smith of three counts of unlawful distribution of controlled substances. He faces a maximum penalty of 20 years in prison on each count. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Henry C. Leventis for the Middle District of Tennessee, Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration (DEA) Louisville Field Division, Special Agent in Charge Tamala Miles of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement. The DEA, HHS-OIG, and TBI investigated the case. Trial Attorneys Leslie Williams Fisher and Kelly Lyons of the Criminal Division’s Fraud Section are prosecuting the case. The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in late 2018, ARPO has partnered with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout Alabama, Kentucky, Ohio, Virginia, Tennessee, and West Virginia to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. Over the past three years, ARPO has charged over 115 defendants collectively responsible for issuing prescriptions for over 115 million controlled substance pills. To date, more than 84 ARPO defendants have been convicted. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit .


title: Mexican National Sentenced to Life in Prison for Kidnapping

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – Jonathan M. Bravo-Lopez (also known as “Jonathan Vravo,” and “Shadow”), 27, a citizen of Mexico residing in Kansas City, Mo., was sentenced by U.S. District Judge Roseann Ketchmark to life in federal prison for conspiracy to commit kidnapping and kidnapping resulting in death. Bravo-Lopez was also sentenced to 24 months for unlawful reentry, which the court ordered to be served consecutive to the life sentences. On Dec. 16, 2022, Bravo-Lopez and co-defendant Juan D. Osorio (also known as “Spexx”), 30, also a citizen of Mexico residing in Kansas City, Mo., were found guilty at trial of conspiracy to commit kidnapping and kidnapping resulting in death. Osorio was also found guilty of being an illegal alien in possession of a firearm. Bravo-Lopez was also found guilty of illegally reentering the United States after having been deported in 2016. Osorio was sentenced on June 20, 2023, to life in federal prison without parole. Evidence introduced during the trial indicated that Osorio and Bravo-Lopez conspired to kidnap Cristian Escutia in an attempt to rob him of money. They transported Escutia across state lines from Missouri to Kansas before fatally shooting him on April 3, 2017. Osorio and Bravo-Lopez arranged to purchase $300 of marijuana from Escutia as a ruse to lure him into their kidnapping plan. On April 3, 2017, they met Escutia outside his residence and forced him into their vehicle, a Chrysler Pacifica, at gunpoint. Co-defendant Marco A. Sosa-Perea, 27, of Kansas City, Mo., who had remained in the car, drove them away from the scene of the kidnapping. The kidnapping was captured by the video surveillance system outside a nearby residence. When they drove to the 200 block of Donovan Road in Kansas City, Kan., they forced Escutia out of the vehicle. Escutia was shot three times and left to die on the side of the road. Osorio, who is in the United States unlawfully, was in possession of an Action Arms Uzi .45-caliber semi-automatic pistol when he was arrested on April 7, 2017. Sosa-Perea was sentenced on Feb. 6, 2023, to 10 years in federal prison without parole after pleading guilty to his role in the kidnapping conspiracy. This case was prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Matthew A. Moeder. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Kansas City, Kan., Police Department.


title: Former Chairman of 1 Global Indicted for Running $250 Million Securities Fraud Scheme

component: USAO - Florida, Southern

body_text: MIAMI – Carl R. Ruderman, 81, former chairman of 1 Global Capital LLC (“1 Global”) was indicted yesterday with orchestrating a sprawling fraud scheme that affected more than 3,400 investors in 42 different states. Four of Ruderman’s co-conspirators have already pleaded guilty for their role in this fraud. Alan G. Heide, 65, of Lake Worth, Florida, the former 1 Global chief financial officer, pleaded to a single count information, charging him with one count of conspiracy to commit securities fraud (case no. 19-cr-60231), and was sentenced to 60 months in prison by U.S. District Judge Roy K. Altman. Judge Altman also ordered Heide to pay over $57 million in restitution to the victims of the scheme. Andrew Dale Ledbetter, 81, of Fort Lauderdale, Florida, pleaded guilty to conspiracy to commit wire fraud and securities fraud (case no. 20-cr-60103), and was sentenced by Judge Altman to 60 months in prison. Judge Altman also ordered Ledbetter to pay over $148 million to the victims of the scheme. Steven Allen Schwartz, 78, of Delray Beach, Florida, pleaded guilty to conspiracy to commit wire fraud and securities fraud (case no. 20-cr-60003), and was sentenced to 24 months in prison by Judge Altman. Judge Altman also ordered Schwartz to pay over $36 million in restitution to the victims of the scheme. Jan Douglas Atlas, 78, of Fort Lauderdale, Florida, pleaded guilty to conspiracy to commit wire fraud and securities fraud (case no. 19-cr-60258), and was sentenced to eight months in prison by Judge Altman. Judge Altman also ordered Atlas to pay over $29 million in restitution to the victims of the scheme. According to the indictment, 1 Global was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”). Ruderman was the chairman of 1 Global and Heide was the chief financial officer. Schwartz was a director and consultant at 1 Global, and also held out as a chief operating officer in the company’s marketing materials. Ledbetter was an attorney licensed in the State of Florida who had an of counsel position at Law Firm #1 and acted in a fundraising capacity at 1 Global beginning around 2015. Atlas was a partner at Law Firm #1 and acted as outside counsel for 1 Global. The indictment alleges that to attract investments, Ruderman and others, made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements. Allegedly, investors were falsely told that 1 Global had audited financials by a public accounting firm, that the investor’s money would be spent on the MCAs, and that they could expect double-digit returns on their investments, among other things. It is alleged that Ruderman spent 1 Global’s investor’s money on credit card payments, vacation travel, insurance payments for his art collection and valuable jewelry, drivers, nannies, housekeepers, mortgage payments for his house, tuition, and payments for a luxury car driven by his wife. Ruderman also diverted 1 Global investor money to businesses benefitting him and his family, without the investors’ knowledge. According to the allegations, substantial questions arose during the operation of the business as to whether 1 Global was offering or selling a security and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission. Allegedly, these questions were raised by investors, investment advisors, and regulators. As alleged in the charging documents, Ruderman knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements. Such a classification would undermine the profits and fees that Ledbetter and other principals at 1 Global would be able to obtain from 1 Global’s operations. As alleged in the indictment, at the request of Ruderman, Atlas authored two opinion letters in 2016 containing false information that Atlas allegedly knew would be used by 1 Global to operate the business unlawfully. The opinion letters falsely described the duration of the investment, among other things, omitting the automatic renewal aspect and that the investment was being targeted toward retail, non-sophisticated investors (such as IRA account holders). Allegedly, Ruderman and others at 1 Global used and relied on Atlas’s opinion letters to continue to raise money illegally, in numerous pitches and communications to investment advisors and investors. 1 Global filed for bankruptcy on July 27, 2018. As of that time, according to documents from related cases, 1 Global had more than 3,400 investors and had raised more than $250 million during the scheme. The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending. Information about the related cases can be found here: https://www.justice.gov/usao-sdfl/1Global-Capital . U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, and Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region, made the announcement. U.S. Attorney Lapointe commended the investigative efforts of FBI Miami, IRS-CI Miami, and the FDIC-OIG, Atlanta Region, for their assistance. Assistant U.S. Attorneys Elizabeth Young and Amanda Perwin are prosecuting this case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20303. ###


