title: Puerto Rico Man Indicted and Arrested for Bankruptcy Fraud, PPP Loan Fraud, Bank Fraud and Aggravated Identity Theft

body_text: SAN JUAN, Puerto Rico – On July 31, 2024, a federal grand jury in the District of Puerto Rico returned an indictment charging Richard Ramos-Hernández, from Humacao, Puerto Rico, with bankruptcy fraud and false statement under penalty of perjury in a bankruptcy case, false statement on loan and credit applications, bank fraud, and aggravated identity theft, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. According to court documents, from January 4, 2019, through May 20, 2024, defendant Richard Ramos-Hernández devised and executed a scheme to defraud creditors in a bankruptcy proceeding in the District of Puerto Rico by means of materially false and fraudulent representations, all in violation of Title 18, United States Code, Sections 152 and 157. On January 4, 2019, Richard Ramos-Hernández filed and caused the filing of a voluntary petition for relief under Chapter 13 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Puerto Rico, in the proceeding titled In re: RICHARD RAMOS HERNANDEZ , Case No. 19-00021(ESL). The indictment alleges that during the bankruptcy proceedings, Ramos-Hernández concealed property and income and failed to disclose to the trustee charged with control of the debtor’s property and from the creditors and the United States the creation, operation, ownership, and control of All Market and Bakery LLC and Smart Energy General Contractors LLC. All Market and Bakery LLC was a limited liability company registered on February 11, 2015, with the Puerto Rico Department of State and operated as an establishment in the Municipality of Humacao that produced and sold baked goods, food, beverages, and convenience related products. Smart Energy General Contractors LLC was a limited liability company registered on June 12, 2018, with the Puerto Rico Department of State, that performed and provided construction related services to private and government clients. The defendant failed to disclose income received from Smart Energy General Contractors LLC, which had been awarded contracts with the municipalities of Canóvanas and Ceiba exceeding $800,000. Additionally, Ramos-Hernández is charged with making false statements in relation to a $15,000 Paycheck Protection Program (PPP) loan in violation of Title 18, United States Code, Section 1014. On April 30, 2020, Ramos-Hernández, on behalf of All Market and Bakery LLC, submitted a PPP loan application through a third party, which was approved and disbursed by May 11, 2020. The defendant knowingly used, without lawful authority, the name, address, and signature of a person with initials M.M.T. to submit the application for the PPP loan, therefore engaging in bank fraud and aggravated identity theft in violation of Title 18, United States Code, Sections 1028A and 1344. If convicted, Ramos-Hernández may be sentenced to a maximum term of imprisonment of five years for each count under 18 U.S.C §§157 and 152 (Bankruptcy Fraud) and a fine of $250,000; a maximum term of imprisonment of 30 years and a fine of $1,000,000 for violations of 18 U.S.C. §§ 1014 and 1344 (Bank Fraud); up to 30 years for false statement on loan and credit applications; and a mandatory consecutive sentence of two years of imprisonment for each aggravated identity theft count. “The defendant used bankruptcy proceedings to defraud the United States Trustee Program and creditors to illegally benefit himself,” said U.S. Attorney Muldrow. “The U.S. Attorney’s Office remains vigilant in investigating bankruptcy-related fraud and appreciate the excellent work of the Office of the United States Trustee.” “Together with U.S. Attorney Muldrow and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” said U.S. Trustee Mary Ida Townson for Georgia, Florida, Puerto Rico and Virgin Islands (Region 21). “I am thankful for the appointment by the U.S. Attorney of two Special Assistant U.S. Attorneys from our San Juan office that will allow us to prosecute all those who engage in fraudulent conduct.” The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. “Maintaining integrity in bankruptcy proceedings and ensuring eligibility for government benefits are essential to upholding the law and promoting fairness in our society,” stated Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “It is crucial that individuals are truthful in these matters to maintain the integrity of the system and ensure that resources go where they are truly needed. We ask that anyone with information on bankruptcy -or any other fraud scheme- report it by leaving a tip online through tips.fbi.gov or calling 787-987-6500. Here in the FBI we are committed to bringing consequences upon those who insist on mocking our system.” This case is being prosecuted by Special Assistant U.S. Attorney José Capó Iriarte and Special Assistant U.S. Attorney José C. Díaz Vega from the Office of the U.S. Trustee. The case was investigated by the Federal Bureau of Investigation (FBI). An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Upshur County Man Pleads Guilty to Conspiring to Fraudulently Obtain Unemployment and COVID-19 Benefits

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – Christopher Grant, 41, of Buckhannon, pleaded guilty today to conspiracy to steal public money, property or records. Grant admitted that he fraudulently obtained approximately $14,336 in unemployment benefits, including COVID-19 supplementary funds, and a $20,832 Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). According to court documents and statements made in court, on or about March 25, 2020, Grant applied for unemployment compensation after he was laid off as a sales manager at a Charleston auto dealership when the COVID-19 pandemic began. Grant legitimately received unemployment benefits until the week ending April 18, 2020, when he returned to work. Grant admitted that from at least April 25, 2020 through at least July 25, 2020, he continued to apply for unemployment benefits that he knew he was not entitled to because he had returned to work. Grant fraudulently obtained approximately $14,336 in unemployment benefits, including supplementary funds provided by the Federal Pandemic Unemployment Compensation Program (FPUC) of the CARES Act. WorkForce West Virginia administers the unemployment compensation program for the State of West Virginia. Grant admitted that as part of his scheme, he falsely certified on the WorkForce West Virginia website for 14 consecutive weeks that he was entitled to unemployment benefits. Grant submitted the false certification answers while using his personal electronic device in St. Albans. On March 21, 2021, Grant applied for a PPP loan because he had earned income as an independent contractor during previous tax years. PPP loans were available to qualifying independent contractors and self-employed individuals adversely impacted by the COVID-19 pandemic to replace their normal income and for certain other expenses. Grant admitted that he falsely represented that he had earned $104,580 as an independent contractor for the prior tax year when he knew he had only earned $33,900. Grant further admitted that he made this false representation in order to receive $20,832, the maximum loan amount available to independent contractors. Grant also admitted that he used the fraudulently obtained unemployment benefits and PPP loan funds to make purchases and pay his bills. Grant is scheduled to be sentenced on November 14, 2024, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a $250,000 fine. Grant also owes $35,168 in restitution. United States Attorney Will Thompson made the announcement and commended the investigative work of the WorkForce West Virginia Integrity Section, the National Aeronautics and Space Administration Office of Inspector General (NASA OIG), the Litigation Financial Analyst with the U.S. Attorney’s Office and the West Virginia State Police – Bureau of Criminal Investigation (BCI). Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Andrew J. Tessman is prosecuting the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-113.


title: Three Additional Dominican Nationals Extradited to Face “Grandparent Scam” Charges in New Jersey

