title: Flight Attendant and Two Bank Employees Charged in Federal Indictment of Alleged Mexico-Based Drug Trafficking Organization

component: Drug Enforcement Administration (DEA)

body_text: CHICAGO — A flight attendant and two bank employees in Indiana have been charged in a federal indictment that accuses a Mexico-based drug trafficking organization of moving thousands of kilograms of cocaine into the United States and laundering tens of millions of dollars in proceeds. A superseding indictment unsealed Friday in U.S. District Court in Chicago charges flight attendant GLENIS ZAPATA, 34, of Lafayette, Ind., with assisting the traffickers in the transportation of drug proceeds on commercial airline flights. Glenis Zapata possessed a “Known Crew Member” badge and used her authority to help the traffickers move cash drug proceeds from the Midwest to the southern part of the U.S. and into Mexico, the indictment states. The traffickers also allegedly used other means to ship the money, including semi-trailer trucks and a private charter airplane that was seized by federal authorities in 2021 at the Gary/Chicago International Airport in Gary, Ind. The two bank employees – ILENIS ZAPATA, 33, of Lafayette, Ind., and GEORGINA BANUELOS, 39, of Lafayette, Ind. – helped launder the drug proceeds by exchanging lower denominated bills for higher denominated bills, the indictment states. Ilenis Zapata and Banuelos, who worked together at a bank in Lafayette, Ind., also knowingly and willfully failed to file currency reports for the transactions, as required under federal law, the indictment states. The superseding indictment added Glenis Zapata, Ilenis Zapata, and Banuelos as defendants and renewed conspiracy and money laundering charges previously filed against 15 others, including the alleged leader of the drug trafficking organization, OSWALDO ESPINOSA, 41, of Mexico; the organization’s primary manager, JORGE BORBON-OCHOA, 46, of Mexico; and the head of its Chicago operations, RICARDO TELLO, 37, of Mission, Texas. Espinosa’s organization allegedly transported the cocaine in wholesale quantities from Mexico to various U.S. cities, including Chicago, from 2018 to 2023. The traffickers used warehouses, garages, and stash houses in Chicago to receive and store the cocaine and cash, the indictment states. Arraignments on the superseding charges have not yet been scheduled. The superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration, LaFonda Sutton-Burke, Director of the Chicago Field Office of U.S. Customs and Border Protection, Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office. Substantial assistance was provided by the Federal Deposit Insurance Corporation’s Office of Inspector General and the Lafayette, Ind. Police Department. The government is represented by Assistant U.S. Attorneys Andrew Erskine, Ashley Chung, and Adam Rosenbloom. The case is part of an Organized Crime Drug Enforcement Task Forces investigation. OCDETF identifies, disrupts, and dismantles drug traffickers and other criminal offenders that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement against criminal networks. The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Espinosa et al indictment


title: California Woman Sentenced to Nearly Four Years in Federal Prison for Trafficking Methamphetamine in Rhode Island

body_text: PROVIDENCE, RI – A Mexican national who, at the direction of an individual incarcerated in a Maine prison, participated in the delivery of four pounds of methamphetamine to a courier who drove to Rhode Island from Maine to take possession of the drugs, has been sentenced to nearly four years in federal prison, announced United States Attorney Zachary A. Cunha. According to court documents, while under law enforcement surveillance in Rhode Island on June 6, 2022, Nora Cecilia Carranza Reyes, 52, of Huntington Park, CA, participated in the delivery of a paper bag that contained four pounds of crystal meth to an individual who, at the direction of the Maine inmate, traveled to Rhode Island from Maine to retrieve the drugs. That individual was kept under constant law enforcement surveillance while returning to Maine, and the drugs were seized by law enforcement during a traffic stop in Maine. A court-authorized search of Carranza Reyes’ motor vehicle in Rhode Island at the time of her arrest on June 8, 2022, resulted in the discovery of more than two-and one-half pounds of methamphetamine stashed inside a duffel bag and in a sophisticated hide located within the engine compartment of the vehicle. Carranza Reyes pleaded guilty on January 25, 2024, to a charge of conspiracy to distribute and possess with intent to distribute methamphetamine and to a charge of possession with intent to distribute methamphetamine. She was sentenced today by U.S. District Court Judge Mary S. McElroy to forty-six months of incarceration to be followed by three years of federal supervised release. The case was prosecuted by Assistant United States Attorney Stacey A. Erickson. The matter was investigated by the Drug Enforcement Administration. United States Attorney Cunha thanks the United States Attorney’s Office for the District of Maine and the DEA in Bangor, Maine, for their assistance. ###


title: Lead Drug Trafficker Sentenced for Escorting More than  100 Kilos of Pure Methamphetamine through Pawnee County

body_text: TULSA, Okla. – A man was sentenced today for his lead role in organizing the drug trafficking of more than 100 kilos of pure methamphetamine, announced U.S. Attorney Clint Johnson. U.S. District Judge John F. Heil, III, sentenced Jabier Bustos, 35, to 324 months imprisonment, followed by 5 years of supervised release for Drug Conspiracy. “Today’s prison sentence puts criminals who bring dangerous drugs into the Northern District of Oklahoma, on notice of the cost of that activity,” said U.S. Attorney Clinton Johnson. “My office will continue to work towards disrupting and dismantling any criminal organization trying to operate in our backyards. With the collaboration of several law enforcement partners, more than 100 kilos of pure methamphetamine were stopped from being distributed into the Northern District of Oklahoma.” “The importance of the defendant’s sentence cannot be overstated. He knowingly smuggled and distributed hundreds of pounds of methamphetamine and other dangerous drugs across Oklahoma,” said Robert Melton, Assistant Special Agent in Charge for the HSI Dallas – Oklahoma Division. “Meth is a major concern affecting our society, with connections to violent crime, theft, addiction, and hundreds of overdose fatalities in the last few years. HSI will aggressively investigate any individual or transnational criminal organization seeking to jeopardize the well-being and safety of our communities through the illicit drug trade.” “This investigation demonstrates the tremendous importance of state and federal partnerships working to identify and dismantle criminal drug trafficking organizations. Oklahoma continues to see the devastating impact of methamphetamine and fentanyl on lives and communities. And my agency will aggressively target and help prosecute these traffickers who threaten the peace and safety of this state.” — OBN Director Donnie Anderson According to court documents, Bustos collaborated with his co-defendant, Abel Anthony Flores to get the pure methamphetamine from a drug trafficking organization. Once Bustos and Flores received the delivery they facilitated and escorted more than 101 kilograms of pure methamphetamine through Pawnee County. They both expected to be paid for their involvement in escorting the drugs. Agents not only seized the pure methamphetamine but also found cocaine, fentanyl pills, and several firearms during a search warrant. Flores previously pled guilty to Drug Conspiracy and was sentenced by U.S. District Judge David O. Nuffer in Feb. 2024. Judge Nuffer ordered Flores to 135 months imprisonment, followed by five years of supervised release. Bustos will remain in custody pending transfer to the U.S. Bureau of Prisons. The Homeland Security Investigations, Oklahoma Bureau of Narcotics, and Tulsa County Sheriff’s Office investigated the case. Assistant U.S. Attorney Joel-lyn A. McCormick prosecuted the case. The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF .


title: Justice Department Secures Landmark Agreement with City of Anoka, Minnesota, to End Disability Discrimination in “Crime-Free” Housing Program