title: Norfolk Man Sentenced for Kidnapping his Child’s Mother at Gunpoint

body_text: NORFOLK, Va. – A Norfolk man was sentenced today to 144 months in prison for the violent kidnapping of his child’s mother. According to court documents, on May 19, 2022, James Maloyd Hunter, II, 32, kidnapped the mother of his child outside of her residence. Hunter was upset because the victim allowed her new boyfriend to be around the child. At approximately 5:35 in the morning, Hunter, with two co-conspirators, went to the victim’s residence in Norfolk. As the victim was leaving for work, Hunter confronted her, placed a firearm against her head, and forced her into his vehicle. Once inside the vehicle, he strangled the victim to stop her from screaming. She was in pain and unable to breathe. Hunter and his co-conspirators fled the scene to a hotel on Military Highway. Before departing the hotel, he zip-tied the victim’s hands together and forced her onto the floor of the back seat so no one could see her as they left the area. On May 20, 2022, Hunter was located in Hocking County, Ohio. Local police stopped his vehicle and freed the victim. Upon examining her, they found noticeable signs of injury, including marks around her neck consistent with strangulation. Detectives recovered from Hunter’s vehicle a package of zip ties, a roll of duct tape, a hunting style knife, a pair of scissors, and a receipt from Superior Pawn in Norfolk for the purchase one week before of a 9mm Ruger, semiautomatic handgun. A search of Hunter’s phone revealed that he conducted multiple web searches for topics such as “tranquilizer darts for humans,” “directions to Colorado,” “do you need a passport to cross into Canada,” “sleeping sedative,” “how to put oil filter silencer on handgun,” and “homemade suppressor for handheld pistol.” Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ramin Fatehi, Norfolk Commonwealth’s Attorney; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Mark Talbot, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson. The U.S. Attorney’s Office for the Eastern District of Virginia expresses its appreciation to the Hocking County Sheriff’s Office for their significant assistance in this case. Special Assistant U.S. Attorney Graham Stolle prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-3.


title: Owner of Brighton-Based Physical Therapy Clinic Sentenced to Three Years in Prison for Fraud Scheme

component: USAO - Massachusetts

body_text: BOSTON – A Boston woman was sentenced today in federal court in Boston for her role in a scheme to defraud multiple insurance providers for physical therapy services that were not provided to patients. Gyulnara Bayryshova, 57, was sentenced by U.S. District Court Judge Richard G. Stearns to three years in prison and two years of supervised release. Bayryshova was also ordered to pay restitution of $7,383,756 and forfeiture of $7,834. In April 2023, Bayryshova pleaded guilty to one count of conspiracy to commit mail fraud. Bayryshova was indicted in February 2021 along with co-defendants Anna Barenboym, Slava Pride and Raya Bagardi. Bayryshova was the owner of Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic. From October 2018 through June 2020, Bayryshova and her co-defendants conspired to cause multiple insurance companies to reimburse them for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Bayryshova and her co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. BPT also paid patients for referrals and referred patients to attorneys to assist with patients’ insurance settlements. On July 12, 2023, Pride was sentenced to two years in prison, two years of supervised release and was ordered to pay restitution of over $2.3 million. On July 19, 2023, Bagardi was sentenced to two years of supervised release, with the first year to be spent in home confinement and was also ordered to pay restitution of over $2.3 million. Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Commissioner Michael Cox; and Quincy Police Chief Mark Kennedy made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division is prosecuting the case.