component: USAO - New Jersey

body_text: NEWARK, N.J. – Three residents of Santiago de los Caballeros, Dominican Republic, were extradited to the United States last week and made their initial appearance in Newark federal court yesterday on charges relating to their participation in a sprawling “grandparent scam” that defrauded elderly Americans out of millions of dollars. Juan Rafael Parra Arias, aka “Yofre,” 41; Miguel Angel Vasquez, aka “Miguel Disla,” 24; and Jose Ismael Dilone Rodriguez, 34, are among 11 Dominican Nationals charged in a 19-count indictment filed in the U.S. District Court for the District of New Jersey and unsealed on April 29. Following their initial appearance today, the court ordered the three men detained pending trial. The extradition of Parra Arias, Vasquez, and Dilone Rodriguez follows that of their co-conspirators Rafael Ambiorix Rodriguez Guzman, aka “Max Morgan,” 59, and Felix Samuel Reynoso Ventura, aka “Fili” and “Filly the Kid,” 37, who appeared in Newark federal court on July 22 to answer the indictment. According to the indictment, Parra Arias, Vasquez, Dilone Rodriguez, and their conspirators engaged in a long-running “grandparent” or “family in need of bail” scam against hundreds of seniors across the United States, including in New Jersey, New York, Pennsylvania, and Massachusetts. Parra Arias is alleged to have led a network of call centers in Santiago, Dominican Republic, while Vasquez and Dilone Rodriguez worked in these centers to recruit co-conspirators in the United States. As detailed in court filings, members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested in connection with an accident and needed help. Once openers tricked victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers,” allegedly impersonated defense attorneys, police officers or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones. The cash was typically retrieved by couriers – including those recruited and dispatched by Parra Arias, Vasquez, and Dilone Rodriguez – from the victims’ homes, or mailed by victims at the direction of the closers. Parra Arias, Vasquez, and Dilone Rodriguez each face multiple charges, including mail and wire fraud conspiracy, wire fraud, mail fraud, conspiracy to commit money laundering, and money laundering. If convicted, they each face a maximum penalty of 20 years in prison for each count, a maximum fine of $250,000 for each count of mail and wire fraud and a maximum fine of $500,000 for money laundering conspiracy and money laundering. “As alleged, these three defendants played a role in a scheme that relied on the love and devotion of elderly victims in order to cheat them out of millions of dollars. In this ‘grandparents’ scam,’ some of the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. Conspirators like Parra Arias, Vasquez, and Dilone Rodriguez allegedly operated the call centers or dispatched couriers to pick up money from the victims. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.” U.S. Attorney Philip R. Sellinger “The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue criminals who defraud victims through so-called ‘grandparent scams,’” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable Americans from abroad. We thank the government of the Dominican Republic for extraditing these defendants to the United States to face charges.” “These defendants and their co-conspirators are accused of heartlessly robbing countless elderly victims of their precious time and often their life savings – all from more than 1,500 miles away,” said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “Parra Arias, Vasquez, and Dilone Rodriguez were among the 16 individuals charged in this appalling scheme, which spanned at least four U.S. states and allegedly threatened hundreds of innocent Americans’ livelihoods. The merciless greed of perpetrators is boundless, but is no match for HSI New York’s El Dorado Task Force, its Cyber Intrusion Group and the greater law enforcement community. I am proud to stand alongside our global partners in our relentless commitment to the safety and overall wellbeing of the vulnerable public.” “The grandparent scam is a cruel fraud scheme that deliberately preys on elderly and vulnerable persons within society. Perpetrators, often cowardly operating off-shore, cause extreme emotional and financial harm to the innocent people they target in commission of this crime,” said Acting Special Agent in Charge Bradley Parker of the Social Security Administration Office of the Inspector General (SSA-OIG) Boston New York Field Division. “SSA OIG proudly joined HSI, the FBI, the Justice Department and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries and we appreciate the diligence of the U.S. Marshals Service in facilitating the extradition of these defendants from the Dominican Republic to New Jersey to hold them accountable for their actions.” “We are now one step closer to holding accountable the alleged fraudsters who financially exploited hundreds of elderly Americans,” said Commissioner Edward A. Caban of the New York City Police Department (NYPD). “This should serve as a reminder to other criminals about the extensive reach of New York law enforcement and our unwavering commitment to delivering justice to all victims. I applaud our NYPD investigators and all of our federal partners for their dedication to this important case.” HSI, SSA-OIG, NYPD and the FBI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from the Dominican Republic of the defendants with assistance from the United States Marshals Service. Justice Department officials also recognized the critical cooperation of the Dominican government in effecting the extradition of Parra Arias, Vasquez, and Dilone Rodriguez pursuant to the treaty between the two countries. Assistant U.S. Attorney Carolyn Silane for the District of Jersey and Trial Attorneys Jason Feldman, Joshua Ferrentino and Emily Powers of the Civil Division's Consumer Protection Branch are prosecuting the case. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available. More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch . Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov / or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Man Admits Stealing Guns, Other Items from Farm and Home Store in Potosi

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

body_text: ST. LOUIS – A Missouri man on Monday admitted stealing firearms and other items from a farm and home store in Potosi, Missouri in 2021. Gregory Snyder, 45, of Bismarck, in St. Francois County, pleaded guilty in U.S. District Court in St. Louis to theft of firearms from a federally licensed firearms dealer and possession of body armor by a violent felon. He admitted in his guilty plea that he hid in the store on Sept. 19, 2021. He emerged after closing time to steal power tools, camping gear and 13 guns, including eight rifles and five shotguns. Snyder loaded the guns and some of the other stolen goods in his car, and then took them to a river in eastern Washington County. He returned early the next morning for more, but by then, Potosi Police Department officers had spotted evidence of the burglary. They stopped and questioned Snyder, who no longer had the stolen goods in his car. They arrested Snyder later that day. He denied being involved in the burglary but was drinking a Mountain Dew that had been stolen from the store. He was also wearing clothing matching that worn by the burglar and had stolen Kevlar vests in his car. Two of the shotguns have been recovered. The other guns are among more than $12,000 in stolen goods that remain missing. Snyder is scheduled to be sentenced November 6. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Potosi Police Department are investigating the case. Assistant U.S. Nino Przulj is prosecuting the case. Anyone with information about the stolen firearms is asked to contact the ATF at 314-768-3120 or online at https://www.atf.gov/contact/atf-tips or the Potosi Police at 573-438-5468. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Owner of South Gate-Based Tattoo Removal Business Pleads Guilty to Health Care Fraud Scheme That Recruited Paraplegics

component: USAO - California, Central

body_text: LOS ANGELES – The owner of a tattoo removal business in South Gate pleaded guilty today to federal criminal charges for recruiting paraplegics in a health care fraud scheme that netted more than $1.7 million and for cheating on his taxes. Joseph Tusia, 60, of Leominster, Massachusetts, pleaded guilty to a two-count information charging him with health care fraud and tax evasion. According to his plea agreement, Tusia operated a laser tattoo removal business in South Gate and 10 durable medical equipment supply companies (DMEs) in California, Nevada, and Massachusetts. Tusia controlled the tattoo removal companies and the DMEs but intentionally withheld his name from bank accounts and state registrations to evade tax liability. On December 30, 2015, Tusia and a co-schemer submitted an application to Anthem Blue Cross (“Anthem”) for a small group health insurance plan. Anthem’s small group plan permitted benefits and health coverage for permanent employees who worked full-time. Despite the eligibility requirements, Tusia caused to be submitted to Anthem the names of nine individuals purported to be full-time employees of Tattoo Removal and a person who was a dependent of the Tusia. None of these purported employees were employed by Tattoo Removal or eligible for health insurance coverage under Tattoo Removal’s plan with Anthem. According to his plea agreement, Tusia identified the Purported Tattoo Removal Employees from his friends and associates who were paraplegic and required medical supplies, knowing and expecting that the Purported Tattoo Removal Employees would purchase their medical supplies from the DMEs that were controlled by Tusia and his associates. From March 2016 to June 2020, Tusia and his co-schemers submitted fraudulent claims to Anthem on behalf of the DMEs for medical supplies provided to the purported employees, knowing that none of them were eligible for coverage. As a result of these fraudulent claims, Anthem paid the DMEs controlled by Tusia approximately $1,731,215. Tusia also admitted in his plea agreement to knowingly and willfully failing to report income he received from the DMEs in tax years 2017 through 2020, totaling more than $1,573,644. Tusia admitted that he failed to pay tax to the IRS and that he took affirmatives steps to evade paying taxes, such as by creating the DMEs and opening bank accounts for the DMEs in the names of his associates and co-schemers. United States District Judge George Wu scheduled a December 5 sentencing hearing, at which time Tusia will face a statutory maximum sentence of 10 years in federal prison on the health care fraud count, and up to five years in federal prison for the tax evasion count. The United States Department of Labor – Employee Benefits Security Administration, the FBI, and IRS Criminal Investigation are investigating this matter. Assistant United States Attorney Jeff Mitchell of the Major Frauds Section is prosecuting this case.