component: Civil Rights Division

body_text: The Justice Department announced today that it filed a complaint and proposed consent decree to resolve allegations that the city of Anoka, Minnesota, violated the Americans with Disabilities Act (ADA) and the Fair Housing Act by denying tenants with mental health disabilities an equal opportunity to receive emergency assistance. Under Anoka’s rental licensing and “crime free” housing ordinance, the city can penalize landlords for “nuisance calls” to their properties. Nuisance calls include disorderly conduct and “unfounded” calls to the police. The department previously found that because of the nuisance ordinance, when tenants with mental health disabilities and those associated with them (like their families or landlords) request or receive emergency assistance, they risk eviction, fines or loss of a rental license. “So-called ‘crime-free’ ordinances are often fueled by discriminatory objectives, and have the effect of destabilizing communities and promoting fear intended to drive people from their homes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Anoka’s so-called ‘crime-free’ housing program does not protect public safety but rather risks lives by discouraging people with disabilities and their loved ones from calling for help when needed most. No person should feel discouraged from seeking help during a mental health crisis. The Justice Department is committed to contesting discriminatory ‘crime free’ ordinances and programs that block, discourage or penalize people for simply accessing emergency services.” For years, the city also sent weekly reports to landlords detailing calls for emergency service from all rental properties. These reports often revealed personal and sensitive information about residents’ mental health disabilities, such as their diagnoses, medications or even suicide attempts. The city used these reports to notify landlords of potential nuisance calls and encourage landlords to evict tenants. The proposed consent decree resolves the department’s allegations that the city, through its “crime-free” housing program, discouraged and prevented tenants with mental health disabilities and those associated with them from seeking emergency assistance, including during medical or mental health crises. Under the proposed consent decree, which must be approved by the U.S. District Court for the District of Minnesota, the city has agreed to pay a total of $175,000 to compensate individuals harmed by the program; end its practice of publicizing the disability, medical and health information of individuals with mental health disabilities; adopt non-discrimination policies and complaint procedures; notify landlords, property owners and tenants of changes to the program; designate an ADA coordinator; train staff and provide reports to the department during a monitoring period. Individuals who believe they were harmed by the city’s “crime-free” housing program may be entitled to compensation under the settlement fund and should contact the Justice Department at Anoka@usdoj.gov or by calling the toll-free number 888-473-3940. In late 2022, the department also settled a lawsuit against the City of Hesperia, California, and the San Bernardino County Sheriff’s Department alleging that their implementation of a “crime-free” program and ordinance discriminated on the basis of race and national origin in violation of the Fair Housing Act and Title VI of the Civil Rights Act of 1964. Black renters were almost four times more likely, and Hispanic renters 29% more likely, to be evicted under Hesperia’s program than white renters. For more information on the Civil Rights Division and the civil rights laws it enforces, please visit www.justice.gov/crt . Individuals may submit a report of discrimination online , call 833-591-0291 to report housing discrimination or call 800-514-0301 (TTY 1-833-610-1264) to report disability discrimination and to reach the department’s ADA Information Line.


title: Orthopedic Surgeon Sentenced to More Than One Year in Prison for Health Care Fraud

component: USAO - Massachusetts

body_text: BOSTON – A Canton orthopedic surgeon was sentenced today in federal court in Boston for his role in a health care fraud scheme. Dr. Olarewaju James Oladipo, 60, of Canton, was sentenced by U.S. District Court Judge Allison D. Burroughs to 16 months in prison, followed by one year of supervised release. In December 2023 , Oladipo was convicted by a federal jury of 10 counts of health care fraud. From approximately January 2016 through December 2019, Oladipo devised and executed a scheme to defraud health care benefit programs by falsely billing for patient visits. Specifically, Oladipo used billing codes for more complex—and thus more expensive—services that were not provided. Oladipo falsified medical records of patient visits to reflect examinations and services that were not performed. During the four-year period, Oladipo frequently billed for more than 60 patients per day and sometimes more than 100 patients per day. The result was that many, if not most, of Oladipo’s patient visits on such days could have only lasted five minutes or less. However, Oladipo used billing codes that typically corresponded to visits of 15, 25, 30, or even 45 minutes. Additionally, Oladipo ensured this high flow of patients to his practice by prescribing powerful, highly addictive opioids at a rate that made him one of the top prescribers of such drugs in Massachusetts. The evidence presented at trial showed that Oladipo knowingly prescribed oxycodone to patients suffering from opioid addiction. The U.S. Attorney’s Office for the District of Massachusetts; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Roberto Coviello, Special Agent in Charge, Health and Human Services-Office of Inspector General; and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office made the announcement. Valuable assistance was provided by the Massachusetts Attorney General’s Office; National Insurance Crime Bureau; and the Drug Enforcement Administration. Assistant U.S. Attorneys Evan D. Panich and William B. Brady are prosecuting the case.


title: Wisconsin Man Indicted for Kidnapping Greenville Child

component: USAO - South Carolina

body_text: GREENVILLE, S.C. — A federal grand jury in Greenville returned a three-count indictment against Tyler Michael Berlick, 35, of Muskego, Wisconsin, for traveling across state lines with intent to engage in illicit sexual conduct with a minor, transporting a minor across state lines with the intent to engage in sexual conduct, and production of child sexual abuse materials.* The indictment alleges that in February of this year, Berlick traveled from Wisconsin to South Carolina with the intent to engage in sexual activity with a minor and then traveled with the minor to Florida with the intent to engage in illicit sexual conduct. Berlick met the child in an online game and believed she was 13 years old. Berlick is also charged with one count of production of child sexual abuse materials. Berlick faces a maximum penalty of life in prison. He is scheduled to be arraigned on May 23 at 10 a.m. before Magistrate Judge Kevin McDonald. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc . The case was investigated by the FBI Columbia Field Office, the Greenville County Sheriff’s Office, the FBI Miami Field Office, the Lantana Police Department (Florida), the Monroe County Sheriff’s Office (Florida) and the Waukesha County Sheriff’s Department (Wisconsin). Assistant U.S. Attorney Winston Marosek is prosecuting the case. U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty. ### * The term “child pornography” is currently used in federal statutes and is defined as any visual depiction of sexually explicit conduct involving a person less than 18 years old. While this phrase still appears in federal law, “child sexual abuse material” is preferred, as it better reflects the abuse that is depicted in the images and videos and the resulting trauma to the child.


title: Tuskahoma Resident Pleads Guilty To Federal Firearm Offense

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

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Russell Richard Fincher, age 53, of Tuskahoma, Oklahoma, pleaded guilty pursuant to a written plea agreement to selling ammunition to a prohibited person. The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. As part of the plea agreement, Fincher admitted during the plea hearing that on May 5, 2023, he knowingly sold 60 rounds of .40 caliber ammunition to an individual he had reason to believe was a felon. Fincher also admitted that between February 2021 and June 2023, he unlawfully engaged in the business of dealing in firearms without a license. Federal law requires that people engaged in the business of dealing in firearms, defined as repeatedly devoting time and attention to purchasing and reselling guns for monetary gain, obtain Federal Firearms Licenses, or FFLs, and run background checks on potential buyers. The Honorable D. Edward Snow, U.S. Magistrate Judge in the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Assistant United States Attorney Joshua Satter represented the United States.


title: Three Members Of Drug Enterprise Sentenced For Federal Drug Crimes

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that three Oklahoma residents, DONALD PAUL SPITTLER, age 42, of Holdenville, SUSAN MELODY SAXON, age 49, of Shawnee, and DANNA LAVON MCCARLEY, age 38, of Ardmore, were sentenced for federal drug charges. Spittler was sentenced to 360 months in prison for one count of Drug Conspiracy, Saxon was sentenced to 63 months in prison for one count of Possession with Intent to Distribute Methamphetamine, and McCarley was sentenced to 63 months in prison for one count of Drug Conspiracy. The charges arose from investigations by the Drug Enforcement Administration, the United States Postal Inspection Service, the Oklahoma Bureau of Narcotics, and the District 22 Drug Task Force. On January 19, 2023, Spittler and McCarley each pleaded guilty to one count of Drug Conspiracy. On February 7, 2023, Saxon pleaded guilty to one count of Possession with Intent to Distribute Methamphetamine. According to investigators, Spittler, Saxon, and McCarley participated in a scheme to obtain and distribute methamphetamine in the Eastern District of Oklahoma. In January 2022, McCarley used a vehicle belonging to Spittler and Saxon to travel to El Centro, California. In El Centro, McCarley obtained a large quantity of methamphetamine, divided it into separate parcels, and sent the parcels priority overnight mail. The packages were addressed to residences in the Eastern District of Oklahoma. The U.S. Postal service flagged the parcels as suspicious, and a narcotics canine alerted on the packages. USPIS investigators obtained and executed a search warrant finding a package addressed to Spittler at a residence associated with Saxon contained nearly 3,000 grams of methamphetamine; a second parcel addressed to McCarley contained over 2,000 grams of methamphetamine. Law enforcement officers replaced the original parcels with dummy packages and completed the controlled deliveries. Agents executed federal search warrants on the residences which led to the discovery of additional quantities of methamphetamine, scales, and money. “Methamphetamine continues to be one of the most dangerous and prevalent illicit drugs in Oklahoma, tearing families apart and ruins lives as it makes its way into our neighborhoods,” said DEA Dallas Special Agent in Charge, Eduardo A. Chávez, who leads operations in Oklahoma. “Defendants Spittler, Saxon, and McCarley are now learning the hard way that the strong law enforcement partnerships in Eastern Oklahoma will always see that justice prevails.” “The USPIS seeks to rid the mail of illicit drug trafficking and the associated violence, preserve the integrity of the mail, and, most importantly, provide a safe environment for postal employees and Postal Service customers — the American public,” said Inspector in Charge Kai Pickens of the Fort Worth Division. “We are thankful for our partnerships with the DEA, OBN, District 22 Drug Task Force, and USAO. We will not stop pursuing those who seek to utilize the mail system for illicit drug trafficking. We will continue our long standing tradition of protecting the mail system and effectively enforcing the laws of this nation.” “We cannot overstate the importance of these collaborative investigations,” said OBN Director Donnie Anderson. “Methamphetamine continues to be a leading cause of drug-related deaths in Oklahoma. My agency is committed to working along-side our state and federal partners to target, arrest, and prosecute those responsible for distributing meth onto the streets of Oklahoma.” “I would like to start by first offering my gratitude to the dedicated state and federal law enforcement agencies that were involved in this investigation, and secondly I want to acknowledge the great work of our partner prosecutors in the Eastern District, specifically the service of AUSA Erin Cornell,” said Erik Johnson, District Attorney for District 22, representing Pontotoc, Seminole and Hughes Counties. “We are in a daily battle to keep dangerous drugs out of our communities, and collaborative work on cases like this is becoming the new normal and making our efforts much more successful.” “I commend the DEA, OBN, District 22 Drug Task Force, and USPIS for their collaboration and excellent investigative work in dismantling this drug trafficking organization,” said United States Attorney Christopher J. Wilson. “It remains our collective mission to curtail the flow of illegal drugs into our communities and to hold drug distributors accountable.” The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. The Defendants will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentences of incarceration. Assistant United States Attorney Erin Cornell represented the United States.


title: Convicted Sex Offender Sentenced to Federal Prison for Illegal Reentry to the United States

component: USAO - Rhode Island

body_text: PROVIDENCE, RI – A convicted sex offender deported to his native Guatemala from the United States in April 2019 following his conviction and incarceration on a Rhode Island state charge of indecent solicitation of a minor was sentenced today to twelve months and one day in federal prison for illegally reentering the United States, announced United States Attorney Zachary A. Cunha. According to information presented to the court, Carlos Gregorio Santos, 52, was arrested by Providence Police on September 29, 2023, following an investigation into an alleged altercation between himself and another man over a dispute about wages. At the time of his arrest, in an apparent effort to shield his true identity, the defendant provided police with a false name and false date of birth. The FBI later confirmed his real identity. Santos pleaded guilty in U.S. District Court on February 15, 2024, to a charge of illegal reentry after removal. He was sentenced today by U.S. District Court Judge Mary S. McElroy to twelve months and one day in prison to be followed by one year of federal supervised release. Santos faces deportation upon completion of his current term of incarceration. The case was prosecuted by Assistant U.S. Attorney Julie M. White. The matter was investigated by U.S. Immigration and Custom Enforcement, with the assistance of the FBI and Providence Police Department. ###


title: Missoula fentanyl trafficker sentenced to more than four years in prison

body_text: MISSOULA — A Missoula woman who admitted to distributing fentanyl in the community was sentenced today to four years and two months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said. The defendant, Janelle Ann Bergeson, 38, pleaded guilty in January to possession with intent to distribute controlled substances. U.S. District Judge Donald W. Molloy presided. The government alleged in court documents that from at least September 2022 to January 2023, Bergeson distributed fentanyl in the Missoula community, and on at least one occasion, traveled with a co-conspirator to acquire the drug in Spokane, Washington. The government estimated that Bergeson is accountable for the distribution of from 2,400 fentanyl pills to 6,000 pills. During an investigation, federal agents intercepted a package addressed to co-defendant Nikolas Pellant and that contained several hundred fentanyl pills. The investigation determined Pellant and his girlfriend and co-defendant, Lynsi Barnes, had been selling the drug that they acquired through the mail and regular trips to Spokane. Bergeson was their primary customer and purchased between 40 and 100 pills every day. In a traffic stop in January 2023, the Montana Highway Patrol stopped Barnes as she was returning from a trip to Spokane, and Bergeson was in the front passenger seat. Law enforcement searched the vehicle and seized more than 450 fentanyl pills. Pellant, Barnes and a third co-defendant, Beau James Breneman, each were sentenced to five years and three months for their convictions in the case. Assistant U.S. Attorney Karla E. Painter prosecuted the case. The Missouri River Drug Task Force, Drug Enforcement Administration, Homeland Security Investigations, U.S. Postal Service, Montana Highway Patrol, Montana Division of Criminal Investigation, Missoula County Sheriff’s Office, Lewis and Clark County Sheriff’s Office and Shoshone County (Idaho) Sheriff’s Office conducted the investigation. XXX


title: Man Sentenced for Laundering Over $4.5M Obtained from Business Email Compromise and Romance Fraud Schemes

component: Criminal Division

body_text: A Georgia man was sentenced today to 10 years in prison for laundering more than $4.5 million derived from business email compromise (BEC) schemes, including a scheme that defrauded a health care benefit program, and romance fraud schemes. According to court documents and evidence presented at sentencing, Malachi Mullings, 31, of Sandy Springs, opened 20 bank accounts in the name of a sham company, The Mullings Group LLC. From at least 2019 through July 2021, Mullings used those accounts to launder millions of dollars of fraud proceeds generated by BEC schemes targeting, among others, a health care benefit program and private companies, and romance fraud schemes targeting numerous individual victims, several of whom were elderly. Together with his co-conspirators, Mullings engaged in financial transactions designed to conceal the fraud proceeds and used some of the proceeds to purchase luxury items, such as expensive cars and jewelry. In one instance, Mullings laundered $310,000 that was fraudulently diverted from a state Medicaid program and had been intended as reimbursement for a hospital. In another instance, Mullings obtained $260,000 from a romance scam, which Mullings used to purchase a Ferrari. Mullings pleaded guilty in January 2023 to one count of conspiracy to commit money laundering and seven counts of various money laundering offenses. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Kansas City Region; Special Agent in Charge Demetrius D. Hardeman of IRS Criminal Investigation (IRS-CI) Atlanta Field Office; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; and Special Agent in Charge Eugene S. Kowel of the FBI Omaha Field Office made the announcement. HHS-OIG, IRS-CI, and the FBI investigated the case. Trial Attorneys Gary Winters and Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kelly Connors for the Northern District of Georgia prosecuted the case. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit .


title: Houstonian heads to prison in $1.7M insider trading scheme using wife’s private company information

component: USAO - Texas, Southern

body_text: HOUSTON – A 42-year-old man has been sentenced for securities fraud, announced U.S. Attorney Alamdar S. Hamdani. Tyler Loudon pleaded guilty Feb. 22. U.S. District Judge Sim Lake has now ordered Loudon to serve 24 months in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, Judge Lake noted a significant sentence of incarceration was required to reflect the seriousness of the offense, promote respect for the law and afford adequate deterrence to this type of criminal conduct. “Insider trading is rampant, extremely difficult to uncover and adversely affects the integrity of the financial markets and the public perception of the markets,” said Hamdani. “These types of offenses erode the public’s confidence in the integrity of the markets and lead to widespread cynicism that the markets are rigged in favor of a fortunate few. Mr. Loudon was only able to commit this crime because he had an unfair advantage: his spouse was an insider who gave him material nonpublic information. This sentence sends a clear message to those who would take advantage of their access to confidential insider information to personally profit are not above the law.” “Mr. Loudon took advantage of his and his wife’s ‘work from home’ situation and betrayed his spouse by eavesdropping on her confidential business calls to realize a profit of $1.7M in less than two months,” said Special Agent in Charge Douglas Williams of the FBI Houston field office. “Insider trading cases like this one cause damage to everyday investors, our economy and the public’s trust in the fairness of our financial markets. Fair trading laws and regulations are in place so that anyone who can, and wants to, participate in the stock market does, but on an equal playing field.” Loudon made $1.7 million in illegal profits from the purchase and sale of stock market shares. Loudon’s wife was an associate manager in mergers and acquisitions at international oil and gas company. Loudon learned her company was planning to purchase a travel center operator business. Unbeknownst to his spouse, Loudon used the non-public information about the expected acquisition to purchase 46,450 shares ahead of the public notice. After the announcement, the travel center’s stock price increased. Loudon then sold his shares for a substantial profit. Prior to sentencing, Loudon forfeited the $1.7 million in illegal proceeds to the United States. Loudon will self-surrender to a Bureau of Prisons facility to be determined in the near future. The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and the Financial Industry Regulatory Authority. Assistant U.S. Attorney Karen M. Lansden prosecuted the case.


title: Wewoka Resident Sentenced To 108 Months In Prison For Involuntary Manslaughter, Assault, And Federal Firearm Charges