title: Harrison County man charged with federal firearms violations

body_text: MARSHALL, Texas – A Marshall man has been arrested and charged in connection with federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs. Cameron Deshun Payton, 22 was named in a three-count indictment in the Eastern District of Texas in June 2024, charging him with possession of a machine gun, possession of an unregistered firearm, and felon in possession of a firearm. Payton appeared in federal court before U.S. Magistrate Judge Roy Payne in late July 2024, and was ordered to be detained until trial. “In June, I announced Operation Texas Kill Switch, a statewide initiative targeting illegal machinegun conversion devices, commonly known as switches,” stated U.S. Attorney Damien M. Diggs. “As promised, my office and our law enforcement partners will find these devices and take them off of the streets.” “Mr. Payton is now about to face the music as it relates to the illegal possession of machine gun conversion devices. Several months ago, ATF and our four Texas United States Attorney partners announced Operation Texas Kill Switch to combat the scary proliferation of these dangerous devices. These are not toys and will not by treated as such by law enforcement. I’d like to thank all of our partners, especially those in this case, for their diligence in the fight against violent firearms crime. Mr. Payton now knows these partnerships are real and are here to stay,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II. “Mr. Payton’s arrest marks a significant step in addressing the rampant violent crimes within our community. His involvement in multiple car chases, deadly conduct with firearms, and the pending charge of sexual assault of a child highlights the urgency and importance of our collaborative efforts. I commend the relentless dedication of the Joint Harrison County Violent Crime & Narcotics Task Force, our officers in Marshall, the ATF, and the FBI. Together, we are demonstrating our unwavering commitment to justice and the safety of our citizens,” stated Marshall Police Department Chief Cliff Carruth. According to information presented in court, on April 16, 2024, law enforcement arrived at Payton’s Marshall residence to serve outstanding felony warrants for sexual assault of a child and evading arrest or detention with a motor vehicle. At the time of his arrest, law enforcement found photographs of Payton with a pistol with an alleged machinegun conversion device, also referred to as a switch, installed. The weapon was located in Payton’s residence at the time of his arrest. At only about an inch long, switches may be made of metal or plastic and can be manufactured using a 3D printer. They generally slot into the butt of a gun and allow the shooter to fire in “full auto.” Switches have been used in numerous fatal shootings, and law enforcement are finding them at a dramatically increasing rate in recent months. If convicted, Payton faces up to 15 years in federal prison. This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive strategies to address them. Among these strategies is ‘Operation Texas Kill Switch.’ Operation Texas Kill Switch is aimed at raising awareness of illegal machine gun conversion devices, which pose a serious threat to East Texas communities and law enforcement. From now until Aug. 31, local Crime Stoppers programs will offer cash rewards for information leading to the apprehension or prosecution of those who possess switches or 3D printers being used to manufacture them. To be eligible for cash rewards, tipsters must provide information to their local Crime Stoppers program . Tipsters may also use **TIPS to be connected to a Crime Stoppers program in their area. Tips can be submitted 24 hours a day, and anonymity is guaranteed by law. Information may also be submitted directly to ATF at www.atf.gov/contact/atf-tips . This case is being investigated by the Marshall Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Texas Department of Public Safety and is being prosecuted by Assistant U.S. Attorney Dustin Farahnak. A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Middletown Man Charged with Illegally Possessing Machineguns

body_text: Wilmington, Del. – A Middletown, Delaware, resident was arrested on August 1, 2024, and charged with illegally possessing machineguns, announced David C. Weiss, U.S. Attorney for the District of Delaware. According to court documents, Eric Quinn, 36, ordered and received Glock auto sears, also known as “Glock switches,” from China. Glock auto sears are conversion devices designed and created for the sole purpose of converting semi-automatic Glock pistols into fully automatic machineguns. When installed properly, Glock auto sears allow a firearm to expel more than one projectile by a single pull of the trigger, at a rate of approximately 1,200 rounds per minute. A criminal complaint charges Quinn, who is a convicted felon, with possessing machineguns as well as being a felon in possession of a firearm or ammunition. If convicted of these charges, Quinn faces a maximum penalty of 15 years of imprisonment. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Homeland Security Investigations, an agency within the Department of Homeland Security, conducted the investigation in this matter, along with the U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Delaware State Police. Assistant U.S. Attorney Bryan C. Williamson is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information are located on the website of the U.S. District Court for the District of Delaware or on PACER . A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.


title: Sioux City Man Sentenced to Fourteen Years in Federal Prison for  Meth Trafficking and Immigration Offenses

component: USAO - Iowa, Northern

body_text: A man who conspired to distribute methamphetamine while illegally in the United States was sentenced on August 2, 2024, in federal court in Sioux City. Juan Cardona-Tinajero, 34, from Guadalajara, Mexico, pled guilty on March 15, 2024, to one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, and being an illegal alien in United States. At the plea and sentencing hearings, evidence showed that from January 2023 and September 22, 2023, Cardona-Tinajero and others in the conspiracy agreed to distribute nearly 20 pounds of methamphetamine. Cardona-Tinajero also admitted that he was caught receiving approximately nine pounds of methamphetamine by mail which he intended to further distribute. Cardona-Tinajero was receiving packages through the U.S. postal service from California which contained methamphetamine that he distributed in Sioux City area. Evidence further showed that Cardona-Tinajero was removed from the United States in 2010, and again in 2014, and was in the United States illegally. Sentencing was held before United States District Court Judge Leonard T. Strand. Cardona-Tinajero was sentenced to 168 months’ imprisonment and must serve a five-year term of supervised release following the imprisonment. There is no parole in the federal system. Cardona-Tinjaro remains in custody of the United States Marshal until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorneys Shawn S. Wehde and Kevin C. Fletcher and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-4063 and 23-4072. Follow us on Twitter @USAO_NDIA.


title: Mexican National Sentenced to 14 Years in Prison for Methamphetamine Charge

component: Federal Bureau of Investigation (FBI)

body_text: United States Attorney Susan Lehr announced that Brayan De La Cruz Cuahutzihua, age 24, of Ixtapaluca, Mexico, was sentenced August 2, 2024, in federal court in Omaha, Nebraska, after having pled guilty to conspiracy to distribute methamphetamine. Chief United States District Judge Robert F. Rossiter Jr. sentenced Cauhutzihua to 168 months’ imprisonment. After completing his term of imprisonment Cauhutzihua will be deported to Mexico as he is not a United States citizen. On October 27, 2022, the FBI utilized a confidential informant who purchased one pound of meth from Cauhutzihua in the back parking lot of the Nebraska Furniture Mart located at 72nd Street, Omaha, NE. Cauhutzihua was accompanied by codefendants Francis C. Murillo and Jesus Manuel Sauceeda Perea when they arrived at the meet location in the same vehicle. On March 03, 2023, agents obtained a federal search warrant for the defendants’ South Omaha residence that resulted in the discovery of approximately six pounds of meth, 19 pounds of marijuana, $41,784.00 in drug proceeds, and multiple cellular devices. The money has since been administratively forfeited to the government. Murillo and Sauceeda Perea are awaiting trial at a date yet to be scheduled. This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.


title: Omaha Man Sentenced for Methamphetamine and Firearm Conspiracy

component: Drug Enforcement Administration (DEA)

body_text: United States Attorney Susan Lehr announced that Alejandro Escamilla, 50, of Omaha, Nebraska, was sentenced August 2, 2024, in federal court in Omaha, for his involvement in a methamphetamine and firearm conspiracy. Chief United States District Judge Robert F. Rossiter Jr. sentenced Escamilla to 224 months’ imprisonment. Escamilla also agreed to the forfeiture of $9,594 and a 2014 Kawasaki Motorcycle. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. On July 27, 2022, law enforcement made arrangements to buy meth from Escamilla. A controlled buy was completed and Escamilla sold law enforcement one pound of meth. During the controlled buy, Escamilla utilized his 2015 Kawasaki motorcycle to facilitate the drug deal. On December 14, 2022, law enforcement executed a search warrant of Escamilla’s residence in Omaha. Law enforcement seized $9,594 in United States currency from Escamilla’s bedroom. This currency is derived from drug proceeds and was utilized to facilitate Escamilla’s drug trafficking activities. Law enforcement also seized a Ruger handgun and multiple boxes of ammunition from the same bedroom. In a detached garage, law enforcement seized 62 pounds of meth. Escamilla admitted to law enforcement that the 62 pounds of meth was what was left over from the 120 pounds he received in a shipment roughly two weeks prior. This case was investigated by the DEA.


title: Former Des Peres Alderman Sentenced to 5 Years of Probation, Ordered to Repay $292,000 for Embezzlement

body_text: ST. LOUIS – A former alderman in Des Peres, Missouri was sentenced on Thursday to five years of probation and ordered to repay $292,305 that he embezzled from clients. John Pound, 81, pleaded guilty in March in U.S. District Court in St. Louis to three counts of wire fraud. Pound admitted that from 2010 through June 30, 2020, he embezzled from two clients of his real estate management company, Commercial Realty Management Inc. Pound’s company provided real estate management services to the owners of a commercial property on North Euclid Avenue in the Central West End neighborhood of St. Louis, Missouri. Pound maintained bank accounts and paid bills on behalf of the owners. But he took significantly larger management fees, kept larger commissions and charged higher hourly rates than he was authorized to take. Pound prepared annual budgets which misrepresented the monthly management fee and concealed the inflated fees he was collecting. From 2006 through June 30, 2020, Pound paid himself $220,000 in commission payments that he had not legitimately earned. From Jan. 1, 2015, through Dec. 31, 2019, Pound made about 132 entries in QuickBooks falsely identifying a third-party payee when the money went to Pound. Pound resigned from his elected position as an alderman in Des Peres, Missouri after his guilty plea. The FBI investigated the case. Assistant U.S. Attorney Gwen Carroll prosecuted the case.