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Matthew Kyle Pinson, age 37, of Wewoka, Oklahoma, was sentenced to 51 months in prison for one count of Involuntary Manslaughter, and 51 months in prison for one count of Felon in Possession of a Firearm, to be served concurrently. Pinson was also sentenced to 57 months in prison for one count of Assault resulting in Serious Bodily Injury, to be served consecutive to the other terms of imprisonment. The charges arose from investigations by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma State Bureau of Investigation, the Seminole County Sheriff’s Office, and the Seminole Nation Lighthorse Police Department. On July 25, 2023, Pinson pleaded guilty to the charges. According to investigators, on January 16, 2022, Pinson physically assaulted an individual, causing significant facial injuries that required surgery. Three days later, on January 19, 2022, Pinson, a convicted felon, discharged a firearm, killing a second individual. The crimes occurred in Seminole County, within the boundaries of the Seminole Nation of Oklahoma Reservation, in the Eastern District of Oklahoma. The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. Pinson will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration. Assistant United States Attorney Erin Cornell represented the United States.


title: Huntington Man Pleads Guilty to Federal Gun Crime

component: USAO - West Virginia, Southern

body_text: HUNTINGTON, W.Va. – Quintez Robert Kilgore, also known as “Cortez Robert Jackson,” 28, of Huntington, pleaded guilty today to being a felon in possession of a firearm. According to court documents and statements made in court, on November 6, 2023, law enforcement officers encountered Kilgore on the 200 block of Olive Street in Huntington while searching for a fugitive. Kilgore admitted that he possessed a Glock Model 33 .357-caliber pistol that he placed underneath a nearby vehicle to conceal it as the officers approached him. The officers saw Kilgore’s attempt to hide the firearm and seized it. Kilgore admitted that he also possessed 12.64 grams of cocaine base, also known as “crack,” and 9.78 grams of fentanyl that the officers found and seized. Kilgore further admitted that he intended to distribute the seized controlled substances. Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Kilgore knew he was prohibited from possessing a firearm because of his prior felony convictions for possession with intent to distribute a controlled substance in Cabell County Circuit Court on October 12, 2017, and being a person prohibited from possessing firearms in Wayne County Circuit Court on January 8, 2020. Kilgore is scheduled to be sentenced on September 3, 2024, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service (USMS) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case. 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. 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. 3:24-cr-6. ###


title: Federal Grand Jury Indicts Three Men in Connection With Violent Robberies of Chicago Businesses

body_text: CHICAGO — A federal grand jury has indicted three men for allegedly conspiring to violently rob several liquor stores and convenience stores in Chicago. Charged with federal conspiracy and firearm offenses are ARDARIES HARRIS, 26, of Chicago, JORDAN FOX, 24, of Chicago, and ROOSEVELT VEAL, 26, of Rockford, Ill., and formerly of Chicago. All three defendants have been ordered detained in federal custody pending trial. According to an indictment returned Monday in U.S. District Court in Chicago, the robbers wore masks and brandished firearms in five heists in November 2023 and January 2024: Nov. 24, 2023: Veal and a co-conspirator robbed Super Saving Food, located in the 4400 block of West Belmont Avenue in Chicago. Jan. 13, 2024: Harris, Fox, and a co-conspirator robbed Buchanas Food & Liquor, located in the 1800 block of West 47th Street in Chicago. Jan. 15, 2024: Harris, Fox, Veal, and a co-conspirator robbed Mr. P Beverage Depot, located in the 2000 block of West Division Street in Chicago. Jan. 15, 2024: Harris, Fox, Veal, and a co-conspirator robbed Before You Go Liquor, located in the 1900 block of West Fullerton Avenue in Chicago. Jan. 15, 2024: Harris, Fox, Veal, and a co-conspirator robbed Clybourn Market, located in the 2800 block of North Clybourn Avenue in Chicago. In addition to the five robberies, the indictment alleges that the conspiracy continued until May 4, 2024, and involved additional heists, including robberies of bars in Chicago. The federal investigation remains ongoing. The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by Homeland Security Investigations in Chicago and the Illinois State Police. The government is represented by Assistant U.S. Attorneys Emily C.R. Vermylen and Stephanie Stern. The investigation was conducted in coordination with ATF’s Crime Gun Intelligence Center of Chicago . The CGIC is a centralized law enforcement hub that focuses exclusively on investigating and preventing gun violence in Chicago and throughout northern Illinois. The CGIC is an interagency collaboration that brings together - under one roof - federal, state, and local law enforcement officers, prosecutors, and intelligence analysts to move quickly to investigate and prosecute violent crimes. Holding firearm offenders accountable through federal prosecution is the centerpiece of Project Safe Neighborhoods , a nationwide Department of Justice initiative that brings together law enforcement officials, prosecutors, community leaders, and other stakeholders to develop comprehensive solutions to the most pressing violent crime problems. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses. The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Harris et al indictment


title: Former Professor Charged With Obstructing Justice By Falsifying Records

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a Criminal Information charging MATTHEW QUEEN with falsification of records in connection with falsified notes Queen produced to the FBI related to an ongoing federal investigation. QUEEN was arraigned on the Information before U.S. District Judge Lewis Kaplan earlier today. U.S. Attorney Damian Williams said: “As alleged, Matthew Queen attempted to interfere with a federal grand jury investigation by creating false notes in an attempt to corroborate his own lies. The criminal obstruction charge announced today should exemplify the seriousness of attempts by any individual to manipulate or interfere with a federal investigation.” FBI Assistant Director in Charge James Smith said: “Matthew Queen, an interim Provost, allegedly failed to inform the FBI of a conspiracy to destroy evidence related to the ongoing investigation of sexual misconduct and instead produced falsified notes to investigators. Queen’s alleged actions deliberately violated a court order and delayed justice for the sexual abuse victims. The FBI will never tolerate those who intentionally lie and mislead our investigation in an attempt to conceal their malicious behavior.” According to the allegations in the Information filed today in Manhattan federal court and other public statements made in court: [1] Since approximately 2022, the U.S. Attorney’s Office for the Southern District of New York (“U.S. Attorney’s Office”) and the FBI have been investigating allegations of sexual abuse and misconduct related to a national religious denomination (the “Denomination”) and its affiliated entities, and the alleged cover-up of such allegations by individuals and entities associated with the Denomination. In October 2022, as part of that investigation, a grand jury subpoena was issued to a seminary that is affiliated with the Denomination (the “Seminary). Among other things, the subpoena required the production of all documents in the Seminary’s possession related to allegations of sexual abuse against anyone employed by or associated with the Seminary. The following month, in November 2022, a Seminary employee (“Employee-1”) received a report alleging that a current Seminary student had committed sexual abuse. Employee-1 immediately notified the campus police at the Seminary. No further action was taken by the Seminary at that time, however, and the allegation was not reported to the U.S. Attorney’s Office. In January 2023, Employee-1 created a document describing the sexual abuse allegation Employee-1 received in November 2022, and the failure of the Seminary to take action regarding the allegation at that time (the “Document”). On January 26, 2023, Employee-1 met with MATTHEW QUEEN, the then-Interim Provost and professor at the Seminary, and a member of the Seminary’s executive staff (“Employee-2”). During that meeting, and in QUEEN’s presence, Employee-2 directed Employee-1, in sum and substance, to destroy the Document. In May 2023, the U.S. Attorney’s Office and the FBI interviewed MATTHEW QUEEN in Fort Worth, Texas regarding the January 26, 2023 meeting with Employee-2 and Employee-1. During that interview, QUEEN falsely stated that he had not heard Employee-2 direct Employee-1 to destroy the document. Three days after the interview, QUEEN falsely stated to another Seminary employee (“Employee-3”) that he had just located a notebook in his office containing purportedly contemporaneous notes of the January 26, 2023 meeting. The notes falsely stated that during the January 26, 2023 meeting, Employee-2 and Employee-1 merely discussed providing the Document to a different department at the Seminary, and omitted the fact that Employee-2 had directed Employee-1 to destroy the Document. Queen provided the falsified notes to Employee-2 to produce in response to the grand jury subpoena. In June 2023, MATTHEW QUEEN provided the U.S. Attorney’s Office with a copy of his notes. On June 20, 2023, QUEEN met again with the U.S. Attorney’s Office and the FBI in New York and produced the original notebook containing his notes. During his second interview, QUEEN initially falsely stated that he had written the notes contemporaneously with the January 26, 2023 meeting, but then during the same meeting, QUEEN falsely stated that he instead had written the notes months later, in April 2023. In truth and in fact, QUEEN had written the notes following his initial May 2023 interview with the U.S. Attorney’s Office and the FBI. On June 21, 2023, MATTHEW QUEEN testified under oath that he had in fact heard Employee-2 direct Employee-1 to make the Document “go away.” * * * QUEEN, 49, of Greensboro, North Carolina, is charged with one count of falsification of records, which carries a maximum sentence of twenty years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams praised the outstanding investigative efforts of the FBI. He added that the investigation is ongoing. The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorney Jacqueline Kelly is in charge of the prosecution. The charges contained in the Information are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.


title: Final two defendants, a mother and daughter, were sentenced to prison for their involvement in elder fraud scheme

component: USAO - Florida, Southern

body_text: MIAMI – Five people, to include a mother and her daughter, were sentenced to federal prison for their involvement in a South Florida elder fraud scheme. Aisladys Diaz, 45, of Miami, Florida was a private duty health aide who worked with a home health aide agency. The agency provided home health aides to residents at senior communities in Miami-Dade County. From May to June 2020, Aisladys Diaz stole the personal identifiable information of two elderly residents under her care. Aisladys Diaz then shared the information with her daughter, Ailensy Buron Diaz, 29, also of Miami, Berto Omar Rodriguez Fonseca, a finance manager at a car dealership in Miami Lakes, and husband and wife Yandys Diaz, 30, and Yainelis Perez Diaz, 34, both of Hialeah, who used the information to purchase numerous new and used vehicles at car dealerships, at a cost totaling over $500,000, and apply for credit cards, an Economic Disaster Injury Disaster Loan (EIDL), and a Small Business Administration (SBA) loan under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. A jury previously convicted Aisladys Diaz and Ailensy Buron Diaz of conspiracy to commit access device fraud, use of an unauthorized access device, conspiracy to commit wire fraud, aggravated identity theft, and wire fraud. On May 3, Aisladys Diaz and Ailensy Buron Diaz were sentenced to 52 months and 48 months in prison, respectively, to be followed by three years of supervised release. A restitution hearing is scheduled for August 1. Rodriguez Fonseca previously pleaded guilty to conspiracy to commit access device fraud, aggravated identity theft, and conspiracy to commit wire fraud. Yainelis Perez Diaz and Yandys Diaz each pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft. On Dec. 20, 2023, Yainelis Perez Diaz, Yandys Diaz, and Rodriguez Fonseca were sentenced to 30 months, 36 months, and 40 months in prison, respectively, to be followed by three years of supervised release. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Scott H. Moffit of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Cybercrime Investigations Division, made the announcement. FBI Miami and TIGTA’s Cybercrime Investigations Division investigated the case. Assistant U.S. Attorney Robert Moore prosecuted 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: 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. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints. 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 . The Justice Department provides information about a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which are available at www.ovc.gov . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20354. ###


title: Bristol Man Admits Committing Numerous Violent Robberies Across Connecticut in 2022

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LONNY CROSS, 45, of Bristol, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to charges related to his commission of numerous violent robberies across Connecticut in September and October 2022. According to court documents and statements made in court, between September 5 and October 13, 2022, Cross committed 37 robberies and attempted robberies of gas station convenience stores, mini-markets, and liquor stores in North Branford, Waterbury, Wolcott, Plymouth, New Haven, North Haven, Orange, West Haven, Wethersfield, Bristol, Southington, Naugatuck, Watertown, Franklin, Norwich, Waterford, Groton City, Stonington, Ledyard, Darien, Norwalk, Stratford, and Seymour, Connecticut, and Port Chester, New York. (See attached list) Several of the robberies occurred on the same day, only minutes apart. Cross typically traveled to the victim-store with an accomplice who would sometimes enter the store to determine the number of employees and customers in the store, exit the store, and then report that information to Cross. Cross then entered the store, displayed a knife or facsimile firearm while threatening employees, and stole cash and other items. On October 14, 2022, investigators conducted court-authorized searches of Cross’s residence and a black 2014 Chevrolet Impala that Cross was known to drive. The search of the residence revealed clothing consistent with clothing worn by Cross in several of the robberies, as well as quantities of heroin, crack cocaine, and narcotics paraphernalia. A search of the car revealed 120 bags heroin, approximately 14 grams of crack, and a knit hat matching the description of one worn by Cross during a robbery the day before. Cross, who was on state parole, was arrested on state charges on that date. He has been detained since his arrest. Cross pleaded guilty to one count of conspiracy to commit Hobbs Act Robbery, and one count of Hobbs Act Robbery. Judge Dooley scheduled sentencing for August 21, at which time Cross faces a maximum term of imprisonment of 40 years. This investigation has been conducted by the FBI, Connecticut State Police, Orange Police Department, Port Chester (N.Y.) Police Department, and numerous other police departments from the municipalities where the robberies occurred, with the assistance of Connecticut State Parole. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff.


title: Maryland Man Charged with Fentanyl and Cocaine Offenses

component: USAO - West Virginia, Northern

body_text: MARTINSBURG, WEST VIRGINIA – Donald McDuffin Williams, age 49, of Baltimore, Maryland, was indicted on federal fentanyl and cocaine charges. Williams is charged with possession with intent to distribute fentanyl and possession with intent to distribute cocaine base. According to court documents, investigators suspected Williams of trafficking drugs in Harpers Ferry, West Virginia. They obtained a search warrant for a property where Williams was staying and found fentanyl and cocaine. Williams faces up to 20 years in federal prison for each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. This case was investigated by the Eastern Panhandle Task Force, a HIDTA-funded initiative. An indictment is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: North Little Rock Man Who Illegally Possessed Firearm Sentenced to Over 15 Years In Federal Prison

component: USAO - Arkansas, Eastern

body_text: LITTLE ROCK—Kamron Leemonte Mathis, a multi-convicted felon, will spend more than 15 years in federal prison for illegally possessing a firearm. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by United States District Judge James M. Moody, Jr. On October 11, 2023, Mathis, 27, of North Little Rock, pleaded guilty to one count of being a felon in possession of a firearm. On Tuesday, Judge Moody sentenced Mathis to 188 months in the Bureau of Prisons to be followed by five years of supervised released. Mathis, whose prior felony convictions all involved firearms, was indicted on December 7, 2022, on one count of being a felon in possession of a firearm. The maximum penalty Mathis faced was not less than 15 years to life in prison and a fine of $250,000. There is no parole in the federal system. Classified as an armed career criminal, Mathis’ sentence was based on the offense as well as his documented violent criminal history. Mathis has a prior conviction for being a felon in possession of a firearm as well as prior convictions for robbery on two different occasions, two counts of aggravated assault, and battery in the first degree. On June 25, 2022, North Little Rock Police Department officers stopped the vehicle that Mathis was driving because the registration had expired. Mathis, who was on parole at the time of the traffic stop and had a search waiver on file, was asked to step out of the vehicle. During this search of the vehicle, a 9 mm firearm was found under the driver’s seat. Also found were two magazines and approximately 24 rounds of ammunition. The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Little Rock Police Department. # # # Additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available online at https://www.justice.gov/edar X (formerly known as Twitter): @USAO_EDAR


title: Irmo Man Sentenced to 11 Years in Federal Prison for Fentanyl Distribution and Gun Violations

body_text: COLUMBIA, S.C. — Joseph Anthony Johnson, 34, of Irmo, was sentenced to 11 years in federal prison after pleading guilty to distributing fentanyl and for two convictions of felon in possession of a firearm. On Jan. 24, 2022, according to evidence presented in court, officers with the West Columbia Police Department found Johnson in possession of fentanyl and a loaded .380 caliber handgun with an obliterated serial number. That firearm was stolen, and Johnson was prohibited from possessing any firearm at the time due to multiple prior felony convictions. Johnson had 19 prior convictions, including for assault and battery 3rd degree, methamphetamine distribution, seven drug possessions, an illegal firearm possession, resisting arrest, failure to stop on police command, and financial transaction card theft. On Feb. 15, 2022, and again on Feb. 24, 2022, while out on bond for the conduct above, Johnson sold heroin and another loaded .380 caliber pistols to an undercover source. Johnson was armed with a firearm in his waistband during one of the drug transactions. On July 22, 2022, when Johnson was arrested for the conduct above, he was again found with heroin and fentanyl. United States District Judge Mary Geiger Lewis sentenced Johnson to 11 years in federal prison with six years of court-ordered supervision to follow. There is no parole in the federal system. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Columbia Police Department, the Lexington County Sheriff’s Department, and the South Carolina Law Enforcement Division (SLED). Assistant U.S. Attorney Elliott B. Daniels prosecuted the case. ###


title: Huntington Woman Sentenced to Prison for Federal Drug Crime

body_text: HUNTINGTON, W.Va. – Amy Lynn Carter, 40, of Huntington, was sentenced today to six years and 15 days in prison, to be followed by four years of supervised release, for possession with intent to deliver 5 grams or more of methamphetamine. According to court documents and statements made in court, on January 20, 2021, Carter was a passenger in a vehicle parked at a Barboursville convenience store when a law enforcement officer approached the vehicle. The officer observed drug paraphernalia in plain view within the vehicle. A police K-9 alerted to the presence of controlled substances in the vehicle. Officers searched the vehicle and found 19 grams of a heroin and fentanyl mixture, more than 242 grams of methamphetamine and $10,300. Carter admitted that she possessed the seized methamphetamine and intended to distribute it. Carter further admitted that she intended to buy approximately 8 pounds of methamphetamine in Ohio with the cash found in the vehicle for distribution within the Southern District of West Virginia. United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Cabell County Sheriff’s Department. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Troy D. Adams prosecuted the case. 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. 3:22-cr-19. ###