title: Missouri Woman Sentenced to 41 Months in Prison for Pandemic Loan Fraud

body_text: ST. LOUIS – U.S. District Judge Matthew T. Schelp on Thursday sentenced a woman who fraudulently obtained $135,622 in pandemic loans for herself and helped others get hundreds of thousands more to 41 months in prison and ordered her to repay the money. Edna E. McGowan-Baker engaged in a scheme between May 2020 and September 2021 to fraudulently obtain Paycheck Protection Program (PPP) loans, which were intended to aid small businesses in paying and retaining employees during the COVID-19 pandemic. McGowan-Baker applied for seven PPP loans for five different companies in her name, only two of which were in operation. On the loan applications, McGowan-Baker falsified the companies’ payroll, number of employees and annual income to inflate the amount of PPP loan money she could receive. She also submitted fraudulent tax forms with the applications. McGowan-Baker certified on the applications that she would use the loans for payroll and other authorized expenses but used the money for her own bills and to make personal purchases and payments to others. She also submitted fraudulent applications for PPP loan forgiveness, falsely stating that she used the loans for authorized expenses. During Thursday’s sentencing hearing, Assistant U.S. Attorney Jonathan Clow an an FBI special agent said McGowan-Baker also prepared and submitted fraudulent PPP loan applications for others in exchange for a cut of the loans that they received, taking “advantage of this once-in-a-generation crisis,” Clow said in a sentencing memo. McGowan-Baker, 48, pleaded guilty in March in U.S. District Court in St. Louis to one count of wire fraud and two counts of bank fraud. She was ordered Thursday to repay $149,194, representing the fraudulent loans she received, interest and loan processing fees. The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow 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: Federal Court Permanently Prohibits Ohio Physician from Prescribing Opioids and Imposes $4.7M Judgment for Alleged Unlawful Opioid Distribution

component: Civil Division

body_text: A federal court prohibited a Sandusky, Ohio-area physician from prescribing opioids and other controlled substances and ordered him to pay $4.7 million in a case alleging violations of the Controlled Substances Act (CSA) and the False Claims Act (FCA). In a civil complaint filed in August 2018, the United States alleged that Dr. Gregory Gerber, MD, who operated an office in Sandusky, unlawfully issued prescriptions without a legitimate medical basis for opioids and other controlled substances in violation of the CSA and the FCA. The complaint alleged that one patient died from an overdose of fentanyl patches prescribed by Gerber. The complaint further alleged that Gerber received kickback payments from a drug manufacturer as part of a scheme to unlawfully prescribe Subsys, a powerful opioid drug containing fentanyl, in violation of the FCA. “Medical professionals who knowingly facilitate the abuse of opioids violate their legal obligations,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The department will pursue justice against anyone who seeks to profit from unlawfully prescribing opioids.” “All doctors must follow the law when prescribing opioids — their patients, and the public more generally, rely on such compliance,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Gerber’s patients trusted him. But instead of safeguarding that trust, Gerber accepted payments from a drug company in exchange for prescribing dangerous, addictive drugs and wrote thousands of prescriptions that were not for a legitimate medical purpose. Our office will use all available tools — civil and criminal — to fight the opioid epidemic and protect patients and their families so that doctors like Gerber do not profit from abusing our healthcare system.” “Dr. Gerber betrayed the trust placed in him and willfully violated his oath to protect the public and the provisions of the Controlled Substance Act,” said Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA)'s Detroit Field Division. “His reckless behavior contributed to the opioid crisis gripping the nation and brought suffering to many communities in northern Ohio. This ruling will hopefully deter other medical practitioners who are inclined to put profit over patient health and safety.” “Health care professionals who exploit opioid addiction for financial gain do so at the risk of endangering their patients and undermining critical public health efforts to address the opioid epidemic,” said Deputy Inspector General Christian J. Schrank of Investigations of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to work to ensure that bad actors are held accountable for such schemes in order to protect both patients and taxpayers.” “Ignoring the law by distributing prescriptions to opioids for illicit profit harms the communities that physicians are meant to help,” said Executive Assistant Director Michael D. Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “The FBI is glad that Gerber will not be able to prescribe controlled substances ever again.” Gerber agreed to a consent judgment to settle the allegations in the complaint. The order entered by the court permanently prohibits Gerber from prescribing opioids or other controlled substances, permanently prohibits him from managing, owning or controlling any entity that dispenses controlled substances and requires Gerber to pay approximately $4.7 million under the FCA. Gerber was also sentenced in March to 42 months in prison and one year of home confinement in a related criminal case brought by the United States Attorney’s Office. U.S. District Judge Jeffrey J. Helmick entered the judgment and permanent injunction in U.S. District Court for the Northern District of Ohio. In August 2018, Judge Helmick issued a temporary restraining order and preliminary injunction prohibiting Gerber from prescribing opioids or other controlled substances. The DEA, FBI, HHS-OIG, Ohio Attorney General’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy and State Medical Board of Ohio investigated the case. Assistant U.S. Attorneys Patricia Fitzgerald and Angelita Cruz Bridges for the Northern District of Ohio and Trial Attorney Scott B. Dahlquist of the Civil Division’s Consumer Protection Branch handled the case. The claims made in the complaint are allegations that the United States would need to prove by a preponderance of the evidence if the case proceeded to trial. Consent Decree


title: Tampa Man Sentenced On Firearm And Narcotics Charges

component: USAO - Florida, Middle

body_text: Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Andre Pierrie (26, Tampa) to 8 years and 10 months in federal prison for being a felon in possession of a firearm, possession with the intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. The court also ordered Pierrie to forfeit a Smith and Wesson Air Rite. 38 special revolver that was seized as part of this case. Pierrie entered a guilty plea on February 29, 2024. According to court documents, law enforcement officers attempted a traffic stop on a vehicle Pierrie was driving, but Pierrie accelerated his vehicle and fled the scene. Surveillance by law enforcement indicated that Pierrie had gone to a parking lot in an apartment complex. Officers observed Pierrie in his vehicle throwing a firearm out of the vehicle’s window. The firearm was retrieved by law enforcement and Pierrie eventually pulled over. Officers located methamphetamine and marijuana inside the vehicle. At the time of the offense, Pierrie had multiple prior felony convictions including delivery of cocaine and escape from law enforcement. As a convicted felon Pierrie is prohibited from possessing a firearm or ammunition under federal law. This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Maria Guzman. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Hot Springs Man Sentenced to 20 Years in Federal Prison for Drug Trafficking

component: USAO - Arkansas, Western

body_text: HOT SPRINGS - A Hot Springs man was sentenced yesterday to 240 months in prison followed by five years of supervised release on one count of Possession with the Intent to Distribute of More Than Fifty Grams of Actual Methamphetamine. The Honorable Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs. According to court documents, on March 15, 2023, Special Agents with the Drug Enforcement Administration (DEA) and the Hot Springs Police Department, Special Investigations Division, conducted a traffic stop on a vehicle being operated by Stacy Childs , age 33, after Childs delivered fentanyl to another individual. A search of the vehicle yielded a total of 3,416.15 grams, or approximately 7.53 pounds, of pure methamphetamine, the bulk of which was concealed in a compartment underneath the center console of the vehicle. Childs was arrested on a Federal Complaint and later indicted by a Grand Jury seated in the Western District of Arkansas. U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement. The Drug Enforcement Administration and the Hot Springs Police Department, Special Investigations Division, investigated the case. Assistant U.S. Attorney Bryan Achorn prosecuted the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov .


title: Mt. Juliet Man Arrested for Assaulting Law Enforcement and Other Charges During Jan. 6 Capitol Breach

body_text: WASHINGTON -- A Mt. Juliet, Tennessee, man has been arrested for allegedly assaulting law enforcement and other charges related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His alleged actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election. Nicholas Waldon Smotherman, 41, of Mt. Juliet is charged in a criminal complaint filed in the District of Columbia with felony offenses of obstruction of law enforcement during a civil disorder and assaulting, resisting, or impeding certain officers. In addition to the felonies, Smotherman is charged with several misdemeanor offenses, including entering and remaining in restricted grounds or buildings, disorderly and disruptive conduct in restricted grounds or buildings, engaging in physical violence in restricted grounds or buildings, disorderly conduct in a Capitol building or grounds, and act of physical violence in the Capitol grounds or buildings. The FBI arrested Smotherman today in Hermitage, Tennessee, and he will make his initial appearance in the Middle District of Tennessee. According to court documents, it is alleged that Smotherman was identified among a crowd of rioters on Jan. 6, 2021, amassed on the Upper West Plaza of the U.S. Capitol grounds. At approximately 2:28 p.m., a Metropolitan Police Department (MPD) officer's body-worn camera captured Smotherman standing in front of the bike racks and a police line on the southwest side of the Upper West Plaza. Here, a group of rioters had begun pulling on the bike racks. Smotherman was seen on body-worn camera next to the group, appearing to advance toward at an MPD officer. Police then commanded the rioters to move back. Instead, the rioters pulled the bike rack barricades to the ground, and Smotherman moved forward toward the police line. It is alleged that Smotherman then approached an MPD officer and pushed the officer with both hands. The officer then attempted to push Smotherman back using a baton, but Smotherman stood upright and yelled, "Hit me with it again." When the officer again attempted to push Smotherman back, Smotherman allegedly grabbed the officer's baton and attempted to pull it away. As Smotherman acted, he yelled, "I'll f— take this" and "Come out here b—." The officer managed to prevent Smotherman from taking the baton while another officer deployed pepper spray, and Smotherman retreated. Soon after this, rioters overran the police line on the Upper West Plaza, and officers retreated to the Lower West Terrace. A large crowd of rioters then gathered in and around the entrance to the Lower West Terrace Door, referred to as the "Tunnel," the site of some of the most violent attacks against law enforcement on January 6th. Smotherman was later identified in and around the Tunnel. This case is being prosecuted by the U.S. Attorney's Office for the District of Columbia and the Department of Justice National Security Division's Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney's Office for the Middle District of Tennessee. The case is being investigated by the FBI's Memphis and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department. Smotherman was identified as Assault on Federal Officer (AFO) #364. In the 42 months since Jan. 6, 2021, more than 1,470 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 530 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing. Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov. A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. #####


title: Dothan Man Sentenced to 120 Months in Federal Prison Following Federal Gun Conviction

component: USAO - Alabama, Middle

body_text: Montgomery, Alabama – Today, United States Attorney Jonathan S. Ross announced that Tarrence Lee Wright, 33, from Dothan, Alabama, received a sentence of 120 months in prison after pleading guilty to being a felon in possession of a firearm. There is no parole in the federal system. The sentencing occurred on July 31, 2024. According to the federal indictment and other court records, on July 24, 2023, law enforcement conducted a welfare check at a Dothan residence. No one responded when the officers initially knocked on the door. Eventually, law enforcement found Wright inside the home. Wright had a handgun with him. Wright has a previous felony conviction and is prohibited by federal law from possessing a firearm or ammunition. Officers also witnessed signs of potential domestic violence against a female victim. The Dothan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case, which Assistant United States Attorneys Joel H. Feil and Justin L. Jones prosecuted.


title: Five U.S.-Based Defendants Charged With Money-Laundering Conspiracy That Facilitated Foreign Sextortion Scheme

component: USAO - Michigan, Western

body_text: GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced the unsealing of a federal indictment charging five U.S.-based defendants with conspiring to commit money laundering that facilitated the previously announced foreign sextortion scheme resulting in the death of Jordan DeMay, a 17-year-old high school student from Marquette, Michigan. “Every day Americans fall victim to financial scams, including sextortion, romance scams, and consumer fraud,” said U.S. Attorney Mark Totten . “Senior citizens, children, and teenagers are especially vulnerable. The result of these crimes can be devastating, as the death of Jordan DeMay makes painfully clear. Today’s charges send a loud and clear message that we will chase down everyone who enables these crimes, including the U.S.-based money launderers.” In November 2022, the U.S. Attorney’s Office for the Western District of Michigan charged three Nigerian nationals in a sextortion scheme that resulted in the death of Jordan DeMay, a 17-year-old high school student from Marquette, Michigan, and targeted more than 100 other victims. Two of the three defendants in that case were extradited to the United States in August 2023 and pled guilty in April 2024 . The indictment announced today is a separate-but-related case that charges the following five U.S.-based defendants with a single count of Conspiracy to Commit Money Laundering: Johnathan Demetrius Green, 32, Stone Mountain, Georgia Jarell Daivon Williams, 31, McDonough, Georgia Dinsimore Guyton Robinson, 30, Huntsville, Alabama Kendall Ormond London, Jr., 32, Lithonia, Georgia Brian Keith Coldmon, Jr., 30, Stone Mountain, Georgia. Money laundering is a federal crime that covers financial transactions involving the proceeds of criminal activity, where the goal is often to conceal the criminal nature of those proceeds. The government alleges that the defendants knowingly agreed to conduct, or attempt to conduct, financial transactions involving the proceeds of a crime, knowing that the transactions were designed to conceal some aspect of the underlying crime. The charge in this case carries a maximum sentence of 20 years. As Samuel and Samson Ogoshi have admitted in their plea agreements, the Nigerian-based sextortionists devised a fraudulent scheme where they pretended to be a young woman in social media accounts and encouraged teenage boys and young men to engage in sexually explicit conduct and produce images of that conduct. Once the victims produced and sent those images, the sextortionists used those images to blackmail their victims for money, threatening to send the images to others, including families, friends, and classmates of the victims. The sextortionists instructed their victims to send money to designated financial accounts through various cash applications. The indictment in today’s related case alleges that the defendants – the U.S.-based money launderers – controlled these designated financial accounts. They would keep a portion of the victims’ funds – typically 20% – and then convert the rest into bitcoin. The defendants would then send the bitcoin to an unindicted Nigerian co-conspirator, whom they referred to as “The Plug.” The Plug would keep a portion of the bitcoin funds, and send the remainder to Samuel Ogoshi, Samson Ogoshi, Ezekiel Robert, and other sextortionists. The indictment alleges that the U.S.-based defendants laundered at least $178,658 in funds representing the proceeds of the sextortion scheme. Among these alleged financial transactions conducted by the U.S-based defendants was a transaction that involved an individual identified as “Victim 1” in the indictment. With the permission of his parents, the U.S. Attorney’s Office is sharing that Victim 1 was Jordan DeMay. On March 25, 2022, Jordan DeMay sent $300 through a cash application to Defendant Johnathan Green. Green transferred a portion of those funds into another cash application and purchased bitcoin, which he sent to the Plug. The Plug kept a portion of those funds and sent the remainder to the sextortionists. FBI arrested the defendants on Thursday, August 1, 2024 and each defendant appeared in federal court yesterday for their initial appearance. We anticipate these defendants will be scheduled for an arraignment in Grand Rapids before Judge Jonker in the coming weeks. “The five defendants who allegedly conspired to aid Nigerian sextortionists through money laundering participated in the financial manipulation of vulnerable and young victims,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan . “The FBI continues to spread awareness about financial sextortion and will continue to work with our partners at the Economic and Financial Crimes Commission of Nigeria and the U.S. Attorney's Office.” In the related case, United States v. Samuel Ogoshi et al. , the Court is scheduled to sentence Samuel Ogoshi, 22, and Samson Ogoshi, 20, of Lagos, Nigeria at the federal courthouse in Marquette, Michigan, on September 5, 2024. The details of the sentencing, including live access to the audio by Zoom or a video of the proceeding at the federal courthouse in Grand Rapids, are provided in the attached Notice filed by the Court. The FBI is investigating this case and AUSA Davin Reust is prosecuting it. The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law. ### Green Et Al. - Indictment