title: Former Program Director at the U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights and Nephew Arrested in Kickback Scheme

component: USAO - District of Columbia

body_text: WASHINGTON – Kirk Perry, 59, of Lorain, Ohio, and his nephew Jamarea Grant, 30, of Cleveland, Ohio, were arrested this morning on wire fraud and conspiracy charges filed in U.S. District Court in Washington, D.C., announced U.S. Attorney Matthew M. Graves, and Inspector General Phyllis K. Fong of the U.S. Department of Agriculture Office of Inspector General. Both defendants are expected to make their initial appearance in the Northern District of Ohio today. According to the indictment, from August 2015 through November 2022, Perry, a United States Department of Agriculture (USDA) Program Director, arranged for Grant to be hired by two companies under contract with the USDA Office for Civil Rights. Court documents allege that Grant reported directly to Perry, and the two of them conspired to bill the government for work that Grant did not actually perform. Grant is alleged to have received nearly $400,000 for work he did not do, and, in return, kicked back approximately $125,000 to Perry as part of the criminal scheme. If convicted, each defendant faces a maximum statutory sentence of 20 years in prison for the charged offenses of Money, Property, and Honest Services Wire Fraud, and Conspiracy to Commit Money, Property, and Honest Services Wire Fraud. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided for informational purposes. If convicted, the defendants’ sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. This case is being investigated by the U.S. Department of Agriculture Office of Inspector General, Sensitive Investigations Office (SIO). It is being prosecuted by Assistant U.S. Attorneys Brian P. Kelly and Joshua Rothstein of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by the U.S. Attorney’s Office for the Northern District of Ohio. 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: Pemiscot County Man Sentenced to 140 Months in Prison for Selling Methamphetamine

component: USAO - Missouri, Eastern

body_text: CAPE GIRARDEAU – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a Pemiscot County, Missouri man who sold methamphetamine three times to undercover drug task force officers to 140 months in prison. Davario D. Taylor, 34, of Caruthersville, pleaded guilty in U.S. District Court in Cape Girardeau in October to two counts of distribution of methamphetamine and one count of aiding and abetting the distribution of methamphetamine. He admitted selling a total of about 341 grams of meth to a Southeast Missouri Drug Task Force Officer working with a confidential informant. On March 10, 2023, he sold about three ounces of meth for $250 an ounce. On March 22, 2023, he sold another three ounces. Five days later, he sold six ounces for $1,500. Taylor has two prior felony drug sale convictions and a prior felony conviction for unlawful possession of a firearm, a sentencing memo says. The Southeast Missouri Drug Task Force and the Missouri State Highway Patrol investigated the case. Assistant U.S. Attorney Julie Hunter prosecuted the case.


title: Mexican man heads to prison for organizing scheme to smuggle 150 kilos of cocaine

body_text: BROWNSVILLE, Texas – A 37-year-old man from Valle Hermoso, Tamaulipas, Mexico, has been sentenced following his conviction for conspiracy to possess with intent to distribute multi-kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani. Jesus Alfonso Leos-Orozco pleaded guilty May 1, 2023. U.S. District Judge Fernando Rodriguez Jr. has now ordered Leos-Orozco to serve 140 months in federal prison to be immediately followed by three years of supervised release. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted the necessity to consider the seriousness of the offense, nature of the criminal activity and Leos-Orozco’s extensive involvement in the scheme. Leos-Orozco was a manager/supervisor of the narcotics smuggling conspiracy responsible for distributing approximately 150 kilograms of cocaine. From approximately 2019 to 2021, law enforcement conducted multiple arrests of individuals possessing multi-kilograms of cocaine in the Brownsville/Edinburg area. Authorities connected the narcotics seizures to attempts to enter the United States, gas station transfers, highway interdictions and bulk currencies destined for Mexico. The bulk currencies are proceeds of the conspiracy that are both connected to a truck transporting company and Leos-Orozco. The investigation revealed Leos-Orozco would smuggle 15 to 20 kilograms of cocaine weekly and charge $500 per kilogram imported utilizing his commercial tractor trailers company “Leos Auto Transportes De Carga.” Leos-Orozco would then recruit drivers and pay them $250 per kilogram smuggled into the United States. Further investigation indicated at least 20 border crossing incidents using a trailer are directly linked to Leos-Orozco. Surveillance video also identified Leos-Orozco as one of the individuals responsible for the transfer of a narcotics shipment to another driver. Leos-Orozco will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Paul Marian and Luis Salazar prosecuted the case.


title: Justice Department Files Lawsuit Against the State of Oklahoma Regarding Unconstitutional State Immigration Law

component: Civil Division

body_text: The Justice Department today filed suit against the State of Oklahoma to challenge House Bill 4156 (HB 4156) under the U.S. Constitution’s Supremacy Clause and Foreign Commerce Clause. The Constitution assigns the federal government the authority to regulate immigration and manage our international borders. Pursuant to this authority, Congress has established a comprehensive immigration framework governing noncitizens’ entry, reentry and presence. Because HB 4156 is preempted by federal law and violates the U.S. Constitution, the Justice Department seeks a declaration that HB 4156 is invalid and an order enjoining the state from enforcing the law. “Oklahoma cannot disregard the U.S. Constitution and settled Supreme Court precedent,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We have brought this action to ensure that Oklahoma adheres to the Constitution and the framework adopted by Congress for regulation of immigration.” As outlined in the complaint, Oklahoma’s law would create new state crimes to regulate noncitizens’ entry and reentry into and presence in, the United States, with charges ranging from a misdemeanor to a felony. In particular, HB 4156 requires noncitizens convicted of violating its provisions to leave the State, effectively granting Oklahoma the independent authority to exile noncitizens from the State and permitting a patchwork of state immigration schemes. The Supreme Court recognized in Arizona v. United States , 567 U.S. 387 (2012), however, that the authority to admit noncitizens and to determine their status in the United States is a core responsibility of the federal government. HB 4156 impedes the federal government’s comprehensive immigration scheme and interferes with its conduct of foreign relations. The suit was filed on behalf of the United States, including the Justice Department, Department of Homeland Security and Department of State. Complaint


title: Pulaski County Man Sentenced for Methamphetamine Trafficking

component: USAO - Kentucky, Eastern

body_text: LONDON, Ky. – A Bronston, Ky., man, France Allen Helton, 42, was sentenced on Tuesday, by U.S. District Judge Robert Wier, to 250 months in prison, for possession with intent to distribute 50 grams or more of methamphetamine. According to his plea agreement, on March 29, 2023, law enforcement conducted a traffic stop on a vehicle occupied by Helton and seized 55.9 grams of a methamphetamine mixture packaged in two separate baggies, along with $2,529 in cash. Helton admitted that he intended to distribute the methamphetamine to others. Helton has a prior conviction for trafficking in methamphetamine, from the Pulaski Circuit Court in 2019. Under federal law, Helton must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI Louisville Field Office, and Sheriff Bobby Jones, Pulaski County Sheriff’s Office, jointly announced the sentence. The investigation was conducted by the FBI and Pulaski County Sheriff’s Office. Assistant U.S. Attorney Pearce Nesbitt prosecuted the case on behalf of the United States. — END —


title: Companies that Own and Operate Oil Tanker Plead Guilty to Environmental Crimes

component: Energy and Natural Resources Division

body_text: Two related companies that operated the motor tanker PS Dream – Prive Overseas Marine LLC and Prive Shipping Denizcilik Ticaret – pleaded guilty today to conspiracy, knowingly violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice related to the falsification of the tanker’s Oil Record Book, which is a required log. Exhibit 1 in U.S. v. Prive Overseas Marine, LLC and Prive Shipping Denizcilik Ticaret, A.S., case number 24-cr-00074. Credit: USCG. The guilty pleas were entered in federal court in New Orleans before Chief U.S. District Court Judge Nannette Jolivette Brown. If the court approves the plea agreement, the companies will be fined a total of $2 million and serve four years of probation. Separate charges have been filed against Captain Abdurrahman Korkmaz, a Turkish national who was the ship’s master. The criminal case stems from the report of a crew member who, on Jan. 11, 2023, contacted the Coast Guard in New Orleans, which was the next port-of-call, and shared a video showing oil being pumped overboard and trailing behind the tanker. When the ship arrived in New Orleans two weeks later, this individual and another crew member blew the whistle and provided evidence to the Coast Guard. Video and photographic images were filed in court today by the prosecutors. “Deliberate pollution from ships, intentional falsification of records and obstruction of justice are serious environmental crimes that will be vigorously prosecuted to the full extent of the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Maritime laws regulating pollution from ships are intended to ensure that ocean waters are not used as a dumping ground.” “This case involved deceit and willful pollution, and this prosecution is intended to hold both the corporations and individuals accountable,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Criminal prosecutions are needed to deter deliberate efforts to circumvent our Nation’s anti-pollution laws. Importantly, $500,000 of the criminal penalty will go toward environmental protection of the marine environment in our area.” “Today's outcome sends a powerful message: those who falsify logs and take deliberate actions to conceal pollution will face significant consequences,” said Captain Greg Callaghan, Deputy Commander of U.S. Coast Guard (USCG) Sector New Orleans. “The Coast Guard and our partners remain steadfast in our shared commitment to safeguarding our waters and holding accountable those who threaten our marine ecosystems. We encourage individuals to continue reporting any suspicious activities, as each report plays a crucial role in protecting the marine environment." “It is long past time for the maritime industry to meet its obligations under international law and stop illegal pollution from ships,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Illegal ocean dumping and falsifying records to conceal those violations will not be tolerated by EPA and our federal law enforcement partners.” The falsified logs, presented to the Coast Guard during its inspection, were intended to conceal the fact that the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with MARPOL Annex I, an international treaty regulating oil pollution from ships. According to court documents, the ship’s master ordered crew members to pump overboard from the residual oil tank, which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew. Senior managers at Prive Shipping were aware that the oil-contaminated waste remained in the tank and were informed by the ship’s master that it had been dumped overboard. The proposed $2 million criminal penalty includes $500,000 in organizational community service payments that will fund various maritime environmental projects in the Eastern District of Louisiana. Those projects will be managed by the congressionally established National Fish & Wildlife Foundation. The court also has authority to award up to $500,000, half of the APPS portion of the fine, to the whistleblowers that provided evidence leading to conviction. Prive Overseas Marine is based in Dubai and Prive Shipping is based in Turkey. The corporations were charged with four felonies: conspiracy, an APPS violation and two counts of obstruction of justice. Captain Korkmaz was charged with two counts: a violation of APPS and obstructing the Coast Guard’s inspection of the ship. The Coast Guard Investigative Service and the EPA Criminal Investigations Division investigated the case with assistance from USCG Sector New Orleans. Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Ryan Connors of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorneys G. Dall Kammer and Christine M. Calogero for the Eastern District of Louisiana are prosecuting the case. Exhibits in U.S. v. Prive Overseas et al. 24-cr-00074.pdf


title: Laurel County Man Sentenced for Conspiracy to Defraud Natural Gas Companies

body_text: LONDON, Ky. – A London man, Mark Edward Holbook, 72, was sentenced on Tuesday, by U.S. District Judge Claria Horn Boom, to 12 months and one day in prison, along with two months of home detention, for conspiracy to rig natural gas meters allowing him to steal thousands of dollars from two Kentucky gas companies. According to his plea agreement, Mark Holbrook and his son, Marshall Holbrook, worked in the business of sourcing natural gas throughout the past 20 years, drilling wells and acquiring gas rights. The Holbrooks often used Delta Gas or Somerset Gas Services (SGS) to transport their gas or for direct sales. In 2016, after the market price of natural gas had fallen substantially, the Holbrooks compensated by manipulating meters that SGS and Delta used on their pipelines to measure how much natural gas the Holbrooks were providing. This scheme allowed the Holbrooks to boost their profit substantially, while financially harming both SGS and Delta. Mark Holbrook admitted that the financial loss due to this conspiracy was greater than $250,000 and the Court entered a forfeiture order against him, in the amount of $332,952. The Court also ordered Mark Holbrook to pay restitution of $1,207,016 to SGS, and $172,964 to Delta. Earlier this month, Judge Boom sentenced Marshall Holbrook for his role in the same conspiracy. Marshall Holbrook was sentenced to four months imprisonment and six months of home detention, followed by 18 months of supervised release. He was ordered to pay Delta $239,642 in restitution. Upon his release from prison, Mark Holbrook will be under the supervision of the U.S. Probation Office two and a half years. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Michael E. Stansbury, Special Agent in Charge, FBI Louisville Field Office, jointly announced the sentence. The investigation was conducted by the FBI. Assistant U.S. Attorney Will Moynahan prosecuted the case on behalf of the United States. — END —


title: Food Suppliers to Pay $395,000 to Resolve Claims of Mislabeled Inspection Dates on Frozen Beef Patties Sold to Federal Prisons

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that four related food supply companies will pay $395,000 to resolve claims that frozen ground beef patties they supplied to the Federal Bureau of Prisons (the BOP) were misleadingly labeled. The United States contends that, in early 2020, the companies — Prime Food Sales, Inc. of Port Washington, N.Y., Prime Food Sales LLC of Dresher, Pennsylvania, JTP Sales, LLC of Atlanta, Georgia, and JW Sales & Distribution, LLC of Dresher, Pennsylvania — sold 190,000 pounds of the patties to the BOP for distribution to federal prisons nationwide. Though the supply contract with the BOP required that the patties be no more than 6 months old when delivered, re-inspection labels on the product packaging created the false appearance that the patties were younger than six months old at delivery when they were actually older. This non-compliance with the contract’s terms resulted in the companies making false payment claims to the BOP. The U.S. Attorney’s Office coordinated its investigation with the U.S. Department of Justice’s Office of the Inspector General (DOJ-OIG), which began investigating after the U.S. Department of Agriculture’s Food Safety and Inspection Service detained some of the patties in February 2020. The government’s investigation concluded that, although product labeling misrepresented inspection dates and the patties’ age, product quality and safety were unaffected. “When supplying food to federal agencies, federal contractors are in a position of public trust and must adhere to contract specifications, especially those like product-age requirements that may impact food safety or quality,” said U.S. Attorney Romero. “Today’s resolution should send a message to firms supplying food to the Federal Bureau of Prisons and other federal agencies that we will hold these contractors responsible for violations of law, including when they present claims for payment while disregarding contract terms. We will continue to work with law enforcement partners to identify federal contractors and subcontractors who risk the health or safety of consumers and to hold them accountable.” “Contractors that are selected and paid by the government to supply food to inmates are expected to comply with contractual and other standards. When they provide mislabeled products, as the companies allegedly did here, the government is deprived of what it bargained for and the health and safety of inmates is potentially placed at risk,” said Andrew B. Hartwell, Special Agent in Charge of DOJ OIG’s Fraud Detection Office. “The DOJ OIG is committed to rooting out this type of contract fraud.” The settlement resolves civil claims under the False Claims Act that are allegations only. There has been no determination of liability, and the companies did not admit liability. They generally cooperated with the U.S. Attorney’s Office’s investigation. The matter was handled in the U.S. Attorney’s Office by Assistant U.S. Attorney Gerald B. Sullivan and Auditor Dawn Wiggins, with support from the Department of Justice Office of Inspector General and the U.S. Department of Agriculture Food Safety and Inspection Service. The Department of Justice’s investigation was part of its enforcement focus on combatting federal procurement fraud. The False Claims Act is one of the most powerful tools in this enforcement effort. Although there was no whistleblower in this matter, the False Claims Act includes whistleblower provisions allowing a private party to file an action on behalf of the United States and to receive a portion of any recovery. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement in connection with Federal Bureau of Prison contracts or against other Department of Justice components can be reported at https://oig.justice.gov/hotline .