body_text: CLEVELAND – A federal court prohibited a Sandusky, Ohio-area physician from prescribing opioids and other controlled substances and ordered him to pay $4.7 million in a case alleging violations of the Controlled Substances Act (CSA) and the False Claims Act (FCA). In a civil complaint filed in August 2018, the United States alleged that Gregory Gerber, MD, age 59, of Port Clinton, Ohio, who operated an office in Sandusky, unlawfully issued prescriptions without a legitimate medical basis for opioids and other controlled substances in violation of the CSA and the FCA. The complaint alleged that one patient died from an overdose of fentanyl patches prescribed by Gerber. The complaint further alleged that Gerber received kickback payments from a drug manufacturer as part of a scheme to unlawfully prescribe Subsys, a powerful opioid drug containing fentanyl, in violation of the FCA. “Medical professionals who knowingly facilitate the abuse of opioids violate their legal obligations,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The department will pursue justice against anyone who seeks to profit from unlawfully prescribing opioids.” “All doctors must follow the law when prescribing opioids — their patients, and the public more generally, rely on such compliance,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Gerber’s patients trusted him. But instead of safeguarding that trust, Gerber accepted payments from a drug company in exchange for prescribing dangerous, addictive drugs and wrote thousands of prescriptions that were not for a legitimate medical purpose. Our office will use all available tools — civil and criminal — to fight the opioid epidemic and protect patients and their families so that doctors like Gerber do not profit from abusing our healthcare system.” “Dr. Gerber betrayed the trust placed in him and willfully violated his oath to protect the public and the provisions of the Controlled Substance Act,” said Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA)’s Detroit Field Division. “His reckless behavior contributed to the opioid crisis gripping the nation and brought suffering to many communities in northern Ohio. This ruling will hopefully deter other medical practitioners who are inclined to put profit over patient health and safety.” “Health care professionals who exploit opioid addiction for financial gain do so at the risk of endangering their patients and undermining critical public health efforts to address the opioid epidemic,” said Deputy Inspector General Christian J. Schrank of Investigations of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to work to ensure that bad actors are held accountable for such schemes in order to protect both patients and taxpayers.” “Ignoring the law by distributing prescriptions to opioids for illicit profit harms the communities that physicians are meant to help,” said Executive Assistant Director Michael D. Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “The FBI is glad that Gerber will not be able to prescribe controlled substances ever again.” Gerber agreed to a consent judgment to settle the allegations in the complaint. The order entered by the court permanently prohibits Gerber from prescribing opioids or other controlled substances, permanently prohibits him from managing, owning or controlling any entity that dispenses controlled substances and requires Gerber to pay approximately $4.7 million under the FCA. Gerber was also sentenced in March to 42 months in prison and one year of home confinement in a related criminal case brought by the United States Attorney’s Office for the Northern District of Ohio. U.S. District Judge Jeffrey J. Helmick entered the judgment and permanent injunction in U.S. District Court for the Northern District of Ohio. In August 2018, Judge Helmick issued a temporary restraining order and preliminary injunction prohibiting Gerber from prescribing opioids or other controlled substances. The DEA, FBI, HHS-OIG, Ohio Attorney General’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy and State Medical Board of Ohio investigated the case. Assistant U.S. Attorneys Patricia Fitzgerald and Angelita Cruz Bridges for the Northern District of Ohio and Trial Attorney Scott B. Dahlquist of the Civil Division’s Consumer Protection Branch handled the case. The claims made in the complaint are allegations that the United States would need to prove by a preponderance of the evidence if the case proceeded to trial. View Consent Decree


title: Owner of Great Falls firearms business charged with filing false income tax returns

component: USAO - Montana

body_text: GREAT FALLS — The owner of firearms business in Great Falls was charged with filing false income tax returns after an undercover investigation determined the owner did not report 20 percent, or approximately $1.4 million, of his gross receipts, resulting in a tax loss of almost $500,000, U.S. Attorney Jesse Laslovich said today. A grand jury indictment filed on Aug. 1 in U.S. District Court charges the defendant, Tommy Michael VanHoose, 66, with five counts of submitting a false tax return. If convicted, VanHoose faces a maximum of three years in prison, a $250,000 fine, and one year of supervised release on each count. A summons was issued for VanHoose to appear for arraignment on Sept. 10 before U.S. Magistrate Judge John T. Johnston in Great Falls. An indictment is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. “The indictment alleges VanHoose, by his own claims, skimmed cash from his firearms business and did not report 20 percent of his gross receipts to the IRS, which resulted in a substantial underpayment of income taxes to the United States. After a thorough investigation conducted by the IRS, we allege VanHoose’s own statements to an undercover agent were accurate, which is why he is charged with multiple counts of submitting a false federal tax return,” U.S. Attorney Laslovich said. The indictment alleges that VanHoose owned and operated Highwood Creek Outfitters LLC, a firearms distributor and shooting range in Great Falls. VanHoose, through a real estate agent, listed the business for sale for $1,750,000. An IRS undercover agent, posing as a potential buyer, inquired about the list price by calling the real estate agent in February 2023. The real estate agent told the undercover that, “[N]ot everything flows to the tax returns.” In a later conversation, the real estate agent told the undercover that they would not identify in writing any “off the books” income but the actual amount of income was “substantial.” As further alleged, the undercover toured Highwood Creek Outfitters with VanHoose in May 2023. During the tour, VanHoose stated that he skimmed approximately $450,000 in cash and repeatedly stated he did not report 20 percent of the gross receipts to the IRS. Based on his own claims and on records obtained through a search warrant, VanHoose underreported approximately 20 percent, or about $1,486,404, of his income for tax years 2018 through 2022, resulting in him owing the IRS approximately $492,254. In addition, the indictment alleges that when individuals purchase firearms from Highwood Creek Outfitters, they are required to complete a Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473, which identifies the firearm purchased. The undercover asked VanHoose how underreporting of income was possible when ATF tracked gun sales by serial number through ATF Form 4473s. VanHoose responded, “It’s easy.” VanHoose further stated, “they don’t know what I’m paying for or I’m getting in income off those guns.” VanHoose therefore confirmed to the undercover that he accurately detailed sales through the ATF Form 4473 but underreported his income to the IRS. IRS agents executed a search warrant on June 14, 2023, at Highwood Creek Outfitters to obtain, among other items, the ATF Form 4473s to determine the amount of unreported income. The actual gun prices were attached to the ATF Form 4473s and confirmed that VanHoose skimmed cash and underreported his gross receipts to the IRS. The indictment also alleges that VanHoose sold firearms for a higher price than what he entered into a point of sales system for the business; gave or sold firearms to others in which he did not record the transaction; and lied to his accountant by providing incomplete records to underreport income to the IRS. The U.S. Attorney’s Office is prosecuting the case. IRS Criminal Investigation conducted the investigation. PACER case reference. 24-60. The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html . To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl . XXX


title: Woman Charged with Attempted Smuggling of Protected Turtles

component: USAO - Vermont

body_text: Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that on August 1, 2024, a federal grand jury returned a single-count indictment charging a Chinese woman, alleging she attempted to smuggle eastern box turtles, a protected wildlife species, from the United States to Canada for the illegal global pet trade. Wan Yee Ng, 41, of Hong Kong, is charged with attempting to export merchandise contrary to law. Her arraignment has not yet been scheduled. According to an affidavit filed with the criminal complaint in this case, Ng, a Chinese national living in Canada, came to the attention of the United States Border Patrol at the Beecher Falls Station in Canaan, Vermont, after repeatedly renting the same Vermont residence on Lake Wallace, an international body of water that has been used for human and narcotic smuggling. The United States Border Patrol also discerned that Ng’s husband was renting a separate property on the lake in Canada at the same time. On the morning of June 26, 2024, agents observed Ng begin to prepare an inflatable kayak near the water’s edge and carry a duffle bag from the rented residence to the kayak. During this time the Royal Canadian Mounted Police notified agents that two individuals, one of which was believed to be Ng’s spouse, had launched an inflatable watercraft on the Canadian side of Lake Wallace and began to paddle south toward the United States. Before she could leave the shore, agents intercepted Ng and detained her for suspected smuggling activity. Agents then observed, through a partially opened zipper on the duffle bag, what appeared to be socks that were moving. Further inspection revealed the bag contained 29 turtles that were individually wrapped in socks to protect their shells and so they could not move. The turtles were preliminarily identified by a United States Fish and Wildlife Special Agent as eastern box turtles (Terrapene carolina carolina). U.S. Border Patrol Photo of box turtles, from the complaint in case U.S. v. Wan Yee Ng. Credit: USBP The eastern box turtle is a subspecies of the common box turtle and is native to forested regions of the eastern United States with some isolated populations in the Midwest. Turtles with colorful markings are especially prized in the domestic and foreign pet trade market, particularly in China and Hong Kong. These animals are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), an international agreement to protect fish, wildlife and plants that are or may become threatened with extinction. The United States and Canada are parties to this agreement. Smuggling wild turtles in violation of international protocols can seriously harm wildlife and undermine conservation efforts. Confiscated turtles are often in poor health and may need to be quarantined to reduce the risk of spreading disease. The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Ng is presumed innocent until and unless proven guilty. Ng faces up to 10 years if convicted. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and statutory sentencing factors. United States Attorney Nikolas P. Kerest commended the investigatory efforts of the United States Border Patrol, Homeland Security Investigations, and the United States Fish and Wildlife Service and their seamless cooperation with the Royal Canadian Mounted Police. The prosecutor is Assistant United States Attorney Thomas J. Aliberti with assistance from Senior Counsel for Wildlife Programs Elinor Colbourn of the Justice Department’s Environmental Crimes Section. Ng is represented by Mark Kaplan, Esq.