title: Man Sentenced for Laundering Over $4.5M Obtained from Business Email Compromise and Romance Fraud Schemes

component: Federal Bureau of Investigation (FBI)

body_text: ATLANTA - Malachi Mullings has been sentenced to 10 years in federal prison for laundering more than $4.5 million derived from romance fraud scams and business email compromise schemes, including a criminal conspiracy that defrauded a health care benefit program. “Motivated by greed, Mullings and his co-conspirators brazenly stole millions of dollars from companies and elderly victims located throughout the United States,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our office’s commitment to collaborate closely with our law enforcement partners to bring to justice those who perpetrate these frauds, including at the expense of elderly citizens especially vulnerable to these schemes.” “Malachi Mullings used various schemes to fraudulently obtain money to feed his greed, and in some cases took advantage of the elderly to do it,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents are skilled financial investigators who can unravel complex financial transactions and money laundering schemes criminals use to hide their ill-gotten money. We will also continue pursuing criminals who commit financial fraud on government programs, financial system, and the elderly.” According to U.S. Attorney Buchanan, the charges and other information presented in court: From at least 2019 through July 2021, Mullings opened 20 bank accounts in the name of a sham company, The Mullings Group LLC. Mullings used those accounts to launder millions of dollars of fraud proceeds generated by business email compromise (BEC) schemes targeting, among others, a health care benefit program and private companies, and romance fraud scams targeting numerous individual victims, several of whom were elderly. Together with his co-conspirators, Mullings engaged in financial transactions designed to conceal the fraud proceeds and used some of the funds to purchase luxury items, such as expensive cars and jewelry. In one instance, Mullings laundered $310,000 that was fraudulently diverted from a state Medicaid program and had been intended as reimbursement for a hospital. In another instance, Mullings obtained $260,000 from a romance scam perpetrated on an elderly victim, which Mullings used to purchase a Ferrari. Malachi Mullings, 31, of Sandy Springs, Georgia, was sentenced by U.S. District Judge Michael L. Brown to 10 years in prison to be followed by three years of supervised release. He was also ordered to pay restitution to victims. He pleaded guilty to one count of conspiracy to commit money laundering and seven counts of various money laundering offenses on January 17, 2023. The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert . This case was investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and the U.S. Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Kelly K. Connors prosecuted the case, with Trial Attorneys Gary Winters and Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section. For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Two Minneapolis-Based Business Consultants Charged in $1 Million Pandemic Aid Fraud Scheme

component: USAO - Minnesota

body_text: MINNEAPOLIS – Two Minneapolis-based business consultants have been indicted for defrauding COVID-19 pandemic aid programs of more than $1 million while serving as business advisors to Hennepin County, announced U.S. Attorney Andrew M. Luger. “During the COVID-19 pandemic, at a time when small businesses were suffering deep economic losses, local and federal government agencies stepped in to provide support. These defendants saw this as an opportunity to defraud the aid programs by submitting phony invoices and applications for benefits,” said U.S. Attorney Andrew Luger. “I commend the skilled investigators and prosecutors who work diligently to hold accountable those who defraud the aid programs designed to support our small business community.” According to court documents, beginning in 2020, through the present, Tezzaree El-Amin Champion, 27, and Marcus Alexander Hamilton, 27, devised and carried out a fraud scheme to obtain funds from a variety of federal, state, local, and private COVID-19 relief programs. Through their company, Futuristic Management Group LLC, a Minnesota-based small business consulting firm, the defendants submitted fraudulent applications for PPP loans, pandemic relief, and other funds on behalf of their small business clients and their own entities. As part of the scheme, Champion, who was the founder and chief executive officer of Futuristic Management, and Hamilton, who was the chief operating officer, caused the consulting firm to enter into contracts with Hennepin County under a COVID-19 relief program called “Elevate Business,” also known as “Elevate Hennepin.” Elevate Business is a small business assistance program designed to provide local small businesses with no-cost marketing and website assistance. Under the contracts, Hennepin County agreed to pay Futuristic Management to provide technical assistance services to client businesses that were located in Hennepin County at no cost to the clients. Instead of abiding by the terms of the contracts, Champion and Hamilton billed Hennepin County for work not actually performed, and for work for which Champion and Hamilton were being paid by their clients, when the contracts required that Futuristic Management’s work be provided at no cost. As part of the scheme, Champion and Hamilton also submitted fraudulent PPP and EIDL loan applications and Hennepin County Small Business Relief grant applications on behalf of their clients and their own entities. When clients received the loans and grants, Champion and Hamilton transferred and misappropriated a portion of the funds for themselves. Also as part of the scheme, Champion intimidated clients by showing them a firearm and telling them he always carried a firearm. On April 26, 2023, law enforcement executed a search warrant at Champion’s residence in Andover. Inside the home, agents found $126,000 in U.S. currency in a locked safe, and a Ruger LCR .357 revolver. Because Champion has a prior felony conviction, he is prohibited from possessing firearms or ammunition at any time. In total, Champion and Hamilton’s fraud resulted in losses of more than $1 million in COVID-19 pandemic aid and involved more than 100 fraudulent invoices and grant and loan applications. Champion and Hamilton were charged with three counts of mail fraud, three counts of wire fraud, one count of theft of government money, and one count of engaging in a monetary transaction in property derived from specified unlawful activity. Champion was also charged with one count of possessing a firearm as a felon. The defendants made their initial appearances earlier today in U.S. District Court before Magistrate Judge Tony N. Leung. This case is the result of an investigation conducted by IRS-Criminal Investigations, the U.S. Postal Inspection Service, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis Police Department’s Special Crimes Investigations Division. Assistant U.S. Attorneys Matthew D. Forbes and Joseph H. Thompson are prosecuting the case. The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Pittsburgh Resident Sentenced to 24 Months in Prison for Computer Fraud

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 24 months imprisonment and three years supervised release on his conviction of computer fraud, United States Attorney Eric G. Olshan announced today. United States District Judge Cathy Bissoon imposed the sentence on Kevin N. Ukaegbu, age 31, of Pittsburgh, PA. According to information presented to the court, on December 5, 2022, Ukaegbu, formerly a graduate nurse at Allegheny General Hospital, criminally used the hospital credentials of a Highmark resident physician and attempted to modify prescription medications for two patients, putting one of the patients at risk of serious bodily harm. In neither case was the medicine administered to the patients. Due to the seriousness of the crime, Judge Bissoon imposed the maximum sentence under the guideline range. Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government. United States Attorney Olshan commended the Homeland Security Investigations of the United States Department of Homeland Security, with the assistance of Highmark Health Police, for the investigation leading to the successful prosecution of Ukaegbu.


title: Joplin Man Sentenced for $300,000 Fraud Schemes

component: USAO - Missouri, Western

body_text: SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for two fraud schemes, totaling nearly $300,000, including fraudulent loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and a so-called “transaction reversal” bank scheme. Deaviyon Rockett, 22, was sentenced by U.S. District Judge Roseann A. Ketchmark to five years and three months in federal prison without parole. The court also ordered Rockett to pay $260,000 in restitution. On April 5, 2023, Rockett pleaded guilty to two counts of wire fraud. Rockett admitted that he submitted at least $119,262 in fraudulent Paycheck Protection Program loan applications. Rockett also admitted that he engaged in a $176,007 “transaction reversal” fraud scheme. PPP Fraud Scheme The purpose of the CARES Act was to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration to provide Paycheck Protection Program (PPP) loans to small businesses to retain workers and maintain payroll, and make mortgage interest payments, lease payments, and utility payments. Under the PPP, both the principal and interest on those loans were eligible for forgiveness. Rockett admitted that, from March 26 to May 17, 2021, he submitted six PPP loan applications using the names of other individuals that falsely claimed a business, its employees, and/or the amount of the salaries to be covered through these loans existed. In reality, those representations were entirely false. Rockett then accessed the bank accounts of these individuals, withdrawing much of the money that had been fraudulently received, and used those funds for expenses that were unrelated to and prohibited to be used under the PPP loan program. “Transaction Reversal” Fraud Scheme Law enforcement in Neosho and Jasper Counties was contacted in August 2022 by numerous individuals who reported that Rockett had contacted them through various media platforms. Rockett told these individuals that he was part of a business that involved “transaction reversal,” and that if they would give him their bank account information, he would make himself and the victim money by conducting these transactions on their bank account. Rockett accessed the victims’ bank accounts in order to deposit fraudulent checks written on the bank accounts of Coffeyville Community College and/or Santander Consumer USA. Once the checks were deposited, the bank would credit the account on a preliminary basis. However, those checks were not authorized by either entity and were not honored by either entity. Rockett immediately withdrew either the amount of the checks or, in some cases, completely emptied the bank account of all funds before the bank reversed the deposits. At least $176,007 in total was fraudulently withdrawn from the bank accounts of fraud victims. This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Joplin, Mo., Police Department.


title: El Paso Man Arrested for Firearm Trafficking, Dealing Without a License

body_text: EL PASO, Texas – An El Paso man was arrested in El Paso for alleged crimes related to trafficking and selling firearms without a license. According to court documents, Jesse Garay, 26, allegedly purchased numerous firearms between Sept. 7, 2022 and March 24, 2023, answering on each Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 that he was “the actual transferee/buyer of the firearm(s) listed on this form.” Private messages obtained in a search warrant allegedly revealed that Garay sold the firearms to other individuals, including a minor. Additionally, at least three of the firearms purchased by Garay are alleged to have been recovered at either crime scenes or in Mexico. Garay is charged with one count of trafficking in firearms, one count of dealing firearms without a license, and two counts of false statement during a firearm acquisition. If convicted, he faces a maximum penalty of 15 years in prison for the trafficking charge, five years for the dealing without a license charge, and 10 years for each false statement charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jeffrey C. Boshek II for the ATF Dallas Field Division made the announcement. ATF is investigating the case. Assistant U.S. Attorney Mathew Engelbaum is prosecuting the case. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###