title: Morgantown Sex Offender Convicted After Traveling to Mexico to Purchase Child

component: USAO - West Virginia, Northern

body_text: CLARKSBURG, WEST VIRGINIA – Scott David Bixler, 43, of Morgantown, West Virginia, has admitted to failing to update his sex offender registration. United States Attorney William Ihlenfeld announced that Bixler, a convicted sex offender, traveled outside of the country last August without notifying the West Virginia State Police as required by his sex offender status. Bixler was arrested in Mexico, where investigators determined that he attempted to purchase a 7-year-old girl. According to court documents and statements made in court, Bixler was in possession of two tranquilizer air guns, methamphetamine, a cell phone jammer, and $5,000 in cash with which to purchase the child. “It should be a relief to everyone, especially to parents of young children, knowing that someone as dangerous as Scott Bixler has been convicted and will be locked up for a long time,” said U.S. Attorney Ihlenfeld. “I’m grateful for the work of law enforcement to apprehend Bixler and bring him to justice.” As a result of his guilty plea, Bixler faces up to 10 years in federal prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government, along with former Assistant U.S. Attorney Sarah Wagner. This case was investigated by the FBI, the U.S. Marshals Services, and the West Virginia State Police. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC . U.S. Magistrate Judge Michael John Aloi presided.


title: Burlington Man Sentenced to 150 Months for Drug Charges

component: USAO - Iowa, Southern

body_text: DAVENPORT, Iowa –A Burlington man was sentenced on July 30, 2024, to 150 months in federal prison for Distribution of 50 Grams or More of Methamphetamine. According to public court documents and evidence presented at sentencing, between October 2022 and October 2023, Michael Bernard Hicks Jr., 27, distributed over three kilograms of methamphetamine in the southeast Iowa area to confidential informants and undercover officers. All of Hicks’ distributions of methamphetamine were carried out while he was on probation for a state of Iowa conviction for possession with intent to distribute methamphetamine. After completing his term of imprisonment, Hicks will be required to serve five years of supervised release. There is no parole in the federal system. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southeast Iowa Narcotics Task Force and Iowa Department of Safety Division of Narcotics Enforcement.


title: California Man Sentenced to 188 Months for Drug Charges

body_text: DAVENPORT, Iowa –A California man was sentenced on July 30, 2024, to 188 months in federal prison for Conspiracy to Distribute 50 Grams or More of Methamphetamine and Distribution of 50 Grams or More of Methamphetamine. According to public court documents and evidence presented at sentencing, between October 2020 and July 2022, Jose Antonio Reyes, 35, conspired with others to send large amounts of methamphetamine from California to Muscatine, Iowa for distribution. Reyes mailed two packages containing pound quantities of methamphetamine to co-conspirators in Muscatine. After completing his term of imprisonment, Reyes will be required to serve five years of supervised release. There is no parole in the federal system. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the United States Postal Service Inspection Service, Drug Enforcement Administration, and Muscatine County Drug Task Force.


title: Mount Airy Man Pleads Guilty To Conspiracy Charge For $1 Million Cattle Theft Scheme

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – William Dalton Edwards, 25, of Mount Airy, N.C., pleaded guilty today to a conspiracy charge for his role in a $1 million scheme involving the theft of livestock, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Miles B. Davis, Special Agent in Charge, Office of the Inspector General, Office of Investigation of the U.S. Department of Agriculture (USDA-OIG), Southeast Region, Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Charlotte Field Office, Sheriff Alan Norman of the Cleveland County Sheriff’s Office and Sheriff Darren Campbell of the Iredell County Sheriff’s Office, join U.S. Attorney King in making today’s announcement. According to plea documents and the plea hearing, from April 2018 to October 2022, Edwards conspired with another person to defraud livestock markets, also known as sales barns, in Iredell and Cleveland Counties, North Carolina, and in Texas, Oklahoma, and Virginia. The investigation determined that, on multiple occasions during the relevant time frame, Edwards and his coconspirator purchased cattle from sales barns in North Carolina and wrote checks to pay for the cattle. Edwards and his coconspirator wrote such checks knowing they were worthless, since there were insufficient funds to cover the checks and pay for the cattle. According to court records, Edwards and his coconspirator arranged to transport the cattle out-of-state before the defrauded sales barns and financial institutions could determine their checks were worthless. The stolen cattle were then resold in Texas and Oklahoma. Over the course of the scheme, Edwards and his co-conspirator fraudulently obtained more than 3,000 head of cattle and caused over $1 million in losses to sales barns in North Carolina, Virginia and Texas. The sales barns—which are family-owned in North Carolina—incurred these losses because they are required to pay farmers and ranchers immediately after the sale of their livestock. Edwards pleaded guilty to conspiring to defraud the United States and to violate the laws of the United States. One of the objects of the charged conspiracy was to hamper and impede the Packers and Stockyard Division of the U.S. Department of Agriculture in its regulation of fair livestock markets. Other objects of the conspiracy included a scheme to obtain funds under the custody and control of federally insured financial institutions through false statements and representations; to steal livestock valued at more than $10,000; and to transport stolen livestock in interstate commerce. The statutory maximum for the charged offense is five years in prison, and any restitution or fines ordered by the Court at sentencing. Edwards is released on bond. A sentencing date has not been sent. In making today’s announcement, U.S. Attorney King commended the USDA-OIG, the U.S. Secret Service, IRS-CI, and the Cleveland and Iredell County Sheriff’s Offices for their investigation of the case. U.S. Attorney King also thanked the Stanly County District Attorney’s Office for its assistance. Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.


title: New Orleans Man Pleads Guilty to Making False Statements to Small Business Administration

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS – United States Attorney Duane A. Evans announced that RENIC PALMER, JR. (“PALMER”) , age 24, of New Orleans, pled guilty on August 1, 2024, before United States District Judge Carl J. Barbier to making or using false writings or documents to the United States Small Business Administration (SBA), in violation of Title 18, United States Code, Section 1001(a)(3). According to court documents, PALMER , to obtain a Payroll Protection Program (“PPP”) Loan, submitted false writings and documents to the SBA. In his application, among other things, PALMER falsely represented that he was the owner of a merchant wholesale hair supply company formed in 2017 and that he was eligible for PPP funds. As a result of these false representations, PALMER obtained $20,832.00 from the SBA. PALMER faces up to five years in prison, up to three years of supervised release, up to a $250,000 fine, a $100 mandatory special assessment fee, and restitution to the SBA for his conduct. Sentencing has been scheduled before Judge Barbier on November 7, 2024. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . U.S. Attorney Evans commended the Special Agents of the Coast Guard Investigative Service for their work on this case. Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit is in charge of the prosecution.


title: South Texas felon convicted for possessing firearms

component: USAO - Texas, Southern

body_text: McALLEN, Texas – A 27-year-old resident of Alamo has pleaded guilty to illegally possessing two rifles, announced U.S. Attorney Alamdar S. Hamdani. The investigation began after law enforcement learned narcotics would be in the home of Hector Tellez-Hernandez. On April 5, they conducted a search. At that time, they found two rifles and body armor in a bedroom as well as 16 grams of cocaine. Tellez-Hernandez admitted ownership. However, as a previously convicted felon of alien smuggling, he is prohibited from possessing firearms or ammunition per federal law. Chief U.S. District Judge Randy Crane will impose sentencing Oct. 16, at which time Tellez-Hernandez faces up to 15 years in federal prison and a possible $250,000 maximum fine. He has been and will remain in custody pending that hearing. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alamo Police Department conducted the joint investigation. Assistant U.S. Attorney Cahal P. McColgan is prosecuting the case as part of the joint federal, state and local Project Safe Neighborhoods ( PSN ) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.


title: Belknap County Fugitive Anthony Clark Arrested in South Boston

component: USAO - New Hampshire

body_text: CONCORD – An inmate of the Belknap County jail who fled from a hospital where he was receiving medical treatment was arrested by the U.S. Marshals this morning in South Boston, U.S. Attorney Jane E. Young announces. Anthony Clark, 41, was charged by complaint on August 1, 2024, with one count of violating the Fugitive Felon Act. Clark was arrested in South Boston this morning and will appear in federal court in Concord at noon today. According to the charging documents, Clark was an inmate at the Belknap County jail on pretrial detention. He was facing trial on state charges, including assault, domestic violence, strangulation, witness tampering, and violating a protective order. In July 2024, he was released on conditions to the Concord Hospital in Laconia, New Hampshire, for medical procedures. Clark had an electronic ankle bracelet to monitor his location. At approximately 10 p.m. on Sunday, July 28, the Laconia Police Department received a call from a concerned citizen who found an ankle bracelet on High Street near the Concord Hospital. Law enforcement confirmed that the bracelet belonged to Clark. Footage from Concord Hospital confirmed that Clark fled the area of the hospital at around 1 a.m. that day. When the ankle bracelet was removed from Clark there was a tamper alert, but it had gone undetected. The U.S. Marshals arrested Clark. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case. ###


title: Former nurse practitioner in Butte admits health care fraud; received nearly $600,000 in false claims

body_text: MISSOULA — A former nurse practitioner in Butte admitted on Thursday to prescribing controlled substances despite having a suspended license and to falsely billing an insurance company approximately $61 million for vitamin B-12 injections in which she received nearly $600,000 for the false claims, U.S. Attorney Jesse Laslovich said today. The defendant, Tristan Ashley Svejkovsky, 40, pleaded guilty to health care fraud and to use of a registration number issued to another person. Svejkovsky faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on the health care fraud charge and a maximum of four years in prison, a $250,000 fine and one year of supervised release on the charge of using the registration of another person. U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Dec. 12 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Svejkovsky was released pending further proceedings. The government alleged in court documents that Svejkovsky was a nurse practitioner whose license was suspended by the Montana Board of Nursing on April 1, 2022. Svejkovsky continued to prescribe controlled substances using her own name and Drug Enforcement Administration registration number until June 8, 2022. The DEA contacted Svejkovsky through her attorney, and she agreed to voluntarily surrender her DEA registration. However, Svejkovsky continued to prescribe controlled substances using the name and DEA registration number of a friend who also was nurse practitioner. Svejkovsky misrepresented to her friend that her nursing license was on probation, not suspended, and that she would not use her friend’s information to prescribe drugs. In fact, Svejkovsky used her friend’s name and DEA registration number for at least 12 prescriptions of controlled substances. The government further alleged that Svejkovsky billed Blue Cross Blue Shield of Montana for vitamin B-12 injections that did not occur. In August 2021, Svejkovsky started falsely increasing the number of units of a standard vitamin B-12 injection from one unit to 1,000 units. This increased the corresponding payment from the insurance company for each injection from roughly $4.88 to $4,880. After her license was suspended, Svejkovsky started submitting numerous such claims each month to Blue Cross Blue Shield of Montana by backdating claims to supposedly before her license was suspended. This conduct continued through May 2022, when Svejkovsky submitted four claims, this time claiming $15 million per vitamin B-12 injection to a new patient. Svejkovsky never gave that patient any vitamin injections, and Blue Cross Blue Shield of Montana did not pay those claims. In total, Svejkovsky billed the insurance company at least $61,995,000 for false vitamin B-12 injections and received at least $593,583 from those false claims. The U.S. Attorney’s Office is prosecuting the case. The DEA and FBI conducted the investigation. XXX


title: Argyle Fire Chief sentenced to prison for federal violations,  ordered to pay over half-million in restitution

body_text: PLANO, Texas – The former Argyle Fire Chief has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs. Troy Mac Hohenberger, 65, pleaded guilty to multiple federal charges related to misuse and theft of funds from the Argyle Fire District, Inc. operating account, along with making false statements to the Department of Labor and was sentenced to 50 months in federal prison by U.S. District Judge Robert W. Schroeder, III on August 1, 2024. He was also ordered to pay $509,807.50 in restitution to the Argyle Fire District, Inc., and to forfeit $28,048.34. According to information presented in court, Hohenberger stole money from the operating account of the Argyle Fire District, Inc., (which received federal funds in the form of Medicare reimbursements) and used over $490,000 of those funds to pay personal credit card bills. Those personal credit card expenses included cash advances at casinos, payments related to a family member’s business in Hawaii, and other personal uses. The evidence also showed that Hohenberger failed to fund firefighter retirement accounts in the time required by federal regulations, embezzled or stole the funds, and made false statements related to the ERISA-qualified firefighter retirement plan on a form submitted to the Department of Labor. Hohenberger was indicted by a federal grand jury in November 2022. “Today’s sentence sends a message that my office takes seriously crimes related to the misuse, theft, and embezzlement of retirement- and pension-plan assets, particularly when such offenses are committed by fiduciaries, like the defendant, who are charged with protecting the assets of employee benefit plans,” said U.S. Attorney Damien M. Diggs. “Because the defendant chose personal gain over his fiduciary responsibilities, he will now spend significant time in prison. We appreciate the diligence and partnership of the FBI and the Department of Labor in investigating these offenses and bringing the evidence of these crimes to light.” “Financial fraud is not a victimless crime. The defendant didn't just embezzle federal funds. He took money that was meant to fund the retirement accounts of his colleagues and selfishly spent it on himself,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “Thank you to our partners at the Department of Labor and the U.S. Attorney's Office for helping us hold this individual accountable for his crimes.” Deborah Perry, Dallas Regional Director of the Department of Labor, Employee Benefits Security Administration said, " I hope this sends a clear message to all who sponsor or transact business with employee benefit plans that the federal government will aggressively pursue those who commit crimes against employees and retirees of private-sector pension and health plans." This case was investigated by the FBI and the Department of Labor – EBSA. ###


title: Six people charged in bank fraud scheme involving an insider sharing account information that caused more than $345,000 in theft

component: USAO - Washington, Western

body_text: Seattle – Six people were indicted for conspiracy to commit bank fraud, six counts of bank fraud, and six counts of aggravated identify theft for their scheme to steal more than $345,000 from a western Washington credit union, announced U.S. Attorney Tessa M. Gorman. One of the defendants, 31-year-old Aneicia Ford, allegedly used her brief employment with the credit union to steal account information of credit union customers so that conspirators could take over the accounts and steal the funds. The credit union has fully reimbursed customers who lost money to the co-schemers. According to records filed in the case, between May and October 2022, Aneicia Ford worked out of her Tacoma home as a contact center employee who helped customers with account issues. In that role, she had access to personally identifying information about customers of the credit union. According to the indictment, Ford passed that information on to 21-year-old Dangelo Roberts, who allegedly used it to access and steal from customer accounts. Roberts allegedly advertised on social media that he could make false identification materials and sought to recruit co-schemers to access victims’ accounts. In addition to Ford and Roberts, the other conspirators charged in the scheme include: Shanna Carter-Zanders, 42 of Auburn, Washington Kohrey Lee Bridges, 22, of Tumwater, Washington Anthony McQueen, 36, of Seattle Meghan Frazier, 21, of University Place, Washington Aniecia Ford is charged in every count in the indictment. All of the defendants are charged with the conspiracy and different defendants are charged with individual counts of bank fraud and/or aggravated identity theft. All of the defendants have appeared on the indictment or are scheduled to appear next week. Using the stolen account information, the conspirators obtained false IDs and used them to get debit cards and to make withdrawals from the victims’ accounts, often at the credit union’s branches. After obtaining increases to the ATM withdrawal limits, the conspirators obtained as much as $25,000 in cash. The conspirators would also spend victims’ funds by ordering cashier’s checks or purchasing postal money orders that they made payable to other conspirators or their associates. They used their illegal access to transfer money between accounts and check balances on accounts. In all the scheme stole approximately $345,014 from the credit union accounts. Conspiracy to commit bank fraud and bank fraud are both punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory minimum two years in prison to follow any other sentence imposed on other charges in the case. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and the FBI. The case is being prosecuted by Special Assistant United States Attorney Jessica M. Ly.


title: Fayetteville Crip Gangster Sentenced to Prison for Illegal Firearm Possession

component: USAO - North Carolina, Eastern

body_text: RALEIGH, N.C. – A Fayetteville Crip gang member was sentenced to 77 months in prison for possession of a firearm by a felon after being found with several guns. On November 29, 2023, Demarco McLucas, age 22, pled guilty to the charge. According to court documents and other information presented in court, on February 22, 2023, detectives with the Fayetteville Police Department (FPD) located McLucas at a Fayetteville residence to serve an outstanding warrant. When they arrived, they found McLucas in the residence and a subsequent search of the property resulted in the seizure of a stolen, loaded, .40 caliber handgun with a high-capacity magazine, two other loaded, high-capacity magazines, additional ammunition, marijuana, cocaine, and drug packaging material. They also found photos and videos of McLucas holding several guns, including an AR-15 style rifle with a high-capacity magazine and other firearms with suspected machine gun conversion devices. A handgun in his possession was linked by NIBIN testing to shell casings found at several shooting crime scenes in the Fayetteville area. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant U.S. Attorneys Bryan Stephany and Jermaine Sellers prosecuted the case. The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is a collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing. 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 No. 5:23-CR-206-BO-RJ-1. ###